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<SEC-DOCUMENT>0001062993-11-000805.txt : 20110303
<SEC-HEADER>0001062993-11-000805.hdr.sgml : 20110303
<ACCEPTANCE-DATETIME>20110302201619
ACCESSION NUMBER:		0001062993-11-000805
CONFORMED SUBMISSION TYPE:	6-K
PUBLIC DOCUMENT COUNT:		4
CONFORMED PERIOD OF REPORT:	20110301
FILED AS OF DATE:		20110303
DATE AS OF CHANGE:		20110302

FILER:

	COMPANY DATA:	
		COMPANY CONFORMED NAME:			SILVER STANDARD RESOURCES INC
		CENTRAL INDEX KEY:			0000921638
		STANDARD INDUSTRIAL CLASSIFICATION:	MINERAL ROYALTY TRADERS [6795]
		IRS NUMBER:				000000000
		STATE OF INCORPORATION:			A1
		FISCAL YEAR END:			1231

	FILING VALUES:
		FORM TYPE:		6-K
		SEC ACT:		1934 Act
		SEC FILE NUMBER:	000-26424
		FILM NUMBER:		11658109

	BUSINESS ADDRESS:	
		STREET 1:		999 W HASTINGS ST
		STREET 2:		SUITE 1400
		CITY:			VANCOUVER BC CANADA
		STATE:			A1
		ZIP:			V6C 2W2
		BUSINESS PHONE:		604-689-3846

	MAIL ADDRESS:	
		STREET 1:		999 W HASTINGS ST
		STREET 2:		SUITE 1400
		CITY:			VANCOUVER BC CANADA
		STATE:			A1
		ZIP:			V6C 2W2
</SEC-HEADER>
<DOCUMENT>
<TYPE>6-K
<SEQUENCE>1
<FILENAME>form6k.htm
<DESCRIPTION>FORM 6-K
<TEXT>
<HTML>
<HEAD>
<TITLE>Silver Standard Resources Inc.: Form 6-K - filed by newsfilecorp.com</TITLE>
</HEAD>
<BODY bgcolor="#FFFFFF" style="font-size: 10pt;">
<hr noshade align="center" width="100%" size=3 color="black">

<p align="center"><font size="5"><strong>UNITED STATES<br>
  SECURITIES AND EXCHANGE COMMISSION</strong></font><br>
  Washington, D.C. 20549</p>

<p align="center"><b><font size="5">FORM 6-K</font></b></p>
<p align="center"><b>REPORT OF FOREIGN PRIVATE ISSUER PURSUANT TO RULE 13a-16
  OR 15d-16 <br>
  UNDER THE SECURITIES EXCHANGE ACT OF 1934</b></p>
<p align="center">For <b>March, 1, 2011</b></p>

<p align="center">Commission File Number: <b>000-26424</b></p>

<p align="center"><b><u><font size="5">SILVER STANDARD RESOURCES INC.</font></u></b><br>
  (Translation of registrant's name into English) </p>

<p align="center"><b>1400 - 999 West Hastings Street<br>
  Vancouver, British Columbia<br>
  <u>Canada V6C 2W2</u></b><br>
  (Address of principal executive offices) </p>

<p align="center">Indicate by check mark whether the registrant files or will
  file annual reports under cover Form 20-F or Form 40-F.</p>
<p align="center"> [ x ] Form 20-F&nbsp;&nbsp; [<font style="font-size:1px;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font>]
  Form 40-F</p>
<p align="center">Indicate by check mark if the registrant is submitting the Form
  6-K in paper as permitted by Regulation S-T Rule 101(b)(1): [<font style="font-size:1px;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font>]</p>
<p align="center"> Indicate by check mark if the registrant is submitting the
  Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(7): [<font style="font-size:1px;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font>]</p>
<p align="center">Indicate by check mark whether by furnishing the information
  contained in this Form, the registrant is also thereby furnishing the information
  to the Commission pursuant to Rule 12g3-2(b) under the Securities Exchange Act
  of 1934.</p>
<p align="center">Yes [<font style="font-size:1px;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font>]
  &nbsp; No [ x ]</p>
<p align="center"> If &quot;Yes&quot; is marked, indicate below the file number
  assigned to the registrant in connection with Rule 12g3-2(b): 82- _________
</p>

<HR noshade align="center" width="100%" size=5 color="black" style="page-break-after:always;">
<p align="center"><img src="ssrlogo.gif" width="109" height="44"></p>
<p align="center"><b><u>SUBMITTED HEREWITH</u></b></p>

<p align="left"><u>Exhibits</u></p>

<table style="font-size: 10pt;" width="100%" border="0" cellspacing="0" cellpadding="0">
  <tr>
    <td width="5%" valign="top" bgcolor="#EEEEEE">&nbsp;</td>
    <td width="5%" valign="top" bgcolor="#EEEEEE"><a href="exhibit99-1.htm">99.1</a></td>
    <td bgcolor="#EEEEEE"><a href="exhibit99-1.htm">Consolidated Financial Statements
      December 31, 2010, 2009 and 2008</a></td>
  </tr>
  <tr>
    <td valign="top">&nbsp;</td>
    <td valign="top">&nbsp;</td>
    <td>&nbsp;</td>
  </tr>
  <tr>
    <td valign="top" bgcolor="#EEEEEE">&nbsp;</td>
    <td valign="top" bgcolor="#EEEEEE"><a href="exhibit99-2.htm">99.2</a></td>
    <td bgcolor="#EEEEEE"><a href="exhibit99-2.htm">Management Discussion and
      Analysis </a></td>
  </tr>
</table>
<p>&nbsp;</p>

<hr noshade align="center" width="100%" size=5 color="black" style="page-break-after:always;">

<p align="center"><strong><u>SIGNATURES</u></strong></p>

<p align="justify">Pursuant to the requirements of the Securities Exchange Act
  of 1934, the registrant has duly caused this report to be signed on its behalf
  by the undersigned, thereunto duly authorized.</p>

<table style="font-size: 10pt;" width="100%" border="0" cellspacing="0" cellpadding="0">
	<tr>
		<td width="50%" valign="top">&nbsp;</td>

    <td colspan="2" valign="top"><b>Silver Standard Resources Inc.</b></td>
	</tr>
	<tr>
		<td valign="top">&nbsp;</td>
		<td colspan="2" valign="top">(Registrant)</td>
	</tr>
	<tr>
		<td valign="top">&nbsp;</td>
		<td valign="top">&nbsp;</td>
		<td>&nbsp;</td>
	</tr>
	<tr>

    <td valign="top">Date: March 1, 2011</td>
		<td valign="top">By:</td>

    <td><I>/s/ Guy Davis</I></td>
  </tr>
	<tr>
		<td valign="top">&nbsp;</td>
		<td valign="top">&nbsp;</td>
		<td><hr noshade align="center" width="100%" size=1 color="black"> </td>
	</tr>
	<tr>
		<td valign="top">&nbsp;</td>
		<td valign="top">&nbsp;</td>

    <td>Guy Davis</td>
  </tr>
	<tr>
		<td width="50%" valign="top">&nbsp;</td>
		<td width="5%" valign="top">Title:</td>

    <td>Corporate Counsel and Assistant Corporate Secretary</td>
  </tr>
</table>

<p>&nbsp; </p>

<hr noshade align="center" width="100%" size=5 color="Black"></BODY>
</HTML>
</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-99.1
<SEQUENCE>2
<FILENAME>exhibit99-1.htm
<DESCRIPTION>CONSOLIDATED FINANCIAL STATEMENTS DECEMBER 31, 2010, 2009 AND 2008
<TEXT>
<HTML>
<HEAD>
   <TITLE>Silver Standard Resources Inc.: Exhibit 99.1 - Filed by newsfilecorp.com</TITLE>
   <META name="HandheldFriendly" content="true">
</HEAD>

<BODY style="font-size:10pt;">

<HR noshade align="center" width=100% size=3 color="black">
<!--$$/page=--><A name=page_1></A>
<P align=justify><B>Silver Standard Resources Inc.</B></P>
<P align=justify>Consolidated Financial Statements<BR><B>December 31, 2010, 2009
and 2008<BR></B>(expressed in thousands of United States dollars)</P>
<HR style="PAGE-BREAK-AFTER: always" align=center color=black SIZE=5
width="100%" noShade>
<!--$$/page=--><A name=page_2></A>
<P align=justify><B>Management&#146;s Responsibility for the Financial
Statements</B></P>
<P align=justify>The preparation and presentation of the accompanying
consolidated financial statements, Management Discussion and Analysis
(&#147;MD&amp;A&#148;) and all financial information in the Annual Report are the
responsibility of management and have been approved by the Board of
Directors.</P>
<P align=justify>The consolidated financial statements have been prepared in
accordance with Canadian generally accepted accounting principles. Financial
statements, by nature, are not precise since they include certain amounts based
upon estimates and judgments. When alternative methods exist, management has
chosen those it deems to be the most appropriate in the circumstances. The
financial information presented elsewhere in the Annual Report is consistent
with that in the consolidated financial statements.</P>
<P align=justify>Management, under the supervision of and the participation of
the President and Chief Financial Officer, have a process in place to evaluate
disclosure controls and procedures and internal control over financial reporting
as required by Canadian and U.S. securities regulations. We, as President and
Chief Financial Officer, will certify our annual filings with the CSA and SEC as
required in Canada by National Instrument 52-109 and in the United States as
required by the Sarbanes-Oxley Act of 2002.</P>
<P align=justify>The Board of Directors is responsible for ensuring that
management fulfills its responsibilities for financial reporting and is
ultimately responsible for reviewing and approving the consolidated financial
statements. The Board carries out this responsibility principally through its
Audit Committee which is independent from management.</P>
<P align=justify>The Audit Committee is appointed by the Board of Directors and
reviews the consolidated financial statements and MD&amp;A; considers the report
of the external auditors; assesses the adequacy of our internal controls,
including management&#146;s assessment described below; examines the fees and
expenses for audit services; and recommends to the Board the independent
auditors for appointment by the shareholders. The independent auditors have full
and free access to the Audit Committee and meet with it to discuss their audit
work, our internal control over financial reporting and financial reporting
matters. The Audit Committee reports its findings to the Board for consideration
when approving the consolidated financial statements for issuance to the
shareholders and management&#146;s assessment of the internal control over financial
reporting.</P>
<P align=justify><B>Management&#146;s Report on Internal Control over Financial
Reporting</B></P>
<P align=justify>Management is responsible for establishing and maintaining
adequate internal control over financial reporting.</P>
<P align=justify>Management has assessed the effectiveness of our internal
control over financial reporting as of December 31, 2010 using criteria
established in Internal Control &#150; Integrated Framework issued by the Committee
of Sponsoring Organizations of the Treadway Commission. Based on this
evaluation, management concluded that our internal control over financial
reporting was effective as of December 31, 2010.</P>
<P align=justify>PricewaterhouseCoopers LLP, our auditor, has audited the
effectiveness of our internal control over financial reporting as of December
31, 2010, as stated in their report which appears herein.</P>
<TABLE
style="BORDER-COLOR: black; BORDER-COLLAPSE: collapse; FONT-SIZE: 10pt; "
border=0 cellSpacing=0 cellPadding=0 width="100%">

  <TR vAlign=top>
    <TD align=left><I>&#147;John Smith&#148;</I> </TD>
    <TD width="50%" align=left><I>&#147;Tom S.Q. Yip&#148;</I> </TD></TR>
  <TR vAlign=top>
    <TD align=left>John Smith </TD>
    <TD width="50%" align=left>Tom S.Q. Yip </TD></TR>
  <TR vAlign=top>
    <TD align=left>President </TD>
    <TD width="50%" align=left>Chief Financial Officer </TD></TR>
  <TR>
    <TD>&nbsp; </TD>
    <TD width="50%">&nbsp; </TD></TR>
  <TR vAlign=top>
    <TD align=left>February 28, 2011 </TD>
    <TD width="50%" align=left>&nbsp; </TD></TR></TABLE><BR>
<HR style="PAGE-BREAK-AFTER: always" align=center color=black SIZE=5
width="100%" noShade>
<!--$$/page=--><A name=page_3></A>
<P align=justify><B><I>Independent Auditor&#146;s Report</I></B></P>
<P align=justify><B>To the Shareholders of Silver Standard Resources
Inc.</B></P>
<P align=justify>We have completed integrated audits of Silver Standard
Resources Inc.&#146;s (&#147; the Company&#148;) December 31, 2010, 2009 and 2008 consolidated
financial statements and an audit of the effectiveness of the Company&#146;s internal
control over financial reporting as at December 31, 2010. Our opinions, based on
our audits, are presented below.</P>
<P align=justify><B>Report on the consolidated financial statements <BR></B>We
have audited the accompanying consolidated financial statements of Silver
Standard Resources Inc., which comprise the consolidated balance sheets as at
December 31, 2010 and December 31, 2009, and the consolidated statements of
earnings (loss), comprehensive income (loss), shareholders&#146; equity and cash
flows for each of the three years in the period ended December 31, 2010, and the
related notes including a summary of significant accounting policies.</P>
<P align=justify><B>Management&#146;s responsibility for the consolidated financial
statements<BR></B>Management is responsible for the preparation and fair
presentation of these consolidated financial statements in accordance with
Canadian generally accepted accounting principles and for effective internal
control over financial reporting to enable the preparation of consolidated
financial statements that are free from material misstatement, whether due to
fraud or error.</P>
<P align=justify><B>Auditor&#146;s responsibility<BR></B>Our responsibility is to
express an opinion on these consolidated financial statements based on our
audits. We conducted our audits in accordance with Canadian generally accepted
auditing standards and the standards of the Public Company Accounting Oversight
Board (United States). Those standards require that we plan and perform an audit
to obtain reasonable assurance about whether the consolidated financial
statements are free from material misstatement. Canadian generally accepted
auditing standards require that we comply with ethical requirements.</P>
<P align=justify>An audit involves performing procedures to obtain audit
evidence, on a test basis, about the amounts and disclosures in the consolidated
financial statements. The procedures selected depend on the auditor&#146;s judgment,
including the assessment of the risks of material misstatement of the
consolidated financial statements, whether due to fraud or error. In making
those risk assessments, the auditor considers internal control relevant to the
Company&#146;s preparation and fair presentation of the consolidated financial
statements in order to design audit procedures that are appropriate in the
circumstances. An audit also includes evaluating the appropriateness of
accounting principles and policies used and the reasonableness of accounting
estimates made by management, as well as evaluating the overall presentation of
the consolidated financial statements.</P>
<P align=justify>We believe that the audit evidence we have obtained in our
audits is sufficient and appropriate to provide a basis for our audit
opinion.</P>
<P align=justify><B>Opinion<BR></B>In our opinion, the consolidated financial
statements present fairly, in all material respects, the financial position of
Silver Standard Resources Inc. as at December 31, 2010 and December 31, 2009 and
the results of its operations and cash flows for each of the three years in the
period ended December 31, 2010 in accordance with Canadian generally accepted
accounting principles.</P>
<hr style="PAGE-BREAK-AFTER: always" align=center color=black size=5
width="100%" noshade>
<!--$$/page=-->
<a name=page_4></a>
<P align=justify><B>Report on internal control over financial reporting</B><br>
  We have also audited Silver Standard Resources Inc.&#146;s internal
control over financial reporting as at December 31, 2010, based on criteria
established in Internal Control - Integrated Framework, issued by the Committee
of Sponsoring Organizations of the Treadway Commission (&#147;COSO&#148;). </P>
<P align=justify><B>Management&#146;s responsibility for internal control over
financial reporting<BR></B>The Company&#146;s management is responsible for
maintaining effective internal control over financial reporting and for its
assessment of the effectiveness of internal control over financial reporting,
included in Management&#146;s Report on Internal Controls over Financial
Reporting.</P>
<P align=justify><B>Auditor&#146;s responsibility<BR></B>Our responsibility is to
express an opinion on the Company&#146;s internal control over financial reporting
based on our audit. We conducted our audit of internal control over financial
reporting in accordance with the standards of the Public Company Accounting
Oversight Board (United States). Those standards require that we plan and
perform the audit to obtain reasonable assurance about whether effective
internal control over financial reporting was maintained in all material
respects.</P>
<P align=justify>An audit of internal control over financial reporting includes
obtaining an understanding of internal control over financial reporting,
assessing the risk that a material weakness exists, testing and evaluating the
design and operating effectiveness of internal control, based on the assessed
risk, and performing such other procedures as we consider necessary in the
circumstances.</P>
<P align=justify>We believe that our audit provides a reasonable basis for our
audit opinion on the Company&#146;s internal control over financial reporting.</P>
<P align=justify><B>Definition of internal control over financial
reporting<BR></B>A company&#146;s internal control over financial reporting is a
process designed to provide reasonable assurance regarding the reliability of
financial reporting and the preparation of financial statements for external
purposes in accordance with generally accepted accounting principles. A
company&#146;s internal control over financial reporting includes those policies and
procedures that (i) pertain to the maintenance of records that, in reasonable
detail, accurately and fairly reflect the transactions and dispositions of the
assets of the Company; (ii) provide reasonable assurance that transactions are
recorded as necessary to permit preparation of financial statements in
accordance with generally accepted accounting principles, and that receipts and
expenditures of the Company are being made only in accordance with
authorizations of management and directors of the Company; and (iii) provide
reasonable assurance regarding prevention or timely detection of unauthorized
acquisition, use, or disposition of the Company&#146;s assets that could have a
material effect on the financial statements. </P>
<P align=justify><B>Inherent limitations<BR></B>Because of its inherent
limitations, internal control over financial reporting may not prevent or detect
misstatements. Also, projections of any evaluation of effectiveness to future
periods are subject to the risk that controls may become inadequate because of
changes in conditions or that the degree of compliance with the policies or
procedures may deteriorate. </P>
<P align=justify><B>Opinion<BR></B>In our opinion, Silver Standard Resources
Inc. maintained, in all material respects, effective internal control over
financial reporting as at December 31, 2010 based on criteria established in
Internal Control &#151; Integrated Framework issued by COSO.</P>
<P align=justify><I>Signed &#147;PricewaterhouseCoopers LLP&#148;</I></P>
<P align=justify><B>Chartered Accountants<br>
</B>February 28, 2011 <BR>
Vancouver, Canada</P>
<HR style="PAGE-BREAK-AFTER: always" align=center color=black SIZE=5
width="100%" noShade>
<!--$$/page=--><A name=page_6></A><BR>
<TABLE
style="BORDER-COLOR: black; BORDER-COLLAPSE: collapse; FONT-SIZE: 10pt; "
border=0 cellSpacing=0 cellPadding=0 width="100%">

  <TR vAlign=top>
    <TD align=left><B>Silver Standard Resources Inc.</B> </TD></TR>
  <TR vAlign=top>
    <TD align=left>Consolidated Balance Sheets </TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>As at December 31,
      2010 and 2009 </TD></TR>
  <TR vAlign=top>
    <TD align=left>(expressed in thousands of United States dollars)
  </TD></TR></TABLE><BR>
<TABLE
style="BORDER-COLOR: black; BORDER-COLLAPSE: collapse; FONT-SIZE: 10pt; "
border=0 cellSpacing=0 cellPadding=0 width="100%">

  <TR vAlign=top>
    <TD align=left>&nbsp; </TD>
    <TD align=left>&nbsp;</TD>
    <TD align=center><B>Note</B> </TD>
    <TD align=left>&nbsp;</TD>
    <TD align=right><B>2010</B> </TD>
    <TD align=left>&nbsp;</TD>
    <TD align=left>&nbsp;</TD>
    <TD align=right><B>2009</B> </TD>
  <TD align=left>&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left>&nbsp; </TD>
    <TD align=left>&nbsp;</TD>
    <TD align=center>&nbsp;</TD>
    <TD
    align=left style="BORDER-BOTTOM: #000000 1px solid"><B></B></TD>
    <TD
      align=right style="BORDER-BOTTOM: #000000 1px solid"><STRONG>$</STRONG>&nbsp;</TD>
    <TD
    align=left style="BORDER-BOTTOM: #000000 1px solid">&nbsp;</TD>
    <TD
    align=left style="BORDER-BOTTOM: #000000 1px solid"><B></B></TD>
    <TD
      align=right style="BORDER-BOTTOM: #000000 1px solid"><STRONG>$</STRONG>&nbsp;</TD>
  <TD
    align=left style="BORDER-BOTTOM: #000000 1px solid">&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD bgColor=#e6efff align=left><B>Assets</B> </TD>
    <TD bgColor=#e6efff align=left>&nbsp;</TD>
    <TD bgColor=#e6efff align=center>&nbsp;</TD>
    <TD bgColor=#e6efff align=left>&nbsp;</TD>
    <TD bgColor=#e6efff align=left>&nbsp; </TD>
    <TD bgColor=#e6efff align=left>&nbsp;</TD>
    <TD bgColor=#e6efff align=left>&nbsp;</TD>
    <TD bgColor=#e6efff align=left>&nbsp; </TD>
  <TD bgColor=#e6efff align=left>&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left><B>Current assets</B> </TD>
    <TD align=left>&nbsp;</TD>
    <TD align=center>&nbsp;</TD>
    <TD align=left>&nbsp;</TD>
    <TD align=left>&nbsp; </TD>
    <TD align=left>&nbsp;</TD>
    <TD align=left>&nbsp;</TD>
    <TD align=left>&nbsp; </TD>
  <TD align=left>&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD bgColor=#e6efff align=left>Cash and cash equivalents </TD>
    <TD bgColor=#e6efff align=left>&nbsp;</TD>
    <TD bgColor=#e6efff align=center>&nbsp;</TD>
    <TD bgColor=#e6efff align=left>&nbsp;</TD>
    <TD bgColor=#e6efff align=right><B>232,311</B> </TD>
    <TD bgColor=#e6efff align=left>&nbsp;</TD>
    <TD bgColor=#e6efff align=left>&nbsp;</TD>
    <TD bgColor=#e6efff align=right>26,659 </TD>
  <TD bgColor=#e6efff align=left>&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left>Accounts receivable </TD>
    <TD align=left>&nbsp;</TD>
    <TD align=center>&nbsp;</TD>
    <TD align=left>&nbsp;</TD>
    <TD align=right><B>30,323</B> </TD>
    <TD align=left>&nbsp;</TD>
    <TD align=left>&nbsp;</TD>
    <TD align=right>6,238 </TD>
  <TD align=left>&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD bgColor=#e6efff align=left>Marketable securities </TD>
    <TD bgColor=#e6efff align=left>&nbsp;</TD>
    <TD bgColor=#e6efff align=center>6b </TD>
    <TD bgColor=#e6efff align=left>&nbsp;</TD>
    <TD bgColor=#e6efff align=right><B>33,465</B> </TD>
    <TD bgColor=#e6efff align=left>&nbsp;</TD>
    <TD bgColor=#e6efff align=left>&nbsp;</TD>
    <TD bgColor=#e6efff align=right>17,863 </TD>
  <TD bgColor=#e6efff align=left>&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left>Inventories </TD>
    <TD align=left>&nbsp;</TD>
    <TD align=center>5 </TD>
    <TD align=left>&nbsp;</TD>
    <TD align=right><B>40,176</B> </TD>
    <TD align=left>&nbsp;</TD>
    <TD align=left>&nbsp;</TD>
    <TD align=right>20,565 </TD>
  <TD align=left>&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD bgColor=#e6efff align=left>Prepaid expenses and deposits </TD>
    <TD bgColor=#e6efff align=left>&nbsp;</TD>
    <TD bgColor=#e6efff align=center>&nbsp;</TD>
    <TD bgColor=#e6efff align=left>&nbsp;</TD>
    <TD bgColor=#e6efff align=right><B>5,779</B> </TD>
    <TD bgColor=#e6efff align=left>&nbsp;</TD>
    <TD bgColor=#e6efff align=left>&nbsp;</TD>
    <TD bgColor=#e6efff align=right>2,013 </TD>
  <TD bgColor=#e6efff align=left>&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left>Asset held for sale </TD>
    <TD align=left>&nbsp;</TD>
    <TD align=center>10b (ii) </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"
      align=right><B>-</B> </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right>1,859    </TD>
  <TD style="BORDER-BOTTOM: #000000 1px solid"
    align=left>&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD bgColor=#e6efff align=left>&nbsp; </TD>
    <TD bgColor=#e6efff align=left>&nbsp;</TD>
    <TD bgColor=#e6efff align=center>&nbsp;</TD>
    <TD bgColor=#e6efff align=left>&nbsp;</TD>
    <TD bgColor=#e6efff align=right><B>342,054</B> </TD>
    <TD bgColor=#e6efff align=left>&nbsp;</TD>
    <TD bgColor=#e6efff align=left>&nbsp;</TD>
    <TD bgColor=#e6efff align=right>75,197 </TD>
  <TD bgColor=#e6efff align=left>&nbsp;</TD>
  </TR>
  <TR>
    <TD>&nbsp; </TD>
    <TD>&nbsp;</TD>
    <TD align=center>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp; </TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp; </TD>
  <TD>&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD bgColor=#e6efff align=left><B>Restricted cash</B> </TD>
    <TD bgColor=#e6efff align=left>&nbsp;</TD>
    <TD bgColor=#e6efff align=center>12 </TD>
    <TD bgColor=#e6efff align=left>&nbsp;</TD>
    <TD bgColor=#e6efff align=right><B>2,071</B> </TD>
    <TD bgColor=#e6efff align=left>&nbsp;</TD>
    <TD bgColor=#e6efff align=left>&nbsp;</TD>
    <TD bgColor=#e6efff align=right>1,934 </TD>
  <TD bgColor=#e6efff align=left>&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left><B>Convertible debenture receivable</B> </TD>
    <TD align=left>&nbsp;</TD>
    <TD align=center>6c </TD>
    <TD align=left>&nbsp;</TD>
    <TD align=right><B>7,180</B> </TD>
    <TD align=left>&nbsp;</TD>
    <TD align=left>&nbsp;</TD>
    <TD align=right>6,081 </TD>
  <TD align=left>&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD bgColor=#e6efff align=left><B>Value added tax recoverable</B> </TD>
    <TD bgColor=#e6efff align=left>&nbsp;</TD>
    <TD bgColor=#e6efff align=center>8 </TD>
    <TD bgColor=#e6efff align=left>&nbsp;</TD>
    <TD bgColor=#e6efff align=right><B>70,782</B> </TD>
    <TD bgColor=#e6efff align=left>&nbsp;</TD>
    <TD bgColor=#e6efff align=left>&nbsp;</TD>
    <TD bgColor=#e6efff align=right>54,095 </TD>
  <TD bgColor=#e6efff align=left>&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left><B>Investment accounted for under the equity method</B> </TD>
    <TD align=left>&nbsp;</TD>
    <TD align=center>9 </TD>
    <TD align=left>&nbsp;</TD>
    <TD align=right><B>226,271</B> </TD>
    <TD align=left>&nbsp;</TD>
    <TD align=left>&nbsp;</TD>
    <TD align=right>- </TD>
  <TD align=left>&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD bgColor=#e6efff align=left><B>Mineral properties and property, plant,
      and equipment</B> </TD>
    <TD bgColor=#e6efff align=left>&nbsp;</TD>
    <TD bgColor=#e6efff align=center>10 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff
    align=right><B>613,659</B> </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff
    align=right>612,618 </TD>
  <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff
    align=left>&nbsp;</TD>
  </TR>
  <TR>
    <TD>&nbsp; </TD>
    <TD>&nbsp;</TD>
    <TD align=center>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp; </TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp; </TD>
  <TD>&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD bgColor=#e6efff align=left>&nbsp; </TD>
    <TD bgColor=#e6efff align=left>&nbsp;</TD>
    <TD bgColor=#e6efff align=center>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" bgColor=#e6efff
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" bgColor=#e6efff
    align=right><B>1,262,017</B> </TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" bgColor=#e6efff
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" bgColor=#e6efff
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" bgColor=#e6efff
    align=right>749,925 </TD>
  <TD style="BORDER-BOTTOM: #000000 2px solid" bgColor=#e6efff
    align=left>&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left><B>Liabilities and Shareholders' Equity</B> </TD>
    <TD align=left>&nbsp;</TD>
    <TD align=center>&nbsp;</TD>
    <TD align=left>&nbsp;</TD>
    <TD align=left>&nbsp; </TD>
    <TD align=left>&nbsp;</TD>
    <TD align=left>&nbsp;</TD>
    <TD align=left>&nbsp; </TD>
  <TD align=left>&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD bgColor=#e6efff align=left><B>Current liabilities</B> </TD>
    <TD bgColor=#e6efff align=left>&nbsp;</TD>
    <TD bgColor=#e6efff align=center>&nbsp;</TD>
    <TD bgColor=#e6efff align=left>&nbsp;</TD>
    <TD bgColor=#e6efff align=left>&nbsp; </TD>
    <TD bgColor=#e6efff align=left>&nbsp;</TD>
    <TD bgColor=#e6efff align=left>&nbsp;</TD>
    <TD bgColor=#e6efff align=left>&nbsp; </TD>
  <TD bgColor=#e6efff align=left>&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left>Accounts payable and accrued liabilities </TD>
    <TD align=left>&nbsp;</TD>
    <TD align=center>&nbsp;</TD>
    <TD align=left>&nbsp;</TD>
    <TD align=right><B>32,132</B> </TD>
    <TD align=left>&nbsp;</TD>
    <TD align=left>&nbsp;</TD>
    <TD align=right>48,265 </TD>
  <TD align=left>&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD bgColor=#e6efff align=left>Accrued interest on convertible notes </TD>
    <TD bgColor=#e6efff align=left>&nbsp;</TD>
    <TD bgColor=#e6efff align=center>11 </TD>
    <TD bgColor=#e6efff align=left>&nbsp;</TD>
    <TD bgColor=#e6efff align=right><B>2,076</B> </TD>
    <TD bgColor=#e6efff align=left>&nbsp;</TD>
    <TD bgColor=#e6efff align=left>&nbsp;</TD>
    <TD bgColor=#e6efff align=right>2,076 </TD>
  <TD bgColor=#e6efff align=left>&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left>Current portion of future income tax liability </TD>
    <TD align=left>&nbsp;</TD>
    <TD align=center>16 </TD>
    <TD align=left>&nbsp;</TD>
    <TD align=right><B>3,047</B> </TD>
    <TD align=left>&nbsp;</TD>
    <TD align=left>&nbsp;</TD>
    <TD align=right>- </TD>
  <TD align=left>&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD bgColor=#e6efff align=left>Current portion of asset retirement
      obligations </TD>
    <TD bgColor=#e6efff align=left>&nbsp;</TD>
    <TD bgColor=#e6efff align=center>12 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff
    align=right><B>955</B> </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff
    align=right>341 </TD>
  <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff
    align=left>&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left>&nbsp; </TD>
    <TD align=left>&nbsp;</TD>
    <TD align=center>&nbsp;</TD>
    <TD align=left>&nbsp;</TD>
    <TD align=right><B>38,210</B> </TD>
    <TD align=left>&nbsp;</TD>
    <TD align=left>&nbsp;</TD>
    <TD align=right>50,682 </TD>
  <TD align=left>&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD bgColor=#e6efff align=left>&nbsp;</TD>
    <TD bgColor=#e6efff align=left>&nbsp;</TD>
    <TD bgColor=#e6efff align=center>&nbsp;</TD>
    <TD bgColor=#e6efff align=left>&nbsp;</TD>
    <TD bgColor=#e6efff align=right>&nbsp;</TD>
    <TD bgColor=#e6efff align=left>&nbsp;</TD>
    <TD bgColor=#e6efff align=left>&nbsp;</TD>
    <TD bgColor=#e6efff align=right>&nbsp;</TD>
    <TD bgColor=#e6efff align=left>&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left><B>Asset retirement obligations</B> </TD>
    <TD align=left>&nbsp;</TD>
    <TD align=center>12 </TD>
    <TD align=left>&nbsp;</TD>
    <TD align=right><B>12,768</B> </TD>
    <TD align=left>&nbsp;</TD>
    <TD align=left>&nbsp;</TD>
    <TD align=right>11,150 </TD>
  <TD align=left>&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left bgcolor="#E6EFFF"><B>Taxes payable</B> </TD>
    <TD align=left bgcolor="#E6EFFF">&nbsp;</TD>
    <TD align=center bgcolor="#E6EFFF">&nbsp;</TD>
    <TD align=left bgcolor="#E6EFFF">&nbsp;</TD>
    <TD align=right bgcolor="#E6EFFF"><B>3,672</B> </TD>
    <TD align=left bgcolor="#E6EFFF">&nbsp;</TD>
    <TD align=left bgcolor="#E6EFFF">&nbsp;</TD>
    <TD align=right bgcolor="#E6EFFF">3,370 </TD>
  <TD align=left bgcolor="#E6EFFF">&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left><B>Future income tax liability</B> </TD>
    <TD align=left>&nbsp;</TD>
    <TD align=center>16 </TD>
    <TD align=left>&nbsp;</TD>
    <TD align=right><B>57,392</B> </TD>
    <TD align=left>&nbsp;</TD>
    <TD align=left>&nbsp;</TD>
    <TD align=right>36,798 </TD>
  <TD align=left>&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left bgcolor="#E6EFFF"><B>Long-term convertible notes</B> </TD>
    <TD align=left bgcolor="#E6EFFF">&nbsp;</TD>
    <TD align=center bgcolor="#E6EFFF">11 </TD>
    <TD
    align=left bgcolor="#E6EFFF" style="BORDER-BOTTOM: #000000 1px solid">&nbsp;</TD>
    <TD
      align=right bgcolor="#E6EFFF" style="BORDER-BOTTOM: #000000 1px solid"><B>118,203</B> </TD>
    <TD
    align=left bgcolor="#E6EFFF" style="BORDER-BOTTOM: #000000 1px solid">&nbsp;</TD>
    <TD
    align=left bgcolor="#E6EFFF" style="BORDER-BOTTOM: #000000 1px solid">&nbsp;</TD>
    <TD
      align=right bgcolor="#E6EFFF" style="BORDER-BOTTOM: #000000 1px solid">110,739 </TD>
  <TD
    align=left bgcolor="#E6EFFF" style="BORDER-BOTTOM: #000000 1px solid">&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left>&nbsp; </TD>
    <TD align=left>&nbsp;</TD>
    <TD align=center>&nbsp;</TD>
    <TD align=left>&nbsp;</TD>
    <TD align=right><B>230,245</B> </TD>
    <TD align=left>&nbsp;</TD>
    <TD align=left>&nbsp;</TD>
    <TD align=right>212,739 </TD>
  <TD align=left>&nbsp;</TD>
  </TR>
  <TR>
    <TD bgcolor="#E6EFFF">&nbsp; </TD>
    <TD bgcolor="#E6EFFF">&nbsp;</TD>
    <TD align=center bgcolor="#E6EFFF">&nbsp;</TD>
    <TD bgcolor="#E6EFFF">&nbsp;</TD>
    <TD bgcolor="#E6EFFF">&nbsp; </TD>
    <TD bgcolor="#E6EFFF">&nbsp;</TD>
    <TD bgcolor="#E6EFFF">&nbsp;</TD>
    <TD bgcolor="#E6EFFF">&nbsp; </TD>
  <TD bgcolor="#E6EFFF">&nbsp;</TD>
  </TR>
  <TR>
    <TD>&nbsp; </TD>
    <TD>&nbsp;</TD>
    <TD align=center>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp; </TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp; </TD>
  <TD>&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left bgcolor="#E6EFFF"><B>Shareholders' Equity</B> </TD>
    <TD align=left bgcolor="#E6EFFF">&nbsp;</TD>
    <TD align=center bgcolor="#E6EFFF">&nbsp;</TD>
    <TD align=left bgcolor="#E6EFFF">&nbsp;</TD>
    <TD align=left bgcolor="#E6EFFF">&nbsp; </TD>
    <TD align=left bgcolor="#E6EFFF">&nbsp;</TD>
    <TD align=left bgcolor="#E6EFFF">&nbsp;</TD>
    <TD align=left bgcolor="#E6EFFF">&nbsp; </TD>
  <TD align=left bgcolor="#E6EFFF">&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left><B>Share capital</B> </TD>
    <TD align=left>&nbsp;</TD>
    <TD align=center>13 </TD>
    <TD align=left>&nbsp;</TD>
    <TD align=right><B>671,542</B> </TD>
    <TD align=left>&nbsp;</TD>
    <TD align=left>&nbsp;</TD>
    <TD align=right>538,700 </TD>
  <TD align=left>&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left bgcolor="#E6EFFF"><B>Value assigned to stock options</B> </TD>
    <TD align=left bgcolor="#E6EFFF">&nbsp;</TD>
    <TD align=center bgcolor="#E6EFFF">13 </TD>
    <TD align=left bgcolor="#E6EFFF">&nbsp;</TD>
    <TD align=right bgcolor="#E6EFFF"><B>42,660</B> </TD>
    <TD align=left bgcolor="#E6EFFF">&nbsp;</TD>
    <TD align=left bgcolor="#E6EFFF">&nbsp;</TD>
    <TD align=right bgcolor="#E6EFFF">40,417 </TD>
  <TD align=left bgcolor="#E6EFFF">&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left><B>Value assigned to convertible notes</B>    </TD>
    <TD align=left>&nbsp;</TD>
    <TD align=center>11 </TD>
    <TD align=left>&nbsp;</TD>
    <TD align=right><B>37,383</B> </TD>
    <TD align=left>&nbsp;</TD>
    <TD align=left>&nbsp;</TD>
    <TD align=right>37,383 </TD>
  <TD align=left>&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left bgcolor="#E6EFFF"><B>Contributed surplus</B> </TD>
    <TD align=left bgcolor="#E6EFFF">&nbsp;</TD>
    <TD align=center bgcolor="#E6EFFF">&nbsp;</TD>
    <TD align=left bgcolor="#E6EFFF">&nbsp;</TD>
    <TD align=right bgcolor="#E6EFFF"><B>510</B> </TD>
    <TD align=left bgcolor="#E6EFFF">&nbsp;</TD>
    <TD align=left bgcolor="#E6EFFF">&nbsp;</TD>
    <TD align=right bgcolor="#E6EFFF">510 </TD>
  <TD align=left bgcolor="#E6EFFF">&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left><B>Accumulated other comprehensive income
      (loss)</B> </TD>
    <TD align=left>&nbsp;</TD>
    <TD align=center>&nbsp;</TD>
    <TD align=left>&nbsp;</TD>
    <TD align=right><B>1,515</B> </TD>
    <TD align=left>&nbsp;</TD>
    <TD align=left>&nbsp;</TD>
    <TD align=right>(11,747</TD>
  <TD align=left>) </TD>
  </TR>
  <TR vAlign=top>
    <TD align=left bgcolor="#E6EFFF"><B>Retained earnings (deficit)</B> </TD>
    <TD align=left bgcolor="#E6EFFF">&nbsp;</TD>
    <TD align=center bgcolor="#E6EFFF">&nbsp;</TD>
    <TD
    align=left bgcolor="#E6EFFF" style="BORDER-BOTTOM: #000000 1px solid">&nbsp;</TD>
    <TD
      align=right bgcolor="#E6EFFF" style="BORDER-BOTTOM: #000000 1px solid"><B>277,666</B> </TD>
    <TD
    align=left bgcolor="#E6EFFF" style="BORDER-BOTTOM: #000000 1px solid">&nbsp;</TD>
    <TD
    align=left bgcolor="#E6EFFF" style="BORDER-BOTTOM: #000000 1px solid">&nbsp;</TD>
    <TD
      align=right bgcolor="#E6EFFF" style="BORDER-BOTTOM: #000000 1px solid">(68,573</TD>
    <TD align=left bgcolor="#E6EFFF" style="BORDER-BOTTOM: #000000 1px solid">)</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left><B>Equity attributable to Silver Standard
      shareholders</B> </TD>
    <TD align=left>&nbsp;</TD>
    <TD align=center>&nbsp;</TD>
    <TD align=left>&nbsp;</TD>
    <TD align=right><B>1,031,276</B> </TD>
    <TD align=left>&nbsp;</TD>
    <TD align=left>&nbsp;</TD>
    <TD align=right>536,690 </TD>
  <TD align=left>&nbsp;</TD>
  </TR>
  <TR>
    <TD bgcolor="#E6EFFF">&nbsp; </TD>
    <TD bgcolor="#E6EFFF">&nbsp;</TD>
    <TD align=center bgcolor="#E6EFFF">&nbsp;</TD>
    <TD bgcolor="#E6EFFF">&nbsp;</TD>
    <TD bgcolor="#E6EFFF">&nbsp; </TD>
    <TD bgcolor="#E6EFFF">&nbsp;</TD>
    <TD bgcolor="#E6EFFF">&nbsp;</TD>
    <TD bgcolor="#E6EFFF">&nbsp; </TD>
  <TD bgcolor="#E6EFFF">&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left><B>Non-controlling interest</B> </TD>
    <TD align=left>&nbsp;</TD>
    <TD align=center>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"
    align=right><B>496</B> </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"
    align=right>496 </TD>
  <TD style="BORDER-BOTTOM: #000000 1px solid"
    align=left>&nbsp;</TD>
  </TR>
  <TR>
    <TD bgcolor="#E6EFFF">&nbsp; </TD>
    <TD bgcolor="#E6EFFF">&nbsp;</TD>
    <TD align=center bgcolor="#E6EFFF">&nbsp;</TD>
    <TD bgcolor="#E6EFFF">&nbsp;</TD>
    <TD bgcolor="#E6EFFF">&nbsp; </TD>
    <TD bgcolor="#E6EFFF">&nbsp;</TD>
    <TD bgcolor="#E6EFFF">&nbsp;</TD>
    <TD bgcolor="#E6EFFF">&nbsp; </TD>
  <TD bgcolor="#E6EFFF">&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left><B>Total Shareholders' Equity</B> </TD>
    <TD align=left>&nbsp;</TD>
    <TD align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"
    align=right><B>1,031,772</B> </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"
    align=right>537,186 </TD>
  <TD style="BORDER-BOTTOM: #000000 1px solid"
    align=left>&nbsp;</TD>
  </TR>
  <TR>
    <TD bgcolor="#E6EFFF">&nbsp; </TD>
    <TD bgcolor="#E6EFFF">&nbsp;</TD>
    <TD bgcolor="#E6EFFF">&nbsp;</TD>
    <TD bgcolor="#E6EFFF">&nbsp;</TD>
    <TD bgcolor="#E6EFFF">&nbsp; </TD>
    <TD bgcolor="#E6EFFF">&nbsp;</TD>
    <TD bgcolor="#E6EFFF">&nbsp;</TD>
    <TD bgcolor="#E6EFFF">&nbsp; </TD>
  <TD bgcolor="#E6EFFF">&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left>&nbsp; </TD>
    <TD align=left>&nbsp;</TD>
    <TD align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid"
    align=right><B>1,262,017</B> </TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid"
    align=right>749,925 </TD>
  <TD style="BORDER-BOTTOM: #000000 2px solid"
    align=left>&nbsp;</TD>
</TR></TABLE>
<P align=justify>Subsequent events (note 10b (i) and 20) <BR>Commitments (note
6d)</P>
<P align=justify><B>Approved on behalf of the Board of Directors</B></P>
<TABLE
style="BORDER-COLOR: black; BORDER-COLLAPSE: collapse; FONT-SIZE: 10pt; "
border=0 cellSpacing=0 cellPadding=0 width="100%">

  <TR vAlign=top>
    <TD align=left><I>&#147;John R. Brodie&#148;</I> </TD>
    <TD width="50%" align=left><I>&#147;John Smith&#148;</I> </TD></TR>
  <TR vAlign=top>
    <TD align=left>John R. Brodie, FCA </TD>
    <TD width="50%" align=left>John Smith </TD></TR>
  <TR vAlign=top>
    <TD align=left>(Chairman of the Audit Committee) </TD>
    <TD width="50%" align=left>(Director) </TD></TR></TABLE>
<P align=center>The accompanying notes are an integral part of the consolidated
financial statements</P>
<P align=right>1</P>
<HR style="PAGE-BREAK-AFTER: always" align=center color=black SIZE=5
width="100%" noShade>
<!--$$/page=--><A name=page_7></A><BR>
<TABLE
style="BORDER-COLOR: black; BORDER-COLLAPSE: collapse; FONT-SIZE: 10pt; "
border=0 cellSpacing=0 cellPadding=0 width="100%">

  <TR vAlign=top>
    <TD align=left><B>Silver Standard Resources Inc.</B> </TD></TR>
  <TR vAlign=top>
    <TD align=left>Consolidated Statements of Earnings (Loss) </TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>For the years
      ended December 31, 2010, 2009 and 2008 </TD></TR>
  <TR vAlign=top>
    <TD align=left>(expressed in thousands of United States dollars, except
      per share amounts) </TD></TR></TABLE><BR>
<TABLE
style="BORDER-COLOR: black; BORDER-COLLAPSE: collapse; FONT-SIZE: 10pt; "
border=0 cellSpacing=0 cellPadding=0 width="100%">

  <TR vAlign=top>
    <TD align=left valign="bottom">&nbsp; </TD>
    <TD  width="1%" align=left valign="bottom">&nbsp;</TD>
    <TD width="10%" align=center valign="bottom"><B>Note</B> </TD>
    <TD  width="2%" align=left valign="bottom">&nbsp;</TD>
    <TD  width="1%" align=left valign="bottom">&nbsp;</TD>
    <TD width="10%" align=right valign="bottom"><B>2010</B> </TD>
    <TD  width="2%" align=left valign="bottom">&nbsp;</TD>
    <TD  width="1%" align=left valign="bottom">&nbsp;</TD>
    <TD width="10%" align=right valign="bottom"><B>2009</B> </TD>
    <TD  width="2%" align=left valign="bottom">&nbsp;</TD>
    <TD  width="1%" align=left valign="bottom">&nbsp;</TD>
    <TD width="10%" align=right valign="bottom"><B>2008</B> </TD>
  <TD  width="2%" align=left valign="bottom">&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left valign="bottom">&nbsp; </TD>
    <TD align=left valign="bottom">&nbsp;</TD>
    <TD align=center valign="bottom">&nbsp; </TD>
    <TD align=left valign="bottom">&nbsp;</TD>
    <TD
    align=left valign="bottom" style="BORDER-BOTTOM: #000000 1px solid"><B></B></TD>
    <TD
      align=right valign="bottom" style="BORDER-BOTTOM: #000000 1px solid"><STRONG>$</STRONG>&nbsp;</TD>
    <TD
    align=left valign="bottom" style="BORDER-BOTTOM: #000000 1px solid">&nbsp;</TD>
    <TD
    align=left valign="bottom" style="BORDER-BOTTOM: #000000 1px solid"></TD>
    <TD
      align=right valign="bottom" style="BORDER-BOTTOM: #000000 1px solid"><STRONG>$</STRONG>&nbsp;</TD>
    <TD
    align=left valign="bottom" style="BORDER-BOTTOM: #000000 1px solid">&nbsp;</TD>
    <TD
    align=left valign="bottom" style="BORDER-BOTTOM: #000000 1px solid"><B></B></TD>
    <TD
      align=right valign="bottom" style="BORDER-BOTTOM: #000000 1px solid"><STRONG>$</STRONG>&nbsp;</TD>
  <TD
    align=left valign="bottom" style="BORDER-BOTTOM: #000000 1px solid">&nbsp;</TD>
  </TR>
  <TR>
    <TD valign="bottom">&nbsp; </TD>
    <TD valign="bottom">&nbsp;</TD>
    <TD align=center valign="bottom">&nbsp; </TD>
    <TD valign="bottom">&nbsp;</TD>
    <TD valign="bottom">&nbsp;</TD>
    <TD valign="bottom">&nbsp; </TD>
    <TD valign="bottom">&nbsp;</TD>
    <TD valign="bottom">&nbsp;</TD>
    <TD valign="bottom">&nbsp; </TD>
    <TD valign="bottom">&nbsp;</TD>
    <TD valign="bottom">&nbsp;</TD>
    <TD valign="bottom">&nbsp; </TD>
  <TD valign="bottom">&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left valign="bottom" bgColor=#e6efff><B>Revenue</B> </TD>
    <TD align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD align=center valign="bottom" bgColor=#e6efff>&nbsp; </TD>
    <TD align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD align=right valign="bottom" bgColor=#e6efff><B>112,256</B> </TD>
    <TD align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD align=right valign="bottom" bgColor=#e6efff>5,442 </TD>
    <TD align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD align=right valign="bottom" bgColor=#e6efff>- </TD>
  <TD align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
  </TR>
  <TR>
    <TD valign="bottom">&nbsp; </TD>
    <TD valign="bottom">&nbsp;</TD>
    <TD align=center valign="bottom">&nbsp; </TD>
    <TD valign="bottom">&nbsp;</TD>
    <TD valign="bottom">&nbsp;</TD>
    <TD valign="bottom">&nbsp; </TD>
    <TD valign="bottom">&nbsp;</TD>
    <TD valign="bottom">&nbsp;</TD>
    <TD valign="bottom">&nbsp; </TD>
    <TD valign="bottom">&nbsp;</TD>
    <TD valign="bottom">&nbsp;</TD>
    <TD valign="bottom">&nbsp; </TD>
  <TD valign="bottom">&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left valign="bottom" bgColor=#e6efff>Cost of sales </TD>
    <TD align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD align=center valign="bottom" bgColor=#e6efff>&nbsp; </TD>
    <TD align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD align=right valign="bottom" bgColor=#e6efff><B>75,971</B> </TD>
    <TD align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD align=right valign="bottom" bgColor=#e6efff>5,926 </TD>
    <TD align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD align=right valign="bottom" bgColor=#e6efff>- </TD>
  <TD align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left valign="bottom">Depletion, depreciation and amortization </TD>
    <TD align=left valign="bottom">&nbsp;</TD>
    <TD align=center valign="bottom">&nbsp; </TD>
    <TD align=left valign="bottom">&nbsp;</TD>
    <TD
    align=left valign="bottom" style="BORDER-BOTTOM: #000000 1px solid">&nbsp;</TD>
    <TD
      align=right valign="bottom" style="BORDER-BOTTOM: #000000 1px solid"><B>26,327</B> </TD>
    <TD
    align=left valign="bottom" style="BORDER-BOTTOM: #000000 1px solid">&nbsp;</TD>
    <TD
    align=left valign="bottom" style="BORDER-BOTTOM: #000000 1px solid">&nbsp;</TD>
    <TD align=right valign="bottom" style="BORDER-BOTTOM: #000000 1px solid">2,039    </TD>
    <TD
    align=left valign="bottom" style="BORDER-BOTTOM: #000000 1px solid">&nbsp;</TD>
    <TD
    align=left valign="bottom" style="BORDER-BOTTOM: #000000 1px solid">&nbsp;</TD>
    <TD align=right valign="bottom" style="BORDER-BOTTOM: #000000 1px solid">- </TD>
  <TD
    align=left valign="bottom" style="BORDER-BOTTOM: #000000 1px solid">&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left valign="bottom" bgColor=#e6efff><B>Earnings (Loss) from mine operations</B>    </TD>
    <TD align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD align=center valign="bottom" bgColor=#e6efff>&nbsp; </TD>
    <TD align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD align=left valign="bottom" bgColor=#e6efff style="BORDER-BOTTOM: #000000 1px solid">&nbsp;</TD>
    <TD
    align=right valign="bottom" bgColor=#e6efff style="BORDER-BOTTOM: #000000 1px solid"><B>9,958</B> </TD>
    <TD align=left valign="bottom" bgColor=#e6efff style="BORDER-BOTTOM: #000000 1px solid">&nbsp;</TD>
    <TD align=left valign="bottom" bgColor=#e6efff style="BORDER-BOTTOM: #000000 1px solid">&nbsp;</TD>
    <TD
    align=right valign="bottom" bgColor=#e6efff style="BORDER-BOTTOM: #000000 1px solid">(2,523</TD>
    <TD align=left valign="bottom" bgColor=#e6efff style="BORDER-BOTTOM: #000000 1px solid">) </TD>
    <TD align=left valign="bottom" bgColor=#e6efff style="BORDER-BOTTOM: #000000 1px solid">&nbsp;</TD>
    <TD
    align=right valign="bottom" bgColor=#e6efff style="BORDER-BOTTOM: #000000 1px solid"><B>-</B> </TD>
  <TD align=left valign="bottom" bgColor=#e6efff style="BORDER-BOTTOM: #000000 1px solid">&nbsp;</TD>
  </TR>
  <TR>
    <TD valign="bottom">&nbsp; </TD>
    <TD valign="bottom">&nbsp;</TD>
    <TD align=center valign="bottom">&nbsp; </TD>
    <TD valign="bottom">&nbsp;</TD>
    <TD valign="bottom">&nbsp;</TD>
    <TD valign="bottom">&nbsp; </TD>
    <TD valign="bottom">&nbsp;</TD>
    <TD valign="bottom">&nbsp;</TD>
    <TD valign="bottom">&nbsp; </TD>
    <TD valign="bottom">&nbsp;</TD>
    <TD valign="bottom">&nbsp;</TD>
    <TD valign="bottom">&nbsp; </TD>
  <TD valign="bottom">&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left valign="bottom" bgColor=#e6efff>General and administration expense </TD>
    <TD align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD align=center valign="bottom" bgColor=#e6efff>&nbsp; </TD>
    <TD align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD align=right valign="bottom" bgColor=#e6efff><B>20,853</B> </TD>
    <TD align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD align=right valign="bottom" bgColor=#e6efff>10,287 </TD>
    <TD align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD align=right valign="bottom" bgColor=#e6efff>9,031 </TD>
  <TD align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left valign="bottom">Stock-based compensation expense </TD>
    <TD align=left valign="bottom">&nbsp;</TD>
    <TD align=center valign="bottom">13b </TD>
    <TD align=left valign="bottom">&nbsp;</TD>
    <TD align=left valign="bottom">&nbsp;</TD>
    <TD align=right valign="bottom"><B>8,868</B> </TD>
    <TD align=left valign="bottom">&nbsp;</TD>
    <TD align=left valign="bottom">&nbsp;</TD>
    <TD align=right valign="bottom">6,319 </TD>
    <TD align=left valign="bottom">&nbsp;</TD>
    <TD align=left valign="bottom">&nbsp;</TD>
    <TD align=right valign="bottom">9,601 </TD>
  <TD align=left valign="bottom">&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left valign="bottom" bgColor=#e6efff>Property examination and exploration
      expense </TD>
    <TD align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD align=center valign="bottom" bgColor=#e6efff>&nbsp; </TD>
    <TD align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD align=right valign="bottom" bgColor=#e6efff><B>2,400</B> </TD>
    <TD align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD align=right valign="bottom" bgColor=#e6efff>459 </TD>
    <TD align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD align=right valign="bottom" bgColor=#e6efff>340 </TD>
  <TD align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left valign="bottom">Reclamation and accretion expense </TD>
    <TD align=left valign="bottom">&nbsp;</TD>
    <TD align=center valign="bottom">12 </TD>
    <TD align=left valign="bottom">&nbsp;</TD>
    <TD
    align=left valign="bottom" style="BORDER-BOTTOM: #000000 1px solid">&nbsp;</TD>
    <TD
      align=right valign="bottom" style="BORDER-BOTTOM: #000000 1px solid"><B>1,669</B> </TD>
    <TD
    align=left valign="bottom" style="BORDER-BOTTOM: #000000 1px solid">&nbsp;</TD>
    <TD
    align=left valign="bottom" style="BORDER-BOTTOM: #000000 1px solid">&nbsp;</TD>
    <TD align=right valign="bottom" style="BORDER-BOTTOM: #000000 1px solid">366    </TD>
    <TD
    align=left valign="bottom" style="BORDER-BOTTOM: #000000 1px solid">&nbsp;</TD>
    <TD
    align=left valign="bottom" style="BORDER-BOTTOM: #000000 1px solid">&nbsp;</TD>
    <TD align=right valign="bottom" style="BORDER-BOTTOM: #000000 1px solid">318    </TD>
  <TD
    align=left valign="bottom" style="BORDER-BOTTOM: #000000 1px solid">&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left valign="bottom" bgColor=#e6efff>&nbsp; </TD>
    <TD align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD align=center valign="bottom" bgColor=#e6efff>&nbsp; </TD>
    <TD align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD align=left valign="bottom" bgColor=#e6efff>&nbsp; </TD>
    <TD align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD align=right valign="bottom" bgColor=#e6efff>- </TD>
    <TD align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD align=right valign="bottom" bgColor=#e6efff>- </TD>
  <TD align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left valign="bottom"><B>Loss from operations</B> </TD>
    <TD align=left valign="bottom">&nbsp;</TD>
    <TD align=center valign="bottom">&nbsp; </TD>
    <TD align=left valign="bottom">&nbsp;</TD>
    <TD
    align=left valign="bottom" style="BORDER-BOTTOM: #000000 1px solid">&nbsp;</TD>
    <TD
      align=right valign="bottom" style="BORDER-BOTTOM: #000000 1px solid"><B>(23,832</B></TD>
    <TD
    align=left valign="bottom" style="BORDER-BOTTOM: #000000 1px solid"><B>)</B> </TD>
    <TD
    align=left valign="bottom" style="BORDER-BOTTOM: #000000 1px solid">&nbsp;</TD>
    <TD
      align=right valign="bottom" style="BORDER-BOTTOM: #000000 1px solid">(19,954</TD>
    <TD
    align=left valign="bottom" style="BORDER-BOTTOM: #000000 1px solid">) </TD>
    <TD
    align=left valign="bottom" style="BORDER-BOTTOM: #000000 1px solid">&nbsp;</TD>
    <TD
      align=right valign="bottom" style="BORDER-BOTTOM: #000000 1px solid">(19,290</TD>
  <TD
    align=left valign="bottom" style="BORDER-BOTTOM: #000000 1px solid">) </TD>
  </TR>
  <TR>
    <TD valign="bottom" bgColor=#e6efff>&nbsp; </TD>
    <TD valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD align=center valign="bottom" bgColor=#e6efff>&nbsp; </TD>
    <TD valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD valign="bottom" bgColor=#e6efff>&nbsp; </TD>
    <TD valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD valign="bottom" bgColor=#e6efff>&nbsp; </TD>
    <TD valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD valign="bottom" bgColor=#e6efff>&nbsp; </TD>
  <TD valign="bottom" bgColor=#e6efff>&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left valign="bottom">Other income (expenses) </TD>
    <TD align=left valign="bottom">&nbsp;</TD>
    <TD align=center valign="bottom">&nbsp; </TD>
    <TD align=left valign="bottom">&nbsp;</TD>
    <TD align=left valign="bottom">&nbsp;</TD>
    <TD align=left valign="bottom">&nbsp; </TD>
    <TD align=left valign="bottom">&nbsp;</TD>
    <TD align=left valign="bottom">&nbsp;</TD>
    <TD align=left valign="bottom">&nbsp; </TD>
    <TD align=left valign="bottom">&nbsp;</TD>
    <TD align=left valign="bottom">&nbsp;</TD>
    <TD align=left valign="bottom">&nbsp; </TD>
  <TD align=left valign="bottom">&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left valign="bottom" bgColor=#e6efff>&nbsp; &nbsp;Investment income </TD>
    <TD align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD align=center valign="bottom" bgColor=#e6efff>&nbsp; </TD>
    <TD align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD align=right valign="bottom" bgColor=#e6efff><B>1,400</B> </TD>
    <TD align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD align=right valign="bottom" bgColor=#e6efff>1,100 </TD>
    <TD align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD align=right valign="bottom" bgColor=#e6efff>3,039 </TD>
  <TD align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left valign="bottom">&nbsp; &nbsp;Foreign exchange gain </TD>
    <TD align=left valign="bottom">&nbsp;</TD>
    <TD align=center valign="bottom">&nbsp; </TD>
    <TD align=left valign="bottom">&nbsp;</TD>
    <TD align=left valign="bottom">&nbsp;</TD>
    <TD align=right valign="bottom"><B>1,239</B> </TD>
    <TD align=left valign="bottom">&nbsp;</TD>
    <TD align=left valign="bottom">&nbsp;</TD>
    <TD align=right valign="bottom">4,993 </TD>
    <TD align=left valign="bottom">&nbsp;</TD>
    <TD align=left valign="bottom">&nbsp;</TD>
    <TD align=right valign="bottom">200 </TD>
  <TD align=left valign="bottom">&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left valign="bottom" bgColor=#e6efff>&nbsp;&nbsp; Gain on sale of mineral
      properties and property, plant and equipment </TD>
    <TD align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD align=center valign="bottom" bgColor=#e6efff>10b </TD>
    <TD align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD align=right valign="bottom" bgColor=#e6efff><B>402,009</B> </TD>
    <TD align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD align=right valign="bottom" bgColor=#e6efff>167 </TD>
    <TD align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD align=right valign="bottom" bgColor=#e6efff>31,463 </TD>
  <TD align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left valign="bottom">&nbsp; &nbsp;Other income (expense) </TD>
    <TD align=left valign="bottom">&nbsp;</TD>
    <TD align=center valign="bottom">18 </TD>
    <TD align=left valign="bottom">&nbsp;</TD>
    <TD align=left valign="bottom">&nbsp;</TD>
    <TD align=right valign="bottom"><B>2,713</B> </TD>
    <TD align=left valign="bottom">&nbsp;</TD>
    <TD align=left valign="bottom">&nbsp;</TD>
    <TD align=right valign="bottom">(2,712</TD>
    <TD align=left valign="bottom">) </TD>
    <TD align=left valign="bottom">&nbsp;</TD>
    <TD align=right valign="bottom">3,109 </TD>
  <TD align=left valign="bottom">&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left valign="bottom" bgColor=#e6efff>&nbsp; &nbsp;Interest expense and financing
      fees </TD>
    <TD align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD align=center valign="bottom" bgColor=#e6efff>11 </TD>
    <TD align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD align=right valign="bottom" bgColor=#e6efff><B>(13,916</B></TD>
    <TD align=left valign="bottom" bgColor=#e6efff><B>)</B> </TD>
    <TD align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD align=right valign="bottom" bgColor=#e6efff>(1,095</TD>
    <TD align=left valign="bottom" bgColor=#e6efff>) </TD>
    <TD align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD align=right valign="bottom" bgColor=#e6efff>(6,499</TD>
  <TD align=left valign="bottom" bgColor=#e6efff>) </TD>
  </TR>
  <TR vAlign=top>
    <TD align=left valign="bottom">&nbsp; &nbsp;Share of loss of equity investee </TD>
    <TD align=left valign="bottom">&nbsp;</TD>
    <TD align=center valign="bottom">9 </TD>
    <TD align=left valign="bottom">&nbsp;</TD>
    <TD
    align=left valign="bottom" style="BORDER-BOTTOM: #000000 1px solid">&nbsp;</TD>
    <TD
      align=right valign="bottom" style="BORDER-BOTTOM: #000000 1px solid"><B>(77</B></TD>
    <TD
    align=left valign="bottom" style="BORDER-BOTTOM: #000000 1px solid"><B>)</B> </TD>
    <TD
    align=left valign="bottom" style="BORDER-BOTTOM: #000000 1px solid">&nbsp;</TD>
    <TD align=right valign="bottom" style="BORDER-BOTTOM: #000000 1px solid">- </TD>
    <TD
    align=left valign="bottom" style="BORDER-BOTTOM: #000000 1px solid">&nbsp;</TD>
    <TD
    align=left valign="bottom" style="BORDER-BOTTOM: #000000 1px solid">&nbsp;</TD>
    <TD align=right valign="bottom" style="BORDER-BOTTOM: #000000 1px solid">- </TD>
  <TD
    align=left valign="bottom" style="BORDER-BOTTOM: #000000 1px solid">&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left valign="bottom" bgColor=#e6efff>&nbsp; </TD>
    <TD align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD align=center valign="bottom" bgColor=#e6efff>&nbsp; </TD>
    <TD align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD align=left valign="bottom" bgColor=#e6efff style="BORDER-BOTTOM: #000000 1px solid">&nbsp;</TD>
    <TD
    align=right valign="bottom" bgColor=#e6efff style="BORDER-BOTTOM: #000000 1px solid"><B>393,368</B> </TD>
    <TD align=left valign="bottom" bgColor=#e6efff style="BORDER-BOTTOM: #000000 1px solid">&nbsp;</TD>
    <TD align=left valign="bottom" bgColor=#e6efff style="BORDER-BOTTOM: #000000 1px solid">&nbsp;</TD>
    <TD
    align=right valign="bottom" bgColor=#e6efff style="BORDER-BOTTOM: #000000 1px solid">2,453 </TD>
    <TD align=left valign="bottom" bgColor=#e6efff style="BORDER-BOTTOM: #000000 1px solid">&nbsp;</TD>
    <TD align=left valign="bottom" bgColor=#e6efff style="BORDER-BOTTOM: #000000 1px solid">&nbsp;</TD>
    <TD
    align=right valign="bottom" bgColor=#e6efff style="BORDER-BOTTOM: #000000 1px solid">31,312 </TD>
  <TD align=left valign="bottom" bgColor=#e6efff style="BORDER-BOTTOM: #000000 1px solid">&nbsp;</TD>
  </TR>
  <TR>
    <TD valign="bottom">&nbsp; </TD>
    <TD valign="bottom">&nbsp;</TD>
    <TD align=center valign="bottom">&nbsp; </TD>
    <TD valign="bottom">&nbsp;</TD>
    <TD valign="bottom">&nbsp;</TD>
    <TD valign="bottom">&nbsp; </TD>
    <TD valign="bottom">&nbsp;</TD>
    <TD valign="bottom">&nbsp;</TD>
    <TD valign="bottom">&nbsp; </TD>
    <TD valign="bottom">&nbsp;</TD>
    <TD valign="bottom">&nbsp;</TD>
    <TD valign="bottom">&nbsp; </TD>
  <TD valign="bottom">&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left valign="bottom" bgColor=#e6efff><B>Earnings (loss) before income taxes</B>    </TD>
    <TD align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD align=center valign="bottom" bgColor=#e6efff>&nbsp; </TD>
    <TD align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD align=right valign="bottom" bgColor=#e6efff><B>369,536</B> </TD>
    <TD align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD align=right valign="bottom" bgColor=#e6efff>(17,501</TD>
    <TD align=left valign="bottom" bgColor=#e6efff>) </TD>
    <TD align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD align=right valign="bottom" bgColor=#e6efff>12,022 </TD>
  <TD align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
  </TR>
  <TR>
    <TD valign="bottom">&nbsp; </TD>
    <TD valign="bottom">&nbsp;</TD>
    <TD align=center valign="bottom">&nbsp; </TD>
    <TD valign="bottom">&nbsp;</TD>
    <TD valign="bottom">&nbsp;</TD>
    <TD valign="bottom">&nbsp; </TD>
    <TD valign="bottom">&nbsp;</TD>
    <TD valign="bottom">&nbsp;</TD>
    <TD valign="bottom">&nbsp; </TD>
    <TD valign="bottom">&nbsp;</TD>
    <TD valign="bottom">&nbsp;</TD>
    <TD valign="bottom">&nbsp; </TD>
  <TD valign="bottom">&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left valign="bottom" bgColor=#e6efff><B>Income tax recovery (expense):</B> </TD>
    <TD align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD align=center valign="bottom" bgColor=#e6efff>&nbsp; </TD>
    <TD align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD align=left valign="bottom" bgColor=#e6efff>&nbsp; </TD>
    <TD align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD align=left valign="bottom" bgColor=#e6efff>&nbsp; </TD>
    <TD align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD align=left valign="bottom" bgColor=#e6efff>&nbsp; </TD>
  <TD align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left valign="bottom">Current income taxes </TD>
    <TD align=left valign="bottom">&nbsp;</TD>
    <TD align=center valign="bottom">16 </TD>
    <TD align=left valign="bottom">&nbsp;</TD>
    <TD align=left valign="bottom">&nbsp;</TD>
    <TD align=right valign="bottom"><B>(2,600</B></TD>
    <TD align=left valign="bottom"><B>)</B> </TD>
    <TD align=left valign="bottom">&nbsp;</TD>
    <TD align=right valign="bottom">2,221 </TD>
    <TD align=left valign="bottom">&nbsp;</TD>
    <TD align=left valign="bottom">&nbsp;</TD>
    <TD align=right valign="bottom">(14,575</TD>
  <TD align=left valign="bottom">) </TD>
  </TR>
  <TR vAlign=top>
    <TD align=left valign="bottom" bgColor=#e6efff>Future income taxes </TD>
    <TD align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD align=center valign="bottom" bgColor=#e6efff>16 </TD>
    <TD align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD align=left valign="bottom" bgColor=#e6efff style="BORDER-BOTTOM: #000000 1px solid">&nbsp;</TD>
    <TD
    align=right valign="bottom" bgColor=#e6efff style="BORDER-BOTTOM: #000000 1px solid"><B>(20,697</B></TD>
    <TD align=left valign="bottom" bgColor=#e6efff style="BORDER-BOTTOM: #000000 1px solid"><B>)</B> </TD>
    <TD align=left valign="bottom" bgColor=#e6efff style="BORDER-BOTTOM: #000000 1px solid">&nbsp;</TD>
    <TD
    align=right valign="bottom" bgColor=#e6efff style="BORDER-BOTTOM: #000000 1px solid">2,087 </TD>
    <TD align=left valign="bottom" bgColor=#e6efff style="BORDER-BOTTOM: #000000 1px solid">&nbsp;</TD>
    <TD align=left valign="bottom" bgColor=#e6efff style="BORDER-BOTTOM: #000000 1px solid">&nbsp;</TD>
    <TD
    align=right valign="bottom" bgColor=#e6efff style="BORDER-BOTTOM: #000000 1px solid">(3,393</TD>
  <TD align=left valign="bottom" bgColor=#e6efff style="BORDER-BOTTOM: #000000 1px solid">) </TD>
  </TR>
  <TR>
    <TD valign="bottom">&nbsp; </TD>
    <TD valign="bottom">&nbsp;</TD>
    <TD align=center valign="bottom">&nbsp; </TD>
    <TD valign="bottom">&nbsp;</TD>
    <TD valign="bottom">&nbsp;</TD>
    <TD valign="bottom">&nbsp; </TD>
    <TD valign="bottom">&nbsp;</TD>
    <TD valign="bottom">&nbsp;</TD>
    <TD valign="bottom">&nbsp; </TD>
    <TD valign="bottom">&nbsp;</TD>
    <TD valign="bottom">&nbsp;</TD>
    <TD valign="bottom">&nbsp; </TD>
  <TD valign="bottom">&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left valign="bottom" bgColor=#e6efff>&nbsp; </TD>
    <TD align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD align=center valign="bottom" bgColor=#e6efff>&nbsp; </TD>
    <TD align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD align=left valign="bottom" bgColor=#e6efff style="BORDER-BOTTOM: #000000 1px solid">&nbsp;</TD>
    <TD
    align=right valign="bottom" bgColor=#e6efff style="BORDER-BOTTOM: #000000 1px solid"><B>(23,297</B></TD>
    <TD align=left valign="bottom" bgColor=#e6efff style="BORDER-BOTTOM: #000000 1px solid"><B>)</B> </TD>
    <TD align=left valign="bottom" bgColor=#e6efff style="BORDER-BOTTOM: #000000 1px solid">&nbsp;</TD>
    <TD
    align=right valign="bottom" bgColor=#e6efff style="BORDER-BOTTOM: #000000 1px solid">4,308 </TD>
    <TD align=left valign="bottom" bgColor=#e6efff style="BORDER-BOTTOM: #000000 1px solid">&nbsp;</TD>
    <TD align=left valign="bottom" bgColor=#e6efff style="BORDER-BOTTOM: #000000 1px solid">&nbsp;</TD>
    <TD
    align=right valign="bottom" bgColor=#e6efff style="BORDER-BOTTOM: #000000 1px solid">(17,968</TD>
  <TD align=left valign="bottom" bgColor=#e6efff style="BORDER-BOTTOM: #000000 1px solid">) </TD>
  </TR>
  <TR>
    <TD valign="bottom">&nbsp; </TD>
    <TD valign="bottom">&nbsp;</TD>
    <TD align=center valign="bottom">&nbsp; </TD>
    <TD valign="bottom">&nbsp;</TD>
    <TD valign="bottom">&nbsp;</TD>
    <TD valign="bottom">&nbsp; </TD>
    <TD valign="bottom">&nbsp;</TD>
    <TD valign="bottom">&nbsp;</TD>
    <TD valign="bottom">&nbsp; </TD>
    <TD valign="bottom">&nbsp;</TD>
    <TD valign="bottom">&nbsp;</TD>
    <TD valign="bottom">&nbsp; </TD>
  <TD valign="bottom">&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left valign="bottom" bgColor=#e6efff><B>Earnings (Loss) for the year</B> </TD>
    <TD align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD align=center valign="bottom" bgColor=#e6efff>&nbsp; </TD>
    <TD align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD align=left valign="bottom" bgColor=#e6efff style="BORDER-BOTTOM: #000000 1px solid">&nbsp;</TD>
    <TD
    align=right valign="bottom" bgColor=#e6efff style="BORDER-BOTTOM: #000000 1px solid"><B>346,239</B> </TD>
    <TD align=left valign="bottom" bgColor=#e6efff style="BORDER-BOTTOM: #000000 1px solid">&nbsp;</TD>
    <TD align=left valign="bottom" bgColor=#e6efff style="BORDER-BOTTOM: #000000 1px solid">&nbsp;</TD>
    <TD
    align=right valign="bottom" bgColor=#e6efff style="BORDER-BOTTOM: #000000 1px solid">(13,193</TD>
    <TD align=left valign="bottom" bgColor=#e6efff style="BORDER-BOTTOM: #000000 1px solid">) </TD>
    <TD align=left valign="bottom" bgColor=#e6efff style="BORDER-BOTTOM: #000000 1px solid">&nbsp;</TD>
    <TD
    align=right valign="bottom" bgColor=#e6efff style="BORDER-BOTTOM: #000000 1px solid">(5,946</TD>
  <TD align=left valign="bottom" bgColor=#e6efff style="BORDER-BOTTOM: #000000 1px solid">) </TD>
  </TR>
  <TR>
    <TD valign="bottom">&nbsp; </TD>
    <TD valign="bottom">&nbsp;</TD>
    <TD align=center valign="bottom">&nbsp; </TD>
    <TD valign="bottom">&nbsp;</TD>
    <TD valign="bottom">&nbsp;</TD>
    <TD valign="bottom">&nbsp; </TD>
    <TD valign="bottom">&nbsp;</TD>
    <TD valign="bottom">&nbsp;</TD>
    <TD valign="bottom">&nbsp; </TD>
    <TD valign="bottom">&nbsp;</TD>
    <TD valign="bottom">&nbsp;</TD>
    <TD valign="bottom">&nbsp; </TD>
  <TD valign="bottom">&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left valign="bottom" bgColor=#e6efff><B>Weighted average shares outstanding
      (thousands)</B> </TD>
    <TD align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD align=center valign="bottom" bgColor=#e6efff>&nbsp; </TD>
    <TD align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD align=left valign="bottom" bgColor=#e6efff>&nbsp; </TD>
    <TD align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD align=left valign="bottom" bgColor=#e6efff>&nbsp; </TD>
    <TD align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD align=left valign="bottom" bgColor=#e6efff>&nbsp; </TD>
  <TD align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left valign="bottom">&nbsp; &nbsp;Basic </TD>
    <TD align=left valign="bottom">&nbsp;</TD>
    <TD align=center valign="bottom">&nbsp; </TD>
    <TD align=left valign="bottom">&nbsp;</TD>
    <TD align=left valign="bottom">&nbsp;</TD>
    <TD align=right valign="bottom"><B>77,972</B> </TD>
    <TD align=left valign="bottom">&nbsp;</TD>
    <TD align=left valign="bottom">&nbsp;</TD>
    <TD align=right valign="bottom">68,845 </TD>
    <TD align=left valign="bottom">&nbsp;</TD>
    <TD align=left valign="bottom">&nbsp;</TD>
    <TD align=right valign="bottom">62,694 </TD>
  <TD align=left valign="bottom">&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left valign="bottom" bgColor=#e6efff>&nbsp; &nbsp;Diluted </TD>
    <TD align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD align=center valign="bottom" bgColor=#e6efff>&nbsp; </TD>
    <TD align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD align=right valign="bottom" bgColor=#e6efff><B>78,356</B> </TD>
    <TD align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD align=right valign="bottom" bgColor=#e6efff>68,845 </TD>
    <TD align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD align=right valign="bottom" bgColor=#e6efff>62,694 </TD>
  <TD align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
  </TR>
  <TR>
    <TD valign="bottom">&nbsp; </TD>
    <TD valign="bottom">&nbsp;</TD>
    <TD align=center valign="bottom">&nbsp; </TD>
    <TD valign="bottom">&nbsp;</TD>
    <TD valign="bottom">&nbsp;</TD>
    <TD valign="bottom">&nbsp; </TD>
    <TD valign="bottom">&nbsp;</TD>
    <TD valign="bottom">&nbsp;</TD>
    <TD valign="bottom">&nbsp; </TD>
    <TD valign="bottom">&nbsp;</TD>
    <TD valign="bottom">&nbsp;</TD>
    <TD valign="bottom">&nbsp; </TD>
  <TD valign="bottom">&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left valign="bottom" bgColor=#e6efff><B>Earnings (Loss) per share</B> </TD>
    <TD align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD align=center valign="bottom" bgColor=#e6efff>13d </TD>
    <TD align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD align=left valign="bottom" bgColor=#e6efff>&nbsp; </TD>
    <TD align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD align=left valign="bottom" bgColor=#e6efff>&nbsp; </TD>
    <TD align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD align=left valign="bottom" bgColor=#e6efff>&nbsp; </TD>
  <TD align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left valign="bottom">&nbsp; &nbsp;Basic </TD>
    <TD align=left valign="bottom">&nbsp;</TD>
    <TD align=center valign="bottom">&nbsp; </TD>
    <TD align=left valign="bottom">&nbsp;</TD>
    <TD align=left valign="bottom">&nbsp;</TD>
    <TD align=right valign="bottom"><B>4.44</B> </TD>
    <TD align=left valign="bottom">&nbsp;</TD>
    <TD align=left valign="bottom">&nbsp;</TD>
    <TD align=right valign="bottom">(0.19</TD>
    <TD align=left valign="bottom">) </TD>
    <TD align=left valign="bottom">&nbsp;</TD>
    <TD align=right valign="bottom">(0.09</TD>
  <TD align=left valign="bottom">) </TD>
  </TR>
  <TR vAlign=top>
    <TD align=left valign="bottom" bgColor=#e6efff>&nbsp; &nbsp;Diluted </TD>
    <TD align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD align=left valign="bottom" bgColor=#e6efff>&nbsp; </TD>
    <TD align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD align=right valign="bottom" bgColor=#e6efff><B>4.42</B> </TD>
    <TD align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD align=right valign="bottom" bgColor=#e6efff>(0.19</TD>
    <TD align=left valign="bottom" bgColor=#e6efff>) </TD>
    <TD align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD align=right valign="bottom" bgColor=#e6efff>(0.09</TD>
    <TD align=left valign="bottom" bgColor=#e6efff>)</TD>
  </TR></TABLE>
<P align=center>The accompanying notes are an integral part of the consolidated
financial statements</P>
<P align=right>2</P>
<HR style="PAGE-BREAK-AFTER: always" align=center color=black SIZE=5
width="100%" noShade>
<!--$$/page=--><A name=page_8></A><BR>
<TABLE
style="BORDER-COLOR: black; BORDER-COLLAPSE: collapse; FONT-SIZE: 10pt; "
border=0 cellSpacing=0 cellPadding=0 width="100%">

  <TR vAlign=top>
    <TD align=left><B>Silver Standard Resources Inc.</B> </TD></TR>
  <TR vAlign=top>
    <TD align=left>Consolidated Statements of Cash Flows </TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>For the years
      ended December 31, 2010, 2009 and 2008 </TD></TR>
  <TR vAlign=top>
    <TD align=left>(expressed in thousands of United States dollars)
  </TD></TR></TABLE><BR>
<TABLE
style="BORDER-COLOR: black; BORDER-COLLAPSE: collapse; FONT-SIZE: 10pt; "
border=0 cellSpacing=0 cellPadding=0 width="100%">

  <TR vAlign=top>
    <TD align=left valign="bottom">&nbsp; </TD>
    <TD  width="1%" align=left valign="bottom">&nbsp;</TD>
    <TD width="10%" align=center valign="bottom"><B>Note</B> </TD>
    <TD  width="2%" align=center valign="bottom">&nbsp;</TD>
    <TD  width="1%" align=left valign="bottom">&nbsp;</TD>
    <TD width="10%" align=right valign="bottom"><B>2010</B> </TD>
    <TD  width="2%" align=left valign="bottom">&nbsp;</TD>
    <TD  width="1%" align=left valign="bottom">&nbsp;</TD>
    <TD width="10%" align=right valign="bottom"><B>2009</B> </TD>
    <TD  width="2%" align=left valign="bottom">&nbsp;</TD>
    <TD  width="1%" align=left valign="bottom">&nbsp;</TD>
    <TD width="10%" align=right valign="bottom"><B>2008</B> </TD>
  <TD  width="2%" align=left valign="bottom">&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left valign="bottom">&nbsp; </TD>
    <TD align=left valign="bottom">&nbsp;</TD>
    <TD align=center valign="bottom">&nbsp; </TD>
    <TD align=center valign="bottom">&nbsp;</TD>
    <TD
    align=left valign="bottom" style="BORDER-BOTTOM: #000000 1px solid"><B></B></TD>
    <TD
      align=right valign="bottom" style="BORDER-BOTTOM: #000000 1px solid"><STRONG>$</STRONG>&nbsp;</TD>
    <TD
    align=left valign="bottom" style="BORDER-BOTTOM: #000000 1px solid">&nbsp;</TD>
    <TD
    align=left valign="bottom" style="BORDER-BOTTOM: #000000 1px solid"><B></B></TD>
    <TD
      align=right valign="bottom" style="BORDER-BOTTOM: #000000 1px solid"><STRONG>$</STRONG>&nbsp;</TD>
    <TD
    align=left valign="bottom" style="BORDER-BOTTOM: #000000 1px solid">&nbsp;</TD>
    <TD
    align=left valign="bottom" style="BORDER-BOTTOM: #000000 1px solid"><B></B></TD>
    <TD
      align=right valign="bottom" style="BORDER-BOTTOM: #000000 1px solid"><STRONG>$</STRONG>&nbsp;</TD>
  <TD
    align=left valign="bottom" style="BORDER-BOTTOM: #000000 1px solid">&nbsp;</TD>
  </TR>
  <TR>
    <TD valign="bottom">&nbsp; </TD>
    <TD valign="bottom">&nbsp;</TD>
    <TD align=center valign="bottom">&nbsp; </TD>
    <TD align=center valign="bottom">&nbsp;</TD>
    <TD valign="bottom">&nbsp;</TD>
    <TD valign="bottom">&nbsp; </TD>
    <TD valign="bottom">&nbsp;</TD>
    <TD valign="bottom">&nbsp;</TD>
    <TD valign="bottom">&nbsp; </TD>
    <TD valign="bottom">&nbsp;</TD>
    <TD valign="bottom">&nbsp;</TD>
    <TD valign="bottom">&nbsp; </TD>
  <TD valign="bottom">&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left valign="bottom" bgColor=#e6efff><B>Operating activities</B> </TD>
    <TD align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD align=center valign="bottom" bgColor=#e6efff>&nbsp; </TD>
    <TD align=center valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD align=left valign="bottom" bgColor=#e6efff>&nbsp; </TD>
    <TD align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD align=left valign="bottom" bgColor=#e6efff>&nbsp; </TD>
    <TD align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD align=left valign="bottom" bgColor=#e6efff>&nbsp; </TD>
  <TD align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left valign="bottom">Earnings (loss) for the year </TD>
    <TD align=left valign="bottom">&nbsp;</TD>
    <TD align=center valign="bottom">&nbsp; </TD>
    <TD align=center valign="bottom">&nbsp;</TD>
    <TD align=left valign="bottom">&nbsp;</TD>
    <TD align=right valign="bottom"><B>346,239</B> </TD>
    <TD align=left valign="bottom">&nbsp;</TD>
    <TD align=left valign="bottom">&nbsp;</TD>
    <TD align=right valign="bottom">(13,193</TD>
    <TD align=left valign="bottom">) </TD>
    <TD align=left valign="bottom">&nbsp;</TD>
    <TD align=right valign="bottom">(5,946</TD>
  <TD align=left valign="bottom">) </TD>
  </TR>
  <TR vAlign=top>
    <TD align=left valign="bottom" bgColor=#e6efff>&nbsp; &nbsp;Items not affecting cash </TD>
    <TD align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD align=center valign="bottom" bgColor=#e6efff>&nbsp; </TD>
    <TD align=center valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD align=left valign="bottom" bgColor=#e6efff>&nbsp; </TD>
    <TD align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD align=left valign="bottom" bgColor=#e6efff>&nbsp; </TD>
    <TD align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD align=left valign="bottom" bgColor=#e6efff>&nbsp; </TD>
  <TD align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left valign="bottom">&nbsp; &nbsp; &nbsp; &nbsp; &nbsp;Depletion, depreciation
      and amortization </TD>
    <TD align=left valign="bottom">&nbsp;</TD>
    <TD align=center valign="bottom">&nbsp; </TD>
    <TD align=center valign="bottom">&nbsp;</TD>
    <TD align=left valign="bottom">&nbsp;</TD>
    <TD align=right valign="bottom"><B>26,609</B> </TD>
    <TD align=left valign="bottom">&nbsp;</TD>
    <TD align=left valign="bottom">&nbsp;</TD>
    <TD align=right valign="bottom">2,268 </TD>
    <TD align=left valign="bottom">&nbsp;</TD>
    <TD align=left valign="bottom">&nbsp;</TD>
    <TD align=right valign="bottom">288 </TD>
  <TD align=left valign="bottom">&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left valign="bottom" bgColor=#e6efff>&nbsp; &nbsp; &nbsp; &nbsp;
      &nbsp;Stock-based compensation </TD>
    <TD align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD align=center valign="bottom" bgColor=#e6efff>&nbsp; </TD>
    <TD align=center valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD align=right valign="bottom" bgColor=#e6efff><B>8,868</B> </TD>
    <TD align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD align=right valign="bottom" bgColor=#e6efff>6,319 </TD>
    <TD align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD align=right valign="bottom" bgColor=#e6efff>9,601 </TD>
  <TD align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left valign="bottom">&nbsp; &nbsp; &nbsp; &nbsp; &nbsp;Asset retirement
      obligations accretion </TD>
    <TD align=left valign="bottom">&nbsp;</TD>
    <TD align=center valign="bottom">&nbsp; </TD>
    <TD align=center valign="bottom">&nbsp;</TD>
    <TD align=left valign="bottom">&nbsp;</TD>
    <TD align=right valign="bottom"><B>1,503</B> </TD>
    <TD align=left valign="bottom">&nbsp;</TD>
    <TD align=left valign="bottom">&nbsp;</TD>
    <TD align=right valign="bottom">346 </TD>
    <TD align=left valign="bottom">&nbsp;</TD>
    <TD align=left valign="bottom">&nbsp;</TD>
    <TD align=right valign="bottom">335 </TD>
  <TD align=left valign="bottom">&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left valign="bottom" bgColor=#e6efff>&nbsp;&nbsp; Gain on sale of mineral
      properties and property, plant and equipment </TD>
    <TD align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD align=center valign="bottom" bgColor=#e6efff>10 </TD>
    <TD align=center valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD align=right valign="bottom" bgColor=#e6efff><B>(402,009</B></TD>
    <TD align=left valign="bottom" bgColor=#e6efff><B>)</B> </TD>
    <TD align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD align=right valign="bottom" bgColor=#e6efff>(167</TD>
    <TD align=left valign="bottom" bgColor=#e6efff>) </TD>
    <TD align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD align=right valign="bottom" bgColor=#e6efff>(31,463</TD>
  <TD align=left valign="bottom" bgColor=#e6efff>) </TD>
  </TR>
  <TR vAlign=top>
    <TD align=left valign="bottom">&nbsp; &nbsp; &nbsp; &nbsp; &nbsp;Loss (gain) on sale of
      investments and assets </TD>
    <TD align=left valign="bottom">&nbsp;</TD>
    <TD align=center valign="bottom">&nbsp; </TD>
    <TD align=center valign="bottom">&nbsp;</TD>
    <TD align=left valign="bottom">&nbsp;</TD>
    <TD align=right valign="bottom"><B>(3,114</B></TD>
    <TD align=left valign="bottom"><B>)</B> </TD>
    <TD align=left valign="bottom">&nbsp;</TD>
    <TD align=right valign="bottom">1,279 </TD>
    <TD align=left valign="bottom">&nbsp;</TD>
    <TD align=left valign="bottom">&nbsp;</TD>
    <TD align=right valign="bottom">(25,789</TD>
  <TD align=left valign="bottom">) </TD>
  </TR>
  <TR vAlign=top>
    <TD align=left valign="bottom" bgColor=#e6efff>&nbsp; &nbsp; &nbsp; &nbsp;
      &nbsp;Unrealized (gain) loss on held-for-trading financial instruments </TD>
    <TD align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD align=center valign="bottom" bgColor=#e6efff>&nbsp; </TD>
    <TD align=center valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD align=right valign="bottom" bgColor=#e6efff><B>102</B> </TD>
    <TD align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD align=right valign="bottom" bgColor=#e6efff>(412</TD>
    <TD align=left valign="bottom" bgColor=#e6efff>) </TD>
    <TD align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD align=right valign="bottom" bgColor=#e6efff>(114</TD>
  <TD align=left valign="bottom" bgColor=#e6efff>) </TD>
  </TR>
  <TR vAlign=top>
    <TD align=left valign="bottom">&nbsp; &nbsp; &nbsp; &nbsp; &nbsp;Accretion expense on
      convertible notes </TD>
    <TD align=left valign="bottom">&nbsp;</TD>
    <TD align=center valign="bottom">&nbsp; </TD>
    <TD align=center valign="bottom">&nbsp;</TD>
    <TD align=left valign="bottom">&nbsp;</TD>
    <TD align=right valign="bottom"><B>7,464</B> </TD>
    <TD align=left valign="bottom">&nbsp;</TD>
    <TD align=left valign="bottom">&nbsp;</TD>
    <TD align=right valign="bottom">571 </TD>
    <TD align=left valign="bottom">&nbsp;</TD>
    <TD align=left valign="bottom">&nbsp;</TD>
    <TD align=right valign="bottom">1,283 </TD>
  <TD align=left valign="bottom">&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left valign="bottom" bgColor=#e6efff>&nbsp; &nbsp; &nbsp; &nbsp; &nbsp;Accrued
      interest on convertible debenture </TD>
    <TD align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD align=center valign="bottom" bgColor=#e6efff>&nbsp; </TD>
    <TD align=center valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD align=right valign="bottom" bgColor=#e6efff><B>(865</B></TD>
    <TD align=left valign="bottom" bgColor=#e6efff><B>)</B> </TD>
    <TD align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD align=right valign="bottom" bgColor=#e6efff>(703</TD>
    <TD align=left valign="bottom" bgColor=#e6efff>) </TD>
    <TD align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD align=right valign="bottom" bgColor=#e6efff>(339</TD>
  <TD align=left valign="bottom" bgColor=#e6efff>) </TD>
  </TR>
  <TR vAlign=top>
    <TD align=left valign="bottom">&nbsp; &nbsp; &nbsp; &nbsp; &nbsp;Write-down of mineral
      properties </TD>
    <TD align=left valign="bottom">&nbsp;</TD>
    <TD align=center valign="bottom">&nbsp; </TD>
    <TD align=center valign="bottom">&nbsp;</TD>
    <TD align=left valign="bottom">&nbsp;</TD>
    <TD align=right valign="bottom"><B>238</B> </TD>
    <TD align=left valign="bottom">&nbsp;</TD>
    <TD align=left valign="bottom">&nbsp;</TD>
    <TD align=right valign="bottom">377 </TD>
    <TD align=left valign="bottom">&nbsp;</TD>
    <TD align=left valign="bottom">&nbsp;</TD>
    <TD align=right valign="bottom">- </TD>
  <TD align=left valign="bottom">&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left valign="bottom" bgColor=#e6efff>&nbsp; &nbsp; &nbsp; &nbsp;
      &nbsp;Write-down of investments and convertible debenture </TD>
    <TD align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD align=center valign="bottom" bgColor=#e6efff>&nbsp; </TD>
    <TD align=center valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD align=right valign="bottom" bgColor=#e6efff><B>-</B> </TD>
    <TD align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD align=right valign="bottom" bgColor=#e6efff>4,115 </TD>
    <TD align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD align=right valign="bottom" bgColor=#e6efff>22,794 </TD>
  <TD align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left valign="bottom">&nbsp; &nbsp; &nbsp; &nbsp; &nbsp;Share of loss of equity
      investee </TD>
    <TD align=left valign="bottom">&nbsp;</TD>
    <TD align=center valign="bottom">&nbsp; </TD>
    <TD align=center valign="bottom">&nbsp;</TD>
    <TD align=left valign="bottom">&nbsp;</TD>
    <TD align=right valign="bottom"><B>77</B> </TD>
    <TD align=left valign="bottom">&nbsp;</TD>
    <TD align=left valign="bottom">&nbsp;</TD>
    <TD align=right valign="bottom">- </TD>
    <TD align=left valign="bottom">&nbsp;</TD>
    <TD align=left valign="bottom">&nbsp;</TD>
    <TD align=right valign="bottom">- </TD>
  <TD align=left valign="bottom">&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left valign="bottom" bgColor=#e6efff>&nbsp; &nbsp; &nbsp; &nbsp; &nbsp;Future
      income tax (recovery) expense </TD>
    <TD align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD align=center valign="bottom" bgColor=#e6efff>&nbsp; </TD>
    <TD align=center valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD align=right valign="bottom" bgColor=#e6efff><B>17,650</B> </TD>
    <TD align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD align=right valign="bottom" bgColor=#e6efff>(2,087</TD>
    <TD align=left valign="bottom" bgColor=#e6efff>) </TD>
    <TD align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD align=right valign="bottom" bgColor=#e6efff>3,393 </TD>
  <TD align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left valign="bottom">&nbsp; &nbsp; &nbsp; &nbsp; &nbsp;Increase in non-current
      taxes payable </TD>
    <TD align=left valign="bottom">&nbsp;</TD>
    <TD align=center valign="bottom">&nbsp; </TD>
    <TD align=center valign="bottom">&nbsp;</TD>
    <TD align=left valign="bottom">&nbsp;</TD>
    <TD align=right valign="bottom"><B>-</B> </TD>
    <TD align=left valign="bottom">&nbsp;</TD>
    <TD align=left valign="bottom">&nbsp;</TD>
    <TD align=right valign="bottom">- </TD>
    <TD align=left valign="bottom">&nbsp;</TD>
    <TD align=left valign="bottom">&nbsp;</TD>
    <TD align=right valign="bottom">3,180 </TD>
  <TD align=left valign="bottom">&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left valign="bottom" bgColor=#e6efff>&nbsp; &nbsp; &nbsp; &nbsp; &nbsp;Foreign
      exchange (gain) loss </TD>
    <TD align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD align=center valign="bottom" bgColor=#e6efff>&nbsp; </TD>
    <TD align=center valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD align=right valign="bottom" bgColor=#e6efff><B>2,325</B> </TD>
    <TD align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD align=right valign="bottom" bgColor=#e6efff>(3,653</TD>
    <TD align=left valign="bottom" bgColor=#e6efff>) </TD>
    <TD align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD align=right valign="bottom" bgColor=#e6efff>(9,163</TD>
  <TD align=left valign="bottom" bgColor=#e6efff>) </TD>
  </TR>
  <TR vAlign=top>
    <TD align=left valign="bottom">Increase (decrease) in non-cash working capital items </TD>
    <TD align=left valign="bottom">&nbsp;</TD>
    <TD align=center valign="bottom">17 </TD>
    <TD align=center valign="bottom">&nbsp;</TD>
    <TD
    align=left valign="bottom" style="BORDER-BOTTOM: #000000 1px solid">&nbsp;</TD>
    <TD
      align=right valign="bottom" style="BORDER-BOTTOM: #000000 1px solid"><B>(16,197</B></TD>
    <TD
    align=left valign="bottom" style="BORDER-BOTTOM: #000000 1px solid"><B>)</B> </TD>
    <TD
    align=left valign="bottom" style="BORDER-BOTTOM: #000000 1px solid">&nbsp;</TD>
    <TD
      align=right valign="bottom" style="BORDER-BOTTOM: #000000 1px solid">(35,003</TD>
    <TD
    align=left valign="bottom" style="BORDER-BOTTOM: #000000 1px solid">) </TD>
    <TD
    align=left valign="bottom" style="BORDER-BOTTOM: #000000 1px solid">&nbsp;</TD>
    <TD
      align=right valign="bottom" style="BORDER-BOTTOM: #000000 1px solid">12,847 </TD>
  <TD
    align=left valign="bottom" style="BORDER-BOTTOM: #000000 1px solid">&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left valign="bottom" bgColor=#e6efff><B>Cash used in operating activities</B></TD>
    <TD align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD align=center valign="bottom" bgColor=#e6efff>&nbsp; </TD>
    <TD align=center valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD align=left valign="bottom" bgColor=#e6efff style="BORDER-BOTTOM: #000000 1px solid">&nbsp;</TD>
    <TD
    align=right valign="bottom" bgColor=#e6efff style="BORDER-BOTTOM: #000000 1px solid"><B>(11,110</B></TD>
    <TD align=left valign="bottom" bgColor=#e6efff style="BORDER-BOTTOM: #000000 1px solid"><B>)</B> </TD>
    <TD align=left valign="bottom" bgColor=#e6efff style="BORDER-BOTTOM: #000000 1px solid">&nbsp;</TD>
    <TD
    align=right valign="bottom" bgColor=#e6efff style="BORDER-BOTTOM: #000000 1px solid">(39,943</TD>
    <TD align=left valign="bottom" bgColor=#e6efff style="BORDER-BOTTOM: #000000 1px solid">) </TD>
    <TD align=left valign="bottom" bgColor=#e6efff style="BORDER-BOTTOM: #000000 1px solid">&nbsp;</TD>
    <TD
    align=right valign="bottom" bgColor=#e6efff style="BORDER-BOTTOM: #000000 1px solid">(19,093</TD>
  <TD align=left valign="bottom" bgColor=#e6efff style="BORDER-BOTTOM: #000000 1px solid">) </TD>
  </TR>
  <TR>
    <TD valign="bottom">&nbsp; </TD>
    <TD valign="bottom">&nbsp;</TD>
    <TD align=center valign="bottom">&nbsp; </TD>
    <TD align=center valign="bottom">&nbsp;</TD>
    <TD valign="bottom">&nbsp;</TD>
    <TD valign="bottom">&nbsp; </TD>
    <TD valign="bottom">&nbsp;</TD>
    <TD valign="bottom">&nbsp;</TD>
    <TD valign="bottom">&nbsp; </TD>
    <TD valign="bottom">&nbsp;</TD>
    <TD valign="bottom">&nbsp;</TD>
    <TD valign="bottom">&nbsp; </TD>
  <TD valign="bottom">&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left valign="bottom" bgColor=#e6efff><B>Financing activities</B> </TD>
    <TD align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD align=center valign="bottom" bgColor=#e6efff>&nbsp; </TD>
    <TD align=center valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD align=left valign="bottom" bgColor=#e6efff>&nbsp; </TD>
    <TD align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD align=left valign="bottom" bgColor=#e6efff>&nbsp; </TD>
    <TD align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD align=left valign="bottom" bgColor=#e6efff>&nbsp; </TD>
  <TD align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left valign="bottom">Shares issued for cash </TD>
    <TD align=left valign="bottom">&nbsp;</TD>
    <TD align=center valign="bottom">&nbsp; </TD>
    <TD align=center valign="bottom">&nbsp;</TD>
    <TD align=left valign="bottom">&nbsp;</TD>
    <TD align=right valign="bottom"><B>130,707</B> </TD>
    <TD align=left valign="bottom">&nbsp;</TD>
    <TD align=left valign="bottom">&nbsp;</TD>
    <TD align=right valign="bottom">155,578 </TD>
    <TD align=left valign="bottom">&nbsp;</TD>
    <TD align=left valign="bottom">&nbsp;</TD>
    <TD align=right valign="bottom">2,192 </TD>
  <TD align=left valign="bottom">&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left valign="bottom" bgColor=#e6efff>Share issue cash costs </TD>
    <TD align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD align=center valign="bottom" bgColor=#e6efff>&nbsp; </TD>
    <TD align=center valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD align=right valign="bottom" bgColor=#e6efff><B>(6,631</B></TD>
    <TD align=left valign="bottom" bgColor=#e6efff><B>)</B> </TD>
    <TD align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD align=right valign="bottom" bgColor=#e6efff>(9,165</TD>
    <TD align=left valign="bottom" bgColor=#e6efff>) </TD>
    <TD align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD align=right valign="bottom" bgColor=#e6efff>- </TD>
  <TD align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left valign="bottom">Proceeds from issuance of convertible notes </TD>
    <TD align=left valign="bottom">&nbsp;</TD>
    <TD align=center valign="bottom">&nbsp; </TD>
    <TD align=center valign="bottom">&nbsp;</TD>
    <TD align=left valign="bottom">&nbsp;</TD>
    <TD align=right valign="bottom"><B>-</B> </TD>
    <TD align=left valign="bottom">&nbsp;</TD>
    <TD align=left valign="bottom">&nbsp;</TD>
    <TD align=right valign="bottom">- </TD>
    <TD align=left valign="bottom">&nbsp;</TD>
    <TD align=left valign="bottom">&nbsp;</TD>
    <TD align=right valign="bottom">138,000 </TD>
  <TD align=left valign="bottom">&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left valign="bottom" bgColor=#e6efff>Financing costs related to equity portion
      of convertible notes financing </TD>
    <TD align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD align=center valign="bottom" bgColor=#e6efff></TD>
    <TD align=center valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD align=left valign="bottom" bgColor=#e6efff style="BORDER-BOTTOM: #000000 1px solid">&nbsp;</TD>
    <TD
    align=right valign="bottom" bgColor=#e6efff style="BORDER-BOTTOM: #000000 1px solid"><B>-</B> </TD>
    <TD align=left valign="bottom" bgColor=#e6efff style="BORDER-BOTTOM: #000000 1px solid">&nbsp;</TD>
    <TD align=left valign="bottom" bgColor=#e6efff style="BORDER-BOTTOM: #000000 1px solid">&nbsp;</TD>
    <TD
    align=right valign="bottom" bgColor=#e6efff style="BORDER-BOTTOM: #000000 1px solid">- </TD>
    <TD align=left valign="bottom" bgColor=#e6efff style="BORDER-BOTTOM: #000000 1px solid">&nbsp;</TD>
    <TD align=left valign="bottom" bgColor=#e6efff style="BORDER-BOTTOM: #000000 1px solid">&nbsp;</TD>
    <TD
    align=right valign="bottom" bgColor=#e6efff style="BORDER-BOTTOM: #000000 1px solid">(1,473</TD>
  <TD align=left valign="bottom" bgColor=#e6efff style="BORDER-BOTTOM: #000000 1px solid">) </TD>
  </TR>
  <TR vAlign=top>
    <TD align=left valign="bottom"><B>Cash generated by financing activities</B> </TD>
    <TD align=left valign="bottom">&nbsp;</TD>
    <TD align=center valign="bottom">&nbsp; </TD>
    <TD align=center valign="bottom">&nbsp;</TD>
    <TD
    align=left valign="bottom" style="BORDER-BOTTOM: #000000 1px solid">&nbsp;</TD>
    <TD
      align=right valign="bottom" style="BORDER-BOTTOM: #000000 1px solid"><B>124,076</B> </TD>
    <TD
    align=left valign="bottom" style="BORDER-BOTTOM: #000000 1px solid">&nbsp;</TD>
    <TD
    align=left valign="bottom" style="BORDER-BOTTOM: #000000 1px solid">&nbsp;</TD>
    <TD
      align=right valign="bottom" style="BORDER-BOTTOM: #000000 1px solid">146,413 </TD>
    <TD
    align=left valign="bottom" style="BORDER-BOTTOM: #000000 1px solid">&nbsp;</TD>
    <TD
    align=left valign="bottom" style="BORDER-BOTTOM: #000000 1px solid">&nbsp;</TD>
    <TD
      align=right valign="bottom" style="BORDER-BOTTOM: #000000 1px solid">138,719 </TD>
  <TD
    align=left valign="bottom" style="BORDER-BOTTOM: #000000 1px solid">&nbsp;</TD>
  </TR>
  <TR>
    <TD valign="bottom" bgColor=#e6efff>&nbsp; </TD>
    <TD valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD align=center valign="bottom" bgColor=#e6efff>&nbsp; </TD>
    <TD align=center valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD valign="bottom" bgColor=#e6efff>&nbsp; </TD>
    <TD valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD valign="bottom" bgColor=#e6efff>&nbsp; </TD>
    <TD valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD valign="bottom" bgColor=#e6efff>&nbsp; </TD>
  <TD valign="bottom" bgColor=#e6efff>&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left valign="bottom"><B>Investing activities</B> </TD>
    <TD align=left valign="bottom">&nbsp;</TD>
    <TD align=left valign="bottom">&nbsp; </TD>
    <TD align=left valign="bottom">&nbsp;</TD>
    <TD align=left valign="bottom">&nbsp;</TD>
    <TD align=left valign="bottom">&nbsp; </TD>
    <TD align=left valign="bottom">&nbsp;</TD>
    <TD align=left valign="bottom">&nbsp;</TD>
    <TD align=left valign="bottom">&nbsp; </TD>
    <TD align=left valign="bottom">&nbsp;</TD>
    <TD align=left valign="bottom">&nbsp;</TD>
    <TD align=left valign="bottom">&nbsp; </TD>
  <TD align=left valign="bottom">&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left valign="bottom" bgColor=#e6efff>Expenditures on mineral properties </TD>
    <TD align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD align=left valign="bottom" bgColor=#e6efff>&nbsp; </TD>
    <TD align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD align=right valign="bottom" bgColor=#e6efff><B>(52,912</B></TD>
    <TD align=left valign="bottom" bgColor=#e6efff><B>)</B> </TD>
    <TD align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD align=right valign="bottom" bgColor=#e6efff>(25,157</TD>
    <TD align=left valign="bottom" bgColor=#e6efff>) </TD>
    <TD align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD align=right valign="bottom" bgColor=#e6efff>(36,756</TD>
  <TD align=left valign="bottom" bgColor=#e6efff>) </TD>
  </TR>
  <TR vAlign=top>
    <TD align=left valign="bottom">Settlement of payables for property, plant and equipment</TD>
    <TD align=left valign="bottom">&nbsp;</TD>
    <TD align=left valign="bottom">&nbsp; </TD>
    <TD align=left valign="bottom">&nbsp;</TD>
    <TD align=left valign="bottom">&nbsp;</TD>
    <TD align=right valign="bottom"><B>(50,564</B></TD>
    <TD align=left valign="bottom"><B>)</B> </TD>
    <TD align=left valign="bottom">&nbsp;</TD>
    <TD align=right valign="bottom">(127,037</TD>
    <TD align=left valign="bottom">) </TD>
    <TD align=left valign="bottom">&nbsp;</TD>
    <TD align=right valign="bottom">(132,919</TD>
  <TD align=left valign="bottom">) </TD>
  </TR>
  <TR vAlign=top>
    <TD align=left valign="bottom" bgColor=#e6efff>Increase in value added tax recoverable
      (net) </TD>
    <TD align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD align=left valign="bottom" bgColor=#e6efff>&nbsp; </TD>
    <TD align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD align=right valign="bottom" bgColor=#e6efff><B>(19,344</B></TD>
    <TD align=left valign="bottom" bgColor=#e6efff><B>)</B> </TD>
    <TD align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD align=right valign="bottom" bgColor=#e6efff>(23,763</TD>
    <TD align=left valign="bottom" bgColor=#e6efff>) </TD>
    <TD align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD align=right valign="bottom" bgColor=#e6efff>(24,401</TD>
  <TD align=left valign="bottom" bgColor=#e6efff>) </TD>
  </TR>
  <TR vAlign=top>
    <TD align=left valign="bottom">Proceeds from sale of marketable securities and other
      investments </TD>
    <TD align=left valign="bottom">&nbsp;</TD>
    <TD align=left valign="bottom"></TD>
    <TD align=left valign="bottom">&nbsp;</TD>
    <TD align=left valign="bottom">&nbsp;</TD>
    <TD align=right valign="bottom"><B>11,015</B> </TD>
    <TD align=left valign="bottom">&nbsp;</TD>
    <TD align=left valign="bottom">&nbsp;</TD>
    <TD align=right valign="bottom">24,133 </TD>
    <TD align=left valign="bottom">&nbsp;</TD>
    <TD align=left valign="bottom">&nbsp;</TD>
    <TD align=right valign="bottom">2,780 </TD>
  <TD align=left valign="bottom">&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left valign="bottom" bgColor=#e6efff>Proceeds from sale of silver bullion </TD>
    <TD align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD align=left valign="bottom" bgColor=#e6efff>&nbsp; </TD>
    <TD align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD align=right valign="bottom" bgColor=#e6efff><B>-</B> </TD>
    <TD align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD align=right valign="bottom" bgColor=#e6efff>- </TD>
    <TD align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD align=right valign="bottom" bgColor=#e6efff>39,648 </TD>
  <TD align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left valign="bottom">Net proceeds from sale of mineral properties </TD>
    <TD align=left valign="bottom">&nbsp;</TD>
    <TD align=left valign="bottom">&nbsp; </TD>
    <TD align=left valign="bottom">&nbsp;</TD>
    <TD
    align=left valign="bottom" style="BORDER-BOTTOM: #000000 1px solid">&nbsp;</TD>
    <TD
      align=right valign="bottom" style="BORDER-BOTTOM: #000000 1px solid"><B>204,491</B> </TD>
    <TD
    align=left valign="bottom" style="BORDER-BOTTOM: #000000 1px solid">&nbsp;</TD>
    <TD
    align=left valign="bottom" style="BORDER-BOTTOM: #000000 1px solid">&nbsp;</TD>
    <TD align=right valign="bottom" style="BORDER-BOTTOM: #000000 1px solid">- </TD>
    <TD
    align=left valign="bottom" style="BORDER-BOTTOM: #000000 1px solid">&nbsp;</TD>
    <TD
    align=left valign="bottom" style="BORDER-BOTTOM: #000000 1px solid">&nbsp;</TD>
    <TD
      align=right valign="bottom" style="BORDER-BOTTOM: #000000 1px solid">22,435 </TD>
  <TD
    align=left valign="bottom" style="BORDER-BOTTOM: #000000 1px solid">&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left valign="bottom" bgColor=#e6efff><B>Cash generated (used in) investing
      activities</B> </TD>
    <TD align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD align=left valign="bottom" bgColor=#e6efff>&nbsp; </TD>
    <TD align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD align=left valign="bottom" bgColor=#e6efff style="BORDER-BOTTOM: #000000 1px solid">&nbsp;</TD>
    <TD
    align=right valign="bottom" bgColor=#e6efff style="BORDER-BOTTOM: #000000 1px solid"><B>92,686</B> </TD>
    <TD align=left valign="bottom" bgColor=#e6efff style="BORDER-BOTTOM: #000000 1px solid">&nbsp;</TD>
    <TD align=left valign="bottom" bgColor=#e6efff style="BORDER-BOTTOM: #000000 1px solid">&nbsp;</TD>
    <TD
    align=right valign="bottom" bgColor=#e6efff style="BORDER-BOTTOM: #000000 1px solid">(151,824</TD>
    <TD align=left valign="bottom" bgColor=#e6efff style="BORDER-BOTTOM: #000000 1px solid">) </TD>
    <TD align=left valign="bottom" bgColor=#e6efff style="BORDER-BOTTOM: #000000 1px solid">&nbsp;</TD>
    <TD
    align=right valign="bottom" bgColor=#e6efff style="BORDER-BOTTOM: #000000 1px solid">(129,213</TD>
  <TD align=left valign="bottom" bgColor=#e6efff style="BORDER-BOTTOM: #000000 1px solid">) </TD>
  </TR>
  <TR>
    <TD valign="bottom">&nbsp; </TD>
    <TD valign="bottom">&nbsp;</TD>
    <TD valign="bottom">&nbsp; </TD>
    <TD valign="bottom">&nbsp;</TD>
    <TD valign="bottom">&nbsp;</TD>
    <TD valign="bottom">&nbsp; </TD>
    <TD valign="bottom">&nbsp;</TD>
    <TD valign="bottom">&nbsp;</TD>
    <TD valign="bottom">&nbsp; </TD>
    <TD valign="bottom">&nbsp;</TD>
    <TD valign="bottom">&nbsp;</TD>
    <TD valign="bottom">&nbsp; </TD>
  <TD valign="bottom">&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left valign="bottom" bgColor=#e6efff><B>Increase (decrease) in cash and cash
      equivalents</B> </TD>
    <TD align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD align=left valign="bottom" bgColor=#e6efff>&nbsp; </TD>
    <TD align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD align=right valign="bottom" bgColor=#e6efff><B>205,652</B> </TD>
    <TD align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD align=right valign="bottom" bgColor=#e6efff>(45,354</TD>
    <TD align=left valign="bottom" bgColor=#e6efff>) </TD>
    <TD align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD align=right valign="bottom" bgColor=#e6efff>(9,587</TD>
  <TD align=left valign="bottom" bgColor=#e6efff>) </TD>
  </TR>
  <TR>
    <TD valign="bottom">&nbsp; </TD>
    <TD valign="bottom">&nbsp;</TD>
    <TD valign="bottom">&nbsp; </TD>
    <TD valign="bottom">&nbsp;</TD>
    <TD valign="bottom">&nbsp;</TD>
    <TD valign="bottom">&nbsp; </TD>
    <TD valign="bottom">&nbsp;</TD>
    <TD valign="bottom">&nbsp;</TD>
    <TD valign="bottom">&nbsp; </TD>
    <TD valign="bottom">&nbsp;</TD>
    <TD valign="bottom">&nbsp;</TD>
    <TD valign="bottom">&nbsp; </TD>
  <TD valign="bottom">&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left valign="bottom" bgColor=#e6efff><B>Cash and cash equivalents - Beginning of
      year</B> </TD>
    <TD align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD align=left valign="bottom" bgColor=#e6efff>&nbsp; </TD>
    <TD align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD align=left valign="bottom" bgColor=#e6efff style="BORDER-BOTTOM: #000000 1px solid">&nbsp;</TD>
    <TD
    align=right valign="bottom" bgColor=#e6efff style="BORDER-BOTTOM: #000000 1px solid"><B>26,659</B> </TD>
    <TD align=left valign="bottom" bgColor=#e6efff style="BORDER-BOTTOM: #000000 1px solid">&nbsp;</TD>
    <TD align=left valign="bottom" bgColor=#e6efff style="BORDER-BOTTOM: #000000 1px solid">&nbsp;</TD>
    <TD
    align=right valign="bottom" bgColor=#e6efff style="BORDER-BOTTOM: #000000 1px solid">72,013 </TD>
    <TD align=left valign="bottom" bgColor=#e6efff style="BORDER-BOTTOM: #000000 1px solid">&nbsp;</TD>
    <TD align=left valign="bottom" bgColor=#e6efff style="BORDER-BOTTOM: #000000 1px solid">&nbsp;</TD>
    <TD
    align=right valign="bottom" bgColor=#e6efff style="BORDER-BOTTOM: #000000 1px solid">81,600 </TD>
  <TD align=left valign="bottom" bgColor=#e6efff style="BORDER-BOTTOM: #000000 1px solid">&nbsp;</TD>
  </TR>
  <TR>
    <TD valign="bottom">&nbsp; </TD>
    <TD valign="bottom">&nbsp;</TD>
    <TD valign="bottom">&nbsp; </TD>
    <TD valign="bottom">&nbsp;</TD>
    <TD valign="bottom">&nbsp;</TD>
    <TD valign="bottom">&nbsp; </TD>
    <TD valign="bottom">&nbsp;</TD>
    <TD valign="bottom">&nbsp;</TD>
    <TD valign="bottom">&nbsp; </TD>
    <TD valign="bottom">&nbsp;</TD>
    <TD valign="bottom">&nbsp;</TD>
    <TD valign="bottom">&nbsp; </TD>
  <TD valign="bottom">&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left valign="bottom" bgColor=#e6efff><B>Cash and cash equivalents - End of
      year</B> </TD>
    <TD align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD align=left valign="bottom" bgColor=#e6efff>&nbsp; </TD>
    <TD align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD align=left valign="bottom" bgColor=#e6efff style="BORDER-BOTTOM: #000000 2px solid">&nbsp;</TD>
    <TD
    align=right valign="bottom" bgColor=#e6efff style="BORDER-BOTTOM: #000000 2px solid"><B>232,311</B> </TD>
    <TD align=left valign="bottom" bgColor=#e6efff style="BORDER-BOTTOM: #000000 2px solid">&nbsp;</TD>
    <TD align=left valign="bottom" bgColor=#e6efff style="BORDER-BOTTOM: #000000 2px solid">&nbsp;</TD>
    <TD
    align=right valign="bottom" bgColor=#e6efff style="BORDER-BOTTOM: #000000 2px solid">26,659 </TD>
    <TD align=left valign="bottom" bgColor=#e6efff style="BORDER-BOTTOM: #000000 2px solid">&nbsp;</TD>
    <TD align=left valign="bottom" bgColor=#e6efff style="BORDER-BOTTOM: #000000 2px solid">&nbsp;</TD>
    <TD
    align=right valign="bottom" bgColor=#e6efff style="BORDER-BOTTOM: #000000 2px solid">72,013 </TD>
  <TD align=left valign="bottom" bgColor=#e6efff style="BORDER-BOTTOM: #000000 2px solid">&nbsp;</TD>
  </TR></TABLE>
<P align=justify><B>Supplementary cash flow information</B> (note 17)</P>
<P align=center>The accompanying notes are an integral part of the consolidated
financial statements</P>
<P align=right>3</P>
<HR style="PAGE-BREAK-AFTER: always" align=center color=black SIZE=5
width="100%" noShade>
<!--$$/page=--><A name=page_9></A><BR>
<TABLE
style="BORDER-COLOR: black; BORDER-COLLAPSE: collapse; FONT-SIZE: 10pt; "
border=0 cellSpacing=0 cellPadding=0 width="100%">

  <TR vAlign=top>
    <TD align=left><B>Silver Standard Resources Inc.</B> </TD></TR>
  <TR vAlign=top>
    <TD align=left>Consolidated Statements of Comprehensive Income (Loss)
  </TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>For the years
      ended December 31, 2010, 2009 and 2008 </TD></TR>
  <TR vAlign=top>
    <TD align=left>(expressed in thousands of United States dollars)
  </TD></TR></TABLE><BR>
<TABLE
style="BORDER-COLOR: black; BORDER-COLLAPSE: collapse; FONT-SIZE: 10pt; "
border=0 cellSpacing=0 cellPadding=0 width="100%">

  <TR vAlign=top>
    <TD align=left>&nbsp; </TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="10%" align=center><B>Note</B> </TD>
    <TD  width="2%" align=left>&nbsp;</TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="10%" align=right><B>2010</B> </TD>
    <TD  width="2%" align=left>&nbsp;</TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="10%" align=right><B>2009</B> </TD>
    <TD  width="2%" align=left>&nbsp;</TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="10%" align=right><B>2008</B> </TD>
    <TD  width="2%" align=left>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left>&nbsp; </TD>
    <TD align=left>&nbsp;</TD>
    <TD align=center>&nbsp; </TD>
    <TD align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"
    align=left></TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"
      align=right><STRONG>$</STRONG>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"
    align=left><B></B></TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"
      align=right><STRONG>$</STRONG>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"
    align=left><B></B></TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"
      align=right><STRONG>$</STRONG>&nbsp;</TD>
  <TD style="BORDER-BOTTOM: #000000 1px solid"
    align=left>&nbsp;</TD>
  </TR>
  <TR>
    <TD>&nbsp; </TD>
    <TD>&nbsp;</TD>
    <TD align=center>&nbsp; </TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp; </TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp; </TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp; </TD>
  <TD>&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD bgColor=#e6efff align=left>Earnings (loss) for the year </TD>
    <TD bgColor=#e6efff align=left>&nbsp;</TD>
    <TD bgColor=#e6efff vAlign=bottom align=center>&nbsp; </TD>
    <TD bgColor=#e6efff vAlign=bottom
    align=left>&nbsp;</TD>
    <TD bgColor=#e6efff vAlign=bottom
    align=left>&nbsp;</TD>
    <TD bgColor=#e6efff vAlign=bottom align=right><B>346,239</B>    </TD>
    <TD bgColor=#e6efff vAlign=bottom
    align=left>&nbsp;</TD>
    <TD bgColor=#e6efff vAlign=bottom
    align=left>&nbsp;</TD>
    <TD bgColor=#e6efff vAlign=bottom align=right>(13,193</TD>
    <TD bgColor=#e6efff vAlign=bottom align=left>)</TD>
    <TD bgColor=#e6efff vAlign=bottom
    align=left>&nbsp;</TD>
    <TD bgColor=#e6efff vAlign=bottom align=right>(5,946</TD>
    <TD bgColor=#e6efff vAlign=bottom align=left>)  </TD>
  </TR>
  <TR vAlign=top>
    <TD align=left>Other comprehensive income (loss) </TD>
    <TD align=left>&nbsp;</TD>
    <TD vAlign=bottom align=center>&nbsp; </TD>
    <TD vAlign=bottom align=left>&nbsp;</TD>
    <TD vAlign=bottom align=left>&nbsp;</TD>
    <TD vAlign=bottom align=left>&nbsp; </TD>
    <TD vAlign=bottom align=left>&nbsp;</TD>
    <TD vAlign=bottom align=left>&nbsp;</TD>
    <TD vAlign=bottom align=left>&nbsp; </TD>
    <TD vAlign=bottom align=left>&nbsp;</TD>
    <TD vAlign=bottom align=left>&nbsp;</TD>
    <TD vAlign=bottom align=left>&nbsp; </TD>
  <TD vAlign=bottom align=left>&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD bgColor=#e6efff align=left>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Unrealized
      gain (loss) on marketable securities, net of tax </TD>
    <TD bgColor=#e6efff align=left>&nbsp;</TD>
    <TD bgColor=#e6efff vAlign=bottom align=center>6b </TD>
    <TD bgColor=#e6efff vAlign=bottom
    align=left>&nbsp;</TD>
    <TD bgColor=#e6efff vAlign=bottom
    align=left>&nbsp;</TD>
    <TD bgColor=#e6efff vAlign=bottom align=right><B>14,790</B></TD>
    <TD bgColor=#e6efff vAlign=bottom
    align=left>&nbsp;</TD>
    <TD bgColor=#e6efff vAlign=bottom
    align=left>&nbsp;</TD>
    <TD bgColor=#e6efff vAlign=bottom align=right>7,367 </TD>
    <TD bgColor=#e6efff vAlign=bottom
    align=left>&nbsp;</TD>
    <TD bgColor=#e6efff vAlign=bottom
    align=left>&nbsp;</TD>
    <TD bgColor=#e6efff vAlign=bottom align=right>(14,785</TD>
    <TD bgColor=#e6efff vAlign=bottom align=left>)  </TD>
  </TR>
  <TR vAlign=top>
    <TD align=left>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Realized gain on sale of
      marketable securities
      <BR>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
      recycled to net earnings (loss), net of tax </TD>
    <TD align=left>&nbsp;</TD>
    <TD vAlign=bottom align=center>6b </TD>
    <TD vAlign=bottom align=left>&nbsp;</TD>
    <TD vAlign=bottom align=left>&nbsp;</TD>
    <TD vAlign=bottom align=right><B>(2,645</B></TD>
    <TD vAlign=bottom align=left><B>)</B> </TD>
    <TD vAlign=bottom align=left>&nbsp;</TD>
    <TD vAlign=bottom align=right>(1,513</TD>
    <TD vAlign=bottom align=left>) </TD>
    <TD vAlign=bottom align=left>&nbsp;</TD>
    <TD vAlign=bottom align=right>(1,734</TD>
  <TD vAlign=bottom align=left>) </TD>
  </TR>
  <TR vAlign=top>
    <TD bgColor=#e6efff align=left>&nbsp; &nbsp; &nbsp; &nbsp;Foreign exchange
      gain on marketable securities </TD>
    <TD bgColor=#e6efff align=left>&nbsp;</TD>
    <TD bgColor=#e6efff vAlign=bottom align=center>&nbsp; </TD>
    <TD bgColor=#e6efff vAlign=bottom
    align=left>&nbsp;</TD>
    <TD bgColor=#e6efff vAlign=bottom
    align=left>&nbsp;</TD>
    <TD bgColor=#e6efff vAlign=bottom align=right><B>1,117</B> </TD>
    <TD bgColor=#e6efff vAlign=bottom
    align=left>&nbsp;</TD>
    <TD bgColor=#e6efff vAlign=bottom
    align=left>&nbsp;</TD>
    <TD bgColor=#e6efff vAlign=bottom align=right>1,968 </TD>
    <TD bgColor=#e6efff vAlign=bottom
    align=left>&nbsp;</TD>
    <TD bgColor=#e6efff vAlign=bottom
    align=left>&nbsp;</TD>
    <TD bgColor=#e6efff vAlign=bottom align=right>- </TD>
  <TD bgColor=#e6efff vAlign=bottom
    align=left>&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left>&nbsp; &nbsp; &nbsp; &nbsp;Translation adjustment on
      foreign operations </TD>
    <TD align=left>&nbsp;</TD>
    <TD vAlign=bottom align=center>&nbsp; </TD>
    <TD vAlign=bottom align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom
    align=right><B>-</B> </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom
    align=right>- </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom
    align=right>(97,587</TD>
  <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left>) </TD>
  </TR>
  <TR vAlign=top>
    <TD bgColor=#e6efff align=left>Other comprehensive income (loss) for the
      year </TD>
    <TD bgColor=#e6efff align=left>&nbsp;</TD>
    <TD bgColor=#e6efff vAlign=bottom align=left>&nbsp; </TD>
    <TD bgColor=#e6efff vAlign=bottom
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff vAlign=bottom align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff vAlign=bottom align=right><B>13,262</B> </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff vAlign=bottom align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff vAlign=bottom align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff vAlign=bottom align=right>7,822 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff vAlign=bottom align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff vAlign=bottom align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff vAlign=bottom align=right>(114,106</TD>
  <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff vAlign=bottom align=left>) </TD>
  </TR>
  <TR vAlign=top>
    <TD align=left><B>Comprehensive income (loss) for the year</B> </TD>
    <TD align=left>&nbsp;</TD>
    <TD vAlign=bottom align=left>&nbsp; </TD>
    <TD vAlign=bottom align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" vAlign=bottom align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" vAlign=bottom
    align=right><B>359,501</B> </TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" vAlign=bottom align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" vAlign=bottom align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" vAlign=bottom
    align=right>(5,371</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" vAlign=bottom align=left>) </TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" vAlign=bottom align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" vAlign=bottom
    align=right>(120,052</TD>
  <TD style="BORDER-BOTTOM: #000000 2px solid" vAlign=bottom align=left>) </TD>
  </TR></TABLE>
<P align=center>The accompanying notes are an integral part of the consolidated
financial statements</P>
<P align=right>4</P>
<HR style="PAGE-BREAK-AFTER: always" align=center color=black SIZE=5
width="100%" noShade>
<!--$$/page=--><A name=page_10></A><BR>
<BR>
<TABLE
style="BORDER-COLOR: black; BORDER-COLLAPSE: collapse; FONT-SIZE: 10pt; "
border=0 cellSpacing=0 cellPadding=0 width="100%">

  <TR vAlign=top>
    <TD align=left><B>Silver Standard Resources Inc.</B> </TD></TR>
  <TR vAlign=top>
    <TD align=left>Consolidated Statements of Shareholders&#146; Equity </TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>For the years
      ended December 31, 2010, 2009 and 2008 </TD></TR>
  <TR vAlign=top>
    <TD align=left>(expressed in thousands of United States dollars)
  </TD></TR></TABLE><BR>
<TABLE
style="BORDER-COLOR: black; BORDER-COLLAPSE: collapse; FONT-SIZE: 8pt; "
border=0 cellSpacing=0 cellPadding=0 width="100%">

  <TR vAlign=top>
    <TD align=left valign="bottom" >&nbsp; </TD>
    <TD  width="1%" align=left valign="bottom">&nbsp;</TD>
    <TD width="13%" colSpan=4 align=center valign="bottom">Common Shares </TD>
    <TD  width="2%" align=right valign="bottom">&nbsp;</TD>
    <TD  width="1%" align=right valign="bottom">&nbsp;</TD>
    <TD width="5%" align=right valign="bottom">Values </TD>
    <TD  width="2%" align=right valign="bottom">&nbsp;</TD>
    <TD  width="1%" align=right valign="bottom">&nbsp;</TD>
    <TD width="5%" align=right valign="bottom">Values </TD>
    <TD  width="2%" align=right valign="bottom">&nbsp;</TD>
    <TD  width="1%" align=right valign="bottom">&nbsp;</TD>
    <TD width="5%" align=right valign="bottom">&nbsp; </TD>
    <TD  width="2%" align=right valign="bottom">&nbsp;</TD>
    <TD  width="1%" align=right valign="bottom">&nbsp;</TD>
    <TD width="5%" align=right valign="bottom">Accumulated </TD>
    <TD  width="2%" align=right valign="bottom">&nbsp;</TD>
    <TD  width="1%" align=right valign="bottom">&nbsp;</TD>
    <TD width="5%" align=right valign="bottom">&nbsp; </TD>
    <TD  width="2%" align=right valign="bottom">&nbsp;</TD>
    <TD  width="1%" align=right valign="bottom">&nbsp;</TD>
    <TD width="5%" align=right valign="bottom">&nbsp; </TD>
    <TD  width="2%" align=right valign="bottom">&nbsp;</TD>
    <TD  width="1%" align=right valign="bottom">&nbsp;</TD>
    <TD width="5%" align=right valign="bottom">&nbsp; </TD>
    <TD  width="2%" align=right valign="bottom">&nbsp;</TD>
    <TD  width="1%" align=right valign="bottom">&nbsp;</TD>
    <TD width="5%" align=right valign="bottom">&nbsp; </TD>
  <TD  width="2%" align=left valign="bottom">&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left valign="bottom" >&nbsp; </TD>
    <TD
    align=left valign="bottom" style="BORDER-BOTTOM: #000000 1px solid">&nbsp;</TD>
    <TD width="5%" align=right valign="bottom" style="BORDER-BOTTOM: #000000 1px solid">&nbsp;    </TD>
    <TD  width="2%"
    align=right valign="bottom" style="BORDER-BOTTOM: #000000 1px solid">&nbsp;</TD>
    <TD  width="1%"
    align=right valign="bottom" style="BORDER-BOTTOM: #000000 1px solid">&nbsp;</TD>
    <TD width="5%" align=right valign="bottom" style="BORDER-BOTTOM: #000000 1px solid">&nbsp;    </TD>
    <TD
    align=right valign="bottom" style="BORDER-BOTTOM: #000000 1px solid">&nbsp;</TD>
    <TD align=right valign="bottom">&nbsp;</TD>
    <TD align=right valign="bottom" nowrap>assigned </TD>
    <TD align=right valign="bottom">&nbsp;</TD>
    <TD align=right valign="bottom">&nbsp;</TD>
    <TD align=right valign="bottom" nowrap>assigned to </TD>
    <TD align=right valign="bottom">&nbsp;</TD>
    <TD align=right valign="bottom">&nbsp;</TD>
    <TD align=right valign="bottom">&nbsp; </TD>
    <TD align=right valign="bottom">&nbsp;</TD>
    <TD align=right valign="bottom">&nbsp;</TD>
    <TD align=right valign="bottom">other </TD>
    <TD align=right valign="bottom">&nbsp;</TD>
    <TD align=right valign="bottom">&nbsp;</TD>
    <TD align=right valign="bottom">Retained </TD>
    <TD align=right valign="bottom">&nbsp;</TD>
    <TD align=right valign="bottom">&nbsp;</TD>
    <TD align=right valign="bottom">&nbsp; </TD>
    <TD align=right valign="bottom">&nbsp;</TD>
    <TD align=right valign="bottom">&nbsp;</TD>
    <TD align=right valign="bottom">&nbsp; </TD>
    <TD align=right valign="bottom">&nbsp;</TD>
    <TD align=right valign="bottom">&nbsp;</TD>
    <TD align=right valign="bottom">&nbsp; </TD>
  <TD align=left valign="bottom">&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left valign="bottom" >&nbsp; </TD>
    <TD align=left valign="bottom">&nbsp;</TD>
    <TD align=right valign="bottom" nowrap>Number of </TD>
    <TD align=right valign="bottom">&nbsp;</TD>
    <TD align=right valign="bottom">&nbsp;</TD>
    <TD align=right valign="bottom">&nbsp; </TD>
    <TD align=right valign="bottom">&nbsp;</TD>
    <TD align=right valign="bottom">&nbsp;</TD>
    <TD align=right valign="bottom" nowrap>to stock </TD>
    <TD align=right valign="bottom">&nbsp;</TD>
    <TD align=right valign="bottom">&nbsp;</TD>
    <TD align=right valign="bottom" nowrap>convertible </TD>
    <TD align=right valign="bottom">&nbsp;</TD>
    <TD align=right valign="bottom">&nbsp;</TD>
    <TD align=right valign="bottom" nowrap>Contributed </TD>
    <TD align=right valign="bottom">&nbsp;</TD>
    <TD align=right valign="bottom">&nbsp;</TD>
    <TD
align=right valign="bottom" nowrap>comprehensive&nbsp;</TD>
    <TD align=right valign="bottom">&nbsp;</TD>
    <TD align=right valign="bottom">&nbsp;</TD>
    <TD align=right valign="bottom" nowrap>earnings</TD>
    <TD align=right valign="bottom">&nbsp;</TD>
    <TD align=right valign="bottom">&nbsp;</TD>
    <TD align=right valign="bottom">&nbsp; </TD>
    <TD align=right valign="bottom">&nbsp;</TD>
    <TD align=right valign="bottom">&nbsp;</TD>
    <TD align=right valign="bottom" nowrap>Non-controlling </TD>
    <TD align=right valign="bottom">&nbsp;</TD>
    <TD align=right valign="bottom">&nbsp;</TD>
    <TD align=right valign="bottom">Total </TD>
  <TD align=left valign="bottom">&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left valign="bottom" >&nbsp; </TD>
    <TD align=left valign="bottom">&nbsp;</TD>
    <TD align=right valign="bottom">shares </TD>
    <TD align=right valign="bottom">&nbsp;</TD>
    <TD align=right valign="bottom">&nbsp;</TD>
    <TD align=right valign="bottom">Amount&nbsp; </TD>
    <TD align=right valign="bottom">&nbsp;</TD>
    <TD align=right valign="bottom">&nbsp;</TD>
    <TD align=right valign="bottom">options&nbsp;</TD>
    <TD align=right valign="bottom">&nbsp;</TD>
    <TD align=right valign="bottom">&nbsp;</TD>
    <TD align=right valign="bottom">notes </TD>
    <TD align=right valign="bottom">&nbsp;</TD>
    <TD align=right valign="bottom">&nbsp;</TD>
    <TD align=right valign="bottom">Surplus </TD>
    <TD align=right valign="bottom">&nbsp;</TD>
    <TD align=right valign="bottom">&nbsp;</TD>
    <TD align=right valign="bottom">income (loss)&nbsp;</TD>
    <TD align=right valign="bottom">&nbsp;</TD>
    <TD align=right valign="bottom">&nbsp;</TD>
    <TD align=right valign="bottom">(deficit)</TD>
    <TD align=right valign="bottom">&nbsp;</TD>
    <TD align=right valign="bottom">&nbsp;</TD>
    <TD align=right valign="bottom">Total </TD>
    <TD align=right valign="bottom">&nbsp;</TD>
    <TD align=right valign="bottom">&nbsp;</TD>
    <TD align=right valign="bottom">interest </TD>
    <TD align=right valign="bottom">&nbsp;</TD>
    <TD align=right valign="bottom">&nbsp;</TD>
    <TD align=right valign="bottom" nowrap>Equity </TD>
  <TD align=left valign="bottom">&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left valign="bottom" >&nbsp; </TD>
    <TD
    align=left valign="bottom" style="BORDER-BOTTOM: #000000 1px solid">&nbsp;</TD>
    <TD
      align=right valign="bottom" style="BORDER-BOTTOM: #000000 1px solid">(thousands) </TD>
    <TD
    align=right valign="bottom" style="BORDER-BOTTOM: #000000 1px solid">&nbsp;</TD>
    <TD
    align=right valign="bottom" style="BORDER-BOTTOM: #000000 1px solid"></TD>
    <TD
    align=right valign="bottom" style="BORDER-BOTTOM: #000000 1px solid">$&nbsp;</TD>
    <TD
    align=right valign="bottom" style="BORDER-BOTTOM: #000000 1px solid">&nbsp;</TD>
    <TD
    align=right valign="bottom" style="BORDER-BOTTOM: #000000 1px solid"></TD>
    <TD
    align=right valign="bottom" style="BORDER-BOTTOM: #000000 1px solid">$&nbsp;</TD>
    <TD
    align=right valign="bottom" style="BORDER-BOTTOM: #000000 1px solid">&nbsp;</TD>
    <TD
    align=right valign="bottom" style="BORDER-BOTTOM: #000000 1px solid"></TD>
    <TD
    align=right valign="bottom" style="BORDER-BOTTOM: #000000 1px solid">$&nbsp;</TD>
    <TD
    align=right valign="bottom" style="BORDER-BOTTOM: #000000 1px solid">&nbsp;</TD>
    <TD
    align=right valign="bottom" style="BORDER-BOTTOM: #000000 1px solid"></TD>
    <TD
    align=right valign="bottom" style="BORDER-BOTTOM: #000000 1px solid">$&nbsp;</TD>
    <TD
    align=right valign="bottom" style="BORDER-BOTTOM: #000000 1px solid">&nbsp;</TD>
    <TD
    align=right valign="bottom" style="BORDER-BOTTOM: #000000 1px solid"></TD>
    <TD
    align=right valign="bottom" style="BORDER-BOTTOM: #000000 1px solid">$&nbsp;</TD>
    <TD
    align=right valign="bottom" style="BORDER-BOTTOM: #000000 1px solid">&nbsp;</TD>
    <TD
    align=right valign="bottom" style="BORDER-BOTTOM: #000000 1px solid"></TD>
    <TD
    align=right valign="bottom" style="BORDER-BOTTOM: #000000 1px solid">$&nbsp;</TD>
    <TD
    align=right valign="bottom" style="BORDER-BOTTOM: #000000 1px solid">&nbsp;</TD>
    <TD
    align=right valign="bottom" style="BORDER-BOTTOM: #000000 1px solid"></TD>
    <TD
    align=right valign="bottom" style="BORDER-BOTTOM: #000000 1px solid">$&nbsp;</TD>
    <TD
    align=right valign="bottom" style="BORDER-BOTTOM: #000000 1px solid">&nbsp;</TD>
    <TD
    align=right valign="bottom" style="BORDER-BOTTOM: #000000 1px solid"></TD>
    <TD
    align=right valign="bottom" style="BORDER-BOTTOM: #000000 1px solid">$&nbsp;</TD>
    <TD
    align=right valign="bottom" style="BORDER-BOTTOM: #000000 1px solid">&nbsp;</TD>
    <TD
    align=right valign="bottom" style="BORDER-BOTTOM: #000000 1px solid"></TD>
    <TD
    align=right valign="bottom" style="BORDER-BOTTOM: #000000 1px solid">$&nbsp;</TD>
  <TD
    align=left valign="bottom" style="BORDER-BOTTOM: #000000 1px solid">&nbsp;</TD>
  </TR>
  <TR>
    <TD valign="bottom" >&nbsp; </TD>
    <TD valign="bottom">&nbsp;</TD>
    <TD valign="bottom">&nbsp; </TD>
    <TD valign="bottom">&nbsp;</TD>
    <TD valign="bottom">&nbsp;</TD>
    <TD valign="bottom">&nbsp; </TD>
    <TD valign="bottom">&nbsp;</TD>
    <TD valign="bottom">&nbsp;</TD>
    <TD valign="bottom">&nbsp; </TD>
    <TD valign="bottom">&nbsp;</TD>
    <TD valign="bottom">&nbsp;</TD>
    <TD valign="bottom">&nbsp; </TD>
    <TD valign="bottom">&nbsp;</TD>
    <TD valign="bottom">&nbsp;</TD>
    <TD valign="bottom">&nbsp; </TD>
    <TD valign="bottom">&nbsp;</TD>
    <TD valign="bottom">&nbsp;</TD>
    <TD valign="bottom">&nbsp; </TD>
    <TD valign="bottom">&nbsp;</TD>
    <TD valign="bottom">&nbsp;</TD>
    <TD valign="bottom">&nbsp; </TD>
    <TD valign="bottom">&nbsp;</TD>
    <TD valign="bottom">&nbsp;</TD>
    <TD valign="bottom">&nbsp; </TD>
    <TD valign="bottom">&nbsp;</TD>
    <TD valign="bottom">&nbsp;</TD>
    <TD valign="bottom">&nbsp; </TD>
    <TD valign="bottom">&nbsp;</TD>
    <TD valign="bottom">&nbsp;</TD>
    <TD valign="bottom">&nbsp; </TD>
  <TD valign="bottom">&nbsp;</TD>
  </TR>
  <TR>
    <TD valign="bottom" >&nbsp; </TD>
    <TD valign="bottom">&nbsp;</TD>
    <TD valign="bottom">&nbsp; </TD>
    <TD valign="bottom">&nbsp;</TD>
    <TD valign="bottom">&nbsp;</TD>
    <TD valign="bottom">&nbsp; </TD>
    <TD valign="bottom">&nbsp;</TD>
    <TD valign="bottom">&nbsp;</TD>
    <TD valign="bottom">&nbsp; </TD>
    <TD valign="bottom">&nbsp;</TD>
    <TD valign="bottom">&nbsp;</TD>
    <TD valign="bottom">&nbsp; </TD>
    <TD valign="bottom">&nbsp;</TD>
    <TD valign="bottom">&nbsp;</TD>
    <TD valign="bottom">&nbsp; </TD>
    <TD valign="bottom">&nbsp;</TD>
    <TD valign="bottom">&nbsp;</TD>
    <TD valign="bottom">&nbsp; </TD>
    <TD valign="bottom">&nbsp;</TD>
    <TD valign="bottom">&nbsp;</TD>
    <TD valign="bottom">&nbsp; </TD>
    <TD valign="bottom">&nbsp;</TD>
    <TD valign="bottom">&nbsp;</TD>
    <TD valign="bottom">&nbsp; </TD>
    <TD valign="bottom">&nbsp;</TD>
    <TD valign="bottom">&nbsp;</TD>
    <TD valign="bottom">&nbsp; </TD>
    <TD valign="bottom">&nbsp;</TD>
    <TD valign="bottom">&nbsp;</TD>
    <TD valign="bottom">&nbsp; </TD>
  <TD valign="bottom">&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left valign="bottom" bgColor=#e6efff >Balance, December 31, 2007</TD>
    <TD align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD align=right valign="bottom" bgColor=#e6efff>62,569 </TD>
    <TD align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD align=right valign="bottom" bgColor=#e6efff>386,597 </TD>
    <TD align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD align=right valign="bottom" bgColor=#e6efff>27,706 </TD>
    <TD align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD align=right valign="bottom" bgColor=#e6efff>- </TD>
    <TD align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD align=right valign="bottom" bgColor=#e6efff>510 </TD>
    <TD align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD align=right valign="bottom" bgColor=#e6efff>94,537 </TD>
    <TD align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD align=right valign="bottom" bgColor=#e6efff>(49,434</TD>
    <TD align=left valign="bottom" bgColor=#e6efff>) </TD>
    <TD align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD align=right valign="bottom" bgColor=#e6efff>459,916 </TD>
    <TD align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD align=right valign="bottom" bgColor=#e6efff>496 </TD>
    <TD align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD align=right valign="bottom" bgColor=#e6efff>460,412 </TD>
  <TD align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
  </TR>
  <TR>
    <TD valign="bottom" >&nbsp; </TD>
    <TD valign="bottom">&nbsp;</TD>
    <TD valign="bottom">&nbsp; </TD>
    <TD valign="bottom">&nbsp;</TD>
    <TD valign="bottom">&nbsp;</TD>
    <TD valign="bottom">&nbsp; </TD>
    <TD valign="bottom">&nbsp;</TD>
    <TD valign="bottom">&nbsp;</TD>
    <TD valign="bottom">&nbsp; </TD>
    <TD valign="bottom">&nbsp;</TD>
    <TD valign="bottom">&nbsp;</TD>
    <TD valign="bottom">&nbsp; </TD>
    <TD valign="bottom">&nbsp;</TD>
    <TD valign="bottom">&nbsp;</TD>
    <TD valign="bottom">&nbsp; </TD>
    <TD valign="bottom">&nbsp;</TD>
    <TD valign="bottom">&nbsp;</TD>
    <TD valign="bottom">&nbsp; </TD>
    <TD valign="bottom">&nbsp;</TD>
    <TD valign="bottom">&nbsp;</TD>
    <TD valign="bottom">&nbsp; </TD>
    <TD valign="bottom">&nbsp;</TD>
    <TD valign="bottom">&nbsp;</TD>
    <TD valign="bottom">&nbsp; </TD>
    <TD valign="bottom">&nbsp;</TD>
    <TD valign="bottom">&nbsp;</TD>
    <TD valign="bottom">&nbsp; </TD>
    <TD valign="bottom">&nbsp;</TD>
    <TD valign="bottom">&nbsp;</TD>
    <TD valign="bottom">&nbsp; </TD>
  <TD valign="bottom">&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left valign="bottom" bgColor=#e6efff >Issued for cash: </TD>
    <TD align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD align=left valign="bottom" bgColor=#e6efff>&nbsp; </TD>
    <TD align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD align=left valign="bottom" bgColor=#e6efff>&nbsp; </TD>
    <TD align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD align=left valign="bottom" bgColor=#e6efff>&nbsp; </TD>
    <TD align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD align=left valign="bottom" bgColor=#e6efff>&nbsp; </TD>
    <TD align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD align=left valign="bottom" bgColor=#e6efff>&nbsp; </TD>
    <TD align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD align=left valign="bottom" bgColor=#e6efff>&nbsp; </TD>
    <TD align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD align=left valign="bottom" bgColor=#e6efff>&nbsp; </TD>
    <TD align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD align=left valign="bottom" bgColor=#e6efff>&nbsp; </TD>
    <TD align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD align=left valign="bottom" bgColor=#e6efff>&nbsp; </TD>
    <TD align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD align=left valign="bottom" bgColor=#e6efff>&nbsp; </TD>
  <TD align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left valign="bottom" >&nbsp;Exercise of options </TD>
    <TD align=left valign="bottom">&nbsp;</TD>
    <TD align=right valign="bottom">186 </TD>
    <TD align=left valign="bottom">&nbsp;</TD>
    <TD align=left valign="bottom">&nbsp;</TD>
    <TD align=right valign="bottom">2,192 </TD>
    <TD align=left valign="bottom">&nbsp;</TD>
    <TD align=left valign="bottom">&nbsp;</TD>
    <TD align=right valign="bottom">- </TD>
    <TD align=left valign="bottom">&nbsp;</TD>
    <TD align=left valign="bottom">&nbsp;</TD>
    <TD align=right valign="bottom">- </TD>
    <TD align=left valign="bottom">&nbsp;</TD>
    <TD align=left valign="bottom">&nbsp;</TD>
    <TD align=right valign="bottom">- </TD>
    <TD align=left valign="bottom">&nbsp;</TD>
    <TD align=left valign="bottom">&nbsp;</TD>
    <TD align=right valign="bottom">- </TD>
    <TD align=left valign="bottom">&nbsp;</TD>
    <TD align=left valign="bottom">&nbsp;</TD>
    <TD align=right valign="bottom">- </TD>
    <TD align=left valign="bottom">&nbsp;</TD>
    <TD align=left valign="bottom">&nbsp;</TD>
    <TD align=right valign="bottom">2,192 </TD>
    <TD align=left valign="bottom">&nbsp;</TD>
    <TD align=left valign="bottom">&nbsp;</TD>
    <TD align=right valign="bottom">- </TD>
    <TD align=left valign="bottom">&nbsp;</TD>
    <TD align=left valign="bottom">&nbsp;</TD>
    <TD align=right valign="bottom">2,192 </TD>
  <TD align=left valign="bottom">&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left valign="bottom" bgColor=#e6efff >Stock based compensation
      expense </TD>
    <TD align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD align=right valign="bottom" bgColor=#e6efff>- </TD>
    <TD align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD align=right valign="bottom" bgColor=#e6efff>- </TD>
    <TD align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD align=right valign="bottom" bgColor=#e6efff>9,662 </TD>
    <TD align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD align=right valign="bottom" bgColor=#e6efff>- </TD>
    <TD align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD align=right valign="bottom" bgColor=#e6efff>- </TD>
    <TD align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD align=right valign="bottom" bgColor=#e6efff>- </TD>
    <TD align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD align=right valign="bottom" bgColor=#e6efff>- </TD>
    <TD align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD align=right valign="bottom" bgColor=#e6efff>9,662 </TD>
    <TD align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD align=right valign="bottom" bgColor=#e6efff>- </TD>
    <TD align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD align=right valign="bottom" bgColor=#e6efff>9,662 </TD>
  <TD align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left valign="bottom" >Value of options exercised </TD>
    <TD align=left valign="bottom">&nbsp;</TD>
    <TD align=right valign="bottom">- </TD>
    <TD align=left valign="bottom">&nbsp;</TD>
    <TD align=left valign="bottom">&nbsp;</TD>
    <TD align=right valign="bottom">866 </TD>
    <TD align=left valign="bottom">&nbsp;</TD>
    <TD align=left valign="bottom">&nbsp;</TD>
    <TD align=right valign="bottom">(866</TD>
    <TD align=left valign="bottom">) </TD>
    <TD align=left valign="bottom">&nbsp;</TD>
    <TD align=right valign="bottom">- </TD>
    <TD align=left valign="bottom">&nbsp;</TD>
    <TD align=left valign="bottom">&nbsp;</TD>
    <TD align=right valign="bottom">- </TD>
    <TD align=left valign="bottom">&nbsp;</TD>
    <TD align=left valign="bottom">&nbsp;</TD>
    <TD align=right valign="bottom">- </TD>
    <TD align=left valign="bottom">&nbsp;</TD>
    <TD align=left valign="bottom">&nbsp;</TD>
    <TD align=right valign="bottom">- </TD>
    <TD align=left valign="bottom">&nbsp;</TD>
    <TD align=left valign="bottom">&nbsp;</TD>
    <TD align=right valign="bottom">- </TD>
    <TD align=left valign="bottom">&nbsp;</TD>
    <TD align=left valign="bottom">&nbsp;</TD>
    <TD align=right valign="bottom">- </TD>
    <TD align=left valign="bottom">&nbsp;</TD>
    <TD align=left valign="bottom">&nbsp;</TD>
    <TD align=right valign="bottom">- </TD>
  <TD align=left valign="bottom">&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left valign="bottom" bgColor=#e6efff >Value assigned to convertible
      notes </TD>
    <TD align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD align=right valign="bottom" bgColor=#e6efff>- </TD>
    <TD align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD align=right valign="bottom" bgColor=#e6efff>- </TD>
    <TD align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD align=right valign="bottom" bgColor=#e6efff>- </TD>
    <TD align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD align=right valign="bottom" bgColor=#e6efff>37,383 </TD>
    <TD align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD align=right valign="bottom" bgColor=#e6efff>- </TD>
    <TD align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD align=right valign="bottom" bgColor=#e6efff>- </TD>
    <TD align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD align=right valign="bottom" bgColor=#e6efff>- </TD>
    <TD align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD align=right valign="bottom" bgColor=#e6efff>37,383 </TD>
    <TD align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD align=right valign="bottom" bgColor=#e6efff>- </TD>
    <TD align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD align=right valign="bottom" bgColor=#e6efff>37,383 </TD>
  <TD align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left valign="bottom" >Other comprehensive loss </TD>
    <TD align=left valign="bottom">&nbsp;</TD>
    <TD align=right valign="bottom">- </TD>
    <TD align=left valign="bottom">&nbsp;</TD>
    <TD align=left valign="bottom">&nbsp;</TD>
    <TD align=right valign="bottom">- </TD>
    <TD align=left valign="bottom">&nbsp;</TD>
    <TD align=left valign="bottom">&nbsp;</TD>
    <TD align=right valign="bottom">- </TD>
    <TD align=left valign="bottom">&nbsp;</TD>
    <TD align=left valign="bottom">&nbsp;</TD>
    <TD align=right valign="bottom">- </TD>
    <TD align=left valign="bottom">&nbsp;</TD>
    <TD align=left valign="bottom">&nbsp;</TD>
    <TD align=right valign="bottom">- </TD>
    <TD align=left valign="bottom">&nbsp;</TD>
    <TD align=left valign="bottom">&nbsp;</TD>
    <TD align=right valign="bottom">(114,106</TD>
    <TD align=left valign="bottom">) </TD>
    <TD align=left valign="bottom">&nbsp;</TD>
    <TD align=right valign="bottom">- </TD>
    <TD align=left valign="bottom">&nbsp;</TD>
    <TD align=left valign="bottom">&nbsp;</TD>
    <TD align=right valign="bottom">(114,106</TD>
    <TD align=left valign="bottom">) </TD>
    <TD align=left valign="bottom">&nbsp;</TD>
    <TD align=right valign="bottom">- </TD>
    <TD align=left valign="bottom">&nbsp;</TD>
    <TD align=left valign="bottom">&nbsp;</TD>
    <TD align=right valign="bottom">(114,106</TD>
  <TD align=left valign="bottom">) </TD>
  </TR>
  <TR vAlign=top>
    <TD align=left valign="bottom" bgColor=#e6efff >Loss for the year </TD>
    <TD align=left valign="bottom" bgColor=#e6efff style="BORDER-BOTTOM: #000000 1px solid">&nbsp;</TD>
    <TD
    align=right valign="bottom" bgColor=#e6efff style="BORDER-BOTTOM: #000000 1px solid">- </TD>
    <TD align=left valign="bottom" bgColor=#e6efff style="BORDER-BOTTOM: #000000 1px solid">&nbsp;</TD>
    <TD align=left valign="bottom" bgColor=#e6efff style="BORDER-BOTTOM: #000000 1px solid">&nbsp;</TD>
    <TD
    align=right valign="bottom" bgColor=#e6efff style="BORDER-BOTTOM: #000000 1px solid">- </TD>
    <TD align=left valign="bottom" bgColor=#e6efff style="BORDER-BOTTOM: #000000 1px solid">&nbsp;</TD>
    <TD align=left valign="bottom" bgColor=#e6efff style="BORDER-BOTTOM: #000000 1px solid">&nbsp;</TD>
    <TD
    align=right valign="bottom" bgColor=#e6efff style="BORDER-BOTTOM: #000000 1px solid">- </TD>
    <TD align=left valign="bottom" bgColor=#e6efff style="BORDER-BOTTOM: #000000 1px solid">&nbsp;</TD>
    <TD align=left valign="bottom" bgColor=#e6efff style="BORDER-BOTTOM: #000000 1px solid">&nbsp;</TD>
    <TD
    align=right valign="bottom" bgColor=#e6efff style="BORDER-BOTTOM: #000000 1px solid">- </TD>
    <TD align=left valign="bottom" bgColor=#e6efff style="BORDER-BOTTOM: #000000 1px solid">&nbsp;</TD>
    <TD align=left valign="bottom" bgColor=#e6efff style="BORDER-BOTTOM: #000000 1px solid">&nbsp;</TD>
    <TD
    align=right valign="bottom" bgColor=#e6efff style="BORDER-BOTTOM: #000000 1px solid">- </TD>
    <TD align=left valign="bottom" bgColor=#e6efff style="BORDER-BOTTOM: #000000 1px solid">&nbsp;</TD>
    <TD align=left valign="bottom" bgColor=#e6efff style="BORDER-BOTTOM: #000000 1px solid">&nbsp;</TD>
    <TD
    align=right valign="bottom" bgColor=#e6efff style="BORDER-BOTTOM: #000000 1px solid">- </TD>
    <TD align=left valign="bottom" bgColor=#e6efff style="BORDER-BOTTOM: #000000 1px solid">&nbsp;</TD>
    <TD align=left valign="bottom" bgColor=#e6efff style="BORDER-BOTTOM: #000000 1px solid">&nbsp;</TD>
    <TD
    align=right valign="bottom" bgColor=#e6efff style="BORDER-BOTTOM: #000000 1px solid">(5,946</TD>
    <TD align=left valign="bottom" bgColor=#e6efff style="BORDER-BOTTOM: #000000 1px solid">) </TD>
    <TD align=left valign="bottom" bgColor=#e6efff style="BORDER-BOTTOM: #000000 1px solid">&nbsp;</TD>
    <TD
    align=right valign="bottom" bgColor=#e6efff style="BORDER-BOTTOM: #000000 1px solid">(5,946</TD>
    <TD align=left valign="bottom" bgColor=#e6efff style="BORDER-BOTTOM: #000000 1px solid">) </TD>
    <TD align=left valign="bottom" bgColor=#e6efff style="BORDER-BOTTOM: #000000 1px solid">&nbsp;</TD>
    <TD
    align=right valign="bottom" bgColor=#e6efff style="BORDER-BOTTOM: #000000 1px solid">- </TD>
    <TD align=left valign="bottom" bgColor=#e6efff style="BORDER-BOTTOM: #000000 1px solid">&nbsp;</TD>
    <TD align=left valign="bottom" bgColor=#e6efff style="BORDER-BOTTOM: #000000 1px solid">&nbsp;</TD>
    <TD
    align=right valign="bottom" bgColor=#e6efff style="BORDER-BOTTOM: #000000 1px solid">(5,946</TD>
  <TD align=left valign="bottom" bgColor=#e6efff style="BORDER-BOTTOM: #000000 1px solid">) </TD>
  </TR>
  <TR>
    <TD valign="bottom" >&nbsp; </TD>
    <TD valign="bottom">&nbsp;</TD>
    <TD valign="bottom">&nbsp; </TD>
    <TD valign="bottom">&nbsp;</TD>
    <TD valign="bottom">&nbsp;</TD>
    <TD valign="bottom">&nbsp; </TD>
    <TD valign="bottom">&nbsp;</TD>
    <TD valign="bottom">&nbsp;</TD>
    <TD valign="bottom">&nbsp; </TD>
    <TD valign="bottom">&nbsp;</TD>
    <TD valign="bottom">&nbsp;</TD>
    <TD valign="bottom">&nbsp; </TD>
    <TD valign="bottom">&nbsp;</TD>
    <TD valign="bottom">&nbsp;</TD>
    <TD valign="bottom">&nbsp; </TD>
    <TD valign="bottom">&nbsp;</TD>
    <TD valign="bottom">&nbsp;</TD>
    <TD valign="bottom">&nbsp; </TD>
    <TD valign="bottom">&nbsp;</TD>
    <TD valign="bottom">&nbsp;</TD>
    <TD valign="bottom">&nbsp; </TD>
    <TD valign="bottom">&nbsp;</TD>
    <TD valign="bottom">&nbsp;</TD>
    <TD valign="bottom">&nbsp; </TD>
    <TD valign="bottom">&nbsp;</TD>
    <TD valign="bottom">&nbsp;</TD>
    <TD valign="bottom">&nbsp; </TD>
    <TD valign="bottom">&nbsp;</TD>
    <TD valign="bottom">&nbsp;</TD>
    <TD valign="bottom">&nbsp; </TD>
  <TD valign="bottom">&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left valign="bottom" bgColor=#e6efff >Balance, December 31, 2008</TD>
    <TD align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD align=right valign="bottom" bgColor=#e6efff>62,755 </TD>
    <TD align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD align=right valign="bottom" bgColor=#e6efff>389,655 </TD>
    <TD align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD align=right valign="bottom" bgColor=#e6efff>36,502 </TD>
    <TD align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD align=right valign="bottom" bgColor=#e6efff>37,383 </TD>
    <TD align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD align=right valign="bottom" bgColor=#e6efff>510 </TD>
    <TD align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD align=right valign="bottom" bgColor=#e6efff>(19,569</TD>
    <TD align=left valign="bottom" bgColor=#e6efff>) </TD>
    <TD align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD align=right valign="bottom" bgColor=#e6efff>(55,380</TD>
    <TD align=left valign="bottom" bgColor=#e6efff>) </TD>
    <TD align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD align=right valign="bottom" bgColor=#e6efff>389,101 </TD>
    <TD align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD align=right valign="bottom" bgColor=#e6efff>496 </TD>
    <TD align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD align=right valign="bottom" bgColor=#e6efff>389,597 </TD>
  <TD align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
  </TR>
  <TR>
    <TD valign="bottom" >&nbsp; </TD>
    <TD valign="bottom">&nbsp;</TD>
    <TD valign="bottom">&nbsp; </TD>
    <TD valign="bottom">&nbsp;</TD>
    <TD valign="bottom">&nbsp;</TD>
    <TD valign="bottom">&nbsp; </TD>
    <TD valign="bottom">&nbsp;</TD>
    <TD valign="bottom">&nbsp;</TD>
    <TD valign="bottom">&nbsp; </TD>
    <TD valign="bottom">&nbsp;</TD>
    <TD valign="bottom">&nbsp;</TD>
    <TD valign="bottom">&nbsp; </TD>
    <TD valign="bottom">&nbsp;</TD>
    <TD valign="bottom">&nbsp;</TD>
    <TD valign="bottom">&nbsp; </TD>
    <TD valign="bottom">&nbsp;</TD>
    <TD valign="bottom">&nbsp;</TD>
    <TD valign="bottom">&nbsp; </TD>
    <TD valign="bottom">&nbsp;</TD>
    <TD valign="bottom">&nbsp;</TD>
    <TD valign="bottom">&nbsp; </TD>
    <TD valign="bottom">&nbsp;</TD>
    <TD valign="bottom">&nbsp;</TD>
    <TD valign="bottom">&nbsp; </TD>
    <TD valign="bottom">&nbsp;</TD>
    <TD valign="bottom">&nbsp;</TD>
    <TD valign="bottom">&nbsp; </TD>
    <TD valign="bottom">&nbsp;</TD>
    <TD valign="bottom">&nbsp;</TD>
    <TD valign="bottom">&nbsp; </TD>
  <TD valign="bottom">&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left valign="bottom" bgColor=#e6efff >Issued for cash: </TD>
    <TD align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD align=left valign="bottom" bgColor=#e6efff>&nbsp; </TD>
    <TD align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD align=left valign="bottom" bgColor=#e6efff>&nbsp; </TD>
    <TD align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD align=left valign="bottom" bgColor=#e6efff>&nbsp; </TD>
    <TD align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD align=left valign="bottom" bgColor=#e6efff>&nbsp; </TD>
    <TD align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD align=left valign="bottom" bgColor=#e6efff>&nbsp; </TD>
    <TD align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD align=left valign="bottom" bgColor=#e6efff>&nbsp; </TD>
    <TD align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD align=left valign="bottom" bgColor=#e6efff>&nbsp; </TD>
    <TD align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD align=left valign="bottom" bgColor=#e6efff>&nbsp; </TD>
    <TD align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD align=left valign="bottom" bgColor=#e6efff>&nbsp; </TD>
    <TD align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD align=left valign="bottom" bgColor=#e6efff>&nbsp; </TD>
  <TD align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left valign="bottom" >&nbsp;Public offering </TD>
    <TD align=left valign="bottom">&nbsp;</TD>
    <TD align=right valign="bottom">8,824 </TD>
    <TD align=left valign="bottom">&nbsp;</TD>
    <TD align=left valign="bottom">&nbsp;</TD>
    <TD align=right valign="bottom">150,000 </TD>
    <TD align=left valign="bottom">&nbsp;</TD>
    <TD align=left valign="bottom">&nbsp;</TD>
    <TD align=right valign="bottom">- </TD>
    <TD align=left valign="bottom">&nbsp;</TD>
    <TD align=left valign="bottom">&nbsp;</TD>
    <TD align=right valign="bottom">- </TD>
    <TD align=left valign="bottom">&nbsp;</TD>
    <TD align=left valign="bottom">&nbsp;</TD>
    <TD align=right valign="bottom">- </TD>
    <TD align=left valign="bottom">&nbsp;</TD>
    <TD align=left valign="bottom">&nbsp;</TD>
    <TD align=right valign="bottom">- </TD>
    <TD align=left valign="bottom">&nbsp;</TD>
    <TD align=left valign="bottom">&nbsp;</TD>
    <TD align=right valign="bottom">- </TD>
    <TD align=left valign="bottom">&nbsp;</TD>
    <TD align=left valign="bottom">&nbsp;</TD>
    <TD align=right valign="bottom">150,000 </TD>
    <TD align=left valign="bottom">&nbsp;</TD>
    <TD align=left valign="bottom">&nbsp;</TD>
    <TD align=right valign="bottom">- </TD>
    <TD align=left valign="bottom">&nbsp;</TD>
    <TD align=left valign="bottom">&nbsp;</TD>
    <TD align=right valign="bottom">150,000 </TD>
  <TD align=left valign="bottom">&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left valign="bottom" bgColor=#e6efff >&nbsp;Share issue costs </TD>
    <TD align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD align=right valign="bottom" bgColor=#e6efff>- </TD>
    <TD align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD align=right valign="bottom" bgColor=#e6efff>(9,165</TD>
    <TD align=left valign="bottom" bgColor=#e6efff>) </TD>
    <TD align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD align=right valign="bottom" bgColor=#e6efff>- </TD>
    <TD align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD align=right valign="bottom" bgColor=#e6efff>- </TD>
    <TD align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD align=right valign="bottom" bgColor=#e6efff>- </TD>
    <TD align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD align=right valign="bottom" bgColor=#e6efff>- </TD>
    <TD align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD align=right valign="bottom" bgColor=#e6efff>- </TD>
    <TD align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD align=right valign="bottom" bgColor=#e6efff>(9,165</TD>
    <TD align=left valign="bottom" bgColor=#e6efff>) </TD>
    <TD align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD align=right valign="bottom" bgColor=#e6efff>- </TD>
    <TD align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD align=right valign="bottom" bgColor=#e6efff>(9,165</TD>
  <TD align=left valign="bottom" bgColor=#e6efff>) </TD>
  </TR>
  <TR vAlign=top>
    <TD align=left valign="bottom" >&nbsp;Exercise of options </TD>
    <TD align=left valign="bottom">&nbsp;</TD>
    <TD align=right valign="bottom">386 </TD>
    <TD align=left valign="bottom">&nbsp;</TD>
    <TD align=left valign="bottom">&nbsp;</TD>
    <TD align=right valign="bottom">5,578 </TD>
    <TD align=left valign="bottom">&nbsp;</TD>
    <TD align=left valign="bottom">&nbsp;</TD>
    <TD align=right valign="bottom">- </TD>
    <TD align=left valign="bottom">&nbsp;</TD>
    <TD align=left valign="bottom">&nbsp;</TD>
    <TD align=right valign="bottom">- </TD>
    <TD align=left valign="bottom">&nbsp;</TD>
    <TD align=left valign="bottom">&nbsp;</TD>
    <TD align=right valign="bottom">- </TD>
    <TD align=left valign="bottom">&nbsp;</TD>
    <TD align=left valign="bottom">&nbsp;</TD>
    <TD align=right valign="bottom">- </TD>
    <TD align=left valign="bottom">&nbsp;</TD>
    <TD align=left valign="bottom">&nbsp;</TD>
    <TD align=right valign="bottom">- </TD>
    <TD align=left valign="bottom">&nbsp;</TD>
    <TD align=left valign="bottom">&nbsp;</TD>
    <TD align=right valign="bottom">5,578 </TD>
    <TD align=left valign="bottom">&nbsp;</TD>
    <TD align=left valign="bottom">&nbsp;</TD>
    <TD align=right valign="bottom">- </TD>
    <TD align=left valign="bottom">&nbsp;</TD>
    <TD align=left valign="bottom">&nbsp;</TD>
    <TD align=right valign="bottom">5,578 </TD>
  <TD align=left valign="bottom">&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left valign="bottom" bgColor=#e6efff >Stock based compensation
      expense </TD>
    <TD align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD align=right valign="bottom" bgColor=#e6efff>- </TD>
    <TD align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD align=right valign="bottom" bgColor=#e6efff>- </TD>
    <TD align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD align=right valign="bottom" bgColor=#e6efff>6,547 </TD>
    <TD align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD align=right valign="bottom" bgColor=#e6efff>- </TD>
    <TD align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD align=right valign="bottom" bgColor=#e6efff>- </TD>
    <TD align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD align=right valign="bottom" bgColor=#e6efff>- </TD>
    <TD align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD align=right valign="bottom" bgColor=#e6efff>- </TD>
    <TD align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD align=right valign="bottom" bgColor=#e6efff>6,547 </TD>
    <TD align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD align=right valign="bottom" bgColor=#e6efff>- </TD>
    <TD align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD align=right valign="bottom" bgColor=#e6efff>6,547 </TD>
  <TD align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left valign="bottom" >Value of options exercised </TD>
    <TD align=left valign="bottom">&nbsp;</TD>
    <TD align=right valign="bottom">- </TD>
    <TD align=left valign="bottom">&nbsp;</TD>
    <TD align=left valign="bottom">&nbsp;</TD>
    <TD align=right valign="bottom">2,632 </TD>
    <TD align=left valign="bottom">&nbsp;</TD>
    <TD align=left valign="bottom">&nbsp;</TD>
    <TD align=right valign="bottom">(2,632</TD>
    <TD align=left valign="bottom">) </TD>
    <TD align=left valign="bottom">&nbsp;</TD>
    <TD align=right valign="bottom">- </TD>
    <TD align=left valign="bottom">&nbsp;</TD>
    <TD align=left valign="bottom">&nbsp;</TD>
    <TD align=right valign="bottom">- </TD>
    <TD align=left valign="bottom">&nbsp;</TD>
    <TD align=left valign="bottom">&nbsp;</TD>
    <TD align=right valign="bottom">- </TD>
    <TD align=left valign="bottom">&nbsp;</TD>
    <TD align=left valign="bottom">&nbsp;</TD>
    <TD align=right valign="bottom">- </TD>
    <TD align=left valign="bottom">&nbsp;</TD>
    <TD align=left valign="bottom">&nbsp;</TD>
    <TD align=right valign="bottom">- </TD>
    <TD align=left valign="bottom">&nbsp;</TD>
    <TD align=left valign="bottom">&nbsp;</TD>
    <TD align=right valign="bottom">- </TD>
    <TD align=left valign="bottom">&nbsp;</TD>
    <TD align=left valign="bottom">&nbsp;</TD>
    <TD align=right valign="bottom">- </TD>
  <TD align=left valign="bottom">&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left valign="bottom" bgColor=#e6efff >Other comprehensive income</TD>
    <TD align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD align=right valign="bottom" bgColor=#e6efff>- </TD>
    <TD align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD align=right valign="bottom" bgColor=#e6efff>- </TD>
    <TD align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD align=right valign="bottom" bgColor=#e6efff>- </TD>
    <TD align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD align=right valign="bottom" bgColor=#e6efff>- </TD>
    <TD align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD align=right valign="bottom" bgColor=#e6efff>- </TD>
    <TD align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD align=right valign="bottom" bgColor=#e6efff>7,822 </TD>
    <TD align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD align=right valign="bottom" bgColor=#e6efff>- </TD>
    <TD align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD align=right valign="bottom" bgColor=#e6efff>7,822 </TD>
    <TD align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD align=right valign="bottom" bgColor=#e6efff>- </TD>
    <TD align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD align=right valign="bottom" bgColor=#e6efff>7,822 </TD>
  <TD align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left valign="bottom" >Loss for the year </TD>
    <TD
    align=left valign="bottom" style="BORDER-BOTTOM: #000000 1px solid">&nbsp;</TD>
    <TD align=right valign="bottom" style="BORDER-BOTTOM: #000000 1px solid">- </TD>
    <TD
    align=left valign="bottom" style="BORDER-BOTTOM: #000000 1px solid">&nbsp;</TD>
    <TD
    align=left valign="bottom" style="BORDER-BOTTOM: #000000 1px solid">&nbsp;</TD>
    <TD align=right valign="bottom" style="BORDER-BOTTOM: #000000 1px solid">- </TD>
    <TD
    align=left valign="bottom" style="BORDER-BOTTOM: #000000 1px solid">&nbsp;</TD>
    <TD
    align=left valign="bottom" style="BORDER-BOTTOM: #000000 1px solid">&nbsp;</TD>
    <TD align=right valign="bottom" style="BORDER-BOTTOM: #000000 1px solid">- </TD>
    <TD
    align=left valign="bottom" style="BORDER-BOTTOM: #000000 1px solid">&nbsp;</TD>
    <TD
    align=left valign="bottom" style="BORDER-BOTTOM: #000000 1px solid">&nbsp;</TD>
    <TD align=right valign="bottom" style="BORDER-BOTTOM: #000000 1px solid">- </TD>
    <TD
    align=left valign="bottom" style="BORDER-BOTTOM: #000000 1px solid">&nbsp;</TD>
    <TD
    align=left valign="bottom" style="BORDER-BOTTOM: #000000 1px solid">&nbsp;</TD>
    <TD align=right valign="bottom" style="BORDER-BOTTOM: #000000 1px solid">- </TD>
    <TD
    align=left valign="bottom" style="BORDER-BOTTOM: #000000 1px solid">&nbsp;</TD>
    <TD
    align=left valign="bottom" style="BORDER-BOTTOM: #000000 1px solid">&nbsp;</TD>
    <TD align=right valign="bottom" style="BORDER-BOTTOM: #000000 1px solid">- </TD>
    <TD
    align=left valign="bottom" style="BORDER-BOTTOM: #000000 1px solid">&nbsp;</TD>
    <TD
    align=left valign="bottom" style="BORDER-BOTTOM: #000000 1px solid">&nbsp;</TD>
    <TD
    align=right valign="bottom" style="BORDER-BOTTOM: #000000 1px solid">(13,193</TD>
    <TD
    align=left valign="bottom" style="BORDER-BOTTOM: #000000 1px solid">) </TD>
    <TD
    align=left valign="bottom" style="BORDER-BOTTOM: #000000 1px solid">&nbsp;</TD>
    <TD
    align=right valign="bottom" style="BORDER-BOTTOM: #000000 1px solid">(13,193</TD>
    <TD
    align=left valign="bottom" style="BORDER-BOTTOM: #000000 1px solid">) </TD>
    <TD
    align=left valign="bottom" style="BORDER-BOTTOM: #000000 1px solid">&nbsp;</TD>
    <TD align=right valign="bottom" style="BORDER-BOTTOM: #000000 1px solid">- </TD>
    <TD
    align=left valign="bottom" style="BORDER-BOTTOM: #000000 1px solid">&nbsp;</TD>
    <TD
    align=left valign="bottom" style="BORDER-BOTTOM: #000000 1px solid">&nbsp;</TD>
    <TD
    align=right valign="bottom" style="BORDER-BOTTOM: #000000 1px solid">(13,193</TD>
  <TD
    align=left valign="bottom" style="BORDER-BOTTOM: #000000 1px solid">) </TD>
  </TR>
  <TR>
    <TD valign="bottom" bgColor=#e6efff >&nbsp; </TD>
    <TD valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD valign="bottom" bgColor=#e6efff>&nbsp; </TD>
    <TD valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD valign="bottom" bgColor=#e6efff>&nbsp; </TD>
    <TD valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD valign="bottom" bgColor=#e6efff>&nbsp; </TD>
    <TD valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD valign="bottom" bgColor=#e6efff>&nbsp; </TD>
    <TD valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD valign="bottom" bgColor=#e6efff>&nbsp; </TD>
    <TD valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD valign="bottom" bgColor=#e6efff>&nbsp; </TD>
    <TD valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD valign="bottom" bgColor=#e6efff>&nbsp; </TD>
    <TD valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD valign="bottom" bgColor=#e6efff>&nbsp; </TD>
    <TD valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD valign="bottom" bgColor=#e6efff>&nbsp; </TD>
    <TD valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD valign="bottom" bgColor=#e6efff>&nbsp; </TD>
  <TD valign="bottom" bgColor=#e6efff>&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left valign="bottom" >Balance, December 31, 2009 </TD>
    <TD align=left valign="bottom">&nbsp;</TD>
    <TD align=right valign="bottom">71,965 </TD>
    <TD align=left valign="bottom">&nbsp;</TD>
    <TD align=left valign="bottom">&nbsp;</TD>
    <TD align=right valign="bottom">538,700 </TD>
    <TD align=left valign="bottom">&nbsp;</TD>
    <TD align=left valign="bottom">&nbsp;</TD>
    <TD align=right valign="bottom">40,417 </TD>
    <TD align=left valign="bottom">&nbsp;</TD>
    <TD align=left valign="bottom">&nbsp;</TD>
    <TD align=right valign="bottom">37,383 </TD>
    <TD align=left valign="bottom">&nbsp;</TD>
    <TD align=left valign="bottom">&nbsp;</TD>
    <TD align=right valign="bottom">510 </TD>
    <TD align=left valign="bottom">&nbsp;</TD>
    <TD align=left valign="bottom">&nbsp;</TD>
    <TD align=right valign="bottom">(11,747</TD>
    <TD align=left valign="bottom">) </TD>
    <TD align=left valign="bottom">&nbsp;</TD>
    <TD align=right valign="bottom">(68,573</TD>
    <TD align=left valign="bottom">) </TD>
    <TD align=left valign="bottom">&nbsp;</TD>
    <TD align=right valign="bottom">536,690 </TD>
    <TD align=left valign="bottom">&nbsp;</TD>
    <TD align=left valign="bottom">&nbsp;</TD>
    <TD align=right valign="bottom">496 </TD>
    <TD align=left valign="bottom">&nbsp;</TD>
    <TD align=left valign="bottom">&nbsp;</TD>
    <TD align=right valign="bottom">537,186 </TD>
  <TD align=left valign="bottom">&nbsp;</TD>
  </TR>
  <TR>
    <TD valign="bottom" bgColor=#e6efff >&nbsp; </TD>
    <TD valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD valign="bottom" bgColor=#e6efff>&nbsp; </TD>
    <TD valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD valign="bottom" bgColor=#e6efff>&nbsp; </TD>
    <TD valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD valign="bottom" bgColor=#e6efff>&nbsp; </TD>
    <TD valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD valign="bottom" bgColor=#e6efff>&nbsp; </TD>
    <TD valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD valign="bottom" bgColor=#e6efff>&nbsp; </TD>
    <TD valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD valign="bottom" bgColor=#e6efff>&nbsp; </TD>
    <TD valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD valign="bottom" bgColor=#e6efff>&nbsp; </TD>
    <TD valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD valign="bottom" bgColor=#e6efff>&nbsp; </TD>
    <TD valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD valign="bottom" bgColor=#e6efff>&nbsp; </TD>
    <TD valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD valign="bottom" bgColor=#e6efff>&nbsp; </TD>
  <TD valign="bottom" bgColor=#e6efff>&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left valign="bottom" >Issued for cash: </TD>
    <TD align=left valign="bottom">&nbsp;</TD>
    <TD align=left valign="bottom">&nbsp; </TD>
    <TD align=left valign="bottom">&nbsp;</TD>
    <TD align=left valign="bottom">&nbsp;</TD>
    <TD align=left valign="bottom">&nbsp; </TD>
    <TD align=left valign="bottom">&nbsp;</TD>
    <TD align=left valign="bottom">&nbsp;</TD>
    <TD align=left valign="bottom">&nbsp; </TD>
    <TD align=left valign="bottom">&nbsp;</TD>
    <TD align=left valign="bottom">&nbsp;</TD>
    <TD align=left valign="bottom">&nbsp; </TD>
    <TD align=left valign="bottom">&nbsp;</TD>
    <TD align=left valign="bottom">&nbsp;</TD>
    <TD align=left valign="bottom">&nbsp; </TD>
    <TD align=left valign="bottom">&nbsp;</TD>
    <TD align=left valign="bottom">&nbsp;</TD>
    <TD align=left valign="bottom">&nbsp; </TD>
    <TD align=left valign="bottom">&nbsp;</TD>
    <TD align=left valign="bottom">&nbsp;</TD>
    <TD align=left valign="bottom">&nbsp; </TD>
    <TD align=left valign="bottom">&nbsp;</TD>
    <TD align=left valign="bottom">&nbsp;</TD>
    <TD align=left valign="bottom">&nbsp; </TD>
    <TD align=left valign="bottom">&nbsp;</TD>
    <TD align=left valign="bottom">&nbsp;</TD>
    <TD align=left valign="bottom">&nbsp; </TD>
    <TD align=left valign="bottom">&nbsp;</TD>
    <TD align=left valign="bottom">&nbsp;</TD>
    <TD align=left valign="bottom">&nbsp; </TD>
  <TD align=left valign="bottom">&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left valign="bottom" bgColor=#e6efff >&nbsp;Public offering </TD>
    <TD align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD align=right valign="bottom" bgColor=#e6efff>6,729 </TD>
    <TD align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD align=right valign="bottom" bgColor=#e6efff>114,389 </TD>
    <TD align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD align=right valign="bottom" bgColor=#e6efff>- </TD>
    <TD align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD align=right valign="bottom" bgColor=#e6efff>- </TD>
    <TD align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD align=right valign="bottom" bgColor=#e6efff>- </TD>
    <TD align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD align=right valign="bottom" bgColor=#e6efff>- </TD>
    <TD align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD align=right valign="bottom" bgColor=#e6efff>- </TD>
    <TD align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD align=right valign="bottom" bgColor=#e6efff>114,389 </TD>
    <TD align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD align=right valign="bottom" bgColor=#e6efff>- </TD>
    <TD align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD align=right valign="bottom" bgColor=#e6efff>114,389 </TD>
  <TD align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left valign="bottom" >&nbsp;Share issue costs </TD>
    <TD align=left valign="bottom">&nbsp;</TD>
    <TD align=right valign="bottom">- </TD>
    <TD align=left valign="bottom">&nbsp;</TD>
    <TD align=left valign="bottom">&nbsp;</TD>
    <TD align=right valign="bottom">(4,821</TD>
    <TD align=left valign="bottom">) </TD>
    <TD align=left valign="bottom">&nbsp;</TD>
    <TD align=right valign="bottom">- </TD>
    <TD align=left valign="bottom">&nbsp;</TD>
    <TD align=left valign="bottom">&nbsp;</TD>
    <TD align=right valign="bottom">- </TD>
    <TD align=left valign="bottom">&nbsp;</TD>
    <TD align=left valign="bottom">&nbsp;</TD>
    <TD align=right valign="bottom">- </TD>
    <TD align=left valign="bottom">&nbsp;</TD>
    <TD align=left valign="bottom">&nbsp;</TD>
    <TD align=right valign="bottom">- </TD>
    <TD align=left valign="bottom">&nbsp;</TD>
    <TD align=left valign="bottom">&nbsp;</TD>
    <TD align=right valign="bottom">- </TD>
    <TD align=left valign="bottom">&nbsp;</TD>
    <TD align=left valign="bottom">&nbsp;</TD>
    <TD align=right valign="bottom">(4,821</TD>
    <TD align=left valign="bottom">) </TD>
    <TD align=left valign="bottom">&nbsp;</TD>
    <TD align=right valign="bottom">- </TD>
    <TD align=left valign="bottom">&nbsp;</TD>
    <TD align=left valign="bottom">&nbsp;</TD>
    <TD align=right valign="bottom">(4,821</TD>
  <TD align=left valign="bottom">) </TD>
  </TR>
  <TR vAlign=top>
    <TD align=left valign="bottom" bgColor=#e6efff >&nbsp;Exercise of options </TD>
    <TD align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD align=right valign="bottom" bgColor=#e6efff>971 </TD>
    <TD align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD align=right valign="bottom" bgColor=#e6efff>16,318 </TD>
    <TD align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD align=right valign="bottom" bgColor=#e6efff>- </TD>
    <TD align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD align=right valign="bottom" bgColor=#e6efff>- </TD>
    <TD align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD align=right valign="bottom" bgColor=#e6efff>- </TD>
    <TD align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD align=right valign="bottom" bgColor=#e6efff>- </TD>
    <TD align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD align=right valign="bottom" bgColor=#e6efff>- </TD>
    <TD align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD align=right valign="bottom" bgColor=#e6efff>16,318 </TD>
    <TD align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD align=right valign="bottom" bgColor=#e6efff>- </TD>
    <TD align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD align=right valign="bottom" bgColor=#e6efff>16,318 </TD>
  <TD align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left valign="bottom" >Stock based compensation expense </TD>
    <TD align=left valign="bottom">&nbsp;</TD>
    <TD align=right valign="bottom">- </TD>
    <TD align=left valign="bottom">&nbsp;</TD>
    <TD align=left valign="bottom">&nbsp;</TD>
    <TD align=right valign="bottom">- </TD>
    <TD align=left valign="bottom">&nbsp;</TD>
    <TD align=left valign="bottom">&nbsp;</TD>
    <TD align=right valign="bottom">9,199 </TD>
    <TD align=left valign="bottom">&nbsp;</TD>
    <TD align=left valign="bottom">&nbsp;</TD>
    <TD align=right valign="bottom">- </TD>
    <TD align=left valign="bottom">&nbsp;</TD>
    <TD align=left valign="bottom">&nbsp;</TD>
    <TD align=right valign="bottom">- </TD>
    <TD align=left valign="bottom">&nbsp;</TD>
    <TD align=left valign="bottom">&nbsp;</TD>
    <TD align=right valign="bottom">- </TD>
    <TD align=left valign="bottom">&nbsp;</TD>
    <TD align=left valign="bottom">&nbsp;</TD>
    <TD align=right valign="bottom">- </TD>
    <TD align=left valign="bottom">&nbsp;</TD>
    <TD align=left valign="bottom">&nbsp;</TD>
    <TD align=right valign="bottom">9,199 </TD>
    <TD align=left valign="bottom">&nbsp;</TD>
    <TD align=left valign="bottom">&nbsp;</TD>
    <TD align=right valign="bottom">- </TD>
    <TD align=left valign="bottom">&nbsp;</TD>
    <TD align=left valign="bottom">&nbsp;</TD>
    <TD align=right valign="bottom">9,199 </TD>
  <TD align=left valign="bottom">&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left valign="bottom" bgColor=#e6efff >Value of options exercised</TD>
    <TD align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD align=right valign="bottom" bgColor=#e6efff>- </TD>
    <TD align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD align=right valign="bottom" bgColor=#e6efff>6,956 </TD>
    <TD align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD align=right valign="bottom" bgColor=#e6efff>(6,956</TD>
    <TD align=left valign="bottom" bgColor=#e6efff>) </TD>
    <TD align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD align=right valign="bottom" bgColor=#e6efff>- </TD>
    <TD align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD align=right valign="bottom" bgColor=#e6efff>- </TD>
    <TD align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD align=right valign="bottom" bgColor=#e6efff>- </TD>
    <TD align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD align=right valign="bottom" bgColor=#e6efff>- </TD>
    <TD align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD align=right valign="bottom" bgColor=#e6efff>- </TD>
    <TD align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD align=right valign="bottom" bgColor=#e6efff>- </TD>
    <TD align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD align=right valign="bottom" bgColor=#e6efff>- </TD>
  <TD align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left valign="bottom" >Other comprehensive income </TD>
    <TD align=left valign="bottom">&nbsp;</TD>
    <TD align=right valign="bottom">- </TD>
    <TD align=left valign="bottom">&nbsp;</TD>
    <TD align=left valign="bottom">&nbsp;</TD>
    <TD align=right valign="bottom">- </TD>
    <TD align=left valign="bottom">&nbsp;</TD>
    <TD align=left valign="bottom">&nbsp;</TD>
    <TD align=right valign="bottom">- </TD>
    <TD align=left valign="bottom">&nbsp;</TD>
    <TD align=left valign="bottom">&nbsp;</TD>
    <TD align=right valign="bottom">- </TD>
    <TD align=left valign="bottom">&nbsp;</TD>
    <TD align=left valign="bottom">&nbsp;</TD>
    <TD align=right valign="bottom">- </TD>
    <TD align=left valign="bottom">&nbsp;</TD>
    <TD align=left valign="bottom">&nbsp;</TD>
    <TD align=right valign="bottom">13,262 </TD>
    <TD align=left valign="bottom">&nbsp;</TD>
    <TD align=left valign="bottom">&nbsp;</TD>
    <TD align=right valign="bottom">- </TD>
    <TD align=left valign="bottom">&nbsp;</TD>
    <TD align=left valign="bottom">&nbsp;</TD>
    <TD align=right valign="bottom">13,262 </TD>
    <TD align=left valign="bottom">&nbsp;</TD>
    <TD align=left valign="bottom">&nbsp;</TD>
    <TD align=right valign="bottom">- </TD>
    <TD align=left valign="bottom">&nbsp;</TD>
    <TD align=left valign="bottom">&nbsp;</TD>
    <TD align=right valign="bottom">13,262 </TD>
  <TD align=left valign="bottom">&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left valign="bottom" bgColor=#e6efff >Earnings for the year </TD>
    <TD align=left valign="bottom" bgColor=#e6efff style="BORDER-BOTTOM: #000000 1px solid">&nbsp;</TD>
    <TD
    align=right valign="bottom" bgColor=#e6efff style="BORDER-BOTTOM: #000000 1px solid">- </TD>
    <TD align=left valign="bottom" bgColor=#e6efff style="BORDER-BOTTOM: #000000 1px solid">&nbsp;</TD>
    <TD align=left valign="bottom" bgColor=#e6efff style="BORDER-BOTTOM: #000000 1px solid">&nbsp;</TD>
    <TD
    align=right valign="bottom" bgColor=#e6efff style="BORDER-BOTTOM: #000000 1px solid">- </TD>
    <TD align=left valign="bottom" bgColor=#e6efff style="BORDER-BOTTOM: #000000 1px solid">&nbsp;</TD>
    <TD align=left valign="bottom" bgColor=#e6efff style="BORDER-BOTTOM: #000000 1px solid">&nbsp;</TD>
    <TD
    align=right valign="bottom" bgColor=#e6efff style="BORDER-BOTTOM: #000000 1px solid">- </TD>
    <TD align=left valign="bottom" bgColor=#e6efff style="BORDER-BOTTOM: #000000 1px solid">&nbsp;</TD>
    <TD align=left valign="bottom" bgColor=#e6efff style="BORDER-BOTTOM: #000000 1px solid">&nbsp;</TD>
    <TD
    align=right valign="bottom" bgColor=#e6efff style="BORDER-BOTTOM: #000000 1px solid">- </TD>
    <TD align=left valign="bottom" bgColor=#e6efff style="BORDER-BOTTOM: #000000 1px solid">&nbsp;</TD>
    <TD align=left valign="bottom" bgColor=#e6efff style="BORDER-BOTTOM: #000000 1px solid">&nbsp;</TD>
    <TD
    align=right valign="bottom" bgColor=#e6efff style="BORDER-BOTTOM: #000000 1px solid">- </TD>
    <TD align=left valign="bottom" bgColor=#e6efff style="BORDER-BOTTOM: #000000 1px solid">&nbsp;</TD>
    <TD align=left valign="bottom" bgColor=#e6efff style="BORDER-BOTTOM: #000000 1px solid">&nbsp;</TD>
    <TD
    align=right valign="bottom" bgColor=#e6efff style="BORDER-BOTTOM: #000000 1px solid">- </TD>
    <TD align=left valign="bottom" bgColor=#e6efff style="BORDER-BOTTOM: #000000 1px solid">&nbsp;</TD>
    <TD align=left valign="bottom" bgColor=#e6efff style="BORDER-BOTTOM: #000000 1px solid">&nbsp;</TD>
    <TD
    align=right valign="bottom" bgColor=#e6efff style="BORDER-BOTTOM: #000000 1px solid">346,239 </TD>
    <TD align=left valign="bottom" bgColor=#e6efff style="BORDER-BOTTOM: #000000 1px solid">&nbsp;</TD>
    <TD align=left valign="bottom" bgColor=#e6efff style="BORDER-BOTTOM: #000000 1px solid">&nbsp;</TD>
    <TD
    align=right valign="bottom" bgColor=#e6efff style="BORDER-BOTTOM: #000000 1px solid">346,239 </TD>
    <TD align=left valign="bottom" bgColor=#e6efff style="BORDER-BOTTOM: #000000 1px solid">&nbsp;</TD>
    <TD align=left valign="bottom" bgColor=#e6efff style="BORDER-BOTTOM: #000000 1px solid">&nbsp;</TD>
    <TD
    align=right valign="bottom" bgColor=#e6efff style="BORDER-BOTTOM: #000000 1px solid">- </TD>
    <TD align=left valign="bottom" bgColor=#e6efff style="BORDER-BOTTOM: #000000 1px solid">&nbsp;</TD>
    <TD align=left valign="bottom" bgColor=#e6efff style="BORDER-BOTTOM: #000000 1px solid">&nbsp;</TD>
    <TD
    align=right valign="bottom" bgColor=#e6efff style="BORDER-BOTTOM: #000000 1px solid">346,239 </TD>
  <TD align=left valign="bottom" bgColor=#e6efff style="BORDER-BOTTOM: #000000 1px solid">&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left valign="bottom" ><B>Balance, December 31, 2010</B> </TD>
    <TD
    align=left valign="bottom" style="BORDER-BOTTOM: #000000 1px solid">&nbsp;</TD>
    <TD
      align=right valign="bottom" style="BORDER-BOTTOM: #000000 1px solid"><B>79,665</B> </TD>
    <TD
    align=left valign="bottom" style="BORDER-BOTTOM: #000000 1px solid">&nbsp;</TD>
    <TD
    align=left valign="bottom" style="BORDER-BOTTOM: #000000 1px solid">&nbsp;</TD>
    <TD
      align=right valign="bottom" style="BORDER-BOTTOM: #000000 1px solid"><B>671,542</B> </TD>
    <TD
    align=left valign="bottom" style="BORDER-BOTTOM: #000000 1px solid">&nbsp;</TD>
    <TD
    align=left valign="bottom" style="BORDER-BOTTOM: #000000 1px solid">&nbsp;</TD>
    <TD
      align=right valign="bottom" style="BORDER-BOTTOM: #000000 1px solid"><B>42,660</B> </TD>
    <TD
    align=left valign="bottom" style="BORDER-BOTTOM: #000000 1px solid">&nbsp;</TD>
    <TD
    align=left valign="bottom" style="BORDER-BOTTOM: #000000 1px solid">&nbsp;</TD>
    <TD
      align=right valign="bottom" style="BORDER-BOTTOM: #000000 1px solid"><B>37,383</B> </TD>
    <TD
    align=left valign="bottom" style="BORDER-BOTTOM: #000000 1px solid">&nbsp;</TD>
    <TD
    align=left valign="bottom" style="BORDER-BOTTOM: #000000 1px solid">&nbsp;</TD>
    <TD
      align=right valign="bottom" style="BORDER-BOTTOM: #000000 1px solid"><B>510</B> </TD>
    <TD
    align=left valign="bottom" style="BORDER-BOTTOM: #000000 1px solid">&nbsp;</TD>
    <TD
    align=left valign="bottom" style="BORDER-BOTTOM: #000000 1px solid">&nbsp;</TD>
    <TD
      align=right valign="bottom" style="BORDER-BOTTOM: #000000 1px solid"><B>1,515</B> </TD>
    <TD
    align=left valign="bottom" style="BORDER-BOTTOM: #000000 1px solid">&nbsp;</TD>
    <TD
    align=left valign="bottom" style="BORDER-BOTTOM: #000000 1px solid">&nbsp;</TD>
    <TD
      align=right valign="bottom" style="BORDER-BOTTOM: #000000 1px solid"><B>277,666</B> </TD>
    <TD
    align=left valign="bottom" style="BORDER-BOTTOM: #000000 1px solid">&nbsp;</TD>
    <TD
    align=left valign="bottom" style="BORDER-BOTTOM: #000000 1px solid">&nbsp;</TD>
    <TD
      align=right valign="bottom" style="BORDER-BOTTOM: #000000 1px solid"><B>1,031,276</B> </TD>
    <TD
    align=left valign="bottom" style="BORDER-BOTTOM: #000000 1px solid">&nbsp;</TD>
    <TD
    align=left valign="bottom" style="BORDER-BOTTOM: #000000 1px solid">&nbsp;</TD>
    <TD
      align=right valign="bottom" style="BORDER-BOTTOM: #000000 1px solid"><B>496</B> </TD>
    <TD
    align=left valign="bottom" style="BORDER-BOTTOM: #000000 1px solid">&nbsp;</TD>
    <TD
    align=left valign="bottom" style="BORDER-BOTTOM: #000000 1px solid">&nbsp;</TD>
    <TD
      align=right valign="bottom" style="BORDER-BOTTOM: #000000 1px solid"><B>1,031,772</B> </TD>
  <TD
    align=left valign="bottom" style="BORDER-BOTTOM: #000000 1px solid">&nbsp;</TD>
  </TR></TABLE>
<P align=center>The accompanying notes are an integral part of the consolidated
financial statements</P>
<P align=right>5</P>
<HR style="PAGE-BREAK-AFTER: always" align=center color=black SIZE=5
width="100%" noShade>
<!--$$/page=--><A name=page_12></A><BR>
<TABLE
style="BORDER-COLOR: black; BORDER-COLLAPSE: collapse; FONT-SIZE: 10pt; "
border=0 cellSpacing=0 cellPadding=0 width="100%">

  <TR vAlign=top>
    <TD align=left><B>Silver Standard Resources Inc.</B> </TD></TR>
  <TR vAlign=top>
    <TD align=left>Notes to Consolidated Financial Statements </TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>December 31, 2010,
      2009 and 2008 </TD></TR>
  <TR vAlign=top>
    <TD align=left>(tabular amounts expressed in thousands of United States
      dollars unless otherwise stated) </TD></TR></TABLE><BR>
<TABLE
style="BORDER-COLOR: black; BORDER-COLLAPSE: collapse; FONT-SIZE: 10pt; "
border=0 cellSpacing=0 cellPadding=0 width="100%" BCLLIST>

  <TR>
    <TD vAlign=top width="5%"><B>1</B> </TD>
    <TD>
      <P align=justify><B>NATURE OF OPERATIONS</B></P></TD></TR>
  <TR>
    <TD width="5%">&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
  <TR>
    <TD width="5%"></TD>
    <TD>
      <P align=justify>We are a mining company that has assembled a portfolio of
      silver-dominant projects since 1994. These projects are located
      predominantly in the Americas. Prior to December 1, 2009, we were a
      development stage company. With the Pirquitas Project entering production
      December 2009, we are now focused on operating and producing silver from
      our Pirquitas Mine, and on advancing our other principal projects and
      project pipeline. These include the San Luis, Pitarrilla, San Agustin and
      Diablillos projects. In addition to our principal projects, we hold a
      geologically-diverse portfolio of other predominantly silver projects in
      various stages of exploration. Certain of our projects also contain
      significant gold resources.</P></TD></TR>
  <TR>
    <TD width="5%">&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
  <TR>
    <TD width="5%"></TD>
    <TD>
      <P align=justify>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 of those properties, our ability to
      dispose of them on an advantageous basis, and upon future profitable
      production. The amounts shown as mineral properties represent net costs to
      date, less amounts amortized and/or written-off, and do not necessarily
      represent present or future values.</P></TD></TR>
  <TR>
    <TD width="5%">&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
  <TR>
    <TD vAlign=top width="5%"><B>2</B> </TD>
    <TD>
      <P align=justify><B>SIGNIFICANT ACCOUNTING POLICIES</B></P></TD></TR>
  <TR>
    <TD width="5%">&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
  <TR>
    <TD width="5%"></TD>
    <TD>
      <P align=justify><B>Generally accepted accounting principles</B></P></TD></TR>
  <TR>
    <TD width="5%">&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
  <TR>
    <TD width="5%"></TD>
    <TD>
      <P align=justify>These consolidated financial statements have been
      prepared in accordance with Canadian generally accepted accounting
      principles (&#147;Canadian GAAP&#148;). The significant differences between these
      principles and those that would be applied under U.S. generally accepted
      accounting principles and requirements promulgated by the Securities and
      Exchange Commission (collectively &#147;U.S. GAAP&#148;), as they affect the
      company, are disclosed in note 21.</P></TD></TR>
  <TR>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
  </TR>
  <TR>
    <TD>&nbsp;</TD>
    <TD><b>Basis of presentation</b></TD>
  </TR>
  <TR>
    <TD width="5%">&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
  <TR>
    <TD width="5%"></TD>
    <TD>
      <P align=justify>The consolidated financial statements include the
      accounts of the company and its wholly-owned subsidiaries, the most
      significant of which are presented in the following
  table:</P></TD></TR></TABLE>
<BR>
<DIV align=right>
<TABLE
style="BORDER-COLOR: black; BORDER-COLLAPSE: collapse; FONT-SIZE: 10pt; "
border=0 cellSpacing=0 cellPadding=0 width="95%">

  <TR vAlign=top>
    <TD align=left valign="bottom" style="BORDER-BOTTOM: #000000 1px solid"
      >Subsidiary </TD>
    <TD width="20%"
      align=left valign="bottom" style="BORDER-BOTTOM: #000000 1px solid">Location </TD>
    <TD width="20%"
      align=left valign="bottom" style="BORDER-BOTTOM: #000000 1px solid">Ownership </TD>
    <TD width="20%"
      align=left valign="bottom" style="BORDER-BOTTOM: #000000 1px solid">Project </TD>
  </TR>
  <TR>
    <TD valign="bottom" >&nbsp; </TD>
    <TD width="20%" valign="bottom">&nbsp; </TD>
    <TD width="20%" valign="bottom">&nbsp; </TD>
    <TD width="20%" valign="bottom">&nbsp; </TD>
  </TR>
  <TR vAlign=top>
    <TD align=left valign="bottom" bgColor=#e6efff >Candelaria Mining Company </TD>
    <TD width="20%" align=left valign="bottom" bgColor=#e6efff>Delaware </TD>
    <TD width="20%" align=left valign="bottom" bgColor=#e6efff>100% </TD>
    <TD width="20%" align=left valign="bottom" bgColor=#e6efff>Candelaria </TD>
  </TR>
  <TR vAlign=top>
    <TD align=left valign="bottom" >Mina Pirquitas, Inc. </TD>
    <TD width="20%" align=left valign="bottom">Delaware </TD>
    <TD width="20%" align=left valign="bottom">100% </TD>
    <TD width="20%" align=left valign="bottom">Pirquitas </TD>
  </TR>
  <TR vAlign=top>
    <TD align=left valign="bottom" bgColor=#e6efff >Maverick Silver Inc. </TD>
    <TD width="20%" align=left valign="bottom" bgColor=#e6efff>Nevada </TD>
    <TD width="20%" align=left valign="bottom" bgColor=#e6efff>100% </TD>
    <TD width="20%" align=left valign="bottom" bgColor=#e6efff>Maverick Springs </TD>
  </TR>
  <TR vAlign=top>
    <TD align=left valign="bottom" >Sociedad Minera Berenguela S.A. </TD>
    <TD width="20%" align=left valign="bottom">Peru </TD>
    <TD width="20%" align=left valign="bottom">100% </TD>
    <TD width="20%" align=left valign="bottom">Berenguela </TD>
  </TR>
  <TR vAlign=top>
    <TD align=left valign="bottom" bgColor=#e6efff >Reliant Ventures S.A.C. </TD>
    <TD width="20%" align=left valign="bottom" bgColor=#e6efff>Peru </TD>
    <TD width="20%" align=left valign="bottom" bgColor=#e6efff>70% </TD>
    <TD width="20%" align=left valign="bottom" bgColor=#e6efff>San Luis<SUP>(1)</SUP> </TD>
  </TR>
  <TR vAlign=top>
    <TD align=left valign="bottom" >Minera Silver Standard Chile S.A. </TD>
    <TD width="20%" align=left valign="bottom">Chile </TD>
    <TD width="20%" align=left valign="bottom">100% </TD>
    <TD width="20%" align=left valign="bottom">Challacollo </TD>
  </TR>
  <TR vAlign=top>
    <TD align=left valign="bottom" bgColor=#e6efff >Pacific Rim Mining
      Corporation Argentina, S.A. </TD>
    <TD width="20%" align=left valign="bottom" bgColor=#e6efff>Argentina </TD>
    <TD width="20%" align=left valign="bottom" bgColor=#e6efff>100% </TD>
    <TD width="20%" align=left valign="bottom" bgColor=#e6efff>Diablillos </TD>
  </TR>
  <TR vAlign=top>
    <TD align=left valign="bottom" >Silver Standard Australia Pty Limited </TD>
    <TD width="20%" align=left valign="bottom">Australia </TD>
    <TD width="20%" align=left valign="bottom">100% </TD>
    <TD width="20%" align=left valign="bottom">Bowdens </TD>
  </TR>
  <TR vAlign=top>
    <TD align=left valign="bottom" bgColor=#e6efff >Silver Standard Durango S.A.
      de C.V. </TD>
    <TD width="20%" align=left valign="bottom" bgColor=#e6efff>Mexico </TD>
    <TD width="20%" align=left valign="bottom" bgColor=#e6efff>100% </TD>
    <TD width="20%" align=left valign="bottom" bgColor=#e6efff>Pitarrilla </TD>
  </TR>
  <TR vAlign=top>
    <TD align=left valign="bottom" >Silver Standard Mexico S.A de C.V </TD>
    <TD width="20%" align=left valign="bottom">Mexico </TD>
    <TD width="20%" align=left valign="bottom">100% </TD>
    <TD width="20%" align=left valign="bottom">San Marcial, Nazas and </TD>
  </TR>
  <TR vAlign=top>
    <TD align=left valign="bottom" bgColor=#e6efff >&nbsp; </TD>
    <TD width="20%" align=left valign="bottom" bgColor=#e6efff>&nbsp; </TD>
    <TD width="20%" align=left valign="bottom" bgColor=#e6efff>&nbsp; </TD>
    <TD width="20%" align=left valign="bottom" bgColor=#e6efff>others </TD>
  </TR>
  <TR vAlign=top>
    <TD align=left valign="bottom" >Silver Standard Exploraciones S.A. de C.V.</TD>
    <TD width="20%" align=left valign="bottom">Mexico </TD>
    <TD width="20%" align=left valign="bottom">100% </TD>
    <TD width="20%" align=left valign="bottom">Veta Colorada and others</TD>
  </TR></TABLE></DIV>
<P style="MARGIN-LEFT: 5%" align=justify><SUP>(1)</SUP>See also note 20
&#147;subsequent events&#148;</P>
<P style="MARGIN-LEFT: 5%" align=justify>All inter-company transactions and
balances have been eliminated on consolidation.</P>
<P align=right>6</P>
<HR style="PAGE-BREAK-AFTER: always" align=center color=black SIZE=5
width="100%" noShade>
<!--$$/page=--><A name=page_13></A><BR>
<TABLE
style="BORDER-COLOR: black; BORDER-COLLAPSE: collapse; FONT-SIZE: 10pt; "
border=0 cellSpacing=0 cellPadding=0 width="100%">

  <TR vAlign=top>
    <TD align=left><B>Silver Standard Resources Inc.</B> </TD></TR>
  <TR vAlign=top>
    <TD align=left>Notes to Consolidated Financial Statements </TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>December 31, 2010,
      2009 and 2008 </TD></TR>
  <TR vAlign=top>
    <TD align=left>(tabular amounts expressed in thousands of United States
      dollars unless otherwise stated) </TD></TR></TABLE><BR>
<TABLE
style="BORDER-COLOR: black; BORDER-COLLAPSE: collapse; FONT-SIZE: 10pt; "
border=0 cellSpacing=0 cellPadding=0 width="100%" BCLLIST>

  <TR>
    <TD vAlign=top width="5%"><B>2</B> </TD>
    <TD>
      <P align=justify><B>SIGNIFICANT ACCOUNTING POLICIES (Cont&#146;d)</B></P></TD></TR>
  <TR>
    <TD width="5%">&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
  <TR>
    <TD width="5%"></TD>
    <TD>
      <P align=justify><B>Use of estimates</B></P></TD></TR>
  <TR>
    <TD width="5%">&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
  <TR>
    <TD width="5%"></TD>
    <TD>
      <P align=justify>The preparation of financial statements in conformity
      with Canadian generally accepted accounting principles requires management
      to make estimates and assumptions that affect the amounts reported in the
      consolidated financial statements and related notes. Significant areas
      where management&#146;s judgment is applied are accounts receivable,
      inventories, convertible debenture receivable, accrued liabilities,
      convertible notes, depreciation, the assessment of asset impairment,
      stock-based compensation, future income tax valuation reserves, ore
      reserve determinations and asset retirement obligations. Actual results
      could differ from those estimates.</P></TD></TR>
  <TR>
    <TD width="5%">&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
  <TR>
    <TD width="5%"></TD>
    <TD>
      <P align=justify><B>Reclassifications</B></P></TD></TR>
  <TR>
    <TD width="5%">&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
  <TR>
    <TD width="5%"></TD>
    <TD>
      <P align=justify>Certain reclassifications of prior year balances have
      been made to conform to the current year presentation. These
      reclassifications have had no impact on previously reported total current
      assets, total assets and working capital position, and do not affect
      previously reported cash flows from investing and financing
    activities.</P></TD></TR>
  <TR>
    <TD width="5%">&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
  <TR>
    <TD width="5%"></TD>
    <TD>
      <P align=justify><B>Foreign currency translation</B></P></TD></TR>
  <TR>
    <TD width="5%">&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
  <TR>
    <TD width="5%"></TD>
    <TD>
      <P align=justify>Effective January 1, 2009, we determined that our
      functional currency had changed from the Canadian dollar to the U.S.
      dollar as a result of a change in the nature of our operations. As a
      result of the change in our functional currency, effective January 1,
      2009, our integrated foreign currency operations have been translated to
      U.S. 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).</P></TD></TR>
  <TR>
    <TD width="5%">&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
  <TR>
    <TD width="5%"></TD>
    <TD>
      <P align=justify><B>Financial Instruments</B></P></TD></TR>
  <TR>
    <TD width="5%">&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
  <TR>
    <TD width="5%"></TD>
    <TD>
      <P align=justify>Our financial instruments are comprised of cash and cash
      equivalents, marketable securities, accounts receivable, restricted cash,
      convertible debenture receivable, accounts payable, accrued liabilities,
      and convertible notes.</P></TD></TR>
  <TR>
    <TD width="5%">&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
  <TR>
    <TD width="5%"></TD>
    <TD>
      <P align=justify><I>Cash and cash equivalents</I></P></TD></TR>
  <TR>
    <TD width="5%">&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
  <TR>
    <TD width="5%"></TD>
    <TD>
      <P align=justify>Cash and cash equivalents include cash, bank balances and
      short-term investments with original maturities of 90 days or less. Cash
      equivalents are composed of short-term investments held with provinces of
      Canada, and federally with Canada or the United States of America or their
      respective agencies. Cash and cash equivalents are designated as loans and
      receivables.</P></TD></TR>
  <TR>
    <TD width="5%">&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
  <TR>
    <TD width="5%"></TD>
    <TD>
      <P align=justify><I>Accounts receivable</I></P></TD></TR>
  <TR>
    <TD width="5%">&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
  <TR>
    <TD width="5%"></TD>
    <TD>
      <P align=justify>Accounts receivable are designated as loans and
      receivables and are stated at carrying values, which approximate fair
      values due to their short-term maturity or capacity of prompt
      liquidation.</P></TD></TR></TABLE>
<P align=right>7</P>
<HR style="PAGE-BREAK-AFTER: always" align=center color=black SIZE=5
width="100%" noShade>
<!--$$/page=--><A name=page_14></A><BR>
<TABLE
style="BORDER-COLOR: black; BORDER-COLLAPSE: collapse; FONT-SIZE: 10pt; "
border=0 cellSpacing=0 cellPadding=0 width="100%">

  <TR vAlign=top>
    <TD align=left><B>Silver Standard Resources Inc.</B> </TD></TR>
  <TR vAlign=top>
    <TD align=left>Notes to Consolidated Financial Statements </TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>December 31, 2010,
      2009 and 2008 </TD></TR>
  <TR vAlign=top>
    <TD align=left>(tabular amounts expressed in thousands of United States
      dollars unless otherwise stated) </TD></TR></TABLE><BR>
<TABLE
style="BORDER-COLOR: black; BORDER-COLLAPSE: collapse; FONT-SIZE: 10pt; "
border=0 cellSpacing=0 cellPadding=0 width="100%" BCLLIST>

  <TR>
    <TD vAlign=top width="5%"><B>2</B> </TD>
    <TD>
      <P align=justify><B>SIGNIFICANT ACCOUNTING POLICIES (Cont&#146;d)</B></P></TD></TR>
  <TR>
    <TD width="5%">&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
  <TR>
    <TD width="5%"></TD>
    <TD>
      <P align=justify><I>Marketable securities</I></P></TD></TR>
  <TR>
    <TD width="5%">&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
  <TR>
    <TD width="5%"></TD>
    <TD>
      <P align=justify>Marketable securities are reported at their fair market
      value based on quoted market prices. Marketable securities are designated
      as available-for-sale financial instruments.</P></TD></TR>
  <TR>
    <TD width="5%">&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
  <TR>
    <TD width="5%"></TD>
    <TD>
      <P align=justify><I>Restricted cash</I></P></TD></TR>
  <TR>
    <TD width="5%">&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
  <TR>
    <TD width="5%"></TD>
    <TD>
      <P align=justify>Restricted cash is designated as
    available-for-sale.</P></TD></TR>
  <TR>
    <TD width="5%">&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
  <TR>
    <TD width="5%"></TD>
    <TD>
      <P align=justify><I>Convertible debenture receivable</I></P></TD></TR>
  <TR>
    <TD width="5%">&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
  <TR>
    <TD width="5%"></TD>
    <TD>
      <P align=justify>Convertible debenture receivable consists of a note
      receivable component and a conversion feature component. The note
      receivable component is designated within loans and receivable and is
      recorded at amortized cost. The conversion feature is a derivative and is
      recorded at fair value based on the Black- Scholes model, with changes in
      fair value reflected in earnings.</P></TD></TR>
  <TR>
    <TD width="5%">&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
  <TR>
    <TD width="5%"></TD>
    <TD>
      <P align=justify><I>Accounts payable and accrued liabilities</I></P></TD></TR>
  <TR>
    <TD width="5%">&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
  <TR>
    <TD width="5%"></TD>
    <TD>
      <P align=justify>Accounts payable and accrued liabilities are designated
      as other liabilities and are stated at carrying values, which approximate
      fair value due to their short-term maturity.</P></TD></TR>
  <TR>
    <TD width="5%">&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
  <TR>
    <TD width="5%"></TD>
    <TD>
      <P align=justify><I>Convertible notes</I></P></TD></TR>
  <TR>
    <TD width="5%">&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
  <TR>
    <TD width="5%"></TD>
    <TD>
      <P align=justify>The fair value of the convertible notes was initially
      allocated between debt and equity (note 11). The debt component of the
      convertible notes is designated as an other liability and related
      transaction costs on the debt component were expensed as incurred.
      Interest expense related to development expenditures incurred on the
      Pirquitas Project was capitalized to construction in progress until the
      commencement of production in December 2009.</P></TD></TR>
  <TR>
    <TD width="5%">&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
  <TR>
    <TD width="5%"></TD>
    <TD>
      <P align=justify><B>Inventories</B></P></TD></TR>
  <TR>
    <TD width="5%">&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
  <TR>
    <TD width="5%"></TD>
    <TD>
      <P align=justify>Stockpiled ore and finished goods inventories are valued
      at the lower of cost and estimated net realizable value (&#147;NRV&#148;). Cost
      includes all direct costs incurred in production including direct labour
      and materials, freight, depreciation and amortization and directly
      attributable overhead costs. Production stripping costs are included in
      inventories as incurred. NRV is calculated as the estimated price at the
      time of sale based on prevailing and future metal prices less estimated
      future production costs to convert the inventories into saleable form and
      the estimated costs to sell.</P></TD></TR>
  <TR>
    <TD width="5%">&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
  <TR>
    <TD width="5%"></TD>
    <TD>
      <P align=justify>Any write-downs of inventory to NRV are recorded as cost
      of sales in the Statement of Earnings (Loss). If there is a subsequent
      increase in the value of inventories, the previous write-downs to NRV are
      reversed to the extent that the related inventory has not been
  sold.</P></TD></TR>
  <TR>
    <TD width="5%">&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
  <TR>
    <TD width="5%"></TD>
    <TD>
      <P align=justify>Stockpiled ore inventory represents ore that has been
      extracted from the mine and is available for further processing and
      includes fine ore stockpile, after crushing. Costs added to stockpiled ore
      inventory are valued based on current mining cost per tonne incurred up to
      the point of stockpiling the ore and are removed at the average cost per
      tonne. Stockpiled ore tonnages are verified by periodic
  surveys.</P></TD></TR></TABLE>
<P align=right>8</P>
<HR style="PAGE-BREAK-AFTER: always" align=center color=black SIZE=5
width="100%" noShade>
<!--$$/page=--><A name=page_15></A><BR>
<TABLE
style="BORDER-COLOR: black; BORDER-COLLAPSE: collapse; FONT-SIZE: 10pt; "
border=0 cellSpacing=0 cellPadding=0 width="100%">

  <TR vAlign=top>
    <TD align=left><B>Silver Standard Resources Inc.</B> </TD></TR>
  <TR vAlign=top>
    <TD align=left>Notes to Consolidated Financial Statements </TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>December 31, 2010,
      2009 and 2008 </TD></TR>
  <TR vAlign=top>
    <TD align=left>(tabular amounts expressed in thousands of United States
      dollars unless otherwise stated) </TD></TR></TABLE><BR>
<TABLE
style="BORDER-COLOR: black; BORDER-COLLAPSE: collapse; FONT-SIZE: 10pt; "
border=0 cellSpacing=0 cellPadding=0 width="100%" BCLLIST>

  <TR>
    <TD vAlign=top width="5%"><B>2</B> </TD>
    <TD>
      <P align=justify><B>SIGNIFICANT ACCOUNTING POLICIES (Cont&#146;d)</B></P></TD></TR>
  <TR>
    <TD width="5%">&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
  <TR>
    <TD width="5%"></TD>
    <TD>
      <P align=justify>Finished goods inventory includes concentrates at our
      Pirquitas mine and in transit inventory.</P></TD></TR>
  <TR>
    <TD width="5%">&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
  <TR>
    <TD width="5%"></TD>
    <TD>
      <P align=justify>Materials and supplies inventories are valued at the
      lower of average cost and NRV. Costs include acquisition, freight and
      other directly attributable costs.</P></TD></TR>
  <TR>
    <TD width="5%">&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
  <TR>
    <TD width="5%"></TD>
    <TD>
      <P align=justify><B>Mineral property costs and property, plant and
      equipment</B></P></TD></TR>
  <TR>
    <TD width="5%">&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
  <TR>
    <TD width="5%"></TD>
    <TD>
      <P align=justify><I>Mineral property costs</I></P></TD></TR>
  <TR>
    <TD width="5%">&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
  <TR>
    <TD width="5%"></TD>
    <TD>
      <P align=justify>We record our interests in mineral properties at cost.
      Where applicable, cost includes acquisition costs, exploration and
      development expenditures, interest expense and finance costs allocable to
      the cost of mine development and construction, and holding costs to
      maintain a property. These costs are amortized using the
      units-of-production method against future production or are written-off if
      the properties are sold, allowed to lapse or abandoned. Development costs
      incurred after the commencement of commercial production are capitalised
      to the extent they are expected to give rise to future economic benefits.
      General exploration is expensed in the period incurred.</P></TD></TR>
  <TR>
    <TD width="5%">&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
  <TR>
    <TD width="5%"></TD>
    <TD>
      <P align=justify>Option payments received are treated as a reduction of
      the carrying value of the related mineral property and deferred costs
      until the payments are in excess of costs incurred, at which time they are
      then credited to income. Option payments are at the discretion of the
      optionee, and accordingly, are accounted for on a cash basis or when
      receipt is reasonably assured.</P></TD></TR>
  <TR>
    <TD width="5%">&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
  <TR>
    <TD width="5%"></TD>
    <TD>
      <P align=justify>Our management regularly reviews the recoverability of
      the carrying value of each mineral property. Where information and
      conditions suggest impairment, estimated future cash flows are calculated
      using estimated future prices, proven and probable reserves, weighted
      probable outcomes and operating capital and reclamation costs on an
      undiscounted basis. If it is determined that the future cash flows are
      less than the carrying value, a write-down to the estimated fair value is
      expensed for the period. Where estimates of future net cash flows are not
      available and where other conditions suggest impairment, management
      assesses if carrying values can be recovered. If the carrying values
      exceed estimated recoverable values, then the costs are written-down to
      fair values with the write-down expensed in the year.</P></TD></TR>
  <TR>
    <TD width="5%">&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
  <TR>
    <TD width="5%"></TD>
    <TD>
      <P align=justify>Management&#146;s estimates of future mineral prices,
      recoverable resources, initial and operating capital and reclamation costs
      are subject to certain risks and uncertainties that may affect the
      recoverability of mineral property costs. Although management has made its
      best estimate of these factors, it is possible that changes could occur
      that could adversely affect management&#146;s estimate of the net cash flows to
      be generated from its properties.</P></TD></TR></TABLE>
<P align=right>9</P>
<HR style="PAGE-BREAK-AFTER: always" align=center color=black SIZE=5
width="100%" noShade>
<!--$$/page=--><A name=page_16></A><BR>
<TABLE
style="BORDER-COLOR: black; BORDER-COLLAPSE: collapse; FONT-SIZE: 10pt; "
border=0 cellSpacing=0 cellPadding=0 width="100%">

  <TR vAlign=top>
    <TD align=left><B>Silver Standard Resources Inc.</B> </TD></TR>
  <TR vAlign=top>
    <TD align=left>Notes to Consolidated Financial Statements </TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>December 31, 2010,
      2009 and 2008 </TD></TR>
  <TR vAlign=top>
    <TD align=left>(tabular amounts expressed in thousands of United States
      dollars unless otherwise stated) </TD></TR></TABLE><BR>
<TABLE
style="BORDER-COLOR: black; BORDER-COLLAPSE: collapse; FONT-SIZE: 10pt; "
border=0 cellSpacing=0 cellPadding=0 width="100%" BCLLIST>

  <TR>
    <TD vAlign=top width="5%"><B>2</B> </TD>
    <TD>
      <P align=justify><B>SIGNIFICANT ACCOUNTING POLICIES (Cont&#146;d)</B></P></TD></TR>
  <TR>
    <TD width="5%">&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
  <TR>
    <TD width="5%"></TD>
    <TD>
      <P align=justify><I>Property, plant and equipment</I></P></TD></TR>
  <TR>
    <TD width="5%">&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
  <TR>
    <TD width="5%"></TD>
    <TD>
      <P align=justify>Property, plant and equipment are recorded at cost less
      accumulated depreciation. Depreciation is calculated on a straight-line
      basis over the useful life of the asset, ranging from two to fourteen
      years, once the asset is put in service. Construction in progress is
      recorded at cost and transferred to building, mining equipment and
      machinery when the related asset becomes available for use. Depreciation
      for mining equipment and machinery is calculated on a straight-line basis
      over the useful life of the equipment, or the life of mine, when it
      becomes available for use. Leasehold improvements are amortized over the
      shorter of their economic lives and the lease term plus lease renewals, if
      any, only when such renewals are reasonably assured. Depreciation charges
      on assets that are directly related to mineral properties are allocated to
      that mineral property.</P></TD></TR>
  <TR>
    <TD width="5%">&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
  <TR>
    <TD width="5%"></TD>
    <TD>
      <P align=justify>Where an item of property, plant and equipment comprises
      major components with different useful lives, the components are accounted
      for as separate items of property, plant and equipment.</P></TD></TR>
  <TR>
    <TD width="5%">&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
  <TR>
    <TD width="5%"></TD>
    <TD>
      <P align=justify>We assess if an impairment loss exists when events or
      changes in circumstances indicate that the carrying amount of an asset may
      not be recoverable. An impairment loss is recognized if the carrying
      amount of a long-lived asset exceeds the sum of the undiscounted cash
      flows expected to result from its use and eventual disposition. The amount
      of the loss is measured as the amount by which the long-lived asset&#146;s
      carrying value exceeds its fair value.</P></TD></TR>
  <TR>
    <TD width="5%">&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
  <TR>
    <TD width="5%"></TD>
    <TD>
      <P align=justify><B>Revenue recognition</B></P></TD></TR>
  <TR>
    <TD width="5%">&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
  <TR>
    <TD width="5%"></TD>
    <TD>
      <P align=justify>Revenue is recognized upon delivery when title and risk
      of ownership of metal bearing concentrate passes to the buyer and when
      collection is reasonably assured. This occurs when title and insurance
      risk have passed to the customer and the goods have been delivered to a
      contractually agreed location.</P></TD></TR>
  <TR>
    <TD width="5%">&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
  <TR>
    <TD width="5%"></TD>
    <TD>
      <P align=justify>Concentrate sales are provisionally priced, such that the
      price is not settled until a predetermined future date, typically one
      month after delivery to the customer, based on the market price at that
      time. The contract provides for a provisional payment based upon
      provisional assays and quoted metal prices. Revenues are initially
      recorded under these contracts at the time title passes to the buyer based
      on the prevailing market price at the date of the provisional invoice,
      with final settlement generally from one to three months after delivery.
      As a result, the value of our concentrate receivables changes as the
      underlying commodity market prices vary. This component of the contract is
      an embedded derivative, which is recorded at fair value with changes in
      fair value recorded in revenues. Adjustments to revenue for metal prices
      are recorded at each reporting date and other adjustments related to the
      final settlement of weights and assays are recorded on final settlement.
      Revenue from the sale of metal concentrate is recorded net of charges for
      treatment, refining and smelting.</P></TD></TR>
  <TR>
    <TD width="5%">&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
  <TR>
    <TD width="5%"></TD>
    <TD>
      <P align=justify>Revenues from the sale of material by-products are
      included within revenue. Where a by-product is not regarded as
      significant, sales proceeds may be credited against cost of
  sales.</P></TD></TR>
  <TR>
    <TD width="5%">&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
  <TR>
    <TD width="5%"></TD>
    <TD>
      <P align=justify><B>Stripping costs</B></P></TD></TR>
  <TR>
    <TD></TD>
    <TD>&nbsp;</TD>
  </TR>
  <TR>
    <TD></TD>
    <TD>Stripping costs comprise the removal of overburden and
      other waste material from the mine. Stripping costs incurred during the
      development of a mine are capitalized and depleted on a unit-of production
      basis, using estimated total proven and probable reserves as the depletion
    base.</TD>
  </TR>
</TABLE>
<P align=right>10</P>
<HR style="PAGE-BREAK-AFTER: always" align=center color=black SIZE=5
width="100%" noShade>
<!--$$/page=--><A name=page_17></A><BR>
<TABLE
style="BORDER-COLOR: black; BORDER-COLLAPSE: collapse; FONT-SIZE: 10pt; "
border=0 cellSpacing=0 cellPadding=0 width="100%">

  <TR vAlign=top>
    <TD align=left><B>Silver Standard Resources Inc.</B> </TD></TR>
  <TR vAlign=top>
    <TD align=left>Notes to Consolidated Financial Statements </TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>December 31, 2010,
      2009 and 2008 </TD></TR>
  <TR vAlign=top>
    <TD align=left>(tabular amounts expressed in thousands of United States
      dollars unless otherwise stated) </TD></TR></TABLE><BR>
<TABLE
style="BORDER-COLOR: black; BORDER-COLLAPSE: collapse; FONT-SIZE: 10pt; "
border=0 cellSpacing=0 cellPadding=0 width="100%" BCLLIST>
  <TR>
    <TD vAlign=top width="5%"><B>2</B> </TD>
    <TD>
      <P align=justify><B>SIGNIFICANT ACCOUNTING POLICIES (Cont&#146;d)</B></P></TD></TR>
  <TR>
    <TD width="5%">&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
  <TR>
    <TD width="5%"></TD>
    <TD>
      <P align=justify>Stripping costs incurred during the production phase are
      variable production costs that are included in the costs of production
      during the period that the stripping costs are incurred. Stripping costs
      resulting in a future benefit to the mineral property by providing access
      to additional ore reserves are capitalized and amortized over the relevant
      mineral reserves.</P></TD></TR>
  <TR>
    <TD width="5%">&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
  <TR>
    <TD width="5%"></TD>
    <TD>
      <P align=justify><B>Asset retirement obligations</B></P></TD></TR>
  <TR>
    <TD width="5%">&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
  <TR>
    <TD width="5%"></TD>
    <TD>
      <P align=justify>We recognize a liability for our legal obligations
      associated with the retirement of property, plant and equipment when the
      liability is incurred. A liability is recognized initially at fair value
      and the resulting amount is capitalized as part of the asset&#146;s carrying
      value unless the asset has been previously written-off, in which case the
      amount is expensed. The liability is accreted over time through periodic
      charges to earnings. In subsequent periods, we adjust the carrying amounts
      of the asset and the liability for changes in estimates of the amount or
      timing of underlying future cash flows. The fair value of the legal
      obligation for asset retirement is assessed each reporting
  period.</P></TD></TR>
  <TR>
    <TD width="5%">&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
  <TR>
    <TD width="5%"></TD>
    <TD>
      <P align=justify>It is reasonably possible that our estimates of our
      ultimate reclamation and site restoration liability could change as a
      result of changes in regulations or cost estimates. The effect of changes
      in estimated costs is recognized on a prospective basis.</P></TD></TR>
  <TR>
    <TD width="5%">&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
  <TR>
    <TD width="5%"></TD>
    <TD>
      <P align=justify><B>Stock-based compensation</B></P></TD></TR>
  <TR>
    <TD width="5%">&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
  <TR>
    <TD width="5%"></TD>
    <TD>
      <P align=justify>Compensation expense for stock options granted to
      employees or non-employees is measured at fair value using the
      Black-Scholes valuation model and is recognized over the vesting period of
      the options granted. In situations where stock options are granted in
      exchange for services directly related to specific mineral properties, the
      expense is capitalized against that mineral property. The value assigned
      to stock options shown on the balance sheet is subsequently reduced if the
      options are exercised and the amount so reduced is then credited to share
      capital. Any values assigned to stock options that have expired are
      transferred to contributed surplus.</P></TD></TR>
  <TR>
    <TD width="5%">&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
  <TR>
    <TD width="5%"></TD>
    <TD>
      <P align=justify>Units issued under the Deferred Share Unit plan (&#147;DSU
      plan&#148;) are initially recorded at fair value and classified as accrued
      liabilities and subsequently remeasured at each reporting date.</P></TD></TR></TABLE>

<P style="MARGIN-LEFT: 5%" align=justify><b>Income taxes</b></P>
<P style="MARGIN-LEFT: 5%" align=justify>The liability method of income tax allocation is used and
      is based on differences between the accounting and tax bases of assets and
      liabilities. Temporary differences arising from the difference between the
      tax basis of an asset or liability and its carrying amount are used to
      calculate future income tax liabilities or assets. Future income tax
      liabilities or assets are calculated using the tax rates anticipated to
      apply in the periods that the temporary differences are expected to
      reverse. Future tax assets are recognized to the extent that they are
considered more likely than not to be realized.</P>
<P style="MARGIN-LEFT: 5%" align=justify><B>Borrowing costs</B></P>
<P style="MARGIN-LEFT: 5%" align=justify>Borrowing costs directly attributable
to the acquisition or construction of qualifying assets are capitalized as part
of the cost of the asset until the asset is substantially ready for its intended
use. Other borrowing costs are recognized as an expense in the period
incurred.</P>
<P align=right>11</P>
<HR style="PAGE-BREAK-AFTER: always" align=center color=black SIZE=5
width="100%" noShade>
<!--$$/page=--><A name=page_19></A><BR>
<TABLE
style="BORDER-COLOR: black; BORDER-COLLAPSE: collapse; FONT-SIZE: 10pt; "
border=0 cellSpacing=0 cellPadding=0 width="100%">

  <TR vAlign=top>
    <TD align=left><B>Silver Standard Resources Inc.</B> </TD></TR>
  <TR vAlign=top>
    <TD align=left>Notes to Consolidated Financial Statements </TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>December 31, 2010,
      2009 and 2008 </TD></TR>
  <TR vAlign=top>
    <TD align=left>(tabular amounts expressed in thousands of United States
      dollars unless otherwise stated) </TD></TR></TABLE><BR>
<TABLE
style="BORDER-COLOR: black; BORDER-COLLAPSE: collapse; FONT-SIZE: 10pt; "
border=0 cellSpacing=0 cellPadding=0 width="100%" BCLLIST>

  <TR>
    <TD vAlign=top width="5%"><B>2</B> </TD>
    <TD>
      <P align=justify><B>SIGNIFICANT ACCOUNTING POLICIES (Cont&#146;d)</B></P></TD></TR>
  <TR>
    <TD width="5%">&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
  <TR>
    <TD width="5%"></TD>
    <TD>
      <P align=justify><B>Earnings (loss) per share</B></P></TD></TR>
  <TR>
    <TD width="5%">&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
  <TR>
    <TD width="5%"></TD>
    <TD>
      <P align=justify>Earnings (loss) per share is calculated based on the
      weighted average number of common shares issued and outstanding during the
      year. We follow the treasury stock method in the calculation of diluted
      earnings per share. Under this method, the weighted average number of
      shares includes the potential net issuances of common shares for
      &#147;in-the-money&#148; options assuming the proceeds are used to repurchase common
      shares at the average market price during the period, if
  dilutive.</P></TD></TR>
  <TR>
    <TD width="5%">&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
  <TR>
    <TD vAlign=top width="5%"><B>3</B> </TD>
    <TD>
      <P align=justify><B>CHANGES IN ACCOUNTING POLICIES</B></P></TD></TR>
  <TR>
    <TD width="5%">&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
  <TR>
    <TD width="5%"></TD>
    <TD>
      <P align=justify><B><I>Business combinations and related
      sections</I></B></P></TD></TR>
  <TR>
    <TD width="5%">&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
  <TR>
    <TD width="5%"></TD>
    <TD>
      <P align=justify>Effective January 1, 2010, we elected to adopt Chartered
      Accountants Handbook (&#147;CICA&#148;) Handbook Sections 1582, &#147;Business
      Combinations&#148;, 1601, &#147;Consolidated Financial Statements&#148;, and 1602 &#147;Non-
      Controlling Interests&#148; on a prospective basis. The adoption of these
      standards required us to record our investment in Pretium initially at
      fair value, and present non-controlling interest within shareholders&#146;
      equity on the balance sheet.</P></TD></TR>
  <TR>
    <TD width="5%">&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
  <TR>
    <TD width="5%"></TD>
    <TD>
      <P align=justify><B><I>Financial Instruments</I></B></P></TD></TR>
  <TR>
    <TD width="5%">&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
  <TR>
    <TD width="5%"></TD>
    <TD>
      <P align=justify>Amendments to Canadian Institute of Chartered Accountants
      Handbook (&#147;CICA&#148;) Handbook Section 3855, &#147;Financial Instruments &#150;
      Recognition and Measurement&#148;, 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. We have elected to adopt this standard on a prospective basis
      effective January 1, 2010. The adoption of these amendments did not have a
      material impact on our consolidated financial statements.</P></TD></TR>
  <TR>
    <TD width="5%">&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
  <TR>
    <TD vAlign=top width="5%"><B>4</B> </TD>
    <TD>
      <P align=justify><B>SILVER BULLION</B></P></TD></TR>
  <TR>
    <TD width="5%">&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
  <TR>
    <TD width="5%"></TD>
    <TD>
      <P align=justify>In March 2008, we sold our silver bullion for cash
      proceeds of $39,648,000, which resulted in a gain of $23,699,000 during
      the year ended December 31, 2008. No tax expense was recorded as we had
      sufficient tax pools to offset the taxable gain on the
  sale.</P></TD></TR></TABLE>
<P align=right>12</P>
<HR style="PAGE-BREAK-AFTER: always" align=center color=black SIZE=5
width="100%" noShade>
<!--$$/page=--><A name=page_20></A><BR>
<TABLE
style="BORDER-COLOR: black; BORDER-COLLAPSE: collapse; FONT-SIZE: 10pt; "
border=0 cellSpacing=0 cellPadding=0 width="100%">

  <TR vAlign=top>
    <TD align=left><B>Silver Standard Resources Inc.</B> </TD></TR>
  <TR vAlign=top>
    <TD align=left>Notes to Consolidated Financial Statements </TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>December 31, 2010,
      2009 and 2008 </TD></TR>
  <TR vAlign=top>
    <TD align=left>(tabular amounts expressed in thousands of United States
      dollars unless otherwise stated) </TD></TR></TABLE><BR>
<TABLE
style="BORDER-COLOR: black; BORDER-COLLAPSE: collapse; FONT-SIZE: 10pt; "
border=0 cellSpacing=0 cellPadding=0 width="100%">

  <TR vAlign=top>
    <TD align=left ><B>5</B> </TD>
    <TD width="95%" align=left><B>INVENTORIES</B> </TD></TR></TABLE><BR>
<DIV align=center>
<TABLE
style="BORDER-COLOR: black; BORDER-COLLAPSE: collapse; FONT-SIZE: 10pt; "
border=0 cellSpacing=0 cellPadding=0 width="90%">

  <TR vAlign=top>
    <TD align=left valign="bottom">&nbsp; </TD>
    <TD  width="1%" align=left valign="bottom">&nbsp;</TD>
    <TD width="12%" align=right valign="bottom"><B>2010</B> </TD>
    <TD  width="2%" align=left valign="bottom">&nbsp;</TD>
    <TD  width="1%" align=left valign="bottom">&nbsp;</TD>
    <TD width="12%" align=right valign="bottom"><B>2009</B> </TD>
    <TD  width="2%" align=left valign="bottom">&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left valign="bottom">&nbsp; </TD>
    <TD  width="1%"
    align=left valign="bottom" style="BORDER-BOTTOM: #000000 1px solid"><B></B></TD>
    <TD width="12%"
      align=right valign="bottom" style="BORDER-BOTTOM: #000000 1px solid"><STRONG>$</STRONG>&nbsp;</TD>
    <TD  width="2%"
    align=left valign="bottom" style="BORDER-BOTTOM: #000000 1px solid">&nbsp;</TD>
    <TD  width="1%"
    align=left valign="bottom" style="BORDER-BOTTOM: #000000 1px solid"><B></B></TD>
    <TD width="12%"
      align=right valign="bottom" style="BORDER-BOTTOM: #000000 1px solid"><STRONG>$</STRONG>&nbsp;</TD>
    <TD  width="2%"
    align=left valign="bottom" style="BORDER-BOTTOM: #000000 1px solid">&nbsp;</TD>
  </TR>
  <TR>
    <TD valign="bottom">&nbsp; </TD>
    <TD  width="1%" valign="bottom">&nbsp;</TD>
    <TD width="12%" valign="bottom">&nbsp; </TD>
    <TD  width="2%" valign="bottom">&nbsp;</TD>
    <TD  width="1%" valign="bottom">&nbsp;</TD>
    <TD width="12%" valign="bottom">&nbsp; </TD>
    <TD  width="2%" valign="bottom">&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left valign="bottom" bgColor=#e6efff>Finished goods </TD>
    <TD  width="1%" align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD width="12%" align=right valign="bottom" bgColor=#e6efff><B>6,919</B> </TD>
    <TD  width="2%" align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD  width="1%" align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD width="12%" align=right valign="bottom" bgColor=#e6efff>6,141 </TD>
    <TD  width="2%" align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left valign="bottom">Stockpiled ore </TD>
    <TD  width="1%" align=left valign="bottom">&nbsp;</TD>
    <TD width="12%" align=right valign="bottom"><B>26,327</B> </TD>
    <TD  width="2%" align=left valign="bottom">&nbsp;</TD>
    <TD  width="1%" align=left valign="bottom">&nbsp;</TD>
    <TD width="12%" align=right valign="bottom">9,310 </TD>
    <TD  width="2%" align=left valign="bottom">&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left valign="bottom" bgColor=#e6efff>Materials and supplies </TD>
    <TD
    width="1%" align=left valign="bottom" bgColor=#e6efff style="BORDER-BOTTOM: #000000 1px solid">&nbsp;</TD>
    <TD width="12%"
    align=right valign="bottom" bgColor=#e6efff style="BORDER-BOTTOM: #000000 1px solid"><B>6,930</B> </TD>
    <TD
    width="2%" align=left valign="bottom" bgColor=#e6efff style="BORDER-BOTTOM: #000000 1px solid">&nbsp;</TD>
    <TD
    width="1%" align=left valign="bottom" bgColor=#e6efff style="BORDER-BOTTOM: #000000 1px solid">&nbsp;</TD>
    <TD width="12%"
    align=right valign="bottom" bgColor=#e6efff style="BORDER-BOTTOM: #000000 1px solid">5,114 </TD>
    <TD
    width="2%" align=left valign="bottom" bgColor=#e6efff style="BORDER-BOTTOM: #000000 1px solid">&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left valign="bottom">&nbsp; </TD>
    <TD  width="1%"
    align=left valign="bottom" style="BORDER-BOTTOM: #000000 2px solid">&nbsp;</TD>
    <TD width="12%"
      align=right valign="bottom" style="BORDER-BOTTOM: #000000 2px solid"><B>40,176</B> </TD>
    <TD  width="2%"
    align=left valign="bottom" style="BORDER-BOTTOM: #000000 2px solid">&nbsp;</TD>
    <TD  width="1%"
    align=left valign="bottom" style="BORDER-BOTTOM: #000000 2px solid">&nbsp;</TD>
    <TD width="12%"
      align=right valign="bottom" style="BORDER-BOTTOM: #000000 2px solid">20,565 </TD>
    <TD  width="2%"
    align=left valign="bottom" style="BORDER-BOTTOM: #000000 2px solid">&nbsp;</TD>
  </TR></TABLE></DIV>
<P style="MARGIN-LEFT: 5%" align=justify>During the year ended December 31,
2010, we recorded net inventory write-downs totalling $6,700,000 (2009 -
$1,022,000; 2008 - $nil) resulting from inventory cost exceeding NRV of
inventory.</P>
<TABLE
style="BORDER-COLOR: black; BORDER-COLLAPSE: collapse; FONT-SIZE: 10pt; "
border=0 cellSpacing=0 cellPadding=0 width="100%">

  <TR vAlign=top>
    <TD align=left ><B>6</B> </TD>
    <TD width="95%" align=left><B>FINANCIAL INSTRUMENTS</B>
</TD></TR></TABLE>
<P style="MARGIN-LEFT: 5%" align=justify>As at December 31, 2010, the carrying
and fair values of our financial instruments by category are as follows:</P>
<TABLE
style="BORDER-COLOR: black; BORDER-COLLAPSE: collapse; FONT-SIZE: 8pt; "
border=0 cellSpacing=0 cellPadding=0 width="100%">

  <TR vAlign=top>
    <TD width="5%"  >&nbsp;</TD>
    <TD align=left valign="bottom">&nbsp; </TD>
    <TD  width="1%"
    align=left valign="bottom" style="BORDER-BOTTOM: #000000 1px solid">&nbsp;</TD>
    <TD width="63%" colSpan=16
    align=right valign="bottom" style="BORDER-BOTTOM: #000000 1px solid"><B>2010</B> </TD>
  <TD  width="2%"
    align=left valign="bottom" style="BORDER-BOTTOM: #000000 1px solid">&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD width="5%" >&nbsp;</TD>
    <TD align=left valign="bottom">&nbsp; </TD>
    <TD  width="1%" align=left valign="bottom">&nbsp;</TD>
    <TD width="8%" align=right valign="bottom" nowrap><B>Held for</B> </TD>
    <TD  width="2%" align=left valign="bottom">&nbsp;</TD>
    <TD  width="1%" align=left valign="bottom">&nbsp;</TD>
    <TD width="8%" align=right valign="bottom"><B>Loans &amp;&nbsp;</B> </TD>
    <TD  width="2%" align=left valign="bottom">&nbsp;</TD>
    <TD  width="1%" align=left valign="bottom">&nbsp;</TD>
    <TD  width="8%"
    align=right valign="bottom" nowrap><STRONG>Available</STRONG>&nbsp;</TD>
    <TD  width="2%" align=left valign="bottom">&nbsp;</TD>
    <TD  width="1%" align=left valign="bottom">&nbsp;</TD>
    <TD width="8%" align=right valign="bottom" nowrap><B>Other financial</B> </TD>
    <TD  width="2%" align=left valign="bottom">&nbsp;</TD>
    <TD  width="1%" align=left valign="bottom">&nbsp;</TD>
    <TD width="8%" align=right valign="bottom" nowrap><B>Carrying</B> </TD>
    <TD  width="2%" align=left valign="bottom">&nbsp;</TD>
    <TD  width="1%" align=left valign="bottom">&nbsp;</TD>
    <TD width="8%" align=right valign="bottom"><B>Fair</B> </TD>
  <TD  width="2%" align=left valign="bottom">&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD width="5%" >&nbsp;</TD>
    <TD align=left valign="bottom">&nbsp; </TD>
    <TD  width="1%" align=left valign="bottom">&nbsp;</TD>
    <TD width="8%" align=right valign="bottom"><B>trading&nbsp;</B> </TD>
    <TD  width="2%" align=left valign="bottom">&nbsp;</TD>
    <TD  width="1%" align=left valign="bottom">&nbsp;</TD>
    <TD  width="8%"
    align=right valign="bottom" nowrap><STRONG>receivables</STRONG>&nbsp;</TD>
    <TD  width="2%" align=left valign="bottom">&nbsp;</TD>
    <TD  width="1%" align=left valign="bottom">&nbsp;</TD>
    <TD width="8%" align=right valign="bottom"><B>for sale</B> </TD>
    <TD  width="2%" align=left valign="bottom">&nbsp;</TD>
    <TD  width="1%" align=left valign="bottom">&nbsp;</TD>
    <TD width="8%" align=right valign="bottom"><B>liabilities</B> </TD>
    <TD  width="2%" align=left valign="bottom">&nbsp;</TD>
    <TD  width="1%" align=left valign="bottom">&nbsp;</TD>
    <TD width="8%" align=right valign="bottom"><B>value</B> </TD>
    <TD  width="2%" align=left valign="bottom">&nbsp;</TD>
    <TD  width="1%" align=left valign="bottom">&nbsp;</TD>
    <TD width="8%" align=right valign="bottom" nowrap><B>value</B> </TD>
  <TD  width="2%" align=left valign="bottom">&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD width="5%" >&nbsp;</TD>
    <TD align=left valign="bottom" bgColor=#e6efff><B><U>Financial assets</U></B> </TD>
    <TD
    width="1%" align=left valign="bottom" bgColor=#e6efff style="BORDER-BOTTOM: #000000 1px solid"><B></B></TD>
    <TD width="8%"
    align=right valign="bottom" bgColor=#e6efff style="BORDER-BOTTOM: #000000 1px solid"><STRONG>$</STRONG>&nbsp;</TD>
    <TD
    width="2%" align=left valign="bottom" bgColor=#e6efff style="BORDER-BOTTOM: #000000 1px solid">&nbsp;</TD>
    <TD
    width="1%" align=left valign="bottom" bgColor=#e6efff style="BORDER-BOTTOM: #000000 1px solid"><B></B></TD>
    <TD width="8%"
    align=right valign="bottom" bgColor=#e6efff style="BORDER-BOTTOM: #000000 1px solid"><STRONG>$</STRONG>&nbsp;</TD>
    <TD
    width="2%" align=left valign="bottom" bgColor=#e6efff style="BORDER-BOTTOM: #000000 1px solid">&nbsp;</TD>
    <TD
    width="1%" align=left valign="bottom" bgColor=#e6efff style="BORDER-BOTTOM: #000000 1px solid"><B></B></TD>
    <TD width="8%"
    align=right valign="bottom" bgColor=#e6efff style="BORDER-BOTTOM: #000000 1px solid"><STRONG>$</STRONG>&nbsp;</TD>
    <TD
    width="2%" align=left valign="bottom" bgColor=#e6efff style="BORDER-BOTTOM: #000000 1px solid">&nbsp;</TD>
    <TD
    width="1%" align=left valign="bottom" bgColor=#e6efff style="BORDER-BOTTOM: #000000 1px solid"><B></B></TD>
    <TD width="8%"
    align=right valign="bottom" bgColor=#e6efff style="BORDER-BOTTOM: #000000 1px solid"><STRONG>$</STRONG>&nbsp;</TD>
    <TD
    width="2%" align=left valign="bottom" bgColor=#e6efff style="BORDER-BOTTOM: #000000 1px solid">&nbsp;</TD>
    <TD
    width="1%" align=left valign="bottom" bgColor=#e6efff style="BORDER-BOTTOM: #000000 1px solid"></TD>
    <TD width="8%"
    align=right valign="bottom" bgColor=#e6efff style="BORDER-BOTTOM: #000000 1px solid"><STRONG>$</STRONG>&nbsp;</TD>
    <TD
    width="2%" align=left valign="bottom" bgColor=#e6efff style="BORDER-BOTTOM: #000000 1px solid">&nbsp;</TD>
    <TD
    width="1%" align=left valign="bottom" bgColor=#e6efff style="BORDER-BOTTOM: #000000 1px solid"><B></B></TD>
    <TD width="8%"
    align=right valign="bottom" bgColor=#e6efff style="BORDER-BOTTOM: #000000 1px solid"><STRONG>$</STRONG>&nbsp;</TD>
  <TD
    width="2%" align=left valign="bottom" bgColor=#e6efff style="BORDER-BOTTOM: #000000 1px solid">&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD width="5%" >&nbsp;</TD>
    <TD align=left valign="bottom">Cash and cash equivalents </TD>
    <TD  width="1%" align=left valign="bottom">&nbsp;</TD>
    <TD width="8%" align=right valign="bottom">- </TD>
    <TD  width="2%" align=left valign="bottom">&nbsp;</TD>
    <TD  width="1%" align=left valign="bottom">&nbsp;</TD>
    <TD width="8%" align=right valign="bottom">232,311 </TD>
    <TD  width="2%" align=left valign="bottom">&nbsp;</TD>
    <TD  width="1%" align=left valign="bottom">&nbsp;</TD>
    <TD width="8%" align=right valign="bottom">- </TD>
    <TD  width="2%" align=left valign="bottom">&nbsp;</TD>
    <TD  width="1%" align=left valign="bottom">&nbsp;</TD>
    <TD width="8%" align=right valign="bottom">- </TD>
    <TD  width="2%" align=left valign="bottom">&nbsp;</TD>
    <TD  width="1%" align=left valign="bottom">&nbsp;</TD>
    <TD width="8%" align=right valign="bottom"><B>232,311</B> </TD>
    <TD  width="2%" align=left valign="bottom">&nbsp;</TD>
    <TD  width="1%" align=left valign="bottom">&nbsp;</TD>
    <TD width="8%" align=right valign="bottom"><B>232,311</B> </TD>
  <TD  width="2%" align=left valign="bottom">&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD width="5%" >&nbsp;</TD>
    <TD align=left valign="bottom" bgColor=#e6efff>Marketable securities (note 6b) </TD>
    <TD  width="1%" align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD width="8%" align=right valign="bottom" bgColor=#e6efff>- </TD>
    <TD  width="2%" align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD  width="1%" align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD width="8%" align=right valign="bottom" bgColor=#e6efff>- </TD>
    <TD  width="2%" align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD  width="1%" align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD width="8%" align=right valign="bottom" bgColor=#e6efff>33,465 </TD>
    <TD  width="2%" align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD  width="1%" align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD width="8%" align=right valign="bottom" bgColor=#e6efff>- </TD>
    <TD  width="2%" align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD  width="1%" align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD width="8%" align=right valign="bottom" bgColor=#e6efff><B>33,465</B> </TD>
    <TD  width="2%" align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD  width="1%" align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD width="8%" align=right valign="bottom" bgColor=#e6efff><B>33,465</B> </TD>
  <TD  width="2%" align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD width="5%" >&nbsp;</TD>
    <TD align=left valign="bottom">Accounts receivable </TD>
    <TD  width="1%" align=left valign="bottom">&nbsp;</TD>
    <TD width="8%" align=right valign="bottom">15,409 </TD>
    <TD  width="2%" align=left valign="bottom">&nbsp;</TD>
    <TD  width="1%" align=left valign="bottom">&nbsp;</TD>
    <TD width="8%" align=right valign="bottom">14,914 </TD>
    <TD  width="2%" align=left valign="bottom">&nbsp;</TD>
    <TD  width="1%" align=left valign="bottom">&nbsp;</TD>
    <TD width="8%" align=right valign="bottom">- </TD>
    <TD  width="2%" align=left valign="bottom">&nbsp;</TD>
    <TD  width="1%" align=left valign="bottom">&nbsp;</TD>
    <TD width="8%" align=right valign="bottom">- </TD>
    <TD  width="2%" align=left valign="bottom">&nbsp;</TD>
    <TD  width="1%" align=left valign="bottom">&nbsp;</TD>
    <TD width="8%" align=right valign="bottom"><B>30,323</B> </TD>
    <TD  width="2%" align=left valign="bottom">&nbsp;</TD>
    <TD  width="1%" align=left valign="bottom">&nbsp;</TD>
    <TD width="8%" align=right valign="bottom"><B>30,323</B> </TD>
  <TD  width="2%" align=left valign="bottom">&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD width="5%" >&nbsp;</TD>
    <TD align=left valign="bottom" bgColor=#e6efff>Restricted cash (note 12) </TD>
    <TD  width="1%" align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD width="8%" align=right valign="bottom" bgColor=#e6efff>- </TD>
    <TD  width="2%" align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD  width="1%" align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD width="8%" align=right valign="bottom" bgColor=#e6efff>- </TD>
    <TD  width="2%" align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD  width="1%" align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD width="8%" align=right valign="bottom" bgColor=#e6efff>2,071 </TD>
    <TD  width="2%" align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD  width="1%" align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD width="8%" align=right valign="bottom" bgColor=#e6efff>- </TD>
    <TD  width="2%" align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD  width="1%" align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD width="8%" align=right valign="bottom" bgColor=#e6efff><B>2,071</B> </TD>
    <TD  width="2%" align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD  width="1%" align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD width="8%" align=right valign="bottom" bgColor=#e6efff><B>2,071</B> </TD>
  <TD  width="2%" align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD width="5%" >&nbsp;</TD>
    <TD align=left valign="bottom">Convertible debenture (note 6c) <SUP>(1)</SUP> </TD>
    <TD  width="1%"
    align=left valign="bottom" style="BORDER-BOTTOM: #000000 1px solid">&nbsp;</TD>
    <TD width="8%" align=right valign="bottom" style="BORDER-BOTTOM: #000000 1px solid">386</TD>
    <TD  width="2%"
    align=left valign="bottom" style="BORDER-BOTTOM: #000000 1px solid">&nbsp;</TD>
    <TD  width="1%"
    align=left valign="bottom" style="BORDER-BOTTOM: #000000 1px solid">&nbsp;</TD>
    <TD width="8%" align=right valign="bottom" style="BORDER-BOTTOM: #000000 1px solid">6,794    </TD>
    <TD  width="2%"
    align=left valign="bottom" style="BORDER-BOTTOM: #000000 1px solid">&nbsp;</TD>
    <TD  width="1%"
    align=left valign="bottom" style="BORDER-BOTTOM: #000000 1px solid">&nbsp;</TD>
    <TD width="8%" align=right valign="bottom" style="BORDER-BOTTOM: #000000 1px solid">- </TD>
    <TD  width="2%"
    align=left valign="bottom" style="BORDER-BOTTOM: #000000 1px solid">&nbsp;</TD>
    <TD  width="1%"
    align=left valign="bottom" style="BORDER-BOTTOM: #000000 1px solid">&nbsp;</TD>
    <TD width="8%" align=right valign="bottom" style="BORDER-BOTTOM: #000000 1px solid">- </TD>
    <TD  width="2%"
    align=left valign="bottom" style="BORDER-BOTTOM: #000000 1px solid">&nbsp;</TD>
    <TD  width="1%"
    align=left valign="bottom" style="BORDER-BOTTOM: #000000 1px solid">&nbsp;</TD>
    <TD width="8%"
      align=right valign="bottom" style="BORDER-BOTTOM: #000000 1px solid"><B>7,180</B> </TD>
    <TD  width="2%"
    align=left valign="bottom" style="BORDER-BOTTOM: #000000 1px solid">&nbsp;</TD>
    <TD  width="1%"
    align=left valign="bottom" style="BORDER-BOTTOM: #000000 1px solid">&nbsp;</TD>
    <TD width="8%"
      align=right valign="bottom" style="BORDER-BOTTOM: #000000 1px solid"><B>7,302</B> </TD>
  <TD  width="2%"
    align=left valign="bottom" style="BORDER-BOTTOM: #000000 1px solid">&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD width="5%" >&nbsp;</TD>
    <TD align=left valign="bottom" bgColor=#e6efff>&nbsp; </TD>
    <TD
    width="1%" align=left valign="bottom" bgColor=#e6efff style="BORDER-BOTTOM: #000000 2px solid">&nbsp;</TD>
    <TD width="8%"
    align=right valign="bottom" bgColor=#e6efff style="BORDER-BOTTOM: #000000 2px solid">15,795 </TD>
    <TD
    width="2%" align=left valign="bottom" bgColor=#e6efff style="BORDER-BOTTOM: #000000 2px solid">&nbsp;</TD>
    <TD
    width="1%" align=left valign="bottom" bgColor=#e6efff style="BORDER-BOTTOM: #000000 2px solid">&nbsp;</TD>
    <TD width="8%"
    align=right valign="bottom" bgColor=#e6efff style="BORDER-BOTTOM: #000000 2px solid">254,019 </TD>
    <TD
    width="2%" align=left valign="bottom" bgColor=#e6efff style="BORDER-BOTTOM: #000000 2px solid">&nbsp;</TD>
    <TD
    width="1%" align=left valign="bottom" bgColor=#e6efff style="BORDER-BOTTOM: #000000 2px solid">&nbsp;</TD>
    <TD width="8%"
    align=right valign="bottom" bgColor=#e6efff style="BORDER-BOTTOM: #000000 2px solid">35,536 </TD>
    <TD
    width="2%" align=left valign="bottom" bgColor=#e6efff style="BORDER-BOTTOM: #000000 2px solid">&nbsp;</TD>
    <TD
    width="1%" align=left valign="bottom" bgColor=#e6efff style="BORDER-BOTTOM: #000000 2px solid">&nbsp;</TD>
    <TD width="8%"
    align=right valign="bottom" bgColor=#e6efff style="BORDER-BOTTOM: #000000 2px solid">- </TD>
    <TD
    width="2%" align=left valign="bottom" bgColor=#e6efff style="BORDER-BOTTOM: #000000 2px solid">&nbsp;</TD>
    <TD
    width="1%" align=left valign="bottom" bgColor=#e6efff style="BORDER-BOTTOM: #000000 2px solid">&nbsp;</TD>
    <TD width="8%"
    align=right valign="bottom" bgColor=#e6efff style="BORDER-BOTTOM: #000000 2px solid"><B>305,350</B> </TD>
    <TD
    width="2%" align=left valign="bottom" bgColor=#e6efff style="BORDER-BOTTOM: #000000 2px solid">&nbsp;</TD>
    <TD
    width="1%" align=left valign="bottom" bgColor=#e6efff style="BORDER-BOTTOM: #000000 2px solid">&nbsp;</TD>
    <TD width="8%"
    align=right valign="bottom" bgColor=#e6efff style="BORDER-BOTTOM: #000000 2px solid"><B>305,472</B> </TD>
  <TD
    width="2%" align=left valign="bottom" bgColor=#e6efff style="BORDER-BOTTOM: #000000 2px solid">&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD width="5%" >&nbsp;</TD>
    <TD align=left valign="bottom"><B><U>Financial liabilities</U></B> </TD>
    <TD  width="1%" align=left valign="bottom">&nbsp;</TD>
    <TD width="8%" align=left valign="bottom">&nbsp; </TD>
    <TD  width="2%" align=left valign="bottom">&nbsp;</TD>
    <TD  width="1%" align=left valign="bottom">&nbsp;</TD>
    <TD width="8%" align=left valign="bottom">&nbsp; </TD>
    <TD  width="2%" align=left valign="bottom">&nbsp;</TD>
    <TD  width="1%" align=left valign="bottom">&nbsp;</TD>
    <TD width="8%" align=left valign="bottom">&nbsp; </TD>
    <TD  width="2%" align=left valign="bottom">&nbsp;</TD>
    <TD  width="1%" align=left valign="bottom">&nbsp;</TD>
    <TD width="8%" align=left valign="bottom">&nbsp; </TD>
    <TD  width="2%" align=left valign="bottom">&nbsp;</TD>
    <TD  width="1%" align=left valign="bottom">&nbsp;</TD>
    <TD width="8%" align=left valign="bottom">&nbsp; </TD>
    <TD  width="2%" align=left valign="bottom">&nbsp;</TD>
    <TD  width="1%" align=left valign="bottom">&nbsp;</TD>
    <TD width="8%" align=left valign="bottom">&nbsp; </TD>
  <TD  width="2%" align=left valign="bottom">&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD width="5%" >&nbsp;</TD>
    <TD align=left valign="bottom" bgColor=#e6efff>Accounts payable and and accrued
      liabilities </TD>
    <TD  width="1%" align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD width="8%" align=right valign="bottom" bgColor=#e6efff>- </TD>
    <TD  width="2%" align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD  width="1%" align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD width="8%" align=right valign="bottom" bgColor=#e6efff>- </TD>
    <TD  width="2%" align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD  width="1%" align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD width="8%" align=right valign="bottom" bgColor=#e6efff>- </TD>
    <TD  width="2%" align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD  width="1%" align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD width="8%" align=right valign="bottom" bgColor=#e6efff>32,132 </TD>
    <TD  width="2%" align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD  width="1%" align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD width="8%" align=right valign="bottom" bgColor=#e6efff><B>32,132</B> </TD>
    <TD  width="2%" align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD  width="1%" align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD width="8%" align=right valign="bottom" bgColor=#e6efff><B>32,132</B> </TD>
  <TD  width="2%" align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD width="5%" >&nbsp;</TD>
    <TD align=left valign="bottom">Convertible notes (note 11) <SUP>(2)</SUP> </TD>
    <TD  width="1%"
    align=left valign="bottom" style="BORDER-BOTTOM: #000000 1px solid">&nbsp;</TD>
    <TD width="8%" align=right valign="bottom" style="BORDER-BOTTOM: #000000 1px solid">- </TD>
    <TD  width="2%"
    align=left valign="bottom" style="BORDER-BOTTOM: #000000 1px solid">&nbsp;</TD>
    <TD  width="1%"
    align=left valign="bottom" style="BORDER-BOTTOM: #000000 1px solid">&nbsp;</TD>
    <TD width="8%" align=right valign="bottom" style="BORDER-BOTTOM: #000000 1px solid">- </TD>
    <TD  width="2%"
    align=left valign="bottom" style="BORDER-BOTTOM: #000000 1px solid">&nbsp;</TD>
    <TD  width="1%"
    align=left valign="bottom" style="BORDER-BOTTOM: #000000 1px solid">&nbsp;</TD>
    <TD width="8%" align=right valign="bottom" style="BORDER-BOTTOM: #000000 1px solid">- </TD>
    <TD  width="2%"
    align=left valign="bottom" style="BORDER-BOTTOM: #000000 1px solid">&nbsp;</TD>
    <TD  width="1%"
    align=left valign="bottom" style="BORDER-BOTTOM: #000000 1px solid">&nbsp;</TD>
    <TD width="8%"
      align=right valign="bottom" style="BORDER-BOTTOM: #000000 1px solid">120,279 </TD>
    <TD  width="2%"
    align=left valign="bottom" style="BORDER-BOTTOM: #000000 1px solid">&nbsp;</TD>
    <TD  width="1%"
    align=left valign="bottom" style="BORDER-BOTTOM: #000000 1px solid">&nbsp;</TD>
    <TD width="8%"
      align=right valign="bottom" style="BORDER-BOTTOM: #000000 1px solid"><B>120,279</B> </TD>
    <TD  width="2%"
    align=left valign="bottom" style="BORDER-BOTTOM: #000000 1px solid">&nbsp;</TD>
    <TD  width="1%"
    align=left valign="bottom" style="BORDER-BOTTOM: #000000 1px solid">&nbsp;</TD>
    <TD width="8%"
      align=right valign="bottom" style="BORDER-BOTTOM: #000000 1px solid"><B>143,506</B> </TD>
  <TD  width="2%"
    align=left valign="bottom" style="BORDER-BOTTOM: #000000 1px solid">&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD width="5%" >&nbsp;</TD>
    <TD align=left valign="bottom" bgColor=#e6efff>&nbsp; </TD>
    <TD
    width="1%" align=left valign="bottom" bgColor=#e6efff style="BORDER-BOTTOM: #000000 2px solid">&nbsp;</TD>
    <TD width="8%"
    align=right valign="bottom" bgColor=#e6efff style="BORDER-BOTTOM: #000000 2px solid">- </TD>
    <TD
    width="2%" align=left valign="bottom" bgColor=#e6efff style="BORDER-BOTTOM: #000000 2px solid">&nbsp;</TD>
    <TD
    width="1%" align=left valign="bottom" bgColor=#e6efff style="BORDER-BOTTOM: #000000 2px solid">&nbsp;</TD>
    <TD width="8%"
    align=right valign="bottom" bgColor=#e6efff style="BORDER-BOTTOM: #000000 2px solid">- </TD>
    <TD
    width="2%" align=left valign="bottom" bgColor=#e6efff style="BORDER-BOTTOM: #000000 2px solid">&nbsp;</TD>
    <TD
    width="1%" align=left valign="bottom" bgColor=#e6efff style="BORDER-BOTTOM: #000000 2px solid">&nbsp;</TD>
    <TD width="8%"
    align=right valign="bottom" bgColor=#e6efff style="BORDER-BOTTOM: #000000 2px solid">- </TD>
    <TD
    width="2%" align=left valign="bottom" bgColor=#e6efff style="BORDER-BOTTOM: #000000 2px solid">&nbsp;</TD>
    <TD
    width="1%" align=left valign="bottom" bgColor=#e6efff style="BORDER-BOTTOM: #000000 2px solid">&nbsp;</TD>
    <TD width="8%"
    align=right valign="bottom" bgColor=#e6efff style="BORDER-BOTTOM: #000000 2px solid">152,411 </TD>
    <TD
    width="2%" align=left valign="bottom" bgColor=#e6efff style="BORDER-BOTTOM: #000000 2px solid">&nbsp;</TD>
    <TD
    width="1%" align=left valign="bottom" bgColor=#e6efff style="BORDER-BOTTOM: #000000 2px solid">&nbsp;</TD>
    <TD width="8%"
    align=right valign="bottom" bgColor=#e6efff style="BORDER-BOTTOM: #000000 2px solid"><B>152,411</B> </TD>
    <TD
    width="2%" align=left valign="bottom" bgColor=#e6efff style="BORDER-BOTTOM: #000000 2px solid">&nbsp;</TD>
    <TD
    width="1%" align=left valign="bottom" bgColor=#e6efff style="BORDER-BOTTOM: #000000 2px solid">&nbsp;</TD>
    <TD width="8%"
    align=right valign="bottom" bgColor=#e6efff style="BORDER-BOTTOM: #000000 2px solid"><B>175,638</B> </TD>
  <TD
    width="2%" align=left valign="bottom" bgColor=#e6efff style="BORDER-BOTTOM: #000000 2px solid">&nbsp;</TD>
  </TR></TABLE><BR>
<TABLE
style="BORDER-COLOR: black; BORDER-COLLAPSE: collapse; FONT-SIZE: 10pt; "
border=0 cellSpacing=0 cellPadding=0 width="100%" BCLLIST>

  <TR>
    <TD width="5%"  >&nbsp;</TD>
    <TD vAlign=top width="5%">(1) </TD>
    <TD>
      <P align=justify>The fair value of our convertible debenture receivable is
      estimated using the discounted cash flow method at market rates on the
      balance sheet date. The fair value of the conversion feature is estimated
      using an option pricing model.</P></TD></TR>
  <TR>
    <TD width="5%" >&nbsp;</TD>
    <TD vAlign=top width="5%">(2) </TD>
    <TD>
      <P align=justify>The fair value of our convertible notes is estimated
      using average market quoted prices provided by market makers in the
      over-the-countermarket on the balance sheet date.</P></TD></TR></TABLE>
<P align=right>13</P>
<HR style="PAGE-BREAK-AFTER: always" align=center color=black SIZE=5
width="100%" noShade>
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<TABLE
style="BORDER-COLOR: black; BORDER-COLLAPSE: collapse; FONT-SIZE: 10pt; "
border=0 cellSpacing=0 cellPadding=0 width="100%">

  <TR vAlign=top>
    <TD align=left><B>Silver Standard Resources Inc.</B> </TD></TR>
  <TR vAlign=top>
    <TD align=left>Notes to Consolidated Financial Statements </TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>December 31, 2010,
      2009 and 2008 </TD></TR>
  <TR vAlign=top>
    <TD align=left>(tabular amounts expressed in thousands of United States
      dollars unless otherwise stated) </TD></TR></TABLE><BR>
<TABLE
style="BORDER-COLOR: black; BORDER-COLLAPSE: collapse; FONT-SIZE: 10pt; "
border=0 cellSpacing=0 cellPadding=0 width="100%" BCLLIST>

  <TR>
    <TD vAlign=top width="5%"><B>6</B> </TD>
    <TD colSpan=2>
      <P align=justify><B>FINANCIAL INSTRUMENTS (Cont&#146;d)</B></P></TD></TR>
  <TR>
    <TD width="5%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
  <TR>
    <TD width="5%"></TD>
    <TD vAlign=top width="5%"><B>(a)</B> </TD>
    <TD>
      <P align=justify><B>Fair value hierarchy</B></P></TD></TR>
  <TR>
    <TD width="5%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
  <TR>
    <TD width="5%"></TD>
    <TD width="5%"></TD>
    <TD>
      <P align=justify>CICA Handbook Section 3862 establishes a three-tier fair
      value hierarchy, which prioritizes the inputs used in measuring fair
      value.</P></TD></TR></TABLE><BR>
<TABLE
style="BORDER-COLOR: black; BORDER-COLLAPSE: collapse; FONT-SIZE: 10pt; "
border=0 cellSpacing=0 cellPadding=0 width="100%">

  <TR vAlign=top>
    <TD width="10%"  >&nbsp;</TD>
    <TD align=left valign="bottom">&nbsp; </TD>
    <TD  width="1%"
    align=left valign="bottom" style="BORDER-BOTTOM: #000000 1px solid">&nbsp;</TD>
    <TD width="10%" align=left valign="bottom" style="BORDER-BOTTOM: #000000 1px solid">&nbsp;    </TD>
    <TD  width="2%"
    align=left valign="bottom" style="BORDER-BOTTOM: #000000 1px solid">&nbsp;</TD>
    <TD  width="1%"
    align=left valign="bottom" style="BORDER-BOTTOM: #000000 1px solid">&nbsp;</TD>
    <TD width="36%" colSpan=7
    align=right valign="bottom" style="BORDER-BOTTOM: #000000 1px solid"><B>Fair Value at December 31, 2010</B> </TD>
  <TD  width="2%"
    align=left valign="bottom" style="BORDER-BOTTOM: #000000 1px solid">&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD width="10%" >&nbsp;</TD>
    <TD align=left valign="bottom">&nbsp; </TD>
    <TD  width="1%" align=left valign="bottom">&nbsp;</TD>
    <TD width="10%" align=right valign="bottom"><B>Total</B> </TD>
    <TD  width="2%" align=left valign="bottom">&nbsp;</TD>
    <TD  width="1%" align=left valign="bottom">&nbsp;</TD>
    <TD width="10%" align=right valign="bottom"><B>Level 1</B> </TD>
    <TD  width="2%" align=left valign="bottom">&nbsp;</TD>
    <TD  width="1%" align=left valign="bottom">&nbsp;</TD>
    <TD width="10%" align=right valign="bottom"><B>Level 2</B> </TD>
    <TD  width="2%" align=left valign="bottom">&nbsp;</TD>
    <TD  width="1%" align=left valign="bottom">&nbsp;</TD>
    <TD width="10%" align=right valign="bottom"><B>Level 3</B> </TD>
  <TD  width="2%" align=left valign="bottom">&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD width="10%" >&nbsp;</TD>
    <TD align=left valign="bottom">&nbsp; </TD>
    <TD  width="1%"
    align=left valign="bottom" style="BORDER-BOTTOM: #000000 1px solid"></TD>
    <TD width="10%"
      align=right valign="bottom" style="BORDER-BOTTOM: #000000 1px solid"><STRONG>$</STRONG>&nbsp;</TD>
    <TD  width="2%"
    align=left valign="bottom" style="BORDER-BOTTOM: #000000 1px solid">&nbsp;</TD>
    <TD  width="1%"
    align=left valign="bottom" style="BORDER-BOTTOM: #000000 1px solid"><B></B></TD>
    <TD width="10%"
      align=right valign="bottom" style="BORDER-BOTTOM: #000000 1px solid"><STRONG>$</STRONG>&nbsp;</TD>
    <TD  width="2%"
    align=left valign="bottom" style="BORDER-BOTTOM: #000000 1px solid">&nbsp;</TD>
    <TD  width="1%"
    align=left valign="bottom" style="BORDER-BOTTOM: #000000 1px solid"><B></B></TD>
    <TD width="10%"
      align=right valign="bottom" style="BORDER-BOTTOM: #000000 1px solid"><STRONG>$</STRONG>&nbsp;</TD>
    <TD  width="2%"
    align=left valign="bottom" style="BORDER-BOTTOM: #000000 1px solid">&nbsp;</TD>
    <TD  width="1%"
    align=left valign="bottom" style="BORDER-BOTTOM: #000000 1px solid"><B></B></TD>
    <TD width="10%"
      align=right valign="bottom" style="BORDER-BOTTOM: #000000 1px solid"><STRONG>$</STRONG>&nbsp;</TD>
  <TD  width="2%"
    align=left valign="bottom" style="BORDER-BOTTOM: #000000 1px solid">&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD width="10%" >&nbsp;</TD>
    <TD align=left valign="bottom" bgColor=#e6efff>Assets: </TD>
    <TD  width="1%" align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD width="10%" align=left valign="bottom" bgColor=#e6efff>&nbsp; </TD>
    <TD  width="2%" align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD  width="1%" align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD width="10%" align=left valign="bottom" bgColor=#e6efff>&nbsp; </TD>
    <TD  width="2%" align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD  width="1%" align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD width="10%" align=left valign="bottom" bgColor=#e6efff>&nbsp; </TD>
    <TD  width="2%" align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD  width="1%" align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD width="10%" align=left valign="bottom" bgColor=#e6efff>&nbsp; </TD>
  <TD  width="2%" align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD width="10%" >&nbsp;</TD>
    <TD align=left valign="bottom">&nbsp; &nbsp;Marketable securities </TD>
    <TD  width="1%" align=left valign="bottom">&nbsp;</TD>
    <TD width="10%" align=right valign="bottom"><B>33,465</B> </TD>
    <TD  width="2%" align=left valign="bottom">&nbsp;</TD>
    <TD  width="1%" align=left valign="bottom">&nbsp;</TD>
    <TD width="10%" align=right valign="bottom">33,465 </TD>
    <TD  width="2%" align=left valign="bottom">&nbsp;</TD>
    <TD  width="1%" align=left valign="bottom">&nbsp;</TD>
    <TD width="10%" align=right valign="bottom">- </TD>
    <TD  width="2%" align=left valign="bottom">&nbsp;</TD>
    <TD  width="1%" align=left valign="bottom">&nbsp;</TD>
    <TD width="10%" align=right valign="bottom">- </TD>
  <TD  width="2%" align=left valign="bottom">&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD width="10%" >&nbsp;</TD>
    <TD align=left valign="bottom" bgColor=#e6efff>&nbsp; &nbsp;Trade receivables from
      provisional invoices </TD>
    <TD  width="1%" align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD width="10%" align=right valign="bottom" bgColor=#e6efff><B>15,409</B> </TD>
    <TD  width="2%" align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD  width="1%" align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD width="10%" align=right valign="bottom" bgColor=#e6efff>- </TD>
    <TD  width="2%" align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD  width="1%" align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD width="10%" align=right valign="bottom" bgColor=#e6efff>15,409 </TD>
    <TD  width="2%" align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD  width="1%" align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD width="10%" align=right valign="bottom" bgColor=#e6efff>- </TD>
  <TD  width="2%" align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD width="10%" >&nbsp;</TD>
    <TD align=left valign="bottom">&nbsp; &nbsp;Restricted cash </TD>
    <TD  width="1%" align=left valign="bottom">&nbsp;</TD>
    <TD width="10%" align=right valign="bottom"><B>2,071</B> </TD>
    <TD  width="2%" align=left valign="bottom">&nbsp;</TD>
    <TD  width="1%" align=left valign="bottom">&nbsp;</TD>
    <TD width="10%" align=right valign="bottom">2,071 </TD>
    <TD  width="2%" align=left valign="bottom">&nbsp;</TD>
    <TD  width="1%" align=left valign="bottom">&nbsp;</TD>
    <TD width="10%" align=right valign="bottom">- </TD>
    <TD  width="2%" align=left valign="bottom">&nbsp;</TD>
    <TD  width="1%" align=left valign="bottom">&nbsp;</TD>
    <TD width="10%" align=right valign="bottom">- </TD>
  <TD  width="2%" align=left valign="bottom">&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD width="10%" >&nbsp;</TD>
    <TD align=left valign="bottom" bgColor=#e6efff>&nbsp; &nbsp;Embedded conversion option </TD>
    <TD
    width="1%" align=left valign="bottom" bgColor=#e6efff style="BORDER-BOTTOM: #000000 1px solid">&nbsp;</TD>
    <TD width="10%"
    align=right valign="bottom" bgColor=#e6efff style="BORDER-BOTTOM: #000000 1px solid"><B>386</B> </TD>
    <TD
    width="2%" align=left valign="bottom" bgColor=#e6efff style="BORDER-BOTTOM: #000000 1px solid">&nbsp;</TD>
    <TD
    width="1%" align=left valign="bottom" bgColor=#e6efff style="BORDER-BOTTOM: #000000 1px solid">&nbsp;</TD>
    <TD width="10%"
    align=right valign="bottom" bgColor=#e6efff style="BORDER-BOTTOM: #000000 1px solid">- </TD>
    <TD
    width="2%" align=left valign="bottom" bgColor=#e6efff style="BORDER-BOTTOM: #000000 1px solid">&nbsp;</TD>
    <TD
    width="1%" align=left valign="bottom" bgColor=#e6efff style="BORDER-BOTTOM: #000000 1px solid">&nbsp;</TD>
    <TD width="10%"
    align=right valign="bottom" bgColor=#e6efff style="BORDER-BOTTOM: #000000 1px solid">386 </TD>
    <TD
    width="2%" align=left valign="bottom" bgColor=#e6efff style="BORDER-BOTTOM: #000000 1px solid">&nbsp;</TD>
    <TD
    width="1%" align=left valign="bottom" bgColor=#e6efff style="BORDER-BOTTOM: #000000 1px solid">&nbsp;</TD>
    <TD width="10%"
    align=right valign="bottom" bgColor=#e6efff style="BORDER-BOTTOM: #000000 1px solid">- </TD>
  <TD
    width="2%" align=left valign="bottom" bgColor=#e6efff style="BORDER-BOTTOM: #000000 1px solid">&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD width="10%" >&nbsp;</TD>
    <TD align=left valign="bottom">&nbsp; </TD>
    <TD  width="1%"
    align=left valign="bottom" style="BORDER-BOTTOM: #000000 2px solid">&nbsp;</TD>
    <TD width="10%"
      align=right valign="bottom" style="BORDER-BOTTOM: #000000 2px solid"><B>51,331</B> </TD>
    <TD  width="2%"
    align=left valign="bottom" style="BORDER-BOTTOM: #000000 2px solid">&nbsp;</TD>
    <TD  width="1%"
    align=left valign="bottom" style="BORDER-BOTTOM: #000000 2px solid">&nbsp;</TD>
    <TD width="10%"
      align=right valign="bottom" style="BORDER-BOTTOM: #000000 2px solid">35,536 </TD>
    <TD  width="2%"
    align=left valign="bottom" style="BORDER-BOTTOM: #000000 2px solid">&nbsp;</TD>
    <TD  width="1%"
    align=left valign="bottom" style="BORDER-BOTTOM: #000000 2px solid">&nbsp;</TD>
    <TD width="10%"
      align=right valign="bottom" style="BORDER-BOTTOM: #000000 2px solid">15,795 </TD>
    <TD  width="2%"
    align=left valign="bottom" style="BORDER-BOTTOM: #000000 2px solid">&nbsp;</TD>
    <TD  width="1%"
    align=left valign="bottom" style="BORDER-BOTTOM: #000000 2px solid">&nbsp;</TD>
    <TD width="10%" align=right valign="bottom" style="BORDER-BOTTOM: #000000 2px solid">- </TD>
  <TD  width="2%"
    align=left valign="bottom" style="BORDER-BOTTOM: #000000 2px solid">&nbsp;</TD>
  </TR></TABLE>
<P style="MARGIN-LEFT: 5%" align=justify>The three levels of the fair value
hierarchy established by Section 3862 are as follows:</P>
<TABLE
style="BORDER-COLOR: black; BORDER-COLLAPSE: collapse; FONT-SIZE: 10pt; "
border=0 cellSpacing=0 cellPadding=0 width="100%">

  <TR vAlign=top>
    <TD width="10%"  ></TD>
    <TD align=left >Level 1: </TD>
    <TD width="80%" align=left>
      <P align=justify>Unadjusted quoted prices in active markets that are
      accessible at the measurement date for identical assets or liabilities.
      </P></TD></TR>
  <TR>
    <TD  width="10%">&nbsp;</TD>
    <TD  align=left>&nbsp;</TD>
    <TD  width="80%" align=left>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD width="10%" ></TD>
    <TD align=left ></TD>
    <TD width="80%" align=left>
      <P align=justify>Restricted cash is valued using quoted market prices.
      Marketable securities, consisting of available-for&#150;sale investments with
      no trading restrictions, are valued using a market approach based upon
      unadjusted quoted prices for identical assets in an active market obtained
      from securities exchanges. As a result, these financial assets have been
      included in Level 1 of the fair value hierarchy. </P></TD></TR>
  <TR>
    <TD  width="10%">&nbsp;</TD>
    <TD  align=left>&nbsp;</TD>
    <TD  width="80%" align=left>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD width="10%" ></TD>
    <TD align=left >Level 2: </TD>
    <TD width="80%" align=left>
      <P align=justify>Inputs other than quoted prices included in Level 1 that
      are observable for the asset or liability, either directly or indirectly,
      for substantially the full contractual term. </P></TD></TR>
  <TR>
    <TD  width="10%">&nbsp;</TD>
    <TD  align=left>&nbsp;</TD>
    <TD  width="80%" align=left>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD width="10%" ></TD>
    <TD align=left ></TD>
    <TD width="80%" align=left>
      <P align=justify>Trade receivables from provisional invoices for
      concentrate sales are included within Level 2, as they are valued using
      commodity quoted market prices as a basis for the valuation. </P></TD></TR>
  <TR>
    <TD  width="10%">&nbsp;</TD>
    <TD  align=left>&nbsp;</TD>
    <TD  width="80%" align=left>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD width="10%" ></TD>
    <TD align=left ></TD>
    <TD width="80%" align=left>
      <P align=justify>The embedded conversion option within the convertible
      debenture is included in Level 2 of the fair value hierarchy as it is
      valued using an option pricing model. This model requires a variety of
      inputs, including, but not limited to, contractual terms, market prices,
      forward price curves, yield curves and credit spreads. </P></TD></TR>
  <TR>
    <TD  width="10%">&nbsp;</TD>
    <TD  align=left>&nbsp;</TD>
    <TD  width="80%" align=left>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD width="10%" ></TD>
    <TD align=left >Level 3: </TD>
    <TD width="80%" align=left>
      <P align=justify>Inputs for the asset or liability are not based on
      observable market data. We include our investments in asset-backed
      commercial paper as Level 3 in the fair value hierarchy because they trade
      infrequently. We review these instruments periodically and estimate an
      impairment charge based on management&#146;s best estimates, which are
      unobservable inputs. As at December 31, 2010 and 2009, the fair value was
      considered to be $nil. </P></TD></TR></TABLE>
<P align=right>14</P>
<HR style="PAGE-BREAK-AFTER: always" align=center color=black SIZE=5
width="100%" noShade>
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<TABLE
style="BORDER-COLOR: black; BORDER-COLLAPSE: collapse; FONT-SIZE: 10pt; "
border=0 cellSpacing=0 cellPadding=0 width="100%">

  <TR vAlign=top>
    <TD align=left><B>Silver Standard Resources Inc.</B> </TD></TR>
  <TR vAlign=top>
    <TD align=left>Notes to Consolidated Financial Statements </TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>December 31, 2010,
      2009 and 2008 </TD></TR>
  <TR vAlign=top>
    <TD align=left>(tabular amounts expressed in thousands of United States
      dollars unless otherwise stated) </TD></TR></TABLE><BR>
<TABLE
style="BORDER-COLOR: black; BORDER-COLLAPSE: collapse; FONT-SIZE: 10pt; "
border=0 cellSpacing=0 cellPadding=0 width="100%" BCLLIST>

  <TR>
    <TD vAlign=top width="5%"><B>6</B> </TD>
    <TD colSpan=2>
      <P align=justify><B>FINANCIAL INSTRUMENTS (Cont&#146;d)</B></P></TD></TR>
  <TR>
    <TD width="5%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
  <TR>
    <TD width="5%"></TD>
    <TD vAlign=top width="5%"><B>(b)</B> </TD>
    <TD>
      <P align=justify><B>Marketable Securities</B></P></TD></TR>
  <TR>
    <TD width="5%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
  <TR>
    <TD width="5%"></TD>
    <TD width="5%"></TD>
    <TD>
      <P align=justify>At December 31, 2010, we held marketable securities
      designated as available-for-sale with total fair value of $33,465,000
      (2009 - $17,863,000; 2008 - $10,923,000) which had a total cost of
      $8,604,000 (2009 - $7,732,000; 2008 - $8,533,000). The mark-to-market gain
      (loss) for these instruments at December 31 is as
  follows:</P></TD></TR></TABLE><BR>
<TABLE
style="BORDER-COLOR: black; BORDER-COLLAPSE: collapse; FONT-SIZE: 10pt; "
border=0 cellSpacing=0 cellPadding=0 width="100%">

  <TR vAlign=top>
    <TD width="10%"  >&nbsp;</TD>
    <TD align=left valign="bottom"><B>Available for sale</B> </TD>
    <TD  width="1%"
    align=left valign="bottom" style="BORDER-BOTTOM: #000000 1px solid">&nbsp;</TD>
    <TD width="36%" colSpan=7
    align=right valign="bottom" style="BORDER-BOTTOM: #000000 1px solid"><B>Mark-to-market gain (loss) in OCI</B> </TD>
  <TD  width="2%"
    align=left valign="bottom" style="BORDER-BOTTOM: #000000 1px solid">&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD width="10%" >&nbsp;</TD>
    <TD align=left valign="bottom">&nbsp; </TD>
    <TD  width="1%" align=left valign="bottom">&nbsp;</TD>
    <TD width="10%" align=right valign="bottom"><B>2010</B> </TD>
    <TD  width="2%" align=left valign="bottom">&nbsp;</TD>
    <TD  width="1%" align=left valign="bottom">&nbsp;</TD>
    <TD width="10%" align=right valign="bottom"><B>2009</B> </TD>
    <TD  width="2%" align=left valign="bottom">&nbsp;</TD>
    <TD  width="1%" align=left valign="bottom">&nbsp;</TD>
    <TD width="10%" align=right valign="bottom"><B>2008</B> </TD>
  <TD  width="2%" align=left valign="bottom">&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD width="10%" >&nbsp;</TD>
    <TD align=left valign="bottom">&nbsp; </TD>
    <TD  width="1%"
    align=left valign="bottom" style="BORDER-BOTTOM: #000000 1px solid"><B></B></TD>
    <TD width="10%"
      align=right valign="bottom" style="BORDER-BOTTOM: #000000 1px solid"><STRONG>$</STRONG>&nbsp;</TD>
    <TD  width="2%"
    align=left valign="bottom" style="BORDER-BOTTOM: #000000 1px solid">&nbsp;</TD>
    <TD  width="1%"
    align=left valign="bottom" style="BORDER-BOTTOM: #000000 1px solid"><B></B></TD>
    <TD width="10%"
      align=right valign="bottom" style="BORDER-BOTTOM: #000000 1px solid"><STRONG>$</STRONG>&nbsp;</TD>
    <TD  width="2%"
    align=left valign="bottom" style="BORDER-BOTTOM: #000000 1px solid">&nbsp;</TD>
    <TD  width="1%"
    align=left valign="bottom" style="BORDER-BOTTOM: #000000 1px solid"><B></B></TD>
    <TD width="10%"
      align=right valign="bottom" style="BORDER-BOTTOM: #000000 1px solid"><STRONG>$</STRONG>&nbsp;</TD>
  <TD  width="2%"
    align=left valign="bottom" style="BORDER-BOTTOM: #000000 1px solid">&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD width="10%" >&nbsp;</TD>
    <TD align=left valign="bottom" bgColor=#e6efff>Unrealized gain (loss) on marketable
      securities </TD>
    <TD  width="1%" align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD bgColor=#e6efff vAlign=bottom width="10%" align=right><B>17,142</B>
</TD>
    <TD bgColor=#e6efff vAlign=bottom  width="2%"
    align=left>&nbsp;</TD>
    <TD bgColor=#e6efff vAlign=bottom  width="1%"
    align=left>&nbsp;</TD>
    <TD bgColor=#e6efff vAlign=bottom width="10%" align=right>8,712 </TD>
    <TD bgColor=#e6efff vAlign=bottom  width="2%"
    align=left>&nbsp;</TD>
    <TD bgColor=#e6efff vAlign=bottom  width="1%"
    align=left>&nbsp;</TD>
    <TD bgColor=#e6efff vAlign=bottom width="10%" align=right>(22,713</TD>
    <TD bgColor=#e6efff vAlign=bottom  width="2%" align=left>)
  </TD></TR>
  <TR vAlign=top>
    <TD width="10%" >&nbsp;</TD>
    <TD align=left valign="bottom">Future tax expense (recovery) in OCI </TD>
    <TD  width="1%"
    align=left valign="bottom" style="BORDER-BOTTOM: #000000 1px solid">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom width="10%"
    align=right><B>(2,352</B></TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom
    width="2%" align=left><B>)</B> </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom
    width="1%" align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom width="10%"
    align=right>(1,345</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom
    width="2%" align=left>) </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom
    width="1%" align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom width="10%"
    align=right>3,503 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom
    width="2%" align=left>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD width="10%" >&nbsp;</TD>
    <TD align=left valign="bottom" bgColor=#e6efff>&nbsp; </TD>
    <TD  width="1%" align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD bgColor=#e6efff vAlign=bottom width="10%" align=right><B>14,790</B>
</TD>
    <TD bgColor=#e6efff vAlign=bottom  width="2%"
    align=left>&nbsp;</TD>
    <TD bgColor=#e6efff vAlign=bottom  width="1%"
    align=left>&nbsp;</TD>
    <TD bgColor=#e6efff vAlign=bottom width="10%" align=right>7,367 </TD>
    <TD bgColor=#e6efff vAlign=bottom  width="2%"
    align=left>&nbsp;</TD>
    <TD bgColor=#e6efff vAlign=bottom  width="1%"
    align=left>&nbsp;</TD>
    <TD bgColor=#e6efff vAlign=bottom width="10%" align=right>(19,210</TD>
    <TD bgColor=#e6efff vAlign=bottom  width="2%" align=left>)
  </TD></TR>
  <TR vAlign=top>
    <TD width="10%" >&nbsp;</TD>
    <TD align=left valign="bottom">Realized gains recycled to net loss, net of tax
      <BR>
    &nbsp;&nbsp;&nbsp;&nbsp; $469 (2009 - $311; 2008 - $356) </TD>
    <TD  width="1%" align=left valign="bottom">&nbsp;</TD>
    <TD vAlign=bottom width="10%" align=right><B>(2,645</B></TD>
    <TD vAlign=bottom  width="2%" align=left><B>)</B> </TD>
    <TD vAlign=bottom  width="1%" align=left>&nbsp;</TD>
    <TD vAlign=bottom width="10%" align=right>(1,513</TD>
    <TD vAlign=bottom  width="2%" align=left>) </TD>
    <TD vAlign=bottom  width="1%" align=left>&nbsp;</TD>
    <TD vAlign=bottom width="10%" align=right>(1,734</TD>
    <TD vAlign=bottom  width="2%" align=left>) </TD></TR>
  <TR vAlign=top>
    <TD width="10%" >&nbsp;</TD>
    <TD align=left valign="bottom" bgColor=#e6efff>Reclassification adjustment for unrealized
      impairment losses included <BR>
      &nbsp;&nbsp;&nbsp;&nbsp; in net loss, net
      of tax - $nil (2009 - $nil; 2008 - $466) </TD>
    <TD
    width="1%" align=left valign="bottom" bgColor=#e6efff style="BORDER-BOTTOM: #000000 1px solid">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff vAlign=bottom
    width="10%" align=right><B>-</B> </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff vAlign=bottom
     width="2%" align=left><BR></TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff vAlign=bottom
     width="1%" align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff vAlign=bottom
    width="10%" align=right>- </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff vAlign=bottom
     width="2%" align=left><BR></TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff vAlign=bottom
     width="1%" align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff vAlign=bottom
    width="10%" align=right>4,425 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff vAlign=bottom
     width="2%" align=left><BR></TD></TR>
  <TR vAlign=top>
    <TD width="10%" >&nbsp;</TD>
    <TD align=left valign="bottom">&nbsp; </TD>
    <TD  width="1%"
    align=left valign="bottom" style="BORDER-BOTTOM: #000000 2px solid">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" vAlign=bottom width="10%"
    align=right><B>12,145</B> </TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" vAlign=bottom
    width="2%" align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" vAlign=bottom
    width="1%" align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" vAlign=bottom width="10%"
    align=right><B>5,854</B> </TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" vAlign=bottom
    width="2%" align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" vAlign=bottom
    width="1%" align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" vAlign=bottom width="10%"
    align=right><B>(16,519</B></TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" vAlign=bottom
    width="2%" align=left><B>)</B> </TD></TR></TABLE><BR>
<TABLE
style="BORDER-COLOR: black; BORDER-COLLAPSE: collapse; FONT-SIZE: 10pt; "
border=0 cellSpacing=0 cellPadding=0 width="100%">

  <TR vAlign=top>
    <TD width="10%"  >&nbsp;</TD>
    <TD align=left valign="bottom"><B>Held for trading</B> </TD>
    <TD  width="1%"
    align=left valign="bottom" style="BORDER-BOTTOM: #000000 1px solid">&nbsp;</TD>
    <TD width="10%" align=left valign="bottom" style="BORDER-BOTTOM: #000000 1px solid">&nbsp;    </TD>
    <TD  width="2%"
    align=left valign="bottom" style="BORDER-BOTTOM: #000000 1px solid">&nbsp;</TD>
    <TD  width="1%"
    align=left valign="bottom" style="BORDER-BOTTOM: #000000 1px solid">&nbsp;</TD>
    <TD width="23%" colSpan=4
    align=right valign="bottom" style="BORDER-BOTTOM: #000000 1px solid"><B>Mark-to-market loss in net loss</B> </TD>
  <TD  width="2%"
    align=left valign="bottom" style="BORDER-BOTTOM: #000000 1px solid">&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD width="10%" >&nbsp;</TD>
    <TD align=left valign="bottom">&nbsp; </TD>
    <TD  width="1%" align=left valign="bottom">&nbsp;</TD>
    <TD width="10%" align=right valign="bottom"><B>2010</B> </TD>
    <TD  width="2%" align=left valign="bottom">&nbsp;</TD>
    <TD  width="1%" align=left valign="bottom">&nbsp;</TD>
    <TD width="10%" align=right valign="bottom"><B>2009</B> </TD>
    <TD  width="2%" align=left valign="bottom">&nbsp;</TD>
    <TD  width="1%" align=left valign="bottom">&nbsp;</TD>
    <TD width="10%" align=right valign="bottom"><B>2008</B> </TD>
  <TD  width="2%" align=left valign="bottom">&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD width="10%" >&nbsp;</TD>
    <TD align=left valign="bottom">&nbsp; </TD>
    <TD  width="1%"
    align=left valign="bottom" style="BORDER-BOTTOM: #000000 1px solid"><B></B></TD>
    <TD width="10%"
      align=right valign="bottom" style="BORDER-BOTTOM: #000000 1px solid"><STRONG>$</STRONG>&nbsp;</TD>
    <TD  width="2%"
    align=left valign="bottom" style="BORDER-BOTTOM: #000000 1px solid">&nbsp;</TD>
    <TD  width="1%"
    align=left valign="bottom" style="BORDER-BOTTOM: #000000 1px solid"><B></B></TD>
    <TD width="10%"
      align=right valign="bottom" style="BORDER-BOTTOM: #000000 1px solid"><STRONG>$</STRONG>&nbsp;</TD>
    <TD  width="2%"
    align=left valign="bottom" style="BORDER-BOTTOM: #000000 1px solid">&nbsp;</TD>
    <TD  width="1%"
    align=left valign="bottom" style="BORDER-BOTTOM: #000000 1px solid"><B></B></TD>
    <TD width="10%"
      align=right valign="bottom" style="BORDER-BOTTOM: #000000 1px solid"><STRONG>$</STRONG>&nbsp;</TD>
  <TD  width="2%"
    align=left valign="bottom" style="BORDER-BOTTOM: #000000 1px solid">&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD width="10%" >&nbsp;</TD>
    <TD align=left valign="bottom" bgColor=#e6efff>Loss on warrants held </TD>
    <TD  width="1%" align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD width="10%" align=right valign="bottom" bgColor=#e6efff><B>-</B> </TD>
    <TD  width="2%" align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD  width="1%" align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD width="10%" align=right valign="bottom" bgColor=#e6efff>- </TD>
    <TD  width="2%" align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD  width="1%" align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD width="10%" align=right valign="bottom" bgColor=#e6efff>(27</TD>
    <TD  width="2%" align=left valign="bottom" bgColor=#e6efff>)</TD>
  </TR></TABLE><BR>
<TABLE
style="BORDER-COLOR: black; BORDER-COLLAPSE: collapse; FONT-SIZE: 10pt; "
border=0 cellSpacing=0 cellPadding=0 width="100%" BCLLIST>

  <TR>
    <TD width="5%"  >&nbsp;</TD>
    <TD width="5%"></TD>
    <TD>
      <P align=justify>Our warrants designated as held-for-trading expired in
      February 2009. At December 31, 2008, the warrants had a fair value of
      $nil, resulting in a mark-to-market loss of $27,000.</P></TD></TR>
  <TR>
    <TD width="5%" >&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
  <TR>
    <TD width="5%" >&nbsp;</TD>
    <TD vAlign=top width="5%"><B>(c)</B> </TD>
    <TD>
      <P align=justify><B>Convertible debenture receivable</B></P></TD></TR>
  <TR>
    <TD width="5%" >&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
  <TR>
    <TD width="5%" >&nbsp;</TD>
    <TD width="5%"></TD>
    <TD>
      <P align=justify>In July 2008, we received a C$10 million convertible
      debenture from Aurcana Corporation (&#147;Aurcana&#148;) 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 $134,000 on July 15,
      2009. As a result of this restructuring, we recorded a write-down of
      $2,002,000 during the year ended December 31, 2009, including $118,000 of
      accrued interest and $1,884,000 on our convertible debenture
      receivable.</P></TD></TR>
  <TR>
    <TD width="5%" >&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
  <TR>
    <TD width="5%" >&nbsp;</TD>
    <TD width="5%"></TD>
    <TD>
      <P align=justify>At December 31, 2010, the carrying value of the debenture
      was $7,180,000 (2009 - $6,081,000). Of this amount, $6,794,000 (2009 -
      $5,606,000) represents the carrying value of the note receivable component
      estimated using a discounted cash flow model method and $386,000 (2009 -
      $475,000) represents the fair value of the conversion feature.</P></TD></TR>
  <TR>
    <TD width="5%" >&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
  <TR>
    <TD width="5%" >&nbsp;</TD>
    <TD width="5%"></TD>
    <TD>
      <P align=justify>For the year ended December 31, 2010, interest and
      accretion income of $1,253,000 (2009 - $999,000; 2008 - $493,000) was
      recorded in earnings in relation to the note receivable component and an
      unrealized loss of $102,000 (2009 - unrealized gain of $412,000; 2008 &#150;
      unrealized loss of $1,389,000) was recorded in relation to adjusting the
      fair value of the conversion feature (note 18).</P></TD></TR></TABLE>
<P align=right>15</P>
<HR style="PAGE-BREAK-AFTER: always" align=center color=black SIZE=5
width="100%" noShade>
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<TABLE
style="BORDER-COLOR: black; BORDER-COLLAPSE: collapse; FONT-SIZE: 10pt; "
border=0 cellSpacing=0 cellPadding=0 width="100%">

  <TR vAlign=top>
    <TD align=left><B>Silver Standard Resources Inc.</B> </TD></TR>
  <TR vAlign=top>
    <TD align=left>Notes to Consolidated Financial Statements </TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>December 31, 2010,
      2009 and 2008 </TD></TR>
  <TR vAlign=top>
    <TD align=left>(tabular amounts expressed in thousands of United States
      dollars unless otherwise stated) </TD></TR></TABLE><BR>
<TABLE
style="BORDER-COLOR: black; BORDER-COLLAPSE: collapse; FONT-SIZE: 10pt; "
border=0 cellSpacing=0 cellPadding=0 width="100%" BCLLIST>

  <TR>
    <TD vAlign=top width="5%"><B>6</B> </TD>
    <TD colSpan=2>
      <P align=justify><B>FINANCIAL INSTRUMENTS (Cont&#146;d)</B></P></TD></TR>
  <TR>
    <TD width="5%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
  <TR>
    <TD width="5%"></TD>
    <TD vAlign=top width="5%"><B>(d)</B> </TD>
    <TD>
      <P align=justify><B>Financial Risk Management</B></P></TD></TR>
  <TR>
    <TD width="5%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
  <TR>
    <TD width="5%"></TD>
    <TD width="5%"></TD>
    <TD>
      <P align=justify>Our activities expose us to a variety of financial risks,
      including credit risk, liquidity risk and market risk. From time to time,
      we may use foreign exchange contracts, commodity price contracts and
      interest rate swaps to manage exposure to fluctuations in foreign
      exchange, metal prices and interest rates. We do not have a practice of
      trading derivatives. In the past, our use of derivatives was limited to
      specific programs to manage fluctuations in foreign exchange risk, which
      are subject to the oversight of the Board of Directors.</P></TD></TR>
  <TR>
    <TD width="5%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
  <TR>
    <TD width="5%"></TD>
    <TD width="5%"></TD>
    <TD>
      <P align=justify><B><I>Credit Risk</I></B></P></TD></TR>
  <TR>
    <TD width="5%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
  <TR>
    <TD width="5%"></TD>
    <TD width="5%"></TD>
    <TD>
      <P align=justify>Credit risk arises from the non-performance by
      counterparties of contractual financial obligations. Our credit risk
      arises primarily with respect to our cash and cash equivalents, accounts
      receivable, convertible debenture receivable and value added tax
      recoverable. We have established internal policies to mitigate our
      exposure to credit risk, including limiting the concentration of credit
      risk, ensuring a minimum credit worthiness of customers and monitoring
      liquidity of available funds.</P></TD></TR>
  <TR>
    <TD width="5%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
  <TR>
    <TD width="5%"></TD>
    <TD width="5%"></TD>
    <TD>
      <P align=justify>We manage our credit risk on cash and cash equivalents by
      investing only in government obligations and the credit risk associated
      with these investments is considered to be low. At December 31, 2010,
      there were no significant concentrations of credit risk outside of
      government bonds and no amounts were held as collateral.</P></TD></TR>
  <TR>
    <TD width="5%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
  <TR>
    <TD width="5%"></TD>
    <TD width="5%"></TD>
    <TD>
      <P align=justify>During 2010, we sold all of our concentrate production to
      one customer. Our customer is a large international organization and our
      credit risk associated with trade receivables is considered to be low. We
      have not experienced any bad debts with this customer.</P></TD></TR>
  <TR>
    <TD width="5%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
  <TR>
    <TD width="5%"></TD>
    <TD width="5%"></TD>
    <TD>
      <P align=justify>During the year ended December 31, 2009, we renegotiated
      the terms associated with our convertible debenture receivable (note
      6(c)).</P></TD></TR>
  <TR>
    <TD width="5%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
  <TR>
    <TD width="5%"></TD>
    <TD width="5%"></TD>
    <TD>
      <P align=justify>Argentinean law states that valued added tax (&#147;VAT&#148;) paid
      is recoverable once the company reaches the production stage. We commenced
      production at our Pirquitas property on December 1, 2009 and as a result,
      we have begun the process of applying to the Argentinean government to
      recover our VAT.</P></TD></TR>
  <TR>
    <TD width="5%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
  <TR>
    <TD width="5%"></TD>
    <TD width="5%"></TD>
    <TD>
      <P align=justify>During the year ended December 31, 2010 we incurred
      $8,740,000 in export duties from the sale of silver concentrate for which
      repayment is being claimed. Owing to uncertainty over the recoverability
      of these duties the amount has been accrued in full and no receivable
      recognised, if these duties are recovered in the future we will recognize
      a gain in the statement of earnings for the amount
  recovered.</P></TD></TR></TABLE>
<P align=right>16</P>
<HR style="PAGE-BREAK-AFTER: always" align=center color=black SIZE=5
width="100%" noShade>
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<TABLE
style="BORDER-COLOR: black; BORDER-COLLAPSE: collapse; FONT-SIZE: 10pt; "
border=0 cellSpacing=0 cellPadding=0 width="100%">

  <TR vAlign=top>
    <TD align=left><B>Silver Standard Resources Inc.</B> </TD></TR>
  <TR vAlign=top>
    <TD align=left>Notes to Consolidated Financial Statements </TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>December 31, 2010,
      2009 and 2008 </TD></TR>
  <TR vAlign=top>
    <TD align=left>(tabular amounts expressed in thousands of United States
      dollars unless otherwise stated) </TD></TR></TABLE><BR>
<TABLE
style="BORDER-COLOR: black; BORDER-COLLAPSE: collapse; FONT-SIZE: 10pt; "
border=0 cellSpacing=0 cellPadding=0 width="100%">

  <TR vAlign=top>
    <TD align=left ><B>6</B> </TD>
    <TD width="95%" align=left><B>FINANCIAL INSTRUMENTS (Cont&#146;d)</B>
  </TD></TR></TABLE>
<P style="MARGIN-LEFT: 10%" align=justify>Our maximum exposure to credit risk at
December 31, 2010 is as follows:</P>
<TABLE
style="BORDER-COLOR: black; BORDER-COLLAPSE: collapse; FONT-SIZE: 10pt; "
border=0 cellSpacing=0 cellPadding=0 width="100%">

  <TR vAlign=top>
    <TD width="10%"  >&nbsp;</TD>
    <TD align=left valign="bottom">&nbsp; </TD>
    <TD  width="1%" align=left valign="bottom">&nbsp;</TD>
    <TD width="12%" align=right valign="bottom"><B>2010</B> </TD>
    <TD  width="2%" align=left valign="bottom">&nbsp;</TD>
    <TD  width="1%" align=left valign="bottom">&nbsp;</TD>
    <TD width="12%" align=right valign="bottom"><B>2009</B> </TD>
  <TD  width="2%" align=left valign="bottom">&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD width="10%" >&nbsp;</TD>
    <TD align=left valign="bottom">&nbsp; </TD>
    <TD  width="1%"
    align=left valign="bottom" style="BORDER-BOTTOM: #000000 1px solid"><B></B></TD>
    <TD width="12%"
      align=right valign="bottom" style="BORDER-BOTTOM: #000000 1px solid"><STRONG>$</STRONG>&nbsp;</TD>
    <TD  width="2%"
    align=left valign="bottom" style="BORDER-BOTTOM: #000000 1px solid">&nbsp;</TD>
    <TD  width="1%"
    align=left valign="bottom" style="BORDER-BOTTOM: #000000 1px solid"><B></B></TD>
    <TD width="12%"
      align=right valign="bottom" style="BORDER-BOTTOM: #000000 1px solid"><STRONG>$</STRONG>&nbsp;</TD>
  <TD  width="2%"
    align=left valign="bottom" style="BORDER-BOTTOM: #000000 1px solid">&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD width="10%" >&nbsp;</TD>
    <TD align=left valign="bottom" bgColor=#e6efff>Cash and cash equivalents </TD>
    <TD  width="1%" align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD width="12%" align=right valign="bottom" bgColor=#e6efff><B>232,311</B> </TD>
    <TD  width="2%" align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD  width="1%" align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD width="12%" align=right valign="bottom" bgColor=#e6efff>26,659 </TD>
  <TD  width="2%" align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD width="10%" >&nbsp;</TD>
    <TD align=left valign="bottom">Accounts receivable </TD>
    <TD  width="1%" align=left valign="bottom">&nbsp;</TD>
    <TD width="12%" align=right valign="bottom"><B>30,323</B> </TD>
    <TD  width="2%" align=left valign="bottom">&nbsp;</TD>
    <TD  width="1%" align=left valign="bottom">&nbsp;</TD>
    <TD width="12%" align=right valign="bottom">6,238 </TD>
  <TD  width="2%" align=left valign="bottom">&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD width="10%" >&nbsp;</TD>
    <TD align=left valign="bottom" bgColor=#e6efff>Convertible debenture receivable </TD>
    <TD  width="1%" align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD width="12%" align=right valign="bottom" bgColor=#e6efff><B>6,794</B> </TD>
    <TD  width="2%" align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD  width="1%" align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD width="12%" align=right valign="bottom" bgColor=#e6efff>5,606 </TD>
  <TD  width="2%" align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD width="10%" >&nbsp;</TD>
    <TD align=left valign="bottom">Value added tax recoverable </TD>
    <TD  width="1%"
    align=left valign="bottom" style="BORDER-BOTTOM: #000000 1px solid">&nbsp;</TD>
    <TD width="12%"
      align=right valign="bottom" style="BORDER-BOTTOM: #000000 1px solid"><B>70,782</B> </TD>
    <TD  width="2%"
    align=left valign="bottom" style="BORDER-BOTTOM: #000000 1px solid">&nbsp;</TD>
    <TD  width="1%"
    align=left valign="bottom" style="BORDER-BOTTOM: #000000 1px solid">&nbsp;</TD>
    <TD width="12%"
      align=right valign="bottom" style="BORDER-BOTTOM: #000000 1px solid">54,095 </TD>
  <TD  width="2%"
    align=left valign="bottom" style="BORDER-BOTTOM: #000000 1px solid">&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD width="10%" >&nbsp;</TD>
    <TD align=left valign="bottom" bgColor=#e6efff>&nbsp; </TD>
    <TD
    width="1%" align=left valign="bottom" bgColor=#e6efff style="BORDER-BOTTOM: #000000 2px solid">&nbsp;</TD>
    <TD width="12%"
    align=right valign="bottom" bgColor=#e6efff style="BORDER-BOTTOM: #000000 2px solid"><B>340,210</B> </TD>
    <TD
    width="2%" align=left valign="bottom" bgColor=#e6efff style="BORDER-BOTTOM: #000000 2px solid">&nbsp;</TD>
    <TD
    width="1%" align=left valign="bottom" bgColor=#e6efff style="BORDER-BOTTOM: #000000 2px solid">&nbsp;</TD>
    <TD width="12%"
    align=right valign="bottom" bgColor=#e6efff style="BORDER-BOTTOM: #000000 2px solid">92,598 </TD>
  <TD
    width="2%" align=left valign="bottom" bgColor=#e6efff style="BORDER-BOTTOM: #000000 2px solid">&nbsp;</TD>
  </TR></TABLE>
<P style="MARGIN-LEFT: 10%" align=justify><B><I>Liquidity Risk</I></B></P>
<P style="MARGIN-LEFT: 10%" align=justify>Liquidity risk is the risk that we
will encounter difficulty in meeting obligations associated with financial
liabilities. We have in place a planning and budgeting process to assist in
determining the funds required to support our normal operating requirements on
an ongoing basis as well as our expansion plans. We manage liquidity risk by
ensuring sufficient resources are available to meet short-term business
requirements, taking into account our anticipated cash flows from operations and
our cash and cash equivalent balances.</P>
<P style="MARGIN-LEFT: 10%" align=justify>We ensure that there is sufficient
capital to meet our long-term obligations by continuously monitoring and
reviewing actual and forecasted cash flows, and match the maturity profile of
financial assets to development, capital and operating needs. If necessary, we
may raise funds through the issuance of debt, equity, or monetization of
non-core assets. We believe our sources will be sufficient to cover our
short-term and long-term cash requirements.</P>
<P style="MARGIN-LEFT: 10%" align=justify>We enter into contracts that give rise
to commitments for future minimum payments in the normal course of business. The
following table summarizes the remaining undiscounted contractual maturities of
our financial liabilities and operating and capital commitments at December 31,
2010:</P>
<TABLE
style="BORDER-COLOR: black; BORDER-COLLAPSE: collapse; FONT-SIZE: 8pt; "
border=0 cellSpacing=0 cellPadding=0 width="100%">

  <TR vAlign=top>
    <TD width="10%"  >&nbsp;</TD>
    <TD align=left valign="bottom">&nbsp; </TD>
    <TD  width="1%" align=left valign="bottom">&nbsp;</TD>
    <TD width="8%" align=right valign="bottom"><B>Less than</B> </TD>
    <TD  width="2%" align=left valign="bottom">&nbsp;</TD>
    <TD  width="1%" align=left valign="bottom">&nbsp;</TD>
    <TD width="8%" align=right valign="bottom"><B>1 to 3</B> </TD>
    <TD  width="2%" align=left valign="bottom">&nbsp;</TD>
    <TD  width="1%" align=left valign="bottom">&nbsp;</TD>
    <TD width="8%" align=right valign="bottom"><B>4 to 5</B> </TD>
    <TD  width="2%" align=left valign="bottom">&nbsp;</TD>
    <TD  width="1%" align=left valign="bottom">&nbsp;</TD>
    <TD width="8%" align=right valign="bottom"><B>Over 5</B> </TD>
    <TD  width="2%" align=left valign="bottom">&nbsp;</TD>
    <TD  width="1%" align=left valign="bottom">&nbsp;</TD>
    <TD width="8%" align=left valign="bottom">&nbsp; </TD>
  <TD  width="2%" align=left valign="bottom">&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD width="10%" >&nbsp;</TD>
    <TD align=left valign="bottom">&nbsp; </TD>
    <TD  width="1%" align=left valign="bottom">&nbsp;</TD>
    <TD width="8%" align=right valign="bottom"><B>1 year</B> </TD>
    <TD  width="2%" align=left valign="bottom">&nbsp;</TD>
    <TD  width="1%" align=left valign="bottom">&nbsp;</TD>
    <TD width="8%" align=right valign="bottom"><B>years</B> </TD>
    <TD  width="2%" align=left valign="bottom">&nbsp;</TD>
    <TD  width="1%" align=left valign="bottom">&nbsp;</TD>
    <TD width="8%" align=right valign="bottom"><B>years</B> </TD>
    <TD  width="2%" align=left valign="bottom">&nbsp;</TD>
    <TD  width="1%" align=left valign="bottom">&nbsp;</TD>
    <TD width="8%" align=right valign="bottom"><B>years</B> </TD>
    <TD  width="2%" align=left valign="bottom">&nbsp;</TD>
    <TD  width="1%" align=left valign="bottom">&nbsp;</TD>
    <TD width="8%" align=right valign="bottom"><B>Total</B> </TD>
  <TD  width="2%" align=left valign="bottom">&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD width="10%" >&nbsp;</TD>
    <TD align=left valign="bottom">&nbsp; </TD>
    <TD  width="1%"
    align=left valign="bottom" style="BORDER-BOTTOM: #000000 1px solid"></TD>
    <TD width="8%"
    align=right valign="bottom" style="BORDER-BOTTOM: #000000 1px solid">$&nbsp;</TD>
    <TD  width="2%"
    align=left valign="bottom" style="BORDER-BOTTOM: #000000 1px solid">&nbsp;</TD>
    <TD  width="1%"
    align=left valign="bottom" style="BORDER-BOTTOM: #000000 1px solid"></TD>
    <TD width="8%"
    align=right valign="bottom" style="BORDER-BOTTOM: #000000 1px solid">$&nbsp;</TD>
    <TD  width="2%"
    align=left valign="bottom" style="BORDER-BOTTOM: #000000 1px solid">&nbsp;</TD>
    <TD  width="1%"
    align=left valign="bottom" style="BORDER-BOTTOM: #000000 1px solid"></TD>
    <TD width="8%"
    align=right valign="bottom" style="BORDER-BOTTOM: #000000 1px solid">$&nbsp;</TD>
    <TD  width="2%"
    align=left valign="bottom" style="BORDER-BOTTOM: #000000 1px solid">&nbsp;</TD>
    <TD  width="1%"
    align=left valign="bottom" style="BORDER-BOTTOM: #000000 1px solid"></TD>
    <TD width="8%"
    align=right valign="bottom" style="BORDER-BOTTOM: #000000 1px solid">$&nbsp;</TD>
    <TD  width="2%"
    align=left valign="bottom" style="BORDER-BOTTOM: #000000 1px solid">&nbsp;</TD>
    <TD  width="1%"
    align=left valign="bottom" style="BORDER-BOTTOM: #000000 1px solid"></TD>
    <TD width="8%"
    align=right valign="bottom" style="BORDER-BOTTOM: #000000 1px solid">$&nbsp;</TD>
  <TD  width="2%"
    align=left valign="bottom" style="BORDER-BOTTOM: #000000 1px solid">&nbsp;</TD>
  </TR>
  <TR>
    <TD width="10%" >&nbsp;</TD>
    <TD valign="bottom">&nbsp; </TD>
    <TD  width="1%" valign="bottom">&nbsp;</TD>
    <TD width="8%" valign="bottom">&nbsp; </TD>
    <TD  width="2%" valign="bottom">&nbsp;</TD>
    <TD  width="1%" valign="bottom">&nbsp;</TD>
    <TD width="8%" valign="bottom">&nbsp; </TD>
    <TD  width="2%" valign="bottom">&nbsp;</TD>
    <TD  width="1%" valign="bottom">&nbsp;</TD>
    <TD width="8%" valign="bottom">&nbsp; </TD>
    <TD  width="2%" valign="bottom">&nbsp;</TD>
    <TD  width="1%" valign="bottom">&nbsp;</TD>
    <TD width="8%" valign="bottom">&nbsp; </TD>
    <TD  width="2%" valign="bottom">&nbsp;</TD>
    <TD  width="1%" valign="bottom">&nbsp;</TD>
    <TD width="8%" valign="bottom">&nbsp; </TD>
  <TD  width="2%" valign="bottom">&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD width="10%" >&nbsp;</TD>
    <TD align=left valign="bottom" bgColor=#e6efff>Accounts payable and accrued liabilities</TD>
    <TD  width="1%" align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD width="8%" align=right valign="bottom" bgColor=#e6efff>32,132 </TD>
    <TD  width="2%" align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD  width="1%" align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD width="8%" align=right valign="bottom" bgColor=#e6efff>- </TD>
    <TD  width="2%" align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD  width="1%" align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD width="8%" align=right valign="bottom" bgColor=#e6efff>- </TD>
    <TD  width="2%" align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD  width="1%" align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD width="8%" align=right valign="bottom" bgColor=#e6efff>- </TD>
    <TD  width="2%" align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD  width="1%" align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD width="8%" align=right valign="bottom" bgColor=#e6efff><B>32,132</B> </TD>
  <TD  width="2%" align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD width="10%" >&nbsp;</TD>
    <TD align=left valign="bottom">Asset retirement obligations </TD>
    <TD  width="1%" align=left valign="bottom">&nbsp;</TD>
    <TD width="8%" align=right valign="bottom">952 </TD>
    <TD  width="2%" align=left valign="bottom">&nbsp;</TD>
    <TD  width="1%" align=left valign="bottom">&nbsp;</TD>
    <TD width="8%" align=right valign="bottom">2,595 </TD>
    <TD  width="2%" align=left valign="bottom">&nbsp;</TD>
    <TD  width="1%" align=left valign="bottom">&nbsp;</TD>
    <TD width="8%" align=right valign="bottom">1,674 </TD>
    <TD  width="2%" align=left valign="bottom">&nbsp;</TD>
    <TD  width="1%" align=left valign="bottom">&nbsp;</TD>
    <TD width="8%" align=right valign="bottom">21,421 </TD>
    <TD  width="2%" align=left valign="bottom">&nbsp;</TD>
    <TD  width="1%" align=left valign="bottom">&nbsp;</TD>
    <TD width="8%" align=right valign="bottom"><B>26,642</B> </TD>
  <TD  width="2%" align=left valign="bottom">&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD width="10%" >&nbsp;</TD>
    <TD align=left valign="bottom" bgColor=#e6efff>Long-term convertible note repayments
      <SUP>i)</SUP> </TD>
    <TD  width="1%" align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD width="8%" align=right valign="bottom" bgColor=#e6efff>- </TD>
    <TD  width="2%" align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD  width="1%" align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD width="8%" align=right valign="bottom" bgColor=#e6efff>138,000 </TD>
    <TD  width="2%" align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD  width="1%" align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD width="8%" align=right valign="bottom" bgColor=#e6efff>- </TD>
    <TD  width="2%" align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD  width="1%" align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD width="8%" align=right valign="bottom" bgColor=#e6efff>- </TD>
    <TD  width="2%" align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD  width="1%" align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD width="8%" align=right valign="bottom" bgColor=#e6efff><B>138,000</B> </TD>
  <TD  width="2%" align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD width="10%" >&nbsp;</TD>
    <TD align=left valign="bottom">Interest on convertible notes <SUP>i)</SUP> </TD>
    <TD  width="1%" align=left valign="bottom">&nbsp;</TD>
    <TD width="8%" align=right valign="bottom">6,210 </TD>
    <TD  width="2%" align=left valign="bottom">&nbsp;</TD>
    <TD  width="1%" align=left valign="bottom">&nbsp;</TD>
    <TD width="8%" align=right valign="bottom">15,525 </TD>
    <TD  width="2%" align=left valign="bottom">&nbsp;</TD>
    <TD  width="1%" align=left valign="bottom">&nbsp;</TD>
    <TD width="8%" align=right valign="bottom">- </TD>
    <TD  width="2%" align=left valign="bottom">&nbsp;</TD>
    <TD  width="1%" align=left valign="bottom">&nbsp;</TD>
    <TD width="8%" align=right valign="bottom">- </TD>
    <TD  width="2%" align=left valign="bottom">&nbsp;</TD>
    <TD  width="1%" align=left valign="bottom">&nbsp;</TD>
    <TD width="8%" align=right valign="bottom"><B>21,735</B> </TD>
  <TD  width="2%" align=left valign="bottom">&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD width="10%" >&nbsp;</TD>
    <TD align=left valign="bottom" bgColor=#e6efff>Capital expenditure commitments
      <SUP>ii)</SUP> </TD>
    <TD  width="1%" align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD width="8%" align=right valign="bottom" bgColor=#e6efff>874 </TD>
    <TD  width="2%" align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD  width="1%" align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD width="8%" align=right valign="bottom" bgColor=#e6efff>210 </TD>
    <TD  width="2%" align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD  width="1%" align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD width="8%" align=right valign="bottom" bgColor=#e6efff>- </TD>
    <TD  width="2%" align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD  width="1%" align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD width="8%" align=right valign="bottom" bgColor=#e6efff>- </TD>
    <TD  width="2%" align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD  width="1%" align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD width="8%" align=right valign="bottom" bgColor=#e6efff><B>1,084</B> </TD>
  <TD  width="2%" align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD width="10%" >&nbsp;</TD>
    <TD align=left valign="bottom">Operating expenditure commitments </TD>
    <TD  width="1%" align=left valign="bottom">&nbsp;</TD>
    <TD width="8%" align=right valign="bottom">8,332 </TD>
    <TD  width="2%" align=left valign="bottom">&nbsp;</TD>
    <TD  width="1%" align=left valign="bottom">&nbsp;</TD>
    <TD width="8%" align=right valign="bottom">8,854 </TD>
    <TD  width="2%" align=left valign="bottom">&nbsp;</TD>
    <TD  width="1%" align=left valign="bottom">&nbsp;</TD>
    <TD width="8%" align=right valign="bottom">- </TD>
    <TD  width="2%" align=left valign="bottom">&nbsp;</TD>
    <TD  width="1%" align=left valign="bottom">&nbsp;</TD>
    <TD width="8%" align=right valign="bottom">- </TD>
    <TD  width="2%" align=left valign="bottom">&nbsp;</TD>
    <TD  width="1%" align=left valign="bottom">&nbsp;</TD>
    <TD width="8%" align=right valign="bottom"><B>17,186</B> </TD>
  <TD  width="2%" align=left valign="bottom">&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD width="10%" >&nbsp;</TD>
    <TD align=left valign="bottom" bgColor=#e6efff>Minimum rental and lease payments </TD>
    <TD
    width="1%" align=left valign="bottom" bgColor=#e6efff style="BORDER-BOTTOM: #000000 1px solid">&nbsp;</TD>
    <TD width="8%"
    align=right valign="bottom" bgColor=#e6efff style="BORDER-BOTTOM: #000000 1px solid">520 </TD>
    <TD
    width="2%" align=left valign="bottom" bgColor=#e6efff style="BORDER-BOTTOM: #000000 1px solid">&nbsp;</TD>
    <TD
    width="1%" align=left valign="bottom" bgColor=#e6efff style="BORDER-BOTTOM: #000000 1px solid">&nbsp;</TD>
    <TD width="8%"
    align=right valign="bottom" bgColor=#e6efff style="BORDER-BOTTOM: #000000 1px solid">678 </TD>
    <TD
    width="2%" align=left valign="bottom" bgColor=#e6efff style="BORDER-BOTTOM: #000000 1px solid">&nbsp;</TD>
    <TD
    width="1%" align=left valign="bottom" bgColor=#e6efff style="BORDER-BOTTOM: #000000 1px solid">&nbsp;</TD>
    <TD width="8%"
    align=right valign="bottom" bgColor=#e6efff style="BORDER-BOTTOM: #000000 1px solid">- </TD>
    <TD
    width="2%" align=left valign="bottom" bgColor=#e6efff style="BORDER-BOTTOM: #000000 1px solid">&nbsp;</TD>
    <TD
    width="1%" align=left valign="bottom" bgColor=#e6efff style="BORDER-BOTTOM: #000000 1px solid">&nbsp;</TD>
    <TD width="8%"
    align=right valign="bottom" bgColor=#e6efff style="BORDER-BOTTOM: #000000 1px solid">- </TD>
    <TD
    width="2%" align=left valign="bottom" bgColor=#e6efff style="BORDER-BOTTOM: #000000 1px solid">&nbsp;</TD>
    <TD
    width="1%" align=left valign="bottom" bgColor=#e6efff style="BORDER-BOTTOM: #000000 1px solid">&nbsp;</TD>
    <TD width="8%"
    align=right valign="bottom" bgColor=#e6efff style="BORDER-BOTTOM: #000000 1px solid"><B>1,198</B> </TD>
  <TD
    width="2%" align=left valign="bottom" bgColor=#e6efff style="BORDER-BOTTOM: #000000 1px solid">&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD width="10%" >&nbsp;</TD>
    <TD align=left valign="bottom">&nbsp; </TD>
    <TD  width="1%"
    align=left valign="bottom" style="BORDER-BOTTOM: #000000 2px solid">&nbsp;</TD>
    <TD width="8%" align=right valign="bottom" style="BORDER-BOTTOM: #000000 2px solid">49,020    </TD>
    <TD  width="2%"
    align=left valign="bottom" style="BORDER-BOTTOM: #000000 2px solid">&nbsp;</TD>
    <TD  width="1%"
    align=left valign="bottom" style="BORDER-BOTTOM: #000000 2px solid">&nbsp;</TD>
    <TD width="8%"
      align=right valign="bottom" style="BORDER-BOTTOM: #000000 2px solid">165,862 </TD>
    <TD  width="2%"
    align=left valign="bottom" style="BORDER-BOTTOM: #000000 2px solid">&nbsp;</TD>
    <TD  width="1%"
    align=left valign="bottom" style="BORDER-BOTTOM: #000000 2px solid">&nbsp;</TD>
    <TD width="8%" align=right valign="bottom" style="BORDER-BOTTOM: #000000 2px solid">1,674    </TD>
    <TD  width="2%"
    align=left valign="bottom" style="BORDER-BOTTOM: #000000 2px solid">&nbsp;</TD>
    <TD  width="1%"
    align=left valign="bottom" style="BORDER-BOTTOM: #000000 2px solid">&nbsp;</TD>
    <TD width="8%" align=right valign="bottom" style="BORDER-BOTTOM: #000000 2px solid">21,421    </TD>
    <TD  width="2%"
    align=left valign="bottom" style="BORDER-BOTTOM: #000000 2px solid">&nbsp;</TD>
    <TD  width="1%"
    align=left valign="bottom" style="BORDER-BOTTOM: #000000 2px solid">&nbsp;</TD>
    <TD width="8%"
      align=right valign="bottom" style="BORDER-BOTTOM: #000000 2px solid"><B>237,977</B> </TD>
  <TD  width="2%"
    align=left valign="bottom" style="BORDER-BOTTOM: #000000 2px solid">&nbsp;</TD>
  </TR></TABLE><BR>
<TABLE
style="BORDER-COLOR: black; BORDER-COLLAPSE: collapse; FONT-SIZE: 10pt; "
border=0 cellSpacing=0 cellPadding=0 width="100%" BCLLIST>

  <TR>
    <TD width="10%"  >&nbsp;</TD>
    <TD vAlign=top width="5%">i) </TD>
    <TD>
      <P align=justify>Convertible notes are due in 2028 but are 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.</P></TD></TR>
  <TR>
    <TD width="10%" >&nbsp;</TD>
    <TD vAlign=top width="5%">ii) </TD>
    <TD>
      <P align=justify>Subsequent to year end we have entered into a capital
      expenditure commitment for $11.4 million which is expected to be paid
      during 2011.</P></TD></TR></TABLE>
<P align=right>17</P>
<HR style="PAGE-BREAK-AFTER: always" align=center color=black SIZE=5
width="100%" noShade>
<!--$$/page=--><A name=page_25></A><BR>
<TABLE
style="BORDER-COLOR: black; BORDER-COLLAPSE: collapse; FONT-SIZE: 10pt; "
border=0 cellSpacing=0 cellPadding=0 width="100%">

  <TR vAlign=top>
    <TD align=left><B>Silver Standard Resources Inc.</B> </TD></TR>
  <TR vAlign=top>
    <TD align=left>Notes to Consolidated Financial Statements </TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>December 31, 2010,
      2009 and 2008 </TD></TR>
  <TR vAlign=top>
    <TD align=left>(tabular amounts expressed in thousands of United States
      dollars unless otherwise stated) </TD></TR></TABLE><BR>
<TABLE
style="BORDER-COLOR: black; BORDER-COLLAPSE: collapse; FONT-SIZE: 10pt; "
border=0 cellSpacing=0 cellPadding=0 width="100%">

  <TR vAlign=top>
    <TD align=left ><B>6</B> </TD>
    <TD width="95%" align=left><B>FINANCIAL INSTRUMENTS (Cont&#146;d)</B>
  </TD></TR></TABLE>
<P style="MARGIN-LEFT: 10%" align=justify><B><I>Market Risk</I></B></P>
<TABLE
style="BORDER-COLOR: black; BORDER-COLLAPSE: collapse; FONT-SIZE: 10pt; "
border=0 cellSpacing=0 cellPadding=0 width="100%">

  <TR vAlign=top>
    <TD width="10%"  >&nbsp;</TD>
    <TD align=left ><B><I>i)</I></B> </TD>
    <TD width="85%" align=left><B><I>Foreign Exchange Risk</I></B>
  </TD></TR></TABLE>
<P style="MARGIN-LEFT: 10%" align=justify>We operate projects in seven different
countries and therefore, foreign exchange risk exposures arise from transactions
denominated in currencies other than our functional currency. Our foreign
exchange risk arises primarily with respect to the Canadian dollar and Argentine
peso.</P>
<P style="MARGIN-LEFT: 10%" align=justify>As at December 31, our exposure to
foreign exchange risk in currencies other than the U.S. dollar is as
follows:</P>
<TABLE
style="BORDER-COLOR: black; BORDER-COLLAPSE: collapse; FONT-SIZE: 10pt; "
border=0 cellSpacing=0 cellPadding=0 width="100%">

  <TR vAlign=top>
    <TD width="10%"  >&nbsp;</TD>
    <TD align=left valign="bottom">&nbsp; </TD>
    <TD  width="1%"
    align=left valign="bottom" style="BORDER-BOTTOM: #000000 1px solid">&nbsp;</TD>
    <TD width="49%" colSpan=10
    align=right valign="bottom" nowrap style="BORDER-BOTTOM: #000000 1px solid"><B>December 31, 2010</B> </TD>
  <TD  width="2%"
    align=left valign="bottom" style="BORDER-BOTTOM: #000000 1px solid">&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD width="10%" >&nbsp;</TD>
    <TD align=left valign="bottom">&nbsp; </TD>
    <TD  width="1%" align=left valign="bottom">&nbsp;</TD>
    <TD width="10%" align=right valign="bottom"><B>Cash and cash</B> </TD>
    <TD  width="2%" align=left valign="bottom">&nbsp;</TD>
    <TD  width="1%" align=left valign="bottom">&nbsp;</TD>
    <TD width="10%" align=left valign="bottom">&nbsp; </TD>
    <TD  width="2%" align=left valign="bottom">&nbsp;</TD>
    <TD  width="1%" align=left valign="bottom">&nbsp;</TD>
    <TD width="10%" align=left valign="bottom">&nbsp; </TD>
    <TD  width="2%" align=left valign="bottom">&nbsp;</TD>
    <TD  width="1%" align=left valign="bottom">&nbsp;</TD>
    <TD width="10%" align=right valign="bottom"><B>Accounts</B> </TD>
  <TD  width="2%" align=left valign="bottom">&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD width="10%" >&nbsp;</TD>
    <TD align=left valign="bottom">&nbsp; </TD>
    <TD  width="1%" align=left valign="bottom">&nbsp;</TD>
    <TD width="10%" align=right valign="bottom" nowrap><B>equivalents and</B> </TD>
    <TD  width="2%" align=left valign="bottom">&nbsp;</TD>
    <TD  width="1%" align=left valign="bottom">&nbsp;</TD>
    <TD width="10%" align=right valign="bottom" nowrap><B>Convertible</B> </TD>
    <TD  width="2%" align=left valign="bottom">&nbsp;</TD>
    <TD  width="1%" align=left valign="bottom">&nbsp;</TD>
    <TD width="10%" align=right valign="bottom"><B>Value added</B> </TD>
    <TD  width="2%" align=left valign="bottom">&nbsp;</TD>
    <TD  width="1%" align=left valign="bottom">&nbsp;</TD>
    <TD width="10%" align=right valign="bottom"><B>payable and</B> </TD>
  <TD  width="2%" align=left valign="bottom">&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD width="10%" >&nbsp;</TD>
    <TD align=left valign="bottom">&nbsp; </TD>
    <TD  width="1%" align=left valign="bottom">&nbsp;</TD>
    <TD width="10%" align=right valign="bottom"><B>restricted cash</B> </TD>
    <TD  width="2%" align=left valign="bottom">&nbsp;</TD>
    <TD  width="1%" align=left valign="bottom">&nbsp;</TD>
    <TD width="10%" align=right valign="bottom"><B>debenture</B> </TD>
    <TD  width="2%" align=left valign="bottom">&nbsp;</TD>
    <TD  width="1%" align=left valign="bottom">&nbsp;</TD>
    <TD width="10%" align=right valign="bottom" nowrap><B>tax recoverable</B> </TD>
    <TD  width="2%" align=left valign="bottom">&nbsp;</TD>
    <TD  width="1%" align=left valign="bottom">&nbsp;</TD>
    <TD width="10%" align=right valign="bottom" nowrap><B>accrued liabilities</B> </TD>
  <TD  width="2%" align=left valign="bottom">&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD width="10%" >&nbsp;</TD>
    <TD align=left valign="bottom">&nbsp; </TD>
    <TD  width="1%"
    align=left valign="bottom" style="BORDER-BOTTOM: #000000 1px solid"><B></B></TD>
    <TD width="10%"
      align=right valign="bottom" style="BORDER-BOTTOM: #000000 1px solid"><STRONG>$</STRONG>&nbsp;</TD>
    <TD  width="2%"
    align=left valign="bottom" style="BORDER-BOTTOM: #000000 1px solid">&nbsp;</TD>
    <TD  width="1%"
    align=left valign="bottom" style="BORDER-BOTTOM: #000000 1px solid"><B></B></TD>
    <TD width="10%"
      align=right valign="bottom" style="BORDER-BOTTOM: #000000 1px solid"><STRONG>$</STRONG>&nbsp;</TD>
    <TD  width="2%"
    align=left valign="bottom" style="BORDER-BOTTOM: #000000 1px solid">&nbsp;</TD>
    <TD  width="1%"
    align=left valign="bottom" style="BORDER-BOTTOM: #000000 1px solid"><B></B></TD>
    <TD width="10%"
      align=right valign="bottom" style="BORDER-BOTTOM: #000000 1px solid"><STRONG>$</STRONG>&nbsp;</TD>
    <TD  width="2%"
    align=left valign="bottom" style="BORDER-BOTTOM: #000000 1px solid">&nbsp;</TD>
    <TD  width="1%"
    align=left valign="bottom" style="BORDER-BOTTOM: #000000 1px solid"><B></B></TD>
    <TD width="10%"
      align=right valign="bottom" style="BORDER-BOTTOM: #000000 1px solid"><STRONG>$</STRONG>&nbsp;</TD>
  <TD  width="2%"
    align=left valign="bottom" style="BORDER-BOTTOM: #000000 1px solid">&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD width="10%" >&nbsp;</TD>
    <TD align=left valign="bottom" bgColor=#e6efff>Argentinean peso </TD>
    <TD  width="1%" align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD width="10%" align=right valign="bottom" bgColor=#e6efff>9,588 </TD>
    <TD  width="2%" align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD  width="1%" align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD width="10%" align=right valign="bottom" bgColor=#e6efff>- </TD>
    <TD  width="2%" align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD  width="1%" align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD width="10%" align=right valign="bottom" bgColor=#e6efff>70,775 </TD>
    <TD  width="2%" align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD  width="1%" align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD width="10%" align=right valign="bottom" bgColor=#e6efff>(13,044</TD>
  <TD  width="2%" align=left valign="bottom" bgColor=#e6efff>) </TD>
  </TR>
  <TR vAlign=top>
    <TD width="10%" >&nbsp;</TD>
    <TD align=left valign="bottom">Australian dollar </TD>
    <TD  width="1%" align=left valign="bottom">&nbsp;</TD>
    <TD width="10%" align=right valign="bottom">151 </TD>
    <TD  width="2%" align=left valign="bottom">&nbsp;</TD>
    <TD  width="1%" align=left valign="bottom">&nbsp;</TD>
    <TD width="10%" align=right valign="bottom">- </TD>
    <TD  width="2%" align=left valign="bottom">&nbsp;</TD>
    <TD  width="1%" align=left valign="bottom">&nbsp;</TD>
    <TD width="10%" align=right valign="bottom">- </TD>
    <TD  width="2%" align=left valign="bottom">&nbsp;</TD>
    <TD  width="1%" align=left valign="bottom">&nbsp;</TD>
    <TD width="10%" align=right valign="bottom">(12</TD>
  <TD  width="2%" align=left valign="bottom">) </TD>
  </TR>
  <TR vAlign=top>
    <TD width="10%" >&nbsp;</TD>
    <TD align=left valign="bottom" bgColor=#e6efff>Canadian dollar </TD>
    <TD  width="1%" align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD width="10%" align=right valign="bottom" bgColor=#e6efff>164,557 </TD>
    <TD  width="2%" align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD  width="1%" align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD width="10%" align=right valign="bottom" bgColor=#e6efff>7,180 </TD>
    <TD  width="2%" align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD  width="1%" align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD width="10%" align=right valign="bottom" bgColor=#e6efff>- </TD>
    <TD  width="2%" align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD  width="1%" align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD width="10%" align=right valign="bottom" bgColor=#e6efff>(5,984</TD>
  <TD  width="2%" align=left valign="bottom" bgColor=#e6efff>) </TD>
  </TR>
  <TR vAlign=top>
    <TD width="10%" >&nbsp;</TD>
    <TD align=left valign="bottom">Mexican peso </TD>
    <TD  width="1%" align=left valign="bottom">&nbsp;</TD>
    <TD width="10%" align=right valign="bottom">487 </TD>
    <TD  width="2%" align=left valign="bottom">&nbsp;</TD>
    <TD  width="1%" align=left valign="bottom">&nbsp;</TD>
    <TD width="10%" align=right valign="bottom">- </TD>
    <TD  width="2%" align=left valign="bottom">&nbsp;</TD>
    <TD  width="1%" align=left valign="bottom">&nbsp;</TD>
    <TD width="10%" align=right valign="bottom">7 </TD>
    <TD  width="2%" align=left valign="bottom">&nbsp;</TD>
    <TD  width="1%" align=left valign="bottom">&nbsp;</TD>
    <TD width="10%" align=right valign="bottom">(219</TD>
  <TD  width="2%" align=left valign="bottom">) </TD>
  </TR>
  <TR vAlign=top>
    <TD width="10%" >&nbsp;</TD>
    <TD align=left valign="bottom" bgColor=#e6efff>Peruvian soles </TD>
    <TD
    width="1%" align=left valign="bottom" bgColor=#e6efff style="BORDER-BOTTOM: #000000 1px solid">&nbsp;</TD>
    <TD width="10%"
    align=right valign="bottom" bgColor=#e6efff style="BORDER-BOTTOM: #000000 1px solid">278 </TD>
    <TD
    width="2%" align=left valign="bottom" bgColor=#e6efff style="BORDER-BOTTOM: #000000 1px solid">&nbsp;</TD>
    <TD
    width="1%" align=left valign="bottom" bgColor=#e6efff style="BORDER-BOTTOM: #000000 1px solid">&nbsp;</TD>
    <TD width="10%"
    align=right valign="bottom" bgColor=#e6efff style="BORDER-BOTTOM: #000000 1px solid">- </TD>
    <TD
    width="2%" align=left valign="bottom" bgColor=#e6efff style="BORDER-BOTTOM: #000000 1px solid">&nbsp;</TD>
    <TD
    width="1%" align=left valign="bottom" bgColor=#e6efff style="BORDER-BOTTOM: #000000 1px solid">&nbsp;</TD>
    <TD width="10%"
    align=right valign="bottom" bgColor=#e6efff style="BORDER-BOTTOM: #000000 1px solid">- </TD>
    <TD
    width="2%" align=left valign="bottom" bgColor=#e6efff style="BORDER-BOTTOM: #000000 1px solid">&nbsp;</TD>
    <TD
    width="1%" align=left valign="bottom" bgColor=#e6efff style="BORDER-BOTTOM: #000000 1px solid">&nbsp;</TD>
    <TD width="10%"
    align=right valign="bottom" bgColor=#e6efff style="BORDER-BOTTOM: #000000 1px solid">(638</TD>
  <TD
    width="2%" align=left valign="bottom" bgColor=#e6efff style="BORDER-BOTTOM: #000000 1px solid">) </TD>
  </TR>
  <TR vAlign=top>
    <TD width="10%" >&nbsp;</TD>
    <TD align=left valign="bottom">&nbsp; </TD>
    <TD  width="1%"
    align=left valign="bottom" style="BORDER-BOTTOM: #000000 2px solid">&nbsp;</TD>
    <TD width="10%"
      align=right valign="bottom" style="BORDER-BOTTOM: #000000 2px solid"><B>175,061</B> </TD>
    <TD  width="2%"
    align=left valign="bottom" style="BORDER-BOTTOM: #000000 2px solid">&nbsp;</TD>
    <TD  width="1%"
    align=left valign="bottom" style="BORDER-BOTTOM: #000000 2px solid">&nbsp;</TD>
    <TD width="10%"
      align=right valign="bottom" style="BORDER-BOTTOM: #000000 2px solid"><B>7,180</B> </TD>
    <TD  width="2%"
    align=left valign="bottom" style="BORDER-BOTTOM: #000000 2px solid">&nbsp;</TD>
    <TD  width="1%"
    align=left valign="bottom" style="BORDER-BOTTOM: #000000 2px solid">&nbsp;</TD>
    <TD width="10%"
      align=right valign="bottom" style="BORDER-BOTTOM: #000000 2px solid"><B>70,782</B> </TD>
    <TD  width="2%"
    align=left valign="bottom" style="BORDER-BOTTOM: #000000 2px solid">&nbsp;</TD>
    <TD  width="1%"
    align=left valign="bottom" style="BORDER-BOTTOM: #000000 2px solid">&nbsp;</TD>
    <TD width="10%"
      align=right valign="bottom" style="BORDER-BOTTOM: #000000 2px solid"><B>(19,897</B></TD>
  <TD  width="2%"
    align=left valign="bottom" style="BORDER-BOTTOM: #000000 2px solid"><B>)</B> </TD>
  </TR></TABLE>
<P style="MARGIN-LEFT: 10%" align=justify>During the year, we recognized a
foreign exchange gain of $1,239,000 (2009 &#150; $4,993,000; 2008 &#150;$200,000). Based
on the above net exposures at December 31, 2010, a 10% depreciation or
appreciation in all of the above currencies against the U.S. dollar would result
in a decrease or increase, respectively, in our net earnings by $23,313,000.</P>
<TABLE
style="BORDER-COLOR: black; BORDER-COLLAPSE: collapse; FONT-SIZE: 10pt; "
border=0 cellSpacing=0 cellPadding=0 width="100%">

  <TR vAlign=top>
    <TD width="10%"  >&nbsp;</TD>
    <TD align=left ><B><I>ii)</I></B> </TD>
    <TD width="85%" align=left><B><I>Interest Rate Risk</I></B>
</TD></TR></TABLE>
<P style="MARGIN-LEFT: 10%" align=justify>Our interest rate risk mainly arises
from the interest rate impact on our cash and cash equivalents. Cash and cash
equivalents earn interest based on market interest rates. Our convertible
debenture receivable and long-term notes have fixed interest rates and are not
exposed to interest rate risk.</P>
<P style="MARGIN-LEFT: 10%" align=justify>As at December 31, 2010, the weighted
average interest rate of our cash equivalents investment was 0.89% (2009 -
0.08%) . With other variables unchanged, a 1% increase (decrease) in the
interest rate would increase (decrease) our net earnings by $613,000 (2009 -
$643,000).</P>
<P align=right>18</P>
<HR style="PAGE-BREAK-AFTER: always" align=center color=black SIZE=5
width="100%" noShade>
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<TABLE
style="BORDER-COLOR: black; BORDER-COLLAPSE: collapse; FONT-SIZE: 10pt; "
border=0 cellSpacing=0 cellPadding=0 width="100%">

  <TR vAlign=top>
    <TD align=left><B>Silver Standard Resources Inc.</B> </TD></TR>
  <TR vAlign=top>
    <TD align=left>Notes to Consolidated Financial Statements </TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>December 31, 2010,
      2009 and 2008 </TD></TR>
  <TR vAlign=top>
    <TD align=left>(tabular amounts expressed in thousands of United States
      dollars unless otherwise stated) </TD></TR></TABLE><BR>
<TABLE
style="BORDER-COLOR: black; BORDER-COLLAPSE: collapse; FONT-SIZE: 10pt; "
border=0 cellSpacing=0 cellPadding=0 width="100%">

  <TR vAlign=top>
    <TD align=left><B>6</B> </TD>
    <TD width="95%" align=left><B>FINANCIAL INSTRUMENTS (Cont&#146;d)</B>
  </TD></TR></TABLE><BR>
<TABLE
style="BORDER-COLOR: black; BORDER-COLLAPSE: collapse; FONT-SIZE: 10pt; "
border=0 cellSpacing=0 cellPadding=0 width="100%">

  <TR vAlign=top>
    <TD width="8%" >&nbsp;</TD>
    <TD width="7%" align=left><B><I>iii)</I></B> </TD>
    <TD width="85%" align=left><B><I>Commodity Price Risk</I></B>
  </TD></TR></TABLE><BR>
<TABLE
style="BORDER-COLOR: black; BORDER-COLLAPSE: collapse; FONT-SIZE: 10pt; "
border=0 cellSpacing=0 cellPadding=0 width="100%">

  <TR vAlign=top>
    <TD align=left ></TD>
    <TD width="90%" colSpan=2 align=left>
      <P align=justify>Our profitability and long-term viability will depend, in
      large part, on the market price of silver, gold, tin, and zinc. The market
      prices for these metals are volatile and are affected by numerous factors
      beyond our control, including: </P></TD></TR>
  <TR vAlign=top>
    <TD align=left >&nbsp;</TD>
    <TD width="5%" align=left>
      <P align=justify>&nbsp; &nbsp; &nbsp; &nbsp; &nbsp;&#149; </P></TD>
    <TD width="85%" align=left>
      <P align=justify>global or regional consumption patterns; </P></TD></TR>
  <TR vAlign=top>
    <TD align=left >&nbsp;</TD>
    <TD width="5%" align=left>
      <P align=justify>&nbsp; &nbsp; &nbsp; &nbsp; &nbsp;&#149; </P></TD>
    <TD width="85%" align=left>
      <P align=justify>the supply of, and demand for, these metals; </P></TD></TR>
  <TR vAlign=top>
    <TD align=left >&nbsp;</TD>
    <TD width="5%" align=left>
      <P align=justify>&nbsp; &nbsp; &nbsp; &nbsp; &nbsp;&#149; </P></TD>
    <TD width="85%" align=left>
      <P align=justify>speculative activities; </P></TD></TR>
  <TR vAlign=top>
    <TD align=left >&nbsp;</TD>
    <TD width="5%" align=left>
      <P align=justify>&nbsp; &nbsp; &nbsp; &nbsp; &nbsp;&#149; </P></TD>
    <TD width="85%" align=left>
      <P align=justify>the availability and costs of metal substitutes;
  </P></TD></TR>
  <TR vAlign=top>
    <TD align=left >&nbsp;</TD>
    <TD width="5%" align=left>
      <P align=justify>&nbsp; &nbsp; &nbsp; &nbsp; &nbsp;&#149; </P></TD>
    <TD width="85%" align=left>
      <P align=justify>expectations for inflation; and </P></TD></TR>
  <TR vAlign=top>
    <TD align=left >&nbsp;</TD>
    <TD width="5%" align=left>
      <P align=justify>&nbsp; &nbsp; &nbsp; &nbsp; &nbsp;&#149; </P></TD>
    <TD width="85%" align=left>
      <P align=justify>political and economic conditions, including interest
      rates and currency values. </P></TD></TR>
  <TR>
    <TD >&nbsp;</TD>
    <TD width="5%">
      <P align=justify></P></TD>
    <TD width="85%">
      <P align=justify></P></TD></TR>
  <TR vAlign=top>
    <TD align=left ></TD>
    <TD width="90%" colSpan=2 align=left>
      <P align=justify>We cannot predict the effect of these factors on metal
      prices. A decrease in the market price of silver and other metals would
      affect the profitability of the Pirquitas Project and could affect our
      ability to finance the exploration and development of any of our other
      mineral properties. The market price of silver and other metals may be
      subject to significant fluctuations. In particular, an increase in
      worldwide supply, and consequent downward pressure on prices, may result
      over the longer term from increased silver production from mines developed
      or expanded as a result of current metal price levels.
</P></TD></TR></TABLE><BR>
<TABLE
style="BORDER-COLOR: black; BORDER-COLLAPSE: collapse; FONT-SIZE: 10pt; "
border=0 cellSpacing=0 cellPadding=0 width="100%">

  <TR vAlign=top>
    <TD align=left><B>7</B> </TD>
    <TD width="95%" align=left><B>OTHER INVESTMENTS</B> </TD></TR></TABLE>
<P style="MARGIN-LEFT: 5%" align=justify>As at December 31, 2008, we had a total
of $46,629,000 (C$57,102,000) invested in Canadian asset-backed commercial paper
(&#147;ABCP&#148;). At the dates at which we acquired the investments, the non-bank
sponsored ABCP was rated R-1 high by DBRS Limited, the highest credit rating for
commercial paper. In August 2007, the ABCP market experienced liquidity problems
and was subsequently frozen.</P>
<P style="MARGIN-LEFT: 5%" align=justify>At December 31, 2008 we estimated the
fair values of our ABCP investments using a valuation technique which
incorporated a probability weighted approach applied to discounted future cash
flows, which resulted in a write-down to fair value of $21,803,000. We recorded
an impairment of $17,903,000 in 2008.</P>
<P style="MARGIN-LEFT: 5%" align=justify>On January 28, 2009, we received
restructured notes with a face value of C$57,142,000. At the time of receipt of
the restructured notes, we also received a retroactive interest payment on our
original notes covering the period from August 2007 to August 2008 of
$1,630,000. During the year ended December 31, 2009, we received additional
retroactive interest payments totalling $624,000 covering the period from
September 2008 to January 2009 and $393,000 in interest payments on the
restructured notes.</P>
<P style="MARGIN-LEFT: 5%" align=justify>In November 2009, we sold our Class A-1
and A-2 ABCP notes for net proceeds of $20,107,000 (C$21,215,000) resulting in a
loss on sale of $3,103,000. The carrying value of our remaining ABCP investment
of $2,113,000 was written off during that year.</P>
<P align=right>19</P>
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width="100%" noShade>
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<TABLE
style="BORDER-COLOR: black; BORDER-COLLAPSE: collapse; FONT-SIZE: 10pt; "
border=0 cellSpacing=0 cellPadding=0 width="100%">

  <TR vAlign=top>
    <TD align=left><B>Silver Standard Resources Inc.</B> </TD></TR>
  <TR vAlign=top>
    <TD align=left>Notes to Consolidated Financial Statements </TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>December 31, 2010,
      2009 and 2008 </TD></TR>
  <TR vAlign=top>
    <TD align=left>(tabular amounts expressed in thousands of United States
      dollars unless otherwise stated) </TD></TR></TABLE><BR>
<TABLE
style="BORDER-COLOR: black; BORDER-COLLAPSE: collapse; FONT-SIZE: 10pt; "
border=0 cellSpacing=0 cellPadding=0 width="100%" BCLLIST>

  <TR>
    <TD vAlign=top width="5%"><B>8</B> </TD>
    <TD>
      <P align=justify><B>VALUE ADDED TAX RECOVERABLE</B></P></TD></TR>
  <TR>
    <TD width="5%">&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
  <TR>
    <TD width="5%"></TD>
    <TD>
      <P align=justify>We have recorded the value added tax (&#147;VAT&#148;) paid in
      Argentina and related to the Pirquitas property as a recoverable asset.
      Argentinean law states that VAT paid is recoverable once the company
      reaches the production stage. We commenced production at our Pirquitas
      property on December 1, 2009 and as a result, we have applied to the
      Argentinean government to begin to recover the VAT. The amount recoverable
      at December 31, 2010 is estimated to be $71,442,000 (2009 - $54,095,000)
      of which $667,000 is expected to be recovered within one year (2009 -
      $nil).</P></TD></TR>
  <TR>
    <TD width="5%">&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
  <TR>
    <TD width="5%"></TD>
    <TD>
      <P align=justify>In countries where we have paid VAT and where there is
      uncertainty of the recoverability, the VAT payments have either been
      deferred within mineral property costs or expensed if it relates to
      mineral exploration. If we ultimately recover amounts that have been
      deferred, the amount received will be applied to reduce mineral property
      costs.</P></TD></TR>
  <TR>
    <TD width="5%">&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
  <TR>
    <TD vAlign=top width="5%"><B>9</B> </TD>
    <TD>
      <P align=justify><B>INVESTMENT ACCOUNTED FOR UNDER THE EQUITY
      METHOD</B></P></TD></TR></TABLE><BR>

<TABLE
style="BORDER-COLOR: black; BORDER-COLLAPSE: collapse; FONT-SIZE: 10pt; "
border=0 cellSpacing=0 cellPadding=0 width="60%">

  <TR vAlign=top>
    <TD width="8%" align=left valign="bottom">&nbsp;</TD>
    <TD align=left valign="bottom"><B>Pretium Resources Inc.</B> </TD>
    <TD  width="1%" align=left valign="bottom">&nbsp;</TD>
    <TD width="30%" align=left valign="bottom">&nbsp; </TD>
    <TD  width="2%" align=left valign="bottom">&nbsp;</TD>
  </TR>
  <TR>
    <TD valign="bottom">&nbsp;</TD>
    <TD valign="bottom">&nbsp; </TD>
    <TD  width="1%" valign="bottom">&nbsp;</TD>
    <TD width="30%" valign="bottom">&nbsp; </TD>
    <TD  width="2%" valign="bottom">&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left valign="bottom">&nbsp;</TD>
    <TD align=left valign="bottom">&nbsp; </TD>
    <TD  width="1%" align=left valign="bottom">&nbsp;</TD>
    <TD width="30%" align=right valign="bottom" nowrap><B>December 31, 2010</B> </TD>
    <TD  width="2%" align=left valign="bottom">&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left valign="bottom">&nbsp;</TD>
    <TD align=left valign="bottom">&nbsp; </TD>
    <TD  width="1%"
    align=left valign="bottom" style="BORDER-BOTTOM: #000000 1px solid"><B></B></TD>
    <TD width="30%"
      align=right valign="bottom" style="BORDER-BOTTOM: #000000 1px solid"><STRONG>$</STRONG>&nbsp;</TD>
    <TD  width="2%"
    align=left valign="bottom" style="BORDER-BOTTOM: #000000 1px solid">&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left valign="bottom">&nbsp;</TD>
    <TD align=left valign="bottom" bgColor=#e6efff>&nbsp; &nbsp;Common shares </TD>
    <TD  width="1%" align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD width="30%" align=right valign="bottom" bgColor=#e6efff><B>187,202</B> </TD>
    <TD  width="2%" align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left valign="bottom">&nbsp;</TD>
    <TD align=left valign="bottom">&nbsp; &nbsp;Promissory note </TD>
    <TD  width="1%"
    align=left valign="bottom" style="BORDER-BOTTOM: #000000 1px solid">&nbsp;</TD>
    <TD width="30%"
      align=right valign="bottom" style="BORDER-BOTTOM: #000000 1px solid"><B>39,069</B> </TD>
    <TD  width="2%"
    align=left valign="bottom" style="BORDER-BOTTOM: #000000 1px solid">&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left valign="bottom">&nbsp;</TD>
    <TD align=left valign="bottom" bgColor=#e6efff>&nbsp; </TD>
    <TD
    width="1%" align=left valign="bottom" bgColor=#e6efff style="BORDER-BOTTOM: #000000 2px solid">&nbsp;</TD>
    <TD width="30%"
    align=right valign="bottom" bgColor=#e6efff style="BORDER-BOTTOM: #000000 2px solid"><B>226,271</B> </TD>
  <TD
    width="2%" align=left valign="bottom" bgColor=#e6efff style="BORDER-BOTTOM: #000000 2px solid">&nbsp;</TD>
  </TR></TABLE>
<P style="MARGIN-LEFT: 5%" align=justify>On December 21, 2010 we completed the
sale of our Snowfield and Brucejack projects to Pretium Resources Inc.
(&#147;Pretium&#148;), in exchange for cash and common shares of Pretium, which
represented a 41.27% ownership interest in Pretium as at December 31, 2010 (note
10b (i)). The Company&#146;s interest in Pretium has been accounted for using the
equity method.</P>
<P style="MARGIN-LEFT: 5%" align=justify>As part of the sale proceeds we also
received a promissory note. As at December 31, 2010 this promissory note has
been included in the carrying value of the investment in Pretium as this most
accurately reflects the substance of the instrument. The note is convertible
into common shares of Pretium to the extent unpaid 40 days after closing and
bears no interest (note 10b (i)).</P>
<P style="MARGIN-LEFT: 5%" align=justify>These exploration stage properties have
no current operations. The carrying amount represents the fair value of our
investment in Pretium at initial recognition, adjusted for subsequent earnings
or losses of Pretium from the date of ownership.</P>
<P style="MARGIN-LEFT: 5%" align=justify>Share of loss of equity investee for
the period from December 21, 2010 to December 31, 2010 was $4,669,000; of which
$4,592,000 represents our share of stock based compensation charged by Pretium
following the conversion of a preferred share with a carrying value of
$1,500,000 into 2.5% of the issued and outstanding common shares of Pretium on a
fully diluted basis at the date of the transaction. This expense was contingent
upon the closing of the acquisition and has therefore been included as a
transaction cost and reduces the gain on disposal of mineral properties in the
consolidated statement of earnings (loss). The balance of $77,000 is presented
as share of loss of equity investee. </P>
<P align=right>20</P>
<HR style="PAGE-BREAK-AFTER: always" align=center color=black SIZE=5
width="100%" noShade>
<!--$$/page=--><A name=page_28></A><BR>
<TABLE
style="BORDER-COLOR: black; BORDER-COLLAPSE: collapse; FONT-SIZE: 10pt; "
border=0 cellSpacing=0 cellPadding=0 width="100%">

  <TR vAlign=top>
    <TD align=left><B>Silver Standard Resources Inc.</B> </TD></TR>
  <TR vAlign=top>
    <TD align=left>Notes to Consolidated Financial Statements </TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>December 31, 2010,
      2009 and 2008 </TD></TR>
  <TR vAlign=top>
    <TD align=left>(tabular amounts expressed in thousands of United States
      dollars unless otherwise stated) </TD></TR></TABLE><BR>
<TABLE
style="BORDER-COLOR: black; BORDER-COLLAPSE: collapse; FONT-SIZE: 10pt; "
border=0 cellSpacing=0 cellPadding=0 width="100%">

  <TR vAlign=top>
    <TD align=left><B>10</B> </TD>
    <TD width="95%" align=left><B>MINERAL PROPERTIES AND PROPERTY, PLANT AND
      EQUIPMENT</B> </TD></TR></TABLE><BR>
<TABLE
style="BORDER-COLOR: black; BORDER-COLLAPSE: collapse; FONT-SIZE: 8pt; "
border=0 cellSpacing=0 cellPadding=0 width="100%">

  <TR vAlign=top>
    <TD width="5%" >&nbsp;</TD>
    <TD align=left valign="bottom">&nbsp; </TD>
    <TD width="1%"
    align=left valign="bottom" style="BORDER-BOTTOM: #000000 1px solid">&nbsp;</TD>
    <TD width="8%" align=left valign="bottom" style="BORDER-BOTTOM: #000000 1px solid">&nbsp;    </TD>
    <TD width="2%"
    align=left valign="bottom" style="BORDER-BOTTOM: #000000 1px solid">&nbsp;</TD>
    <TD width="1%"
    align=left valign="bottom" style="BORDER-BOTTOM: #000000 1px solid">&nbsp;</TD>
    <TD width="19%" colSpan=4
    align=right valign="bottom" style="BORDER-BOTTOM: #000000 1px solid"><B>December 31, 2010</B> </TD>
    <TD width="2%"
    align=left valign="bottom" style="BORDER-BOTTOM: #000000 1px solid">&nbsp;</TD>
    <TD width="1%"
    align=left valign="bottom" style="BORDER-BOTTOM: #000000 1px solid">&nbsp;</TD>
    <TD width="8%" align=left valign="bottom" style="BORDER-BOTTOM: #000000 1px solid">&nbsp;    </TD>
    <TD width="2%"
    align=left valign="bottom" style="BORDER-BOTTOM: #000000 1px solid">&nbsp;</TD>
    <TD width="1%"
    align=left valign="bottom" style="BORDER-BOTTOM: #000000 1px solid">&nbsp;</TD>
    <TD width="19%" colSpan=4
    align=right valign="bottom" style="BORDER-BOTTOM: #000000 1px solid"><B>December 31, 2009</B> </TD>
    <TD width="2%"
    align=left valign="bottom" style="BORDER-BOTTOM: #000000 1px solid">&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD width="5%">&nbsp;</TD>
    <TD align=left valign="bottom">&nbsp; </TD>
    <TD width="1%" align=left valign="bottom">&nbsp;</TD>
    <TD width="8%" align=left valign="bottom">&nbsp; </TD>
    <TD width="2%" align=left valign="bottom">&nbsp;</TD>
    <TD width="1%" align=left valign="bottom">&nbsp;</TD>
    <TD width="19%" colSpan=4 align=right valign="bottom"><B>Accum. Net Book</B> </TD>
    <TD width="2%" align=left valign="bottom">&nbsp;</TD>
    <TD width="1%" align=left valign="bottom">&nbsp;</TD>
    <TD width="8%" align=left valign="bottom">&nbsp; </TD>
    <TD width="2%" align=left valign="bottom">&nbsp;</TD>
    <TD width="1%" align=left valign="bottom">&nbsp;</TD>
    <TD width="19%" colSpan=4 align=right valign="bottom"><B>Accum. Net Book</B> </TD>
    <TD width="2%" align=left valign="bottom">&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD width="5%">&nbsp;</TD>
    <TD align=left valign="bottom">&nbsp; </TD>
    <TD width="1%" align=left valign="bottom">&nbsp;</TD>
    <TD width="8%" align=right valign="bottom"><B>Cost</B> </TD>
    <TD width="2%" align=left valign="bottom">&nbsp;</TD>
    <TD width="1%" align=left valign="bottom">&nbsp;</TD>
    <TD width="8%" align=right valign="bottom"><B>Amort.</B> </TD>
    <TD width="2%" align=left valign="bottom">&nbsp;</TD>
    <TD width="1%" align=left valign="bottom">&nbsp;</TD>
    <TD width="8%" align=right valign="bottom"><B>Value</B> </TD>
    <TD width="2%" align=left valign="bottom">&nbsp;</TD>
    <TD width="1%" align=left valign="bottom">&nbsp;</TD>
    <TD width="8%" align=right valign="bottom"><B>Cost</B> </TD>
    <TD width="2%" align=left valign="bottom">&nbsp;</TD>
    <TD width="1%" align=left valign="bottom">&nbsp;</TD>
    <TD width="8%" align=right valign="bottom"><B>Amort.</B> </TD>
    <TD width="2%" align=left valign="bottom">&nbsp;</TD>
    <TD width="1%" align=left valign="bottom">&nbsp;</TD>
    <TD width="8%" align=right valign="bottom"><B>Value</B> </TD>
    <TD width="2%" align=left valign="bottom">&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD width="5%">&nbsp;</TD>
    <TD align=left valign="bottom">&nbsp; </TD>
    <TD width="1%"
    align=left valign="bottom" style="BORDER-BOTTOM: #000000 1px solid"><B></B></TD>
    <TD width="8%"
      align=right valign="bottom" style="BORDER-BOTTOM: #000000 1px solid"><STRONG>$</STRONG>&nbsp;</TD>
    <TD width="2%"
    align=left valign="bottom" style="BORDER-BOTTOM: #000000 1px solid">&nbsp;</TD>
    <TD width="1%"
    align=left valign="bottom" style="BORDER-BOTTOM: #000000 1px solid"><B></B></TD>
    <TD width="8%"
      align=right valign="bottom" style="BORDER-BOTTOM: #000000 1px solid"><STRONG>$</STRONG>&nbsp;</TD>
    <TD width="2%"
    align=left valign="bottom" style="BORDER-BOTTOM: #000000 1px solid">&nbsp;</TD>
    <TD width="1%"
    align=left valign="bottom" style="BORDER-BOTTOM: #000000 1px solid"><B></B></TD>
    <TD width="8%"
      align=right valign="bottom" style="BORDER-BOTTOM: #000000 1px solid"><STRONG>$</STRONG>&nbsp;</TD>
    <TD width="2%"
    align=left valign="bottom" style="BORDER-BOTTOM: #000000 1px solid">&nbsp;</TD>
    <TD width="1%"
    align=left valign="bottom" style="BORDER-BOTTOM: #000000 1px solid"><B></B></TD>
    <TD width="8%"
      align=right valign="bottom" style="BORDER-BOTTOM: #000000 1px solid"><STRONG>$</STRONG>&nbsp;</TD>
    <TD width="2%"
    align=left valign="bottom" style="BORDER-BOTTOM: #000000 1px solid">&nbsp;</TD>
    <TD width="1%"
    align=left valign="bottom" style="BORDER-BOTTOM: #000000 1px solid"><B></B></TD>
    <TD width="8%"
      align=right valign="bottom" style="BORDER-BOTTOM: #000000 1px solid"><STRONG>$</STRONG>&nbsp;</TD>
    <TD width="2%"
    align=left valign="bottom" style="BORDER-BOTTOM: #000000 1px solid">&nbsp;</TD>
    <TD width="1%"
    align=left valign="bottom" style="BORDER-BOTTOM: #000000 1px solid"><B></B></TD>
    <TD width="8%"
      align=right valign="bottom" style="BORDER-BOTTOM: #000000 1px solid"><STRONG>$</STRONG>&nbsp;</TD>
    <TD width="2%"
    align=left valign="bottom" style="BORDER-BOTTOM: #000000 1px solid">&nbsp;</TD>
  </TR>
  <TR>
    <TD width="5%">&nbsp;</TD>
    <TD valign="bottom">&nbsp; </TD>
    <TD width="1%" valign="bottom">&nbsp;</TD>
    <TD width="8%" valign="bottom">&nbsp; </TD>
    <TD width="2%" valign="bottom">&nbsp;</TD>
    <TD width="1%" valign="bottom">&nbsp;</TD>
    <TD width="8%" valign="bottom">&nbsp; </TD>
    <TD width="2%" valign="bottom">&nbsp;</TD>
    <TD width="1%" valign="bottom">&nbsp;</TD>
    <TD width="8%" valign="bottom">&nbsp; </TD>
    <TD width="2%" valign="bottom">&nbsp;</TD>
    <TD width="1%" valign="bottom">&nbsp;</TD>
    <TD width="8%" valign="bottom">&nbsp; </TD>
    <TD width="2%" valign="bottom">&nbsp;</TD>
    <TD width="1%" valign="bottom">&nbsp;</TD>
    <TD width="8%" valign="bottom">&nbsp; </TD>
    <TD width="2%" valign="bottom">&nbsp;</TD>
    <TD width="1%" valign="bottom">&nbsp;</TD>
    <TD width="8%" valign="bottom">&nbsp; </TD>
    <TD width="2%" valign="bottom">&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD width="5%">&nbsp;</TD>
    <TD align=left valign="bottom" bgColor=#e6efff>Mineral properties </TD>
    <TD width="1%" align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD width="8%" align=left valign="bottom" bgColor=#e6efff>&nbsp; </TD>
    <TD width="2%" align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD width="1%" align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD width="8%" align=left valign="bottom" bgColor=#e6efff>&nbsp; </TD>
    <TD width="2%" align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD width="1%" align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD width="8%" align=left valign="bottom" bgColor=#e6efff>&nbsp; </TD>
    <TD width="2%" align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD width="1%" align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD width="8%" align=left valign="bottom" bgColor=#e6efff>&nbsp; </TD>
    <TD width="2%" align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD width="1%" align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD width="8%" align=left valign="bottom" bgColor=#e6efff>&nbsp; </TD>
    <TD width="2%" align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD width="1%" align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD width="8%" align=left valign="bottom" bgColor=#e6efff>&nbsp; </TD>
    <TD width="2%" align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD width="5%">&nbsp;</TD>
    <TD align=left valign="bottom">&nbsp; &nbsp;Depletable producing properties </TD>
    <TD width="1%" align=left valign="bottom">&nbsp;</TD>
    <TD width="8%" align=right valign="bottom"><B>179,774</B> </TD>
    <TD width="2%" align=left valign="bottom">&nbsp;</TD>
    <TD width="1%" align=left valign="bottom">&nbsp;</TD>
    <TD width="8%" align=right valign="bottom"><B>(8,212</B></TD>
    <TD width="2%" align=left valign="bottom"><B>)</B> </TD>
    <TD width="1%" align=left valign="bottom">&nbsp;</TD>
    <TD width="8%" align=right valign="bottom"><B>171,562</B> </TD>
    <TD width="2%" align=left valign="bottom">&nbsp;</TD>
    <TD width="1%" align=left valign="bottom">&nbsp;</TD>
    <TD width="8%" align=right valign="bottom">180,636 </TD>
    <TD width="2%" align=left valign="bottom">&nbsp;</TD>
    <TD width="1%" align=left valign="bottom">&nbsp;</TD>
    <TD width="8%" align=right valign="bottom">(618</TD>
    <TD width="2%" align=left valign="bottom">) </TD>
    <TD width="1%" align=left valign="bottom">&nbsp;</TD>
    <TD width="8%" align=right valign="bottom">180,018 </TD>
    <TD width="2%" align=left valign="bottom">&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD width="5%">&nbsp;</TD>
    <TD align=left valign="bottom" bgColor=#e6efff>&nbsp; &nbsp;Non-depletable exploration
      properties </TD>
    <TD width="1%"
    align=left valign="bottom" bgColor=#e6efff style="BORDER-BOTTOM: #000000 1px solid">&nbsp;</TD>
    <TD width="8%"
    align=right valign="bottom" bgColor=#e6efff style="BORDER-BOTTOM: #000000 1px solid"><B>205,557</B> </TD>
    <TD width="2%"
    align=left valign="bottom" bgColor=#e6efff style="BORDER-BOTTOM: #000000 1px solid">&nbsp;</TD>
    <TD width="1%"
    align=left valign="bottom" bgColor=#e6efff style="BORDER-BOTTOM: #000000 1px solid">&nbsp;</TD>
    <TD width="8%"
    align=right valign="bottom" bgColor=#e6efff style="BORDER-BOTTOM: #000000 1px solid"><B>-</B> </TD>
    <TD width="2%"
    align=left valign="bottom" bgColor=#e6efff style="BORDER-BOTTOM: #000000 1px solid">&nbsp;</TD>
    <TD width="1%"
    align=left valign="bottom" bgColor=#e6efff style="BORDER-BOTTOM: #000000 1px solid">&nbsp;</TD>
    <TD width="8%"
    align=right valign="bottom" bgColor=#e6efff style="BORDER-BOTTOM: #000000 1px solid"><B>205,557</B> </TD>
    <TD width="2%"
    align=left valign="bottom" bgColor=#e6efff style="BORDER-BOTTOM: #000000 1px solid">&nbsp;</TD>
    <TD width="1%"
    align=left valign="bottom" bgColor=#e6efff style="BORDER-BOTTOM: #000000 1px solid">&nbsp;</TD>
    <TD width="8%"
    align=right valign="bottom" bgColor=#e6efff style="BORDER-BOTTOM: #000000 1px solid">191,047 </TD>
    <TD width="2%"
    align=left valign="bottom" bgColor=#e6efff style="BORDER-BOTTOM: #000000 1px solid">&nbsp;</TD>
    <TD width="1%"
    align=left valign="bottom" bgColor=#e6efff style="BORDER-BOTTOM: #000000 1px solid">&nbsp;</TD>
    <TD width="8%"
    align=right valign="bottom" bgColor=#e6efff style="BORDER-BOTTOM: #000000 1px solid">- </TD>
    <TD width="2%"
    align=left valign="bottom" bgColor=#e6efff style="BORDER-BOTTOM: #000000 1px solid">&nbsp;</TD>
    <TD width="1%"
    align=left valign="bottom" bgColor=#e6efff style="BORDER-BOTTOM: #000000 1px solid">&nbsp;</TD>
    <TD width="8%"
    align=right valign="bottom" bgColor=#e6efff style="BORDER-BOTTOM: #000000 1px solid">191,047 </TD>
    <TD width="2%"
    align=left valign="bottom" bgColor=#e6efff style="BORDER-BOTTOM: #000000 1px solid">&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD width="5%">&nbsp;</TD>
    <TD align=left valign="bottom">&nbsp; </TD>
    <TD width="1%" align=left valign="bottom">&nbsp;</TD>
    <TD width="8%" align=right valign="bottom"><B>385,331</B> </TD>
    <TD width="2%" align=left valign="bottom">&nbsp;</TD>
    <TD width="1%" align=left valign="bottom">&nbsp;</TD>
    <TD width="8%" align=right valign="bottom"><B>(8,212</B></TD>
    <TD width="2%" align=left valign="bottom"><B>)</B> </TD>
    <TD width="1%" align=left valign="bottom">&nbsp;</TD>
    <TD width="8%" align=right valign="bottom"><B>377,119</B> </TD>
    <TD width="2%" align=left valign="bottom">&nbsp;</TD>
    <TD width="1%" align=left valign="bottom">&nbsp;</TD>
    <TD width="8%" align=right valign="bottom">371,683 </TD>
    <TD width="2%" align=left valign="bottom">&nbsp;</TD>
    <TD width="1%" align=left valign="bottom">&nbsp;</TD>
    <TD width="8%" align=right valign="bottom">(618</TD>
    <TD width="2%" align=left valign="bottom">) </TD>
    <TD width="1%" align=left valign="bottom">&nbsp;</TD>
    <TD width="8%" align=right valign="bottom">371,065 </TD>
    <TD width="2%" align=left valign="bottom">&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD width="5%">&nbsp;</TD>
    <TD align=left valign="bottom" bgColor=#e6efff>Construction in progress </TD>
    <TD width="1%" align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD width="8%" align=left valign="bottom" bgColor=#e6efff>&nbsp; </TD>
    <TD width="2%" align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD width="1%" align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD width="8%" align=left valign="bottom" bgColor=#e6efff>&nbsp; </TD>
    <TD width="2%" align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD width="1%" align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD width="8%" align=left valign="bottom" bgColor=#e6efff>&nbsp; </TD>
    <TD width="2%" align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD width="1%" align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD width="8%" align=left valign="bottom" bgColor=#e6efff>&nbsp; </TD>
    <TD width="2%" align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD width="1%" align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD width="8%" align=left valign="bottom" bgColor=#e6efff>&nbsp; </TD>
    <TD width="2%" align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD width="1%" align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD width="8%" align=left valign="bottom" bgColor=#e6efff>&nbsp; </TD>
    <TD width="2%" align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD width="5%">&nbsp;</TD>
    <TD align=left valign="bottom">&nbsp; &nbsp;Pirquitas, Argentina </TD>
    <TD width="1%" align=left valign="bottom">&nbsp;</TD>
    <TD width="8%" align=right valign="bottom"><B>8,695</B> </TD>
    <TD width="2%" align=left valign="bottom">&nbsp;</TD>
    <TD width="1%" align=left valign="bottom">&nbsp;</TD>
    <TD width="8%" align=right valign="bottom"><B>-</B> </TD>
    <TD width="2%" align=left valign="bottom">&nbsp;</TD>
    <TD width="1%" align=left valign="bottom">&nbsp;</TD>
    <TD width="8%" align=right valign="bottom"><B>8,695</B> </TD>
    <TD width="2%" align=left valign="bottom">&nbsp;</TD>
    <TD width="1%" align=left valign="bottom">&nbsp;</TD>
    <TD width="8%" align=right valign="bottom">8,015 </TD>
    <TD width="2%" align=left valign="bottom">&nbsp;</TD>
    <TD width="1%" align=left valign="bottom">&nbsp;</TD>
    <TD width="8%" align=right valign="bottom">- </TD>
    <TD width="2%" align=left valign="bottom">&nbsp;</TD>
    <TD width="1%" align=left valign="bottom">&nbsp;</TD>
    <TD width="8%" align=right valign="bottom">8,015 </TD>
    <TD width="2%" align=left valign="bottom">&nbsp;</TD>
  </TR>
  <TR>
    <TD width="5%">&nbsp;</TD>
    <TD valign="bottom" bgColor=#e6efff>&nbsp; </TD>
    <TD width="1%" valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD width="8%" valign="bottom" bgColor=#e6efff>&nbsp; </TD>
    <TD width="2%" valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD width="1%" valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD width="8%" valign="bottom" bgColor=#e6efff>&nbsp; </TD>
    <TD width="2%" valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD width="1%" valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD width="8%" valign="bottom" bgColor=#e6efff>&nbsp; </TD>
    <TD width="2%" valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD width="1%" valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD width="8%" valign="bottom" bgColor=#e6efff>&nbsp; </TD>
    <TD width="2%" valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD width="1%" valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD width="8%" valign="bottom" bgColor=#e6efff>&nbsp; </TD>
    <TD width="2%" valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD width="1%" valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD width="8%" valign="bottom" bgColor=#e6efff>&nbsp; </TD>
    <TD width="2%" valign="bottom" bgColor=#e6efff>&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD width="5%">&nbsp;</TD>
    <TD align=left valign="bottom">Property, plant and equipment </TD>
    <TD width="1%" align=left valign="bottom">&nbsp;</TD>
    <TD width="8%" align=left valign="bottom">&nbsp; </TD>
    <TD width="2%" align=left valign="bottom">&nbsp;</TD>
    <TD width="1%" align=left valign="bottom">&nbsp;</TD>
    <TD width="8%" align=left valign="bottom">&nbsp; </TD>
    <TD width="2%" align=left valign="bottom">&nbsp;</TD>
    <TD width="1%" align=left valign="bottom">&nbsp;</TD>
    <TD width="8%" align=left valign="bottom">&nbsp; </TD>
    <TD width="2%" align=left valign="bottom">&nbsp;</TD>
    <TD width="1%" align=left valign="bottom">&nbsp;</TD>
    <TD width="8%" align=left valign="bottom">&nbsp; </TD>
    <TD width="2%" align=left valign="bottom">&nbsp;</TD>
    <TD width="1%" align=left valign="bottom">&nbsp;</TD>
    <TD width="8%" align=left valign="bottom">&nbsp; </TD>
    <TD width="2%" align=left valign="bottom">&nbsp;</TD>
    <TD width="1%" align=left valign="bottom">&nbsp;</TD>
    <TD width="8%" align=left valign="bottom">&nbsp; </TD>
    <TD width="2%" align=left valign="bottom">&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD width="5%">&nbsp;</TD>
    <TD align=left valign="bottom" bgColor=#e6efff>&nbsp; &nbsp;Building, mining equipment and
      machinery </TD>
    <TD width="1%" align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD width="8%" align=right valign="bottom" bgColor=#e6efff><B>259,890</B> </TD>
    <TD width="2%" align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD width="1%" align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD width="8%" align=right valign="bottom" bgColor=#e6efff><B>(33,427</B></TD>
    <TD width="2%" align=left valign="bottom" bgColor=#e6efff><B>)</B> </TD>
    <TD width="1%" align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD width="8%" align=right valign="bottom" bgColor=#e6efff><B>226,463</B> </TD>
    <TD width="2%" align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD width="1%" align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD width="8%" align=right valign="bottom" bgColor=#e6efff>247,214 </TD>
    <TD width="2%" align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD width="1%" align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD width="8%" align=right valign="bottom" bgColor=#e6efff>(15,431</TD>
    <TD width="2%" align=left valign="bottom" bgColor=#e6efff>) </TD>
    <TD width="1%" align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD width="8%" align=right valign="bottom" bgColor=#e6efff>231,783 </TD>
    <TD width="2%" align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD width="5%">&nbsp;</TD>
    <TD align=left valign="bottom">&nbsp; &nbsp;Other </TD>
    <TD width="1%"
    align=left valign="bottom" style="BORDER-BOTTOM: #000000 1px solid">&nbsp;</TD>
    <TD width="8%"
      align=right valign="bottom" style="BORDER-BOTTOM: #000000 1px solid"><B>3,405</B> </TD>
    <TD width="2%"
    align=left valign="bottom" style="BORDER-BOTTOM: #000000 1px solid">&nbsp;</TD>
    <TD width="1%"
    align=left valign="bottom" style="BORDER-BOTTOM: #000000 1px solid">&nbsp;</TD>
    <TD width="8%"
      align=right valign="bottom" style="BORDER-BOTTOM: #000000 1px solid"><B>(2,023</B></TD>
    <TD width="2%"
      align=left valign="bottom" style="BORDER-BOTTOM: #000000 1px solid"><B>)</B> </TD>
    <TD width="1%"
    align=left valign="bottom" style="BORDER-BOTTOM: #000000 1px solid">&nbsp;</TD>
    <TD width="8%"
      align=right valign="bottom" style="BORDER-BOTTOM: #000000 1px solid"><B>1,382</B> </TD>
    <TD width="2%"
    align=left valign="bottom" style="BORDER-BOTTOM: #000000 1px solid">&nbsp;</TD>
    <TD width="1%"
    align=left valign="bottom" style="BORDER-BOTTOM: #000000 1px solid">&nbsp;</TD>
    <TD width="8%" align=right valign="bottom" style="BORDER-BOTTOM: #000000 1px solid">3,268    </TD>
    <TD width="2%"
    align=left valign="bottom" style="BORDER-BOTTOM: #000000 1px solid">&nbsp;</TD>
    <TD width="1%"
    align=left valign="bottom" style="BORDER-BOTTOM: #000000 1px solid">&nbsp;</TD>
    <TD width="8%"
    align=right valign="bottom" style="BORDER-BOTTOM: #000000 1px solid">(1,513</TD>
    <TD width="2%" align=left valign="bottom" style="BORDER-BOTTOM: #000000 1px solid">) </TD>
    <TD width="1%"
    align=left valign="bottom" style="BORDER-BOTTOM: #000000 1px solid">&nbsp;</TD>
    <TD width="8%" align=right valign="bottom" style="BORDER-BOTTOM: #000000 1px solid">1,755    </TD>
    <TD width="2%"
    align=left valign="bottom" style="BORDER-BOTTOM: #000000 1px solid">&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD width="5%">&nbsp;</TD>
    <TD align=left valign="bottom" bgColor=#e6efff>&nbsp; </TD>
    <TD width="1%"
    align=left valign="bottom" bgColor=#e6efff style="BORDER-BOTTOM: #000000 1px solid">&nbsp;</TD>
    <TD width="8%"
    align=right valign="bottom" bgColor=#e6efff style="BORDER-BOTTOM: #000000 1px solid"><B>263,295</B> </TD>
    <TD width="2%"
    align=left valign="bottom" bgColor=#e6efff style="BORDER-BOTTOM: #000000 1px solid">&nbsp;</TD>
    <TD width="1%"
    align=left valign="bottom" bgColor=#e6efff style="BORDER-BOTTOM: #000000 1px solid">&nbsp;</TD>
    <TD width="8%"
    align=right valign="bottom" bgColor=#e6efff style="BORDER-BOTTOM: #000000 1px solid"><B>(35,450</B></TD>
    <TD width="2%"
    align=left valign="bottom" bgColor=#e6efff style="BORDER-BOTTOM: #000000 1px solid"><B>)</B> </TD>
    <TD width="1%"
    align=left valign="bottom" bgColor=#e6efff style="BORDER-BOTTOM: #000000 1px solid">&nbsp;</TD>
    <TD width="8%"
    align=right valign="bottom" bgColor=#e6efff style="BORDER-BOTTOM: #000000 1px solid"><B>227,845</B> </TD>
    <TD width="2%"
    align=left valign="bottom" bgColor=#e6efff style="BORDER-BOTTOM: #000000 1px solid">&nbsp;</TD>
    <TD width="1%"
    align=left valign="bottom" bgColor=#e6efff style="BORDER-BOTTOM: #000000 1px solid">&nbsp;</TD>
    <TD width="8%"
    align=right valign="bottom" bgColor=#e6efff style="BORDER-BOTTOM: #000000 1px solid">250,482 </TD>
    <TD width="2%"
    align=left valign="bottom" bgColor=#e6efff style="BORDER-BOTTOM: #000000 1px solid">&nbsp;</TD>
    <TD width="1%"
    align=left valign="bottom" bgColor=#e6efff style="BORDER-BOTTOM: #000000 1px solid">&nbsp;</TD>
    <TD width="8%"
    align=right valign="bottom" bgColor=#e6efff style="BORDER-BOTTOM: #000000 1px solid">(16,944</TD>
    <TD width="2%"
    align=left valign="bottom" bgColor=#e6efff style="BORDER-BOTTOM: #000000 1px solid">) </TD>
    <TD width="1%"
    align=left valign="bottom" bgColor=#e6efff style="BORDER-BOTTOM: #000000 1px solid">&nbsp;</TD>
    <TD width="8%"
    align=right valign="bottom" bgColor=#e6efff style="BORDER-BOTTOM: #000000 1px solid">233,538 </TD>
    <TD width="2%"
    align=left valign="bottom" bgColor=#e6efff style="BORDER-BOTTOM: #000000 1px solid">&nbsp;</TD>
  </TR>
  <TR>
    <TD width="5%">&nbsp;</TD>
    <TD valign="bottom">&nbsp; </TD>
    <TD width="1%" valign="bottom">&nbsp;</TD>
    <TD width="8%" valign="bottom">&nbsp; </TD>
    <TD width="2%" valign="bottom">&nbsp;</TD>
    <TD width="1%" valign="bottom">&nbsp;</TD>
    <TD width="8%" valign="bottom">&nbsp; </TD>
    <TD width="2%" valign="bottom">&nbsp;</TD>
    <TD width="1%" valign="bottom">&nbsp;</TD>
    <TD width="8%" valign="bottom">&nbsp; </TD>
    <TD width="2%" valign="bottom">&nbsp;</TD>
    <TD width="1%" valign="bottom">&nbsp;</TD>
    <TD width="8%" valign="bottom">&nbsp; </TD>
    <TD width="2%" valign="bottom">&nbsp;</TD>
    <TD width="1%" valign="bottom">&nbsp;</TD>
    <TD width="8%" valign="bottom">&nbsp; </TD>
    <TD width="2%" valign="bottom">&nbsp;</TD>
    <TD width="1%" valign="bottom">&nbsp;</TD>
    <TD width="8%" valign="bottom">&nbsp; </TD>
    <TD width="2%" valign="bottom">&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD width="5%">&nbsp;</TD>
    <TD align=left valign="bottom" bgColor=#e6efff>&nbsp; </TD>
    <TD width="1%"
    align=left valign="bottom" bgColor=#e6efff style="BORDER-BOTTOM: #000000 2px solid">&nbsp;</TD>
    <TD width="8%"
    align=right valign="bottom" bgColor=#e6efff style="BORDER-BOTTOM: #000000 2px solid"><B>657,321</B> </TD>
    <TD width="2%"
    align=left valign="bottom" bgColor=#e6efff style="BORDER-BOTTOM: #000000 2px solid">&nbsp;</TD>
    <TD width="1%"
    align=left valign="bottom" bgColor=#e6efff style="BORDER-BOTTOM: #000000 2px solid">&nbsp;</TD>
    <TD width="8%"
    align=right valign="bottom" bgColor=#e6efff style="BORDER-BOTTOM: #000000 2px solid"><B>(43,662</B></TD>
    <TD width="2%"
    align=left valign="bottom" bgColor=#e6efff style="BORDER-BOTTOM: #000000 2px solid"><B>)</B> </TD>
    <TD width="1%"
    align=left valign="bottom" bgColor=#e6efff style="BORDER-BOTTOM: #000000 2px solid">&nbsp;</TD>
    <TD width="8%"
    align=right valign="bottom" bgColor=#e6efff style="BORDER-BOTTOM: #000000 2px solid"><B>613,659</B> </TD>
    <TD width="2%"
    align=left valign="bottom" bgColor=#e6efff style="BORDER-BOTTOM: #000000 2px solid">&nbsp;</TD>
    <TD width="1%"
    align=left valign="bottom" bgColor=#e6efff style="BORDER-BOTTOM: #000000 2px solid">&nbsp;</TD>
    <TD width="8%"
    align=right valign="bottom" bgColor=#e6efff style="BORDER-BOTTOM: #000000 2px solid">630,180 </TD>
    <TD width="2%"
    align=left valign="bottom" bgColor=#e6efff style="BORDER-BOTTOM: #000000 2px solid">&nbsp;</TD>
    <TD width="1%"
    align=left valign="bottom" bgColor=#e6efff style="BORDER-BOTTOM: #000000 2px solid">&nbsp;</TD>
    <TD width="8%"
    align=right valign="bottom" bgColor=#e6efff style="BORDER-BOTTOM: #000000 2px solid">(17,562</TD>
    <TD width="2%"
    align=left valign="bottom" bgColor=#e6efff style="BORDER-BOTTOM: #000000 2px solid">) </TD>
    <TD width="1%"
    align=left valign="bottom" bgColor=#e6efff style="BORDER-BOTTOM: #000000 2px solid">&nbsp;</TD>
    <TD width="8%"
    align=right valign="bottom" bgColor=#e6efff style="BORDER-BOTTOM: #000000 2px solid">612,618 </TD>
    <TD width="2%"
    align=left valign="bottom" bgColor=#e6efff style="BORDER-BOTTOM: #000000 2px solid">&nbsp;</TD>
  </TR></TABLE>
<P style="MARGIN-LEFT: 5%" align=justify>The allocation of depreciation expense
on property, plant and equipment was as follows:</P>
<TABLE
style="BORDER-COLOR: black; BORDER-COLLAPSE: collapse; FONT-SIZE: 10pt; "
border=0 cellSpacing=0 cellPadding=0 width="100%">

  <TR vAlign=top>
    <TD width="5%" >&nbsp;</TD>
    <TD align=left valign="bottom">&nbsp; </TD>
    <TD width="1%" align=left valign="bottom">&nbsp;</TD>
    <TD width="10%" align=right valign="bottom"><B>2010</B> </TD>
    <TD width="2%" align=left valign="bottom">&nbsp;</TD>
    <TD width="1%" align=left valign="bottom">&nbsp;</TD>
    <TD width="10%" align=right valign="bottom"><B>2009</B> </TD>
    <TD width="2%" align=left valign="bottom">&nbsp;</TD>
    <TD width="1%" align=left valign="bottom">&nbsp;</TD>
    <TD width="10%" align=right valign="bottom"><B>2008</B> </TD>
    <TD width="2%" align=left valign="bottom">&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD width="5%">&nbsp;</TD>
    <TD align=left valign="bottom">&nbsp; </TD>
    <TD width="1%"
    align=left valign="bottom" style="BORDER-BOTTOM: #000000 1px solid"><B></B></TD>
    <TD width="10%"
      align=right valign="bottom" style="BORDER-BOTTOM: #000000 1px solid"><STRONG>$</STRONG>&nbsp;</TD>
    <TD width="2%"
    align=left valign="bottom" style="BORDER-BOTTOM: #000000 1px solid">&nbsp;</TD>
    <TD width="1%"
    align=left valign="bottom" style="BORDER-BOTTOM: #000000 1px solid"><B></B></TD>
    <TD width="10%"
      align=right valign="bottom" style="BORDER-BOTTOM: #000000 1px solid"><STRONG>$</STRONG>&nbsp;</TD>
    <TD width="2%"
    align=left valign="bottom" style="BORDER-BOTTOM: #000000 1px solid">&nbsp;</TD>
    <TD width="1%"
    align=left valign="bottom" style="BORDER-BOTTOM: #000000 1px solid"><B></B></TD>
    <TD width="10%"
      align=right valign="bottom" style="BORDER-BOTTOM: #000000 1px solid"><STRONG>$</STRONG>&nbsp;</TD>
    <TD width="2%"
    align=left valign="bottom" style="BORDER-BOTTOM: #000000 1px solid">&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD width="5%">&nbsp;</TD>
    <TD align=left valign="bottom" bgColor=#e6efff><B>Consolidated Balance Sheets</B> </TD>
    <TD width="1%" align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD width="10%" align=left valign="bottom" bgColor=#e6efff>&nbsp; </TD>
    <TD width="2%" align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD width="1%" align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD width="10%" align=left valign="bottom" bgColor=#e6efff>&nbsp; </TD>
    <TD width="2%" align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD width="1%" align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD width="10%" align=left valign="bottom" bgColor=#e6efff>&nbsp; </TD>
    <TD width="2%" align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD width="5%">&nbsp;</TD>
    <TD align=left valign="bottom">&nbsp; &nbsp; &nbsp; &nbsp;Inventory </TD>
    <TD width="1%" align=left valign="bottom">&nbsp;</TD>
    <TD width="10%" align=right valign="bottom"><B>18,100</B> </TD>
    <TD width="2%" align=left valign="bottom">&nbsp;</TD>
    <TD width="1%" align=left valign="bottom">&nbsp;</TD>
    <TD width="10%" align=right valign="bottom">1,515 </TD>
    <TD width="2%" align=left valign="bottom">&nbsp;</TD>
    <TD width="1%" align=left valign="bottom">&nbsp;</TD>
    <TD width="10%" align=right valign="bottom">- </TD>
    <TD width="2%" align=left valign="bottom">&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD width="5%">&nbsp;</TD>
    <TD align=left valign="bottom" bgColor=#e6efff>&nbsp; &nbsp; &nbsp; &nbsp;Mineral
      properties </TD>
    <TD width="1%"
    align=left valign="bottom" bgColor=#e6efff style="BORDER-BOTTOM: #000000 1px solid">&nbsp;</TD>
    <TD width="10%"
    align=right valign="bottom" bgColor=#e6efff style="BORDER-BOTTOM: #000000 1px solid"><B>124</B> </TD>
    <TD width="2%"
    align=left valign="bottom" bgColor=#e6efff style="BORDER-BOTTOM: #000000 1px solid">&nbsp;</TD>
    <TD width="1%"
    align=left valign="bottom" bgColor=#e6efff style="BORDER-BOTTOM: #000000 1px solid">&nbsp;</TD>
    <TD width="10%"
    align=right valign="bottom" bgColor=#e6efff style="BORDER-BOTTOM: #000000 1px solid">13,224 </TD>
    <TD width="2%"
    align=left valign="bottom" bgColor=#e6efff style="BORDER-BOTTOM: #000000 1px solid">&nbsp;</TD>
    <TD width="1%"
    align=left valign="bottom" bgColor=#e6efff style="BORDER-BOTTOM: #000000 1px solid">&nbsp;</TD>
    <TD width="10%"
    align=right valign="bottom" bgColor=#e6efff style="BORDER-BOTTOM: #000000 1px solid">735 </TD>
    <TD width="2%"
    align=left valign="bottom" bgColor=#e6efff style="BORDER-BOTTOM: #000000 1px solid">&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD width="5%">&nbsp;</TD>
    <TD align=left valign="bottom">&nbsp; </TD>
    <TD width="1%"
    align=left valign="bottom" style="BORDER-BOTTOM: #000000 1px solid">&nbsp;</TD>
    <TD width="10%"
      align=right valign="bottom" style="BORDER-BOTTOM: #000000 1px solid"><B>18,224</B> </TD>
    <TD width="2%"
    align=left valign="bottom" style="BORDER-BOTTOM: #000000 1px solid">&nbsp;</TD>
    <TD width="1%"
    align=left valign="bottom" style="BORDER-BOTTOM: #000000 1px solid">&nbsp;</TD>
    <TD width="10%"
      align=right valign="bottom" style="BORDER-BOTTOM: #000000 1px solid">14,739 </TD>
    <TD width="2%"
    align=left valign="bottom" style="BORDER-BOTTOM: #000000 1px solid">&nbsp;</TD>
    <TD width="1%"
    align=left valign="bottom" style="BORDER-BOTTOM: #000000 1px solid">&nbsp;</TD>
    <TD width="10%" align=right valign="bottom" style="BORDER-BOTTOM: #000000 1px solid">735    </TD>
    <TD width="2%"
    align=left valign="bottom" style="BORDER-BOTTOM: #000000 1px solid">&nbsp;</TD>
  </TR>
  <TR>
    <TD width="5%">&nbsp;</TD>
    <TD valign="bottom" bgColor=#e6efff>&nbsp; </TD>
    <TD width="1%" valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD width="10%" valign="bottom" bgColor=#e6efff>&nbsp; </TD>
    <TD width="2%" valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD width="1%" valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD width="10%" valign="bottom" bgColor=#e6efff>&nbsp; </TD>
    <TD width="2%" valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD width="1%" valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD width="10%" valign="bottom" bgColor=#e6efff>&nbsp; </TD>
    <TD width="2%" valign="bottom" bgColor=#e6efff>&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD width="5%">&nbsp;</TD>
    <TD align=left valign="bottom"><B>Consolidated Statements of Earnings (Loss)</B> </TD>
    <TD width="1%" align=left valign="bottom">&nbsp;</TD>
    <TD width="10%" align=left valign="bottom">&nbsp; </TD>
    <TD width="2%" align=left valign="bottom">&nbsp;</TD>
    <TD width="1%" align=left valign="bottom">&nbsp;</TD>
    <TD width="10%" align=left valign="bottom">&nbsp; </TD>
    <TD width="2%" align=left valign="bottom">&nbsp;</TD>
    <TD width="1%" align=left valign="bottom">&nbsp;</TD>
    <TD width="10%" align=left valign="bottom">&nbsp; </TD>
    <TD width="2%" align=left valign="bottom">&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD width="5%">&nbsp;</TD>
    <TD align=left valign="bottom" bgColor=#e6efff>&nbsp; &nbsp; &nbsp; &nbsp;General and
      administration </TD>
    <TD width="1%"
    align=left valign="bottom" bgColor=#e6efff style="BORDER-BOTTOM: #000000 1px solid">&nbsp;</TD>
    <TD width="10%"
    align=right valign="bottom" bgColor=#e6efff style="BORDER-BOTTOM: #000000 1px solid"><B>282</B> </TD>
    <TD width="2%"
    align=left valign="bottom" bgColor=#e6efff style="BORDER-BOTTOM: #000000 1px solid">&nbsp;</TD>
    <TD width="1%"
    align=left valign="bottom" bgColor=#e6efff style="BORDER-BOTTOM: #000000 1px solid">&nbsp;</TD>
    <TD width="10%"
    align=right valign="bottom" bgColor=#e6efff style="BORDER-BOTTOM: #000000 1px solid">229 </TD>
    <TD width="2%"
    align=left valign="bottom" bgColor=#e6efff style="BORDER-BOTTOM: #000000 1px solid">&nbsp;</TD>
    <TD width="1%"
    align=left valign="bottom" bgColor=#e6efff style="BORDER-BOTTOM: #000000 1px solid">&nbsp;</TD>
    <TD width="10%"
    align=right valign="bottom" bgColor=#e6efff style="BORDER-BOTTOM: #000000 1px solid">288 </TD>
    <TD width="2%"
    align=left valign="bottom" bgColor=#e6efff style="BORDER-BOTTOM: #000000 1px solid">&nbsp;</TD>
  </TR>
  <TR>
    <TD width="5%">&nbsp;</TD>
    <TD valign="bottom">&nbsp; </TD>
    <TD width="1%" valign="bottom">&nbsp;</TD>
    <TD width="10%" valign="bottom">&nbsp; </TD>
    <TD width="2%" valign="bottom">&nbsp;</TD>
    <TD width="1%" valign="bottom">&nbsp;</TD>
    <TD width="10%" valign="bottom">&nbsp; </TD>
    <TD width="2%" valign="bottom">&nbsp;</TD>
    <TD width="1%" valign="bottom">&nbsp;</TD>
    <TD width="10%" valign="bottom">&nbsp; </TD>
    <TD width="2%" valign="bottom">&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD width="5%">&nbsp;</TD>
    <TD align=left valign="bottom" bgColor=#e6efff><B>Total property, plant and equipment
      depreciation</B> </TD>
    <TD width="1%"
    align=left valign="bottom" bgColor=#e6efff style="BORDER-BOTTOM: #000000 2px solid">&nbsp;</TD>
    <TD width="10%"
    align=right valign="bottom" bgColor=#e6efff style="BORDER-BOTTOM: #000000 2px solid"><B>18,506</B> </TD>
    <TD width="2%"
    align=left valign="bottom" bgColor=#e6efff style="BORDER-BOTTOM: #000000 2px solid">&nbsp;</TD>
    <TD width="1%"
    align=left valign="bottom" bgColor=#e6efff style="BORDER-BOTTOM: #000000 2px solid">&nbsp;</TD>
    <TD width="10%"
    align=right valign="bottom" bgColor=#e6efff style="BORDER-BOTTOM: #000000 2px solid">14,968 </TD>
    <TD width="2%"
    align=left valign="bottom" bgColor=#e6efff style="BORDER-BOTTOM: #000000 2px solid">&nbsp;</TD>
    <TD width="1%"
    align=left valign="bottom" bgColor=#e6efff style="BORDER-BOTTOM: #000000 2px solid">&nbsp;</TD>
    <TD width="10%"
    align=right valign="bottom" bgColor=#e6efff style="BORDER-BOTTOM: #000000 2px solid">1,023 </TD>
    <TD width="2%"
    align=left valign="bottom" bgColor=#e6efff style="BORDER-BOTTOM: #000000 2px solid">&nbsp;</TD>
  </TR></TABLE>
<P style="MARGIN-LEFT: 5%" align=justify>In addition, during the year we
recorded $7,594,000 (2009 - $618,000; 2008 - $nil) of depletion on producing
properties which was allocated to inventory.</P>
<P align=right>21</P>
<HR style="PAGE-BREAK-AFTER: always" align=center color=black SIZE=5
width="100%" noShade>
<!--$$/page=--><A name=page_29></A><BR>
<TABLE
style="BORDER-COLOR: black; BORDER-COLLAPSE: collapse; FONT-SIZE: 10pt; "
border=0 cellSpacing=0 cellPadding=0 width="100%">

  <TR vAlign=top>
    <TD align=left><B>Silver Standard Resources Inc.</B> </TD></TR>
  <TR vAlign=top>
    <TD align=left>Notes to Consolidated Financial Statements </TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>December 31, 2010,
      2009 and 2008 </TD></TR>
  <TR vAlign=top>
    <TD align=left>(tabular amounts expressed in thousands of United States
      dollars unless otherwise stated) </TD></TR></TABLE><BR>
<TABLE
style="BORDER-COLOR: black; BORDER-COLLAPSE: collapse; FONT-SIZE: 10pt; "
border=0 cellSpacing=0 cellPadding=0 width="100%">

  <TR vAlign=top>
    <TD align=left><B>10</B> </TD>
    <TD width="95%" align=left><B>MINERAL PROPERTIES AND PROPERTY, PLANT AND
      EQUIPMENT (Cont&#146;d)</B> </TD></TR></TABLE>
<P style="MARGIN-LEFT: 5%" align=justify>At December 31, mineral property costs
are as follows:</P>
<TABLE
style="BORDER-COLOR: black; BORDER-COLLAPSE: collapse; FONT-SIZE: 8pt; "
border=0 cellSpacing=0 cellPadding=0 width="100%">

  <TR vAlign=top>
    <TD width="5%" >&nbsp;</TD>
    <TD align=left valign="bottom">&nbsp; </TD>
    <TD width="1%"
    align=left valign="bottom" style="BORDER-BOTTOM: #000000 1px solid">&nbsp;</TD>
    <TD colSpan=10
    align=right valign="bottom" style="BORDER-BOTTOM: #000000 1px solid"><B>December 31, 2010</B> </TD>
    <TD width="2%"
    align=left valign="bottom" style="BORDER-BOTTOM: #000000 1px solid">&nbsp;</TD>
    <TD width="1%"
    align=left valign="bottom" style="BORDER-BOTTOM: #000000 1px solid">&nbsp;</TD>
    <TD width="10%"
      align=right valign="bottom" style="BORDER-BOTTOM: #000000 1px solid"><B>December 31, 2009</B> </TD>
    <TD width="2%"
    align=left valign="bottom" style="BORDER-BOTTOM: #000000 1px solid">&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD width="5%">&nbsp;</TD>
    <TD align=left valign="bottom">&nbsp; </TD>
    <TD width="1%" align=left valign="bottom">&nbsp;</TD>
    <TD width="10%" align=right valign="bottom"><B>Acquisition </B></TD>
    <TD width="2%" align=left valign="bottom">&nbsp;</TD>
    <TD width="1%" align=left valign="bottom">&nbsp;</TD>
    <TD width="10%" align=right valign="bottom"><STRONG>Exploration </STRONG></TD>
    <TD width="2%" align=left valign="bottom">&nbsp;</TD>
    <TD width="1%" align=left valign="bottom">&nbsp;</TD>
    <TD width="10%" align=right valign="bottom"><STRONG>Future
tax</STRONG></TD>
    <TD width="2%" align=left valign="bottom">&nbsp;</TD>
    <TD width="1%" align=left valign="bottom">&nbsp;</TD>
    <TD width="10%" align=right valign="bottom"><B>Total</B> </TD>
    <TD width="2%" align=left valign="bottom">&nbsp;</TD>
    <TD width="1%" align=left valign="bottom">&nbsp;</TD>
    <TD width="10%" align=right valign="bottom"><B>Total</B> </TD>
    <TD width="2%" align=left valign="bottom">&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD>&nbsp;</TD>
    <TD align=left valign="bottom">&nbsp; </TD>
    <TD align=left valign="bottom">&nbsp;</TD>
    <TD align=right valign="bottom"><B>costs</B> </TD>
    <TD align=left valign="bottom">&nbsp;</TD>
    <TD align=left valign="bottom">&nbsp;</TD>
    <TD align=right valign="bottom"><B>costs</B> </TD>
    <TD align=left valign="bottom">&nbsp;</TD>
    <TD align=left valign="bottom">&nbsp;</TD>
    <TD align=right valign="bottom"><B>effects</B> </TD>
    <TD align=left valign="bottom">&nbsp;</TD>
    <TD align=left valign="bottom">&nbsp;</TD>
    <TD align=left valign="bottom">&nbsp; </TD>
    <TD align=left valign="bottom">&nbsp;</TD>
    <TD align=left valign="bottom">&nbsp;</TD>
    <TD align=left valign="bottom">&nbsp; </TD>
    <TD align=left valign="bottom">&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD>&nbsp;</TD>
    <TD align=left valign="bottom"><B>Exploration projects</B> </TD>
    <TD
    align=left valign="bottom" style="BORDER-BOTTOM: #000000 1px solid"><B></B></TD>
    <TD
    align=right valign="bottom" style="BORDER-BOTTOM: #000000 1px solid"><STRONG>$</STRONG>&nbsp;</TD>
    <TD
    align=left valign="bottom" style="BORDER-BOTTOM: #000000 1px solid">&nbsp;</TD>
    <TD
    align=left valign="bottom" style="BORDER-BOTTOM: #000000 1px solid"><B></B></TD>
    <TD
    align=right valign="bottom" style="BORDER-BOTTOM: #000000 1px solid"><STRONG>$</STRONG>&nbsp;</TD>
    <TD
    align=left valign="bottom" style="BORDER-BOTTOM: #000000 1px solid">&nbsp;</TD>
    <TD
    align=left valign="bottom" style="BORDER-BOTTOM: #000000 1px solid"><B></B></TD>
    <TD
    align=right valign="bottom" style="BORDER-BOTTOM: #000000 1px solid"><STRONG>$</STRONG>&nbsp;</TD>
    <TD
    align=left valign="bottom" style="BORDER-BOTTOM: #000000 1px solid">&nbsp;</TD>
    <TD
    align=left valign="bottom" style="BORDER-BOTTOM: #000000 1px solid"><B></B></TD>
    <TD
    align=right valign="bottom" style="BORDER-BOTTOM: #000000 1px solid"><STRONG>$</STRONG>&nbsp;</TD>
    <TD
    align=left valign="bottom" style="BORDER-BOTTOM: #000000 1px solid">&nbsp;</TD>
    <TD
    align=left valign="bottom" style="BORDER-BOTTOM: #000000 1px solid"><B></B></TD>
    <TD
    align=right valign="bottom" style="BORDER-BOTTOM: #000000 1px solid"><STRONG>$</STRONG>&nbsp;</TD>
    <TD
    align=left valign="bottom" style="BORDER-BOTTOM: #000000 1px solid">&nbsp;</TD>
  </TR>
  <TR>
    <TD>&nbsp;</TD>
    <TD valign="bottom">&nbsp; </TD>
    <TD valign="bottom">&nbsp;</TD>
    <TD valign="bottom">&nbsp; </TD>
    <TD valign="bottom">&nbsp;</TD>
    <TD valign="bottom">&nbsp;</TD>
    <TD valign="bottom">&nbsp; </TD>
    <TD valign="bottom">&nbsp;</TD>
    <TD valign="bottom">&nbsp;</TD>
    <TD valign="bottom">&nbsp; </TD>
    <TD valign="bottom">&nbsp;</TD>
    <TD valign="bottom">&nbsp;</TD>
    <TD valign="bottom">&nbsp; </TD>
    <TD valign="bottom">&nbsp;</TD>
    <TD valign="bottom">&nbsp;</TD>
    <TD valign="bottom">&nbsp; </TD>
    <TD valign="bottom">&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD>&nbsp;</TD>
    <TD align=left valign="bottom" bgColor=#e6efff>Diablillos, Argentina </TD>
    <TD align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD align=right valign="bottom" bgColor=#e6efff>4,516 </TD>
    <TD align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD align=right valign="bottom" bgColor=#e6efff>14,250 </TD>
    <TD align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD align=right valign="bottom" bgColor=#e6efff>- </TD>
    <TD align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD align=right valign="bottom" bgColor=#e6efff><B>18,766</B> </TD>
    <TD align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD align=right valign="bottom" bgColor=#e6efff>16,532 </TD>
    <TD align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD>&nbsp;</TD>
    <TD align=left valign="bottom">Bowdens, Australia </TD>
    <TD align=left valign="bottom">&nbsp;</TD>
    <TD align=right valign="bottom">8,902 </TD>
    <TD align=left valign="bottom">&nbsp;</TD>
    <TD align=left valign="bottom">&nbsp;</TD>
    <TD align=right valign="bottom">7,726 </TD>
    <TD align=left valign="bottom">&nbsp;</TD>
    <TD align=left valign="bottom">&nbsp;</TD>
    <TD align=right valign="bottom">3,999 </TD>
    <TD align=left valign="bottom">&nbsp;</TD>
    <TD align=left valign="bottom">&nbsp;</TD>
    <TD align=right valign="bottom"><B>20,627</B> </TD>
    <TD align=left valign="bottom">&nbsp;</TD>
    <TD align=left valign="bottom">&nbsp;</TD>
    <TD align=right valign="bottom">19,840 </TD>
    <TD align=left valign="bottom">&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD>&nbsp;</TD>
    <TD align=left valign="bottom" bgColor=#e6efff>Snowfield, Canada <SUP>b(i)</SUP> </TD>
    <TD align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD align=right valign="bottom" bgColor=#e6efff>- </TD>
    <TD align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD align=right valign="bottom" bgColor=#e6efff>- </TD>
    <TD align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD align=right valign="bottom" bgColor=#e6efff>- </TD>
    <TD align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD align=right valign="bottom" bgColor=#e6efff><B>-</B> </TD>
    <TD align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD align=right valign="bottom" bgColor=#e6efff>18,062 </TD>
    <TD align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD>&nbsp;</TD>
    <TD align=left valign="bottom">BruceJack, Canada <SUP>b(i)</SUP> </TD>
    <TD align=left valign="bottom">&nbsp;</TD>
    <TD align=right valign="bottom">- </TD>
    <TD align=left valign="bottom">&nbsp;</TD>
    <TD align=left valign="bottom">&nbsp;</TD>
    <TD align=right valign="bottom">- </TD>
    <TD align=left valign="bottom">&nbsp;</TD>
    <TD align=left valign="bottom">&nbsp;</TD>
    <TD align=right valign="bottom">- </TD>
    <TD align=left valign="bottom">&nbsp;</TD>
    <TD align=left valign="bottom">&nbsp;</TD>
    <TD align=right valign="bottom"><B>-</B> </TD>
    <TD align=left valign="bottom">&nbsp;</TD>
    <TD align=left valign="bottom">&nbsp;</TD>
    <TD align=right valign="bottom">2,979 </TD>
    <TD align=left valign="bottom">&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD>&nbsp;</TD>
    <TD align=left valign="bottom" bgColor=#e6efff>Sunrise, Canada </TD>
    <TD align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD align=right valign="bottom" bgColor=#e6efff>1,008 </TD>
    <TD align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD align=right valign="bottom" bgColor=#e6efff>66 </TD>
    <TD align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD align=right valign="bottom" bgColor=#e6efff>- </TD>
    <TD align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD align=right valign="bottom" bgColor=#e6efff><B>1,074</B> </TD>
    <TD align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD align=right valign="bottom" bgColor=#e6efff>1,072 </TD>
    <TD align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD>&nbsp;</TD>
    <TD align=left valign="bottom">Challacollo, Chile </TD>
    <TD align=left valign="bottom">&nbsp;</TD>
    <TD align=right valign="bottom">2,659 </TD>
    <TD align=left valign="bottom">&nbsp;</TD>
    <TD align=left valign="bottom">&nbsp;</TD>
    <TD align=right valign="bottom">5,101 </TD>
    <TD align=left valign="bottom">&nbsp;</TD>
    <TD align=left valign="bottom">&nbsp;</TD>
    <TD align=right valign="bottom">- </TD>
    <TD align=left valign="bottom">&nbsp;</TD>
    <TD align=left valign="bottom">&nbsp;</TD>
    <TD align=right valign="bottom"><B>7,760</B> </TD>
    <TD align=left valign="bottom">&nbsp;</TD>
    <TD align=left valign="bottom">&nbsp;</TD>
    <TD align=right valign="bottom">7,049 </TD>
    <TD align=left valign="bottom">&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD>&nbsp;</TD>
    <TD align=left valign="bottom" bgColor=#e6efff>Pitarrilla, Mexico </TD>
    <TD align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD align=right valign="bottom" bgColor=#e6efff>17,745 </TD>
    <TD align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD align=right valign="bottom" bgColor=#e6efff>60,090 </TD>
    <TD align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD align=right valign="bottom" bgColor=#e6efff>5,125 </TD>
    <TD align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD align=right valign="bottom" bgColor=#e6efff><B>82,960</B> </TD>
    <TD align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD align=right valign="bottom" bgColor=#e6efff>62,739 </TD>
    <TD align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD>&nbsp;</TD>
    <TD align=left valign="bottom">San Marcial, Mexico </TD>
    <TD align=left valign="bottom">&nbsp;</TD>
    <TD align=right valign="bottom">633 </TD>
    <TD align=left valign="bottom">&nbsp;</TD>
    <TD align=left valign="bottom">&nbsp;</TD>
    <TD align=right valign="bottom">464 </TD>
    <TD align=left valign="bottom">&nbsp;</TD>
    <TD align=left valign="bottom">&nbsp;</TD>
    <TD align=right valign="bottom">124 </TD>
    <TD align=left valign="bottom">&nbsp;</TD>
    <TD align=left valign="bottom">&nbsp;</TD>
    <TD align=right valign="bottom"><B>1,221</B> </TD>
    <TD align=left valign="bottom">&nbsp;</TD>
    <TD align=left valign="bottom">&nbsp;</TD>
    <TD align=right valign="bottom">1,608 </TD>
    <TD align=left valign="bottom">&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD>&nbsp;</TD>
    <TD align=left valign="bottom" bgColor=#e6efff>Veta Colorada, Mexico </TD>
    <TD align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD align=right valign="bottom" bgColor=#e6efff>3,688 </TD>
    <TD align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD align=right valign="bottom" bgColor=#e6efff>1,155 </TD>
    <TD align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD align=right valign="bottom" bgColor=#e6efff>285 </TD>
    <TD align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD align=right valign="bottom" bgColor=#e6efff><B>5,128</B> </TD>
    <TD align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD align=right valign="bottom" bgColor=#e6efff>4,690 </TD>
    <TD align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD>&nbsp;</TD>
    <TD align=left valign="bottom">Nazas, Mexico </TD>
    <TD align=left valign="bottom">&nbsp;</TD>
    <TD align=right valign="bottom">504 </TD>
    <TD align=left valign="bottom">&nbsp;</TD>
    <TD align=left valign="bottom">&nbsp;</TD>
    <TD align=right valign="bottom">919 </TD>
    <TD align=left valign="bottom">&nbsp;</TD>
    <TD align=left valign="bottom">&nbsp;</TD>
    <TD align=right valign="bottom">- </TD>
    <TD align=left valign="bottom">&nbsp;</TD>
    <TD align=left valign="bottom">&nbsp;</TD>
    <TD align=right valign="bottom"><B>1,423</B> </TD>
    <TD align=left valign="bottom">&nbsp;</TD>
    <TD align=left valign="bottom">&nbsp;</TD>
    <TD align=right valign="bottom">- </TD>
    <TD align=left valign="bottom">&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD>&nbsp;</TD>
    <TD align=left valign="bottom" bgColor=#e6efff>San Agustin, Mexico </TD>
    <TD align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD align=right valign="bottom" bgColor=#e6efff>10 </TD>
    <TD align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD align=right valign="bottom" bgColor=#e6efff>1,644 </TD>
    <TD align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD align=right valign="bottom" bgColor=#e6efff>129 </TD>
    <TD align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD align=right valign="bottom" bgColor=#e6efff><B>1,783</B> </TD>
    <TD align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD align=right valign="bottom" bgColor=#e6efff>597 </TD>
    <TD align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD>&nbsp;</TD>
    <TD align=left valign="bottom">Berenguela, Peru </TD>
    <TD align=left valign="bottom">&nbsp;</TD>
    <TD align=right valign="bottom">10,618 </TD>
    <TD align=left valign="bottom">&nbsp;</TD>
    <TD align=left valign="bottom">&nbsp;</TD>
    <TD align=right valign="bottom">5,862 </TD>
    <TD align=left valign="bottom">&nbsp;</TD>
    <TD align=left valign="bottom">&nbsp;</TD>
    <TD align=right valign="bottom">6,939 </TD>
    <TD align=left valign="bottom">&nbsp;</TD>
    <TD align=left valign="bottom">&nbsp;</TD>
    <TD align=right valign="bottom"><B>23,419</B> </TD>
    <TD align=left valign="bottom">&nbsp;</TD>
    <TD align=left valign="bottom">&nbsp;</TD>
    <TD align=right valign="bottom">21,109 </TD>
    <TD align=left valign="bottom">&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD>&nbsp;</TD>
    <TD align=left valign="bottom" bgColor=#e6efff>San Luis, Peru <SUP>a</SUP> </TD>
    <TD align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD align=right valign="bottom" bgColor=#e6efff>559 </TD>
    <TD align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD align=right valign="bottom" bgColor=#e6efff>26,121 </TD>
    <TD align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD align=right valign="bottom" bgColor=#e6efff>2,160 </TD>
    <TD align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD align=right valign="bottom" bgColor=#e6efff><B>28,840</B> </TD>
    <TD align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD align=right valign="bottom" bgColor=#e6efff>22,090 </TD>
    <TD align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD>&nbsp;</TD>
    <TD align=left valign="bottom">Candelaria, United States </TD>
    <TD align=left valign="bottom">&nbsp;</TD>
    <TD align=right valign="bottom">2,434 </TD>
    <TD align=left valign="bottom">&nbsp;</TD>
    <TD align=left valign="bottom">&nbsp;</TD>
    <TD align=right valign="bottom">3,588 </TD>
    <TD align=left valign="bottom">&nbsp;</TD>
    <TD align=left valign="bottom">&nbsp;</TD>
    <TD align=right valign="bottom">348 </TD>
    <TD align=left valign="bottom">&nbsp;</TD>
    <TD align=left valign="bottom">&nbsp;</TD>
    <TD align=right valign="bottom"><B>6,370</B> </TD>
    <TD align=left valign="bottom">&nbsp;</TD>
    <TD align=left valign="bottom">&nbsp;</TD>
    <TD align=right valign="bottom">6,061 </TD>
    <TD align=left valign="bottom">&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD>&nbsp;</TD>
    <TD align=left valign="bottom" bgColor=#e6efff>Maverick Springs, United States </TD>
    <TD align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD align=right valign="bottom" bgColor=#e6efff>565 </TD>
    <TD align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD align=right valign="bottom" bgColor=#e6efff>2,063 </TD>
    <TD align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD align=right valign="bottom" bgColor=#e6efff>41 </TD>
    <TD align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD align=right valign="bottom" bgColor=#e6efff><B>2,669</B> </TD>
    <TD align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD align=right valign="bottom" bgColor=#e6efff>2,581 </TD>
    <TD align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD>&nbsp;</TD>
    <TD align=left valign="bottom">Other exploration projects </TD>
    <TD
    align=left valign="bottom" style="BORDER-BOTTOM: #000000 1px solid">&nbsp;</TD>
    <TD align=right valign="bottom" style="BORDER-BOTTOM: #000000 1px solid">1,012    </TD>
    <TD
    align=left valign="bottom" style="BORDER-BOTTOM: #000000 1px solid">&nbsp;</TD>
    <TD
    align=left valign="bottom" style="BORDER-BOTTOM: #000000 1px solid">&nbsp;</TD>
    <TD align=right valign="bottom" style="BORDER-BOTTOM: #000000 1px solid">2,505    </TD>
    <TD
    align=left valign="bottom" style="BORDER-BOTTOM: #000000 1px solid">&nbsp;</TD>
    <TD
    align=left valign="bottom" style="BORDER-BOTTOM: #000000 1px solid">&nbsp;</TD>
    <TD align=right valign="bottom" style="BORDER-BOTTOM: #000000 1px solid">- </TD>
    <TD
    align=left valign="bottom" style="BORDER-BOTTOM: #000000 1px solid">&nbsp;</TD>
    <TD
    align=left valign="bottom" style="BORDER-BOTTOM: #000000 1px solid">&nbsp;</TD>
    <TD
      align=right valign="bottom" style="BORDER-BOTTOM: #000000 1px solid"><B>3,517</B> </TD>
    <TD
    align=left valign="bottom" style="BORDER-BOTTOM: #000000 1px solid">&nbsp;</TD>
    <TD
    align=left valign="bottom" style="BORDER-BOTTOM: #000000 1px solid">&nbsp;</TD>
    <TD align=right valign="bottom" style="BORDER-BOTTOM: #000000 1px solid">4,038    </TD>
    <TD
    align=left valign="bottom" style="BORDER-BOTTOM: #000000 1px solid">&nbsp;</TD>
  </TR>
  <TR>
    <TD>&nbsp;</TD>
    <TD valign="bottom" bgColor=#e6efff>&nbsp; </TD>
    <TD valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD valign="bottom" bgColor=#e6efff>&nbsp; </TD>
    <TD valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD valign="bottom" bgColor=#e6efff>&nbsp; </TD>
    <TD valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD valign="bottom" bgColor=#e6efff>&nbsp; </TD>
    <TD valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD valign="bottom" bgColor=#e6efff>&nbsp; </TD>
    <TD valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD valign="bottom" bgColor=#e6efff>&nbsp; </TD>
    <TD valign="bottom" bgColor=#e6efff>&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD>&nbsp;</TD>
    <TD align=left valign="bottom">&nbsp; </TD>
    <TD
    align=left valign="bottom" style="BORDER-BOTTOM: #000000 2px solid">&nbsp;</TD>
    <TD align=right valign="bottom" style="BORDER-BOTTOM: #000000 2px solid">54,853    </TD>
    <TD
    align=left valign="bottom" style="BORDER-BOTTOM: #000000 2px solid">&nbsp;</TD>
    <TD
    align=left valign="bottom" style="BORDER-BOTTOM: #000000 2px solid">&nbsp;</TD>
    <TD
      align=right valign="bottom" style="BORDER-BOTTOM: #000000 2px solid">131,554 </TD>
    <TD
    align=left valign="bottom" style="BORDER-BOTTOM: #000000 2px solid">&nbsp;</TD>
    <TD
    align=left valign="bottom" style="BORDER-BOTTOM: #000000 2px solid">&nbsp;</TD>
    <TD align=right valign="bottom" style="BORDER-BOTTOM: #000000 2px solid">19,150    </TD>
    <TD
    align=left valign="bottom" style="BORDER-BOTTOM: #000000 2px solid">&nbsp;</TD>
    <TD
    align=left valign="bottom" style="BORDER-BOTTOM: #000000 2px solid">&nbsp;</TD>
    <TD
      align=right valign="bottom" style="BORDER-BOTTOM: #000000 2px solid"><B>205,557</B> </TD>
    <TD
    align=left valign="bottom" style="BORDER-BOTTOM: #000000 2px solid">&nbsp;</TD>
    <TD
    align=left valign="bottom" style="BORDER-BOTTOM: #000000 2px solid">&nbsp;</TD>
    <TD
      align=right valign="bottom" style="BORDER-BOTTOM: #000000 2px solid">191,047 </TD>
    <TD
    align=left valign="bottom" style="BORDER-BOTTOM: #000000 2px solid">&nbsp;</TD>
  </TR>
  <TR>
    <TD>&nbsp;</TD>
    <TD valign="bottom" bgColor=#e6efff>&nbsp; </TD>
    <TD valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD valign="bottom" bgColor=#e6efff>&nbsp; </TD>
    <TD valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD valign="bottom" bgColor=#e6efff>&nbsp; </TD>
    <TD valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD valign="bottom" bgColor=#e6efff>&nbsp; </TD>
    <TD valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD valign="bottom" bgColor=#e6efff>&nbsp; </TD>
    <TD valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD valign="bottom" bgColor=#e6efff>&nbsp; </TD>
    <TD valign="bottom" bgColor=#e6efff>&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD>&nbsp;</TD>
    <TD align=left valign="bottom"><B>Exploration project held for sale</B> </TD>
    <TD align=left valign="bottom">&nbsp;</TD>
    <TD align=left valign="bottom">&nbsp; </TD>
    <TD align=left valign="bottom">&nbsp;</TD>
    <TD align=left valign="bottom">&nbsp;</TD>
    <TD align=left valign="bottom">&nbsp; </TD>
    <TD align=left valign="bottom">&nbsp;</TD>
    <TD align=left valign="bottom">&nbsp;</TD>
    <TD align=left valign="bottom">&nbsp; </TD>
    <TD align=left valign="bottom">&nbsp;</TD>
    <TD align=left valign="bottom">&nbsp;</TD>
    <TD align=left valign="bottom">&nbsp; </TD>
    <TD align=left valign="bottom">&nbsp;</TD>
    <TD align=left valign="bottom">&nbsp;</TD>
    <TD align=left valign="bottom">&nbsp; </TD>
    <TD align=left valign="bottom">&nbsp;</TD>
  </TR>
  <TR>
    <TD>&nbsp;</TD>
    <TD valign="bottom" bgColor=#e6efff>&nbsp; </TD>
    <TD valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD valign="bottom" bgColor=#e6efff>&nbsp; </TD>
    <TD valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD valign="bottom" bgColor=#e6efff>&nbsp; </TD>
    <TD valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD valign="bottom" bgColor=#e6efff>&nbsp; </TD>
    <TD valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD valign="bottom" bgColor=#e6efff>&nbsp; </TD>
    <TD valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD valign="bottom" bgColor=#e6efff>&nbsp; </TD>
    <TD valign="bottom" bgColor=#e6efff>&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD>&nbsp;</TD>
    <TD align=left valign="bottom">Silvertip, Canada <SUP>b(ii)</SUP> </TD>
    <TD
    align=left valign="bottom" style="BORDER-BOTTOM: #000000 2px solid">&nbsp;</TD>
    <TD align=right valign="bottom" style="BORDER-BOTTOM: #000000 2px solid">- </TD>
    <TD
    align=left valign="bottom" style="BORDER-BOTTOM: #000000 2px solid">&nbsp;</TD>
    <TD
    align=left valign="bottom" style="BORDER-BOTTOM: #000000 2px solid">&nbsp;</TD>
    <TD align=right valign="bottom" style="BORDER-BOTTOM: #000000 2px solid">- </TD>
    <TD
    align=left valign="bottom" style="BORDER-BOTTOM: #000000 2px solid">&nbsp;</TD>
    <TD
    align=left valign="bottom" style="BORDER-BOTTOM: #000000 2px solid">&nbsp;</TD>
    <TD align=right valign="bottom" style="BORDER-BOTTOM: #000000 2px solid">- </TD>
    <TD
    align=left valign="bottom" style="BORDER-BOTTOM: #000000 2px solid">&nbsp;</TD>
    <TD
    align=left valign="bottom" style="BORDER-BOTTOM: #000000 2px solid">&nbsp;</TD>
    <TD
      align=right valign="bottom" style="BORDER-BOTTOM: #000000 2px solid"><B>-</B> </TD>
    <TD
    align=left valign="bottom" style="BORDER-BOTTOM: #000000 2px solid">&nbsp;</TD>
    <TD
    align=left valign="bottom" style="BORDER-BOTTOM: #000000 2px solid">&nbsp;</TD>
    <TD align=right valign="bottom" style="BORDER-BOTTOM: #000000 2px solid">1,859    </TD>
    <TD
    align=left valign="bottom" style="BORDER-BOTTOM: #000000 2px solid">&nbsp;</TD>
  </TR></TABLE><BR>
<TABLE
style="BORDER-COLOR: black; BORDER-COLLAPSE: collapse; FONT-SIZE: 10pt; "
border=0 cellSpacing=0 cellPadding=0 width="100%" BCLLIST>

  <TR>
    <TD width="5%" >&nbsp;</TD>
    <TD vAlign=top width="5%">a) </TD>
    <TD>
      <P align=justify>The non-controlling interest results from the
      consolidation of the Reliant Ventures S.A.C in 2007 for the San Luis
      property in Peru, after we took control of the project.</P></TD></TR>
  <TR>
    <TD width="5%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
  <TR>
    <TD width="5%">&nbsp;</TD>
    <TD vAlign=top width="5%">b) </TD>
    <TD>
      <P align=justify>Disposition of mineral
properties</P></TD></TR></TABLE><BR>
<TABLE
style="BORDER-COLOR: black; BORDER-COLLAPSE: collapse; FONT-SIZE: 10pt; "
border=0 cellSpacing=0 cellPadding=0 width="100%" BCLLIST>

  <TR>
    <TD width="15%" >&nbsp;</TD>
    <TD vAlign=top width="5%">i) </TD>
    <TD>
      <P align=justify>On December 21, 2010 we completed the sale of our 100%
      interest in the Snowfield and Brucejack properties located in British
      Columbia, Canada, to Pretium. Pretium became a publically traded company
      on the Toronto Stock Exchange (&#147;TSX&#148;) following the closing of its initial
      public offering (&#147;IPO&#148;) on December 21, 2010. Under the terms of the
      transaction, we received a total of 32,537,833 common shares of Pretium,
      representing 41.27% of its issued and outstanding common shares with a
      fair value of $191,869,000 (C$195,227,000) based on the IPO price of
      C$6.00 per share. We also received cash proceeds of $211,322,000
      (C$215,020,000) before underwriters&#146; fees of $12,427,000 (C$12,645,000)
      and a non-interest bearing promissory note in the principal amount of
      $39,069,000 (C$39,753,000) which was to be automatically converted into
      common shares of Pretium at C$6.00 per share 40 days after closing to the
      extent not repaid by Pretium. Total consideration was $442,260,000
      (C$450,000,000).</P></TD></TR></TABLE>
<P align=right>22</P>
<HR style="PAGE-BREAK-AFTER: always" align=center color=black SIZE=5
width="100%" noShade>
<!--$$/page=--><A name=page_30></A><BR>
<TABLE
style="BORDER-COLOR: black; BORDER-COLLAPSE: collapse; FONT-SIZE: 10pt; "
border=0 cellSpacing=0 cellPadding=0 width="100%">

  <TR vAlign=top>
    <TD align=left><B>Silver Standard Resources Inc.</B> </TD></TR>
  <TR vAlign=top>
    <TD align=left>Notes to Consolidated Financial Statements </TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>December 31, 2010,
      2009 and 2008 </TD></TR>
  <TR vAlign=top>
    <TD align=left>(tabular amounts expressed in thousands of United States
      dollars unless otherwise stated) </TD></TR></TABLE><BR>
<TABLE
style="BORDER-COLOR: black; BORDER-COLLAPSE: collapse; FONT-SIZE: 10pt; "
border=0 cellSpacing=0 cellPadding=0 width="100%">

  <TR vAlign=top>
    <TD align=left ><B>10</B> </TD>
    <TD width="95%" align=left><B>MINERAL PROPERTIES AND PROPERTY, PLANT AND
      EQUIPMENT (Cont&#146;d)</B> </TD></TR></TABLE><BR>
<TABLE
style="BORDER-COLOR: black; BORDER-COLLAPSE: collapse; FONT-SIZE: 10pt; "
border=0 cellSpacing=0 cellPadding=0 width="100%" BCLLIST>

  <TR>
    <TD width="15%" >&nbsp;</TD>
    <TD width="5%"></TD>
    <TD>
      <P align=justify>On January 6, 2011 the underwriters exercised in part the
      over-allotment option to them in connection with the IPO. Pursuant to the
      terms of the promissory note, we received $16,673,000 (C$16,965,000),
      after underwriters&#146; fees, from partial repayment of it. On January 31,
      2011 the balance of the promissory note was automatically converted into
      3,625,500 common shares of Pretium in accordance with its terms. Following
      this conversion our ownership interest in Pretium was 42.31%.</P></TD></TR>
  <TR>
    <TD width="15%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
  <TR>
    <TD width="15%">&nbsp;</TD>
    <TD width="5%"></TD>
    <TD>
      <P align=justify>In the year ended December 31, 2010 we recognised a gain
      on disposal of the mineral properties from this transaction of
      $388,761,000 net of selling costs of $5,922,000 (after tax gain
      $360,612,000). We are entitled to appoint two of Pretium&#146;s five board
      members and have the right to maintain our ownership interest. Our
      interest in Pretium has been accounted for using the equity method (note
      9).</P></TD></TR>
  <TR>
    <TD width="15%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
  <TR>
    <TD width="15%">&nbsp;</TD>
    <TD vAlign=top width="5%">ii) </TD>
    <TD>
      <P align=justify>In February 2010 we completed the sale of our 100%
      interest in the Silvertip property located in British Columbia, Canada to
      Silvercorp Metals Inc. (&#147;Silvercorp&#148;). Under the terms of the agreement,
      Silvercorp paid total consideration of $14,957,000, comprising cash of
      $7,125,000 and 1,200,000 common shares of Silvercorp with a fair value of
      $7,832,000, for an after tax gain of $13,073,000. This asset was
      classified as held for sale at December 31, 2009.</P></TD></TR>
  <TR>
    <TD width="15%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
  <TR>
    <TD width="15%">&nbsp;</TD>
    <TD vAlign=top width="5%">iii) </TD>
    <TD>
      <P align=justify>In June 2009, we sold our remaining 25% interest in the
      San Juan property located in Durango State, Mexico to Orko Silver Corp.
      (&#147;Orko&#148;). 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.</P></TD></TR></TABLE><BR>
<TABLE
style="BORDER-COLOR: black; BORDER-COLLAPSE: collapse; FONT-SIZE: 10pt; "
border=0 cellSpacing=0 cellPadding=0 width="100%" BCLLIST>

  <TR>
    <TD width="5%" >&nbsp;</TD>
    <TD vAlign=top width="5%">c) </TD>
    <TD>
      <P align=justify>Write-down of mineral properties</P></TD></TR>
  <TR>
    <TD width="5%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
  <TR>
    <TD width="5%">&nbsp;</TD>
    <TD width="5%"></TD>
    <TD>
      <P align=justify>During the year ended December 31, 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 loss for the year (note
  18).</P></TD></TR></TABLE><BR>
<TABLE
style="BORDER-COLOR: black; BORDER-COLLAPSE: collapse; FONT-SIZE: 10pt; "
border=0 cellSpacing=0 cellPadding=0 width="100%" BCLLIST>

  <TR>
    <TD vAlign=top width="5%"><B>11</B> </TD>
    <TD>
      <P align=justify><B>LONG-TERM CONVERTIBLE NOTES</B></P></TD></TR>
  <TR>
    <TD width="5%">&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
  <TR>
    <TD width="5%"></TD>
    <TD>
      <P align=justify>In February 2008, we sold $138,000,000 in senior
      unsecured convertible notes (&#147;Notes&#148;) 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. A portion of the Notes will be
      convertible into our common shares at a fixed conversion rate, subject to
      certain anti- dilution adjustments, only in the following
  events:</P></TD></TR></TABLE><BR>
<TABLE
style="BORDER-COLOR: black; BORDER-COLLAPSE: collapse; FONT-SIZE: 10pt; "
border=0 cellSpacing=0 cellPadding=0 width="100%" BCLLIST>

  <TR>
    <TD width="10%" >&nbsp;</TD>
    <TD vAlign=top width="5%">a. </TD>
    <TD>
      <P align=justify>during specified consecutive trading periods, if the
      market price of our common shares exceeds 130% of the conversion price of
      the Notes,</P></TD></TR>
  <TR>
    <TD width="10%">&nbsp;</TD>
    <TD vAlign=top width="5%">b. </TD>
    <TD>
      <P align=justify>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,</P></TD></TR>
  <TR>
    <TD width="10%">&nbsp;</TD>
    <TD vAlign=top width="5%">c. </TD>
    <TD>
      <P align=justify>the Notes are called for redemption,</P></TD></TR>
  <TR>
    <TD width="10%">&nbsp;</TD>
    <TD vAlign=top width="5%">d. </TD>
    <TD>
      <P align=justify>upon the occurrence of specified corporate transactions,
      or</P></TD></TR>
  <TR>
    <TD width="10%">&nbsp;</TD>
    <TD vAlign=top width="5%">e. </TD>
    <TD>
      <P align=justify>during specified periods in early 2013 and
  2028.</P></TD></TR></TABLE>
<P align=right>23</P>
<HR style="PAGE-BREAK-AFTER: always" align=center color=black SIZE=5
width="100%" noShade>
<!--$$/page=--><A name=page_31></A><BR>
<TABLE
style="BORDER-COLOR: black; BORDER-COLLAPSE: collapse; FONT-SIZE: 10pt; "
border=0 cellSpacing=0 cellPadding=0 width="100%">

  <TR vAlign=top>
    <TD align=left><B>Silver Standard Resources Inc.</B> </TD></TR>
  <TR vAlign=top>
    <TD align=left>Notes to Consolidated Financial Statements </TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>December 31, 2010,
      2009 and 2008 </TD></TR>
  <TR vAlign=top>
    <TD align=left>(tabular amounts expressed in thousands of United States
      dollars unless otherwise stated) </TD></TR></TABLE><BR>
<TABLE
style="BORDER-COLOR: black; BORDER-COLLAPSE: collapse; FONT-SIZE: 10pt; "
border=0 cellSpacing=0 cellPadding=0 width="100%" BCLLIST>

  <TR>
    <TD vAlign=top width="5%"><B>11</B> </TD>
    <TD>
  <P align=justify><B>LONG-TERM CONVERTIBLE NOTES (Cont&#146;d)</B></P></TD></TR>
  <TR>
    <TD width="5%">&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
  <TR>
    <TD width="5%"></TD>
    <TD>
      <P align=justify>On conversion, holders of the Notes will receive cash
      and, if applicable, common shares (or, at our election, in lieu of such
      common shares, cash or any combination of cash and common shares). In
      addition, if certain fundamental changes occur to us, holders of the Notes
      may be entitled to an increased conversion rate. The principal amount will
      be repaid in cash and any excess value will be settled at the Company&#146;s
      election in either cash or shares or a combination of the two. Any portion
      of the Notes not settled in cash will be convertible into the Company&#146;s
      common shares at an initial conversion rate of 23.0792 common shares per
      $1,000 principal amount of Notes converted, representing an initial
      conversion price of approximately $43.33 per common share.</P></TD></TR>
  <TR>
    <TD width="5%">&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
  <TR>
    <TD width="5%"></TD>
    <TD>
      <P align=justify>Holders of the Notes will have the right to require us to
      repurchase all or part of their Notes on March 1 of each of 2013, 2018 and
      2023, and upon certain fundamental corporate changes. The repurchase price
      will be equal to 100% of the principal amount of the Notes being
      converted, plus accrued and unpaid interest to, but excluding, the
      repurchase date. Subject to specified conditions, we shall pay the
      purchase price in cash. On and after March 5, 2013, we may redeem all or
      part of the Notes for cash at a redemption price equal to 100% of the
      principal amount of the Notes being redeemed, plus accrued and unpaid
      interest to, but excluding, the redemption date. All principal and
      interest payments are denominated in U.S. Dollars. The face value of the
      Notes was allocated between debt and equity components at initial
      recognition for accounting purposes. The fair value of the debt portion of
      $99,144,000 was estimated using a discounted cash flow model method. The
      fair value of the equity component of $38,856,000 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 loss for the year ended December 31, 2008 and
      $1,473,000 was charged to equity.</P></TD></TR>
  <TR>
    <TD width="5%">&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
  <TR>
    <TD width="5%"></TD>
    <TD>
      <P align=justify>At December 31, 2010, the carrying value of accrued
      interest related to the Notes was $2,076,000 (2009 - $2,076,000) and the
      long-term portion was $118,203,000 (2009 - $110,739,000).</P></TD></TR>
  <TR>
    <TD width="5%">&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
  <TR>
    <TD width="5%"></TD>
    <TD>
      <P align=justify>During 2010, accretion expense and interest expense
      related to the convertible notes was $7,464,000 (2009 - $6,693,000) and
      $6,210,000 (2009 - $6,210,000) respectively. In aggregate, interest and
      accretion expense of $nil (2009 &#150; $11,808,000) was capitalized to
      construction in progress and $13,674,000 (2009 - $1,095,000) was
      recognized as expense.</P></TD></TR>
  <TR>
    <TD width="5%">&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
  <TR>
    <TD vAlign=top width="5%"><B>12</B> </TD>
    <TD>
      <P align=justify><B>ASSET RETIREMENT OBLIGATIONS</B></P></TD></TR>
  <TR>
    <TD width="5%">&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
  <TR>
    <TD width="5%"></TD>
    <TD>
      <P align=justify>Our asset retirement obligations relate to legal
      obligations associated with site restoration and clean-up costs of our
      various mineral properties. The properties that comprise the majority of
      the obligations are the Duthie and Silver Standard Mine properties located
      in British Columbia, Canada, Pitarrilla and Veta Colorada properties
      located in Mexico, San Luis in Peru and the Pirquitas property located in
      Argentina.</P></TD></TR>
  <TR>
    <TD width="5%">&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
  <TR>
    <TD width="5%"></TD>
    <TD>
      <P align=justify>During the year ended December 31, 2010, we expensed
      $1,669,000 (2009 - $366,000; 2008 - $318,000) in on-going, non-legally
      required environmental and reclamation costs, accretion of asset
      retirement obligations and changes in the provision for asset retirement
obligations.</P></TD></TR></TABLE>
<P align=right>24</P>
<HR style="PAGE-BREAK-AFTER: always" align=center color=black SIZE=5
width="100%" noShade>
<!--$$/page=--><A name=page_32></A><BR>
<TABLE
style="BORDER-COLOR: black; BORDER-COLLAPSE: collapse; FONT-SIZE: 10pt; "
border=0 cellSpacing=0 cellPadding=0 width="100%">

  <TR vAlign=top>
    <TD align=left><B>Silver Standard Resources Inc.</B> </TD></TR>
  <TR vAlign=top>
    <TD align=left>Notes to Consolidated Financial Statements </TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>December 31, 2010,
      2009 and 2008 </TD></TR>
  <TR vAlign=top>
    <TD align=left>(tabular amounts expressed in thousands of United States
      dollars unless otherwise stated) </TD></TR></TABLE><BR>
<TABLE
style="BORDER-COLOR: black; BORDER-COLLAPSE: collapse; FONT-SIZE: 10pt; "
border=0 cellSpacing=0 cellPadding=0 width="100%" BCLLIST>

  <TR>
    <TD vAlign=top width="5%"><B>12</B> </TD>
    <TD>
      <P align=justify><B>ASSET RETIREMENT OBLIGATIONS (Cont&#146;d)</B></P></TD></TR>
  <TR>
    <TD width="5%">&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
  <TR>
    <TD width="5%"></TD>
    <TD>
      <P align=justify>A reconciliation of the provision for asset retirement
obligations at December 31 is as follows:</P></TD></TR></TABLE><BR>
<TABLE
style="BORDER-COLOR: black; BORDER-COLLAPSE: collapse; FONT-SIZE: 10pt; "
border=0 cellSpacing=0 cellPadding=0 width="100%">

  <TR vAlign=top>
    <TD width="5%"  >&nbsp;</TD>
    <TD align=left>&nbsp; </TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="12%" align=right><B>2010</B> </TD>
    <TD  width="2%" align=left>&nbsp;</TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="12%" align=right><B>2009</B> </TD>
    <TD  width="2%" align=left>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD width="5%" >&nbsp;</TD>
    <TD align=left>&nbsp; </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="1%"
    align=left><B></B></TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="12%"
      align=right><STRONG>$</STRONG>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="2%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="1%"
    align=left><B></B></TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="12%"
      align=right><STRONG>$</STRONG>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="2%"
    align=left>&nbsp;</TD></TR>
  <TR>
    <TD width="5%" >&nbsp;</TD>
    <TD>&nbsp; </TD>
    <TD  width="1%">&nbsp;</TD>
    <TD width="12%">&nbsp; </TD>
    <TD  width="2%">&nbsp;</TD>
    <TD  width="1%">&nbsp;</TD>
    <TD width="12%">&nbsp; </TD>
    <TD  width="2%">&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD width="5%" >&nbsp;</TD>
    <TD bgColor=#e6efff align=left>Balance, beginning of year </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff
    width="1%" align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff width="12%"
    align=right><B>11,491</B> </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff
    width="2%" align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff
    width="1%" align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff width="12%"
    align=right>3,463 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff
    width="2%" align=left>&nbsp;</TD></TR>
  <TR>
    <TD width="5%" >&nbsp;</TD>
    <TD>&nbsp; </TD>
    <TD  width="1%">&nbsp;</TD>
    <TD width="12%">&nbsp; </TD>
    <TD  width="2%">&nbsp;</TD>
    <TD  width="1%">&nbsp;</TD>
    <TD width="12%">&nbsp; </TD>
    <TD  width="2%">&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD width="5%" >&nbsp;</TD>
    <TD bgColor=#e6efff align=left>Liabilities settled during the year </TD>
    <TD bgColor=#e6efff  width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="12%" align=right><B>(223</B></TD>
    <TD bgColor=#e6efff  width="2%" align=left><B>)</B> </TD>
    <TD bgColor=#e6efff  width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="12%" align=right>(23</TD>
    <TD bgColor=#e6efff  width="2%" align=left>) </TD></TR>
  <TR vAlign=top>
    <TD width="5%" >&nbsp;</TD>
    <TD align=left>Accretion expense </TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="12%" align=right><B>1,646</B> </TD>
    <TD  width="2%" align=left>&nbsp;</TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="12%" align=right>300 </TD>
    <TD  width="2%" align=left>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD width="5%" >&nbsp;</TD>
    <TD bgColor=#e6efff align=left>Foreign exchange (loss) gain </TD>
    <TD bgColor=#e6efff  width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="12%" align=right><B>(84</B></TD>
    <TD bgColor=#e6efff  width="2%" align=left><B>)</B> </TD>
    <TD bgColor=#e6efff  width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="12%" align=right>426 </TD>
    <TD bgColor=#e6efff  width="2%" align=left>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD width="5%" >&nbsp;</TD>
    <TD align=left>Revisions and new estimated cash flows </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="1%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="12%"
      align=right><B>893</B> </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="2%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="1%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="12%" align=right>7,325
    </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="2%"
    align=left>&nbsp;</TD></TR>
  <TR>
    <TD width="5%" >&nbsp;</TD>
    <TD bgColor=#e6efff>&nbsp; </TD>
    <TD bgColor=#e6efff  width="1%">&nbsp;</TD>
    <TD bgColor=#e6efff width="12%">&nbsp; </TD>
    <TD bgColor=#e6efff  width="2%">&nbsp;</TD>
    <TD bgColor=#e6efff  width="1%">&nbsp;</TD>
    <TD bgColor=#e6efff width="12%">&nbsp; </TD>
    <TD bgColor=#e6efff  width="2%">&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD width="5%" >&nbsp;</TD>
    <TD align=left>Balance, end of year </TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid"  width="1%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" width="12%"
      align=right><B>13,723</B> </TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid"  width="2%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid"  width="1%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" width="12%"
      align=right>11,491 </TD>
  <TD style="BORDER-BOTTOM: #000000 2px solid"  width="2%"
    align=left>&nbsp;</TD>
  </TR>
  <TR>
    <TD width="5%" >&nbsp;</TD>
    <TD bgColor=#e6efff>&nbsp; </TD>
    <TD bgColor=#e6efff  width="1%">&nbsp;</TD>
    <TD bgColor=#e6efff width="12%">&nbsp; </TD>
    <TD bgColor=#e6efff  width="2%">&nbsp;</TD>
    <TD bgColor=#e6efff  width="1%">&nbsp;</TD>
    <TD bgColor=#e6efff width="12%">&nbsp; </TD>
    <TD bgColor=#e6efff  width="2%">&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD width="5%" >&nbsp;</TD>
    <TD align=left>Balance sheet presentation </TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="12%" align=left>&nbsp; </TD>
    <TD  width="2%" align=left>&nbsp;</TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="12%" align=left>&nbsp; </TD>
    <TD  width="2%" align=left>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD width="5%" >&nbsp;</TD>
    <TD bgColor=#e6efff align=left>&nbsp; &nbsp; &nbsp; &nbsp;Current portion
    </TD>
    <TD bgColor=#e6efff  width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="12%" align=right><B>955</B> </TD>
    <TD bgColor=#e6efff  width="2%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff  width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="12%" align=right>341 </TD>
    <TD bgColor=#e6efff  width="2%" align=left>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD width="5%" >&nbsp;</TD>
    <TD align=left>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Long-term portion </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="1%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="12%"
      align=right><B>12,768</B> </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="2%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="1%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="12%"
      align=right>11,150 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="2%"
    align=left>&nbsp;</TD></TR>
  <TR>
    <TD width="5%" >&nbsp;</TD>
    <TD bgColor=#e6efff>&nbsp; </TD>
    <TD bgColor=#e6efff  width="1%">&nbsp;</TD>
    <TD bgColor=#e6efff width="12%">&nbsp; </TD>
    <TD bgColor=#e6efff  width="2%">&nbsp;</TD>
    <TD bgColor=#e6efff  width="1%">&nbsp;</TD>
    <TD bgColor=#e6efff width="12%">&nbsp; </TD>
    <TD bgColor=#e6efff  width="2%">&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD width="5%" >&nbsp;</TD>
    <TD align=left>Balance, end of year </TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid"  width="1%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" width="12%"
      align=right><B>13,723</B> </TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid"  width="2%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid"  width="1%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" width="12%"
      align=right>11,491 </TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid"  width="2%"
    align=left>&nbsp;</TD></TR></TABLE>
<P style="MARGIN-LEFT: 5%" align=justify>The provision for asset retirement
obligations is based on the following key assumptions:</P>
<TABLE width="100%"
border=0 cellPadding=0 cellSpacing=0
style="BORDER-COLOR: black; BORDER-COLLAPSE: collapse; FONT-SIZE: 10pt; " BCLLIST>
  <TR>
    <TD width="10%"  >&nbsp;</TD>
    <TD vAlign=top width="4%">&#149;</TD>
    <TD width="86%"><P align=justify>Present value of total asset retirement obligations
  is $13,723,000 (2009 - $11,491,000), reflecting expenditures over
  approximately the next 13 years </P></TD>
  </TR>
  <TR>
    <TD width="10%" >&nbsp;</TD>
    <TD width="4%">&#149;</TD>
    <TD>Total undiscounted value of these payments is
  $26,642,000 (2009 - $24,366,000)</TD>
  </TR>
  <TR>
    <TD width="10%" >&nbsp;</TD>
    <TD width="4%">&#149;</TD>
    <TD><P align=justify>Present value was determined using a credit
  adjusted risk-free rate of 9% - 12% </P></TD>
  </TR>
</TABLE>
<UL style="TEXT-ALIGN: justify">At December 31, 2010, we have lodged
$2,071,000 (2009 - $1,934,000) in security deposits with various government
agencies in relation to our reclamation obligations. Of the amount lodged,
$328,000 (2009 -$191,000) is in the form of cash deposits and $1,743,000 (2009 -
$1,743,000) as security for a reclamation bond for the Candelaria property.</UL>
<TABLE
style="BORDER-COLOR: black; BORDER-COLLAPSE: collapse; FONT-SIZE: 10pt; "
border=0 cellSpacing=0 cellPadding=0 width="100%">

  <TR vAlign=top>
    <TD align=left ><B>13</B> </TD>
    <TD width="95%" align=left><B>SHAREHOLDERS&#146; EQUITY</B>
</TD></TR></TABLE><BR>
<TABLE
style="BORDER-COLOR: black; BORDER-COLLAPSE: collapse; FONT-SIZE: 10pt; "
border=0 cellSpacing=0 cellPadding=0 width="100%" BCLLIST>

  <TR>
    <TD width="5%"  >&nbsp;</TD>
    <TD vAlign=top width="5%"><B>(a)</B> </TD>
    <TD>
      <P align=justify><B>Capital Stock</B></P></TD></TR>
  <TR>
    <TD width="5%" >&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
  <TR>
    <TD width="5%" >&nbsp;</TD>
    <TD width="5%"></TD>
    <TD>
      <P align=justify>At December 31, 2010, we had unlimited authorized common
      shares and 79,665,041 common shares issued and outstanding (2009 &#150;
      71,964,708). During the year, we closed public share offerings of
      6,728,755 common shares at a price of $17.00 per share, for aggregate
      gross proceeds of $114,389,000. After deducting underwriting fees and
      offering expenses net of tax credits of $4,821,000, net proceeds were
      $109,568,000.</P></TD></TR>
  <TR>
    <TD width="5%" >&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
  <TR>
    <TD width="5%" >&nbsp;</TD>
    <TD width="5%"></TD>
    <TD>
      <P align=justify>During the year ended December 31, 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 offering expenses of $9,165,000, net proceeds were
      $140,835,000.</P></TD></TR></TABLE>
<P align=right>25</P>
<HR style="PAGE-BREAK-AFTER: always" align=center color=black SIZE=5
width="100%" noShade>
<!--$$/page=--><A name=page_33></A><BR>
<TABLE
style="BORDER-COLOR: black; BORDER-COLLAPSE: collapse; FONT-SIZE: 10pt; "
border=0 cellSpacing=0 cellPadding=0 width="100%">

  <TR vAlign=top>
    <TD align=left><B>Silver Standard Resources Inc.</B> </TD></TR>
  <TR vAlign=top>
    <TD align=left>Notes to Consolidated Financial Statements </TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>December 31, 2010,
      2009 and 2008 </TD></TR>
  <TR vAlign=top>
    <TD align=left>(tabular amounts expressed in thousands of United States
      dollars unless otherwise stated) </TD></TR></TABLE><BR>
<TABLE
style="BORDER-COLOR: black; BORDER-COLLAPSE: collapse; FONT-SIZE: 10pt; "
border=0 cellSpacing=0 cellPadding=0 width="100%">

  <TR vAlign=top>
    <TD align=left ><B>13</B> </TD>
    <TD width="95%" align=left><B>SHAREHOLDERS&#146; EQUITY (Cont&#146;d)</B>
  </TD></TR></TABLE><BR>
<TABLE
style="BORDER-COLOR: black; BORDER-COLLAPSE: collapse; FONT-SIZE: 10pt; "
border=0 cellSpacing=0 cellPadding=0 width="100%" BCLLIST>

  <TR>
    <TD width="5%"  >&nbsp;</TD>
    <TD vAlign=top width="5%"><B>(b)</B> </TD>
    <TD>
      <P align=justify><B>Stock Options</B></P></TD></TR>
  <TR>
    <TD width="5%" >&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
  <TR>
    <TD width="5%" >&nbsp;</TD>
    <TD width="5%"></TD>
    <TD>
      <P align=justify>We have a stock option plan for our employees, officers
      and self-employed consultants. The plan provides for the issuance of
      incentive options to acquire up to a total of 10% of the issued and
      outstanding common shares of the company. The exercise price of each
      option shall not be less than the closing market price of the company&#146;s
      stock on the award date. The options can be granted for a maximum term of
      10 years with vesting provisions determined by the company. Currently, the
      vesting periods range up to three years. New shares from treasury are
      issued on the exercise of stock options.</P></TD></TR>
  <TR>
    <TD width="5%" >&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
  <TR>
    <TD width="5%" >&nbsp;</TD>
    <TD width="5%"></TD>
    <TD>
      <P align=justify>The changes in stock options issued are as
  follows:</P></TD></TR></TABLE><BR>
<TABLE
style="BORDER-COLOR: black; BORDER-COLLAPSE: collapse; FONT-SIZE: 8pt; "
border=0 cellSpacing=0 cellPadding=0 width="100%">

  <TR vAlign=top>
    <TD width="10%"  >&nbsp;</TD>
    <TD align=left valign="bottom">&nbsp; </TD>
    <TD  width="1%"
    align=left valign="bottom" style="BORDER-BOTTOM: #000000 1px solid">&nbsp;</TD>
    <TD width="8%" align=left valign="bottom" style="BORDER-BOTTOM: #000000 1px solid">&nbsp;    </TD>
    <TD  width="2%"
    align=left valign="bottom" style="BORDER-BOTTOM: #000000 1px solid">&nbsp;</TD>
    <TD  width="1%"
    align=left valign="bottom" style="BORDER-BOTTOM: #000000 1px solid">&nbsp;</TD>
    <TD width="8%"
      align=right valign="bottom" style="BORDER-BOTTOM: #000000 1px solid"><B>2010</B> </TD>
    <TD  width="2%"
    align=left valign="bottom" style="BORDER-BOTTOM: #000000 1px solid">&nbsp;</TD>
    <TD  width="1%"
    align=left valign="bottom" style="BORDER-BOTTOM: #000000 1px solid">&nbsp;</TD>
    <TD width="8%" align=left valign="bottom" style="BORDER-BOTTOM: #000000 1px solid">&nbsp;    </TD>
    <TD  width="2%"
    align=left valign="bottom" style="BORDER-BOTTOM: #000000 1px solid">&nbsp;</TD>
    <TD  width="1%"
    align=left valign="bottom" style="BORDER-BOTTOM: #000000 1px solid">&nbsp;</TD>
    <TD width="8%"
      align=right valign="bottom" style="BORDER-BOTTOM: #000000 1px solid"><B>2009</B> </TD>
    <TD  width="2%"
    align=left valign="bottom" style="BORDER-BOTTOM: #000000 1px solid">&nbsp;</TD>
    <TD  width="1%"
    align=left valign="bottom" style="BORDER-BOTTOM: #000000 1px solid">&nbsp;</TD>
    <TD width="8%" align=left valign="bottom" style="BORDER-BOTTOM: #000000 1px solid">&nbsp;    </TD>
    <TD  width="2%"
    align=left valign="bottom" style="BORDER-BOTTOM: #000000 1px solid">&nbsp;</TD>
    <TD  width="1%"
    align=left valign="bottom" style="BORDER-BOTTOM: #000000 1px solid">&nbsp;</TD>
    <TD width="8%"
      align=right valign="bottom" style="BORDER-BOTTOM: #000000 1px solid"><B>2008</B> </TD>
    <TD  width="2%"
    align=left valign="bottom" style="BORDER-BOTTOM: #000000 1px solid">&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD width="10%" >&nbsp;</TD>
    <TD align=left valign="bottom">&nbsp; </TD>
    <TD  width="1%" align=left valign="bottom">&nbsp;</TD>
    <TD width="8%" align=right valign="bottom"><B>Number&nbsp;</B> </TD>
    <TD  width="2%" align=left valign="bottom">&nbsp;</TD>
    <TD  width="1%" align=left valign="bottom">&nbsp;</TD>
    <TD  width="8%"
align=right valign="bottom" nowrap><STRONG>Weighted</STRONG>&nbsp;</TD>
    <TD  width="2%" align=left valign="bottom">&nbsp;</TD>
    <TD  width="1%" align=left valign="bottom">&nbsp;</TD>
    <TD width="8%" align=right valign="bottom"><B>Number</B> </TD>
    <TD  width="2%" align=left valign="bottom">&nbsp;</TD>
    <TD  width="1%" align=left valign="bottom">&nbsp;</TD>
    <TD width="8%" align=right valign="bottom"><B>Weighted</B> </TD>
    <TD  width="2%" align=left valign="bottom">&nbsp;</TD>
    <TD  width="1%" align=left valign="bottom">&nbsp;</TD>
    <TD width="8%" align=right valign="bottom"><B>Number</B> </TD>
    <TD  width="2%" align=left valign="bottom">&nbsp;</TD>
    <TD  width="1%" align=left valign="bottom">&nbsp;</TD>
    <TD width="8%" align=right valign="bottom"><B>Weighted</B> </TD>
    <TD  width="2%" align=left valign="bottom">&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD width="10%" >&nbsp;</TD>
    <TD align=left valign="bottom">&nbsp; </TD>
    <TD  width="1%" align=left valign="bottom">&nbsp;</TD>
    <TD width="8%" align=right valign="bottom" nowrap><B>of options</B> </TD>
    <TD  width="2%" align=left valign="bottom">&nbsp;</TD>
    <TD  width="1%" align=left valign="bottom">&nbsp;</TD>
    <TD width="8%" align=right valign="bottom"><B>average</B> </TD>
    <TD  width="2%" align=left valign="bottom">&nbsp;</TD>
    <TD  width="1%" align=left valign="bottom">&nbsp;</TD>
    <TD width="8%" align=right valign="bottom" nowrap><B>of options</B> </TD>
    <TD  width="2%" align=left valign="bottom">&nbsp;</TD>
    <TD  width="1%" align=left valign="bottom">&nbsp;</TD>
    <TD width="8%" align=right valign="bottom"><B>average</B> </TD>
    <TD  width="2%" align=left valign="bottom">&nbsp;</TD>
    <TD  width="1%" align=left valign="bottom">&nbsp;</TD>
    <TD width="8%" align=right valign="bottom" nowrap><B>of shares</B> </TD>
    <TD  width="2%" align=left valign="bottom">&nbsp;</TD>
    <TD  width="1%" align=left valign="bottom">&nbsp;</TD>
    <TD width="8%" align=right valign="bottom"><B>average</B> </TD>
    <TD  width="2%" align=left valign="bottom">&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD width="10%" >&nbsp;</TD>
    <TD align=left valign="bottom">&nbsp; </TD>
    <TD  width="1%" align=left valign="bottom">&nbsp;</TD>
    <TD width="8%" align=left valign="bottom">&nbsp; </TD>
    <TD  width="2%" align=left valign="bottom">&nbsp;</TD>
    <TD  width="1%" align=left valign="bottom">&nbsp;</TD>
    <TD width="8%" align=right valign="bottom"><B>exercise</B> </TD>
    <TD  width="2%" align=left valign="bottom">&nbsp;</TD>
    <TD  width="1%" align=left valign="bottom">&nbsp;</TD>
    <TD width="8%" align=left valign="bottom">&nbsp; </TD>
    <TD  width="2%" align=left valign="bottom">&nbsp;</TD>
    <TD  width="1%" align=left valign="bottom">&nbsp;</TD>
    <TD width="8%" align=right valign="bottom"><B>exercise</B> </TD>
    <TD  width="2%" align=left valign="bottom">&nbsp;</TD>
    <TD  width="1%" align=left valign="bottom">&nbsp;</TD>
    <TD width="8%" align=left valign="bottom">&nbsp; </TD>
    <TD  width="2%" align=left valign="bottom">&nbsp;</TD>
    <TD  width="1%" align=left valign="bottom">&nbsp;</TD>
    <TD width="8%" align=right valign="bottom"><B>exercise</B> </TD>
    <TD  width="2%" align=left valign="bottom">&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD width="10%" >&nbsp;</TD>
    <TD align=left valign="bottom">&nbsp; </TD>
    <TD  width="1%" align=left valign="bottom">&nbsp;</TD>
    <TD width="8%" align=left valign="bottom">&nbsp; </TD>
    <TD  width="2%" align=left valign="bottom">&nbsp;</TD>
    <TD  width="1%" align=left valign="bottom">&nbsp;</TD>
    <TD width="8%" align=right valign="bottom"><B>price</B> </TD>
    <TD  width="2%" align=left valign="bottom">&nbsp;</TD>
    <TD  width="1%" align=left valign="bottom">&nbsp;</TD>
    <TD width="8%" align=left valign="bottom">&nbsp; </TD>
    <TD  width="2%" align=left valign="bottom">&nbsp;</TD>
    <TD  width="1%" align=left valign="bottom">&nbsp;</TD>
    <TD width="8%" align=right valign="bottom"><B>price</B> </TD>
    <TD  width="2%" align=left valign="bottom">&nbsp;</TD>
    <TD  width="1%" align=left valign="bottom">&nbsp;</TD>
    <TD width="8%" align=left valign="bottom">&nbsp; </TD>
    <TD  width="2%" align=left valign="bottom">&nbsp;</TD>
    <TD  width="1%" align=left valign="bottom">&nbsp;</TD>
    <TD width="8%" align=right valign="bottom"><B>price</B> </TD>
    <TD  width="2%" align=left valign="bottom">&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD width="10%" >&nbsp;</TD>
    <TD align=left valign="bottom">&nbsp; </TD>
    <TD  width="1%"
    align=left valign="bottom" style="BORDER-BOTTOM: #000000 1px solid">&nbsp;</TD>
    <TD width="8%" align=left valign="bottom" style="BORDER-BOTTOM: #000000 1px solid">&nbsp;    </TD>
    <TD  width="2%"
    align=left valign="bottom" style="BORDER-BOTTOM: #000000 1px solid">&nbsp;</TD>
    <TD  width="1%"
    align=left valign="bottom" style="BORDER-BOTTOM: #000000 1px solid">&nbsp;</TD>
    <TD width="8%"
      align=right valign="bottom" nowrap style="BORDER-BOTTOM: #000000 1px solid"><B>(C$/option)</B> </TD>
    <TD  width="2%"
    align=left valign="bottom" style="BORDER-BOTTOM: #000000 1px solid">&nbsp;</TD>
    <TD  width="1%"
    align=left valign="bottom" style="BORDER-BOTTOM: #000000 1px solid">&nbsp;</TD>
    <TD width="8%" align=left valign="bottom" style="BORDER-BOTTOM: #000000 1px solid">&nbsp;    </TD>
    <TD  width="2%"
    align=left valign="bottom" style="BORDER-BOTTOM: #000000 1px solid">&nbsp;</TD>
    <TD  width="1%"
    align=left valign="bottom" style="BORDER-BOTTOM: #000000 1px solid">&nbsp;</TD>
    <TD width="8%"
      align=right valign="bottom" nowrap style="BORDER-BOTTOM: #000000 1px solid"><B>(C$/option)</B> </TD>
    <TD  width="2%"
    align=left valign="bottom" style="BORDER-BOTTOM: #000000 1px solid">&nbsp;</TD>
    <TD  width="1%"
    align=left valign="bottom" style="BORDER-BOTTOM: #000000 1px solid">&nbsp;</TD>
    <TD width="8%" align=left valign="bottom" style="BORDER-BOTTOM: #000000 1px solid">&nbsp;    </TD>
    <TD  width="2%"
    align=left valign="bottom" style="BORDER-BOTTOM: #000000 1px solid">&nbsp;</TD>
    <TD  width="1%"
    align=left valign="bottom" style="BORDER-BOTTOM: #000000 1px solid">&nbsp;</TD>
    <TD width="8%"
      align=right valign="bottom" nowrap style="BORDER-BOTTOM: #000000 1px solid"><B>(C$/option)</B> </TD>
    <TD  width="2%"
    align=left valign="bottom" style="BORDER-BOTTOM: #000000 1px solid">&nbsp;</TD>
  </TR>
  <TR>
    <TD width="10%" >&nbsp;</TD>
    <TD valign="bottom">&nbsp; </TD>
    <TD  width="1%" valign="bottom">&nbsp;</TD>
    <TD width="8%" valign="bottom">&nbsp; </TD>
    <TD  width="2%" valign="bottom">&nbsp;</TD>
    <TD  width="1%" valign="bottom">&nbsp;</TD>
    <TD width="8%" valign="bottom">&nbsp; </TD>
    <TD  width="2%" valign="bottom">&nbsp;</TD>
    <TD  width="1%" valign="bottom">&nbsp;</TD>
    <TD width="8%" valign="bottom">&nbsp; </TD>
    <TD  width="2%" valign="bottom">&nbsp;</TD>
    <TD  width="1%" valign="bottom">&nbsp;</TD>
    <TD width="8%" valign="bottom">&nbsp; </TD>
    <TD  width="2%" valign="bottom">&nbsp;</TD>
    <TD  width="1%" valign="bottom">&nbsp;</TD>
    <TD width="8%" valign="bottom">&nbsp; </TD>
    <TD  width="2%" valign="bottom">&nbsp;</TD>
    <TD  width="1%" valign="bottom">&nbsp;</TD>
    <TD width="8%" valign="bottom">&nbsp; </TD>
    <TD  width="2%" valign="bottom">&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD width="10%" >&nbsp;</TD>
    <TD align=left valign="bottom" bgColor=#e6efff>Outstanding, beginning of year </TD>
    <TD  width="1%" align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD width="8%" align=right valign="bottom" bgColor=#e6efff><B>5,271,118</B> </TD>
    <TD  width="2%" align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD  width="1%" align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD width="8%" align=right valign="bottom" bgColor=#e6efff><B>26.40</B> </TD>
    <TD  width="2%" align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD  width="1%" align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD width="8%" align=right valign="bottom" bgColor=#e6efff>5,016,250 </TD>
    <TD  width="2%" align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD  width="1%" align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD width="8%" align=right valign="bottom" bgColor=#e6efff>26.37 </TD>
    <TD  width="2%" align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD  width="1%" align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD width="8%" align=right valign="bottom" bgColor=#e6efff>4,419,350 </TD>
    <TD  width="2%" align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD  width="1%" align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD width="8%" align=right valign="bottom" bgColor=#e6efff>27.77 </TD>
    <TD  width="2%" align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD width="10%" >&nbsp;</TD>
    <TD align=left valign="bottom">&nbsp; &nbsp; &nbsp;Granted </TD>
    <TD  width="1%" align=left valign="bottom">&nbsp;</TD>
    <TD width="8%" align=right valign="bottom"><B>605,000</B> </TD>
    <TD  width="2%" align=left valign="bottom">&nbsp;</TD>
    <TD  width="1%" align=left valign="bottom">&nbsp;</TD>
    <TD width="8%" align=right valign="bottom"><B>17.82</B> </TD>
    <TD  width="2%" align=left valign="bottom">&nbsp;</TD>
    <TD  width="1%" align=left valign="bottom">&nbsp;</TD>
    <TD width="8%" align=right valign="bottom">889,500 </TD>
    <TD  width="2%" align=left valign="bottom">&nbsp;</TD>
    <TD  width="1%" align=left valign="bottom">&nbsp;</TD>
    <TD width="8%" align=right valign="bottom">24.18 </TD>
    <TD  width="2%" align=left valign="bottom">&nbsp;</TD>
    <TD  width="1%" align=left valign="bottom">&nbsp;</TD>
    <TD width="8%" align=right valign="bottom">810,000 </TD>
    <TD  width="2%" align=left valign="bottom">&nbsp;</TD>
    <TD  width="1%" align=left valign="bottom">&nbsp;</TD>
    <TD width="8%" align=right valign="bottom">15.47 </TD>
    <TD  width="2%" align=left valign="bottom">&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD width="10%" >&nbsp;</TD>
    <TD align=left valign="bottom" bgColor=#e6efff>&nbsp; &nbsp; &nbsp;Exercised </TD>
    <TD  width="1%" align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD width="8%" align=right valign="bottom" bgColor=#e6efff><B>(971,578</B></TD>
    <TD  width="2%" align=left valign="bottom" bgColor=#e6efff><B>)</B> </TD>
    <TD  width="1%" align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD width="8%" align=right valign="bottom" bgColor=#e6efff><B>17.00</B> </TD>
    <TD  width="2%" align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD  width="1%" align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD width="8%" align=right valign="bottom" bgColor=#e6efff>(385,632</TD>
    <TD  width="2%" align=left valign="bottom" bgColor=#e6efff>) </TD>
    <TD  width="1%" align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD width="8%" align=right valign="bottom" bgColor=#e6efff>15.63 </TD>
    <TD  width="2%" align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD  width="1%" align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD width="8%" align=right valign="bottom" bgColor=#e6efff>(186,100</TD>
    <TD  width="2%" align=left valign="bottom" bgColor=#e6efff>) </TD>
    <TD  width="1%" align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD width="8%" align=right valign="bottom" bgColor=#e6efff>12.46 </TD>
    <TD  width="2%" align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD width="10%" >&nbsp;</TD>
    <TD align=left valign="bottom">&nbsp; &nbsp; &nbsp;Forfeited </TD>
    <TD  width="1%"
    align=left valign="bottom" style="BORDER-BOTTOM: #000000 1px solid">&nbsp;</TD>
    <TD width="8%"
      align=right valign="bottom" style="BORDER-BOTTOM: #000000 1px solid"><B>(200,670</B></TD>
    <TD  width="2%"
    align=left valign="bottom" style="BORDER-BOTTOM: #000000 1px solid"><B>)</B> </TD>
    <TD  width="1%"
    align=left valign="bottom" style="BORDER-BOTTOM: #000000 1px solid">&nbsp;</TD>
    <TD width="8%"
      align=right valign="bottom" style="BORDER-BOTTOM: #000000 1px solid"><B>27.72</B> </TD>
    <TD  width="2%"
    align=left valign="bottom" style="BORDER-BOTTOM: #000000 1px solid">&nbsp;</TD>
    <TD  width="1%"
    align=left valign="bottom" style="BORDER-BOTTOM: #000000 1px solid">&nbsp;</TD>
    <TD width="8%"
      align=right valign="bottom" style="BORDER-BOTTOM: #000000 1px solid">(249,000</TD>
    <TD  width="2%"
    align=left valign="bottom" style="BORDER-BOTTOM: #000000 1px solid">) </TD>
    <TD  width="1%"
    align=left valign="bottom" style="BORDER-BOTTOM: #000000 1px solid">&nbsp;</TD>
    <TD width="8%" align=right valign="bottom" style="BORDER-BOTTOM: #000000 1px solid">34.65    </TD>
    <TD  width="2%"
    align=left valign="bottom" style="BORDER-BOTTOM: #000000 1px solid">&nbsp;</TD>
    <TD  width="1%"
    align=left valign="bottom" style="BORDER-BOTTOM: #000000 1px solid">&nbsp;</TD>
    <TD width="8%"
    align=right valign="bottom" style="BORDER-BOTTOM: #000000 1px solid">(27,000</TD>
    <TD  width="2%"
    align=left valign="bottom" style="BORDER-BOTTOM: #000000 1px solid">) </TD>
    <TD  width="1%"
    align=left valign="bottom" style="BORDER-BOTTOM: #000000 1px solid">&nbsp;</TD>
    <TD width="8%" align=right valign="bottom" style="BORDER-BOTTOM: #000000 1px solid">24.31    </TD>
    <TD  width="2%"
    align=left valign="bottom" style="BORDER-BOTTOM: #000000 1px solid">&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD width="10%" >&nbsp;</TD>
    <TD align=left valign="bottom" bgColor=#e6efff>Outstanding, end of year </TD>
    <TD
    width="1%" align=left valign="bottom" bgColor=#e6efff style="BORDER-BOTTOM: #000000 2px solid">&nbsp;</TD>
    <TD width="8%"
    align=right valign="bottom" bgColor=#e6efff style="BORDER-BOTTOM: #000000 2px solid"><B>4,703,870</B> </TD>
    <TD
    width="2%" align=left valign="bottom" bgColor=#e6efff style="BORDER-BOTTOM: #000000 2px solid">&nbsp;</TD>
    <TD
    width="1%" align=left valign="bottom" bgColor=#e6efff style="BORDER-BOTTOM: #000000 2px solid">&nbsp;</TD>
    <TD width="8%"
    align=right valign="bottom" bgColor=#e6efff style="BORDER-BOTTOM: #000000 2px solid"><B>27.18</B> </TD>
    <TD
    width="2%" align=left valign="bottom" bgColor=#e6efff style="BORDER-BOTTOM: #000000 2px solid">&nbsp;</TD>
    <TD
    width="1%" align=left valign="bottom" bgColor=#e6efff style="BORDER-BOTTOM: #000000 2px solid">&nbsp;</TD>
    <TD width="8%"
    align=right valign="bottom" bgColor=#e6efff style="BORDER-BOTTOM: #000000 2px solid">5,271,118 </TD>
    <TD
    width="2%" align=left valign="bottom" bgColor=#e6efff style="BORDER-BOTTOM: #000000 2px solid">&nbsp;</TD>
    <TD
    width="1%" align=left valign="bottom" bgColor=#e6efff style="BORDER-BOTTOM: #000000 2px solid">&nbsp;</TD>
    <TD width="8%"
    align=right valign="bottom" bgColor=#e6efff style="BORDER-BOTTOM: #000000 2px solid">26.40 </TD>
    <TD
    width="2%" align=left valign="bottom" bgColor=#e6efff style="BORDER-BOTTOM: #000000 2px solid">&nbsp;</TD>
    <TD
    width="1%" align=left valign="bottom" bgColor=#e6efff style="BORDER-BOTTOM: #000000 2px solid">&nbsp;</TD>
    <TD width="8%"
    align=right valign="bottom" bgColor=#e6efff style="BORDER-BOTTOM: #000000 2px solid">5,016,250 </TD>
    <TD
    width="2%" align=left valign="bottom" bgColor=#e6efff style="BORDER-BOTTOM: #000000 2px solid">&nbsp;</TD>
    <TD
    width="1%" align=left valign="bottom" bgColor=#e6efff style="BORDER-BOTTOM: #000000 2px solid">&nbsp;</TD>
    <TD width="8%"
    align=right valign="bottom" bgColor=#e6efff style="BORDER-BOTTOM: #000000 2px solid">26.37 </TD>
    <TD
    width="2%" align=left valign="bottom" bgColor=#e6efff style="BORDER-BOTTOM: #000000 2px solid">&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD width="10%" >&nbsp;</TD>
    <TD align=left valign="bottom">Exercisable, end of year </TD>
    <TD  width="1%"
    align=left valign="bottom" style="BORDER-BOTTOM: #000000 2px solid">&nbsp;</TD>
    <TD width="8%"
      align=right valign="bottom" style="BORDER-BOTTOM: #000000 2px solid"><B>3,324,175</B> </TD>
    <TD  width="2%"
    align=left valign="bottom" style="BORDER-BOTTOM: #000000 2px solid">&nbsp;</TD>
    <TD  width="1%"
    align=left valign="bottom" style="BORDER-BOTTOM: #000000 2px solid">&nbsp;</TD>
    <TD width="8%"
      align=right valign="bottom" style="BORDER-BOTTOM: #000000 2px solid"><B>30.31</B> </TD>
    <TD  width="2%"
    align=left valign="bottom" style="BORDER-BOTTOM: #000000 2px solid">&nbsp;</TD>
    <TD  width="1%"
    align=left valign="bottom" style="BORDER-BOTTOM: #000000 2px solid">&nbsp;</TD>
    <TD width="8%"
      align=right valign="bottom" style="BORDER-BOTTOM: #000000 2px solid">3,881,933 </TD>
    <TD  width="2%"
    align=left valign="bottom" style="BORDER-BOTTOM: #000000 2px solid">&nbsp;</TD>
    <TD  width="1%"
    align=left valign="bottom" style="BORDER-BOTTOM: #000000 2px solid">&nbsp;</TD>
    <TD width="8%" align=right valign="bottom" style="BORDER-BOTTOM: #000000 2px solid">28.41    </TD>
    <TD  width="2%"
    align=left valign="bottom" style="BORDER-BOTTOM: #000000 2px solid">&nbsp;</TD>
    <TD  width="1%"
    align=left valign="bottom" style="BORDER-BOTTOM: #000000 2px solid">&nbsp;</TD>
    <TD width="8%"
      align=right valign="bottom" style="BORDER-BOTTOM: #000000 2px solid">2,962,250 </TD>
    <TD  width="2%"
    align=left valign="bottom" style="BORDER-BOTTOM: #000000 2px solid">&nbsp;</TD>
    <TD  width="1%"
    align=left valign="bottom" style="BORDER-BOTTOM: #000000 2px solid">&nbsp;</TD>
    <TD width="8%" align=right valign="bottom" style="BORDER-BOTTOM: #000000 2px solid">29.03    </TD>
    <TD  width="2%"
    align=left valign="bottom" style="BORDER-BOTTOM: #000000 2px solid">&nbsp;</TD>
  </TR></TABLE>
<P style="MARGIN-LEFT: 10%" align=justify>As of December 31, 2010, incentive
stock options represent 5.9% (2009 &#150; 7.3%) of issued and outstanding common
capital. The aggregate intrinsic values of vested share options (the market
value less the exercise value) at December 31, 2010 and 2009 were $20,242,000
(C$20,104,000) and $11,859,000 (C$12,412,000), respectively.</P>
<P style="MARGIN-LEFT: 10%" align=justify>The following table summarizes
information about stock options outstanding and exercisable at December 31,
2010:</P>
<DIV align=right>
<TABLE
style="BORDER-COLOR: black; BORDER-COLLAPSE: collapse; FONT-SIZE: 8pt; "
border=0 cellSpacing=0 cellPadding=0 width="90%">

  <TR vAlign=top>
    <TD align=left valign="bottom">&nbsp; </TD>
    <TD  width="1%"
    align=left valign="bottom" style="BORDER-BOTTOM: #000000 1px solid">&nbsp;</TD>
    <TD width="45%" colSpan=7
    align=center valign="bottom" style="BORDER-BOTTOM: #000000 1px solid"><B>Options outstanding</B> </TD>
    <TD  width="2%"
    align=center valign="bottom" style="BORDER-BOTTOM: #000000 1px solid">&nbsp;</TD>
    <TD  width="1%"
    align=center valign="bottom" style="BORDER-BOTTOM: #000000 1px solid">&nbsp;</TD>
    <TD width="29%" colSpan=4
    align=center valign="bottom" style="BORDER-BOTTOM: #000000 1px solid"><B>Options exercisable</B> </TD>
    <TD  width="2%"
    align=left valign="bottom" style="BORDER-BOTTOM: #000000 1px solid">&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left valign="bottom">&nbsp; </TD>
    <TD  width="1%" align=left valign="bottom">&nbsp;</TD>
    <TD width="13%" align=left valign="bottom">&nbsp; </TD>
    <TD  width="2%" align=left valign="bottom">&nbsp;</TD>
    <TD  width="1%" align=left valign="bottom">&nbsp;</TD>
    <TD width="13%" align=right valign="bottom"><B>Weighted</B> </TD>
    <TD  width="2%" align=left valign="bottom">&nbsp;</TD>
    <TD  width="1%" align=left valign="bottom">&nbsp;</TD>
    <TD width="13%" align=right valign="bottom" nowrap><B>Weighted average</B> </TD>
    <TD  width="2%" align=left valign="bottom">&nbsp;</TD>
    <TD  width="1%" align=left valign="bottom">&nbsp;</TD>
    <TD width="13%" align=left valign="bottom">&nbsp; </TD>
    <TD  width="2%" align=left valign="bottom">&nbsp;</TD>
    <TD  width="1%" align=left valign="bottom">&nbsp;</TD>
    <TD width="13%" align=right valign="bottom"><B>Weighted</B> </TD>
    <TD  width="2%" align=left valign="bottom">&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left valign="bottom">&nbsp; </TD>
    <TD  width="1%" align=left valign="bottom">&nbsp;</TD>
    <TD width="13%" align=left valign="bottom">&nbsp; </TD>
    <TD  width="2%" align=left valign="bottom">&nbsp;</TD>
    <TD  width="1%" align=left valign="bottom">&nbsp;</TD>
    <TD width="13%" align=right valign="bottom"><B>average</B> </TD>
    <TD  width="2%" align=left valign="bottom">&nbsp;</TD>
    <TD  width="1%" align=left valign="bottom">&nbsp;</TD>
    <TD width="13%" align=right valign="bottom"><B>remaining</B> </TD>
    <TD  width="2%" align=left valign="bottom">&nbsp;</TD>
    <TD  width="1%" align=left valign="bottom">&nbsp;</TD>
    <TD width="13%" align=left valign="bottom">&nbsp; </TD>
    <TD  width="2%" align=left valign="bottom">&nbsp;</TD>
    <TD  width="1%" align=left valign="bottom">&nbsp;</TD>
    <TD width="13%" align=right valign="bottom"><B>average</B> </TD>
    <TD  width="2%" align=left valign="bottom">&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left valign="bottom"><B>Exercise prices</B> </TD>
    <TD  width="1%" align=left valign="bottom">&nbsp;</TD>
    <TD width="13%" align=right valign="bottom"><B>Options </B></TD>
    <TD  width="2%" align=left valign="bottom">&nbsp;</TD>
    <TD  width="1%" align=left valign="bottom">&nbsp;</TD>
    <TD  width="13%" align=right valign="bottom" nowrap><STRONG>exercise
      price</STRONG>&nbsp;&nbsp;</TD>
    <TD  width="2%" align=left valign="bottom">&nbsp;</TD>
    <TD  width="1%" align=left valign="bottom">&nbsp;</TD>
    <TD width="13%" align=right valign="bottom" nowrap><B>contractual life</B> </TD>
    <TD  width="2%" align=left valign="bottom">&nbsp;</TD>
    <TD  width="1%" align=left valign="bottom">&nbsp;</TD>
    <TD width="13%" align=right valign="bottom"><B>Options </B></TD>
    <TD  width="2%" align=left valign="bottom">&nbsp;</TD>
    <TD  width="1%" align=left valign="bottom">&nbsp;</TD>
    <TD  width="13%" align=right valign="bottom" nowrap><STRONG>exercise
      price</STRONG>&nbsp;&nbsp;</TD>
    <TD  width="2%" align=left valign="bottom">&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left valign="bottom" style="BORDER-BOTTOM: #000000 1px solid"><B>(C$)</B> </TD>
    <TD  width="1%"
    align=left valign="bottom" style="BORDER-BOTTOM: #000000 1px solid">&nbsp;</TD>
    <TD width="13%"
      align=right valign="bottom" nowrap style="BORDER-BOTTOM: #000000 1px solid"><B>outstanding</B> </TD>
    <TD  width="2%"
    align=left valign="bottom" style="BORDER-BOTTOM: #000000 1px solid">&nbsp;</TD>
    <TD  width="1%"
    align=left valign="bottom" style="BORDER-BOTTOM: #000000 1px solid">&nbsp;</TD>
    <TD width="13%"
      align=right valign="bottom" nowrap style="BORDER-BOTTOM: #000000 1px solid"><B>(C$/option)</B> </TD>
    <TD  width="2%"
    align=left valign="bottom" style="BORDER-BOTTOM: #000000 1px solid">&nbsp;</TD>
    <TD  width="1%"
    align=left valign="bottom" style="BORDER-BOTTOM: #000000 1px solid">&nbsp;</TD>
    <TD width="13%"
      align=right valign="bottom" style="BORDER-BOTTOM: #000000 1px solid"><B>(years)</B> </TD>
    <TD  width="2%"
    align=left valign="bottom" style="BORDER-BOTTOM: #000000 1px solid">&nbsp;</TD>
    <TD  width="1%"
    align=left valign="bottom" style="BORDER-BOTTOM: #000000 1px solid">&nbsp;</TD>
    <TD width="13%"
      align=right valign="bottom" nowrap style="BORDER-BOTTOM: #000000 1px solid"><B>exercisable</B> </TD>
    <TD  width="2%"
    align=left valign="bottom" style="BORDER-BOTTOM: #000000 1px solid">&nbsp;</TD>
    <TD  width="1%"
    align=left valign="bottom" style="BORDER-BOTTOM: #000000 1px solid">&nbsp;</TD>
    <TD width="13%"
      align=right valign="bottom" style="BORDER-BOTTOM: #000000 1px solid"><B>(C$/option)</B> </TD>
    <TD  width="2%"
    align=left valign="bottom" style="BORDER-BOTTOM: #000000 1px solid">&nbsp;</TD>
  </TR>
  <TR>
    <TD valign="bottom">&nbsp; </TD>
    <TD  width="1%" valign="bottom">&nbsp;</TD>
    <TD width="13%" valign="bottom">&nbsp; </TD>
    <TD  width="2%" valign="bottom">&nbsp;</TD>
    <TD  width="1%" valign="bottom">&nbsp;</TD>
    <TD width="13%" valign="bottom">&nbsp; </TD>
    <TD  width="2%" valign="bottom">&nbsp;</TD>
    <TD  width="1%" valign="bottom">&nbsp;</TD>
    <TD width="13%" valign="bottom">&nbsp; </TD>
    <TD  width="2%" valign="bottom">&nbsp;</TD>
    <TD  width="1%" valign="bottom">&nbsp;</TD>
    <TD width="13%" valign="bottom">&nbsp; </TD>
    <TD  width="2%" valign="bottom">&nbsp;</TD>
    <TD  width="1%" valign="bottom">&nbsp;</TD>
    <TD width="13%" valign="bottom">&nbsp; </TD>
    <TD  width="2%" valign="bottom">&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left valign="bottom" bgColor=#e6efff>11.50 &#150; 17.38 </TD>
    <TD  width="1%" align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD width="13%" align=right valign="bottom" bgColor=#e6efff>997,403 </TD>
    <TD  width="2%" align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD  width="1%" align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD width="13%" align=right valign="bottom" bgColor=#e6efff>14.65 </TD>
    <TD  width="2%" align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD  width="1%" align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD width="13%" align=right valign="bottom" bgColor=#e6efff>8.8 </TD>
    <TD  width="2%" align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD  width="1%" align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD width="13%" align=right valign="bottom" bgColor=#e6efff>270,393 </TD>
    <TD  width="2%" align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD  width="1%" align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD width="13%" align=right valign="bottom" bgColor=#e6efff>11.50 </TD>
    <TD  width="2%" align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left valign="bottom">18.99 &#150; 24.61 </TD>
    <TD  width="1%" align=left valign="bottom">&nbsp;</TD>
    <TD width="13%" align=right valign="bottom">1,436,967 </TD>
    <TD  width="2%" align=left valign="bottom">&nbsp;</TD>
    <TD  width="1%" align=left valign="bottom">&nbsp;</TD>
    <TD width="13%" align=right valign="bottom">22.95 </TD>
    <TD  width="2%" align=left valign="bottom">&nbsp;</TD>
    <TD  width="1%" align=left valign="bottom">&nbsp;</TD>
    <TD width="13%" align=right valign="bottom">6.4 </TD>
    <TD  width="2%" align=left valign="bottom">&nbsp;</TD>
    <TD  width="1%" align=left valign="bottom">&nbsp;</TD>
    <TD width="13%" align=right valign="bottom">804,282 </TD>
    <TD  width="2%" align=left valign="bottom">&nbsp;</TD>
    <TD  width="1%" align=left valign="bottom">&nbsp;</TD>
    <TD width="13%" align=right valign="bottom">22.31 </TD>
    <TD  width="2%" align=left valign="bottom">&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left valign="bottom" bgColor=#e6efff>26.55 &#150; 32.08 </TD>
    <TD  width="1%" align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD width="13%" align=right valign="bottom" bgColor=#e6efff>290,000 </TD>
    <TD  width="2%" align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD  width="1%" align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD width="13%" align=right valign="bottom" bgColor=#e6efff>28.78 </TD>
    <TD  width="2%" align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD  width="1%" align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD width="13%" align=right valign="bottom" bgColor=#e6efff>2.5 </TD>
    <TD  width="2%" align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD  width="1%" align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD width="13%" align=right valign="bottom" bgColor=#e6efff>270,000 </TD>
    <TD  width="2%" align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD  width="1%" align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD width="13%" align=right valign="bottom" bgColor=#e6efff>28.95 </TD>
    <TD  width="2%" align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left valign="bottom" style="BORDER-BOTTOM: #000000 1px solid">34.71 &#150; 40.62 </TD>
    <TD  width="1%"
    align=left valign="bottom" style="BORDER-BOTTOM: #000000 1px solid">&nbsp;</TD>
    <TD width="13%"
      align=right valign="bottom" style="BORDER-BOTTOM: #000000 1px solid">1,979,500 </TD>
    <TD  width="2%"
    align=left valign="bottom" style="BORDER-BOTTOM: #000000 1px solid">&nbsp;</TD>
    <TD  width="1%"
    align=left valign="bottom" style="BORDER-BOTTOM: #000000 1px solid">&nbsp;</TD>
    <TD width="13%" align=right valign="bottom" style="BORDER-BOTTOM: #000000 1px solid">36.32    </TD>
    <TD  width="2%"
    align=left valign="bottom" style="BORDER-BOTTOM: #000000 1px solid">&nbsp;</TD>
    <TD  width="1%"
    align=left valign="bottom" style="BORDER-BOTTOM: #000000 1px solid">&nbsp;</TD>
    <TD width="13%" align=right valign="bottom" style="BORDER-BOTTOM: #000000 1px solid">1.3    </TD>
    <TD  width="2%"
    align=left valign="bottom" style="BORDER-BOTTOM: #000000 1px solid">&nbsp;</TD>
    <TD  width="1%"
    align=left valign="bottom" style="BORDER-BOTTOM: #000000 1px solid">&nbsp;</TD>
    <TD width="13%"
      align=right valign="bottom" style="BORDER-BOTTOM: #000000 1px solid">1,979,500 </TD>
    <TD  width="2%"
    align=left valign="bottom" style="BORDER-BOTTOM: #000000 1px solid">&nbsp;</TD>
    <TD  width="1%"
    align=left valign="bottom" style="BORDER-BOTTOM: #000000 1px solid">&nbsp;</TD>
    <TD width="13%" align=right valign="bottom" style="BORDER-BOTTOM: #000000 1px solid">36.32    </TD>
    <TD  width="2%"
    align=left valign="bottom" style="BORDER-BOTTOM: #000000 1px solid">&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD
      align=left valign="bottom" bgColor=#e6efff style="BORDER-BOTTOM: #000000 2px solid">&nbsp; </TD>
    <TD
    width="1%" align=left valign="bottom" bgColor=#e6efff style="BORDER-BOTTOM: #000000 2px solid">&nbsp;</TD>
    <TD width="13%"
    align=right valign="bottom" bgColor=#e6efff style="BORDER-BOTTOM: #000000 2px solid"><B>4,703,870</B> </TD>
    <TD
    width="2%" align=left valign="bottom" bgColor=#e6efff style="BORDER-BOTTOM: #000000 2px solid">&nbsp;</TD>
    <TD
    width="1%" align=left valign="bottom" bgColor=#e6efff style="BORDER-BOTTOM: #000000 2px solid">&nbsp;</TD>
    <TD width="13%"
    align=right valign="bottom" bgColor=#e6efff style="BORDER-BOTTOM: #000000 2px solid"><B>27.18</B> </TD>
    <TD
    width="2%" align=left valign="bottom" bgColor=#e6efff style="BORDER-BOTTOM: #000000 2px solid">&nbsp;</TD>
    <TD
    width="1%" align=left valign="bottom" bgColor=#e6efff style="BORDER-BOTTOM: #000000 2px solid">&nbsp;</TD>
    <TD width="13%"
    align=right valign="bottom" bgColor=#e6efff style="BORDER-BOTTOM: #000000 2px solid"><B>4.4</B> </TD>
    <TD
    width="2%" align=left valign="bottom" bgColor=#e6efff style="BORDER-BOTTOM: #000000 2px solid">&nbsp;</TD>
    <TD
    width="1%" align=left valign="bottom" bgColor=#e6efff style="BORDER-BOTTOM: #000000 2px solid">&nbsp;</TD>
    <TD width="13%"
    align=right valign="bottom" bgColor=#e6efff style="BORDER-BOTTOM: #000000 2px solid"><B>3,324,175</B> </TD>
    <TD
    width="2%" align=left valign="bottom" bgColor=#e6efff style="BORDER-BOTTOM: #000000 2px solid">&nbsp;</TD>
    <TD
    width="1%" align=left valign="bottom" bgColor=#e6efff style="BORDER-BOTTOM: #000000 2px solid">&nbsp;</TD>
    <TD width="13%"
    align=right valign="bottom" bgColor=#e6efff style="BORDER-BOTTOM: #000000 2px solid"><B>30.31</B> </TD>
  <TD
    width="2%" align=left valign="bottom" bgColor=#e6efff style="BORDER-BOTTOM: #000000 2px solid">&nbsp;</TD>
  </TR></TABLE></DIV>
<P align=right>26</P>
<HR style="PAGE-BREAK-AFTER: always" align=center color=black SIZE=5
width="100%" noShade>
<!--$$/page=--><A name=page_34></A><BR>
<TABLE
style="BORDER-COLOR: black; BORDER-COLLAPSE: collapse; FONT-SIZE: 10pt; "
border=0 cellSpacing=0 cellPadding=0 width="100%">

  <TR vAlign=top>
    <TD align=left><B>Silver Standard Resources Inc.</B> </TD></TR>
  <TR vAlign=top>
    <TD align=left>Notes to Consolidated Financial Statements </TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>December 31, 2010,
      2009 and 2008 </TD></TR>
  <TR vAlign=top>
    <TD align=left>(tabular amounts expressed in thousands of United States
      dollars unless otherwise stated) </TD></TR></TABLE><BR>
<TABLE
style="BORDER-COLOR: black; BORDER-COLLAPSE: collapse; FONT-SIZE: 10pt; "
border=0 cellSpacing=0 cellPadding=0 width="100%">

  <TR vAlign=top>
    <TD align=left ><B>13</B> </TD>
    <TD width="95%" align=left><B>SHAREHOLDERS&#146; EQUITY (Cont&#146;d)</B>
  </TD></TR></TABLE>
<P style="MARGIN-LEFT: 10%" align=justify>During the year ended December 31,
2010, 605,000 (2009 - 889,500) options were granted to employees and consultants
at a weighted average strike price of C$17.82 (2009 - C$24.18) . The average
fair value of the options granted in 2010 and 2009 were $9.40 (C$9.35) and
$12.04 (C$12.60), respectively, based on the Black-Scholes option pricing model.
We amortize the fair value of stock options on a graded basis over the
respective vesting period of the stock options. At December 31, 2010, the
non-vested stock option expense not yet recognized was $8,939,000 (2009 -
$12,374,000) and this expense is expected to be recognized over the next 3
years.</P>
<P style="MARGIN-LEFT: 10%" align=justify>The allocation of fair value of
options was as follow:</P>
<TABLE
style="BORDER-COLOR: black; BORDER-COLLAPSE: collapse; FONT-SIZE: 10pt; "
border=0 cellSpacing=0 cellPadding=0 width="100%">

  <TR vAlign=top>
    <TD width="10%"  >&nbsp;</TD>
    <TD align=left>&nbsp; </TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="10%" align=right><B>2010</B> </TD>
    <TD  width="2%" align=left>&nbsp;</TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="10%" align=right><B>2009</B> </TD>
    <TD  width="2%" align=left>&nbsp;</TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="10%" align=right><B>2008</B> </TD>
    <TD  width="2%" align=left>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD width="10%" >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>&nbsp; </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="1%"
    align=left><B></B></TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="10%"
      align=right><STRONG>$</STRONG>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="2%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="1%"
    align=left><B></B></TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="10%"
      align=right><STRONG>$</STRONG>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="2%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="1%"
    align=left><B></B></TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="10%"
      align=right><STRONG>$</STRONG>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="2%"
    align=left>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD width="10%" >&nbsp;</TD>
    <TD bgColor=#e6efff align=left><B>Consolidated Balance Sheets</B> </TD>
    <TD bgColor=#e6efff  width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="10%" align=left>&nbsp; </TD>
    <TD bgColor=#e6efff  width="2%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff  width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="10%" align=left>&nbsp; </TD>
    <TD bgColor=#e6efff  width="2%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff  width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="10%" align=left>&nbsp; </TD>
    <TD bgColor=#e6efff  width="2%" align=left>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD width="10%" >&nbsp;</TD>
    <TD align=left>&nbsp; &nbsp; &nbsp; &nbsp;Mineral property costs </TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="10%" align=right><B>331</B> </TD>
    <TD  width="2%" align=left>&nbsp;</TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="10%" align=right>228 </TD>
    <TD  width="2%" align=left>&nbsp;</TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="10%" align=right>61 </TD>
    <TD  width="2%" align=left>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD width="10%" >&nbsp;</TD>
    <TD bgColor=#e6efff align=left><B>Consolidated Statements of Earnings
      (Loss)</B> </TD>
    <TD bgColor=#e6efff  width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="10%" align=left>&nbsp; </TD>
    <TD bgColor=#e6efff  width="2%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff  width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="10%" align=left>&nbsp; </TD>
    <TD bgColor=#e6efff  width="2%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff  width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="10%" align=left>&nbsp; </TD>
    <TD bgColor=#e6efff  width="2%" align=left>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD width="10%" >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>&nbsp; &nbsp;
      &nbsp; &nbsp;Stock based compensation </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="1%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="10%"
      align=right><B>8,868</B> </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="2%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="1%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="10%" align=right>6,319
    </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="2%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="1%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="10%" align=right>9,601
    </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="2%"
    align=left>&nbsp;</TD></TR>
  <TR>
    <TD width="10%" >&nbsp;</TD>
    <TD bgColor=#e6efff>&nbsp; </TD>
    <TD bgColor=#e6efff  width="1%">&nbsp;</TD>
    <TD bgColor=#e6efff width="10%">&nbsp; </TD>
    <TD bgColor=#e6efff  width="2%">&nbsp;</TD>
    <TD bgColor=#e6efff  width="1%">&nbsp;</TD>
    <TD bgColor=#e6efff width="10%">&nbsp; </TD>
    <TD bgColor=#e6efff  width="2%">&nbsp;</TD>
    <TD bgColor=#e6efff  width="1%">&nbsp;</TD>
    <TD bgColor=#e6efff width="10%">&nbsp; </TD>
    <TD bgColor=#e6efff  width="2%">&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD width="10%" >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=left><B>Total stock
      based compensation</B> </TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid"  width="1%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" width="10%"
      align=right><B>9,199</B> </TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid"  width="2%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid"  width="1%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" width="10%" align=right>6,547
    </TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid"  width="2%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid"  width="1%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" width="10%" align=right>9,662
    </TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid"  width="2%"
    align=left>&nbsp;</TD></TR></TABLE>
<P style="MARGIN-LEFT: 10%" align=justify>The fair value of stock options for
all options issued was estimated at the grant date based on the Black-Scholes
option pricing model, using the following weighted average assumptions:</P>
<TABLE
style="BORDER-COLOR: black; BORDER-COLLAPSE: collapse; FONT-SIZE: 10pt; "
border=0 cellSpacing=0 cellPadding=0 width="100%">

  <TR vAlign=top>
    <TD width="10%"  >&nbsp;</TD>
    <TD align=left>&nbsp; </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="1%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="10%"
      align=right><B>2010</B> </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="2%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="1%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="10%"
      align=right><B>2009</B> </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="2%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="1%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="10%"
      align=right><B>2008</B> </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="2%"
    align=left>&nbsp;</TD></TR>
  <TR>
    <TD width="10%" >&nbsp;</TD>
    <TD>&nbsp; </TD>
    <TD  width="1%">&nbsp;</TD>
    <TD width="10%">&nbsp; </TD>
    <TD  width="2%">&nbsp;</TD>
    <TD  width="1%">&nbsp;</TD>
    <TD width="10%">&nbsp; </TD>
    <TD  width="2%">&nbsp;</TD>
    <TD  width="1%">&nbsp;</TD>
    <TD width="10%">&nbsp; </TD>
    <TD  width="2%">&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD width="10%" >&nbsp;</TD>
    <TD bgColor=#e6efff align=left>Expected dividend yield (%) </TD>
    <TD bgColor=#e6efff  width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="10%" align=right>Nil </TD>
    <TD bgColor=#e6efff  width="2%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff  width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="10%" align=right>Nil </TD>
    <TD bgColor=#e6efff  width="2%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff  width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="10%" align=right>Nil </TD>
    <TD bgColor=#e6efff  width="2%" align=left>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD width="10%" >&nbsp;</TD>
    <TD align=left>Average risk-free interest rate (%) </TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="10%" align=right>2.9 </TD>
    <TD  width="2%" align=left>&nbsp;</TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="10%" align=right>2.7 </TD>
    <TD  width="2%" align=left>&nbsp;</TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="10%" align=right>3.1 </TD>
    <TD  width="2%" align=left>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD width="10%" >&nbsp;</TD>
    <TD bgColor=#e6efff align=left>Expected life (years) </TD>
    <TD bgColor=#e6efff  width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="10%" align=right>6.5 </TD>
    <TD bgColor=#e6efff  width="2%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff  width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="10%" align=right>6.1 </TD>
    <TD bgColor=#e6efff  width="2%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff  width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="10%" align=right>5.8 </TD>
    <TD bgColor=#e6efff  width="2%" align=left>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD width="10%" >&nbsp;</TD>
    <TD align=left>Expected volatility (%) </TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="10%" align=right>53 </TD>
    <TD  width="2%" align=left>&nbsp;</TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="10%" align=right>57 </TD>
    <TD  width="2%" align=left>&nbsp;</TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="10%" align=right>56 </TD>
    <TD  width="2%" align=left>&nbsp;</TD></TR></TABLE>
<P style="MARGIN-LEFT: 10%" align=justify>Option pricing models require the
input of highly subjective assumptions. The expected life of the options
considered such factors as the average length of time similar option grants in
the past have remained outstanding prior to exercise and the vesting period of
the grants. Volatility was estimated based upon historical price observations
over the expected term. Changes in the subjective input assumptions can
materially affect the estimated fair value of the options.</P>
<TABLE
style="BORDER-COLOR: black; BORDER-COLLAPSE: collapse; FONT-SIZE: 10pt; "
border=0 cellSpacing=0 cellPadding=0 width="100%" BCLLIST>

  <TR>
    <TD width="5%"  >&nbsp;</TD>
    <TD vAlign=top width="5%"><B>(c)</B> </TD>
    <TD>
      <P align=justify><B>Deferred Share Units</B></P></TD></TR>
  <TR>
    <TD width="5%" >&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
  <TR>
    <TD width="5%" >&nbsp;</TD>
    <TD width="5%"></TD>
    <TD>
      <P align=justify>The Company has a Deferred Share Unit (&#147;DSUs&#148;) plan for
      non-executive Directors. DSUs are issued at the market value of our common
      shares at the date of grant. In addition, directors may elect to receive a
      portion of their annual compensation in the form of DSUs which are issued
      at the market value of our common shares on a quarterly basis. The DSUs
      vest immediately and are redeemable in cash on the date the director
      ceases to be a director of the Company. For the year ended December 31,
      2010, a total of 39,398 (2009 &#150; 38,000) DSUs were granted with a grant
      date fair value of $772,000 (2009 - $681,000). During the year ended
      December 31, 2010, 8,741 (2009 - 1,000) DSUs, with a weighted average fair
      value of $18.18 were exercised after the resignation of one of our
      directors.</P></TD></TR></TABLE>
<P align=right>27</P>
<HR style="PAGE-BREAK-AFTER: always" align=center color=black SIZE=5
width="100%" noShade>
<!--$$/page=--><A name=page_35></A><BR>
<TABLE
style="BORDER-COLOR: black; BORDER-COLLAPSE: collapse; FONT-SIZE: 10pt; "
border=0 cellSpacing=0 cellPadding=0 width="100%">

  <TR vAlign=top>
    <TD align=left><B>Silver Standard Resources Inc.</B> </TD></TR>
  <TR vAlign=top>
    <TD align=left>Notes to Consolidated Financial Statements </TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>December 31, 2010,
      2009 and 2008 </TD></TR>
  <TR vAlign=top>
    <TD align=left>(tabular amounts expressed in thousands of United States
      dollars unless otherwise stated) </TD></TR></TABLE><BR>
<TABLE
style="BORDER-COLOR: black; BORDER-COLLAPSE: collapse; FONT-SIZE: 10pt; "
border=0 cellSpacing=0 cellPadding=0 width="100%">

  <TR vAlign=top>
    <TD align=left ><B>13</B> </TD>
    <TD width="95%" align=left><B>SHAREHOLDERS&#146; EQUITY (Cont&#146;d)</B>
  </TD></TR></TABLE>
<P style="MARGIN-LEFT: 10%" align=justify>As a result of the increase in our
share price during the year, a fair value increase of $518,000 (2009 &#150;$140,000)
was recorded to general and administration expense. As at December 31, 2010,
90,361 (2009 &#150; 59,704,) DSUs were outstanding with a fair value of $2,560,000
(2009 &#150; $1,312,000) recorded in accrued liabilities.</P>
<TABLE
style="BORDER-COLOR: black; BORDER-COLLAPSE: collapse; FONT-SIZE: 10pt; "
border=0 cellSpacing=0 cellPadding=0 width="100%" BCLLIST>

  <TR>
    <TD width="5%"  >&nbsp;</TD>
    <TD vAlign=top width="5%"><B>(d)</B> </TD>
    <TD>
      <P align=justify><B>Diluted Earnings (Loss) Per Share</B></P></TD></TR>
  <TR>
    <TD width="5%" >&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
  <TR>
    <TD width="5%" >&nbsp;</TD>
    <TD width="5%"></TD>
    <TD>
      <P align=justify>The following table reconciles our basic and diluted
      earnings per share:</P></TD></TR></TABLE><BR>
<TABLE
style="BORDER-COLOR: black; BORDER-COLLAPSE: collapse; FONT-SIZE: 10pt; "
border=0 cellSpacing=0 cellPadding=0 width="100%">

  <TR vAlign=top>
    <TD width="10%"  >&nbsp;</TD>
    <TD align=left valign="bottom">(expressed in thousands of US$, except per share amounts)    </TD>
    <TD  width="1%"
    align=left valign="bottom" style="BORDER-BOTTOM: #000000 1px solid">&nbsp;</TD>
    <TD width="10%"
      align=right valign="bottom" style="BORDER-BOTTOM: #000000 1px solid"><B>2010</B> </TD>
    <TD  width="2%"
    align=left valign="bottom" style="BORDER-BOTTOM: #000000 1px solid">&nbsp;</TD>
    <TD  width="1%"
    align=left valign="bottom" style="BORDER-BOTTOM: #000000 1px solid">&nbsp;</TD>
    <TD width="10%"
      align=right valign="bottom" style="BORDER-BOTTOM: #000000 1px solid"><B>2009</B> </TD>
    <TD  width="2%"
    align=left valign="bottom" style="BORDER-BOTTOM: #000000 1px solid">&nbsp;</TD>
    <TD  width="1%"
    align=left valign="bottom" style="BORDER-BOTTOM: #000000 1px solid">&nbsp;</TD>
    <TD width="10%"
      align=right valign="bottom" style="BORDER-BOTTOM: #000000 1px solid"><B>2008</B> </TD>
    <TD  width="2%"
    align=left valign="bottom" style="BORDER-BOTTOM: #000000 1px solid">&nbsp;</TD>
  </TR>
  <TR>
    <TD width="10%" >&nbsp;</TD>
    <TD valign="bottom">&nbsp; </TD>
    <TD  width="1%" valign="bottom">&nbsp;</TD>
    <TD width="10%" valign="bottom">&nbsp; </TD>
    <TD  width="2%" valign="bottom">&nbsp;</TD>
    <TD  width="1%" valign="bottom">&nbsp;</TD>
    <TD width="10%" valign="bottom">&nbsp; </TD>
    <TD  width="2%" valign="bottom">&nbsp;</TD>
    <TD  width="1%" valign="bottom">&nbsp;</TD>
    <TD width="10%" valign="bottom">&nbsp; </TD>
    <TD  width="2%" valign="bottom">&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD width="10%" >&nbsp;</TD>
    <TD align=left valign="bottom" bgColor=#e6efff>Basic earnings (losses) </TD>
    <TD  width="1%" align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD width="10%" align=right valign="bottom" bgColor=#e6efff><B>346,239</B> </TD>
    <TD  width="2%" align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD  width="1%" align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD width="10%" align=right valign="bottom" bgColor=#e6efff>(13,193</TD>
    <TD  width="2%" align=left valign="bottom" bgColor=#e6efff>) </TD>
    <TD  width="1%" align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD width="10%" align=right valign="bottom" bgColor=#e6efff>(5,946</TD>
    <TD  width="2%" align=left valign="bottom" bgColor=#e6efff>) </TD>
  </TR>
  <TR vAlign=top>
    <TD width="10%" >&nbsp;</TD>
    <TD align=left valign="bottom">Diluted earnings (losses) </TD>
    <TD  width="1%" align=left valign="bottom">&nbsp;</TD>
    <TD width="10%" align=right valign="bottom"><B>346,239</B> </TD>
    <TD  width="2%" align=left valign="bottom">&nbsp;</TD>
    <TD  width="1%" align=left valign="bottom">&nbsp;</TD>
    <TD width="10%" align=right valign="bottom">(13,193</TD>
    <TD  width="2%" align=left valign="bottom">) </TD>
    <TD  width="1%" align=left valign="bottom">&nbsp;</TD>
    <TD width="10%" align=right valign="bottom">(5,946</TD>
    <TD  width="2%" align=left valign="bottom">) </TD>
  </TR>
  <TR>
    <TD width="10%" >&nbsp;</TD>
    <TD valign="bottom" bgColor=#e6efff>&nbsp; </TD>
    <TD  width="1%" valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD width="10%" valign="bottom" bgColor=#e6efff>&nbsp; </TD>
    <TD  width="2%" valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD  width="1%" valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD width="10%" valign="bottom" bgColor=#e6efff>&nbsp; </TD>
    <TD  width="2%" valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD  width="1%" valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD width="10%" valign="bottom" bgColor=#e6efff>&nbsp; </TD>
    <TD  width="2%" valign="bottom" bgColor=#e6efff>&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD width="10%" >&nbsp;</TD>
    <TD align=left valign="bottom">Weighted average shares outstanding (000s) </TD>
    <TD  width="1%" align=left valign="bottom">&nbsp;</TD>
    <TD width="10%" align=right valign="bottom"><B>77,972</B> </TD>
    <TD  width="2%" align=left valign="bottom">&nbsp;</TD>
    <TD  width="1%" align=left valign="bottom">&nbsp;</TD>
    <TD width="10%" align=right valign="bottom">68,845 </TD>
    <TD  width="2%" align=left valign="bottom">&nbsp;</TD>
    <TD  width="1%" align=left valign="bottom">&nbsp;</TD>
    <TD width="10%" align=right valign="bottom">62,694 </TD>
    <TD  width="2%" align=left valign="bottom">&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD width="10%" >&nbsp;</TD>
    <TD align=left valign="bottom" bgColor=#e6efff>Effect of dilutive securities </TD>
    <TD  width="1%" align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD width="10%" align=left valign="bottom" bgColor=#e6efff>&nbsp; </TD>
    <TD  width="2%" align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD  width="1%" align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD width="10%" align=left valign="bottom" bgColor=#e6efff>&nbsp; </TD>
    <TD  width="2%" align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD  width="1%" align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD width="10%" align=left valign="bottom" bgColor=#e6efff>&nbsp; </TD>
    <TD  width="2%" align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD width="10%" >&nbsp;</TD>
    <TD align=left valign="bottom" style="BORDER-BOTTOM: #000000 1px solid">&nbsp;
      &nbsp;Incremental shares from share options </TD>
    <TD  width="1%"
    align=left valign="bottom" style="BORDER-BOTTOM: #000000 1px solid">&nbsp;</TD>
    <TD width="10%"
      align=right valign="bottom" style="BORDER-BOTTOM: #000000 1px solid"><B>384</B> </TD>
    <TD  width="2%"
    align=left valign="bottom" style="BORDER-BOTTOM: #000000 1px solid">&nbsp;</TD>
    <TD  width="1%"
    align=left valign="bottom" style="BORDER-BOTTOM: #000000 1px solid">&nbsp;</TD>
    <TD width="10%" align=right valign="bottom" style="BORDER-BOTTOM: #000000 1px solid">- </TD>
    <TD  width="2%"
    align=left valign="bottom" style="BORDER-BOTTOM: #000000 1px solid">&nbsp;</TD>
    <TD  width="1%"
    align=left valign="bottom" style="BORDER-BOTTOM: #000000 1px solid">&nbsp;</TD>
    <TD width="10%" align=right valign="bottom" style="BORDER-BOTTOM: #000000 1px solid">- </TD>
    <TD  width="2%"
    align=left valign="bottom" style="BORDER-BOTTOM: #000000 1px solid">&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD width="10%" >&nbsp;</TD>
    <TD
      align=left valign="bottom" bgColor=#e6efff style="BORDER-BOTTOM: #000000 1px solid">Weighted average diluted shares outstanding </TD>
    <TD
    width="1%" align=left valign="bottom" bgColor=#e6efff style="BORDER-BOTTOM: #000000 1px solid">&nbsp;</TD>
    <TD width="10%"
    align=right valign="bottom" bgColor=#e6efff style="BORDER-BOTTOM: #000000 1px solid"><B>78,356</B> </TD>
    <TD
    width="2%" align=left valign="bottom" bgColor=#e6efff style="BORDER-BOTTOM: #000000 1px solid">&nbsp;</TD>
    <TD
    width="1%" align=left valign="bottom" bgColor=#e6efff style="BORDER-BOTTOM: #000000 1px solid">&nbsp;</TD>
    <TD width="10%"
    align=right valign="bottom" bgColor=#e6efff style="BORDER-BOTTOM: #000000 1px solid">68,845 </TD>
    <TD
    width="2%" align=left valign="bottom" bgColor=#e6efff style="BORDER-BOTTOM: #000000 1px solid">&nbsp;</TD>
    <TD
    width="1%" align=left valign="bottom" bgColor=#e6efff style="BORDER-BOTTOM: #000000 1px solid">&nbsp;</TD>
    <TD width="10%"
    align=right valign="bottom" bgColor=#e6efff style="BORDER-BOTTOM: #000000 1px solid">62,694 </TD>
    <TD
    width="2%" align=left valign="bottom" bgColor=#e6efff style="BORDER-BOTTOM: #000000 1px solid">&nbsp;</TD>
  </TR>
  <TR>
    <TD width="10%" >&nbsp;</TD>
    <TD valign="bottom">&nbsp; </TD>
    <TD  width="1%" valign="bottom">&nbsp;</TD>
    <TD width="10%" valign="bottom">&nbsp; </TD>
    <TD  width="2%" valign="bottom">&nbsp;</TD>
    <TD  width="1%" valign="bottom">&nbsp;</TD>
    <TD width="10%" valign="bottom">&nbsp; </TD>
    <TD  width="2%" valign="bottom">&nbsp;</TD>
    <TD  width="1%" valign="bottom">&nbsp;</TD>
    <TD width="10%" valign="bottom">&nbsp; </TD>
    <TD  width="2%" valign="bottom">&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD width="10%" >&nbsp;</TD>
    <TD align=left valign="bottom" bgColor=#e6efff>Basic earnings (loss) per share </TD>
    <TD  width="1%" align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD width="10%" align=right valign="bottom" bgColor=#e6efff><B>4.44</B> </TD>
    <TD  width="2%" align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD  width="1%" align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD width="10%" align=right valign="bottom" bgColor=#e6efff>(0.19</TD>
    <TD  width="2%" align=left valign="bottom" bgColor=#e6efff>) </TD>
    <TD  width="1%" align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD width="10%" align=right valign="bottom" bgColor=#e6efff>(0.09</TD>
    <TD  width="2%" align=left valign="bottom" bgColor=#e6efff>) </TD>
  </TR>
  <TR vAlign=top>
    <TD width="10%" >&nbsp;</TD>
    <TD align=left valign="bottom" style="BORDER-BOTTOM: #000000 2px solid">Diluted earnings
      (loss) per share </TD>
    <TD  width="1%"
    align=left valign="bottom" style="BORDER-BOTTOM: #000000 2px solid">&nbsp;</TD>
    <TD width="10%"
      align=right valign="bottom" style="BORDER-BOTTOM: #000000 2px solid"><B>4.42</B> </TD>
    <TD  width="2%"
    align=left valign="bottom" style="BORDER-BOTTOM: #000000 2px solid">&nbsp;</TD>
    <TD  width="1%"
    align=left valign="bottom" style="BORDER-BOTTOM: #000000 2px solid">&nbsp;</TD>
    <TD width="10%"
    align=right valign="bottom" style="BORDER-BOTTOM: #000000 2px solid">(0.19</TD>
    <TD  width="2%"
    align=left valign="bottom" style="BORDER-BOTTOM: #000000 2px solid">) </TD>
    <TD  width="1%"
    align=left valign="bottom" style="BORDER-BOTTOM: #000000 2px solid">&nbsp;</TD>
    <TD width="10%"
    align=right valign="bottom" style="BORDER-BOTTOM: #000000 2px solid">(0.09</TD>
    <TD  width="2%"
    align=left valign="bottom" style="BORDER-BOTTOM: #000000 2px solid">) </TD>
  </TR></TABLE>
<P style="MARGIN-LEFT: 10%" align=justify>The shares issuable pursuant to the
terms of the convertible debenture have not been included in the calculation of
diluted earnings (loss) per share as the impact would be anti-dilutive.</P>
<P style="MARGIN-LEFT: 10%" align=justify>For the years ended December 31, 2009
and 2008 the effect of potential issuances of shares under options and warrants
would have been anti-dilutive as a loss was reported and therefore basic and
diluted loss per share were the same. </P>
<TABLE
style="BORDER-COLOR: black; BORDER-COLLAPSE: collapse; FONT-SIZE: 10pt; "
border=0 cellSpacing=0 cellPadding=0 width="100%" BCLLIST>

  <TR>
    <TD vAlign=top width="5%"><B>14</B> </TD>
    <TD>
      <P align=justify><B>RELATED PARTY TRANSACTIONS</B></P></TD></TR>
  <TR>
    <TD width="5%">&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
  <TR>
    <TD width="5%"></TD>
    <TD>
      <P align=justify>During the year ended December 31, 2010, we recorded
      administrative, technical services and expense reimbursements of $31,000
      (2009 - $453,000; 2008 - $1,276,000) from companies related by common
      directors or officers including our equity accounted investee. At December
      31, 2010, accounts receivable include $22,000 (2009 - $35,000) from these
      related parties. Any amounts due from related parties are non- interest
      bearing and without specific terms of repayment. Any transactions for
      expense reimbursement with related parties are at normal business
      terms.</P></TD></TR></TABLE>
<P align=right>28</P>
<HR style="PAGE-BREAK-AFTER: always" align=center color=black SIZE=5
width="100%" noShade>
<!--$$/page=--><A name=page_36></A><BR>
<TABLE
style="BORDER-COLOR: black; BORDER-COLLAPSE: collapse; FONT-SIZE: 10pt; "
border=0 cellSpacing=0 cellPadding=0 width="100%">

  <TR vAlign=top>
    <TD align=left><B>Silver Standard Resources Inc.</B> </TD></TR>
  <TR vAlign=top>
    <TD align=left>Notes to Consolidated Financial Statements </TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>December 31, 2010,
      2009 and 2008 </TD></TR>
  <TR vAlign=top>
    <TD align=left>(tabular amounts expressed in thousands of United States
      dollars unless otherwise stated) </TD></TR></TABLE><BR>
<TABLE
style="BORDER-COLOR: black; BORDER-COLLAPSE: collapse; FONT-SIZE: 10pt; "
border=0 cellSpacing=0 cellPadding=0 width="100%" BCLLIST>

  <TR>
    <TD vAlign=top width="5%"><B>15</B> </TD>
    <TD colSpan=2>
  <P align=justify><B>CAPITAL RISK MANAGEMENT</B></P></TD></TR>
  <TR>
    <TD width="5%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
  <TR>
    <TD width="5%"></TD>
    <TD colSpan=2>
      <P align=justify>Our objectives when managing capital are:</P></TD></TR>
  <TR>
    <TD width="5%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
  <TR>
    <TD width="5%"></TD>
    <TD vAlign=top width="5%">
      <LI></LI></TD>
    <TD>
      <P align=justify>to safeguard our ability to continue as a going concern
      in order to pursue the development of our mineral properties</P></TD></TR>
  <TR>
    <TD width="5%"></TD>
    <TD vAlign=top width="5%">
      <LI></LI></TD>
    <TD>
      <P align=justify>to provide an adequate return to shareholders</P></TD></TR>
  <TR>
    <TD width="5%"></TD>
    <TD vAlign=top width="5%">
      <LI></LI></TD>
    <TD>
      <P align=justify>to maintain a flexible capital structure which optimizes
      the cost of capital</P></TD></TR>
  <TR>
    <TD width="5%"></TD>
    <TD vAlign=top width="5%">
      <LI></LI></TD>
    <TD>
      <P align=justify>to meet our long term debt obligations</P></TD></TR>
  <TR>
    <TD width="5%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD>&nbsp;</TD>
  <TR>
    <TD width="5%"></TD>
    <TD colSpan=2>
      <P align=justify>In order to facilitate the management of our capital
      requirements, we prepare annual expenditure budgets and continuously
      monitor and review actual and forecasted cash flow. The annual and updated
      budgets are approved and monitored by the Board of Directors.</P></TD></TR>
  <TR>
    <TD width="5%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
  <TR>
    <TD width="5%"></TD>
    <TD colSpan=2>
      <P align=justify>To maintain the capital structure, we may, from time to
      time, attempt to issue new shares, issue new debt or dispose of non-core
      assets. We expect our current capital resources will be sufficient to
      carry out our strategic plans and support operations through the current
      operating period.</P></TD></TR>
  <TR>
    <TD width="5%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
  <TR>
    <TD vAlign=top width="5%"><B>16</B> </TD>
    <TD colSpan=2>
      <P align=justify><B>INCOME TAXES</B></P></TD></TR>
  <TR>
    <TD width="5%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
  <TR>
    <TD width="5%"></TD>
    <TD colSpan=2>
      <P align=justify>The income taxes shown on the Consolidated Statements of
      Earnings (Loss) differ from the amounts obtained by applying statutory
rates due to the following:</P></TD></TR></TABLE><BR>
<TABLE
style="BORDER-COLOR: black; BORDER-COLLAPSE: collapse; FONT-SIZE: 10pt; "
border=0 cellSpacing=0 cellPadding=0 width="100%">

  <TR vAlign=top>
    <TD width="5%"  >&nbsp;</TD>
    <TD align=left valign="bottom">&nbsp; </TD>
    <TD  width="1%"
    align=left valign="bottom" style="BORDER-BOTTOM: #000000 1px solid">&nbsp;</TD>
    <TD width="11%"
      align=right valign="bottom" style="BORDER-BOTTOM: #000000 1px solid"><B>2010</B> </TD>
    <TD  width="2%"
    align=left valign="bottom" style="BORDER-BOTTOM: #000000 1px solid">&nbsp;</TD>
    <TD  width="1%"
    align=left valign="bottom" style="BORDER-BOTTOM: #000000 1px solid">&nbsp;</TD>
    <TD width="11%"
      align=right valign="bottom" style="BORDER-BOTTOM: #000000 1px solid"><B>2009</B> </TD>
    <TD  width="2%"
    align=left valign="bottom" style="BORDER-BOTTOM: #000000 1px solid">&nbsp;</TD>
    <TD  width="1%"
    align=left valign="bottom" style="BORDER-BOTTOM: #000000 1px solid">&nbsp;</TD>
    <TD width="11%"
      align=right valign="bottom" style="BORDER-BOTTOM: #000000 1px solid"><B>2008</B> </TD>
    <TD  width="2%"
    align=left valign="bottom" style="BORDER-BOTTOM: #000000 1px solid">&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD width="5%" >&nbsp;</TD>
    <TD align=left valign="bottom" bgColor=#e6efff>Statutory tax rate </TD>
    <TD
    width="1%" align=left valign="bottom" bgColor=#e6efff style="BORDER-BOTTOM: #000000 2px solid">&nbsp;</TD>
    <TD width="11%"
    align=right valign="bottom" bgColor=#e6efff style="BORDER-BOTTOM: #000000 2px solid"><B>28.50%</B> </TD>
    <TD
    width="2%" align=left valign="bottom" bgColor=#e6efff style="BORDER-BOTTOM: #000000 2px solid">&nbsp;</TD>
    <TD
    width="1%" align=left valign="bottom" bgColor=#e6efff style="BORDER-BOTTOM: #000000 2px solid">&nbsp;</TD>
    <TD width="11%"
    align=right valign="bottom" bgColor=#e6efff style="BORDER-BOTTOM: #000000 2px solid">30.00% </TD>
    <TD
    width="2%" align=left valign="bottom" bgColor=#e6efff style="BORDER-BOTTOM: #000000 2px solid">&nbsp;</TD>
    <TD
    width="1%" align=left valign="bottom" bgColor=#e6efff style="BORDER-BOTTOM: #000000 2px solid">&nbsp;</TD>
    <TD width="11%"
    align=right valign="bottom" bgColor=#e6efff style="BORDER-BOTTOM: #000000 2px solid">31.00% </TD>
    <TD
    width="2%" align=left valign="bottom" bgColor=#e6efff style="BORDER-BOTTOM: #000000 2px solid">&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD width="5%" >&nbsp;</TD>
    <TD align=left valign="bottom">&nbsp; </TD>
    <TD  width="1%" align=left valign="bottom"><B></B></TD>
    <TD width="11%" align=right valign="bottom"><STRONG>$</STRONG>&nbsp;</TD>
    <TD  width="2%" align=left valign="bottom">&nbsp;</TD>
    <TD  width="1%" align=left valign="bottom"></TD>
    <TD width="11%" align=right valign="bottom"><STRONG>$</STRONG>&nbsp;</TD>
    <TD  width="2%" align=left valign="bottom">&nbsp;</TD>
    <TD  width="1%" align=left valign="bottom"><B></B></TD>
    <TD width="11%" align=right valign="bottom"><STRONG>$</STRONG>&nbsp;</TD>
    <TD  width="2%" align=left valign="bottom">&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD width="5%" >&nbsp;</TD>
    <TD align=left valign="bottom" bgColor=#e6efff>Earnings (loss) for the year before income
      taxes </TD>
    <TD
    width="1%" align=left valign="bottom" bgColor=#e6efff style="BORDER-BOTTOM: #000000 2px solid">&nbsp;</TD>
    <TD width="11%"
    align=right valign="bottom" bgColor=#e6efff style="BORDER-BOTTOM: #000000 2px solid"><B>369,536</B> </TD>
    <TD
    width="2%" align=left valign="bottom" bgColor=#e6efff style="BORDER-BOTTOM: #000000 2px solid">&nbsp;</TD>
    <TD
    width="1%" align=left valign="bottom" bgColor=#e6efff style="BORDER-BOTTOM: #000000 2px solid">&nbsp;</TD>
    <TD width="11%"
    align=right valign="bottom" bgColor=#e6efff style="BORDER-BOTTOM: #000000 2px solid">(17,501</TD>
    <TD
    width="2%" align=left valign="bottom" bgColor=#e6efff style="BORDER-BOTTOM: #000000 2px solid">) </TD>
    <TD
    width="1%" align=left valign="bottom" bgColor=#e6efff style="BORDER-BOTTOM: #000000 2px solid">&nbsp;</TD>
    <TD width="11%"
    align=right valign="bottom" bgColor=#e6efff style="BORDER-BOTTOM: #000000 2px solid">12,022 </TD>
    <TD
    width="2%" align=left valign="bottom" bgColor=#e6efff style="BORDER-BOTTOM: #000000 2px solid">&nbsp;</TD>
  </TR>
  <TR>
    <TD width="5%" >&nbsp;</TD>
    <TD valign="bottom">&nbsp; </TD>
    <TD  width="1%" valign="bottom">&nbsp;</TD>
    <TD width="11%" valign="bottom">&nbsp; </TD>
    <TD  width="2%" valign="bottom">&nbsp;</TD>
    <TD  width="1%" valign="bottom">&nbsp;</TD>
    <TD width="11%" valign="bottom">&nbsp; </TD>
    <TD  width="2%" valign="bottom">&nbsp;</TD>
    <TD  width="1%" valign="bottom">&nbsp;</TD>
    <TD width="11%" valign="bottom">&nbsp; </TD>
    <TD  width="2%" valign="bottom">&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD width="5%" >&nbsp;</TD>
    <TD align=left valign="bottom" bgColor=#e6efff>Provision for income taxes based on
      statutory rates </TD>
    <TD  width="1%" align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD width="11%" align=right valign="bottom" bgColor=#e6efff><B>105,318</B> </TD>
    <TD  width="2%" align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD  width="1%" align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD width="11%" align=right valign="bottom" bgColor=#e6efff>(5,250</TD>
    <TD  width="2%" align=left valign="bottom" bgColor=#e6efff>) </TD>
    <TD  width="1%" align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD width="11%" align=right valign="bottom" bgColor=#e6efff>3,727 </TD>
    <TD  width="2%" align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD width="5%" >&nbsp;</TD>
    <TD align=left valign="bottom">Differences in foreign tax rates </TD>
    <TD  width="1%" align=left valign="bottom">&nbsp;</TD>
    <TD width="11%" align=right valign="bottom"><B>(2,893</B></TD>
    <TD  width="2%" align=left valign="bottom"><B>)</B> </TD>
    <TD  width="1%" align=left valign="bottom">&nbsp;</TD>
    <TD width="11%" align=right valign="bottom">(88</TD>
    <TD  width="2%" align=left valign="bottom">) </TD>
    <TD  width="1%" align=left valign="bottom">&nbsp;</TD>
    <TD width="11%" align=right valign="bottom">2,432 </TD>
    <TD  width="2%" align=left valign="bottom">&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD width="5%" >&nbsp;</TD>
    <TD align=left valign="bottom" bgColor=#e6efff>Foreign exchange </TD>
    <TD  width="1%" align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD width="11%" align=right valign="bottom" bgColor=#e6efff><B>(2,157</B></TD>
    <TD  width="2%" align=left valign="bottom" bgColor=#e6efff><B>)</B> </TD>
    <TD  width="1%" align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD width="11%" align=right valign="bottom" bgColor=#e6efff>868 </TD>
    <TD  width="2%" align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD  width="1%" align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD width="11%" align=right valign="bottom" bgColor=#e6efff>(1,033</TD>
    <TD  width="2%" align=left valign="bottom" bgColor=#e6efff>) </TD>
  </TR>
  <TR vAlign=top>
    <TD width="5%" >&nbsp;</TD>
    <TD align=left valign="bottom">Capital gain on disposal of mineral properties </TD>
    <TD  width="1%" align=left valign="bottom">&nbsp;</TD>
    <TD width="11%" align=right valign="bottom"><B>(60,324</B></TD>
    <TD  width="2%" align=left valign="bottom"><B>)</B> </TD>
    <TD  width="1%" align=left valign="bottom">&nbsp;</TD>
    <TD width="11%" align=right valign="bottom">- </TD>
    <TD  width="2%" align=left valign="bottom">&nbsp;</TD>
    <TD  width="1%" align=left valign="bottom">&nbsp;</TD>
    <TD width="11%" align=right valign="bottom">- </TD>
    <TD  width="2%" align=left valign="bottom">&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD width="5%" >&nbsp;</TD>
    <TD align=left valign="bottom" bgColor=#e6efff>Tax benefits not recognized (recognized)
      and other </TD>
    <TD
    width="1%" align=left valign="bottom" bgColor=#e6efff style="BORDER-BOTTOM: #000000 1px solid">&nbsp;</TD>
    <TD width="11%"
    align=right valign="bottom" bgColor=#e6efff style="BORDER-BOTTOM: #000000 1px solid"><B>(16,647</B></TD>
    <TD
    width="2%" align=left valign="bottom" bgColor=#e6efff style="BORDER-BOTTOM: #000000 1px solid"><B>)</B> </TD>
    <TD
    width="1%" align=left valign="bottom" bgColor=#e6efff style="BORDER-BOTTOM: #000000 1px solid">&nbsp;</TD>
    <TD width="11%"
    align=right valign="bottom" bgColor=#e6efff style="BORDER-BOTTOM: #000000 1px solid">162 </TD>
    <TD
    width="2%" align=left valign="bottom" bgColor=#e6efff style="BORDER-BOTTOM: #000000 1px solid">&nbsp;</TD>
    <TD
    width="1%" align=left valign="bottom" bgColor=#e6efff style="BORDER-BOTTOM: #000000 1px solid">&nbsp;</TD>
    <TD width="11%"
    align=right valign="bottom" bgColor=#e6efff style="BORDER-BOTTOM: #000000 1px solid">12,842 </TD>
    <TD
    width="2%" align=left valign="bottom" bgColor=#e6efff style="BORDER-BOTTOM: #000000 1px solid">&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD width="5%" >&nbsp;</TD>
    <TD align=left valign="bottom">&nbsp; </TD>
    <TD  width="1%"
    align=left valign="bottom" style="BORDER-BOTTOM: #000000 2px solid">&nbsp;</TD>
    <TD width="11%"
      align=right valign="bottom" style="BORDER-BOTTOM: #000000 2px solid"><B>23,297</B> </TD>
    <TD  width="2%"
    align=left valign="bottom" style="BORDER-BOTTOM: #000000 2px solid">&nbsp;</TD>
    <TD  width="1%"
    align=left valign="bottom" style="BORDER-BOTTOM: #000000 2px solid">&nbsp;</TD>
    <TD width="11%"
    align=right valign="bottom" style="BORDER-BOTTOM: #000000 2px solid">(4,308</TD>
    <TD  width="2%"
    align=left valign="bottom" style="BORDER-BOTTOM: #000000 2px solid">) </TD>
    <TD  width="1%"
    align=left valign="bottom" style="BORDER-BOTTOM: #000000 2px solid">&nbsp;</TD>
    <TD width="11%"
      align=right valign="bottom" style="BORDER-BOTTOM: #000000 2px solid">17,968 </TD>
    <TD  width="2%"
    align=left valign="bottom" style="BORDER-BOTTOM: #000000 2px solid">&nbsp;</TD>
  </TR></TABLE>
<P align=right>29</P>
<HR style="PAGE-BREAK-AFTER: always" align=center color=black SIZE=5
width="100%" noShade>
<!--$$/page=--><A name=page_37></A><BR>
<TABLE
style="BORDER-COLOR: black; BORDER-COLLAPSE: collapse; FONT-SIZE: 10pt; "
border=0 cellSpacing=0 cellPadding=0 width="100%">

  <TR vAlign=top>
    <TD align=left><B>Silver Standard Resources Inc.</B> </TD></TR>
  <TR vAlign=top>
    <TD align=left>Notes to Consolidated Financial Statements </TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>December 31, 2010,
      2009 and 2008 </TD></TR>
  <TR vAlign=top>
    <TD align=left>(tabular amounts expressed in thousands of United States
      dollars unless otherwise stated) </TD></TR></TABLE><BR>
<TABLE
style="BORDER-COLOR: black; BORDER-COLLAPSE: collapse; FONT-SIZE: 10pt; "
border=0 cellSpacing=0 cellPadding=0 width="100%" BCLLIST>

  <TR>
    <TD vAlign=top width="5%"><B>16</B> </TD>
    <TD colSpan=2>
      <P align=justify><B>INCOME TAXES (Cont&#146;d)</B></P></TD></TR>
  <TR>
    <TD width="5%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
  <TR>
    <TD width="5%"></TD>
    <TD vAlign=top width="5%">ii) </TD>
    <TD>
      <P align=justify>Future income taxes reflect the net tax effects of
      temporary differences between the carrying amounts of assets and
      liabilities for financial reporting purposes and the amounts used for
      income tax purposes. Significant components of our future tax assets and
      liabilities as of December 31 are as follows:</P></TD></TR></TABLE><BR>
<TABLE
style="BORDER-COLOR: black; BORDER-COLLAPSE: collapse; FONT-SIZE: 10pt; "
border=0 cellSpacing=0 cellPadding=0 width="100%">

  <TR vAlign=top>
    <TD width="10%"  >&nbsp;</TD>
    <TD align=left valign="bottom">&nbsp; </TD>
    <TD  width="1%" align=left valign="bottom">&nbsp;</TD>
    <TD width="12%" align=right valign="bottom"><B>2010</B> </TD>
    <TD  width="2%" align=left valign="bottom">&nbsp;</TD>
    <TD  width="1%" align=left valign="bottom">&nbsp;</TD>
    <TD width="12%" align=right valign="bottom"><B>2009</B> </TD>
    <TD  width="2%" align=left valign="bottom">&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD width="10%" >&nbsp;</TD>
    <TD align=left valign="bottom">&nbsp; </TD>
    <TD  width="1%"
    align=left valign="bottom" style="BORDER-BOTTOM: #000000 1px solid"><B></B></TD>
    <TD width="12%"
      align=right valign="bottom" style="BORDER-BOTTOM: #000000 1px solid"><STRONG>$</STRONG>&nbsp;</TD>
    <TD  width="2%"
    align=left valign="bottom" style="BORDER-BOTTOM: #000000 1px solid">&nbsp;</TD>
    <TD  width="1%"
    align=left valign="bottom" style="BORDER-BOTTOM: #000000 1px solid"><B></B></TD>
    <TD width="12%"
      align=right valign="bottom" style="BORDER-BOTTOM: #000000 1px solid"><STRONG>$</STRONG>&nbsp;</TD>
    <TD  width="2%"
    align=left valign="bottom" style="BORDER-BOTTOM: #000000 1px solid">&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD width="10%" >&nbsp;</TD>
    <TD align=left valign="bottom" bgColor=#e6efff><B>Future tax assets</B> </TD>
    <TD  width="1%" align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD width="12%" align=left valign="bottom" bgColor=#e6efff>&nbsp; </TD>
    <TD  width="2%" align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD  width="1%" align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD width="12%" align=left valign="bottom" bgColor=#e6efff>&nbsp; </TD>
    <TD  width="2%" align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
  </TR>
  <TR>
    <TD width="10%" >&nbsp;</TD>
    <TD valign="bottom">&nbsp; </TD>
    <TD  width="1%" valign="bottom">&nbsp;</TD>
    <TD width="12%" valign="bottom">&nbsp; </TD>
    <TD  width="2%" valign="bottom">&nbsp;</TD>
    <TD  width="1%" valign="bottom">&nbsp;</TD>
    <TD width="12%" valign="bottom">&nbsp; </TD>
    <TD  width="2%" valign="bottom">&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD width="10%" >&nbsp;</TD>
    <TD align=left valign="bottom" bgColor=#e6efff>Property, plant and equipment and resource
      properties </TD>
    <TD  width="1%" align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD width="12%" align=right valign="bottom" bgColor=#e6efff><B>-</B> </TD>
    <TD  width="2%" align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD  width="1%" align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD width="12%" align=right valign="bottom" bgColor=#e6efff>95 </TD>
    <TD  width="2%" align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
  </TR>
  <TR>
    <TD width="10%" >&nbsp;</TD>
    <TD valign="bottom">&nbsp; </TD>
    <TD  width="1%" valign="bottom">&nbsp;</TD>
    <TD width="12%" valign="bottom">&nbsp; </TD>
    <TD  width="2%" valign="bottom">&nbsp;</TD>
    <TD  width="1%" valign="bottom">&nbsp;</TD>
    <TD width="12%" valign="bottom">&nbsp; </TD>
    <TD  width="2%" valign="bottom">&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD width="10%" >&nbsp;</TD>
    <TD align=left valign="bottom" bgColor=#e6efff>Capital and non-capital loss carry-forwards    </TD>
    <TD  width="1%" align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD width="12%" align=right valign="bottom" bgColor=#e6efff><B>3,119</B> </TD>
    <TD  width="2%" align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD  width="1%" align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD width="12%" align=right valign="bottom" bgColor=#e6efff>16,492 </TD>
    <TD  width="2%" align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD width="10%" >&nbsp;</TD>
    <TD align=left valign="bottom">Foreign resource pools </TD>
    <TD  width="1%" align=left valign="bottom">&nbsp;</TD>
    <TD width="12%" align=right valign="bottom"><B>618</B> </TD>
    <TD  width="2%" align=left valign="bottom">&nbsp;</TD>
    <TD  width="1%" align=left valign="bottom">&nbsp;</TD>
    <TD width="12%" align=right valign="bottom">586 </TD>
    <TD  width="2%" align=left valign="bottom">&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD width="10%" >&nbsp;</TD>
    <TD align=left valign="bottom" bgColor=#e6efff>Share issuance costs </TD>
    <TD  width="1%" align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD width="12%" align=right valign="bottom" bgColor=#e6efff><B>3,734</B> </TD>
    <TD  width="2%" align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD  width="1%" align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD width="12%" align=right valign="bottom" bgColor=#e6efff>3,353 </TD>
    <TD  width="2%" align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD width="10%" >&nbsp;</TD>
    <TD align=left valign="bottom">Other investments </TD>
    <TD  width="1%"
    align=left valign="bottom" style="BORDER-BOTTOM: #000000 1px solid">&nbsp;</TD>
    <TD width="12%"
      align=right valign="bottom" style="BORDER-BOTTOM: #000000 1px solid"><B>10,849</B> </TD>
    <TD  width="2%"
    align=left valign="bottom" style="BORDER-BOTTOM: #000000 1px solid">&nbsp;</TD>
    <TD  width="1%"
    align=left valign="bottom" style="BORDER-BOTTOM: #000000 1px solid">&nbsp;</TD>
    <TD width="12%"
      align=right valign="bottom" style="BORDER-BOTTOM: #000000 1px solid">10,602 </TD>
    <TD  width="2%"
    align=left valign="bottom" style="BORDER-BOTTOM: #000000 1px solid">&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD width="10%" >&nbsp;</TD>
    <TD align=left valign="bottom" bgColor=#e6efff>Total future tax assets </TD>
    <TD  width="1%" align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD width="12%" align=right valign="bottom" bgColor=#e6efff><B>18,320</B> </TD>
    <TD  width="2%" align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD  width="1%" align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD width="12%" align=right valign="bottom" bgColor=#e6efff>31,128 </TD>
    <TD  width="2%" align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
  </TR>
  <TR>
    <TD width="10%" >&nbsp;</TD>
    <TD valign="bottom">&nbsp; </TD>
    <TD  width="1%" valign="bottom">&nbsp;</TD>
    <TD width="12%" valign="bottom">&nbsp; </TD>
    <TD  width="2%" valign="bottom">&nbsp;</TD>
    <TD  width="1%" valign="bottom">&nbsp;</TD>
    <TD width="12%" valign="bottom">&nbsp; </TD>
    <TD  width="2%" valign="bottom">&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD width="10%" >&nbsp;</TD>
    <TD align=left valign="bottom" bgColor=#e6efff><B>Future tax liabilities</B> </TD>
    <TD  width="1%" align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD width="12%" align=left valign="bottom" bgColor=#e6efff>&nbsp; </TD>
    <TD  width="2%" align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD  width="1%" align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD width="12%" align=left valign="bottom" bgColor=#e6efff>&nbsp; </TD>
    <TD  width="2%" align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD width="10%" >&nbsp;</TD>
    <TD align=left valign="bottom">Resource properties </TD>
    <TD  width="1%" align=left valign="bottom">&nbsp;</TD>
    <TD width="12%" align=right valign="bottom"><B>(40,710</B></TD>
    <TD  width="2%" align=left valign="bottom"><B>)</B> </TD>
    <TD  width="1%" align=left valign="bottom">&nbsp;</TD>
    <TD width="12%" align=right valign="bottom">(44,534</TD>
    <TD  width="2%" align=left valign="bottom">) </TD>
  </TR>
  <TR vAlign=top>
    <TD width="10%" >&nbsp;</TD>
    <TD align=left valign="bottom" bgColor=#e6efff>Marketable securities </TD>
    <TD
    width="1%" align=left valign="bottom" bgColor=#e6efff style="BORDER-BOTTOM: #000000 1px solid">&nbsp;</TD>
    <TD width="12%"
    align=right valign="bottom" bgColor=#e6efff style="BORDER-BOTTOM: #000000 1px solid"><B>(32,083</B></TD>
    <TD
    width="2%" align=left valign="bottom" bgColor=#e6efff style="BORDER-BOTTOM: #000000 1px solid"><B>)</B> </TD>
    <TD
    width="1%" align=left valign="bottom" bgColor=#e6efff style="BORDER-BOTTOM: #000000 1px solid">&nbsp;</TD>
    <TD width="12%"
    align=right valign="bottom" bgColor=#e6efff style="BORDER-BOTTOM: #000000 1px solid">(1,263</TD>
    <TD
    width="2%" align=left valign="bottom" bgColor=#e6efff style="BORDER-BOTTOM: #000000 1px solid">) </TD>
  </TR>
  <TR vAlign=top>
    <TD width="10%" >&nbsp;</TD>
    <TD align=left valign="bottom">Total future tax liabilities </TD>
    <TD  width="1%" align=left valign="bottom">&nbsp;</TD>
    <TD width="12%" align=right valign="bottom"><B>(72,793</B></TD>
    <TD  width="2%" align=left valign="bottom"><B>)</B> </TD>
    <TD  width="1%" align=left valign="bottom">&nbsp;</TD>
    <TD width="12%" align=right valign="bottom">(45,797</TD>
    <TD  width="2%" align=left valign="bottom">) </TD>
  </TR>
  <TR>
    <TD width="10%" >&nbsp;</TD>
    <TD valign="bottom" bgColor=#e6efff>&nbsp; </TD>
    <TD  width="1%" valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD width="12%" valign="bottom" bgColor=#e6efff>&nbsp; </TD>
    <TD  width="2%" valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD  width="1%" valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD width="12%" valign="bottom" bgColor=#e6efff>&nbsp; </TD>
    <TD  width="2%" valign="bottom" bgColor=#e6efff>&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD width="10%" >&nbsp;</TD>
    <TD align=left valign="bottom">Valuation allowance for future tax assets </TD>
    <TD  width="1%"
    align=left valign="bottom" style="BORDER-BOTTOM: #000000 1px solid">&nbsp;</TD>
    <TD width="12%"
      align=right valign="bottom" style="BORDER-BOTTOM: #000000 1px solid"><B>(5,966</B></TD>
    <TD  width="2%"
    align=left valign="bottom" style="BORDER-BOTTOM: #000000 1px solid"><B>)</B> </TD>
    <TD  width="1%"
    align=left valign="bottom" style="BORDER-BOTTOM: #000000 1px solid">&nbsp;</TD>
    <TD width="12%"
      align=right valign="bottom" style="BORDER-BOTTOM: #000000 1px solid">(22,129</TD>
    <TD  width="2%"
    align=left valign="bottom" style="BORDER-BOTTOM: #000000 1px solid">) </TD>
  </TR>
  <TR vAlign=top>
    <TD width="10%" >&nbsp;</TD>
    <TD align=left valign="bottom" bgColor=#e6efff><B>Future income tax liability</B> </TD>
    <TD
    width="1%" align=left valign="bottom" bgColor=#e6efff style="BORDER-BOTTOM: #000000 1px solid">&nbsp;</TD>
    <TD width="12%"
    align=right valign="bottom" bgColor=#e6efff style="BORDER-BOTTOM: #000000 1px solid"><B>(60,439</B></TD>
    <TD
    width="2%" align=left valign="bottom" bgColor=#e6efff style="BORDER-BOTTOM: #000000 1px solid"><B>)</B> </TD>
    <TD
    width="1%" align=left valign="bottom" bgColor=#e6efff style="BORDER-BOTTOM: #000000 1px solid">&nbsp;</TD>
    <TD width="12%"
    align=right valign="bottom" bgColor=#e6efff style="BORDER-BOTTOM: #000000 1px solid">(36,798</TD>
    <TD
    width="2%" align=left valign="bottom" bgColor=#e6efff style="BORDER-BOTTOM: #000000 1px solid">) </TD>
  </TR>
  <TR>
    <TD width="10%" >&nbsp;</TD>
    <TD valign="bottom">&nbsp; </TD>
    <TD  width="1%" valign="bottom">&nbsp;</TD>
    <TD width="12%" valign="bottom">&nbsp; </TD>
    <TD  width="2%" valign="bottom">&nbsp;</TD>
    <TD  width="1%" valign="bottom">&nbsp;</TD>
    <TD width="12%" valign="bottom">&nbsp; </TD>
    <TD  width="2%" valign="bottom">&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD width="10%" >&nbsp;</TD>
    <TD align=left valign="bottom" bgColor=#e6efff>Current </TD>
    <TD  width="1%" align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD width="12%" align=right valign="bottom" bgColor=#e6efff><B>3,047</B> </TD>
    <TD  width="2%" align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD  width="1%" align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD width="12%" align=right valign="bottom" bgColor=#e6efff>- </TD>
    <TD  width="2%" align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD width="10%" >&nbsp;</TD>
    <TD align=left valign="bottom">Non-current </TD>
    <TD  width="1%"
    align=left valign="bottom" style="BORDER-BOTTOM: #000000 1px solid">&nbsp;</TD>
    <TD width="12%"
      align=right valign="bottom" style="BORDER-BOTTOM: #000000 1px solid"><B>57,392</B> </TD>
    <TD  width="2%"
    align=left valign="bottom" style="BORDER-BOTTOM: #000000 1px solid">&nbsp;</TD>
    <TD  width="1%"
    align=left valign="bottom" style="BORDER-BOTTOM: #000000 1px solid">&nbsp;</TD>
    <TD width="12%"
      align=right valign="bottom" style="BORDER-BOTTOM: #000000 1px solid">36,798 </TD>
    <TD  width="2%"
    align=left valign="bottom" style="BORDER-BOTTOM: #000000 1px solid">&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD width="10%" >&nbsp;</TD>
    <TD align=left valign="bottom" bgColor=#e6efff><B>Total</B> </TD>
    <TD
    width="1%" align=left valign="bottom" bgColor=#e6efff style="BORDER-BOTTOM: #000000 2px solid">&nbsp;</TD>
    <TD width="12%"
    align=right valign="bottom" bgColor=#e6efff style="BORDER-BOTTOM: #000000 2px solid"><B>60,439</B> </TD>
    <TD
    width="2%" align=left valign="bottom" bgColor=#e6efff style="BORDER-BOTTOM: #000000 2px solid">&nbsp;</TD>
    <TD
    width="1%" align=left valign="bottom" bgColor=#e6efff style="BORDER-BOTTOM: #000000 2px solid">&nbsp;</TD>
    <TD width="12%"
    align=right valign="bottom" bgColor=#e6efff style="BORDER-BOTTOM: #000000 2px solid">36,798 </TD>
    <TD
    width="2%" align=left valign="bottom" bgColor=#e6efff style="BORDER-BOTTOM: #000000 2px solid">&nbsp;</TD>
  </TR></TABLE>
<P style="MARGIN-LEFT: 10%" align=justify>Future tax assets have been recognized
to the extent the future taxable amounts related to taxable temporary
differences for which a future tax liability is recognized can be offset. We
believe it is more likely than not that we will realize the benefits of these
deductible differences, net of the existing valuation allowance at December 31,
2010.</P>
<P style="MARGIN-LEFT: 10%" align=justify>At December 31, the company has the
following estimated tax operating losses:</P>
<TABLE
style="BORDER-COLOR: black; BORDER-COLLAPSE: collapse; FONT-SIZE: 10pt; "
border=0 cellSpacing=0 cellPadding=0 width="100%">

  <TR vAlign=top>
    <TD width="10%"  >&nbsp;</TD>
    <TD align=left valign="bottom">&nbsp; </TD>
    <TD  width="1%" align=left valign="bottom">&nbsp;</TD>
    <TD width="12%" align=right valign="bottom"><B>2010</B> </TD>
    <TD  width="2%" align=left valign="bottom">&nbsp;</TD>
    <TD  width="1%" align=left valign="bottom">&nbsp;</TD>
    <TD width="12%" align=right valign="bottom"><B>2009</B> </TD>
    <TD  width="2%" align=left valign="bottom">&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD width="10%" >&nbsp;</TD>
    <TD align=left valign="bottom">&nbsp; </TD>
    <TD  width="1%"
    align=left valign="bottom" style="BORDER-BOTTOM: #000000 1px solid"><B></B></TD>
    <TD width="12%"
      align=right valign="bottom" style="BORDER-BOTTOM: #000000 1px solid"><STRONG>$</STRONG>&nbsp;</TD>
    <TD  width="2%"
    align=left valign="bottom" style="BORDER-BOTTOM: #000000 1px solid">&nbsp;</TD>
    <TD  width="1%"
    align=left valign="bottom" style="BORDER-BOTTOM: #000000 1px solid"></TD>
    <TD width="12%"
      align=right valign="bottom" style="BORDER-BOTTOM: #000000 1px solid"><STRONG>$</STRONG>&nbsp;</TD>
    <TD  width="2%"
    align=left valign="bottom" style="BORDER-BOTTOM: #000000 1px solid">&nbsp;</TD>
  </TR>
  <TR>
    <TD width="10%" >&nbsp;</TD>
    <TD valign="bottom">&nbsp; </TD>
    <TD  width="1%" valign="bottom">&nbsp;</TD>
    <TD width="12%" valign="bottom">&nbsp; </TD>
    <TD  width="2%" valign="bottom">&nbsp;</TD>
    <TD  width="1%" valign="bottom">&nbsp;</TD>
    <TD width="12%" valign="bottom">&nbsp; </TD>
    <TD  width="2%" valign="bottom">&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD width="10%" >&nbsp;</TD>
    <TD align=left valign="bottom" bgColor=#e6efff>Argentina </TD>
    <TD  width="1%" align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD width="12%" align=right valign="bottom" bgColor=#e6efff><B>8,635</B> </TD>
    <TD  width="2%" align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD  width="1%" align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD width="12%" align=right valign="bottom" bgColor=#e6efff>23,546 </TD>
    <TD  width="2%" align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD width="10%" >&nbsp;</TD>
    <TD align=left valign="bottom">Australia </TD>
    <TD  width="1%" align=left valign="bottom">&nbsp;</TD>
    <TD width="12%" align=right valign="bottom"><B>12,091</B> </TD>
    <TD  width="2%" align=left valign="bottom">&nbsp;</TD>
    <TD  width="1%" align=left valign="bottom">&nbsp;</TD>
    <TD width="12%" align=right valign="bottom">10,225 </TD>
    <TD  width="2%" align=left valign="bottom">&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD width="10%" >&nbsp;</TD>
    <TD align=left valign="bottom" bgColor=#e6efff>Canada </TD>
    <TD  width="1%" align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD width="12%" align=right valign="bottom" bgColor=#e6efff><B>354</B> </TD>
    <TD  width="2%" align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD  width="1%" align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD width="12%" align=right valign="bottom" bgColor=#e6efff>28,110 </TD>
    <TD  width="2%" align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD width="10%" >&nbsp;</TD>
    <TD align=left valign="bottom">Chile </TD>
    <TD  width="1%" align=left valign="bottom">&nbsp;</TD>
    <TD width="12%" align=right valign="bottom"><B>144</B> </TD>
    <TD  width="2%" align=left valign="bottom">&nbsp;</TD>
    <TD  width="1%" align=left valign="bottom">&nbsp;</TD>
    <TD width="12%" align=right valign="bottom">131 </TD>
    <TD  width="2%" align=left valign="bottom">&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD width="10%" >&nbsp;</TD>
    <TD align=left valign="bottom" bgColor=#e6efff>Mexico </TD>
    <TD  width="1%" align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD width="12%" align=right valign="bottom" bgColor=#e6efff><B>53,962</B> </TD>
    <TD  width="2%" align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD  width="1%" align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD width="12%" align=right valign="bottom" bgColor=#e6efff>45,043 </TD>
    <TD  width="2%" align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD width="10%" >&nbsp;</TD>
    <TD align=left valign="bottom">Peru </TD>
    <TD  width="1%" align=left valign="bottom">&nbsp;</TD>
    <TD width="12%" align=right valign="bottom"><B>1,222</B> </TD>
    <TD  width="2%" align=left valign="bottom">&nbsp;</TD>
    <TD  width="1%" align=left valign="bottom">&nbsp;</TD>
    <TD width="12%" align=right valign="bottom">439 </TD>
    <TD  width="2%" align=left valign="bottom">&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD width="10%" >&nbsp;</TD>
    <TD align=left valign="bottom" bgColor=#e6efff>U.S.A. </TD>
    <TD  width="1%" align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD width="12%" align=right valign="bottom" bgColor=#e6efff><B>4,680</B> </TD>
    <TD  width="2%" align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD  width="1%" align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD width="12%" align=right valign="bottom" bgColor=#e6efff>4,370 </TD>
    <TD  width="2%"
  align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
  </TR></TABLE>
<P style="MARGIN-LEFT: 10%" align=justify>The operating losses expire between
2011 and 2029, with the exception of those for Chile and Australia which are
available indefinitely to reduce future taxable income.</P>
<P align=right>30</P>
<HR style="PAGE-BREAK-AFTER: always" align=center color=black SIZE=5
width="100%" noShade>
<!--$$/page=--><A name=page_38></A><BR>
<TABLE
style="BORDER-COLOR: black; BORDER-COLLAPSE: collapse; FONT-SIZE: 10pt; "
border=0 cellSpacing=0 cellPadding=0 width="100%">

  <TR vAlign=top>
    <TD align=left><B>Silver Standard Resources Inc.</B> </TD></TR>
  <TR vAlign=top>
    <TD align=left>Notes to Consolidated Financial Statements </TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>December 31, 2010,
      2009 and 2008 </TD></TR>
  <TR vAlign=top>
    <TD align=left>(tabular amounts expressed in thousands of United States
      dollars unless otherwise stated) </TD></TR></TABLE><BR>
<TABLE
style="BORDER-COLOR: black; BORDER-COLLAPSE: collapse; FONT-SIZE: 10pt; "
border=0 cellSpacing=0 cellPadding=0 width="100%" BCLLIST>

  <TR>
    <TD vAlign=top width="5%"><B>17</B> </TD>
    <TD>
      <P align=justify><B>SUPPLEMENTARY CASH FLOW INFORMATION</B></P></TD></TR>
  <TR>
    <TD width="5%">&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
  <TR>
    <TD width="5%"></TD>
    <TD>
      <P align=justify>The following table summarizes the changes in operating
      working capital items, non-cash investing activities and interest and
      taxes paid during the years ended December 31, 2010, 2009 and
  2008:</P></TD></TR></TABLE><BR>
<DIV align=right>
<TABLE
style="BORDER-COLOR: black; BORDER-COLLAPSE: collapse; FONT-SIZE: 10pt; "
border=0 cellSpacing=0 cellPadding=0 width="95%">

  <TR vAlign=top>
    <TD align=left valign="bottom"><B>Decrease (increase) in non-cash working</B> </TD>
    <TD  width="1%" align=left valign="bottom">&nbsp;</TD>
    <TD width="10%" align=right valign="bottom"><B>2010</B> </TD>
    <TD  width="2%" align=left valign="bottom">&nbsp;</TD>
    <TD  width="1%" align=left valign="bottom">&nbsp;</TD>
    <TD width="10%" align=right valign="bottom"><B>2009</B> </TD>
    <TD  width="2%" align=left valign="bottom">&nbsp;</TD>
    <TD  width="1%" align=left valign="bottom">&nbsp;</TD>
    <TD width="10%" align=right valign="bottom"><B>2008</B> </TD>
    <TD  width="2%" align=left valign="bottom">&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left valign="bottom">&nbsp; &nbsp;<B>capital activities</B> </TD>
    <TD  width="1%"
    align=left valign="bottom" style="BORDER-BOTTOM: #000000 1px solid"><B></B></TD>
    <TD width="10%"
      align=right valign="bottom" style="BORDER-BOTTOM: #000000 1px solid"><STRONG>$</STRONG>&nbsp;</TD>
    <TD  width="2%"
    align=left valign="bottom" style="BORDER-BOTTOM: #000000 1px solid">&nbsp;</TD>
    <TD  width="1%"
    align=left valign="bottom" style="BORDER-BOTTOM: #000000 1px solid"></TD>
    <TD width="10%"
      align=right valign="bottom" style="BORDER-BOTTOM: #000000 1px solid"><STRONG>$</STRONG>&nbsp;</TD>
    <TD  width="2%"
    align=left valign="bottom" style="BORDER-BOTTOM: #000000 1px solid">&nbsp;</TD>
    <TD  width="1%"
    align=left valign="bottom" style="BORDER-BOTTOM: #000000 1px solid"><B></B></TD>
    <TD width="10%"
      align=right valign="bottom" style="BORDER-BOTTOM: #000000 1px solid"><STRONG>$</STRONG>&nbsp;</TD>
    <TD  width="2%"
    align=left valign="bottom" style="BORDER-BOTTOM: #000000 1px solid">&nbsp;</TD>
  </TR>
  <TR>
    <TD valign="bottom">&nbsp; </TD>
    <TD  width="1%" valign="bottom">&nbsp;</TD>
    <TD width="10%" valign="bottom">&nbsp; </TD>
    <TD  width="2%" valign="bottom">&nbsp;</TD>
    <TD  width="1%" valign="bottom">&nbsp;</TD>
    <TD width="10%" valign="bottom">&nbsp; </TD>
    <TD  width="2%" valign="bottom">&nbsp;</TD>
    <TD  width="1%" valign="bottom">&nbsp;</TD>
    <TD width="10%" valign="bottom">&nbsp; </TD>
    <TD  width="2%" valign="bottom">&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left valign="bottom" bgColor=#e6efff>Accounts receivable </TD>
    <TD  width="1%" align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD width="10%" align=right valign="bottom" bgColor=#e6efff><B>(16,478</B></TD>
    <TD  width="2%" align=left valign="bottom" bgColor=#e6efff><B>)</B> </TD>
    <TD  width="1%" align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD width="10%" align=right valign="bottom" bgColor=#e6efff>(3,584</TD>
    <TD  width="2%" align=left valign="bottom" bgColor=#e6efff>) </TD>
    <TD  width="1%" align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD width="10%" align=right valign="bottom" bgColor=#e6efff>(373</TD>
    <TD  width="2%" align=left valign="bottom" bgColor=#e6efff>) </TD>
  </TR>
  <TR vAlign=top>
    <TD align=left valign="bottom">Prepaid expenses and deposits </TD>
    <TD  width="1%" align=left valign="bottom">&nbsp;</TD>
    <TD width="10%" align=right valign="bottom"><B>(3,767</B></TD>
    <TD  width="2%" align=left valign="bottom"><B>)</B> </TD>
    <TD  width="1%" align=left valign="bottom">&nbsp;</TD>
    <TD width="10%" align=right valign="bottom">(907</TD>
    <TD  width="2%" align=left valign="bottom">) </TD>
    <TD  width="1%" align=left valign="bottom">&nbsp;</TD>
    <TD width="10%" align=right valign="bottom">(1,692</TD>
    <TD  width="2%" align=left valign="bottom">) </TD>
  </TR>
  <TR vAlign=top>
    <TD align=left valign="bottom" bgColor=#e6efff>Inventory </TD>
    <TD  width="1%" align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD width="10%" align=right valign="bottom" bgColor=#e6efff><B>(20,245</B></TD>
    <TD  width="2%" align=left valign="bottom" bgColor=#e6efff><B>)</B> </TD>
    <TD  width="1%" align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD width="10%" align=right valign="bottom" bgColor=#e6efff>(22,501</TD>
    <TD  width="2%" align=left valign="bottom" bgColor=#e6efff>) </TD>
    <TD  width="1%" align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD width="10%" align=right valign="bottom" bgColor=#e6efff>- </TD>
    <TD  width="2%" align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left valign="bottom">Restricted cash </TD>
    <TD  width="1%" align=left valign="bottom">&nbsp;</TD>
    <TD width="10%" align=right valign="bottom"><B>(201</B></TD>
    <TD  width="2%" align=left valign="bottom"><B>)</B> </TD>
    <TD  width="1%" align=left valign="bottom">&nbsp;</TD>
    <TD width="10%" align=right valign="bottom">- </TD>
    <TD  width="2%" align=left valign="bottom">&nbsp;</TD>
    <TD  width="1%" align=left valign="bottom">&nbsp;</TD>
    <TD width="10%" align=right valign="bottom">- </TD>
    <TD  width="2%" align=left valign="bottom">&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left valign="bottom" bgColor=#e6efff>Accounts payable, accrued liabilities and
      current portion of asset retirement obligation </TD>
    <TD  width="1%" align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD width="10%" align=right valign="bottom" bgColor=#e6efff><B>21,447</B> </TD>
    <TD  width="2%" align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD  width="1%" align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD width="10%" align=right valign="bottom" bgColor=#e6efff>3,985 </TD>
    <TD  width="2%" align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD  width="1%" align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD width="10%" align=right valign="bottom" bgColor=#e6efff>1,345 </TD>
    <TD  width="2%" align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left valign="bottom">Accrued interest on convertible debt </TD>
    <TD  width="1%" align=left valign="bottom">&nbsp;</TD>
    <TD width="10%" align=right valign="bottom"><B>-</B> </TD>
    <TD  width="2%" align=left valign="bottom">&nbsp;</TD>
    <TD  width="1%" align=left valign="bottom">&nbsp;</TD>
    <TD width="10%" align=right valign="bottom">10 </TD>
    <TD  width="2%" align=left valign="bottom">&nbsp;</TD>
    <TD  width="1%" align=left valign="bottom">&nbsp;</TD>
    <TD width="10%" align=right valign="bottom">2,229 </TD>
    <TD  width="2%" align=left valign="bottom">&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left valign="bottom" bgColor=#e6efff>Current portion of future income tax
      liability </TD>
    <TD
    width="1%" align=left valign="bottom" bgColor=#e6efff style="BORDER-BOTTOM: #000000 1px solid">&nbsp;</TD>
    <TD width="10%"
    align=right valign="bottom" bgColor=#e6efff style="BORDER-BOTTOM: #000000 1px solid"><B>3,047</B> </TD>
    <TD
    width="2%" align=left valign="bottom" bgColor=#e6efff style="BORDER-BOTTOM: #000000 1px solid">&nbsp;</TD>
    <TD
    width="1%" align=left valign="bottom" bgColor=#e6efff style="BORDER-BOTTOM: #000000 1px solid">&nbsp;</TD>
    <TD width="10%"
    align=right valign="bottom" bgColor=#e6efff style="BORDER-BOTTOM: #000000 1px solid">(12,006</TD>
    <TD
    width="2%" align=left valign="bottom" bgColor=#e6efff style="BORDER-BOTTOM: #000000 1px solid">) </TD>
    <TD
    width="1%" align=left valign="bottom" bgColor=#e6efff style="BORDER-BOTTOM: #000000 1px solid">&nbsp;</TD>
    <TD width="10%"
    align=right valign="bottom" bgColor=#e6efff style="BORDER-BOTTOM: #000000 1px solid">11,338 </TD>
    <TD
    width="2%" align=left valign="bottom" bgColor=#e6efff style="BORDER-BOTTOM: #000000 1px solid">&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left valign="bottom">&nbsp; </TD>
    <TD  width="1%"
    align=left valign="bottom" style="BORDER-BOTTOM: #000000 2px solid">&nbsp;</TD>
    <TD width="10%"
      align=right valign="bottom" style="BORDER-BOTTOM: #000000 2px solid"><B>(16,197</B></TD>
    <TD  width="2%"
    align=left valign="bottom" style="BORDER-BOTTOM: #000000 2px solid"><B>)</B> </TD>
    <TD  width="1%"
    align=left valign="bottom" style="BORDER-BOTTOM: #000000 2px solid">&nbsp;</TD>
    <TD width="10%"
      align=right valign="bottom" style="BORDER-BOTTOM: #000000 2px solid">(35,003</TD>
    <TD  width="2%"
    align=left valign="bottom" style="BORDER-BOTTOM: #000000 2px solid">) </TD>
    <TD  width="1%"
    align=left valign="bottom" style="BORDER-BOTTOM: #000000 2px solid">&nbsp;</TD>
    <TD width="10%"
      align=right valign="bottom" style="BORDER-BOTTOM: #000000 2px solid">12,847 </TD>
    <TD  width="2%"
    align=left valign="bottom" style="BORDER-BOTTOM: #000000 2px solid">&nbsp;</TD>
  </TR>
  <TR>
    <TD valign="bottom" bgColor=#e6efff>&nbsp; </TD>
    <TD  width="1%" valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD width="10%" valign="bottom" bgColor=#e6efff>&nbsp; </TD>
    <TD  width="2%" valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD  width="1%" valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD width="10%" valign="bottom" bgColor=#e6efff>&nbsp; </TD>
    <TD  width="2%" valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD  width="1%" valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD width="10%" valign="bottom" bgColor=#e6efff>&nbsp; </TD>
    <TD  width="2%" valign="bottom" bgColor=#e6efff>&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left valign="bottom"><B>Non-cash investing activities</B> </TD>
    <TD  width="1%" align=left valign="bottom">&nbsp;</TD>
    <TD width="10%" align=left valign="bottom">&nbsp; </TD>
    <TD  width="2%" align=left valign="bottom">&nbsp;</TD>
    <TD  width="1%" align=left valign="bottom">&nbsp;</TD>
    <TD width="10%" align=left valign="bottom">&nbsp; </TD>
    <TD  width="2%" align=left valign="bottom">&nbsp;</TD>
    <TD  width="1%" align=left valign="bottom">&nbsp;</TD>
    <TD width="10%" align=left valign="bottom">&nbsp; </TD>
    <TD  width="2%" align=left valign="bottom">&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left valign="bottom" bgColor=#e6efff>&nbsp;&nbsp;&nbsp;&nbsp; Promissory note
      received for sale of Snowfield and Brucejack properties </TD>
    <TD  width="1%" align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD width="10%" align=right valign="bottom" bgColor=#e6efff><B>39,069</B> </TD>
    <TD  width="2%" align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD  width="1%" align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD width="10%" align=right valign="bottom" bgColor=#e6efff>- </TD>
    <TD  width="2%" align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD  width="1%" align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD width="10%" align=right valign="bottom" bgColor=#e6efff>- </TD>
    <TD  width="2%" align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left valign="bottom">&nbsp; &nbsp; &nbsp;Shares received for sale of mineral
      properties </TD>
    <TD  width="1%"
    align=left valign="bottom" style="BORDER-BOTTOM: #000000 1px solid">&nbsp;</TD>
    <TD width="10%"
      align=right valign="bottom" style="BORDER-BOTTOM: #000000 1px solid"><B>187,202</B> </TD>
    <TD  width="2%"
    align=left valign="bottom" style="BORDER-BOTTOM: #000000 1px solid">&nbsp;</TD>
    <TD  width="1%"
    align=left valign="bottom" style="BORDER-BOTTOM: #000000 1px solid">&nbsp;</TD>
    <TD width="10%" align=right valign="bottom" style="BORDER-BOTTOM: #000000 1px solid">388    </TD>
    <TD  width="2%"
    align=left valign="bottom" style="BORDER-BOTTOM: #000000 1px solid">&nbsp;</TD>
    <TD  width="1%"
    align=left valign="bottom" style="BORDER-BOTTOM: #000000 1px solid">&nbsp;</TD>
    <TD width="10%" align=right valign="bottom" style="BORDER-BOTTOM: #000000 1px solid">- </TD>
    <TD  width="2%"
    align=left valign="bottom" style="BORDER-BOTTOM: #000000 1px solid">&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left valign="bottom" bgColor=#e6efff>&nbsp; </TD>
    <TD  width="1%" align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD width="10%" align=right valign="bottom" bgColor=#e6efff><B>226,271</B> </TD>
    <TD  width="2%" align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD  width="1%" align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD width="10%" align=right valign="bottom" bgColor=#e6efff>388 </TD>
    <TD  width="2%" align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD  width="1%" align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD width="10%" align=right valign="bottom" bgColor=#e6efff>- </TD>
    <TD  width="2%" align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
  </TR>
  <TR>
    <TD valign="bottom">&nbsp; </TD>
    <TD  width="1%" valign="bottom">&nbsp;</TD>
    <TD width="10%" valign="bottom">&nbsp; </TD>
    <TD  width="2%" valign="bottom">&nbsp;</TD>
    <TD  width="1%" valign="bottom">&nbsp;</TD>
    <TD width="10%" valign="bottom">&nbsp; </TD>
    <TD  width="2%" valign="bottom">&nbsp;</TD>
    <TD  width="1%" valign="bottom">&nbsp;</TD>
    <TD width="10%" valign="bottom">&nbsp; </TD>
    <TD  width="2%" valign="bottom">&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left valign="bottom" bgColor=#e6efff><B>Interest and taxes paid</B> </TD>
    <TD  width="1%" align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD width="10%" align=left valign="bottom" bgColor=#e6efff>&nbsp; </TD>
    <TD  width="2%" align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD  width="1%" align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD width="10%" align=left valign="bottom" bgColor=#e6efff>&nbsp; </TD>
    <TD  width="2%" align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD  width="1%" align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD width="10%" align=left valign="bottom" bgColor=#e6efff>&nbsp; </TD>
    <TD  width="2%" align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left valign="bottom">&nbsp; &nbsp; &nbsp;Interest paid </TD>
    <TD  width="1%" align=left valign="bottom">&nbsp;</TD>
    <TD width="10%" align=right valign="bottom"><B>6,210</B> </TD>
    <TD  width="2%" align=left valign="bottom">&nbsp;</TD>
    <TD  width="1%" align=left valign="bottom">&nbsp;</TD>
    <TD width="10%" align=right valign="bottom">6,210 </TD>
    <TD  width="2%" align=left valign="bottom">&nbsp;</TD>
    <TD  width="1%" align=left valign="bottom">&nbsp;</TD>
    <TD width="10%" align=right valign="bottom">3,117 </TD>
    <TD  width="2%" align=left valign="bottom">&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left valign="bottom" bgColor=#e6efff>&nbsp; &nbsp; &nbsp;Taxes paid </TD>
    <TD
    width="1%" align=left valign="bottom" bgColor=#e6efff style="BORDER-BOTTOM: #000000 1px solid">&nbsp;</TD>
    <TD width="10%"
    align=right valign="bottom" bgColor=#e6efff style="BORDER-BOTTOM: #000000 1px solid"><B>-</B> </TD>
    <TD
    width="2%" align=left valign="bottom" bgColor=#e6efff style="BORDER-BOTTOM: #000000 1px solid">&nbsp;</TD>
    <TD
    width="1%" align=left valign="bottom" bgColor=#e6efff style="BORDER-BOTTOM: #000000 1px solid">&nbsp;</TD>
    <TD width="10%"
    align=right valign="bottom" bgColor=#e6efff style="BORDER-BOTTOM: #000000 1px solid">9,100 </TD>
    <TD
    width="2%" align=left valign="bottom" bgColor=#e6efff style="BORDER-BOTTOM: #000000 1px solid">&nbsp;</TD>
    <TD
    width="1%" align=left valign="bottom" bgColor=#e6efff style="BORDER-BOTTOM: #000000 1px solid">&nbsp;</TD>
    <TD width="10%"
    align=right valign="bottom" bgColor=#e6efff style="BORDER-BOTTOM: #000000 1px solid">- </TD>
    <TD
    width="2%" align=left valign="bottom" bgColor=#e6efff style="BORDER-BOTTOM: #000000 1px solid">&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left valign="bottom">&nbsp; </TD>
    <TD  width="1%"
    align=left valign="bottom" style="BORDER-BOTTOM: #000000 2px solid">&nbsp;</TD>
    <TD width="10%"
      align=right valign="bottom" style="BORDER-BOTTOM: #000000 2px solid"><B>6,210</B> </TD>
    <TD  width="2%"
    align=left valign="bottom" style="BORDER-BOTTOM: #000000 2px solid">&nbsp;</TD>
    <TD  width="1%"
    align=left valign="bottom" style="BORDER-BOTTOM: #000000 2px solid">&nbsp;</TD>
    <TD width="10%"
      align=right valign="bottom" style="BORDER-BOTTOM: #000000 2px solid">15,310 </TD>
    <TD  width="2%"
    align=left valign="bottom" style="BORDER-BOTTOM: #000000 2px solid">&nbsp;</TD>
    <TD  width="1%"
    align=left valign="bottom" style="BORDER-BOTTOM: #000000 2px solid">&nbsp;</TD>
    <TD width="10%" align=right valign="bottom" style="BORDER-BOTTOM: #000000 2px solid">3,117    </TD>
    <TD  width="2%"
    align=left valign="bottom" style="BORDER-BOTTOM: #000000 2px solid">&nbsp;</TD>
  </TR></TABLE></DIV><BR>
<TABLE
style="BORDER-COLOR: black; BORDER-COLLAPSE: collapse; FONT-SIZE: 10pt; "
border=0 cellSpacing=0 cellPadding=0 width="100%">

  <TR vAlign=top>
    <TD align=left ><B>18</B> </TD>
    <TD width="95%" align=left><B>OTHER INCOME (EXPENSE)</B>
</TD></TR></TABLE><BR>
<DIV align=right>
<TABLE
style="BORDER-COLOR: black; BORDER-COLLAPSE: collapse; FONT-SIZE: 10pt; "
border=0 cellSpacing=0 cellPadding=0 width="95%">

  <TR vAlign=top>
    <TD align=left valign="bottom">&nbsp; </TD>
    <TD  width="1%" align=left valign="bottom">&nbsp;</TD>
    <TD width="10%" align=center valign="bottom"><B>Note</B> </TD>
    <TD  width="2%" align=left valign="bottom">&nbsp;</TD>
    <TD  width="1%" align=left valign="bottom">&nbsp;</TD>
    <TD width="10%" align=right valign="bottom"><B>2010</B> </TD>
    <TD  width="2%" align=left valign="bottom">&nbsp;</TD>
    <TD  width="1%" align=left valign="bottom">&nbsp;</TD>
    <TD width="10%" align=right valign="bottom"><B>2009</B> </TD>
    <TD  width="2%" align=left valign="bottom">&nbsp;</TD>
    <TD  width="1%" align=left valign="bottom">&nbsp;</TD>
    <TD width="10%" align=right valign="bottom"><B>2008</B> </TD>
    <TD  width="2%" align=left valign="bottom">&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left valign="bottom">&nbsp; </TD>
    <TD  width="1%" align=left valign="bottom">&nbsp;</TD>
    <TD width="10%" align=center valign="bottom">&nbsp; </TD>
    <TD  width="2%" align=left valign="bottom">&nbsp;</TD>
    <TD  width="1%"
    align=left valign="bottom" style="BORDER-BOTTOM: #000000 1px solid"><B></B></TD>
    <TD width="10%"
      align=right valign="bottom" style="BORDER-BOTTOM: #000000 1px solid"><STRONG>$</STRONG>&nbsp;</TD>
    <TD  width="2%"
    align=left valign="bottom" style="BORDER-BOTTOM: #000000 1px solid">&nbsp;</TD>
    <TD  width="1%"
    align=left valign="bottom" style="BORDER-BOTTOM: #000000 1px solid"><B></B></TD>
    <TD width="10%"
      align=right valign="bottom" style="BORDER-BOTTOM: #000000 1px solid"><STRONG>$</STRONG>&nbsp;</TD>
    <TD  width="2%"
    align=left valign="bottom" style="BORDER-BOTTOM: #000000 1px solid">&nbsp;</TD>
    <TD  width="1%"
    align=left valign="bottom" style="BORDER-BOTTOM: #000000 1px solid"><B></B></TD>
    <TD width="10%"
      align=right valign="bottom" style="BORDER-BOTTOM: #000000 1px solid"><STRONG>$</STRONG>&nbsp;</TD>
    <TD  width="2%"
    align=left valign="bottom" style="BORDER-BOTTOM: #000000 1px solid">&nbsp;</TD>
  </TR>
  <TR>
    <TD valign="bottom">&nbsp; </TD>
    <TD  width="1%" valign="bottom">&nbsp;</TD>
    <TD width="10%" align=center valign="bottom">&nbsp; </TD>
    <TD  width="2%" valign="bottom">&nbsp;</TD>
    <TD  width="1%" valign="bottom">&nbsp;</TD>
    <TD width="10%" valign="bottom">&nbsp; </TD>
    <TD  width="2%" valign="bottom">&nbsp;</TD>
    <TD  width="1%" valign="bottom">&nbsp;</TD>
    <TD width="10%" valign="bottom">&nbsp; </TD>
    <TD  width="2%" valign="bottom">&nbsp;</TD>
    <TD  width="1%" valign="bottom">&nbsp;</TD>
    <TD width="10%" valign="bottom">&nbsp; </TD>
    <TD  width="2%" valign="bottom">&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left valign="bottom" bgColor=#e6efff>Gain (loss) on sale of marketable
      securities and other investments </TD>
    <TD  width="1%" align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD width="10%" align=center valign="bottom" bgColor=#e6efff>6b, 7 </TD>
    <TD  width="2%" align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD  width="1%" align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD width="10%" align=right valign="bottom" bgColor=#e6efff><B>3,114</B> </TD>
    <TD  width="2%" align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD  width="1%" align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD width="10%" align=right valign="bottom" bgColor=#e6efff>(1,279</TD>
    <TD  width="2%" align=left valign="bottom" bgColor=#e6efff>) </TD>
    <TD  width="1%" align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD width="10%" align=right valign="bottom" bgColor=#e6efff>2,090 </TD>
    <TD  width="2%" align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left valign="bottom">Unrealized gain (loss) on financial instruments
      held-for-trading </TD>
    <TD  width="1%" align=left valign="bottom">&nbsp;</TD>
    <TD width="10%" align=center valign="bottom">6c </TD>
    <TD  width="2%" align=left valign="bottom">&nbsp;</TD>
    <TD  width="1%" align=left valign="bottom">&nbsp;</TD>
    <TD width="10%" align=right valign="bottom"><B>(102</B></TD>
    <TD  width="2%" align=left valign="bottom"><B>)</B> </TD>
    <TD  width="1%" align=left valign="bottom">&nbsp;</TD>
    <TD width="10%" align=right valign="bottom">412 </TD>
    <TD  width="2%" align=left valign="bottom">&nbsp;</TD>
    <TD  width="1%" align=left valign="bottom">&nbsp;</TD>
    <TD width="10%" align=right valign="bottom">114 </TD>
    <TD  width="2%" align=left valign="bottom">&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left valign="bottom" bgColor=#e6efff>Write-down of marketable securities and
      other investments, net of interest received </TD>
    <TD  width="1%" align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD width="10%" align=center valign="bottom" bgColor=#e6efff>6b, 7 </TD>
    <TD  width="2%" align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD  width="1%" align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD width="10%" align=right valign="bottom" bgColor=#e6efff><B>-</B> </TD>
    <TD  width="2%" align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD  width="1%" align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD width="10%" align=right valign="bottom" bgColor=#e6efff>534 </TD>
    <TD  width="2%" align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD  width="1%" align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD width="10%" align=right valign="bottom" bgColor=#e6efff>(22,794</TD>
    <TD  width="2%" align=left valign="bottom" bgColor=#e6efff>) </TD>
  </TR>
  <TR vAlign=top>
    <TD align=left valign="bottom">Write-down of convertible debenture receivable </TD>
    <TD  width="1%" align=left valign="bottom">&nbsp;</TD>
    <TD width="10%" align=center valign="bottom">6c </TD>
    <TD  width="2%" align=left valign="bottom">&nbsp;</TD>
    <TD  width="1%" align=left valign="bottom">&nbsp;</TD>
    <TD width="10%" align=right valign="bottom"><B>-</B> </TD>
    <TD  width="2%" align=left valign="bottom">&nbsp;</TD>
    <TD  width="1%" align=left valign="bottom">&nbsp;</TD>
    <TD width="10%" align=right valign="bottom">(2,002</TD>
    <TD  width="2%" align=left valign="bottom">) </TD>
    <TD  width="1%" align=left valign="bottom">&nbsp;</TD>
    <TD width="10%" align=right valign="bottom">- </TD>
    <TD  width="2%" align=left valign="bottom">&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left valign="bottom" bgColor=#e6efff>Write down of mineral property and
      property, plant and equipment </TD>
    <TD  width="1%" align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD width="10%" align=center valign="bottom" bgColor=#e6efff>10 </TD>
    <TD  width="2%" align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD  width="1%" align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD width="10%" align=right valign="bottom" bgColor=#e6efff><B>(238</B></TD>
    <TD  width="2%" align=left valign="bottom" bgColor=#e6efff><B>)</B> </TD>
    <TD  width="1%" align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD width="10%" align=right valign="bottom" bgColor=#e6efff>(377</TD>
    <TD  width="2%" align=left valign="bottom" bgColor=#e6efff>) </TD>
    <TD  width="1%" align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD width="10%" align=right valign="bottom" bgColor=#e6efff>- </TD>
    <TD  width="2%" align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left valign="bottom">Gain on sale of silver bullion </TD>
    <TD  width="1%" align=left valign="bottom">&nbsp;</TD>
    <TD width="10%" align=center valign="bottom">4 </TD>
    <TD  width="2%" align=left valign="bottom">&nbsp;</TD>
    <TD  width="1%" align=left valign="bottom">&nbsp;</TD>
    <TD width="10%" align=right valign="bottom"><B>-</B> </TD>
    <TD  width="2%" align=left valign="bottom">&nbsp;</TD>
    <TD  width="1%" align=left valign="bottom">&nbsp;</TD>
    <TD width="10%" align=right valign="bottom">- </TD>
    <TD  width="2%" align=left valign="bottom">&nbsp;</TD>
    <TD  width="1%" align=left valign="bottom">&nbsp;</TD>
    <TD width="10%" align=right valign="bottom">23,699 </TD>
    <TD  width="2%" align=left valign="bottom">&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left valign="bottom" bgColor=#e6efff>Other expenses </TD>
    <TD  width="1%" align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD width="10%" align=center valign="bottom" bgColor=#e6efff>&nbsp; </TD>
    <TD  width="2%" align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD
    width="1%" align=left valign="bottom" bgColor=#e6efff style="BORDER-BOTTOM: #000000 1px solid">&nbsp;</TD>
    <TD width="10%"
    align=right valign="bottom" bgColor=#e6efff style="BORDER-BOTTOM: #000000 1px solid"><B>(61</B></TD>
    <TD
    width="2%" align=left valign="bottom" bgColor=#e6efff style="BORDER-BOTTOM: #000000 1px solid"><B>)</B> </TD>
    <TD
    width="1%" align=left valign="bottom" bgColor=#e6efff style="BORDER-BOTTOM: #000000 1px solid">&nbsp;</TD>
    <TD width="10%"
    align=right valign="bottom" bgColor=#e6efff style="BORDER-BOTTOM: #000000 1px solid">- </TD>
    <TD
    width="2%" align=left valign="bottom" bgColor=#e6efff style="BORDER-BOTTOM: #000000 1px solid">&nbsp;</TD>
    <TD
    width="1%" align=left valign="bottom" bgColor=#e6efff style="BORDER-BOTTOM: #000000 1px solid">&nbsp;</TD>
    <TD width="10%"
    align=right valign="bottom" bgColor=#e6efff style="BORDER-BOTTOM: #000000 1px solid">- </TD>
    <TD
    width="2%" align=left valign="bottom" bgColor=#e6efff style="BORDER-BOTTOM: #000000 1px solid">&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left valign="bottom">&nbsp; </TD>
    <TD  width="1%" align=left valign="bottom">&nbsp;</TD>
    <TD width="10%" align=left valign="bottom">&nbsp; </TD>
    <TD  width="2%" align=left valign="bottom">&nbsp;</TD>
    <TD  width="1%"
    align=left valign="bottom" style="BORDER-BOTTOM: #000000 2px solid">&nbsp;</TD>
    <TD width="10%"
      align=right valign="bottom" style="BORDER-BOTTOM: #000000 2px solid"><B>2,713</B> </TD>
    <TD  width="2%"
    align=left valign="bottom" style="BORDER-BOTTOM: #000000 2px solid">&nbsp;</TD>
    <TD  width="1%"
    align=left valign="bottom" style="BORDER-BOTTOM: #000000 2px solid">&nbsp;</TD>
    <TD width="10%"
    align=right valign="bottom" style="BORDER-BOTTOM: #000000 2px solid">(2,712</TD>
    <TD  width="2%"
    align=left valign="bottom" style="BORDER-BOTTOM: #000000 2px solid">) </TD>
    <TD  width="1%"
    align=left valign="bottom" style="BORDER-BOTTOM: #000000 2px solid">&nbsp;</TD>
    <TD width="10%" align=right valign="bottom" style="BORDER-BOTTOM: #000000 2px solid">3,109    </TD>
    <TD  width="2%"
    align=left valign="bottom" style="BORDER-BOTTOM: #000000 2px solid">&nbsp;</TD>
  </TR></TABLE></DIV>
<P align=right>31</P>
<HR style="PAGE-BREAK-AFTER: always" align=center color=black SIZE=5
width="100%" noShade>
<!--$$/page=--><A name=page_39></A><BR>
<TABLE
style="BORDER-COLOR: black; BORDER-COLLAPSE: collapse; FONT-SIZE: 10pt; "
border=0 cellSpacing=0 cellPadding=0 width="100%">

  <TR vAlign=top>
    <TD align=left><B>Silver Standard Resources Inc.</B> </TD></TR>
  <TR vAlign=top>
    <TD align=left>Notes to Consolidated Financial Statements </TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>December 31, 2010,
      2009 and 2008 </TD></TR>
  <TR vAlign=top>
    <TD align=left>(tabular amounts expressed in thousands of United States
      dollars unless otherwise stated) </TD></TR></TABLE><BR>
<TABLE
style="BORDER-COLOR: black; BORDER-COLLAPSE: collapse; FONT-SIZE: 10pt; "
border=0 cellSpacing=0 cellPadding=0 width="100%" BCLLIST>

  <TR>
    <TD vAlign=top width="5%"><B>19</B> </TD>
    <TD>
      <P align=justify><B>SEGMENTED FINANCIAL INFORMATION</B></P></TD></TR>
  <TR>
    <TD width="5%">&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
  <TR>
    <TD width="5%"></TD>
    <TD>
      <P align=justify>All of our operations are within the mining industry and
      our major product is silver concentrate. Our activities include the
      exploration and development of silver-dominant mineral properties located
      in seven countries and the production of silver concentrate at the
      Pirquitas mine in Argentina. The reported segments are those operations
      whose operating results are reviewed by the Chief Executive Officer on a
      regular basis. Our exploration activities have been aggregated and
      reported as a non-operating segment because total exploration assets
      exceeded 10% of our total consolidated assets.</P></TD></TR>
  <TR>
    <TD width="5%">&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
  <TR>
    <TD width="5%"></TD>
    <TD>
      <P align=justify>Our reportable segments for the year ended December 31,
      2010 are as follows:</P></TD></TR></TABLE><BR>
<TABLE
style="BORDER-COLOR: black; BORDER-COLLAPSE: collapse; FONT-SIZE: 8pt; "
border=0 cellSpacing=0 cellPadding=0 width="100%">

  <TR vAlign=top>
    <TD width="5%"  >&nbsp;</TD>
    <TD align=left valign="bottom">&nbsp; </TD>
    <TD  width="1%" align=left valign="bottom">&nbsp;</TD>
    <TD width="8%" align=left valign="bottom">&nbsp; </TD>
    <TD  width="2%" align=left valign="bottom">&nbsp;</TD>
    <TD  width="1%"
    align=left valign="bottom" style="BORDER-BOTTOM: #000000 1px solid">&nbsp;</TD>
    <TD width="41%" colSpan=10
    align=center valign="bottom" style="BORDER-BOTTOM: #000000 1px solid"><B>December 31, 2010</B> </TD>
    <TD  width="2%"
    align=left valign="bottom" style="BORDER-BOTTOM: #000000 1px solid">&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD width="5%" >&nbsp;</TD>
    <TD align=left valign="bottom">&nbsp; </TD>
    <TD  width="1%" align=left valign="bottom">&nbsp;</TD>
    <TD width="8%" align=left valign="bottom">&nbsp; </TD>
    <TD  width="2%" align=left valign="bottom">&nbsp;</TD>
    <TD  width="1%" align=left valign="bottom">&nbsp;</TD>
    <TD width="8%" align=left valign="bottom">&nbsp; </TD>
    <TD  width="2%" align=left valign="bottom">&nbsp;</TD>
    <TD  width="1%" align=left valign="bottom">&nbsp;</TD>
    <TD width="8%" align=right valign="bottom"><B>Exploration and</B> </TD>
    <TD  width="2%" align=left valign="bottom">&nbsp;</TD>
    <TD  width="1%" align=left valign="bottom">&nbsp;</TD>
    <TD width="8%" align=left valign="bottom">&nbsp; </TD>
    <TD  width="2%" align=left valign="bottom">&nbsp;</TD>
    <TD  width="1%" align=left valign="bottom">&nbsp;</TD>
    <TD width="8%" align=left valign="bottom">&nbsp; </TD>
    <TD  width="2%" align=left valign="bottom">&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD width="5%" >&nbsp;</TD>
    <TD align=left valign="bottom">&nbsp; </TD>
    <TD  width="1%" align=left valign="bottom">&nbsp;</TD>
    <TD width="8%" align=left valign="bottom">&nbsp; </TD>
    <TD  width="2%" align=left valign="bottom">&nbsp;</TD>
    <TD  width="1%" align=left valign="bottom">&nbsp;</TD>
    <TD width="8%" align=right valign="bottom"><B>Pirquitas</B> </TD>
    <TD  width="2%" align=left valign="bottom">&nbsp;</TD>
    <TD  width="1%" align=left valign="bottom">&nbsp;</TD>
    <TD width="8%" align=right valign="bottom"><B>Development </B></TD>
    <TD  width="2%" align=left valign="bottom">&nbsp;</TD>
    <TD  width="1%" align=left valign="bottom">&nbsp;</TD>
    <TD  width="8%" align=right valign="bottom"><STRONG>Corporate
      and</STRONG>&nbsp;&nbsp;</TD>
    <TD  width="2%" align=left valign="bottom">&nbsp;</TD>
    <TD  width="1%" align=left valign="bottom">&nbsp;</TD>
    <TD width="8%" align=left valign="bottom">&nbsp; </TD>
    <TD  width="2%" align=left valign="bottom">&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD width="5%" >&nbsp;</TD>
    <TD align=left valign="bottom">&nbsp; </TD>
    <TD  width="1%" align=left valign="bottom">&nbsp;</TD>
    <TD width="8%" align=left valign="bottom">&nbsp; </TD>
    <TD  width="2%" align=left valign="bottom">&nbsp;</TD>
    <TD  width="1%" align=left valign="bottom">&nbsp;</TD>
    <TD width="8%" align=right valign="bottom"><B>Mine</B> </TD>
    <TD  width="2%" align=left valign="bottom">&nbsp;</TD>
    <TD  width="1%" align=left valign="bottom">&nbsp;</TD>
    <TD width="8%" align=right valign="bottom"><B>Properties</B> </TD>
    <TD  width="2%" align=left valign="bottom">&nbsp;</TD>
    <TD  width="1%" align=left valign="bottom">&nbsp;</TD>
    <TD width="8%" align=right valign="bottom"><B>Other</B> </TD>
    <TD  width="2%" align=left valign="bottom">&nbsp;</TD>
    <TD  width="1%" align=left valign="bottom">&nbsp;</TD>
    <TD width="8%" align=right valign="bottom"><B>Total</B> </TD>
    <TD  width="2%" align=left valign="bottom">&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD width="5%" >&nbsp;</TD>
    <TD align=left valign="bottom">&nbsp; </TD>
    <TD  width="1%" align=left valign="bottom">&nbsp;</TD>
    <TD width="8%" align=left valign="bottom">&nbsp; </TD>
    <TD  width="2%" align=left valign="bottom">&nbsp;</TD>
    <TD  width="1%"
    align=left valign="bottom" style="BORDER-BOTTOM: #000000 1px solid"><B></B></TD>
    <TD width="8%"
      align=right valign="bottom" style="BORDER-BOTTOM: #000000 1px solid"><STRONG>$</STRONG>&nbsp;</TD>
    <TD  width="2%"
    align=left valign="bottom" style="BORDER-BOTTOM: #000000 1px solid">&nbsp;</TD>
    <TD  width="1%"
    align=left valign="bottom" style="BORDER-BOTTOM: #000000 1px solid"><B></B></TD>
    <TD width="8%"
      align=right valign="bottom" style="BORDER-BOTTOM: #000000 1px solid"><STRONG>$</STRONG>&nbsp;</TD>
    <TD  width="2%"
    align=left valign="bottom" style="BORDER-BOTTOM: #000000 1px solid">&nbsp;</TD>
    <TD  width="1%"
    align=left valign="bottom" style="BORDER-BOTTOM: #000000 1px solid"><B></B></TD>
    <TD width="8%"
      align=right valign="bottom" style="BORDER-BOTTOM: #000000 1px solid"><STRONG>$</STRONG>&nbsp;</TD>
    <TD  width="2%"
    align=left valign="bottom" style="BORDER-BOTTOM: #000000 1px solid">&nbsp;</TD>
    <TD  width="1%"
    align=left valign="bottom" style="BORDER-BOTTOM: #000000 1px solid"><B></B></TD>
    <TD width="8%"
      align=right valign="bottom" style="BORDER-BOTTOM: #000000 1px solid"><STRONG>$</STRONG>&nbsp;</TD>
    <TD  width="2%"
    align=left valign="bottom" style="BORDER-BOTTOM: #000000 1px solid">&nbsp;</TD>
  </TR>
  <TR>
    <TD width="5%" >&nbsp;</TD>
    <TD valign="bottom">&nbsp; </TD>
    <TD  width="1%" valign="bottom">&nbsp;</TD>
    <TD width="8%" align=center valign="bottom">&nbsp; </TD>
    <TD  width="2%" valign="bottom">&nbsp;</TD>
    <TD  width="1%" valign="bottom">&nbsp;</TD>
    <TD width="8%" valign="bottom">&nbsp; </TD>
    <TD  width="2%" valign="bottom">&nbsp;</TD>
    <TD  width="1%" valign="bottom">&nbsp;</TD>
    <TD width="8%" valign="bottom">&nbsp; </TD>
    <TD  width="2%" valign="bottom">&nbsp;</TD>
    <TD  width="1%" valign="bottom">&nbsp;</TD>
    <TD width="8%" valign="bottom">&nbsp; </TD>
    <TD  width="2%" valign="bottom">&nbsp;</TD>
    <TD  width="1%" valign="bottom">&nbsp;</TD>
    <TD width="8%" valign="bottom">&nbsp; </TD>
    <TD  width="2%" valign="bottom">&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD width="5%" >&nbsp;</TD>
    <TD align=left valign="bottom" bgColor=#e6efff>Revenue from external customers </TD>
    <TD  width="1%" align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD width="8%" align=center valign="bottom" bgColor=#e6efff>(a) </TD>
    <TD  width="2%" align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD  width="1%" align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD width="8%" align=right valign="bottom" bgColor=#e6efff>112,256 </TD>
    <TD  width="2%" align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD  width="1%" align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD width="8%" align=right valign="bottom" bgColor=#e6efff>- </TD>
    <TD  width="2%" align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD  width="1%" align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD width="8%" align=right valign="bottom" bgColor=#e6efff>- </TD>
    <TD  width="2%" align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD  width="1%" align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD width="8%" align=right valign="bottom" bgColor=#e6efff><B>112,256</B> </TD>
    <TD  width="2%" align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD width="5%" >&nbsp;</TD>
    <TD align=left valign="bottom">Cost of sales </TD>
    <TD  width="1%" align=left valign="bottom">&nbsp;</TD>
    <TD width="8%" align=center valign="bottom">&nbsp; </TD>
    <TD  width="2%" align=left valign="bottom">&nbsp;</TD>
    <TD  width="1%" align=left valign="bottom">&nbsp;</TD>
    <TD width="8%" align=right valign="bottom">(75,971</TD>
    <TD  width="2%" align=left valign="bottom">) </TD>
    <TD  width="1%" align=left valign="bottom">&nbsp;</TD>
    <TD width="8%" align=right valign="bottom">- </TD>
    <TD  width="2%" align=left valign="bottom">&nbsp;</TD>
    <TD  width="1%" align=left valign="bottom">&nbsp;</TD>
    <TD width="8%" align=right valign="bottom">- </TD>
    <TD  width="2%" align=left valign="bottom">&nbsp;</TD>
    <TD  width="1%" align=left valign="bottom">&nbsp;</TD>
    <TD width="8%" align=right valign="bottom"><B>(75,971</B></TD>
    <TD  width="2%" align=left valign="bottom"><B>)</B> </TD>
  </TR>
  <TR vAlign=top>
    <TD width="5%" >&nbsp;</TD>
    <TD align=left valign="bottom" bgColor=#e6efff>Depletion, depreciation and amortization</TD>
    <TD  width="1%" align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD width="8%" align=center valign="bottom" bgColor=#e6efff>&nbsp; </TD>
    <TD  width="2%" align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD  width="1%" align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD width="8%" align=right valign="bottom" bgColor=#e6efff>(26,327</TD>
    <TD  width="2%" align=left valign="bottom" bgColor=#e6efff>) </TD>
    <TD  width="1%" align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD width="8%" align=right valign="bottom" bgColor=#e6efff>- </TD>
    <TD  width="2%" align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD  width="1%" align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD width="8%" align=right valign="bottom" bgColor=#e6efff>- </TD>
    <TD  width="2%" align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD  width="1%" align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD width="8%" align=right valign="bottom" bgColor=#e6efff><B>(26,327</B></TD>
    <TD  width="2%" align=left valign="bottom" bgColor=#e6efff><B>)</B> </TD>
  </TR>
  <TR vAlign=top>
    <TD width="5%" >&nbsp;</TD>
    <TD align=left valign="bottom">General and administration </TD>
    <TD  width="1%" align=left valign="bottom">&nbsp;</TD>
    <TD width="8%" align=center valign="bottom">&nbsp; </TD>
    <TD  width="2%" align=left valign="bottom">&nbsp;</TD>
    <TD  width="1%" align=left valign="bottom">&nbsp;</TD>
    <TD width="8%" align=right valign="bottom">- </TD>
    <TD  width="2%" align=left valign="bottom">&nbsp;</TD>
    <TD  width="1%" align=left valign="bottom">&nbsp;</TD>
    <TD width="8%" align=right valign="bottom">- </TD>
    <TD  width="2%" align=left valign="bottom">&nbsp;</TD>
    <TD  width="1%" align=left valign="bottom">&nbsp;</TD>
    <TD width="8%" align=right valign="bottom">(20,853</TD>
    <TD  width="2%" align=left valign="bottom">) </TD>
    <TD  width="1%" align=left valign="bottom">&nbsp;</TD>
    <TD width="8%" align=right valign="bottom"><B>(20,853</B></TD>
    <TD  width="2%" align=left valign="bottom"><B>)</B> </TD>
  </TR>
  <TR vAlign=top>
    <TD width="5%" >&nbsp;</TD>
    <TD align=left valign="bottom" bgColor=#e6efff>Interest expense and financing fees </TD>
    <TD  width="1%" align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD width="8%" align=center valign="bottom" bgColor=#e6efff>&nbsp; </TD>
    <TD  width="2%" align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD  width="1%" align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD width="8%" align=right valign="bottom" bgColor=#e6efff>(242</TD>
    <TD  width="2%" align=left valign="bottom" bgColor=#e6efff>) </TD>
    <TD  width="1%" align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD width="8%" align=right valign="bottom" bgColor=#e6efff>- </TD>
    <TD  width="2%" align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD  width="1%" align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD width="8%" align=right valign="bottom" bgColor=#e6efff>(13,674</TD>
    <TD  width="2%" align=left valign="bottom" bgColor=#e6efff>) </TD>
    <TD  width="1%" align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD width="8%" align=right valign="bottom" bgColor=#e6efff><B>(13,916</B></TD>
    <TD  width="2%" align=left valign="bottom" bgColor=#e6efff><B>)</B> </TD>
  </TR>
  <TR vAlign=top>
    <TD width="5%" >&nbsp;</TD>
    <TD align=left valign="bottom">Gain on sale of mineral properties, and properties, plant
      and equipment </TD>
    <TD  width="1%" align=left valign="bottom">&nbsp;</TD>
    <TD width="8%" align=center valign="bottom"></TD>
    <TD  width="2%" align=left valign="bottom">&nbsp;</TD>
    <TD  width="1%" align=left valign="bottom">&nbsp;</TD>
    <TD width="8%" align=right valign="bottom">- </TD>
    <TD  width="2%" align=left valign="bottom">&nbsp;</TD>
    <TD  width="1%" align=left valign="bottom">&nbsp;</TD>
    <TD width="8%" align=right valign="bottom">- </TD>
    <TD  width="2%" align=left valign="bottom">&nbsp;</TD>
    <TD  width="1%" align=left valign="bottom">&nbsp;</TD>
    <TD width="8%" align=right valign="bottom">402,009 </TD>
    <TD  width="2%" align=left valign="bottom">&nbsp;</TD>
    <TD  width="1%" align=left valign="bottom">&nbsp;</TD>
    <TD width="8%" align=right valign="bottom"><B>402,009</B> </TD>
    <TD  width="2%" align=left valign="bottom">&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD width="5%" >&nbsp;</TD>
    <TD align=left valign="bottom" bgColor=#e6efff>Other </TD>
    <TD  width="1%" align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD width="8%" align=center valign="bottom" bgColor=#e6efff>(b) </TD>
    <TD  width="2%" align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD
    width="1%" align=left valign="bottom" bgColor=#e6efff style="BORDER-BOTTOM: #000000 1px solid">&nbsp;</TD>
    <TD width="8%"
    align=right valign="bottom" bgColor=#e6efff style="BORDER-BOTTOM: #000000 1px solid">(6,240</TD>
    <TD
    width="2%" align=left valign="bottom" bgColor=#e6efff style="BORDER-BOTTOM: #000000 1px solid">) </TD>
    <TD
    width="1%" align=left valign="bottom" bgColor=#e6efff style="BORDER-BOTTOM: #000000 1px solid">&nbsp;</TD>
    <TD width="8%"
    align=right valign="bottom" bgColor=#e6efff style="BORDER-BOTTOM: #000000 1px solid">(582</TD>
    <TD
    width="2%" align=left valign="bottom" bgColor=#e6efff style="BORDER-BOTTOM: #000000 1px solid">) </TD>
    <TD
    width="1%" align=left valign="bottom" bgColor=#e6efff style="BORDER-BOTTOM: #000000 1px solid">&nbsp;</TD>
    <TD width="8%"
    align=right valign="bottom" bgColor=#e6efff style="BORDER-BOTTOM: #000000 1px solid">(840</TD>
    <TD
    width="2%" align=left valign="bottom" bgColor=#e6efff style="BORDER-BOTTOM: #000000 1px solid">) </TD>
    <TD
    width="1%" align=left valign="bottom" bgColor=#e6efff style="BORDER-BOTTOM: #000000 1px solid">&nbsp;</TD>
    <TD width="8%"
    align=right valign="bottom" bgColor=#e6efff style="BORDER-BOTTOM: #000000 1px solid"><B>(7,662</B></TD>
    <TD
    width="2%" align=left valign="bottom" bgColor=#e6efff style="BORDER-BOTTOM: #000000 1px solid"><B>)</B> </TD>
  </TR>
  <TR vAlign=top>
    <TD width="5%" >&nbsp;</TD>
    <TD align=left valign="bottom">Loss before income taxes </TD>
    <TD  width="1%" align=left valign="bottom">&nbsp;</TD>
    <TD width="8%" align=center valign="bottom">&nbsp; </TD>
    <TD  width="2%" align=left valign="bottom">&nbsp;</TD>
    <TD  width="1%" align=left valign="bottom">&nbsp;</TD>
    <TD width="8%" align=right valign="bottom">3,476 </TD>
    <TD  width="2%" align=left valign="bottom">&nbsp;</TD>
    <TD  width="1%" align=left valign="bottom">&nbsp;</TD>
    <TD width="8%" align=right valign="bottom">(582</TD>
    <TD  width="2%" align=left valign="bottom">) </TD>
    <TD  width="1%" align=left valign="bottom">&nbsp;</TD>
    <TD width="8%" align=right valign="bottom">366,642 </TD>
    <TD  width="2%" align=left valign="bottom">&nbsp;</TD>
    <TD  width="1%" align=left valign="bottom">&nbsp;</TD>
    <TD width="8%" align=right valign="bottom"><B>369,536</B> </TD>
    <TD  width="2%" align=left valign="bottom">&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD width="5%" >&nbsp;</TD>
    <TD align=left valign="bottom" bgColor=#e6efff>Income tax expense </TD>
    <TD  width="1%" align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD width="8%" align=left valign="bottom" bgColor=#e6efff>&nbsp; </TD>
    <TD  width="2%" align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD
    width="1%" align=left valign="bottom" bgColor=#e6efff style="BORDER-BOTTOM: #000000 1px solid">&nbsp;</TD>
    <TD width="8%"
    align=right valign="bottom" bgColor=#e6efff style="BORDER-BOTTOM: #000000 1px solid">(1,271</TD>
    <TD
    width="2%" align=left valign="bottom" bgColor=#e6efff style="BORDER-BOTTOM: #000000 1px solid">) </TD>
    <TD
    width="1%" align=left valign="bottom" bgColor=#e6efff style="BORDER-BOTTOM: #000000 1px solid">&nbsp;</TD>
    <TD width="8%"
    align=right valign="bottom" bgColor=#e6efff style="BORDER-BOTTOM: #000000 1px solid">- </TD>
    <TD
    width="2%" align=left valign="bottom" bgColor=#e6efff style="BORDER-BOTTOM: #000000 1px solid">&nbsp;</TD>
    <TD
    width="1%" align=left valign="bottom" bgColor=#e6efff style="BORDER-BOTTOM: #000000 1px solid">&nbsp;</TD>
    <TD width="8%"
    align=right valign="bottom" bgColor=#e6efff style="BORDER-BOTTOM: #000000 1px solid">(22,026</TD>
    <TD
    width="2%" align=left valign="bottom" bgColor=#e6efff style="BORDER-BOTTOM: #000000 1px solid">) </TD>
    <TD
    width="1%" align=left valign="bottom" bgColor=#e6efff style="BORDER-BOTTOM: #000000 1px solid">&nbsp;</TD>
    <TD width="8%"
    align=right valign="bottom" bgColor=#e6efff style="BORDER-BOTTOM: #000000 1px solid"><B>(23,297</B></TD>
    <TD
    width="2%" align=left valign="bottom" bgColor=#e6efff style="BORDER-BOTTOM: #000000 1px solid"><B>)</B> </TD>
  </TR>
  <TR>
    <TD width="5%" >&nbsp;</TD>
    <TD valign="bottom">&nbsp; </TD>
    <TD  width="1%" valign="bottom">&nbsp;</TD>
    <TD width="8%" valign="bottom">&nbsp; </TD>
    <TD  width="2%" valign="bottom">&nbsp;</TD>
    <TD  width="1%" valign="bottom">&nbsp;</TD>
    <TD width="8%" valign="bottom">&nbsp; </TD>
    <TD  width="2%" valign="bottom">&nbsp;</TD>
    <TD  width="1%" valign="bottom">&nbsp;</TD>
    <TD width="8%" valign="bottom">&nbsp; </TD>
    <TD  width="2%" valign="bottom">&nbsp;</TD>
    <TD  width="1%" valign="bottom">&nbsp;</TD>
    <TD width="8%" valign="bottom">&nbsp; </TD>
    <TD  width="2%" valign="bottom">&nbsp;</TD>
    <TD  width="1%" valign="bottom">&nbsp;</TD>
    <TD width="8%" valign="bottom">&nbsp; </TD>
    <TD  width="2%" valign="bottom">&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD width="5%" >&nbsp;</TD>
    <TD align=left valign="bottom" bgColor=#e6efff>Net earnings (loss) </TD>
    <TD  width="1%" align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD width="8%" align=left valign="bottom" bgColor=#e6efff>&nbsp; </TD>
    <TD  width="2%" align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD
    width="1%" align=left valign="bottom" bgColor=#e6efff style="BORDER-BOTTOM: #000000 2px solid">&nbsp;</TD>
    <TD width="8%"
    align=right valign="bottom" bgColor=#e6efff style="BORDER-BOTTOM: #000000 2px solid">2,205 </TD>
    <TD
    width="2%" align=left valign="bottom" bgColor=#e6efff style="BORDER-BOTTOM: #000000 2px solid">&nbsp;</TD>
    <TD
    width="1%" align=left valign="bottom" bgColor=#e6efff style="BORDER-BOTTOM: #000000 2px solid">&nbsp;</TD>
    <TD width="8%"
    align=right valign="bottom" bgColor=#e6efff style="BORDER-BOTTOM: #000000 2px solid">(582</TD>
    <TD
    width="2%" align=left valign="bottom" bgColor=#e6efff style="BORDER-BOTTOM: #000000 2px solid">) </TD>
    <TD
    width="1%" align=left valign="bottom" bgColor=#e6efff style="BORDER-BOTTOM: #000000 2px solid">&nbsp;</TD>
    <TD width="8%"
    align=right valign="bottom" bgColor=#e6efff style="BORDER-BOTTOM: #000000 2px solid">344,616 </TD>
    <TD
    width="2%" align=left valign="bottom" bgColor=#e6efff style="BORDER-BOTTOM: #000000 2px solid">&nbsp;</TD>
    <TD
    width="1%" align=left valign="bottom" bgColor=#e6efff style="BORDER-BOTTOM: #000000 2px solid">&nbsp;</TD>
    <TD width="8%"
    align=right valign="bottom" bgColor=#e6efff style="BORDER-BOTTOM: #000000 2px solid"><B>346,239</B> </TD>
    <TD
    width="2%" align=left valign="bottom" bgColor=#e6efff style="BORDER-BOTTOM: #000000 2px solid">&nbsp;</TD>
  </TR>
  <TR>
    <TD width="5%" >&nbsp;</TD>
    <TD valign="bottom">&nbsp; </TD>
    <TD  width="1%" valign="bottom">&nbsp;</TD>
    <TD width="8%" valign="bottom">&nbsp; </TD>
    <TD  width="2%" valign="bottom">&nbsp;</TD>
    <TD  width="1%" valign="bottom">&nbsp;</TD>
    <TD width="8%" valign="bottom">&nbsp; </TD>
    <TD  width="2%" valign="bottom">&nbsp;</TD>
    <TD  width="1%" valign="bottom">&nbsp;</TD>
    <TD width="8%" valign="bottom">&nbsp; </TD>
    <TD  width="2%" valign="bottom">&nbsp;</TD>
    <TD  width="1%" valign="bottom">&nbsp;</TD>
    <TD width="8%" valign="bottom">&nbsp; </TD>
    <TD  width="2%" valign="bottom">&nbsp;</TD>
    <TD  width="1%" valign="bottom">&nbsp;</TD>
    <TD width="8%" valign="bottom">&nbsp; </TD>
    <TD  width="2%" valign="bottom">&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD width="5%" >&nbsp;</TD>
    <TD align=left valign="bottom" bgColor=#e6efff>Mineral properties, and property, plant and
      equipment </TD>
    <TD  width="1%" align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD width="8%" align=left valign="bottom" bgColor=#e6efff>&nbsp; </TD>
    <TD  width="2%" align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD  width="1%" align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD width="8%" align=right valign="bottom" bgColor=#e6efff>407,196 </TD>
    <TD  width="2%" align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD  width="1%" align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD width="8%" align=right valign="bottom" bgColor=#e6efff>204,689 </TD>
    <TD  width="2%" align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD  width="1%" align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD width="8%" align=right valign="bottom" bgColor=#e6efff>1,773 </TD>
    <TD  width="2%" align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD  width="1%" align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD width="8%" align=right valign="bottom" bgColor=#e6efff><B>613,659</B> </TD>
    <TD  width="2%"
  align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
  </TR></TABLE><BR>
<TABLE
style="BORDER-COLOR: black; BORDER-COLLAPSE: collapse; FONT-SIZE: 10pt; "
border=0 cellSpacing=0 cellPadding=0 width="100%" BCLLIST>

  <TR>
    <TD width="5%"  >&nbsp;</TD>
    <TD vAlign=top width="5%">(a) </TD>
    <TD>
      <P align=justify>All revenues are attributed to sales in
  Argentina.</P></TD></TR>
  <TR>
    <TD width="5%" >&nbsp;</TD>
    <TD vAlign=top width="5%">(b) </TD>
    <TD>
      <P align=justify>Other includes stock-based compensation, property
      examination and exploration, reclamation and accretion, investment income,
      foreign exchange gain (loss), other income (expenses) and share of loss of
      equity investee.</P></TD></TR></TABLE>
<P align=right>32</P>
<HR style="PAGE-BREAK-AFTER: always" align=center color=black SIZE=5
width="100%" noShade>
<!--$$/page=--><A name=page_40></A><BR>
<TABLE
style="BORDER-COLOR: black; BORDER-COLLAPSE: collapse; FONT-SIZE: 10pt; "
border=0 cellSpacing=0 cellPadding=0 width="100%">

  <TR vAlign=top>
    <TD align=left><B>Silver Standard Resources Inc.</B> </TD></TR>
  <TR vAlign=top>
    <TD align=left>Notes to Consolidated Financial Statements </TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>December 31, 2010,
      2009 and 2008 </TD></TR>
  <TR vAlign=top>
    <TD align=left>(tabular amounts expressed in thousands of United States
      dollars unless otherwise stated) </TD></TR></TABLE><BR>
<TABLE
style="BORDER-COLOR: black; BORDER-COLLAPSE: collapse; FONT-SIZE: 10pt; "
border=0 cellSpacing=0 cellPadding=0 width="100%">

  <TR vAlign=top>
    <TD align=left ><B>19</B> </TD>
    <TD width="95%" align=left><B>SEGMENTED FINANCIAL INFORMATION (Cont&#146;d)</B>
    </TD></TR></TABLE><BR>
<TABLE
style="BORDER-COLOR: black; BORDER-COLLAPSE: collapse; FONT-SIZE: 8pt; "
border=0 cellSpacing=0 cellPadding=0 width="100%">

  <TR vAlign=top>
    <TD width="5%"  >&nbsp;</TD>
    <TD align=left valign="bottom">&nbsp; </TD>
    <TD  width="1%" align=left valign="bottom">&nbsp;</TD>
    <TD width="8%" align=left valign="bottom">&nbsp; </TD>
    <TD  width="2%" align=left valign="bottom">&nbsp;</TD>
    <TD  width="1%"
    align=left valign="bottom" style="BORDER-BOTTOM: #000000 1px solid">&nbsp;</TD>
    <TD width="41%" colSpan=10
    align=center valign="bottom" style="BORDER-BOTTOM: #000000 1px solid"><B>December 31, 2009</B> </TD>
  <TD  width="2%"
    align=left valign="bottom" style="BORDER-BOTTOM: #000000 1px solid">&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD width="5%" >&nbsp;</TD>
    <TD align=left valign="bottom">&nbsp; </TD>
    <TD  width="1%" align=left valign="bottom">&nbsp;</TD>
    <TD width="8%" align=left valign="bottom">&nbsp; </TD>
    <TD  width="2%" align=left valign="bottom">&nbsp;</TD>
    <TD  width="1%" align=left valign="bottom">&nbsp;</TD>
    <TD width="8%" align=left valign="bottom">&nbsp; </TD>
    <TD  width="2%" align=left valign="bottom">&nbsp;</TD>
    <TD  width="1%" align=left valign="bottom">&nbsp;</TD>
    <TD width="8%" align=right valign="bottom" nowrap><B>Exploration and</B> </TD>
    <TD  width="2%" align=left valign="bottom">&nbsp;</TD>
    <TD  width="1%" align=left valign="bottom">&nbsp;</TD>
    <TD width="8%" align=left valign="bottom">&nbsp; </TD>
    <TD  width="2%" align=left valign="bottom">&nbsp;</TD>
    <TD  width="1%" align=left valign="bottom">&nbsp;</TD>
    <TD width="8%" align=left valign="bottom">&nbsp; </TD>
  <TD  width="2%" align=left valign="bottom">&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD width="5%" >&nbsp;</TD>
    <TD align=left valign="bottom">&nbsp; </TD>
    <TD  width="1%" align=left valign="bottom">&nbsp;</TD>
    <TD width="8%" align=left valign="bottom">&nbsp; </TD>
    <TD  width="2%" align=left valign="bottom">&nbsp;</TD>
    <TD  width="1%" align=left valign="bottom">&nbsp;</TD>
    <TD width="8%" align=right valign="bottom" nowrap><B>Pirquitas</B> </TD>
    <TD  width="2%" align=left valign="bottom">&nbsp;</TD>
    <TD  width="1%" align=left valign="bottom">&nbsp;</TD>
    <TD width="8%" align=right valign="bottom"><B>Development</B> </TD>
    <TD  width="2%" align=left valign="bottom">&nbsp;</TD>
    <TD  width="1%" align=left valign="bottom">&nbsp;</TD>
    <TD width="8%" align=right valign="bottom" nowrap><B>Corporate and</B> </TD>
    <TD  width="2%" align=left valign="bottom">&nbsp;</TD>
    <TD  width="1%" align=left valign="bottom">&nbsp;</TD>
    <TD width="8%" align=left valign="bottom">&nbsp; </TD>
  <TD  width="2%" align=left valign="bottom">&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD width="5%" >&nbsp;</TD>
    <TD align=left valign="bottom">&nbsp; </TD>
    <TD  width="1%" align=left valign="bottom">&nbsp;</TD>
    <TD width="8%" align=left valign="bottom">&nbsp; </TD>
    <TD  width="2%" align=left valign="bottom">&nbsp;</TD>
    <TD  width="1%" align=left valign="bottom">&nbsp;</TD>
    <TD width="8%" align=right valign="bottom"><B>Mine</B> </TD>
    <TD  width="2%" align=left valign="bottom">&nbsp;</TD>
    <TD  width="1%" align=left valign="bottom">&nbsp;</TD>
    <TD width="8%" align=right valign="bottom"><B>Properties</B> </TD>
    <TD  width="2%" align=left valign="bottom">&nbsp;</TD>
    <TD  width="1%" align=left valign="bottom">&nbsp;</TD>
    <TD width="8%" align=right valign="bottom"><B>Other</B> </TD>
    <TD  width="2%" align=left valign="bottom">&nbsp;</TD>
    <TD  width="1%" align=left valign="bottom">&nbsp;</TD>
    <TD width="8%" align=right valign="bottom" nowrap><B>Total</B> </TD>
  <TD  width="2%" align=left valign="bottom">&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD width="5%" >&nbsp;</TD>
    <TD align=left valign="bottom">&nbsp; </TD>
    <TD  width="1%" align=left valign="bottom">&nbsp;</TD>
    <TD width="8%" align=left valign="bottom">&nbsp; </TD>
    <TD  width="2%" align=left valign="bottom">&nbsp;</TD>
    <TD  width="1%"
    align=left valign="bottom" style="BORDER-BOTTOM: #000000 1px solid"><B></B></TD>
    <TD width="8%"
      align=right valign="bottom" style="BORDER-BOTTOM: #000000 1px solid"><STRONG>$</STRONG>&nbsp;</TD>
    <TD  width="2%"
    align=left valign="bottom" style="BORDER-BOTTOM: #000000 1px solid">&nbsp;</TD>
    <TD  width="1%"
    align=left valign="bottom" style="BORDER-BOTTOM: #000000 1px solid"><B></B></TD>
    <TD width="8%"
      align=right valign="bottom" style="BORDER-BOTTOM: #000000 1px solid"><STRONG>$</STRONG>&nbsp;</TD>
    <TD  width="2%"
    align=left valign="bottom" style="BORDER-BOTTOM: #000000 1px solid">&nbsp;</TD>
    <TD  width="1%"
    align=left valign="bottom" style="BORDER-BOTTOM: #000000 1px solid"><B></B></TD>
    <TD width="8%"
      align=right valign="bottom" style="BORDER-BOTTOM: #000000 1px solid"><STRONG>$</STRONG>&nbsp;</TD>
    <TD  width="2%"
    align=left valign="bottom" style="BORDER-BOTTOM: #000000 1px solid">&nbsp;</TD>
    <TD  width="1%"
    align=left valign="bottom" style="BORDER-BOTTOM: #000000 1px solid"><B></B></TD>
    <TD width="8%"
      align=right valign="bottom" style="BORDER-BOTTOM: #000000 1px solid"><STRONG>$</STRONG>&nbsp;</TD>
  <TD  width="2%"
    align=left valign="bottom" style="BORDER-BOTTOM: #000000 1px solid">&nbsp;</TD>
  </TR>
  <TR>
    <TD width="5%" >&nbsp;</TD>
    <TD valign="bottom">&nbsp; </TD>
    <TD  width="1%" valign="bottom">&nbsp;</TD>
    <TD width="8%" valign="bottom">&nbsp; </TD>
    <TD  width="2%" valign="bottom">&nbsp;</TD>
    <TD  width="1%" valign="bottom">&nbsp;</TD>
    <TD width="8%" valign="bottom">&nbsp; </TD>
    <TD  width="2%" valign="bottom">&nbsp;</TD>
    <TD  width="1%" valign="bottom">&nbsp;</TD>
    <TD width="8%" valign="bottom">&nbsp; </TD>
    <TD  width="2%" valign="bottom">&nbsp;</TD>
    <TD  width="1%" valign="bottom">&nbsp;</TD>
    <TD width="8%" valign="bottom">&nbsp; </TD>
    <TD  width="2%" valign="bottom">&nbsp;</TD>
    <TD  width="1%" valign="bottom">&nbsp;</TD>
    <TD width="8%" valign="bottom">&nbsp; </TD>
  <TD  width="2%" valign="bottom">&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD width="5%" >&nbsp;</TD>
    <TD align=left valign="bottom" bgColor=#e6efff>Revenue from external customers </TD>
    <TD  width="1%" align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD width="8%" align=center valign="bottom" bgColor=#e6efff>(a) </TD>
    <TD  width="2%" align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD  width="1%" align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD width="8%" align=right valign="bottom" bgColor=#e6efff>5,442 </TD>
    <TD  width="2%" align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD  width="1%" align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD width="8%" align=right valign="bottom" bgColor=#e6efff>- </TD>
    <TD  width="2%" align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD  width="1%" align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD width="8%" align=right valign="bottom" bgColor=#e6efff>- </TD>
    <TD  width="2%" align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD  width="1%" align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD width="8%" align=right valign="bottom" bgColor=#e6efff>5,442 </TD>
  <TD  width="2%" align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD width="5%" >&nbsp;</TD>
    <TD align=left valign="bottom">Cost of sales </TD>
    <TD  width="1%" align=left valign="bottom">&nbsp;</TD>
    <TD width="8%" align=center valign="bottom">&nbsp; </TD>
    <TD  width="2%" align=left valign="bottom">&nbsp;</TD>
    <TD  width="1%" align=left valign="bottom">&nbsp;</TD>
    <TD width="8%" align=right valign="bottom">(5,926</TD>
    <TD  width="2%" align=left valign="bottom">) </TD>
    <TD  width="1%" align=left valign="bottom">&nbsp;</TD>
    <TD width="8%" align=right valign="bottom">- </TD>
    <TD  width="2%" align=left valign="bottom">&nbsp;</TD>
    <TD  width="1%" align=left valign="bottom">&nbsp;</TD>
    <TD width="8%" align=right valign="bottom">- </TD>
    <TD  width="2%" align=left valign="bottom">&nbsp;</TD>
    <TD  width="1%" align=left valign="bottom">&nbsp;</TD>
    <TD width="8%" align=right valign="bottom">(5,926</TD>
  <TD  width="2%" align=left valign="bottom">) </TD>
  </TR>
  <TR vAlign=top>
    <TD width="5%" >&nbsp;</TD>
    <TD align=left valign="bottom" bgColor=#e6efff>Depletion, depreciation and amortization</TD>
    <TD  width="1%" align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD width="8%" align=center valign="bottom" bgColor=#e6efff>&nbsp; </TD>
    <TD  width="2%" align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD  width="1%" align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD width="8%" align=right valign="bottom" bgColor=#e6efff>(2,039</TD>
    <TD  width="2%" align=left valign="bottom" bgColor=#e6efff>) </TD>
    <TD  width="1%" align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD width="8%" align=right valign="bottom" bgColor=#e6efff>- </TD>
    <TD  width="2%" align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD  width="1%" align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD width="8%" align=right valign="bottom" bgColor=#e6efff>- </TD>
    <TD  width="2%" align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD  width="1%" align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD width="8%" align=right valign="bottom" bgColor=#e6efff>(2,039</TD>
  <TD  width="2%" align=left valign="bottom" bgColor=#e6efff>) </TD>
  </TR>
  <TR vAlign=top>
    <TD width="5%" >&nbsp;</TD>
    <TD align=left valign="bottom">General and administration </TD>
    <TD  width="1%" align=left valign="bottom">&nbsp;</TD>
    <TD width="8%" align=center valign="bottom">&nbsp; </TD>
    <TD  width="2%" align=left valign="bottom">&nbsp;</TD>
    <TD  width="1%" align=left valign="bottom">&nbsp;</TD>
    <TD width="8%" align=right valign="bottom">(2</TD>
    <TD  width="2%" align=left valign="bottom">) </TD>
    <TD  width="1%" align=left valign="bottom">&nbsp;</TD>
    <TD width="8%" align=right valign="bottom">(17</TD>
    <TD  width="2%" align=left valign="bottom">) </TD>
    <TD  width="1%" align=left valign="bottom">&nbsp;</TD>
    <TD width="8%" align=right valign="bottom">(10,268</TD>
    <TD  width="2%" align=left valign="bottom">) </TD>
    <TD  width="1%" align=left valign="bottom">&nbsp;</TD>
    <TD width="8%" align=right valign="bottom">(10,287</TD>
  <TD  width="2%" align=left valign="bottom">) </TD>
  </TR>
  <TR vAlign=top>
    <TD width="5%" >&nbsp;</TD>
    <TD align=left valign="bottom" bgColor=#e6efff>Interest expense and financing fees </TD>
    <TD  width="1%" align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD width="8%" align=center valign="bottom" bgColor=#e6efff>&nbsp; </TD>
    <TD  width="2%" align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD  width="1%" align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD width="8%" align=right valign="bottom" bgColor=#e6efff>- </TD>
    <TD  width="2%" align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD  width="1%" align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD width="8%" align=right valign="bottom" bgColor=#e6efff>- </TD>
    <TD  width="2%" align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD  width="1%" align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD width="8%" align=right valign="bottom" bgColor=#e6efff>(1,095</TD>
    <TD  width="2%" align=left valign="bottom" bgColor=#e6efff>) </TD>
    <TD  width="1%" align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD width="8%" align=right valign="bottom" bgColor=#e6efff>(1,095</TD>
  <TD  width="2%" align=left valign="bottom" bgColor=#e6efff>) </TD>
  </TR>
  <TR vAlign=top>
    <TD width="5%" >&nbsp;</TD>
    <TD align=left valign="bottom">Gain on sale of mineral properties, and properties, plant
      and equipment </TD>
    <TD  width="1%" align=left valign="bottom">&nbsp;</TD>
    <TD width="8%" align=center valign="bottom"></TD>
    <TD  width="2%" align=left valign="bottom">&nbsp;</TD>
    <TD  width="1%" align=left valign="bottom">&nbsp;</TD>
    <TD width="8%" align=right valign="bottom">- </TD>
    <TD  width="2%" align=left valign="bottom">&nbsp;</TD>
    <TD  width="1%" align=left valign="bottom">&nbsp;</TD>
    <TD width="8%" align=right valign="bottom">- </TD>
    <TD  width="2%" align=left valign="bottom">&nbsp;</TD>
    <TD  width="1%" align=left valign="bottom">&nbsp;</TD>
    <TD width="8%" align=right valign="bottom">167 </TD>
    <TD  width="2%" align=left valign="bottom">&nbsp;</TD>
    <TD  width="1%" align=left valign="bottom">&nbsp;</TD>
    <TD width="8%" align=right valign="bottom">167 </TD>
  <TD  width="2%" align=left valign="bottom">&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD width="5%" >&nbsp;</TD>
    <TD align=left valign="bottom" bgColor=#e6efff>Other </TD>
    <TD  width="1%" align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD width="8%" align=center valign="bottom" bgColor=#e6efff>(b) </TD>
    <TD  width="2%" align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD
    width="1%" align=left valign="bottom" bgColor=#e6efff style="BORDER-BOTTOM: #000000 1px solid">&nbsp;</TD>
    <TD width="8%"
    align=right valign="bottom" bgColor=#e6efff style="BORDER-BOTTOM: #000000 1px solid">110 </TD>
    <TD
    width="2%" align=left valign="bottom" bgColor=#e6efff style="BORDER-BOTTOM: #000000 1px solid">&nbsp;</TD>
    <TD
    width="1%" align=left valign="bottom" bgColor=#e6efff style="BORDER-BOTTOM: #000000 1px solid">&nbsp;</TD>
    <TD width="8%"
    align=right valign="bottom" bgColor=#e6efff style="BORDER-BOTTOM: #000000 1px solid">(638</TD>
    <TD
    width="2%" align=left valign="bottom" bgColor=#e6efff style="BORDER-BOTTOM: #000000 1px solid">) </TD>
    <TD
    width="1%" align=left valign="bottom" bgColor=#e6efff style="BORDER-BOTTOM: #000000 1px solid">&nbsp;</TD>
    <TD width="8%"
    align=right valign="bottom" bgColor=#e6efff style="BORDER-BOTTOM: #000000 1px solid">(3,235</TD>
    <TD
    width="2%" align=left valign="bottom" bgColor=#e6efff style="BORDER-BOTTOM: #000000 1px solid">) </TD>
    <TD
    width="1%" align=left valign="bottom" bgColor=#e6efff style="BORDER-BOTTOM: #000000 1px solid">&nbsp;</TD>
    <TD width="8%"
    align=right valign="bottom" bgColor=#e6efff style="BORDER-BOTTOM: #000000 1px solid">(3,763</TD>
  <TD
    width="2%" align=left valign="bottom" bgColor=#e6efff style="BORDER-BOTTOM: #000000 1px solid">) </TD>
  </TR>
  <TR vAlign=top>
    <TD width="5%" >&nbsp;</TD>
    <TD align=left valign="bottom">Loss before income taxes </TD>
    <TD  width="1%" align=left valign="bottom">&nbsp;</TD>
    <TD width="8%" align=center valign="bottom">&nbsp; </TD>
    <TD  width="2%" align=left valign="bottom">&nbsp;</TD>
    <TD  width="1%" align=left valign="bottom">&nbsp;</TD>
    <TD width="8%" align=right valign="bottom">(2,415</TD>
    <TD  width="2%" align=left valign="bottom">) </TD>
    <TD  width="1%" align=left valign="bottom">&nbsp;</TD>
    <TD width="8%" align=right valign="bottom">(655</TD>
    <TD  width="2%" align=left valign="bottom">) </TD>
    <TD  width="1%" align=left valign="bottom">&nbsp;</TD>
    <TD width="8%" align=right valign="bottom">(14,431</TD>
    <TD  width="2%" align=left valign="bottom">) </TD>
    <TD  width="1%" align=left valign="bottom">&nbsp;</TD>
    <TD width="8%" align=right valign="bottom">(17,501</TD>
  <TD  width="2%" align=left valign="bottom">) </TD>
  </TR>
  <TR vAlign=top>
    <TD width="5%" >&nbsp;</TD>
    <TD align=left valign="bottom" bgColor=#e6efff>Income tax recovery (expense) </TD>
    <TD  width="1%" align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD width="8%" align=left valign="bottom" bgColor=#e6efff>&nbsp; </TD>
    <TD  width="2%" align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD
    width="1%" align=left valign="bottom" bgColor=#e6efff style="BORDER-BOTTOM: #000000 1px solid">&nbsp;</TD>
    <TD width="8%"
    align=right valign="bottom" bgColor=#e6efff style="BORDER-BOTTOM: #000000 1px solid">(685</TD>
    <TD
    width="2%" align=left valign="bottom" bgColor=#e6efff style="BORDER-BOTTOM: #000000 1px solid">) </TD>
    <TD
    width="1%" align=left valign="bottom" bgColor=#e6efff style="BORDER-BOTTOM: #000000 1px solid">&nbsp;</TD>
    <TD width="8%"
    align=right valign="bottom" bgColor=#e6efff style="BORDER-BOTTOM: #000000 1px solid">- </TD>
    <TD
    width="2%" align=left valign="bottom" bgColor=#e6efff style="BORDER-BOTTOM: #000000 1px solid">&nbsp;</TD>
    <TD
    width="1%" align=left valign="bottom" bgColor=#e6efff style="BORDER-BOTTOM: #000000 1px solid">&nbsp;</TD>
    <TD width="8%"
    align=right valign="bottom" bgColor=#e6efff style="BORDER-BOTTOM: #000000 1px solid">4,993 </TD>
    <TD
    width="2%" align=left valign="bottom" bgColor=#e6efff style="BORDER-BOTTOM: #000000 1px solid">&nbsp;</TD>
    <TD
    width="1%" align=left valign="bottom" bgColor=#e6efff style="BORDER-BOTTOM: #000000 1px solid">&nbsp;</TD>
    <TD width="8%"
    align=right valign="bottom" bgColor=#e6efff style="BORDER-BOTTOM: #000000 1px solid">4,308 </TD>
  <TD
    width="2%" align=left valign="bottom" bgColor=#e6efff style="BORDER-BOTTOM: #000000 1px solid">&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD width="5%" >&nbsp;</TD>
    <TD align=left valign="bottom">Net loss </TD>
    <TD  width="1%" align=left valign="bottom">&nbsp;</TD>
    <TD width="8%" align=left valign="bottom">&nbsp; </TD>
    <TD  width="2%" align=left valign="bottom">&nbsp;</TD>
    <TD  width="1%"
    align=left valign="bottom" style="BORDER-BOTTOM: #000000 1px solid">&nbsp;</TD>
    <TD width="8%"
    align=right valign="bottom" style="BORDER-BOTTOM: #000000 1px solid">(3,100</TD>
    <TD  width="2%"
    align=left valign="bottom" style="BORDER-BOTTOM: #000000 1px solid">) </TD>
    <TD  width="1%"
    align=left valign="bottom" style="BORDER-BOTTOM: #000000 1px solid">&nbsp;</TD>
    <TD width="8%"
align=right valign="bottom" style="BORDER-BOTTOM: #000000 1px solid">(655</TD>
    <TD  width="2%"
    align=left valign="bottom" style="BORDER-BOTTOM: #000000 1px solid">) </TD>
    <TD  width="1%"
    align=left valign="bottom" style="BORDER-BOTTOM: #000000 1px solid">&nbsp;</TD>
    <TD width="8%"
    align=right valign="bottom" style="BORDER-BOTTOM: #000000 1px solid">(9,438</TD>
    <TD  width="2%"
    align=left valign="bottom" style="BORDER-BOTTOM: #000000 1px solid">) </TD>
    <TD  width="1%"
    align=left valign="bottom" style="BORDER-BOTTOM: #000000 1px solid">&nbsp;</TD>
    <TD width="8%"
    align=right valign="bottom" style="BORDER-BOTTOM: #000000 1px solid">(13,193</TD>
  <TD  width="2%"
    align=left valign="bottom" style="BORDER-BOTTOM: #000000 1px solid">) </TD>
  </TR>
  <TR>
    <TD width="5%" >&nbsp;</TD>
    <TD valign="bottom" bgColor=#e6efff>&nbsp; </TD>
    <TD  width="1%" valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD width="8%" valign="bottom" bgColor=#e6efff>&nbsp; </TD>
    <TD  width="2%" valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD  width="1%" valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD width="8%" valign="bottom" bgColor=#e6efff>&nbsp; </TD>
    <TD  width="2%" valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD  width="1%" valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD width="8%" valign="bottom" bgColor=#e6efff>&nbsp; </TD>
    <TD  width="2%" valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD  width="1%" valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD width="8%" valign="bottom" bgColor=#e6efff>&nbsp; </TD>
    <TD  width="2%" valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD  width="1%" valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD width="8%" valign="bottom" bgColor=#e6efff>&nbsp; </TD>
  <TD  width="2%" valign="bottom" bgColor=#e6efff>&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD width="5%" >&nbsp;</TD>
    <TD align=left valign="bottom">Mineral properties, and property, plant and equipment </TD>
    <TD  width="1%" align=left valign="bottom">&nbsp;</TD>
    <TD width="8%" align=left valign="bottom">&nbsp; </TD>
    <TD  width="2%" align=left valign="bottom">&nbsp;</TD>
    <TD  width="1%" align=left valign="bottom">&nbsp;</TD>
    <TD width="8%" align=right valign="bottom">420,257 </TD>
    <TD  width="2%" align=left valign="bottom">&nbsp;</TD>
    <TD  width="1%" align=left valign="bottom">&nbsp;</TD>
    <TD width="8%" align=right valign="bottom">169,277 </TD>
    <TD  width="2%" align=left valign="bottom">&nbsp;</TD>
    <TD  width="1%" align=left valign="bottom">&nbsp;</TD>
    <TD width="8%" align=right valign="bottom">23,084 </TD>
    <TD  width="2%" align=left valign="bottom">&nbsp;</TD>
    <TD  width="1%" align=left valign="bottom">&nbsp;</TD>
    <TD width="8%" align=right valign="bottom">612,618 </TD>
  <TD  width="2%" align=left valign="bottom">&nbsp;</TD>
  </TR></TABLE><BR>
<TABLE
style="BORDER-COLOR: black; BORDER-COLLAPSE: collapse; FONT-SIZE: 10pt; "
border=0 cellSpacing=0 cellPadding=0 width="100%" BCLLIST>

  <TR>
    <TD width="5%"  >&nbsp;</TD>
    <TD vAlign=top width="5%">(a) </TD>
    <TD>
      <P align=justify>All revenues are attributed to sales in
  Argentina.</P></TD></TR>
  <TR>
    <TD width="5%" >&nbsp;</TD>
    <TD vAlign=top width="5%">(b) </TD>
    <TD>
      <P align=justify>Other includes stock-based compensation, property
      examination and exploration, reclamation and accretion, investment income,
      foreign exchange gain (loss), and other income
  (expenses).</P></TD></TR></TABLE>
<P style="MARGIN-LEFT: 5%" align=justify>During the year ended December 31,
2010, 100% of our silver concentrate production was sold to one customer (note
6(d)).</P>
<P style="MARGIN-LEFT: 5%" align=justify>Segmented assets by geographic location
are as follows:</P>
<TABLE
style="BORDER-COLOR: black; BORDER-COLLAPSE: collapse; FONT-SIZE: 10pt; "
border=0 cellSpacing=0 cellPadding=0 width="100%">

  <TR vAlign=top>
    <TD width="5%"  >&nbsp;</TD>
    <TD align=left valign="bottom">&nbsp; </TD>
    <TD  width="1%"
    align=left valign="bottom" style="BORDER-BOTTOM: #000000 1px solid">&nbsp;</TD>
    <TD width="23%" colSpan=4
    align=right valign="bottom" nowrap style="BORDER-BOTTOM: #000000 1px solid"><B>December 31, 2010</B> </TD>
    <TD  width="2%"
    align=left valign="bottom" style="BORDER-BOTTOM: #000000 1px solid">&nbsp;</TD>
    <TD  width="1%"
    align=left valign="bottom" style="BORDER-BOTTOM: #000000 1px solid">&nbsp;</TD>
    <TD width="23%" colSpan=4
    align=right valign="bottom" nowrap style="BORDER-BOTTOM: #000000 1px solid"><B>December 31, 2009</B> </TD>
    <TD  width="2%"
    align=left valign="bottom" style="BORDER-BOTTOM: #000000 1px solid">&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD width="5%" >&nbsp;</TD>
    <TD align=left valign="bottom">&nbsp; </TD>
    <TD  width="1%" align=left valign="bottom">&nbsp;</TD>
    <TD width="10%" align=right valign="bottom" nowrap><B>Mineral property</B> </TD>
    <TD  width="2%" align=left valign="bottom">&nbsp;</TD>
    <TD  width="1%" align=left valign="bottom">&nbsp;</TD>
    <TD width="10%" align=left valign="bottom">&nbsp; </TD>
    <TD  width="2%" align=left valign="bottom">&nbsp;</TD>
    <TD  width="1%" align=left valign="bottom">&nbsp;</TD>
    <TD width="10%" align=right valign="bottom" nowrap><B>Mineral property</B> </TD>
    <TD  width="2%" align=left valign="bottom">&nbsp;</TD>
    <TD  width="1%" align=left valign="bottom">&nbsp;</TD>
    <TD width="10%" align=left valign="bottom">&nbsp; </TD>
    <TD  width="2%" align=left valign="bottom">&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD width="5%" >&nbsp;</TD>
    <TD align=left valign="bottom">&nbsp; </TD>
    <TD  width="1%" align=left valign="bottom">&nbsp;</TD>
    <TD width="10%" align=right valign="bottom"><B>costs and</B> </TD>
    <TD  width="2%" align=left valign="bottom">&nbsp;</TD>
    <TD  width="1%" align=left valign="bottom">&nbsp;</TD>
    <TD width="10%" align=left valign="bottom">&nbsp; </TD>
    <TD  width="2%" align=left valign="bottom">&nbsp;</TD>
    <TD  width="1%" align=left valign="bottom">&nbsp;</TD>
    <TD width="10%" align=right valign="bottom"><B>costs and</B> </TD>
    <TD  width="2%" align=left valign="bottom">&nbsp;</TD>
    <TD  width="1%" align=left valign="bottom">&nbsp;</TD>
    <TD width="10%" align=left valign="bottom">&nbsp; </TD>
    <TD  width="2%" align=left valign="bottom">&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD width="5%" >&nbsp;</TD>
    <TD align=left valign="bottom">&nbsp; </TD>
    <TD  width="1%" align=left valign="bottom">&nbsp;</TD>
    <TD width="10%" align=right valign="bottom"><B>property, plant</B> </TD>
    <TD  width="2%" align=left valign="bottom">&nbsp;</TD>
    <TD  width="1%" align=left valign="bottom">&nbsp;</TD>
    <TD width="10%" align=left valign="bottom">&nbsp; </TD>
    <TD  width="2%" align=left valign="bottom">&nbsp;</TD>
    <TD  width="1%" align=left valign="bottom">&nbsp;</TD>
    <TD width="10%" align=right valign="bottom"><B>property, plant</B> </TD>
    <TD  width="2%" align=left valign="bottom">&nbsp;</TD>
    <TD  width="1%" align=left valign="bottom">&nbsp;</TD>
    <TD width="10%" align=left valign="bottom">&nbsp; </TD>
    <TD  width="2%" align=left valign="bottom">&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD width="5%" >&nbsp;</TD>
    <TD align=left valign="bottom">&nbsp; </TD>
    <TD  width="1%" align=left valign="bottom">&nbsp;</TD>
    <TD width="10%" align=right valign="bottom"><B>and equipment</B> </TD>
    <TD  width="2%" align=left valign="bottom">&nbsp;</TD>
    <TD  width="1%" align=left valign="bottom">&nbsp;</TD>
    <TD width="10%" align=right valign="bottom" nowrap><B>Total assets</B> </TD>
    <TD  width="2%" align=left valign="bottom">&nbsp;</TD>
    <TD  width="1%" align=left valign="bottom">&nbsp;</TD>
    <TD width="10%" align=right valign="bottom"><B>and equipment</B> </TD>
    <TD  width="2%" align=left valign="bottom">&nbsp;</TD>
    <TD  width="1%" align=left valign="bottom">&nbsp;</TD>
    <TD width="10%" align=right valign="bottom" nowrap><B>Total assets</B> </TD>
    <TD  width="2%" align=left valign="bottom">&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD width="5%" >&nbsp;</TD>
    <TD align=left valign="bottom">&nbsp; </TD>
    <TD  width="1%"
    align=left valign="bottom" style="BORDER-BOTTOM: #000000 1px solid"><B></B></TD>
    <TD width="10%"
      align=right valign="bottom" style="BORDER-BOTTOM: #000000 1px solid"><STRONG>$</STRONG>&nbsp;</TD>
    <TD  width="2%"
    align=left valign="bottom" style="BORDER-BOTTOM: #000000 1px solid">&nbsp;</TD>
    <TD  width="1%"
    align=left valign="bottom" style="BORDER-BOTTOM: #000000 1px solid"><B></B></TD>
    <TD width="10%"
      align=right valign="bottom" style="BORDER-BOTTOM: #000000 1px solid"><STRONG>$</STRONG>&nbsp;</TD>
    <TD  width="2%"
    align=left valign="bottom" style="BORDER-BOTTOM: #000000 1px solid">&nbsp;</TD>
    <TD  width="1%"
    align=left valign="bottom" style="BORDER-BOTTOM: #000000 1px solid"><B></B></TD>
    <TD width="10%"
      align=right valign="bottom" style="BORDER-BOTTOM: #000000 1px solid"><STRONG>$</STRONG>&nbsp;</TD>
    <TD  width="2%"
    align=left valign="bottom" style="BORDER-BOTTOM: #000000 1px solid">&nbsp;</TD>
    <TD  width="1%"
    align=left valign="bottom" style="BORDER-BOTTOM: #000000 1px solid"><B></B></TD>
    <TD width="10%"
      align=right valign="bottom" style="BORDER-BOTTOM: #000000 1px solid"><STRONG>$</STRONG>&nbsp;</TD>
    <TD  width="2%"
    align=left valign="bottom" style="BORDER-BOTTOM: #000000 1px solid">&nbsp;</TD>
  </TR>
  <TR>
    <TD width="5%" >&nbsp;</TD>
    <TD valign="bottom">&nbsp; </TD>
    <TD  width="1%" valign="bottom">&nbsp;</TD>
    <TD width="10%" valign="bottom">&nbsp; </TD>
    <TD  width="2%" valign="bottom">&nbsp;</TD>
    <TD  width="1%" valign="bottom">&nbsp;</TD>
    <TD width="10%" valign="bottom">&nbsp; </TD>
    <TD  width="2%" valign="bottom">&nbsp;</TD>
    <TD  width="1%" valign="bottom">&nbsp;</TD>
    <TD width="10%" valign="bottom">&nbsp; </TD>
    <TD  width="2%" valign="bottom">&nbsp;</TD>
    <TD  width="1%" valign="bottom">&nbsp;</TD>
    <TD width="10%" valign="bottom">&nbsp; </TD>
    <TD  width="2%" valign="bottom">&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD width="5%" >&nbsp;</TD>
    <TD align=left valign="bottom" bgColor=#e6efff>Argentina </TD>
    <TD  width="1%" align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD width="10%" align=right valign="bottom" bgColor=#e6efff><B>425,962</B> </TD>
    <TD  width="2%" align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD  width="1%" align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD width="10%" align=right valign="bottom" bgColor=#e6efff><B>570,752</B> </TD>
    <TD  width="2%" align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD  width="1%" align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD width="10%" align=right valign="bottom" bgColor=#e6efff>436,789 </TD>
    <TD  width="2%" align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD  width="1%" align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD width="10%" align=right valign="bottom" bgColor=#e6efff>518,493 </TD>
    <TD  width="2%" align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD width="5%" >&nbsp;</TD>
    <TD align=left valign="bottom">Australia </TD>
    <TD  width="1%" align=left valign="bottom">&nbsp;</TD>
    <TD width="10%" align=right valign="bottom"><B>20,841</B> </TD>
    <TD  width="2%" align=left valign="bottom">&nbsp;</TD>
    <TD  width="1%" align=left valign="bottom">&nbsp;</TD>
    <TD width="10%" align=right valign="bottom"><B>20,992</B> </TD>
    <TD  width="2%" align=left valign="bottom">&nbsp;</TD>
    <TD  width="1%" align=left valign="bottom">&nbsp;</TD>
    <TD width="10%" align=right valign="bottom">20,054 </TD>
    <TD  width="2%" align=left valign="bottom">&nbsp;</TD>
    <TD  width="1%" align=left valign="bottom">&nbsp;</TD>
    <TD width="10%" align=right valign="bottom">20,191 </TD>
    <TD  width="2%" align=left valign="bottom">&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD width="5%" >&nbsp;</TD>
    <TD align=left valign="bottom" bgColor=#e6efff>Canada </TD>
    <TD  width="1%" align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD width="10%" align=right valign="bottom" bgColor=#e6efff><B>1,773</B> </TD>
    <TD  width="2%" align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD  width="1%" align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD width="10%" align=right valign="bottom" bgColor=#e6efff><B>502,038</B> </TD>
    <TD  width="2%" align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD  width="1%" align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD width="10%" align=right valign="bottom" bgColor=#e6efff>23,084 </TD>
    <TD  width="2%" align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD  width="1%" align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD width="10%" align=right valign="bottom" bgColor=#e6efff>76,111 </TD>
    <TD  width="2%" align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD width="5%" >&nbsp;</TD>
    <TD align=left valign="bottom">Chile </TD>
    <TD  width="1%" align=left valign="bottom">&nbsp;</TD>
    <TD width="10%" align=right valign="bottom"><B>8,116</B> </TD>
    <TD  width="2%" align=left valign="bottom">&nbsp;</TD>
    <TD  width="1%" align=left valign="bottom">&nbsp;</TD>
    <TD width="10%" align=right valign="bottom"><B>8,131</B> </TD>
    <TD  width="2%" align=left valign="bottom">&nbsp;</TD>
    <TD  width="1%" align=left valign="bottom">&nbsp;</TD>
    <TD width="10%" align=right valign="bottom">7,868 </TD>
    <TD  width="2%" align=left valign="bottom">&nbsp;</TD>
    <TD  width="1%" align=left valign="bottom">&nbsp;</TD>
    <TD width="10%" align=right valign="bottom">7,875 </TD>
    <TD  width="2%" align=left valign="bottom">&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD width="5%" >&nbsp;</TD>
    <TD align=left valign="bottom" bgColor=#e6efff>Mexico </TD>
    <TD  width="1%" align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD width="10%" align=right valign="bottom" bgColor=#e6efff><B>95,330</B> </TD>
    <TD  width="2%" align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD  width="1%" align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD width="10%" align=right valign="bottom" bgColor=#e6efff><B>96,964</B> </TD>
    <TD  width="2%" align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD  width="1%" align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD width="10%" align=right valign="bottom" bgColor=#e6efff>72,598 </TD>
    <TD  width="2%" align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD  width="1%" align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD width="10%" align=right valign="bottom" bgColor=#e6efff>73,832 </TD>
    <TD  width="2%" align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD width="5%" >&nbsp;</TD>
    <TD align=left valign="bottom">Peru </TD>
    <TD  width="1%" align=left valign="bottom">&nbsp;</TD>
    <TD width="10%" align=right valign="bottom"><B>52,572</B> </TD>
    <TD  width="2%" align=left valign="bottom">&nbsp;</TD>
    <TD  width="1%" align=left valign="bottom">&nbsp;</TD>
    <TD width="10%" align=right valign="bottom"><B>53,812</B> </TD>
    <TD  width="2%" align=left valign="bottom">&nbsp;</TD>
    <TD  width="1%" align=left valign="bottom">&nbsp;</TD>
    <TD width="10%" align=right valign="bottom">43,584 </TD>
    <TD  width="2%" align=left valign="bottom">&nbsp;</TD>
    <TD  width="1%" align=left valign="bottom">&nbsp;</TD>
    <TD width="10%" align=right valign="bottom">44,498 </TD>
    <TD  width="2%" align=left valign="bottom">&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD width="5%" >&nbsp;</TD>
    <TD align=left valign="bottom" bgColor=#e6efff>United States </TD>
    <TD
    width="1%" align=left valign="bottom" bgColor=#e6efff style="BORDER-BOTTOM: #000000 1px solid">&nbsp;</TD>
    <TD width="10%"
    align=right valign="bottom" bgColor=#e6efff style="BORDER-BOTTOM: #000000 1px solid"><B>9,065</B> </TD>
    <TD
    width="2%" align=left valign="bottom" bgColor=#e6efff style="BORDER-BOTTOM: #000000 1px solid">&nbsp;</TD>
    <TD
    width="1%" align=left valign="bottom" bgColor=#e6efff style="BORDER-BOTTOM: #000000 1px solid">&nbsp;</TD>
    <TD width="10%"
    align=right valign="bottom" bgColor=#e6efff style="BORDER-BOTTOM: #000000 1px solid"><B>9,328</B> </TD>
    <TD
    width="2%" align=left valign="bottom" bgColor=#e6efff style="BORDER-BOTTOM: #000000 1px solid">&nbsp;</TD>
    <TD
    width="1%" align=left valign="bottom" bgColor=#e6efff style="BORDER-BOTTOM: #000000 1px solid">&nbsp;</TD>
    <TD width="10%"
    align=right valign="bottom" bgColor=#e6efff style="BORDER-BOTTOM: #000000 1px solid">8,641 </TD>
    <TD
    width="2%" align=left valign="bottom" bgColor=#e6efff style="BORDER-BOTTOM: #000000 1px solid">&nbsp;</TD>
    <TD
    width="1%" align=left valign="bottom" bgColor=#e6efff style="BORDER-BOTTOM: #000000 1px solid">&nbsp;</TD>
    <TD width="10%"
    align=right valign="bottom" bgColor=#e6efff style="BORDER-BOTTOM: #000000 1px solid">8,925 </TD>
    <TD
    width="2%" align=left valign="bottom" bgColor=#e6efff style="BORDER-BOTTOM: #000000 1px solid">&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD width="5%" >&nbsp;</TD>
    <TD align=left valign="bottom">&nbsp; </TD>
    <TD  width="1%"
    align=left valign="bottom" style="BORDER-BOTTOM: #000000 2px solid">&nbsp;</TD>
    <TD width="10%"
      align=right valign="bottom" style="BORDER-BOTTOM: #000000 2px solid"><B>613,659</B> </TD>
    <TD  width="2%"
    align=left valign="bottom" style="BORDER-BOTTOM: #000000 2px solid">&nbsp;</TD>
    <TD  width="1%"
    align=left valign="bottom" style="BORDER-BOTTOM: #000000 2px solid">&nbsp;</TD>
    <TD width="10%"
      align=right valign="bottom" style="BORDER-BOTTOM: #000000 2px solid"><B>1,262,017</B> </TD>
    <TD  width="2%"
    align=left valign="bottom" style="BORDER-BOTTOM: #000000 2px solid">&nbsp;</TD>
    <TD  width="1%"
    align=left valign="bottom" style="BORDER-BOTTOM: #000000 2px solid">&nbsp;</TD>
    <TD width="10%"
      align=right valign="bottom" style="BORDER-BOTTOM: #000000 2px solid">612,618 </TD>
    <TD  width="2%"
    align=left valign="bottom" style="BORDER-BOTTOM: #000000 2px solid">&nbsp;</TD>
    <TD  width="1%"
    align=left valign="bottom" style="BORDER-BOTTOM: #000000 2px solid">&nbsp;</TD>
    <TD width="10%"
      align=right valign="bottom" style="BORDER-BOTTOM: #000000 2px solid">749,925 </TD>
<TD  width="2%"
    align=left valign="bottom" style="BORDER-BOTTOM: #000000 2px solid">&nbsp;</TD>
  </TR></TABLE>
<P align=right>33</P>
<HR style="PAGE-BREAK-AFTER: always" align=center color=black SIZE=5
width="100%" noShade>
<!--$$/page=--><A name=page_41></A><BR>
<TABLE
style="BORDER-COLOR: black; BORDER-COLLAPSE: collapse; FONT-SIZE: 10pt; "
border=0 cellSpacing=0 cellPadding=0 width="100%">

  <TR vAlign=top>
    <TD align=left><B>Silver Standard Resources Inc.</B> </TD></TR>
  <TR vAlign=top>
    <TD align=left>Notes to Consolidated Financial Statements </TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>December 31, 2010,
      2009 and 2008 </TD></TR>
  <TR vAlign=top>
    <TD align=left>(tabular amounts expressed in thousands of United States
      dollars unless otherwise stated) </TD></TR></TABLE><BR>
<TABLE
style="BORDER-COLOR: black; BORDER-COLLAPSE: collapse; FONT-SIZE: 10pt; "
border=0 cellSpacing=0 cellPadding=0 width="100%" BCLLIST>

  <TR>
    <TD vAlign=top width="5%"><B>20</B> </TD>
    <TD>
      <P align=justify><B>SUBSEQUENT EVENTS</B></P></TD></TR>
  <TR>
    <TD width="5%">&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
  <TR>
    <TD width="5%"></TD>
    <TD>
      <P align=justify>On February 28, 2011 we reached an agreement to acquire
      the remaining 30% interest in the San Luis project from our joint venture
      partner, Esperanza Resources Corp. (&#147;Esperanza&#148;). Upon completion of the
      acquisition we will own 100% of the project. Under the terms of the
      agreement we will pay C$17 million in cash, transfer to Esperanza the
      6.459 million shares of Esperanza that we own, and a 1% net smelter return
      royalty on future revenues. The full financial impact of this transaction
      has yet to be fully determined.</P></TD></TR>
  <TR>
    <TD width="5%">&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
  <TR>
    <TD vAlign=top width="5%"><B>21</B> </TD>
    <TD>
      <P align=justify><B>MATERIAL DIFFERENCES BETWEEN CANADIAN AND UNITED
      STATES GENERALLY ACCEPTED ACCOUNTING PRINCIPLES
  (GAAP)</B></P></TD></TR></TABLE>
<P style="MARGIN-LEFT: 5%" align=justify><B>Consolidated summarized balance
sheets:</B></P>
<TABLE
style="BORDER-COLOR: black; BORDER-COLLAPSE: collapse; FONT-SIZE: 8pt; "
border=0 cellSpacing=0 cellPadding=0 width="100%">

  <TR vAlign=top>
    <TD width="5%"  >&nbsp;</TD>
    <TD align=left valign="bottom">&nbsp; </TD>
    <TD  width="1%"
    align=left valign="bottom" style="BORDER-BOTTOM: #000000 1px solid">&nbsp;</TD>
    <TD width="8%" align=left valign="bottom" style="BORDER-BOTTOM: #000000 1px solid">&nbsp;    </TD>
    <TD  width="2%"
    align=left valign="bottom" style="BORDER-BOTTOM: #000000 1px solid">&nbsp;</TD>
    <TD  width="1%"
    align=left valign="bottom" style="BORDER-BOTTOM: #000000 1px solid">&nbsp;</TD>
    <TD width="8%" align=left valign="bottom" style="BORDER-BOTTOM: #000000 1px solid">&nbsp;    </TD>
    <TD  width="2%"
    align=left valign="bottom" style="BORDER-BOTTOM: #000000 1px solid">&nbsp;</TD>
    <TD  width="1%"
    align=left valign="bottom" style="BORDER-BOTTOM: #000000 1px solid">&nbsp;</TD>
    <TD width="8%"
      align=right valign="bottom" style="BORDER-BOTTOM: #000000 1px solid"><B>2010</B> </TD>
    <TD  width="2%"
    align=left valign="bottom" style="BORDER-BOTTOM: #000000 1px solid">&nbsp;</TD>
    <TD  width="1%"
    align=left valign="bottom" style="BORDER-BOTTOM: #000000 1px solid">&nbsp;</TD>
    <TD width="8%" align=left valign="bottom" style="BORDER-BOTTOM: #000000 1px solid">&nbsp;    </TD>
    <TD  width="2%"
    align=left valign="bottom" style="BORDER-BOTTOM: #000000 1px solid">&nbsp;</TD>
    <TD  width="1%"
    align=left valign="bottom" style="BORDER-BOTTOM: #000000 1px solid">&nbsp;</TD>
    <TD width="8%" align=left valign="bottom" style="BORDER-BOTTOM: #000000 1px solid">&nbsp;    </TD>
    <TD  width="2%"
    align=left valign="bottom" style="BORDER-BOTTOM: #000000 1px solid">&nbsp;</TD>
    <TD  width="1%"
    align=left valign="bottom" style="BORDER-BOTTOM: #000000 1px solid">&nbsp;</TD>
    <TD width="8%"
      align=right valign="bottom" style="BORDER-BOTTOM: #000000 1px solid"><B>2009</B> </TD>
    <TD  width="2%"
    align=left valign="bottom" style="BORDER-BOTTOM: #000000 1px solid">&nbsp;</TD>
  </TR>
  <TR>
    <TD width="5%" >&nbsp;</TD>
    <TD valign="bottom">&nbsp; </TD>
    <TD  width="1%" valign="bottom">&nbsp;</TD>
    <TD width="8%" valign="bottom">&nbsp; </TD>
    <TD  width="2%" valign="bottom">&nbsp;</TD>
    <TD  width="1%" valign="bottom">&nbsp;</TD>
    <TD width="8%" valign="bottom">&nbsp; </TD>
    <TD  width="2%" valign="bottom">&nbsp;</TD>
    <TD  width="1%" valign="bottom">&nbsp;</TD>
    <TD width="8%" valign="bottom">&nbsp; </TD>
    <TD  width="2%" valign="bottom">&nbsp;</TD>
    <TD  width="1%" valign="bottom">&nbsp;</TD>
    <TD width="8%" valign="bottom">&nbsp; </TD>
    <TD  width="2%" valign="bottom">&nbsp;</TD>
    <TD  width="1%" valign="bottom">&nbsp;</TD>
    <TD width="8%" valign="bottom">&nbsp; </TD>
    <TD  width="2%" valign="bottom">&nbsp;</TD>
    <TD  width="1%" valign="bottom">&nbsp;</TD>
    <TD width="8%" valign="bottom">&nbsp; </TD>
    <TD  width="2%" valign="bottom">&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD width="5%" >&nbsp;</TD>
    <TD align=left valign="bottom">&nbsp; </TD>
    <TD  width="1%" align=left valign="bottom">&nbsp;</TD>
    <TD width="8%" align=right valign="bottom" nowrap><B>Canadian&nbsp;</B> </TD>
    <TD  width="2%" align=left valign="bottom">&nbsp;</TD>
    <TD  width="1%" align=left valign="bottom">&nbsp;</TD>
    <TD  width="8%"
    align=right valign="bottom" nowrap><STRONG>Adjustments</STRONG>&nbsp;</TD>
    <TD  width="2%" align=left valign="bottom">&nbsp;</TD>
    <TD  width="1%" align=left valign="bottom">&nbsp;</TD>
    <TD width="8%" align=right valign="bottom"><B>U.S.</B> </TD>
    <TD  width="2%" align=left valign="bottom">&nbsp;</TD>
    <TD  width="1%" align=left valign="bottom">&nbsp;</TD>
    <TD width="8%" align=right valign="bottom" nowrap><B>Canadian </B></TD>
    <TD  width="2%" align=left valign="bottom">&nbsp;</TD>
    <TD  width="1%" align=left valign="bottom">&nbsp;</TD>
    <TD  width="8%"
      align=right valign="bottom" nowrap><STRONG>Adjustments</STRONG>&nbsp;&nbsp;</TD>
    <TD  width="2%" align=left valign="bottom">&nbsp;</TD>
    <TD  width="1%" align=left valign="bottom">&nbsp;</TD>
    <TD width="8%" align=right valign="bottom"><B>U.S.</B> </TD>
    <TD  width="2%" align=left valign="bottom">&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD width="5%" >&nbsp;</TD>
    <TD align=left valign="bottom">&nbsp; </TD>
    <TD  width="1%" align=left valign="bottom">&nbsp;</TD>
    <TD width="8%" align=right valign="bottom"><B>GAAP</B> </TD>
    <TD  width="2%" align=left valign="bottom">&nbsp;</TD>
    <TD  width="1%" align=left valign="bottom">&nbsp;</TD>
    <TD width="8%" align=left valign="bottom">&nbsp; </TD>
    <TD  width="2%" align=left valign="bottom">&nbsp;</TD>
    <TD  width="1%" align=left valign="bottom">&nbsp;</TD>
    <TD width="8%" align=right valign="bottom" nowrap><B>GAAP</B> </TD>
    <TD  width="2%" align=left valign="bottom">&nbsp;</TD>
    <TD  width="1%" align=left valign="bottom">&nbsp;</TD>
    <TD width="8%" align=right valign="bottom"><B>GAAP</B> </TD>
    <TD  width="2%" align=left valign="bottom">&nbsp;</TD>
    <TD  width="1%" align=left valign="bottom">&nbsp;</TD>
    <TD width="8%" align=left valign="bottom">&nbsp; </TD>
    <TD  width="2%" align=left valign="bottom">&nbsp;</TD>
    <TD  width="1%" align=left valign="bottom">&nbsp;</TD>
    <TD width="8%" align=right valign="bottom" nowrap><B>GAAP</B> </TD>
    <TD  width="2%" align=left valign="bottom">&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD width="5%" >&nbsp;</TD>
    <TD align=left valign="bottom">&nbsp; </TD>
    <TD  width="1%"
    align=left valign="bottom" style="BORDER-BOTTOM: #000000 1px solid"><B></B></TD>
    <TD width="8%"
      align=right valign="bottom" style="BORDER-BOTTOM: #000000 1px solid"><STRONG>$</STRONG>&nbsp;</TD>
    <TD  width="2%"
    align=left valign="bottom" style="BORDER-BOTTOM: #000000 1px solid">&nbsp;</TD>
    <TD  width="1%"
    align=left valign="bottom" style="BORDER-BOTTOM: #000000 1px solid"><B></B></TD>
    <TD width="8%"
      align=right valign="bottom" style="BORDER-BOTTOM: #000000 1px solid"><STRONG>$</STRONG>&nbsp;</TD>
    <TD  width="2%"
    align=left valign="bottom" style="BORDER-BOTTOM: #000000 1px solid">&nbsp;</TD>
    <TD  width="1%"
    align=left valign="bottom" style="BORDER-BOTTOM: #000000 1px solid"><B></B></TD>
    <TD width="8%"
      align=right valign="bottom" style="BORDER-BOTTOM: #000000 1px solid"><STRONG>$</STRONG>&nbsp;</TD>
    <TD  width="2%"
    align=left valign="bottom" style="BORDER-BOTTOM: #000000 1px solid">&nbsp;</TD>
    <TD  width="1%"
    align=left valign="bottom" style="BORDER-BOTTOM: #000000 1px solid"><B></B></TD>
    <TD width="8%"
      align=right valign="bottom" style="BORDER-BOTTOM: #000000 1px solid"><STRONG>$</STRONG>&nbsp;</TD>
    <TD  width="2%"
    align=left valign="bottom" style="BORDER-BOTTOM: #000000 1px solid">&nbsp;</TD>
    <TD  width="1%"
    align=left valign="bottom" style="BORDER-BOTTOM: #000000 1px solid"><B></B></TD>
    <TD width="8%"
      align=right valign="bottom" style="BORDER-BOTTOM: #000000 1px solid"><STRONG>$</STRONG>&nbsp;</TD>
    <TD  width="2%"
    align=left valign="bottom" style="BORDER-BOTTOM: #000000 1px solid">&nbsp;</TD>
    <TD  width="1%"
    align=left valign="bottom" style="BORDER-BOTTOM: #000000 1px solid"><B></B></TD>
    <TD width="8%"
      align=right valign="bottom" style="BORDER-BOTTOM: #000000 1px solid"><STRONG>$</STRONG>&nbsp;</TD>
    <TD  width="2%"
    align=left valign="bottom" style="BORDER-BOTTOM: #000000 1px solid">&nbsp;</TD>
  </TR>
  <TR>
    <TD width="5%" >&nbsp;</TD>
    <TD valign="bottom">&nbsp; </TD>
    <TD  width="1%" valign="bottom">&nbsp;</TD>
    <TD width="8%" valign="bottom">&nbsp; </TD>
    <TD  width="2%" valign="bottom">&nbsp;</TD>
    <TD  width="1%" valign="bottom">&nbsp;</TD>
    <TD width="8%" valign="bottom">&nbsp; </TD>
    <TD  width="2%" valign="bottom">&nbsp;</TD>
    <TD  width="1%" valign="bottom">&nbsp;</TD>
    <TD width="8%" valign="bottom">&nbsp; </TD>
    <TD  width="2%" valign="bottom">&nbsp;</TD>
    <TD  width="1%" valign="bottom">&nbsp;</TD>
    <TD width="8%" valign="bottom">&nbsp; </TD>
    <TD  width="2%" valign="bottom">&nbsp;</TD>
    <TD  width="1%" valign="bottom">&nbsp;</TD>
    <TD width="8%" valign="bottom">&nbsp; </TD>
    <TD  width="2%" valign="bottom">&nbsp;</TD>
    <TD  width="1%" valign="bottom">&nbsp;</TD>
    <TD width="8%" valign="bottom">&nbsp; </TD>
    <TD  width="2%" valign="bottom">&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD width="5%" >&nbsp;</TD>
    <TD align=left valign="bottom" bgColor=#e6efff><B>Assets</B> </TD>
    <TD  width="1%" align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD width="8%" align=left valign="bottom" bgColor=#e6efff>&nbsp; </TD>
    <TD  width="2%" align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD  width="1%" align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD width="8%" align=left valign="bottom" bgColor=#e6efff>&nbsp; </TD>
    <TD  width="2%" align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD  width="1%" align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD width="8%" align=left valign="bottom" bgColor=#e6efff>&nbsp; </TD>
    <TD  width="2%" align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD  width="1%" align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD width="8%" align=left valign="bottom" bgColor=#e6efff>&nbsp; </TD>
    <TD  width="2%" align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD  width="1%" align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD width="8%" align=left valign="bottom" bgColor=#e6efff>&nbsp; </TD>
    <TD  width="2%" align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD  width="1%" align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD width="8%" align=left valign="bottom" bgColor=#e6efff>&nbsp; </TD>
    <TD  width="2%" align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD width="5%" >&nbsp;</TD>
    <TD align=left valign="bottom">Current assets (a)i) </TD>
    <TD  width="1%" align=left valign="bottom">&nbsp;</TD>
    <TD width="8%" align=right valign="bottom">342,054 </TD>
    <TD  width="2%" align=left valign="bottom">&nbsp;</TD>
    <TD  width="1%" align=left valign="bottom">&nbsp;</TD>
    <TD width="8%" align=right valign="bottom">- </TD>
    <TD  width="2%" align=left valign="bottom">&nbsp;</TD>
    <TD  width="1%" align=left valign="bottom">&nbsp;</TD>
    <TD width="8%" align=right valign="bottom">342,054 </TD>
    <TD  width="2%" align=left valign="bottom">&nbsp;</TD>
    <TD  width="1%" align=left valign="bottom">&nbsp;</TD>
    <TD width="8%" align=right valign="bottom">75,197 </TD>
    <TD  width="2%" align=left valign="bottom">&nbsp;</TD>
    <TD  width="1%" align=left valign="bottom">&nbsp;</TD>
    <TD width="8%" align=right valign="bottom">(1,859</TD>
    <TD  width="2%" align=left valign="bottom">) </TD>
    <TD  width="1%" align=left valign="bottom">&nbsp;</TD>
    <TD width="8%" align=right valign="bottom">73,338 </TD>
    <TD  width="2%" align=left valign="bottom">&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD width="5%" >&nbsp;</TD>
    <TD align=left valign="bottom" bgColor=#e6efff>Convertible debenture </TD>
    <TD  width="1%" align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD width="8%" align=right valign="bottom" bgColor=#e6efff>7,180 </TD>
    <TD  width="2%" align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD  width="1%" align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD width="8%" align=right valign="bottom" bgColor=#e6efff>- </TD>
    <TD  width="2%" align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD  width="1%" align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD width="8%" align=right valign="bottom" bgColor=#e6efff>7,180 </TD>
    <TD  width="2%" align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD  width="1%" align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD width="8%" align=right valign="bottom" bgColor=#e6efff>6,081 </TD>
    <TD  width="2%" align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD  width="1%" align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD width="8%" align=right valign="bottom" bgColor=#e6efff>- </TD>
    <TD  width="2%" align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD  width="1%" align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD width="8%" align=right valign="bottom" bgColor=#e6efff>6,081 </TD>
    <TD  width="2%" align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD width="5%" >&nbsp;</TD>
    <TD align=left valign="bottom">Value added tax recoverable </TD>
    <TD  width="1%" align=left valign="bottom">&nbsp;</TD>
    <TD width="8%" align=right valign="bottom">70,782 </TD>
    <TD  width="2%" align=left valign="bottom">&nbsp;</TD>
    <TD  width="1%" align=left valign="bottom">&nbsp;</TD>
    <TD width="8%" align=right valign="bottom">- </TD>
    <TD  width="2%" align=left valign="bottom">&nbsp;</TD>
    <TD  width="1%" align=left valign="bottom">&nbsp;</TD>
    <TD width="8%" align=right valign="bottom">70,782 </TD>
    <TD  width="2%" align=left valign="bottom">&nbsp;</TD>
    <TD  width="1%" align=left valign="bottom">&nbsp;</TD>
    <TD width="8%" align=right valign="bottom">54,095 </TD>
    <TD  width="2%" align=left valign="bottom">&nbsp;</TD>
    <TD  width="1%" align=left valign="bottom">&nbsp;</TD>
    <TD width="8%" align=right valign="bottom">- </TD>
    <TD  width="2%" align=left valign="bottom">&nbsp;</TD>
    <TD  width="1%" align=left valign="bottom">&nbsp;</TD>
    <TD width="8%" align=right valign="bottom">54,095 </TD>
    <TD  width="2%" align=left valign="bottom">&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD width="5%" >&nbsp;</TD>
    <TD align=left valign="bottom" bgColor=#e6efff>Mineral property costs (a)i) </TD>
    <TD  width="1%" align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD width="8%" align=right valign="bottom" bgColor=#e6efff>377,119 </TD>
    <TD  width="2%" align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD  width="1%" align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD width="8%" align=right valign="bottom" bgColor=#e6efff>(273,467</TD>
    <TD  width="2%" align=left valign="bottom" bgColor=#e6efff>) </TD>
    <TD  width="1%" align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD width="8%" align=right valign="bottom" bgColor=#e6efff>103,652 </TD>
    <TD  width="2%" align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD  width="1%" align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD width="8%" align=right valign="bottom" bgColor=#e6efff>371,065 </TD>
    <TD  width="2%" align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD  width="1%" align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD width="8%" align=right valign="bottom" bgColor=#e6efff>(269,111</TD>
    <TD  width="2%" align=left valign="bottom" bgColor=#e6efff>) </TD>
    <TD  width="1%" align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD width="8%" align=right valign="bottom" bgColor=#e6efff>101,954 </TD>
    <TD  width="2%" align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD width="5%" >&nbsp;</TD>
    <TD align=left valign="bottom">Other property, plant and equipment (a)vi) </TD>
    <TD  width="1%" align=left valign="bottom">&nbsp;</TD>
    <TD width="8%" align=right valign="bottom">236,540 </TD>
    <TD  width="2%" align=left valign="bottom">&nbsp;</TD>
    <TD  width="1%" align=left valign="bottom">&nbsp;</TD>
    <TD width="8%" align=right valign="bottom">2,720 </TD>
    <TD  width="2%" align=left valign="bottom">&nbsp;</TD>
    <TD  width="1%" align=left valign="bottom">&nbsp;</TD>
    <TD width="8%" align=right valign="bottom">239,260 </TD>
    <TD  width="2%" align=left valign="bottom">&nbsp;</TD>
    <TD  width="1%" align=left valign="bottom">&nbsp;</TD>
    <TD width="8%" align=right valign="bottom">241,553 </TD>
    <TD  width="2%" align=left valign="bottom">&nbsp;</TD>
    <TD  width="1%" align=left valign="bottom">&nbsp;</TD>
    <TD width="8%" align=right valign="bottom">3,474 </TD>
    <TD  width="2%" align=left valign="bottom">&nbsp;</TD>
    <TD  width="1%" align=left valign="bottom">&nbsp;</TD>
    <TD width="8%" align=right valign="bottom">245,027 </TD>
    <TD  width="2%" align=left valign="bottom">&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD width="5%" >&nbsp;</TD>
    <TD align=left valign="bottom" bgColor=#e6efff>Other assets </TD>
    <TD  width="1%" align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD width="8%" align=right valign="bottom" bgColor=#e6efff>2,071 </TD>
    <TD  width="2%" align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD  width="1%" align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD width="8%" align=right valign="bottom" bgColor=#e6efff>- </TD>
    <TD  width="2%" align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD  width="1%" align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD width="8%" align=right valign="bottom" bgColor=#e6efff>2,071 </TD>
    <TD  width="2%" align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD  width="1%" align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD width="8%" align=right valign="bottom" bgColor=#e6efff>1,934 </TD>
    <TD  width="2%" align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD  width="1%" align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD width="8%" align=right valign="bottom" bgColor=#e6efff>- </TD>
    <TD  width="2%" align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD  width="1%" align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD width="8%" align=right valign="bottom" bgColor=#e6efff>1,934 </TD>
    <TD  width="2%" align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD width="5%" >&nbsp;</TD>
    <TD align=left valign="bottom">Investment accounted for under the equity method </TD>
    <TD  width="1%"
    align=left valign="bottom" style="BORDER-BOTTOM: #000000 1px solid">&nbsp;</TD>
    <TD width="8%"
      align=right valign="bottom" style="BORDER-BOTTOM: #000000 1px solid">226,271 </TD>
    <TD  width="2%"
    align=left valign="bottom" style="BORDER-BOTTOM: #000000 1px solid">&nbsp;</TD>
    <TD  width="1%"
    align=left valign="bottom" style="BORDER-BOTTOM: #000000 1px solid">&nbsp;</TD>
    <TD width="8%" align=right valign="bottom" style="BORDER-BOTTOM: #000000 1px solid">- </TD>
    <TD  width="2%"
    align=left valign="bottom" style="BORDER-BOTTOM: #000000 1px solid">&nbsp;</TD>
    <TD  width="1%"
    align=left valign="bottom" style="BORDER-BOTTOM: #000000 1px solid">&nbsp;</TD>
    <TD width="8%"
      align=right valign="bottom" style="BORDER-BOTTOM: #000000 1px solid">226,271 </TD>
    <TD  width="2%"
    align=left valign="bottom" style="BORDER-BOTTOM: #000000 1px solid">&nbsp;</TD>
    <TD  width="1%"
    align=left valign="bottom" style="BORDER-BOTTOM: #000000 1px solid">&nbsp;</TD>
    <TD width="8%" align=right valign="bottom" style="BORDER-BOTTOM: #000000 1px solid">- </TD>
    <TD  width="2%"
    align=left valign="bottom" style="BORDER-BOTTOM: #000000 1px solid">&nbsp;</TD>
    <TD  width="1%"
    align=left valign="bottom" style="BORDER-BOTTOM: #000000 1px solid">&nbsp;</TD>
    <TD width="8%" align=right valign="bottom" style="BORDER-BOTTOM: #000000 1px solid">- </TD>
    <TD  width="2%"
    align=left valign="bottom" style="BORDER-BOTTOM: #000000 1px solid">&nbsp;</TD>
    <TD  width="1%"
    align=left valign="bottom" style="BORDER-BOTTOM: #000000 1px solid">&nbsp;</TD>
    <TD width="8%" align=right valign="bottom" style="BORDER-BOTTOM: #000000 1px solid">- </TD>
    <TD  width="2%"
    align=left valign="bottom" style="BORDER-BOTTOM: #000000 1px solid">&nbsp;</TD>
  </TR>
  <TR>
    <TD width="5%" >&nbsp;</TD>
    <TD valign="bottom" bgColor=#e6efff>&nbsp; </TD>
    <TD  width="1%" valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD width="8%" valign="bottom" bgColor=#e6efff>&nbsp; </TD>
    <TD  width="2%" valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD  width="1%" valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD width="8%" valign="bottom" bgColor=#e6efff>&nbsp; </TD>
    <TD  width="2%" valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD  width="1%" valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD width="8%" valign="bottom" bgColor=#e6efff>&nbsp; </TD>
    <TD  width="2%" valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD  width="1%" valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD width="8%" valign="bottom" bgColor=#e6efff>&nbsp; </TD>
    <TD  width="2%" valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD  width="1%" valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD width="8%" valign="bottom" bgColor=#e6efff>&nbsp; </TD>
    <TD  width="2%" valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD  width="1%" valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD width="8%" valign="bottom" bgColor=#e6efff>&nbsp; </TD>
    <TD  width="2%" valign="bottom" bgColor=#e6efff>&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD width="5%" >&nbsp;</TD>
    <TD align=left valign="bottom">&nbsp; </TD>
    <TD  width="1%"
    align=left valign="bottom" style="BORDER-BOTTOM: #000000 1px solid">&nbsp;</TD>
    <TD width="8%"
      align=right valign="bottom" style="BORDER-BOTTOM: #000000 1px solid">1,262,017 </TD>
    <TD  width="2%"
    align=left valign="bottom" style="BORDER-BOTTOM: #000000 1px solid">&nbsp;</TD>
    <TD  width="1%"
    align=left valign="bottom" style="BORDER-BOTTOM: #000000 1px solid">&nbsp;</TD>
    <TD width="8%"
      align=right valign="bottom" style="BORDER-BOTTOM: #000000 1px solid">(270,747</TD>
    <TD  width="2%"
    align=left valign="bottom" style="BORDER-BOTTOM: #000000 1px solid">) </TD>
    <TD  width="1%"
    align=left valign="bottom" style="BORDER-BOTTOM: #000000 1px solid">&nbsp;</TD>
    <TD width="8%"
      align=right valign="bottom" style="BORDER-BOTTOM: #000000 1px solid">991,270 </TD>
    <TD  width="2%"
    align=left valign="bottom" style="BORDER-BOTTOM: #000000 1px solid">&nbsp;</TD>
    <TD  width="1%"
    align=left valign="bottom" style="BORDER-BOTTOM: #000000 1px solid">&nbsp;</TD>
    <TD width="8%"
      align=right valign="bottom" style="BORDER-BOTTOM: #000000 1px solid">749,925 </TD>
    <TD  width="2%"
    align=left valign="bottom" style="BORDER-BOTTOM: #000000 1px solid">&nbsp;</TD>
    <TD  width="1%"
    align=left valign="bottom" style="BORDER-BOTTOM: #000000 1px solid">&nbsp;</TD>
    <TD width="8%"
      align=right valign="bottom" style="BORDER-BOTTOM: #000000 1px solid">(267,496</TD>
    <TD  width="2%"
    align=left valign="bottom" style="BORDER-BOTTOM: #000000 1px solid">) </TD>
    <TD  width="1%"
    align=left valign="bottom" style="BORDER-BOTTOM: #000000 1px solid">&nbsp;</TD>
    <TD width="8%"
      align=right valign="bottom" style="BORDER-BOTTOM: #000000 1px solid">482,429 </TD>
    <TD  width="2%"
    align=left valign="bottom" style="BORDER-BOTTOM: #000000 1px solid">&nbsp;</TD>
  </TR>
  <TR>
    <TD width="5%" >&nbsp;</TD>
    <TD valign="bottom" bgColor=#e6efff>&nbsp; </TD>
    <TD  width="1%" valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD width="8%" valign="bottom" bgColor=#e6efff>&nbsp; </TD>
    <TD  width="2%" valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD  width="1%" valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD width="8%" valign="bottom" bgColor=#e6efff>&nbsp; </TD>
    <TD  width="2%" valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD  width="1%" valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD width="8%" valign="bottom" bgColor=#e6efff>&nbsp; </TD>
    <TD  width="2%" valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD  width="1%" valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD width="8%" valign="bottom" bgColor=#e6efff>&nbsp; </TD>
    <TD  width="2%" valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD  width="1%" valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD width="8%" valign="bottom" bgColor=#e6efff>&nbsp; </TD>
    <TD  width="2%" valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD  width="1%" valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD width="8%" valign="bottom" bgColor=#e6efff>&nbsp; </TD>
    <TD  width="2%" valign="bottom" bgColor=#e6efff>&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD width="5%" >&nbsp;</TD>
    <TD align=left valign="bottom"><B>Liabilities</B> </TD>
    <TD  width="1%" align=left valign="bottom">&nbsp;</TD>
    <TD width="8%" align=left valign="bottom">&nbsp; </TD>
    <TD  width="2%" align=left valign="bottom">&nbsp;</TD>
    <TD  width="1%" align=left valign="bottom">&nbsp;</TD>
    <TD width="8%" align=left valign="bottom">&nbsp; </TD>
    <TD  width="2%" align=left valign="bottom">&nbsp;</TD>
    <TD  width="1%" align=left valign="bottom">&nbsp;</TD>
    <TD width="8%" align=left valign="bottom">&nbsp; </TD>
    <TD  width="2%" align=left valign="bottom">&nbsp;</TD>
    <TD  width="1%" align=left valign="bottom">&nbsp;</TD>
    <TD width="8%" align=left valign="bottom">&nbsp; </TD>
    <TD  width="2%" align=left valign="bottom">&nbsp;</TD>
    <TD  width="1%" align=left valign="bottom">&nbsp;</TD>
    <TD width="8%" align=left valign="bottom">&nbsp; </TD>
    <TD  width="2%" align=left valign="bottom">&nbsp;</TD>
    <TD  width="1%" align=left valign="bottom">&nbsp;</TD>
    <TD width="8%" align=left valign="bottom">&nbsp; </TD>
    <TD  width="2%" align=left valign="bottom">&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD width="5%" >&nbsp;</TD>
    <TD align=left valign="bottom" bgColor=#e6efff>Current liabilities </TD>
    <TD  width="1%" align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD width="8%" align=right valign="bottom" bgColor=#e6efff>38,210 </TD>
    <TD  width="2%" align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD  width="1%" align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD width="8%" align=right valign="bottom" bgColor=#e6efff>- </TD>
    <TD  width="2%" align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD  width="1%" align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD width="8%" align=right valign="bottom" bgColor=#e6efff>38,210 </TD>
    <TD  width="2%" align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD  width="1%" align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD width="8%" align=right valign="bottom" bgColor=#e6efff>50,682 </TD>
    <TD  width="2%" align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD  width="1%" align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD width="8%" align=right valign="bottom" bgColor=#e6efff>- </TD>
    <TD  width="2%" align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD  width="1%" align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD width="8%" align=right valign="bottom" bgColor=#e6efff>50,682 </TD>
    <TD  width="2%" align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD width="5%" >&nbsp;</TD>
    <TD align=left valign="bottom">Long-term convertibles notes (a)vi) </TD>
    <TD  width="1%" align=left valign="bottom">&nbsp;</TD>
    <TD width="8%" align=right valign="bottom">118,203 </TD>
    <TD  width="2%" align=left valign="bottom">&nbsp;</TD>
    <TD  width="1%" align=left valign="bottom">&nbsp;</TD>
    <TD width="8%" align=right valign="bottom">- </TD>
    <TD  width="2%" align=left valign="bottom">&nbsp;</TD>
    <TD  width="1%" align=left valign="bottom">&nbsp;</TD>
    <TD width="8%" align=right valign="bottom">118,203 </TD>
    <TD  width="2%" align=left valign="bottom">&nbsp;</TD>
    <TD  width="1%" align=left valign="bottom">&nbsp;</TD>
    <TD width="8%" align=right valign="bottom">110,739 </TD>
    <TD  width="2%" align=left valign="bottom">&nbsp;</TD>
    <TD  width="1%" align=left valign="bottom">&nbsp;</TD>
    <TD width="8%" align=right valign="bottom">- </TD>
    <TD  width="2%" align=left valign="bottom">&nbsp;</TD>
    <TD  width="1%" align=left valign="bottom">&nbsp;</TD>
    <TD width="8%" align=right valign="bottom">110,739 </TD>
    <TD  width="2%" align=left valign="bottom">&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD width="5%" >&nbsp;</TD>
    <TD align=left valign="bottom" bgColor=#e6efff>Other liabilities (a)i) </TD>
    <TD
    width="1%" align=left valign="bottom" bgColor=#e6efff style="BORDER-BOTTOM: #000000 1px solid">&nbsp;</TD>
    <TD width="8%"
    align=right valign="bottom" bgColor=#e6efff style="BORDER-BOTTOM: #000000 1px solid">73,832 </TD>
    <TD
    width="2%" align=left valign="bottom" bgColor=#e6efff style="BORDER-BOTTOM: #000000 1px solid">&nbsp;</TD>
    <TD
    width="1%" align=left valign="bottom" bgColor=#e6efff style="BORDER-BOTTOM: #000000 1px solid">&nbsp;</TD>
    <TD width="8%"
    align=right valign="bottom" bgColor=#e6efff style="BORDER-BOTTOM: #000000 1px solid">(40,511</TD>
    <TD
    width="2%" align=left valign="bottom" bgColor=#e6efff style="BORDER-BOTTOM: #000000 1px solid">) </TD>
    <TD
    width="1%" align=left valign="bottom" bgColor=#e6efff style="BORDER-BOTTOM: #000000 1px solid">&nbsp;</TD>
    <TD width="8%"
    align=right valign="bottom" bgColor=#e6efff style="BORDER-BOTTOM: #000000 1px solid">33,321 </TD>
    <TD
    width="2%" align=left valign="bottom" bgColor=#e6efff style="BORDER-BOTTOM: #000000 1px solid">&nbsp;</TD>
    <TD
    width="1%" align=left valign="bottom" bgColor=#e6efff style="BORDER-BOTTOM: #000000 1px solid">&nbsp;</TD>
    <TD width="8%"
    align=right valign="bottom" bgColor=#e6efff style="BORDER-BOTTOM: #000000 1px solid">51,318 </TD>
    <TD
    width="2%" align=left valign="bottom" bgColor=#e6efff style="BORDER-BOTTOM: #000000 1px solid">&nbsp;</TD>
    <TD
    width="1%" align=left valign="bottom" bgColor=#e6efff style="BORDER-BOTTOM: #000000 1px solid">&nbsp;</TD>
    <TD width="8%"
    align=right valign="bottom" bgColor=#e6efff style="BORDER-BOTTOM: #000000 1px solid">(36,798</TD>
    <TD
    width="2%" align=left valign="bottom" bgColor=#e6efff style="BORDER-BOTTOM: #000000 1px solid">) </TD>
    <TD
    width="1%" align=left valign="bottom" bgColor=#e6efff style="BORDER-BOTTOM: #000000 1px solid">&nbsp;</TD>
    <TD width="8%"
    align=right valign="bottom" bgColor=#e6efff style="BORDER-BOTTOM: #000000 1px solid">14,520 </TD>
    <TD
    width="2%" align=left valign="bottom" bgColor=#e6efff style="BORDER-BOTTOM: #000000 1px solid">&nbsp;</TD>
  </TR>
  <TR>
    <TD width="5%" >&nbsp;</TD>
    <TD valign="bottom">&nbsp; </TD>
    <TD  width="1%" valign="bottom">&nbsp;</TD>
    <TD width="8%" valign="bottom">&nbsp; </TD>
    <TD  width="2%" valign="bottom">&nbsp;</TD>
    <TD  width="1%" valign="bottom">&nbsp;</TD>
    <TD width="8%" valign="bottom">&nbsp; </TD>
    <TD  width="2%" valign="bottom">&nbsp;</TD>
    <TD  width="1%" valign="bottom">&nbsp;</TD>
    <TD width="8%" valign="bottom">&nbsp; </TD>
    <TD  width="2%" valign="bottom">&nbsp;</TD>
    <TD  width="1%" valign="bottom">&nbsp;</TD>
    <TD width="8%" valign="bottom">&nbsp; </TD>
    <TD  width="2%" valign="bottom">&nbsp;</TD>
    <TD  width="1%" valign="bottom">&nbsp;</TD>
    <TD width="8%" valign="bottom">&nbsp; </TD>
    <TD  width="2%" valign="bottom">&nbsp;</TD>
    <TD  width="1%" valign="bottom">&nbsp;</TD>
    <TD width="8%" valign="bottom">&nbsp; </TD>
    <TD  width="2%" valign="bottom">&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD width="5%" >&nbsp;</TD>
    <TD align=left valign="bottom" bgColor=#e6efff>&nbsp; </TD>
    <TD  width="1%" align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD width="8%" align=right valign="bottom" bgColor=#e6efff>230,245 </TD>
    <TD  width="2%" align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD  width="1%" align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD width="8%" align=right valign="bottom" bgColor=#e6efff>(40,511</TD>
    <TD  width="2%" align=left valign="bottom" bgColor=#e6efff>) </TD>
    <TD  width="1%" align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD width="8%" align=right valign="bottom" bgColor=#e6efff>189,734 </TD>
    <TD  width="2%" align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD  width="1%" align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD width="8%" align=right valign="bottom" bgColor=#e6efff>212,739 </TD>
    <TD  width="2%" align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD  width="1%" align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD width="8%" align=right valign="bottom" bgColor=#e6efff>(36,798</TD>
    <TD  width="2%" align=left valign="bottom" bgColor=#e6efff>) </TD>
    <TD  width="1%" align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD width="8%" align=right valign="bottom" bgColor=#e6efff>175,941 </TD>
    <TD  width="2%" align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
  </TR>
  <TR>
    <TD width="5%" >&nbsp;</TD>
    <TD valign="bottom">&nbsp; </TD>
    <TD  width="1%" valign="bottom">&nbsp;</TD>
    <TD width="8%" valign="bottom">&nbsp; </TD>
    <TD  width="2%" valign="bottom">&nbsp;</TD>
    <TD  width="1%" valign="bottom">&nbsp;</TD>
    <TD width="8%" valign="bottom">&nbsp; </TD>
    <TD  width="2%" valign="bottom">&nbsp;</TD>
    <TD  width="1%" valign="bottom">&nbsp;</TD>
    <TD width="8%" valign="bottom">&nbsp; </TD>
    <TD  width="2%" valign="bottom">&nbsp;</TD>
    <TD  width="1%" valign="bottom">&nbsp;</TD>
    <TD width="8%" valign="bottom">&nbsp; </TD>
    <TD  width="2%" valign="bottom">&nbsp;</TD>
    <TD  width="1%" valign="bottom">&nbsp;</TD>
    <TD width="8%" valign="bottom">&nbsp; </TD>
    <TD  width="2%" valign="bottom">&nbsp;</TD>
    <TD  width="1%" valign="bottom">&nbsp;</TD>
    <TD width="8%" valign="bottom">&nbsp; </TD>
    <TD  width="2%" valign="bottom">&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD width="5%" >&nbsp;</TD>
    <TD align=left valign="bottom" bgColor=#e6efff><B>Shareholders&#146; Equity</B> </TD>
    <TD  width="1%" align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD width="8%" align=left valign="bottom" bgColor=#e6efff>&nbsp; </TD>
    <TD  width="2%" align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD  width="1%" align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD width="8%" align=left valign="bottom" bgColor=#e6efff>&nbsp; </TD>
    <TD  width="2%" align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD  width="1%" align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD width="8%" align=left valign="bottom" bgColor=#e6efff>&nbsp; </TD>
    <TD  width="2%" align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD  width="1%" align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD width="8%" align=left valign="bottom" bgColor=#e6efff>&nbsp; </TD>
    <TD  width="2%" align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD  width="1%" align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD width="8%" align=left valign="bottom" bgColor=#e6efff>&nbsp; </TD>
    <TD  width="2%" align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD  width="1%" align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD width="8%" align=left valign="bottom" bgColor=#e6efff>&nbsp; </TD>
    <TD  width="2%" align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD width="5%" >&nbsp;</TD>
    <TD align=left valign="bottom">Share capital (a)iii) </TD>
    <TD  width="1%" align=left valign="bottom">&nbsp;</TD>
    <TD width="8%" align=right valign="bottom">671,542 </TD>
    <TD  width="2%" align=left valign="bottom">&nbsp;</TD>
    <TD  width="1%" align=left valign="bottom">&nbsp;</TD>
    <TD width="8%" align=right valign="bottom">(950</TD>
    <TD  width="2%" align=left valign="bottom">) </TD>
    <TD  width="1%" align=left valign="bottom">&nbsp;</TD>
    <TD width="8%" align=right valign="bottom">670,592 </TD>
    <TD  width="2%" align=left valign="bottom">&nbsp;</TD>
    <TD  width="1%" align=left valign="bottom">&nbsp;</TD>
    <TD width="8%" align=right valign="bottom">538,700 </TD>
    <TD  width="2%" align=left valign="bottom">&nbsp;</TD>
    <TD  width="1%" align=left valign="bottom">&nbsp;</TD>
    <TD width="8%" align=right valign="bottom">(950</TD>
    <TD  width="2%" align=left valign="bottom">) </TD>
    <TD  width="1%" align=left valign="bottom">&nbsp;</TD>
    <TD width="8%" align=right valign="bottom">537,750 </TD>
    <TD  width="2%" align=left valign="bottom">&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD width="5%" >&nbsp;</TD>
    <TD align=left valign="bottom" bgColor=#e6efff>Value assigned to: </TD>
    <TD  width="1%" align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD width="8%" align=left valign="bottom" bgColor=#e6efff>&nbsp; </TD>
    <TD  width="2%" align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD  width="1%" align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD width="8%" align=left valign="bottom" bgColor=#e6efff>&nbsp; </TD>
    <TD  width="2%" align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD  width="1%" align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD width="8%" align=left valign="bottom" bgColor=#e6efff>&nbsp; </TD>
    <TD  width="2%" align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD  width="1%" align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD width="8%" align=left valign="bottom" bgColor=#e6efff>&nbsp; </TD>
    <TD  width="2%" align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD  width="1%" align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD width="8%" align=left valign="bottom" bgColor=#e6efff>&nbsp; </TD>
    <TD  width="2%" align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD  width="1%" align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD width="8%" align=left valign="bottom" bgColor=#e6efff>&nbsp; </TD>
    <TD  width="2%" align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD width="5%" >&nbsp;</TD>
    <TD align=left valign="bottom">&nbsp;Long-term convertible notes (a)vi) </TD>
    <TD  width="1%" align=left valign="bottom">&nbsp;</TD>
    <TD width="8%" align=right valign="bottom">37,383 </TD>
    <TD  width="2%" align=left valign="bottom">&nbsp;</TD>
    <TD  width="1%" align=left valign="bottom">&nbsp;</TD>
    <TD width="8%" align=right valign="bottom">- </TD>
    <TD  width="2%" align=left valign="bottom">&nbsp;</TD>
    <TD  width="1%" align=left valign="bottom">&nbsp;</TD>
    <TD width="8%" align=right valign="bottom">37,383 </TD>
    <TD  width="2%" align=left valign="bottom">&nbsp;</TD>
    <TD  width="1%" align=left valign="bottom">&nbsp;</TD>
    <TD width="8%" align=right valign="bottom">37,383 </TD>
    <TD  width="2%" align=left valign="bottom">&nbsp;</TD>
    <TD  width="1%" align=left valign="bottom">&nbsp;</TD>
    <TD width="8%" align=right valign="bottom">- </TD>
    <TD  width="2%" align=left valign="bottom">&nbsp;</TD>
    <TD  width="1%" align=left valign="bottom">&nbsp;</TD>
    <TD width="8%" align=right valign="bottom">37,383 </TD>
    <TD  width="2%" align=left valign="bottom">&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD width="5%" >&nbsp;</TD>
    <TD align=left valign="bottom" bgColor=#e6efff>Stock options (a)v) </TD>
    <TD  width="1%" align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD width="8%" align=right valign="bottom" bgColor=#e6efff>42,660 </TD>
    <TD  width="2%" align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD  width="1%" align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD width="8%" align=right valign="bottom" bgColor=#e6efff>(4,186</TD>
    <TD  width="2%" align=left valign="bottom" bgColor=#e6efff>) </TD>
    <TD  width="1%" align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD width="8%" align=right valign="bottom" bgColor=#e6efff>38,474 </TD>
    <TD  width="2%" align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD  width="1%" align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD width="8%" align=right valign="bottom" bgColor=#e6efff>40,417 </TD>
    <TD  width="2%" align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD  width="1%" align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD width="8%" align=right valign="bottom" bgColor=#e6efff>(4,186</TD>
    <TD  width="2%" align=left valign="bottom" bgColor=#e6efff>) </TD>
    <TD  width="1%" align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD width="8%" align=right valign="bottom" bgColor=#e6efff>36,231 </TD>
    <TD  width="2%" align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD width="5%" >&nbsp;</TD>
    <TD align=left valign="bottom">Contributed surplus </TD>
    <TD  width="1%" align=left valign="bottom">&nbsp;</TD>
    <TD width="8%" align=right valign="bottom">510 </TD>
    <TD  width="2%" align=left valign="bottom">&nbsp;</TD>
    <TD  width="1%" align=left valign="bottom">&nbsp;</TD>
    <TD width="8%" align=right valign="bottom">- </TD>
    <TD  width="2%" align=left valign="bottom">&nbsp;</TD>
    <TD  width="1%" align=left valign="bottom">&nbsp;</TD>
    <TD width="8%" align=right valign="bottom">510 </TD>
    <TD  width="2%" align=left valign="bottom">&nbsp;</TD>
    <TD  width="1%" align=left valign="bottom">&nbsp;</TD>
    <TD width="8%" align=right valign="bottom">510 </TD>
    <TD  width="2%" align=left valign="bottom">&nbsp;</TD>
    <TD  width="1%" align=left valign="bottom">&nbsp;</TD>
    <TD width="8%" align=right valign="bottom">- </TD>
    <TD  width="2%" align=left valign="bottom">&nbsp;</TD>
    <TD  width="1%" align=left valign="bottom">&nbsp;</TD>
    <TD width="8%" align=right valign="bottom">510 </TD>
    <TD  width="2%" align=left valign="bottom">&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD width="5%" >&nbsp;</TD>
    <TD align=left valign="bottom" bgColor=#e6efff>Accumulated other comprehensive income
      (a)ii) </TD>
    <TD  width="1%" align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD width="8%" align=right valign="bottom" bgColor=#e6efff>1,515 </TD>
    <TD  width="2%" align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD  width="1%" align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD width="8%" align=right valign="bottom" bgColor=#e6efff>8,147 </TD>
    <TD  width="2%" align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD  width="1%" align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD width="8%" align=right valign="bottom" bgColor=#e6efff>9,662 </TD>
    <TD  width="2%" align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD  width="1%" align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD width="8%" align=right valign="bottom" bgColor=#e6efff>(11,747</TD>
    <TD  width="2%" align=left valign="bottom" bgColor=#e6efff>) </TD>
    <TD  width="1%" align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD width="8%" align=right valign="bottom" bgColor=#e6efff>6,264 </TD>
    <TD  width="2%" align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD  width="1%" align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD width="8%" align=right valign="bottom" bgColor=#e6efff>(5,483</TD>
    <TD  width="2%" align=left valign="bottom" bgColor=#e6efff>) </TD>
  </TR>
  <TR vAlign=top>
    <TD width="5%" >&nbsp;</TD>
    <TD align=left valign="bottom">Deficit (a)i), (a)ii), (a)iii), (a)vi) </TD>
    <TD  width="1%"
    align=left valign="bottom" style="BORDER-BOTTOM: #000000 1px solid">&nbsp;</TD>
    <TD width="8%"
      align=right valign="bottom" style="BORDER-BOTTOM: #000000 1px solid">277,666 </TD>
    <TD  width="2%"
    align=left valign="bottom" style="BORDER-BOTTOM: #000000 1px solid">&nbsp;</TD>
    <TD  width="1%"
    align=left valign="bottom" style="BORDER-BOTTOM: #000000 1px solid">&nbsp;</TD>
    <TD width="8%"
      align=right valign="bottom" style="BORDER-BOTTOM: #000000 1px solid">(233,247</TD>
    <TD  width="2%"
    align=left valign="bottom" style="BORDER-BOTTOM: #000000 1px solid">) </TD>
    <TD  width="1%"
    align=left valign="bottom" style="BORDER-BOTTOM: #000000 1px solid">&nbsp;</TD>
    <TD width="8%" align=right valign="bottom" style="BORDER-BOTTOM: #000000 1px solid">44,419    </TD>
    <TD  width="2%"
    align=left valign="bottom" style="BORDER-BOTTOM: #000000 1px solid">&nbsp;</TD>
    <TD  width="1%"
    align=left valign="bottom" style="BORDER-BOTTOM: #000000 1px solid">&nbsp;</TD>
    <TD width="8%"
    align=right valign="bottom" style="BORDER-BOTTOM: #000000 1px solid">(68,573</TD>
    <TD  width="2%"
    align=left valign="bottom" style="BORDER-BOTTOM: #000000 1px solid">) </TD>
    <TD  width="1%"
    align=left valign="bottom" style="BORDER-BOTTOM: #000000 1px solid">&nbsp;</TD>
    <TD width="8%"
      align=right valign="bottom" style="BORDER-BOTTOM: #000000 1px solid">(231,826</TD>
    <TD  width="2%"
    align=left valign="bottom" style="BORDER-BOTTOM: #000000 1px solid">) </TD>
    <TD  width="1%"
    align=left valign="bottom" style="BORDER-BOTTOM: #000000 1px solid">&nbsp;</TD>
    <TD width="8%"
      align=right valign="bottom" style="BORDER-BOTTOM: #000000 1px solid">(300,399</TD>
    <TD  width="2%"
    align=left valign="bottom" style="BORDER-BOTTOM: #000000 1px solid">) </TD>
  </TR>
  <TR>
    <TD width="5%" >&nbsp;</TD>
    <TD valign="bottom" bgColor=#e6efff>&nbsp; </TD>
    <TD  width="1%" valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD width="8%" valign="bottom" bgColor=#e6efff>&nbsp; </TD>
    <TD  width="2%" valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD  width="1%" valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD width="8%" valign="bottom" bgColor=#e6efff>&nbsp; </TD>
    <TD  width="2%" valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD  width="1%" valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD width="8%" valign="bottom" bgColor=#e6efff>&nbsp; </TD>
    <TD  width="2%" valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD  width="1%" valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD width="8%" valign="bottom" bgColor=#e6efff>&nbsp; </TD>
    <TD  width="2%" valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD  width="1%" valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD width="8%" valign="bottom" bgColor=#e6efff>&nbsp; </TD>
    <TD  width="2%" valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD  width="1%" valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD width="8%" valign="bottom" bgColor=#e6efff>&nbsp; </TD>
    <TD  width="2%" valign="bottom" bgColor=#e6efff>&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD width="5%" >&nbsp;</TD>
    <TD align=left valign="bottom">&nbsp; </TD>
    <TD  width="1%" align=left valign="bottom">&nbsp;</TD>
    <TD width="8%" align=right valign="bottom">1,031,276 </TD>
    <TD  width="2%" align=left valign="bottom">&nbsp;</TD>
    <TD  width="1%" align=left valign="bottom">&nbsp;</TD>
    <TD width="8%" align=right valign="bottom">(230,236</TD>
    <TD  width="2%" align=left valign="bottom">) </TD>
    <TD  width="1%" align=left valign="bottom">&nbsp;</TD>
    <TD width="8%" align=right valign="bottom">801,040 </TD>
    <TD  width="2%" align=left valign="bottom">&nbsp;</TD>
    <TD  width="1%" align=left valign="bottom">&nbsp;</TD>
    <TD width="8%" align=right valign="bottom">536,690 </TD>
    <TD  width="2%" align=left valign="bottom">&nbsp;</TD>
    <TD  width="1%" align=left valign="bottom">&nbsp;</TD>
    <TD width="8%" align=right valign="bottom">(230,698</TD>
    <TD  width="2%" align=left valign="bottom">) </TD>
    <TD  width="1%" align=left valign="bottom">&nbsp;</TD>
    <TD width="8%" align=right valign="bottom">305,992 </TD>
    <TD  width="2%" align=left valign="bottom">&nbsp;</TD>
  </TR>
  <TR>
    <TD width="5%" >&nbsp;</TD>
    <TD valign="bottom" bgColor=#e6efff>&nbsp; </TD>
    <TD  width="1%" valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD width="8%" valign="bottom" bgColor=#e6efff>&nbsp; </TD>
    <TD  width="2%" valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD  width="1%" valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD width="8%" valign="bottom" bgColor=#e6efff>&nbsp; </TD>
    <TD  width="2%" valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD  width="1%" valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD width="8%" valign="bottom" bgColor=#e6efff>&nbsp; </TD>
    <TD  width="2%" valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD  width="1%" valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD width="8%" valign="bottom" bgColor=#e6efff>&nbsp; </TD>
    <TD  width="2%" valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD  width="1%" valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD width="8%" valign="bottom" bgColor=#e6efff>&nbsp; </TD>
    <TD  width="2%" valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD  width="1%" valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD width="8%" valign="bottom" bgColor=#e6efff>&nbsp; </TD>
    <TD  width="2%" valign="bottom" bgColor=#e6efff>&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD width="5%" >&nbsp;</TD>
    <TD align=left valign="bottom">Non-controlling interest </TD>
    <TD  width="1%"
    align=left valign="bottom" style="BORDER-BOTTOM: #000000 1px solid">&nbsp;</TD>
    <TD width="8%" align=right valign="bottom" style="BORDER-BOTTOM: #000000 1px solid">496</TD>
    <TD  width="2%"
    align=left valign="bottom" style="BORDER-BOTTOM: #000000 1px solid">&nbsp;</TD>
    <TD  width="1%"
    align=left valign="bottom" style="BORDER-BOTTOM: #000000 1px solid">&nbsp;</TD>
    <TD width="8%" align=right valign="bottom" style="BORDER-BOTTOM: #000000 1px solid">- </TD>
    <TD  width="2%"
    align=left valign="bottom" style="BORDER-BOTTOM: #000000 1px solid">&nbsp;</TD>
    <TD  width="1%"
    align=left valign="bottom" style="BORDER-BOTTOM: #000000 1px solid">&nbsp;</TD>
    <TD width="8%" align=right valign="bottom" style="BORDER-BOTTOM: #000000 1px solid">496</TD>
    <TD  width="2%"
    align=left valign="bottom" style="BORDER-BOTTOM: #000000 1px solid">&nbsp;</TD>
    <TD  width="1%"
    align=left valign="bottom" style="BORDER-BOTTOM: #000000 1px solid">&nbsp;</TD>
    <TD width="8%" align=right valign="bottom" style="BORDER-BOTTOM: #000000 1px solid">496</TD>
    <TD  width="2%"
    align=left valign="bottom" style="BORDER-BOTTOM: #000000 1px solid">&nbsp;</TD>
    <TD  width="1%"
    align=left valign="bottom" style="BORDER-BOTTOM: #000000 1px solid">&nbsp;</TD>
    <TD width="8%" align=right valign="bottom" style="BORDER-BOTTOM: #000000 1px solid">- </TD>
    <TD  width="2%"
    align=left valign="bottom" style="BORDER-BOTTOM: #000000 1px solid">&nbsp;</TD>
    <TD  width="1%"
    align=left valign="bottom" style="BORDER-BOTTOM: #000000 1px solid">&nbsp;</TD>
    <TD width="8%" align=right valign="bottom" style="BORDER-BOTTOM: #000000 1px solid">496</TD>
    <TD  width="2%"
    align=left valign="bottom" style="BORDER-BOTTOM: #000000 1px solid">&nbsp;</TD>
  </TR>
  <TR>
    <TD width="5%" >&nbsp;</TD>
    <TD valign="bottom" bgColor=#e6efff>&nbsp; </TD>
    <TD  width="1%" valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD width="8%" valign="bottom" bgColor=#e6efff>&nbsp; </TD>
    <TD  width="2%" valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD  width="1%" valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD width="8%" valign="bottom" bgColor=#e6efff>&nbsp; </TD>
    <TD  width="2%" valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD  width="1%" valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD width="8%" valign="bottom" bgColor=#e6efff>&nbsp; </TD>
    <TD  width="2%" valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD  width="1%" valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD width="8%" valign="bottom" bgColor=#e6efff>&nbsp; </TD>
    <TD  width="2%" valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD  width="1%" valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD width="8%" valign="bottom" bgColor=#e6efff>&nbsp; </TD>
    <TD  width="2%" valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD  width="1%" valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD width="8%" valign="bottom" bgColor=#e6efff>&nbsp; </TD>
    <TD  width="2%" valign="bottom" bgColor=#e6efff>&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD width="5%" >&nbsp;</TD>
    <TD align=left valign="bottom">&nbsp; </TD>
    <TD  width="1%"
    align=left valign="bottom" style="BORDER-BOTTOM: #000000 2px solid">&nbsp;</TD>
    <TD width="8%"
      align=right valign="bottom" style="BORDER-BOTTOM: #000000 2px solid">1,262,017 </TD>
    <TD  width="2%"
    align=left valign="bottom" style="BORDER-BOTTOM: #000000 2px solid">&nbsp;</TD>
    <TD  width="1%"
    align=left valign="bottom" style="BORDER-BOTTOM: #000000 2px solid">&nbsp;</TD>
    <TD width="8%"
      align=right valign="bottom" style="BORDER-BOTTOM: #000000 2px solid">(270,747</TD>
    <TD  width="2%"
    align=left valign="bottom" style="BORDER-BOTTOM: #000000 2px solid">) </TD>
    <TD  width="1%"
    align=left valign="bottom" style="BORDER-BOTTOM: #000000 2px solid">&nbsp;</TD>
    <TD width="8%"
      align=right valign="bottom" style="BORDER-BOTTOM: #000000 2px solid">991,270 </TD>
    <TD  width="2%"
    align=left valign="bottom" style="BORDER-BOTTOM: #000000 2px solid">&nbsp;</TD>
    <TD  width="1%"
    align=left valign="bottom" style="BORDER-BOTTOM: #000000 2px solid">&nbsp;</TD>
    <TD width="8%"
      align=right valign="bottom" style="BORDER-BOTTOM: #000000 2px solid">749,925 </TD>
    <TD  width="2%"
    align=left valign="bottom" style="BORDER-BOTTOM: #000000 2px solid">&nbsp;</TD>
    <TD  width="1%"
    align=left valign="bottom" style="BORDER-BOTTOM: #000000 2px solid">&nbsp;</TD>
    <TD width="8%"
      align=right valign="bottom" style="BORDER-BOTTOM: #000000 2px solid">(267,496</TD>
    <TD  width="2%"
    align=left valign="bottom" style="BORDER-BOTTOM: #000000 2px solid">) </TD>
    <TD  width="1%"
    align=left valign="bottom" style="BORDER-BOTTOM: #000000 2px solid">&nbsp;</TD>
    <TD width="8%"
      align=right valign="bottom" style="BORDER-BOTTOM: #000000 2px solid">482,429 </TD>
<TD  width="2%"
    align=left valign="bottom" style="BORDER-BOTTOM: #000000 2px solid">&nbsp;</TD>
  </TR></TABLE>
<P align=right>34</P>
<HR style="PAGE-BREAK-AFTER: always" align=center color=black SIZE=5
width="100%" noShade>
<!--$$/page=--><A name=page_42></A><BR>
<TABLE
style="BORDER-COLOR: black; BORDER-COLLAPSE: collapse; FONT-SIZE: 10pt; "
border=0 cellSpacing=0 cellPadding=0 width="100%">

  <TR vAlign=top>
    <TD align=left><B>Silver Standard Resources Inc.</B> </TD></TR>
  <TR vAlign=top>
    <TD align=left>Notes to Consolidated Financial Statements </TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>December 31, 2010,
      2009 and 2008 </TD></TR>
  <TR vAlign=top>
    <TD align=left>(tabular amounts expressed in thousands of United States
      dollars unless otherwise stated) </TD></TR></TABLE><BR>
<TABLE
style="BORDER-COLOR: black; BORDER-COLLAPSE: collapse; FONT-SIZE: 10pt; "
border=0 cellSpacing=0 cellPadding=0 width="100%">

  <TR vAlign=top>
    <TD align=left ><B>21</B> </TD>
    <TD width="95%" align=left><B>MATERIAL DIFFERENCES BETWEEN CANADIAN AND
      UNITED</B> <B>STATES</B> <B>GENERALLY ACCEPTED ACCOUNTING PRINCIPLES
      (GAAP) (Cont&#146;d)</B> </TD></TR></TABLE>
<P style="MARGIN-LEFT: 5%" align=justify><B>Consolidated summarized statements
of loss and other comprehensive income (loss):</B></P>
<TABLE
style="BORDER-COLOR: black; BORDER-COLLAPSE: collapse; FONT-SIZE: 10pt; "
border=0 cellSpacing=0 cellPadding=0 width="100%">

  <TR vAlign=top>
    <TD width="5%"  >&nbsp;</TD>
    <TD align=left valign="bottom">&nbsp; </TD>
    <TD  width="1%" align=left valign="bottom">&nbsp;</TD>
    <TD width="10%" align=right valign="bottom"><B>2010</B> </TD>
    <TD  width="2%" align=left valign="bottom">&nbsp;</TD>
    <TD  width="1%" align=left valign="bottom">&nbsp;</TD>
    <TD width="10%" align=right valign="bottom"><B>2009</B> </TD>
    <TD  width="2%" align=left valign="bottom">&nbsp;</TD>
    <TD  width="1%" align=left valign="bottom">&nbsp;</TD>
    <TD width="10%" align=right valign="bottom"><B>2008</B> </TD>
    <TD  width="2%" align=left valign="bottom">&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD width="5%" >&nbsp;</TD>
    <TD align=left valign="bottom">&nbsp; </TD>
    <TD  width="1%"
    align=left valign="bottom" style="BORDER-BOTTOM: #000000 1px solid"><B></B></TD>
    <TD width="10%"
      align=right valign="bottom" style="BORDER-BOTTOM: #000000 1px solid"><STRONG>$</STRONG>&nbsp;</TD>
    <TD  width="2%"
    align=left valign="bottom" style="BORDER-BOTTOM: #000000 1px solid">&nbsp;</TD>
    <TD  width="1%"
    align=left valign="bottom" style="BORDER-BOTTOM: #000000 1px solid"><B></B></TD>
    <TD width="10%"
      align=right valign="bottom" style="BORDER-BOTTOM: #000000 1px solid"><STRONG>$</STRONG>&nbsp;</TD>
    <TD  width="2%"
    align=left valign="bottom" style="BORDER-BOTTOM: #000000 1px solid">&nbsp;</TD>
    <TD  width="1%"
    align=left valign="bottom" style="BORDER-BOTTOM: #000000 1px solid"><B></B></TD>
    <TD width="10%"
      align=right valign="bottom" style="BORDER-BOTTOM: #000000 1px solid"><STRONG>$</STRONG>&nbsp;</TD>
    <TD  width="2%"
    align=left valign="bottom" style="BORDER-BOTTOM: #000000 1px solid">&nbsp;</TD>
  </TR>
  <TR>
    <TD width="5%" >&nbsp;</TD>
    <TD valign="bottom">&nbsp; </TD>
    <TD  width="1%" valign="bottom">&nbsp;</TD>
    <TD width="10%" valign="bottom">&nbsp; </TD>
    <TD  width="2%" valign="bottom">&nbsp;</TD>
    <TD  width="1%" valign="bottom">&nbsp;</TD>
    <TD width="10%" valign="bottom">&nbsp; </TD>
    <TD  width="2%" valign="bottom">&nbsp;</TD>
    <TD  width="1%" valign="bottom">&nbsp;</TD>
    <TD width="10%" valign="bottom">&nbsp; </TD>
    <TD  width="2%" valign="bottom">&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD width="5%" >&nbsp;</TD>
    <TD align=left valign="bottom" bgColor=#e6efff><B>Earnings (loss) in accordance with
      Canadian GAAP</B> </TD>
    <TD  width="1%" align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD width="10%" align=right valign="bottom" bgColor=#e6efff>346,239 </TD>
    <TD  width="2%" align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD  width="1%" align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD width="10%" align=right valign="bottom" bgColor=#e6efff>(13,193</TD>
    <TD  width="2%" align=left valign="bottom" bgColor=#e6efff>) </TD>
    <TD  width="1%" align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD width="10%" align=right valign="bottom" bgColor=#e6efff>(5,946</TD>
    <TD  width="2%" align=left valign="bottom" bgColor=#e6efff>) </TD>
  </TR>
  <TR vAlign=top>
    <TD width="5%" >&nbsp;</TD>
    <TD align=left valign="bottom">Mineral property costs for the year (a)i) </TD>
    <TD  width="1%" align=left valign="bottom">&nbsp;</TD>
    <TD width="10%" align=right valign="bottom">(47,695</TD>
    <TD  width="2%" align=left valign="bottom">) </TD>
    <TD  width="1%" align=left valign="bottom">&nbsp;</TD>
    <TD width="10%" align=right valign="bottom">(27,997</TD>
    <TD  width="2%" align=left valign="bottom">) </TD>
    <TD  width="1%" align=left valign="bottom">&nbsp;</TD>
    <TD width="10%" align=right valign="bottom">(37,763</TD>
    <TD  width="2%" align=left valign="bottom">) </TD>
  </TR>
  <TR vAlign=top>
    <TD width="5%" >&nbsp;</TD>
    <TD align=left valign="bottom" bgColor=#e6efff>Operating costs (a)i) </TD>
    <TD  width="1%" align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD width="10%" align=right valign="bottom" bgColor=#e6efff>- </TD>
    <TD  width="2%" align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD  width="1%" align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD width="10%" align=right valign="bottom" bgColor=#e6efff>(5,142</TD>
    <TD  width="2%" align=left valign="bottom" bgColor=#e6efff>) </TD>
    <TD  width="1%" align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD width="10%" align=right valign="bottom" bgColor=#e6efff>- </TD>
    <TD  width="2%" align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD width="5%" >&nbsp;</TD>
    <TD align=left valign="bottom">Adjustment for depletion, depreciation and amortization
      (a)i) </TD>
    <TD  width="1%" align=left valign="bottom">&nbsp;</TD>
    <TD width="10%" align=right valign="bottom">3,370 </TD>
    <TD  width="2%" align=left valign="bottom">&nbsp;</TD>
    <TD  width="1%" align=left valign="bottom">&nbsp;</TD>
    <TD width="10%" align=right valign="bottom">(30</TD>
    <TD  width="2%" align=left valign="bottom">) </TD>
    <TD  width="1%" align=left valign="bottom">&nbsp;</TD>
    <TD width="10%" align=right valign="bottom">- </TD>
    <TD  width="2%" align=left valign="bottom">&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD width="5%" >&nbsp;</TD>
    <TD align=left valign="bottom" bgColor=#e6efff>Future income tax expense (recovery) on
      marketable securities (a)ii) </TD>
    <TD  width="1%" align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD width="10%" align=right valign="bottom" bgColor=#e6efff>(1,883</TD>
    <TD  width="2%" align=left valign="bottom" bgColor=#e6efff>) </TD>
    <TD  width="1%" align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD width="10%" align=right valign="bottom" bgColor=#e6efff>(1,034</TD>
    <TD  width="2%" align=left valign="bottom" bgColor=#e6efff>) </TD>
    <TD  width="1%" align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD width="10%" align=right valign="bottom" bgColor=#e6efff>3,393 </TD>
    <TD  width="2%" align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD width="5%" >&nbsp;</TD>
    <TD align=left valign="bottom">Reversal of future income tax expense (recovery), net of
      foreign exchange (a)i) </TD>
    <TD  width="1%" align=left valign="bottom">&nbsp;</TD>
    <TD width="10%" align=right valign="bottom">1,101 </TD>
    <TD  width="2%" align=left valign="bottom">&nbsp;</TD>
    <TD  width="1%" align=left valign="bottom">&nbsp;</TD>
    <TD width="10%" align=right valign="bottom">(985</TD>
    <TD  width="2%" align=left valign="bottom">) </TD>
    <TD  width="1%" align=left valign="bottom">&nbsp;</TD>
    <TD width="10%" align=right valign="bottom">- </TD>
    <TD  width="2%" align=left valign="bottom">&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD width="5%" >&nbsp;</TD>
    <TD align=left valign="bottom" bgColor=#e6efff>Financing fees on convertible notes (a)vi)    </TD>
    <TD  width="1%" align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD width="10%" align=right valign="bottom" bgColor=#e6efff>(754</TD>
    <TD  width="2%" align=left valign="bottom" bgColor=#e6efff>) </TD>
    <TD  width="1%" align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD width="10%" align=right valign="bottom" bgColor=#e6efff>(126</TD>
    <TD  width="2%" align=left valign="bottom" bgColor=#e6efff>) </TD>
    <TD  width="1%" align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD width="10%" align=right valign="bottom" bgColor=#e6efff>3,600 </TD>
    <TD  width="2%" align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD width="5%" >&nbsp;</TD>
    <TD align=left valign="bottom">Gain on sale of mineral property (a)i) </TD>
    <TD  width="1%" align=left valign="bottom">&nbsp;</TD>
    <TD width="10%" align=right valign="bottom">44,440 </TD>
    <TD  width="2%" align=left valign="bottom">&nbsp;</TD>
    <TD  width="1%" align=left valign="bottom">&nbsp;</TD>
    <TD width="10%" align=right valign="bottom">221 </TD>
    <TD  width="2%" align=left valign="bottom">&nbsp;</TD>
    <TD  width="1%" align=left valign="bottom">&nbsp;</TD>
    <TD width="10%" align=right valign="bottom">6,948 </TD>
    <TD  width="2%" align=left valign="bottom">&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD width="5%" >&nbsp;</TD>
    <TD align=left valign="bottom" bgColor=#e6efff>Mineral costs written-off during the year
      (a)i) </TD>
    <TD
    width="1%" align=left valign="bottom" bgColor=#e6efff style="BORDER-BOTTOM: #000000 1px solid">&nbsp;</TD>
    <TD width="10%"
    align=right valign="bottom" bgColor=#e6efff style="BORDER-BOTTOM: #000000 1px solid">- </TD>
    <TD
    width="2%" align=left valign="bottom" bgColor=#e6efff style="BORDER-BOTTOM: #000000 1px solid">&nbsp;</TD>
    <TD
    width="1%" align=left valign="bottom" bgColor=#e6efff style="BORDER-BOTTOM: #000000 1px solid">&nbsp;</TD>
    <TD width="10%"
    align=right valign="bottom" bgColor=#e6efff style="BORDER-BOTTOM: #000000 1px solid">377 </TD>
    <TD
    width="2%" align=left valign="bottom" bgColor=#e6efff style="BORDER-BOTTOM: #000000 1px solid">&nbsp;</TD>
    <TD
    width="1%" align=left valign="bottom" bgColor=#e6efff style="BORDER-BOTTOM: #000000 1px solid">&nbsp;</TD>
    <TD width="10%"
    align=right valign="bottom" bgColor=#e6efff style="BORDER-BOTTOM: #000000 1px solid">- </TD>
    <TD
    width="2%" align=left valign="bottom" bgColor=#e6efff style="BORDER-BOTTOM: #000000 1px solid">&nbsp;</TD>
  </TR>
  <TR>
    <TD width="5%" >&nbsp;</TD>
    <TD valign="bottom">&nbsp; </TD>
    <TD  width="1%" valign="bottom">&nbsp;</TD>
    <TD width="10%" valign="bottom">&nbsp; </TD>
    <TD  width="2%" valign="bottom">&nbsp;</TD>
    <TD  width="1%" valign="bottom">&nbsp;</TD>
    <TD width="10%" valign="bottom">&nbsp; </TD>
    <TD  width="2%" valign="bottom">&nbsp;</TD>
    <TD  width="1%" valign="bottom">&nbsp;</TD>
    <TD width="10%" valign="bottom">&nbsp; </TD>
    <TD  width="2%" valign="bottom">&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD width="5%" >&nbsp;</TD>
    <TD align=left valign="bottom" bgColor=#e6efff><B>Earnings (loss) in accordance with U.S.
      GAAP</B> </TD>
    <TD
    width="1%" align=left valign="bottom" bgColor=#e6efff style="BORDER-BOTTOM: #000000 1px solid">&nbsp;</TD>
    <TD width="10%"
    align=right valign="bottom" bgColor=#e6efff style="BORDER-BOTTOM: #000000 1px solid">344,818 </TD>
    <TD
    width="2%" align=left valign="bottom" bgColor=#e6efff style="BORDER-BOTTOM: #000000 1px solid">&nbsp;</TD>
    <TD
    width="1%" align=left valign="bottom" bgColor=#e6efff style="BORDER-BOTTOM: #000000 1px solid">&nbsp;</TD>
    <TD width="10%"
    align=right valign="bottom" bgColor=#e6efff style="BORDER-BOTTOM: #000000 1px solid">(47,909</TD>
    <TD
    width="2%" align=left valign="bottom" bgColor=#e6efff style="BORDER-BOTTOM: #000000 1px solid">) </TD>
    <TD
    width="1%" align=left valign="bottom" bgColor=#e6efff style="BORDER-BOTTOM: #000000 1px solid">&nbsp;</TD>
    <TD width="10%"
    align=right valign="bottom" bgColor=#e6efff style="BORDER-BOTTOM: #000000 1px solid">(29,768</TD>
    <TD
    width="2%" align=left valign="bottom" bgColor=#e6efff style="BORDER-BOTTOM: #000000 1px solid">) </TD>
  </TR>
  <TR>
    <TD width="5%" >&nbsp;</TD>
    <TD valign="bottom">&nbsp; </TD>
    <TD  width="1%" valign="bottom">&nbsp;</TD>
    <TD width="10%" valign="bottom">&nbsp; </TD>
    <TD  width="2%" valign="bottom">&nbsp;</TD>
    <TD  width="1%" valign="bottom">&nbsp;</TD>
    <TD width="10%" valign="bottom">&nbsp; </TD>
    <TD  width="2%" valign="bottom">&nbsp;</TD>
    <TD  width="1%" valign="bottom">&nbsp;</TD>
    <TD width="10%" valign="bottom">&nbsp; </TD>
    <TD  width="2%" valign="bottom">&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD width="5%" >&nbsp;</TD>
    <TD align=left valign="bottom" bgColor=#e6efff><B>Other comprehensive income (loss)</B>
      <B>in accordance with Canadian GAAP</B> </TD>
    <TD  width="1%" align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD width="10%" align=right valign="bottom" bgColor=#e6efff>13,262 </TD>
    <TD  width="2%" align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD  width="1%" align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD width="10%" align=right valign="bottom" bgColor=#e6efff>7,822 </TD>
    <TD  width="2%" align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD  width="1%" align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD width="10%" align=right valign="bottom" bgColor=#e6efff>(114,106</TD>
    <TD  width="2%" align=left valign="bottom" bgColor=#e6efff>) </TD>
  </TR>
  <TR vAlign=top>
    <TD width="5%" >&nbsp;</TD>
    <TD align=left valign="bottom">Translation adjustment </TD>
    <TD  width="1%" align=left valign="bottom">&nbsp;</TD>
    <TD width="10%" align=right valign="bottom">- </TD>
    <TD  width="2%" align=left valign="bottom">&nbsp;</TD>
    <TD  width="1%" align=left valign="bottom">&nbsp;</TD>
    <TD width="10%" align=right valign="bottom">- </TD>
    <TD  width="2%" align=left valign="bottom">&nbsp;</TD>
    <TD  width="1%" align=left valign="bottom">&nbsp;</TD>
    <TD width="10%" align=right valign="bottom">48,948 </TD>
    <TD  width="2%" align=left valign="bottom">&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD width="5%" >&nbsp;</TD>
    <TD align=left valign="bottom" bgColor=#e6efff>Future income tax recovery (expense) on
      marketable securities (a)ii) </TD>
    <TD
    width="1%" align=left valign="bottom" bgColor=#e6efff style="BORDER-BOTTOM: #000000 1px solid">&nbsp;</TD>
    <TD width="10%"
    align=right valign="bottom" bgColor=#e6efff style="BORDER-BOTTOM: #000000 1px solid">1,883 </TD>
    <TD
    width="2%" align=left valign="bottom" bgColor=#e6efff style="BORDER-BOTTOM: #000000 1px solid">&nbsp;</TD>
    <TD
    width="1%" align=left valign="bottom" bgColor=#e6efff style="BORDER-BOTTOM: #000000 1px solid">&nbsp;</TD>
    <TD width="10%"
    align=right valign="bottom" bgColor=#e6efff style="BORDER-BOTTOM: #000000 1px solid">1,034 </TD>
    <TD
    width="2%" align=left valign="bottom" bgColor=#e6efff style="BORDER-BOTTOM: #000000 1px solid">&nbsp;</TD>
    <TD
    width="1%" align=left valign="bottom" bgColor=#e6efff style="BORDER-BOTTOM: #000000 1px solid">&nbsp;</TD>
    <TD width="10%"
    align=right valign="bottom" bgColor=#e6efff style="BORDER-BOTTOM: #000000 1px solid">(3,393</TD>
    <TD
    width="2%" align=left valign="bottom" bgColor=#e6efff style="BORDER-BOTTOM: #000000 1px solid">) </TD>
  </TR>
  <TR>
    <TD width="5%" >&nbsp;</TD>
    <TD valign="bottom">&nbsp; </TD>
    <TD  width="1%" valign="bottom">&nbsp;</TD>
    <TD width="10%" valign="bottom">&nbsp; </TD>
    <TD  width="2%" valign="bottom">&nbsp;</TD>
    <TD  width="1%" valign="bottom">&nbsp;</TD>
    <TD width="10%" valign="bottom">&nbsp; </TD>
    <TD  width="2%" valign="bottom">&nbsp;</TD>
    <TD  width="1%" valign="bottom">&nbsp;</TD>
    <TD width="10%" valign="bottom">&nbsp; </TD>
    <TD  width="2%" valign="bottom">&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD width="5%" >&nbsp;</TD>
    <TD align=left valign="bottom" bgColor=#e6efff><B>Other comprehensive income (loss) in
      accordance</B> <B>with U.S. GAAP</B> </TD>
    <TD
    width="1%" align=left valign="bottom" bgColor=#e6efff style="BORDER-BOTTOM: #000000 1px solid">&nbsp;</TD>
    <TD width="10%"
    align=right valign="bottom" bgColor=#e6efff style="BORDER-BOTTOM: #000000 1px solid">15,145 </TD>
    <TD
    width="2%" align=left valign="bottom" bgColor=#e6efff style="BORDER-BOTTOM: #000000 1px solid">&nbsp;</TD>
    <TD
    width="1%" align=left valign="bottom" bgColor=#e6efff style="BORDER-BOTTOM: #000000 1px solid">&nbsp;</TD>
    <TD width="10%"
    align=right valign="bottom" bgColor=#e6efff style="BORDER-BOTTOM: #000000 1px solid">8,856 </TD>
    <TD
    width="2%" align=left valign="bottom" bgColor=#e6efff style="BORDER-BOTTOM: #000000 1px solid">&nbsp;</TD>
    <TD
    width="1%" align=left valign="bottom" bgColor=#e6efff style="BORDER-BOTTOM: #000000 1px solid">&nbsp;</TD>
    <TD width="10%"
    align=right valign="bottom" bgColor=#e6efff style="BORDER-BOTTOM: #000000 1px solid">(68,551</TD>
    <TD
    width="2%" align=left valign="bottom" bgColor=#e6efff style="BORDER-BOTTOM: #000000 1px solid">) </TD>
  </TR>
  <TR>
    <TD width="5%" >&nbsp;</TD>
    <TD valign="bottom">&nbsp; </TD>
    <TD  width="1%" valign="bottom">&nbsp;</TD>
    <TD width="10%" valign="bottom">&nbsp; </TD>
    <TD  width="2%" valign="bottom">&nbsp;</TD>
    <TD  width="1%" valign="bottom">&nbsp;</TD>
    <TD width="10%" valign="bottom">&nbsp; </TD>
    <TD  width="2%" valign="bottom">&nbsp;</TD>
    <TD  width="1%" valign="bottom">&nbsp;</TD>
    <TD width="10%" valign="bottom">&nbsp; </TD>
    <TD  width="2%" valign="bottom">&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD width="5%" >&nbsp;</TD>
    <TD align=left valign="bottom" bgColor=#e6efff><B>Total comprehensive income (loss) in
      accordance</B> <B>with U.S. GAAP</B> </TD>
    <TD
    width="1%" align=left valign="bottom" bgColor=#e6efff style="BORDER-BOTTOM: #000000 1px solid">&nbsp;</TD>
    <TD width="10%"
    align=right valign="bottom" bgColor=#e6efff style="BORDER-BOTTOM: #000000 1px solid">359,963 </TD>
    <TD
    width="2%" align=left valign="bottom" bgColor=#e6efff style="BORDER-BOTTOM: #000000 1px solid">&nbsp;</TD>
    <TD
    width="1%" align=left valign="bottom" bgColor=#e6efff style="BORDER-BOTTOM: #000000 1px solid">&nbsp;</TD>
    <TD width="10%"
    align=right valign="bottom" bgColor=#e6efff style="BORDER-BOTTOM: #000000 1px solid">(39,053</TD>
    <TD
    width="2%" align=left valign="bottom" bgColor=#e6efff style="BORDER-BOTTOM: #000000 1px solid">) </TD>
    <TD
    width="1%" align=left valign="bottom" bgColor=#e6efff style="BORDER-BOTTOM: #000000 1px solid">&nbsp;</TD>
    <TD width="10%"
    align=right valign="bottom" bgColor=#e6efff style="BORDER-BOTTOM: #000000 1px solid">(98,319</TD>
    <TD
    width="2%" align=left valign="bottom" bgColor=#e6efff style="BORDER-BOTTOM: #000000 1px solid">) </TD>
  </TR>
  <TR>
    <TD width="5%" >&nbsp;</TD>
    <TD valign="bottom">&nbsp; </TD>
    <TD  width="1%" valign="bottom">&nbsp;</TD>
    <TD width="10%" valign="bottom">&nbsp; </TD>
    <TD  width="2%" valign="bottom">&nbsp;</TD>
    <TD  width="1%" valign="bottom">&nbsp;</TD>
    <TD width="10%" valign="bottom">&nbsp; </TD>
    <TD  width="2%" valign="bottom">&nbsp;</TD>
    <TD  width="1%" valign="bottom">&nbsp;</TD>
    <TD width="10%" valign="bottom">&nbsp; </TD>
    <TD  width="2%" valign="bottom">&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD width="5%" >&nbsp;</TD>
    <TD align=left valign="bottom" bgColor=#e6efff>Weighted-average common shares (000&#146;s) </TD>
    <TD  width="1%" align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD width="10%" align=left valign="bottom" bgColor=#e6efff>&nbsp; </TD>
    <TD  width="2%" align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD  width="1%" align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD width="10%" align=left valign="bottom" bgColor=#e6efff>&nbsp; </TD>
    <TD  width="2%" align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD  width="1%" align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD width="10%" align=left valign="bottom" bgColor=#e6efff>&nbsp; </TD>
    <TD  width="2%" align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD width="5%" >&nbsp;</TD>
    <TD align=left valign="bottom">Basic </TD>
    <TD  width="1%" align=left valign="bottom">&nbsp;</TD>
    <TD width="10%" align=right valign="bottom">77,972 </TD>
    <TD  width="2%" align=left valign="bottom">&nbsp;</TD>
    <TD  width="1%" align=left valign="bottom">&nbsp;</TD>
    <TD width="10%" align=right valign="bottom">68,845 </TD>
    <TD  width="2%" align=left valign="bottom">&nbsp;</TD>
    <TD  width="1%" align=left valign="bottom">&nbsp;</TD>
    <TD width="10%" align=right valign="bottom">62,694 </TD>
    <TD  width="2%" align=left valign="bottom">&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD width="5%" >&nbsp;</TD>
    <TD align=left valign="bottom" bgColor=#e6efff>Diluted </TD>
    <TD  width="1%" align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD width="10%" align=right valign="bottom" bgColor=#e6efff>78,356 </TD>
    <TD  width="2%" align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD  width="1%" align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD width="10%" align=right valign="bottom" bgColor=#e6efff>68,845 </TD>
    <TD  width="2%" align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD  width="1%" align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD width="10%" align=right valign="bottom" bgColor=#e6efff>62,694 </TD>
    <TD  width="2%" align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
  </TR>
  <TR>
    <TD width="5%" >&nbsp;</TD>
    <TD valign="bottom">&nbsp; </TD>
    <TD  width="1%" valign="bottom">&nbsp;</TD>
    <TD width="10%" valign="bottom">&nbsp; </TD>
    <TD  width="2%" valign="bottom">&nbsp;</TD>
    <TD  width="1%" valign="bottom">&nbsp;</TD>
    <TD width="10%" valign="bottom">&nbsp; </TD>
    <TD  width="2%" valign="bottom">&nbsp;</TD>
    <TD  width="1%" valign="bottom">&nbsp;</TD>
    <TD width="10%" valign="bottom">&nbsp; </TD>
    <TD  width="2%" valign="bottom">&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD width="5%" >&nbsp;</TD>
    <TD align=left valign="bottom" bgColor=#e6efff>Earnings (loss) per share, expressed in
      U.S. dollars </TD>
    <TD  width="1%" align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD width="10%" align=left valign="bottom" bgColor=#e6efff>&nbsp; </TD>
    <TD  width="2%" align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD  width="1%" align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD width="10%" align=left valign="bottom" bgColor=#e6efff>&nbsp; </TD>
    <TD  width="2%" align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD  width="1%" align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD width="10%" align=left valign="bottom" bgColor=#e6efff>&nbsp; </TD>
    <TD  width="2%" align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD width="5%" >&nbsp;</TD>
    <TD align=left valign="bottom">Basic </TD>
    <TD  width="1%" align=left valign="bottom">&nbsp;</TD>
    <TD width="10%" align=right valign="bottom">4.42 </TD>
    <TD  width="2%" align=left valign="bottom">&nbsp;</TD>
    <TD  width="1%" align=left valign="bottom">&nbsp;</TD>
    <TD width="10%" align=right valign="bottom">(0.70</TD>
    <TD  width="2%" align=left valign="bottom">) </TD>
    <TD  width="1%" align=left valign="bottom">&nbsp;</TD>
    <TD width="10%" align=right valign="bottom">(0.47</TD>
    <TD  width="2%" align=left valign="bottom">) </TD>
  </TR>
  <TR vAlign=top>
    <TD width="5%" >&nbsp;</TD>
    <TD align=left valign="bottom" bgColor=#e6efff>Diluted </TD>
    <TD  width="1%" align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD width="10%" align=right valign="bottom" bgColor=#e6efff>4.40 </TD>
    <TD  width="2%" align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD  width="1%" align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD width="10%" align=right valign="bottom" bgColor=#e6efff>(0.70</TD>
    <TD  width="2%" align=left valign="bottom" bgColor=#e6efff>) </TD>
    <TD  width="1%" align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD width="10%" align=right valign="bottom" bgColor=#e6efff>(0.47</TD>
    <TD  width="2%" align=left valign="bottom" bgColor=#e6efff>)</TD>
  </TR></TABLE>
<P align=right>35</P>
<HR style="PAGE-BREAK-AFTER: always" align=center color=black SIZE=5
width="100%" noShade>
<!--$$/page=--><A name=page_43></A><BR>
<TABLE
style="BORDER-COLOR: black; BORDER-COLLAPSE: collapse; FONT-SIZE: 10pt; "
border=0 cellSpacing=0 cellPadding=0 width="100%">

  <TR vAlign=top>
    <TD align=left><B>Silver Standard Resources Inc.</B> </TD></TR>
  <TR vAlign=top>
    <TD align=left>Notes to Consolidated Financial Statements </TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>December 31, 2010,
      2009 and 2008 </TD></TR>
  <TR vAlign=top>
    <TD align=left>(tabular amounts expressed in thousands of United States
      dollars unless otherwise stated) </TD></TR></TABLE><BR>
<TABLE
style="BORDER-COLOR: black; BORDER-COLLAPSE: collapse; FONT-SIZE: 10pt; "
border=0 cellSpacing=0 cellPadding=0 width="100%">

  <TR vAlign=top>
    <TD align=left ><B>21</B> </TD>
    <TD width="95%" align=left><B>MATERIAL DIFFERENCES BETWEEN CANADIAN AND
      UNITED</B> <B>STATES</B> <B>GENERALLY ACCEPTED ACCOUNTING PRINCIPLES
      (GAAP) (Cont&#146;d)</B> </TD></TR></TABLE>
<P style="MARGIN-LEFT: 5%" align=justify><B>Consolidated summarized statements
of cash flows:</B></P>
<TABLE
style="BORDER-COLOR: black; BORDER-COLLAPSE: collapse; FONT-SIZE: 10pt; "
border=0 cellSpacing=0 cellPadding=0 width="100%">

  <TR vAlign=top>
    <TD width="5%"  >&nbsp;</TD>
    <TD align=left valign="bottom">&nbsp; </TD>
    <TD  width="1%" align=left valign="bottom">&nbsp;</TD>
    <TD width="10%" align=right valign="bottom" nowrap><B>2010</B> </TD>
    <TD  width="2%" align=left valign="bottom">&nbsp;</TD>
    <TD  width="1%" align=left valign="bottom">&nbsp;</TD>
    <TD width="10%" align=right valign="bottom" nowrap><B>2009</B> </TD>
    <TD  width="2%" align=left valign="bottom">&nbsp;</TD>
    <TD  width="1%" align=left valign="bottom">&nbsp;</TD>
    <TD width="10%" align=right valign="bottom" nowrap><B>2008</B> </TD>
    <TD  width="2%" align=left valign="bottom">&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD width="5%" >&nbsp;</TD>
    <TD align=left valign="bottom">&nbsp; </TD>
    <TD  width="1%"
    align=left valign="bottom" style="BORDER-BOTTOM: #000000 1px solid"><B></B></TD>
    <TD width="10%"
      align=right valign="bottom" style="BORDER-BOTTOM: #000000 1px solid"><STRONG>$</STRONG>&nbsp;</TD>
    <TD  width="2%"
    align=left valign="bottom" style="BORDER-BOTTOM: #000000 1px solid">&nbsp;</TD>
    <TD  width="1%"
    align=left valign="bottom" style="BORDER-BOTTOM: #000000 1px solid"></TD>
    <TD width="10%"
      align=right valign="bottom" style="BORDER-BOTTOM: #000000 1px solid"><STRONG>$</STRONG>&nbsp;</TD>
    <TD  width="2%"
    align=left valign="bottom" style="BORDER-BOTTOM: #000000 1px solid">&nbsp;</TD>
    <TD  width="1%"
    align=left valign="bottom" style="BORDER-BOTTOM: #000000 1px solid"><B></B></TD>
    <TD width="10%"
      align=right valign="bottom" style="BORDER-BOTTOM: #000000 1px solid"><STRONG>$</STRONG>&nbsp;</TD>
    <TD  width="2%"
    align=left valign="bottom" style="BORDER-BOTTOM: #000000 1px solid">&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD width="5%" >&nbsp;</TD>
    <TD align=left valign="bottom" bgColor=#e6efff><B>Cash flows from operating activities</B>    </TD>
    <TD  width="1%" align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD width="10%" align=left valign="bottom" bgColor=#e6efff>&nbsp; </TD>
    <TD  width="2%" align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD  width="1%" align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD width="10%" align=left valign="bottom" bgColor=#e6efff>&nbsp; </TD>
    <TD  width="2%" align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD  width="1%" align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD width="10%" align=left valign="bottom" bgColor=#e6efff>&nbsp; </TD>
    <TD  width="2%" align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD width="5%" >&nbsp;</TD>
    <TD align=left valign="bottom">Pursuant to Canadian GAAP </TD>
    <TD  width="1%" align=left valign="bottom">&nbsp;</TD>
    <TD width="10%" align=right valign="bottom">(11,110</TD>
    <TD  width="2%" align=left valign="bottom">) </TD>
    <TD  width="1%" align=left valign="bottom">&nbsp;</TD>
    <TD width="10%" align=right valign="bottom">(39,943</TD>
    <TD  width="2%" align=left valign="bottom">) </TD>
    <TD  width="1%" align=left valign="bottom">&nbsp;</TD>
    <TD width="10%" align=right valign="bottom">(19,093</TD>
    <TD  width="2%" align=left valign="bottom">) </TD>
  </TR>
  <TR vAlign=top>
    <TD width="5%" >&nbsp;</TD>
    <TD align=left valign="bottom" bgColor=#e6efff>Mineral property costs (a)i) </TD>
    <TD  width="1%" align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD width="10%" align=right valign="bottom" bgColor=#e6efff>(52,912</TD>
    <TD  width="2%" align=left valign="bottom" bgColor=#e6efff>) </TD>
    <TD  width="1%" align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD width="10%" align=right valign="bottom" bgColor=#e6efff>(25,157</TD>
    <TD  width="2%" align=left valign="bottom" bgColor=#e6efff>) </TD>
    <TD  width="1%" align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD width="10%" align=right valign="bottom" bgColor=#e6efff>(37,763</TD>
    <TD  width="2%" align=left valign="bottom" bgColor=#e6efff>) </TD>
  </TR>
  <TR vAlign=top>
    <TD width="5%" >&nbsp;</TD>
    <TD align=left valign="bottom">Financing fees on convertible notes (a)vi) </TD>
    <TD  width="1%"
    align=left valign="bottom" style="BORDER-BOTTOM: #000000 1px solid">&nbsp;</TD>
    <TD width="10%" align=right valign="bottom" style="BORDER-BOTTOM: #000000 1px solid">- </TD>
    <TD  width="2%"
    align=left valign="bottom" style="BORDER-BOTTOM: #000000 1px solid">&nbsp;</TD>
    <TD  width="1%"
    align=left valign="bottom" style="BORDER-BOTTOM: #000000 1px solid">&nbsp;</TD>
    <TD width="10%" align=right valign="bottom" style="BORDER-BOTTOM: #000000 1px solid">- </TD>
    <TD  width="2%"
    align=left valign="bottom" style="BORDER-BOTTOM: #000000 1px solid">&nbsp;</TD>
    <TD  width="1%"
    align=left valign="bottom" style="BORDER-BOTTOM: #000000 1px solid">&nbsp;</TD>
    <TD width="10%" align=right valign="bottom" style="BORDER-BOTTOM: #000000 1px solid">3,600    </TD>
    <TD  width="2%"
    align=left valign="bottom" style="BORDER-BOTTOM: #000000 1px solid">&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD width="5%" >&nbsp;</TD>
    <TD align=left valign="bottom" bgColor=#e6efff>Pursuant to U.S. GAAP </TD>
    <TD
    width="1%" align=left valign="bottom" bgColor=#e6efff style="BORDER-BOTTOM: #000000 1px solid">&nbsp;</TD>
    <TD width="10%"
    align=right valign="bottom" bgColor=#e6efff style="BORDER-BOTTOM: #000000 1px solid">(64,022</TD>
    <TD
    width="2%" align=left valign="bottom" bgColor=#e6efff style="BORDER-BOTTOM: #000000 1px solid">) </TD>
    <TD
    width="1%" align=left valign="bottom" bgColor=#e6efff style="BORDER-BOTTOM: #000000 1px solid">&nbsp;</TD>
    <TD width="10%"
    align=right valign="bottom" bgColor=#e6efff style="BORDER-BOTTOM: #000000 1px solid">(65,100</TD>
    <TD
    width="2%" align=left valign="bottom" bgColor=#e6efff style="BORDER-BOTTOM: #000000 1px solid">) </TD>
    <TD
    width="1%" align=left valign="bottom" bgColor=#e6efff style="BORDER-BOTTOM: #000000 1px solid">&nbsp;</TD>
    <TD width="10%"
    align=right valign="bottom" bgColor=#e6efff style="BORDER-BOTTOM: #000000 1px solid">(53,256</TD>
    <TD
    width="2%" align=left valign="bottom" bgColor=#e6efff style="BORDER-BOTTOM: #000000 1px solid">) </TD>
  </TR>
  <TR>
    <TD width="5%" >&nbsp;</TD>
    <TD valign="bottom">&nbsp; </TD>
    <TD  width="1%" valign="bottom">&nbsp;</TD>
    <TD width="10%" valign="bottom">&nbsp; </TD>
    <TD  width="2%" valign="bottom">&nbsp;</TD>
    <TD  width="1%" valign="bottom">&nbsp;</TD>
    <TD width="10%" valign="bottom">&nbsp; </TD>
    <TD  width="2%" valign="bottom">&nbsp;</TD>
    <TD  width="1%" valign="bottom">&nbsp;</TD>
    <TD width="10%" valign="bottom">&nbsp; </TD>
    <TD  width="2%" valign="bottom">&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD width="5%" >&nbsp;</TD>
    <TD align=left valign="bottom" bgColor=#e6efff><B>Cash flows from financing activities</B>    </TD>
    <TD  width="1%" align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD width="10%" align=left valign="bottom" bgColor=#e6efff>&nbsp; </TD>
    <TD  width="2%" align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD  width="1%" align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD width="10%" align=left valign="bottom" bgColor=#e6efff>&nbsp; </TD>
    <TD  width="2%" align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD  width="1%" align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD width="10%" align=left valign="bottom" bgColor=#e6efff>&nbsp; </TD>
    <TD  width="2%" align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD width="5%" >&nbsp;</TD>
    <TD align=left valign="bottom">Pursuant to Canadian GAAP </TD>
    <TD  width="1%" align=left valign="bottom">&nbsp;</TD>
    <TD width="10%" align=right valign="bottom">124,076 </TD>
    <TD  width="2%" align=left valign="bottom">&nbsp;</TD>
    <TD  width="1%" align=left valign="bottom">&nbsp;</TD>
    <TD width="10%" align=right valign="bottom">146,413 </TD>
    <TD  width="2%" align=left valign="bottom">&nbsp;</TD>
    <TD  width="1%" align=left valign="bottom">&nbsp;</TD>
    <TD width="10%" align=right valign="bottom">138,719 </TD>
    <TD  width="2%" align=left valign="bottom">&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD width="5%" >&nbsp;</TD>
    <TD align=left valign="bottom" bgColor=#e6efff>Financing fees on convertible notes (a)vi)    </TD>
    <TD
    width="1%" align=left valign="bottom" bgColor=#e6efff style="BORDER-BOTTOM: #000000 1px solid">&nbsp;</TD>
    <TD width="10%"
    align=right valign="bottom" bgColor=#e6efff style="BORDER-BOTTOM: #000000 1px solid">- </TD>
    <TD
    width="2%" align=left valign="bottom" bgColor=#e6efff style="BORDER-BOTTOM: #000000 1px solid">&nbsp;</TD>
    <TD
    width="1%" align=left valign="bottom" bgColor=#e6efff style="BORDER-BOTTOM: #000000 1px solid">&nbsp;</TD>
    <TD width="10%"
    align=right valign="bottom" bgColor=#e6efff style="BORDER-BOTTOM: #000000 1px solid">- </TD>
    <TD
    width="2%" align=left valign="bottom" bgColor=#e6efff style="BORDER-BOTTOM: #000000 1px solid">&nbsp;</TD>
    <TD
    width="1%" align=left valign="bottom" bgColor=#e6efff style="BORDER-BOTTOM: #000000 1px solid">&nbsp;</TD>
    <TD width="10%"
    align=right valign="bottom" bgColor=#e6efff style="BORDER-BOTTOM: #000000 1px solid">(3,600</TD>
    <TD
    width="2%" align=left valign="bottom" bgColor=#e6efff style="BORDER-BOTTOM: #000000 1px solid">) </TD>
  </TR>
  <TR vAlign=top>
    <TD width="5%" >&nbsp;</TD>
    <TD align=left valign="bottom">Pursuant to U.S. GAAP </TD>
    <TD  width="1%"
    align=left valign="bottom" style="BORDER-BOTTOM: #000000 2px solid">&nbsp;</TD>
    <TD width="10%"
      align=right valign="bottom" style="BORDER-BOTTOM: #000000 2px solid">124,076 </TD>
    <TD  width="2%"
    align=left valign="bottom" style="BORDER-BOTTOM: #000000 2px solid">&nbsp;</TD>
    <TD  width="1%"
    align=left valign="bottom" style="BORDER-BOTTOM: #000000 2px solid">&nbsp;</TD>
    <TD width="10%"
      align=right valign="bottom" style="BORDER-BOTTOM: #000000 2px solid">146,413 </TD>
    <TD  width="2%"
    align=left valign="bottom" style="BORDER-BOTTOM: #000000 2px solid">&nbsp;</TD>
    <TD  width="1%"
    align=left valign="bottom" style="BORDER-BOTTOM: #000000 2px solid">&nbsp;</TD>
    <TD width="10%"
      align=right valign="bottom" style="BORDER-BOTTOM: #000000 2px solid">135,119 </TD>
    <TD  width="2%"
    align=left valign="bottom" style="BORDER-BOTTOM: #000000 2px solid">&nbsp;</TD>
  </TR>
  <TR>
    <TD width="5%" >&nbsp;</TD>
    <TD valign="bottom" bgColor=#e6efff>&nbsp; </TD>
    <TD  width="1%" valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD width="10%" valign="bottom" bgColor=#e6efff>&nbsp; </TD>
    <TD  width="2%" valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD  width="1%" valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD width="10%" valign="bottom" bgColor=#e6efff>&nbsp; </TD>
    <TD  width="2%" valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD  width="1%" valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD width="10%" valign="bottom" bgColor=#e6efff>&nbsp; </TD>
    <TD  width="2%" valign="bottom" bgColor=#e6efff>&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD width="5%" >&nbsp;</TD>
    <TD align=left valign="bottom"><B>Cash flows from investing activities</B> </TD>
    <TD  width="1%" align=left valign="bottom">&nbsp;</TD>
    <TD width="10%" align=left valign="bottom">&nbsp; </TD>
    <TD  width="2%" align=left valign="bottom">&nbsp;</TD>
    <TD  width="1%" align=left valign="bottom">&nbsp;</TD>
    <TD width="10%" align=left valign="bottom">&nbsp; </TD>
    <TD  width="2%" align=left valign="bottom">&nbsp;</TD>
    <TD  width="1%" align=left valign="bottom">&nbsp;</TD>
    <TD width="10%" align=left valign="bottom">&nbsp; </TD>
    <TD  width="2%" align=left valign="bottom">&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD width="5%" >&nbsp;</TD>
    <TD align=left valign="bottom" bgColor=#e6efff>Pursuant to Canadian GAAP </TD>
    <TD  width="1%" align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD width="10%" align=right valign="bottom" bgColor=#e6efff>92,686 </TD>
    <TD  width="2%" align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD  width="1%" align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD width="10%" align=right valign="bottom" bgColor=#e6efff>(151,824</TD>
    <TD  width="2%" align=left valign="bottom" bgColor=#e6efff>) </TD>
    <TD  width="1%" align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD width="10%" align=right valign="bottom" bgColor=#e6efff>(129,213</TD>
    <TD  width="2%" align=left valign="bottom" bgColor=#e6efff>) </TD>
  </TR>
  <TR vAlign=top>
    <TD width="5%" >&nbsp;</TD>
    <TD align=left valign="bottom">Mineral property costs (a)i) </TD>
    <TD  width="1%"
    align=left valign="bottom" style="BORDER-BOTTOM: #000000 1px solid">&nbsp;</TD>
    <TD width="10%"
      align=right valign="bottom" style="BORDER-BOTTOM: #000000 1px solid">52,912 </TD>
    <TD  width="2%"
    align=left valign="bottom" style="BORDER-BOTTOM: #000000 1px solid">&nbsp;</TD>
    <TD  width="1%"
    align=left valign="bottom" style="BORDER-BOTTOM: #000000 1px solid">&nbsp;</TD>
    <TD width="10%"
      align=right valign="bottom" style="BORDER-BOTTOM: #000000 1px solid">25,157 </TD>
    <TD  width="2%"
    align=left valign="bottom" style="BORDER-BOTTOM: #000000 1px solid">&nbsp;</TD>
    <TD  width="1%"
    align=left valign="bottom" style="BORDER-BOTTOM: #000000 1px solid">&nbsp;</TD>
    <TD width="10%"
      align=right valign="bottom" style="BORDER-BOTTOM: #000000 1px solid">37,763 </TD>
    <TD  width="2%"
    align=left valign="bottom" style="BORDER-BOTTOM: #000000 1px solid">&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD width="5%" >&nbsp;</TD>
    <TD align=left valign="bottom" bgColor=#e6efff>Pursuant to U.S. GAAP </TD>
    <TD
    width="1%" align=left valign="bottom" bgColor=#e6efff style="BORDER-BOTTOM: #000000 2px solid">&nbsp;</TD>
    <TD width="10%"
    align=right valign="bottom" bgColor=#e6efff style="BORDER-BOTTOM: #000000 2px solid">145,598 </TD>
    <TD
    width="2%" align=left valign="bottom" bgColor=#e6efff style="BORDER-BOTTOM: #000000 2px solid">&nbsp;</TD>
    <TD
    width="1%" align=left valign="bottom" bgColor=#e6efff style="BORDER-BOTTOM: #000000 2px solid">&nbsp;</TD>
    <TD width="10%"
    align=right valign="bottom" bgColor=#e6efff style="BORDER-BOTTOM: #000000 2px solid">(126,667</TD>
    <TD
    width="2%" align=left valign="bottom" bgColor=#e6efff style="BORDER-BOTTOM: #000000 2px solid">) </TD>
    <TD
    width="1%" align=left valign="bottom" bgColor=#e6efff style="BORDER-BOTTOM: #000000 2px solid">&nbsp;</TD>
    <TD width="10%"
    align=right valign="bottom" bgColor=#e6efff style="BORDER-BOTTOM: #000000 2px solid">(91,450</TD>
    <TD
    width="2%" align=left valign="bottom" bgColor=#e6efff style="BORDER-BOTTOM: #000000 2px solid">) </TD>
  </TR></TABLE><BR>
<TABLE
style="BORDER-COLOR: black; BORDER-COLLAPSE: collapse; FONT-SIZE: 10pt; "
border=0 cellSpacing=0 cellPadding=0 width="100%" BCLLIST>

  <TR>
    <TD width="5%"  >&nbsp;</TD>
    <TD vAlign=top width="5%">a) </TD>
    <TD colSpan=2>
      <P align=justify>We prepare our consolidated financial statements in
      accordance with accounting principles generally accepted in Canada
      (&#147;Canadian GAAP&#148;), 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 (&#147;SEC&#148;) (collectively &#147;U.S. GAAP&#148;). The major
      differences between Canadian and U.S. GAAP and their effect on the
      consolidated financial statements are summarized below:</P></TD></TR>
  <TR>
    <TD width="5%" >&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
  <TR>
    <TD width="5%" >&nbsp;</TD>
    <TD width="5%"></TD>
    <TD vAlign=top width="5%">i) </TD>
    <TD>
      <P align=justify>Under Canadian GAAP, the costs of acquiring mineral
      properties and related development expenditures are deferred. Exploration
      expenditures are deferred if they are considered to meet the definition of
      an asset.</P></TD></TR>
  <TR>
    <TD width="5%" >&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
  <TR>
    <TD width="5%" >&nbsp;</TD>
    <TD width="5%"></TD>
    <TD width="5%"></TD>
    <TD>
      <P align=justify>For U.S. GAAP purposes, all mineral property costs
      incurred during the exploration stage are expensed as incurred. 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&#148; (Codified within ASC 930), are viewed as a tangible asset and
      capitalized.</P></TD></TR>
  <TR>
    <TD width="5%" >&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
  <TR>
    <TD width="5%" >&nbsp;</TD>
    <TD width="5%"></TD>
    <TD width="5%"></TD>
    <TD>
      <P align=justify>When proven and probable reserves have been determined
      for a property and a final feasibility study is prepared, any subsequent
      development costs incurred on the property such as those relating to
      constructing infrastructure necessary to extract the reserves and
      preparing the mine for production are capitalized. Any subsequent
      exploration expenditures associated with efforts to search for and
      establish mineral reserves beyond those already found, are expensed. Once
      in the production stage, all costs incurred to maintain the mine and the
      related equipment and facilities are expensed as
  incurred.</P></TD></TR></TABLE>
<P align=right>36</P>
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width="100%" noShade>
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<TABLE
style="BORDER-COLOR: black; BORDER-COLLAPSE: collapse; FONT-SIZE: 10pt; "
border=0 cellSpacing=0 cellPadding=0 width="100%">

  <TR vAlign=top>
    <TD align=left><B>Silver Standard Resources Inc.</B> </TD></TR>
  <TR vAlign=top>
    <TD align=left>Notes to Consolidated Financial Statements </TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>December 31, 2010,
      2009 and 2008 </TD></TR>
  <TR vAlign=top>
    <TD align=left>(tabular amounts expressed in thousands of United States
      dollars unless otherwise stated) </TD></TR></TABLE><BR>
<TABLE
style="BORDER-COLOR: black; BORDER-COLLAPSE: collapse; FONT-SIZE: 10pt; "
border=0 cellSpacing=0 cellPadding=0 width="100%">

  <TR vAlign=top>
    <TD align=left ><B>21</B> </TD>
    <TD width="95%" align=left><B>MATERIAL DIFFERENCES BETWEEN CANADIAN AND
      UNITED</B> <B>STATES</B> <B>GENERALLY ACCEPTED ACCOUNTING PRINCIPLES
      (GAAP) (Cont&#146;d)</B> </TD></TR></TABLE><BR>
<TABLE
style="BORDER-COLOR: black; BORDER-COLLAPSE: collapse; FONT-SIZE: 10pt; "
border=0 cellSpacing=0 cellPadding=0 width="100%" BCLLIST>

  <TR>
    <TD width="10%"  >&nbsp;</TD>
    <TD width="5%"></TD>
    <TD>
      <P align=justify>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, subsequent development costs have been
      deferred under U.S. GAAP.</P></TD></TR>
  <TR>
    <TD width="10%" >&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
  <TR>
    <TD width="10%" >&nbsp;</TD>
    <TD width="5%"></TD>
    <TD>
      <P align=justify>The commencement of production under Canadian GAAP is
      based on criteria pre-determined by management in regards to when the
      asset is considered to be available for use. The U.S. GAAP definition is
      not as broad, with production considered to be achieved with the
      extraction/production of saleable minerals from an ore body, regardless of
      the level of production. As a result of applying the U.S. GAAP definition,
      we have determined that production commenced for purposes of U.S. GAAP on
      November 1, 2009. Due to the timing of title transfer on shipments, there
      was no resulting GAAP difference related to revenues; however, additional
      operating costs of $5,142,000 have been recorded related to the month of
      November 2009.</P></TD></TR>
  <TR>
    <TD width="10%" >&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
  <TR>
    <TD width="10%" >&nbsp;</TD>
    <TD width="5%"></TD>
    <TD>
      <P align=justify>On July 17, 2008, we closed the sale of the Shafter
      project (note 10). 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.</P></TD></TR>
  <TR>
    <TD width="10%" >&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
  <TR>
    <TD width="10%" >&nbsp;</TD>
    <TD width="5%"></TD>
    <TD>
      <P align=justify>In February 2010 the Company completed the sale of the
      Silvertip property (note 10). For Canadian GAAP, the sale resulted in a
      gain of $13,073,000 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 $1,859,000, reflecting the lower
      carrying value of mineral property costs under U.S. GAAP.</P></TD></TR>
  <TR>
    <TD width="10%" >&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
  <TR>
    <TD width="10%" >&nbsp;</TD>
    <TD width="5%"></TD>
    <TD>
      <P align=justify>During December 2010 we sold the Brucejack and Snowfield
      properties to Pretium resources Inc. We recognised a gain on disposal
      under Canadian GAAP for $388,761,000 ($360,612,000 after tax), net of
      selling costs of $5,922,000. For U.S. GAAP, the gain on sale of mineral
      properties was increased by $42,581,000, reflecting the lower carrying
      value of mineral property costs under U.S. GAAP.</P></TD></TR>
  <TR>
    <TD width="10%" >&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
  <TR>
    <TD width="10%" >&nbsp;</TD>
    <TD width="5%"></TD>
    <TD>
      <P align=justify>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.</P></TD></TR>
  <TR>
    <TD width="10%" >&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
  <TR>
    <TD width="10%" >&nbsp;</TD>
    <TD vAlign=top width="5%">ii) </TD>
    <TD>
      <P align=justify>Under Canadian GAAP, effective September 30, 2008, the
      Company adopted the provisions of EIC- 172, &#147;Income Statement Presentation
      of a Tax Loss Carryforward Recognized Following an Unrealized Gain in
      Other Comprehensive Income&#148;, 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
      (loss). For U.S. GAAP purposes, other comprehensive income would increase
      and income tax recovery would decrease by $1,883,000 for the year ended
      December 31, 2010 and $1,034,000 for the year ended December 31, 2009 as
      compared to an increase of other comprehensive loss and a decrease of
      income tax expense of $3,393,000 for the year ended December 31,
    2008.</P></TD></TR></TABLE>
<P align=right>37</P>
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width="100%" noShade>
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<TABLE
style="BORDER-COLOR: black; BORDER-COLLAPSE: collapse; FONT-SIZE: 10pt; "
border=0 cellSpacing=0 cellPadding=0 width="100%">

  <TR vAlign=top>
    <TD align=left><B>Silver Standard Resources Inc.</B> </TD></TR>
  <TR vAlign=top>
    <TD align=left>Notes to Consolidated Financial Statements </TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>December 31, 2010,
      2009 and 2008 </TD></TR>
  <TR vAlign=top>
    <TD align=left>(tabular amounts expressed in thousands of United States
      dollars unless otherwise stated) </TD></TR></TABLE><BR>
<TABLE
style="BORDER-COLOR: black; BORDER-COLLAPSE: collapse; FONT-SIZE: 10pt; "
border=0 cellSpacing=0 cellPadding=0 width="100%">

  <TR vAlign=top>
    <TD align=left ><B>21</B> </TD>
    <TD width="95%" align=left><B>MATERIAL DIFFERENCES BETWEEN CANADIAN AND
      UNITED</B> <B>STATES</B> <B>GENERALLY ACCEPTED ACCOUNTING PRINCIPLES
      (GAAP) (Cont&#146;d)</B> </TD></TR></TABLE><BR>
<TABLE
style="BORDER-COLOR: black; BORDER-COLLAPSE: collapse; FONT-SIZE: 10pt; "
border=0 cellSpacing=0 cellPadding=0 width="100%" BCLLIST>

  <TR>
    <TD width="10%"  >&nbsp;</TD>
    <TD vAlign=top width="5%">iii) </TD>
    <TD>
      <P align=justify>Under Canadian GAAP, before the introduction of CICA 1581
      and 1582<I>, </I>&#147;Business Combinations&#148;, 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, the
      fair value of shares issued is based on the market price surrounding the
      date the business combination agreement is agreed to and
  announced.</P></TD></TR>
  <TR>
    <TD width="10%" >&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
  <TR>
    <TD width="10%" >&nbsp;</TD>
    <TD vAlign=top width="5%">iv) </TD>
    <TD>
      <P align=justify>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&#146; equity.</P></TD></TR>
  <TR>
    <TD width="10%" >&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
  <TR>
    <TD width="10%" >&nbsp;</TD>
    <TD vAlign=top width="5%">v) </TD>
    <TD>
      <P align=justify>For U.S. GAAP purposes, we previously accounted for
      employee stock-based compensation arrangements using the intrinsic value
      method prescribed in Accounting Principles Board &#147;APB&#148;) Opinion No. 25,
      &#147;Accounting for Stock Issued to Employees&#148; 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.</P></TD></TR>
  <TR>
    <TD width="10%" >&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
  <TR>
    <TD width="10%" >&nbsp;</TD>
    <TD width="5%"></TD>
    <TD>
      <P align=justify>For Canadian GAAP purposes, we adopted, as of January 1,
      2004, the CICA&#146;s amendments to Section 3870, &#147;Stock-Based Compensation and
      other Stock-Based Payments&#148;, which required the fair value method to be
      applied to employee stock-based compensation.</P></TD></TR>
  <TR>
    <TD width="10%" >&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
  <TR>
    <TD width="10%" >&nbsp;</TD>
    <TD width="5%"></TD>
    <TD>
      <P align=justify>Effective January 1, 2006, we adopted Statement of
      Financial Accounting Standard (&#147;SFAS&#148;) No. 123R, &#147;Share Based Payment&#148;,
      (&#147;SFAS 123R&#148;, 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 &#150; 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 &#147;Accounting
      for Stock-Based Compensation&#148;. 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 between Canadian and U.S.
  GAAP.</P></TD></TR></TABLE>
<P align=right>38</P>
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width="100%" noShade>
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<TABLE
style="BORDER-COLOR: black; BORDER-COLLAPSE: collapse; FONT-SIZE: 10pt; "
border=0 cellSpacing=0 cellPadding=0 width="100%">

  <TR vAlign=top>
    <TD align=left><B>Silver Standard Resources Inc.</B> </TD></TR>
  <TR vAlign=top>
    <TD align=left>Notes to Consolidated Financial Statements </TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>December 31, 2010,
      2009 and 2008 </TD></TR>
  <TR vAlign=top>
    <TD align=left>(tabular amounts expressed in thousands of United States
      dollars unless otherwise stated) </TD></TR></TABLE><BR>
<TABLE
style="BORDER-COLOR: black; BORDER-COLLAPSE: collapse; FONT-SIZE: 10pt; "
border=0 cellSpacing=0 cellPadding=0 width="100%">

  <TR vAlign=top>
    <TD align=left ><B>21</B> </TD>
    <TD width="96%" align=left><B>MATERIAL DIFFERENCES BETWEEN CANADIAN AND
      UNITED</B> <B>STATES</B> <B>GENERALLY ACCEPTED ACCOUNTING PRINCIPLES
      (GAAP) (Cont&#146;d)</B> </TD></TR></TABLE><BR>
<TABLE
style="BORDER-COLOR: black; BORDER-COLLAPSE: collapse; FONT-SIZE: 10pt; "
border=0 cellSpacing=0 cellPadding=0 width="100%" BCLLIST>

  <TR>
    <TD width="10%"  >&nbsp;</TD>
    <TD vAlign=top width="5%">vi) </TD>
    <TD>
      <P align=justify>The adoption of FASB Staff Position Accounting Principles
      Board 14-1 (&#147;FSP APB 14-1&#148;, Codified within ASC 470 and ASC 825) on
      January 1, 2009 resulted in the elimination of the Canadian and U.S. GAAP
      difference on all convertible debt balances with the exception of
      financing costs, which are expensed under Canadian GAAP and capitalized
      and amortized in accordance with U.S. GAAP. In addition, under U.S. GAAP,
      related financing costs are classified as financing activities.
      Accordingly, financing fees charged to net loss would decrease by
      $3,600,000 for the year ended December 31, 2008 and amortization of
      financing fees would increase by $126,000 for the year ended December 31,
      2009, and $754,000 for the year ended December 31, 2010, representing
      amortization recorded to the income statement since the commencement of
      production on November 1, 2009.</P></TD></TR>
  <TR>
    <TD width="10%" >&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
  <TR>
    <TD width="10%" >&nbsp;</TD>
    <TD width="5%"></TD>
    <TD>
      <P align=justify>The results of adopting this standard have been
      retrospectively applied in these consolidated financial
  statements.</P></TD></TR></TABLE><BR>
<TABLE
style="BORDER-COLOR: black; BORDER-COLLAPSE: collapse; FONT-SIZE: 10pt; "
border=0 cellSpacing=0 cellPadding=0 width="100%" BCLLIST>

  <TR>
    <TD width="5%"  >&nbsp;</TD>
    <TD vAlign=top width="5%">b) </TD>
    <TD>
      <P align=justify>Other disclosures</P></TD></TR>
  <TR>
    <TD width="5%" >&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
  <TR>
    <TD width="5%" >&nbsp;</TD>
    <TD width="5%"></TD>
    <TD>
      <P align=justify>The following additional information would be presented
      if these consolidated financial statements were presented in accordance
      with U.S. GAAP:</P></TD></TR>
  <TR>
    <TD width="5%" >&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
  <TR>
    <TD width="5%" >&nbsp;</TD>
    <TD width="5%"></TD>
    <TD>
      <P
      align=justify>i)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
      Accounts receivable</P></TD></TR></TABLE><BR>
<DIV align=center>
<TABLE
style="BORDER-COLOR: black; BORDER-COLLAPSE: collapse; FONT-SIZE: 10pt; "
border=0 cellSpacing=0 cellPadding=0 width="70%">

  <TR vAlign=top>
    <TD align=left>&nbsp; </TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="12%" align=right nowrap><B>2010</B> </TD>
    <TD  width="2%" align=left>&nbsp;</TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="12%" align=right nowrap><B>2009</B> </TD>
    <TD  width="2%" align=left>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left>&nbsp; </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="1%"
    align=left><B></B></TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="12%"
      align=right><STRONG>$</STRONG>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="2%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="1%"
    align=left><B></B></TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="12%"
      align=right><STRONG>$</STRONG>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="2%"
    align=left>&nbsp;</TD></TR>
  <TR>
    <TD>&nbsp; </TD>
    <TD  width="1%">&nbsp;</TD>
    <TD width="12%">&nbsp; </TD>
    <TD  width="2%">&nbsp;</TD>
    <TD  width="1%">&nbsp;</TD>
    <TD width="12%">&nbsp; </TD>
    <TD  width="2%">&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD bgColor=#e6efff align=left>Value added tax recoverable </TD>
    <TD bgColor=#e6efff  width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="12%" align=right>901 </TD>
    <TD bgColor=#e6efff  width="2%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff  width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="12%" align=right>19 </TD>
    <TD bgColor=#e6efff  width="2%" align=left>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left>Other receivables </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="1%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="12%"
      align=right>29,422 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="2%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="1%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="12%" align=right>6,219
    </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="2%"
    align=left>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD bgColor=#e6efff align=left>&nbsp; </TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" bgColor=#e6efff
    width="1%" align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" bgColor=#e6efff width="12%"
    align=right>30,323 </TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" bgColor=#e6efff
    width="2%" align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" bgColor=#e6efff
    width="1%" align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" bgColor=#e6efff width="12%"
    align=right>6,238 </TD>
  <TD style="BORDER-BOTTOM: #000000 2px solid" bgColor=#e6efff
    width="2%" align=left>&nbsp;</TD></TR></TABLE></DIV><BR>
<TABLE
style="BORDER-COLOR: black; BORDER-COLLAPSE: collapse; FONT-SIZE: 10pt; "
border=0 cellSpacing=0 cellPadding=0 width="100%" BCLLIST>

  <TR>
    <TD width="10%"  >&nbsp;</TD>
    <TD vAlign=top width="5%">ii) </TD>
    <TD>
      <P align=justify>Income Tax Uncertainty</P></TD></TR>
  <TR>
    <TD width="10%" >&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
  <TR>
    <TD width="10%" >&nbsp;</TD>
    <TD width="5%"></TD>
    <TD>
      <P align=justify>The Company and its subsidiaries file federal income tax
      returns in Canada, the US, and several other foreign jurisdictions; the
      Company&#146;s U.S. subsidiaries also file U.S. state tax returns where
      required by law. With few exceptions, the Company and its U.S.
      subsidiaries are no longer subject to Canadian federal, U.S. federal,
      state and local examinations by the tax authorities for years prior to
      2005. The Company&#146;s subsidiaries in other foreign jurisdictions, with few
      exceptions, are no longer subject to examination by the respective
      authorities for years prior to 2003.</P></TD></TR></TABLE>
<P align=right>39</P>
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<TABLE
style="BORDER-COLOR: black; BORDER-COLLAPSE: collapse; FONT-SIZE: 10pt; "
border=0 cellSpacing=0 cellPadding=0 width="100%">

  <TR vAlign=top>
    <TD align=left><B>Silver Standard Resources Inc.</B> </TD></TR>
  <TR vAlign=top>
    <TD align=left>Notes to Consolidated Financial Statements </TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>December 31, 2010,
      2009 and 2008 </TD></TR>
  <TR vAlign=top>
    <TD align=left>(tabular amounts expressed in thousands of United States
      dollars unless otherwise stated) </TD></TR></TABLE><BR>
<TABLE
style="BORDER-COLOR: black; BORDER-COLLAPSE: collapse; FONT-SIZE: 10pt; "
border=0 cellSpacing=0 cellPadding=0 width="100%">

  <TR vAlign=top>
    <TD align=left><B>21</B> </TD>
    <TD width="95%" align=left><B>MATERIAL DIFFERENCES BETWEEN CANADIAN AND
      UNITED</B> <B>STATES</B> <B>GENERALLY ACCEPTED ACCOUNTING PRINCIPLES
      (GAAP) (Cont&#146;d)</B> </TD></TR></TABLE>
<P style="MARGIN-LEFT: 15%" align=justify>A reconciliation of the beginning and
ending amount of unrecognized tax benefits is as follows: </P>
<TABLE
style="BORDER-COLOR: black; BORDER-COLLAPSE: collapse; FONT-SIZE: 10pt; "
border=0 cellSpacing=0 cellPadding=0 width="100%">

  <TR vAlign=top>
    <TD width="15%"  >&nbsp;</TD>
    <TD align=left valign="bottom">&nbsp; </TD>
    <TD  width="1%" align=left valign="bottom">&nbsp;</TD>
    <TD width="12%" align=right valign="bottom"><B>2010</B> </TD>
    <TD  width="2%" align=left valign="bottom">&nbsp;</TD>
    <TD  width="1%" align=left valign="bottom">&nbsp;</TD>
    <TD width="12%" align=right valign="bottom"><B>2009</B> </TD>
    <TD  width="2%" align=left valign="bottom">&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD width="15%" >&nbsp;</TD>
    <TD align=left valign="bottom">&nbsp; </TD>
    <TD  width="1%"
    align=left valign="bottom" style="BORDER-BOTTOM: #000000 1px solid"><B></B></TD>
    <TD width="12%"
      align=right valign="bottom" style="BORDER-BOTTOM: #000000 1px solid"><STRONG>$</STRONG>&nbsp;</TD>
    <TD  width="2%"
    align=left valign="bottom" style="BORDER-BOTTOM: #000000 1px solid">&nbsp;</TD>
    <TD  width="1%"
    align=left valign="bottom" style="BORDER-BOTTOM: #000000 1px solid"><B></B></TD>
    <TD width="12%"
      align=right valign="bottom" style="BORDER-BOTTOM: #000000 1px solid"><STRONG>$</STRONG>&nbsp;</TD>
    <TD  width="2%"
    align=left valign="bottom" style="BORDER-BOTTOM: #000000 1px solid">&nbsp;</TD>
  </TR>
  <TR>
    <TD width="15%" >&nbsp;</TD>
    <TD valign="bottom">&nbsp; </TD>
    <TD  width="1%" valign="bottom">&nbsp;</TD>
    <TD width="12%" valign="bottom">&nbsp; </TD>
    <TD  width="2%" valign="bottom">&nbsp;</TD>
    <TD  width="1%" valign="bottom">&nbsp;</TD>
    <TD width="12%" valign="bottom">&nbsp; </TD>
    <TD  width="2%" valign="bottom">&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD width="15%" >&nbsp;</TD>
    <TD align=left valign="bottom" bgColor=#e6efff>Opening balance </TD>
    <TD  width="1%" align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD width="12%" align=right valign="bottom" bgColor=#e6efff><B>3,150</B> </TD>
    <TD  width="2%" align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD  width="1%" align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD width="12%" align=right valign="bottom" bgColor=#e6efff><B>347</B> </TD>
    <TD  width="2%" align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD width="15%" >&nbsp;</TD>
    <TD align=left valign="bottom">Increases based on tax positions related to the current
      year </TD>
    <TD  width="1%"
    align=left valign="bottom" style="BORDER-BOTTOM: #000000 1px solid">&nbsp;</TD>
    <TD width="12%"
      align=right valign="bottom" style="BORDER-BOTTOM: #000000 1px solid"><B>(177</B></TD>
    <TD  width="2%"
    align=left valign="bottom" style="BORDER-BOTTOM: #000000 1px solid"><B>)</B> </TD>
    <TD  width="1%"
    align=left valign="bottom" style="BORDER-BOTTOM: #000000 1px solid">&nbsp;</TD>
    <TD width="12%"
      align=right valign="bottom" style="BORDER-BOTTOM: #000000 1px solid"><B>2,803</B> </TD>
    <TD  width="2%"
    align=left valign="bottom" style="BORDER-BOTTOM: #000000 1px solid">&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD width="15%" >&nbsp;</TD>
    <TD align=left valign="bottom" bgColor=#e6efff>&nbsp; </TD>
    <TD
    width="1%" align=left valign="bottom" bgColor=#e6efff style="BORDER-BOTTOM: #000000 2px solid">&nbsp;</TD>
    <TD width="12%"
    align=right valign="bottom" bgColor=#e6efff style="BORDER-BOTTOM: #000000 2px solid"><B>2,973</B> </TD>
    <TD
    width="2%" align=left valign="bottom" bgColor=#e6efff style="BORDER-BOTTOM: #000000 2px solid">&nbsp;</TD>
    <TD
    width="1%" align=left valign="bottom" bgColor=#e6efff style="BORDER-BOTTOM: #000000 2px solid">&nbsp;</TD>
    <TD width="12%"
    align=right valign="bottom" bgColor=#e6efff style="BORDER-BOTTOM: #000000 2px solid"><B>3,150</B> </TD>
    <TD
    width="2%" align=left valign="bottom" bgColor=#e6efff style="BORDER-BOTTOM: #000000 2px solid">&nbsp;</TD>
  </TR></TABLE>
<P style="MARGIN-LEFT: 15%" align=justify>If recognized, none of the
unrecognized tax benefits would affect the effective tax rate due to the
existence of valuation allowances against the related deferred tax assets.</P>
<P style="MARGIN-LEFT: 15%" align=justify>The Company has not recognized
interest accrued related to unrecognized tax benefits due to the forecasted loss
carry forward amounts in relevant jurisdictions.</P>
<P align=right>40</P>
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<DOCUMENT>
<TYPE>EX-99.2
<SEQUENCE>3
<FILENAME>exhibit99-2.htm
<DESCRIPTION>MANAGEMENT DISCUSSION AND ANALYSIS
<TEXT>
<HTML>
<HEAD>
   <TITLE>Silver Standard Resources Inc.: Exhibit 99.2 - Filed by newsfilecorp.com</TITLE>
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<P align=center><B>SILVER STANDARD RESOURCES INC. <BR>MANAGEMENT DISCUSSION AND
ANALYSIS</B></P>
<P align=justify><B>Management Discussion and Analysis of Financial Position and
Operating Results</B></P>
<P align=justify>We are a mining company with a portfolio of silver-dominant
projects predominantly in the Americas. Our strategic focus is on optimizing
production of silver from our Pirquitas mine and on advancing our other
principal projects, including San Luis, Pitarrilla, Diablillos and San Agustin.
We have a large in-ground silver position and look to exploit this for the value
of our shareholders. Certain of our projects also contain significant gold
resources. We will grow our business through the development of our core
projects and monetize others to support our funding requirements. Our common
stock is quoted on the Nasdaq Global Market under the trading symbol SSRI and
listed on the Toronto Stock Exchange under the symbol SSO.</P>
<P align=justify>This management discussion and analysis (MD&amp;A) of the
financial position and operating results of the company for the years ended
December 31, 2010, 2009 and 2008 is prepared as of February 28, 2011 and should
be read in conjunction with the audited consolidated financial statements and
the related notes thereto, which have been prepared in accordance with Canadian
generally accepted accounting principles (GAAP). All dollar amounts referred to
in this discussion and analysis are expressed in U.S. dollars except where
indicated otherwise. We direct investors to the section &#147;Risks and
Uncertainties&#148; and to page 41 for a cautionary statement on forward-looking
information and non-GAAP financial performance measures included within this
MD&amp;A. Additional information relating to us, including our annual
information form, is available free of charge on the System for Electronic
Document Analysis and Retrieval (SEDAR) website at <U><FONT
color=#0000ff>www.sedar.com</FONT></U>, and on the EDGAR section of the United
States Securities and Exchange Commission&#146;s (SEC) website at <U><FONT
color=#0000ff>www.sec.gov</FONT></U>. </P>
<P align=justify><B>2010 HIGHLIGHTS AND SIGNIFICANT EVENTS</B></P>
<UL style="TEXT-ALIGN: justify">
  <LI>
  <P>On December 21, 2010 we completed the sale of our 100% interest in the
  Snowfield and Brucejack properties located in British Columbia, Canada to
  Pretium Resources Inc. (&#147;Pretium&#148;) for total consideration of $442.3 million
  (C$450.0 million). Pretium became a publically traded company on the Toronto
  Stock Exchange following the closing of its intial public offering (&#147;IPO&#148;) on
  December 21, 2010. Under the terms of the transaction we received a total of
  32,537,833 common shares of Pretium, representing 41.27% of its issued and
  outstanding common shares with a fair value of $191.9 million (C$195.2
  million) based on the IPO price of C$6.00 per share. We also received cash
  proceeds of $211.3 million (C$215.0 million) (before underwriters&#146; fees of
  $12.4 million (C$12.6 million)) and a non-interest bearing promissory note in
  the principal amount of $39.1 million (C$39.8 million), which was
  automatically convertible into common shares of Pretium at C$6.00 per share 40
  days after closing to the extent not repaid by Pretium. Our sale of the
  Snowfield and Brucejack properties resulted in a gain on disposal of $388.8
  million, and $360.6 million after tax.<br>
  <BR>On January 6, 2011 the underwriters
  exercised in part the over-allotment option granted to them in connection with
  the IPO. Pursuant to the terms of the promissory note, we received $16.7
  million (C$17.0 million), after underwriters&#146; fees, from partial repayment of
  the note. On January 31, 2011 the balance of the promissory note was
  automatically converted into 3,625,500 common shares of Pretium in accordance
  with its terms. Following this conversion our ownership interest in Pretium
  increased to 42.31%. </P>
  <LI>
  <P>On February 28, 2011 we reached an agreement to acquire the remaining
  interest in the San Luis project from our joint venture partner Esperanza
  Resources Corp. (&#147;Esperanza&#148;). Upon completion of the acquisition we will own
  100% of the project. Under the terms of the agreement we will pay C$17 million
  in cash, transfer to Esperanza the 6.459 million shares of Esperanza that we own, and grant to Esperanza a 1% net smelter return royalty. </P>
  </LI></UL>
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<TABLE
style="BORDER-COLOR: black; BORDER-COLLAPSE: collapse; FONT-SIZE: 10pt; "
border=0 cellSpacing=0 cellPadding=0 width="100%" BCLLIST>

  <TR>
    <TD width="5%"  >&nbsp;</TD>
    <TD vAlign=top width="5%">
      <LI></LI></TD>
    <TD colSpan=2>
      <P align=justify>Net earnings of $346.2 in 2010 million compared to a net
      loss of $13.2 million in 2009 or $4.44 per share in 2010 compared to a
      loss of $0.19 per share in 2009.</P></TD></TR>
  <TR>
    <TD  width="5%">&nbsp;</TD>
    <TD vAlign=top  width="5%">&nbsp;</TD>
    <TD  colSpan=2>&nbsp;</TD></TR>
  <TR>
    <TD width="5%" >&nbsp;</TD>
    <TD vAlign=top width="5%">
      <LI></LI></TD>
    <TD colSpan=2>
      <P align=justify>The Pirquitas mine generated earnings from operations of
      $10.0 million comprising:</P></TD></TR>
  <TR>
    <TD width="5%" >&nbsp;</TD>
    <TD width="5%"></TD>
    <TD vAlign=top width="5%">
      <LI></LI></TD>
    <TD>
      <P align=justify>Revenue of $112.3 million;</P></TD></TR>
  <TR>
    <TD width="5%" >&nbsp;</TD>
    <TD width="5%"></TD>
    <TD vAlign=top width="5%">
      <LI></LI></TD>
    <TD>
      <P align=justify>Cost of sales of $76.0 million; and</P></TD></TR>
  <TR>
    <TD width="5%" >&nbsp;</TD>
    <TD width="5%"></TD>
    <TD vAlign=top width="5%">
      <LI></LI></TD>
    <TD>
      <P align=justify>Non-cash depletion, depreciation and amortization of
      $26.3 million.</P></TD></TR>
  <TR>
    <TD  width="5%">&nbsp;</TD>
    <TD  width="5%">&nbsp;</TD>
    <TD vAlign=top  width="5%">&nbsp;</TD>
    <TD >&nbsp;</TD></TR>
  <TR>
    <TD width="5%" >&nbsp;</TD>
    <TD vAlign=top width="5%">
      <LI></LI></TD>
    <TD colSpan=2>
      <P align=justify>At Pirquitas we milled 1,255,261 tonnes of ore with
      silver grades of 233 grams/tonne at recoveries of 65.2%, producing a total
      of 6,302,140 ounces of silver. We sold 5,936,657 ounces at a weighted
      average silver price of $20.92 per ounce for total revenues of $112.3
      million.</P></TD></TR>
  <TR>
    <TD  width="5%">&nbsp;</TD>
    <TD vAlign=top  width="5%">&nbsp;</TD>
    <TD  colSpan=2>&nbsp;</TD></TR>
  <TR>
    <TD width="5%" >&nbsp;</TD>
    <TD vAlign=top width="5%">
      <LI></LI></TD>
    <TD colSpan=2>
      <P align=justify>Pirquitas mined a continuous feed of sulphide ores from
      September until the end of the year, with silver and zinc recoveries
      achieving designed rates. The commissioning of the gravity pre-
      concentration circuit during the year helped to confirm the processing
      concept for silver recovery. During the year Pirquitas produced 4.6
      million lbs of zinc with a sales value of approximately $3.5 million,
      which will be delivered during the first quarter of 2011.</P></TD></TR>
  <TR>
    <TD  width="5%">&nbsp;</TD>
    <TD vAlign=top  width="5%">&nbsp;</TD>
    <TD  colSpan=2>&nbsp;</TD></TR>
  <TR>
    <TD width="5%" >&nbsp;</TD>
    <TD vAlign=top width="5%">
      <LI></LI></TD>
    <TD colSpan=2>
      <P align=justify>We incurred total exploration expenditures of $54.8
      million to advance our other key properties during the year. Significant
      expenditures included:</P></TD></TR>
  <TR>
    <TD width="5%" >&nbsp;</TD>
    <TD width="5%"></TD>
    <TD vAlign=top width="5%">
      <LI></LI></TD>
    <TD>
      <P align=justify>$17.7 million at the Pitarrilla project in
  Mexico;</P></TD></TR>
  <TR>
    <TD width="5%" >&nbsp;</TD>
    <TD width="5%"></TD>
    <TD vAlign=top width="5%">
      <LI></LI></TD>
    <TD>
      <P align=justify>$6.4 million at the San Luis project in Peru;</P></TD></TR>
  <TR>
    <TD width="5%" >&nbsp;</TD>
    <TD width="5%"></TD>
    <TD vAlign=top width="5%">
      <LI></LI></TD>
    <TD>
      <P align=justify>$2.6 million at the Berenguela project in Peru;</P></TD></TR>
  <TR>
    <TD width="5%" >&nbsp;</TD>
    <TD width="5%"></TD>
    <TD vAlign=top width="5%">
      <LI></LI></TD>
    <TD>
      <P align=justify>$2.2 million at the Diablillos project in
    Argentina;</P></TD></TR>
  <TR>
    <TD width="5%" >&nbsp;</TD>
    <TD width="5%"></TD>
    <TD vAlign=top width="5%">
      <LI></LI></TD>
    <TD>
      <P align=justify>$1.3 million at the Nazas project in Mexico;</P></TD></TR>
  <TR>
    <TD width="5%" >&nbsp;</TD>
    <TD width="5%"></TD>
    <TD vAlign=top width="5%">
      <LI></LI></TD>
    <TD>
      <P align=justify>$1.1 million at the San Agustin project in Mexico;
    and</P></TD></TR>
  <TR>
    <TD width="5%" >&nbsp;</TD>
    <TD width="5%"></TD>
    <TD vAlign=top width="5%">
      <LI></LI></TD>
    <TD>
      <P align=justify>$21.5 million at the Snowfield and Brucejack projects in
      Canada, which were subsequently sold in December 2010 to
Pretium.</P></TD></TR>
  <TR>
    <TD  width="5%">&nbsp;</TD>
    <TD  width="5%">&nbsp;</TD>
    <TD vAlign=top  width="5%">&nbsp;</TD>
    <TD >&nbsp;</TD></TR>
  <TR>
    <TD width="5%" >&nbsp;</TD>
    <TD vAlign=top width="5%">
      <LI></LI></TD>
    <TD colSpan=2>
      <P align=justify>In February we sold the Silvertip project for $15.0
      million for an after tax gain of $13.1 million.</P></TD></TR>
  <TR>
    <TD width="5%" >&nbsp;</TD>
    <TD vAlign=top width="5%">
      <LI></LI></TD>
    <TD colSpan=2>
      <P align=justify>In February we closed a public share offering of
      6,729,000 common shares at a price of $17.00 per share, for aggregate
      gross proceeds of $114.4 million. After deducting underwriting fees, net
      of tax credits, and expenses, net proceeds were approximately $109.6
      million.</P></TD></TR>
  <TR>
    <TD width="5%" >&nbsp;</TD>
    <TD vAlign=top width="5%">
      <LI></LI></TD>
    <TD colSpan=2>
      <P align=justify>Effective August 6, 2010, John Smith was appointed
      President and Chief Executive Officer.</P></TD></TR>
  <TR>
    <TD width="5%" >&nbsp;</TD>
    <TD vAlign=top width="5%">
      <LI></LI></TD>
    <TD colSpan=2>
      <P align=justify>During 2010 we spent $12.6 million in capital
      expenditures at the Pirquitas Mine.</P></TD></TR></TABLE>
<P align=right>2</P>
<HR style="PAGE-BREAK-AFTER: always" align=center color=black SIZE=5
width="100%" noShade>
<!--$$/page=--><A name=page_3></A>
<P align=justify><B>NON-GAAP FINANCIAL AND OPERATING PERFORMANCE
MEASURES<BR></B><B>(thousands of dollars, except production data and per share
amounts)</B></P>
<P align=justify>We use the non-GAAP measures of direct mining cost per ounce,
cash operating cost per ounce of silver, total cash cost per ounce of silver and
total production cost per ounce of silver to manage and evaluate operating
performance. Although these measures are widely reported in the silver mining
industry as benchmarks for performance, they do not have a standardized meaning
and are non-GAAP measures. We believe that these measures, in addition to GAAP
measures, will be used by investors to evaluate our performance and future
ability to generate cash flows.</P>
<P align=justify>The following tables set forth selected financial and operating
data from our consolidated financial statements and should be read in
conjunction with those statements:</P>
<DIV>
<TABLE
style="BORDER-COLOR: black; BORDER-COLLAPSE: collapse; FONT-SIZE: 10pt; "
border=0 cellSpacing=0 cellPadding=0 width="80%">

  <TR vAlign=top>
    <TD align=left valign="bottom">&nbsp; </TD>
    <TD  width="1%"
    align=left valign="bottom" style="BORDER-BOTTOM: #000000 1px solid">&nbsp;</TD>
    <TD width="12%"
      align=center valign="bottom" style="BORDER-BOTTOM: #000000 1px solid"><B>2010</B> </TD>
    <TD  width="2%"
    align=center valign="bottom" style="BORDER-BOTTOM: #000000 1px solid">&nbsp;</TD>
    <TD  width="1%"
    align=center valign="bottom" style="BORDER-BOTTOM: #000000 1px solid">&nbsp;</TD>
    <TD width="12%"
      align=center valign="bottom" style="BORDER-BOTTOM: #000000 1px solid"><B>2009</B> </TD>
    <TD  width="2%"
    align=center valign="bottom" style="BORDER-BOTTOM: #000000 1px solid">&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left valign="bottom">&nbsp; </TD>
    <TD  width="1%" align=left valign="bottom">&nbsp;</TD>
    <TD width="12%" align=center valign="bottom">&nbsp; </TD>
    <TD  width="2%" align=center valign="bottom">&nbsp;</TD>
    <TD  width="1%" align=center valign="bottom">&nbsp;</TD>
    <TD width="12%" align=center valign="bottom" nowrap><B>December </B><SUP>(1)</SUP> </TD>
    <TD  width="2%" align=center valign="bottom"></TD>
  </TR>
  <TR>
    <TD valign="bottom">&nbsp; </TD>
    <TD  width="1%" valign="bottom">&nbsp;</TD>
    <TD width="12%" align=center valign="bottom">&nbsp; </TD>
    <TD  width="2%" align=center valign="bottom">&nbsp;</TD>
    <TD  width="1%" align=center valign="bottom">&nbsp;</TD>
    <TD width="12%" align=center valign="bottom">&nbsp; </TD>
    <TD  width="2%" align=center valign="bottom">&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left valign="bottom" bgColor=#e6efff><U>Production Data </U><SUP>(2)</SUP> </TD>
    <TD  width="1%" align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD width="12%" align=left valign="bottom" bgColor=#e6efff>&nbsp; </TD>
    <TD  width="2%" align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD  width="1%" align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD width="12%" align=left valign="bottom" bgColor=#e6efff>&nbsp; </TD>
    <TD  width="2%" align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left valign="bottom">Tonnes milled </TD>
    <TD  width="1%" align=left valign="bottom">&nbsp;</TD>
    <TD width="12%" align=right valign="bottom">1,255,261 </TD>
    <TD  width="2%" align=left valign="bottom">&nbsp;</TD>
    <TD  width="1%" align=left valign="bottom">&nbsp;</TD>
    <TD width="12%" align=right valign="bottom">110,767 </TD>
    <TD  width="2%" align=left valign="bottom">&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left valign="bottom" bgColor=#e6efff>Silver head grades (grams/tonne) </TD>
    <TD  width="1%" align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD width="12%" align=right valign="bottom" bgColor=#e6efff>233 </TD>
    <TD  width="2%" align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD  width="1%" align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD width="12%" align=right valign="bottom" bgColor=#e6efff>262 </TD>
    <TD  width="2%" align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left valign="bottom">Silver recoveries </TD>
    <TD  width="1%" align=left valign="bottom">&nbsp;</TD>
    <TD width="12%" align=right valign="bottom">65.2% </TD>
    <TD  width="2%" align=left valign="bottom">&nbsp;</TD>
    <TD  width="1%" align=left valign="bottom">&nbsp;</TD>
    <TD width="12%" align=right valign="bottom">58.4% </TD>
    <TD  width="2%" align=left valign="bottom">&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left valign="bottom" bgColor=#e6efff>Silver produced (ounces) </TD>
    <TD  width="1%" align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD width="12%" align=right valign="bottom" bgColor=#e6efff>6,302,140 </TD>
    <TD  width="2%" align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD  width="1%" align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD width="12%" align=right valign="bottom" bgColor=#e6efff>545,600 </TD>
    <TD  width="2%" align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left valign="bottom">Silver sold (ounces) </TD>
    <TD  width="1%" align=left valign="bottom">&nbsp;</TD>
    <TD width="12%" align=right valign="bottom">5,936,657 </TD>
    <TD  width="2%" align=left valign="bottom">&nbsp;</TD>
    <TD  width="1%" align=left valign="bottom">&nbsp;</TD>
    <TD width="12%" align=right valign="bottom">460,100 </TD>
    <TD  width="2%" align=left valign="bottom">&nbsp;</TD>
  </TR>
  <TR>
    <TD valign="bottom" bgColor=#e6efff>&nbsp; </TD>
    <TD  width="1%" valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD width="12%" valign="bottom" bgColor=#e6efff>&nbsp; </TD>
    <TD  width="2%" valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD  width="1%" valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD width="12%" valign="bottom" bgColor=#e6efff>&nbsp; </TD>
    <TD  width="2%" valign="bottom" bgColor=#e6efff>&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left valign="bottom">Revenues <SUP>(3) </SUP>($000s) </TD>
    <TD  width="1%" align=left valign="bottom">$</TD>
    <TD width="12%" align=right valign="bottom">&nbsp;112,256 </TD>
    <TD  width="2%" align=left valign="bottom">&nbsp;</TD>
    <TD  width="1%" align=left valign="bottom">$</TD>
    <TD width="12%" align=right valign="bottom">&nbsp;5,442 </TD>
    <TD  width="2%" align=left valign="bottom">&nbsp;</TD>
  </TR>
  <TR>
    <TD valign="bottom" bgColor=#e6efff>&nbsp; </TD>
    <TD  width="1%" valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD width="12%" valign="bottom" bgColor=#e6efff>&nbsp; </TD>
    <TD  width="2%" valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD  width="1%" valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD width="12%" valign="bottom" bgColor=#e6efff>&nbsp; </TD>
    <TD  width="2%" valign="bottom" bgColor=#e6efff>&nbsp;</TD>
  </TR>
  <TR>
    <TD valign="bottom">&nbsp; </TD>
    <TD  width="1%" valign="bottom">&nbsp;</TD>
    <TD width="12%" valign="bottom">&nbsp; </TD>
    <TD  width="2%" valign="bottom">&nbsp;</TD>
    <TD  width="1%" valign="bottom">&nbsp;</TD>
    <TD width="12%" valign="bottom">&nbsp; </TD>
    <TD  width="2%" valign="bottom">&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left valign="bottom" bgColor=#e6efff>Average realized silver price (per ounce)    </TD>
    <TD  width="1%" align=left valign="bottom" bgColor=#e6efff>$</TD>
    <TD width="12%" align=right valign="bottom" bgColor=#e6efff>&nbsp;20.92 </TD>
    <TD  width="2%" align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD  width="1%" align=left valign="bottom" bgColor=#e6efff>$</TD>
    <TD width="12%" align=right valign="bottom" bgColor=#e6efff>&nbsp;17.49 </TD>
    <TD  width="2%" align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
  </TR>
  <TR>
    <TD valign="bottom">&nbsp; </TD>
    <TD  width="1%" valign="bottom">&nbsp;</TD>
    <TD width="12%" valign="bottom">&nbsp; </TD>
    <TD  width="2%" valign="bottom">&nbsp;</TD>
    <TD  width="1%" valign="bottom">&nbsp;</TD>
    <TD width="12%" valign="bottom">&nbsp; </TD>
    <TD  width="2%" valign="bottom">&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left valign="bottom" bgColor=#e6efff>Average London spot silver price (per
      ounce) </TD>
    <TD  width="1%" align=left valign="bottom" bgColor=#e6efff>$</TD>
    <TD width="12%" align=right valign="bottom" bgColor=#e6efff>&nbsp;20.16 </TD>
    <TD  width="2%" align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD  width="1%" align=left valign="bottom" bgColor=#e6efff>$</TD>
    <TD width="12%" align=right valign="bottom" bgColor=#e6efff>&nbsp;17.67 </TD>
    <TD  width="2%" align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
  </TR>
  <TR>
    <TD valign="bottom">&nbsp; </TD>
    <TD  width="1%" valign="bottom">&nbsp;</TD>
    <TD width="12%" valign="bottom">&nbsp; </TD>
    <TD  width="2%" valign="bottom">&nbsp;</TD>
    <TD  width="1%" valign="bottom">&nbsp;</TD>
    <TD width="12%" valign="bottom">&nbsp; </TD>
    <TD  width="2%" valign="bottom">&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left valign="bottom" bgColor=#e6efff><U>Cash cost per ounce of silver
      </U><SUP>(4)</SUP> </TD>
    <TD  width="1%" align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD width="12%" align=left valign="bottom" bgColor=#e6efff>&nbsp; </TD>
    <TD  width="2%" align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD  width="1%" align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD width="12%" align=left valign="bottom" bgColor=#e6efff>&nbsp; </TD>
    <TD  width="2%" align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
  </TR>
  <TR>
    <TD valign="bottom">&nbsp; </TD>
    <TD  width="1%" valign="bottom">&nbsp;</TD>
    <TD width="12%" valign="bottom">&nbsp; </TD>
    <TD  width="2%" valign="bottom">&nbsp;</TD>
    <TD  width="1%" valign="bottom">&nbsp;</TD>
    <TD width="12%" valign="bottom">&nbsp; </TD>
    <TD  width="2%" valign="bottom">&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left valign="bottom" bgColor=#e6efff>&nbsp; &nbsp; &nbsp;Cash production cost</TD>
    <TD  width="1%" align=left valign="bottom" bgColor=#e6efff>$</TD>
    <TD width="12%" align=right valign="bottom" bgColor=#e6efff>&nbsp;12.16 </TD>
    <TD  width="2%" align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD  width="1%" align=left valign="bottom" bgColor=#e6efff>$</TD>
    <TD width="12%" align=right valign="bottom" bgColor=#e6efff>&nbsp;8.98 </TD>
    <TD  width="2%" align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left valign="bottom">&nbsp; &nbsp; &nbsp;Cash operating cost </TD>
    <TD  width="1%" align=left valign="bottom">$</TD>
    <TD width="12%" align=right valign="bottom">&nbsp;18.03 </TD>
    <TD  width="2%" align=left valign="bottom">&nbsp;</TD>
    <TD  width="1%" align=left valign="bottom">$</TD>
    <TD width="12%" align=right valign="bottom">&nbsp;16.57 </TD>
    <TD  width="2%" align=left valign="bottom">&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left valign="bottom" bgColor=#e6efff>&nbsp; &nbsp; &nbsp;Total production cost    </TD>
    <TD  width="1%" align=left valign="bottom" bgColor=#e6efff>$</TD>
    <TD width="12%" align=right valign="bottom" bgColor=#e6efff>&nbsp;22.32 </TD>
    <TD  width="2%" align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD  width="1%" align=left valign="bottom" bgColor=#e6efff>$</TD>
    <TD width="12%" align=right valign="bottom" bgColor=#e6efff>&nbsp;20.30 </TD>
    <TD  width="2%"
  align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
  </TR></TABLE></DIV><BR>
<TABLE
style="BORDER-COLOR: black; BORDER-COLLAPSE: collapse; FONT-SIZE: 10pt; "
border=0 cellSpacing=0 cellPadding=0 width="100%" BCLLIST>

  <TR>
    <TD vAlign=top width="5%">(1) </TD>
    <TD>
      <P align=justify>The Pirquitas mine commenced production in Argentina on
      December 1, 2009. As a result, 2009 was our first year of reported
      revenues and production data.</P></TD></TR>
  <TR>
    <TD vAlign=top width="5%">(2) </TD>
    <TD>
      <P align=justify>Since December 1, 2009, the tonnes milled were primarily
      oxide and sulphide ore until September 2010 after which tonnes milled were
      primarily sulphide ore.</P></TD></TR>
  <TR>
    <TD vAlign=top width="5%">(3) </TD>
    <TD>
      <P align=justify>Revenues are reported net of deductions, treatment and
      refining charges</P></TD></TR>
  <TR>
    <TD vAlign=top width="5%">(4) </TD>
    <TD>
      <P align=justify>The calculation of cash production cost, cash operating
      cost and total production cost per ounce of silver is net of by-product
      sales for the year ended December 31, 2010 of $204,000 (2009: $nil). See
      page 42 "Non-GAAP Financial Performance Measures"</P></TD></TR></TABLE>
<P align=right>3</P>
<HR style="PAGE-BREAK-AFTER: always" align=center color=black SIZE=5
width="100%" noShade>
<!--$$/page=--><A name=page_4></A><BR>
<DIV>
<TABLE
style="BORDER-COLOR: black; BORDER-COLLAPSE: collapse; FONT-SIZE: 10pt; "
border=0 cellSpacing=0 cellPadding=0 width="80%">

  <TR vAlign=top>
    <TD align=left valign="bottom">&nbsp; </TD>
    <TD width="1%" align=left valign="bottom">&nbsp;</TD>
    <TD width="10%" align=right valign="bottom"><B>2010</B> </TD>
    <TD width="2%" align=left valign="bottom">&nbsp;</TD>
    <TD width="1%" align=left valign="bottom">&nbsp;</TD>
    <TD width="10%" align=right valign="bottom"><B>2009</B> </TD>
    <TD width="2%" align=left valign="bottom">&nbsp;</TD>
    <TD width="1%" align=left valign="bottom">&nbsp;</TD>
    <TD width="10%" align=right valign="bottom"><B>2008</B> </TD>
    <TD width="2%" align=left valign="bottom">&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left valign="bottom"><U>Other financial information</U> </TD>
    <TD width="1%"
    align=left valign="bottom" style="BORDER-BOTTOM: #000000 1px solid"><B></B></TD>
    <TD width="10%"
      align=right valign="bottom" nowrap style="BORDER-BOTTOM: #000000 1px solid"><B>$(000</B></TD>
    <TD width="2%"
      align=left valign="bottom" style="BORDER-BOTTOM: #000000 1px solid"><B>)</B> </TD>
    <TD width="1%"
    align=left valign="bottom" style="BORDER-BOTTOM: #000000 1px solid"><B></B></TD>
    <TD width="10%"
      align=right valign="bottom" nowrap style="BORDER-BOTTOM: #000000 1px solid"><B>$(000</B></TD>
    <TD width="2%"
      align=left valign="bottom" style="BORDER-BOTTOM: #000000 1px solid"><B>)</B> </TD>
    <TD width="1%"
    align=left valign="bottom" style="BORDER-BOTTOM: #000000 1px solid"><B></B></TD>
    <TD width="10%"
      align=right valign="bottom" nowrap style="BORDER-BOTTOM: #000000 1px solid"><B>$(000</B></TD>
    <TD width="2%"
      align=left valign="bottom" style="BORDER-BOTTOM: #000000 1px solid"><B>)</B> </TD>
  </TR>
  <TR vAlign=top>
    <TD align=left valign="bottom" bgColor=#e6efff>Revenue </TD>
    <TD width="1%" align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD width="10%" align=right valign="bottom" bgColor=#e6efff>112,256 </TD>
    <TD width="2%" align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD width="1%" align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD width="10%" align=right valign="bottom" bgColor=#e6efff>5,442 </TD>
    <TD width="2%" align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD width="1%" align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD width="10%" align=right valign="bottom" bgColor=#e6efff>- </TD>
    <TD width="2%" align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left valign="bottom">Net earnings (loss) </TD>
    <TD width="1%" align=left valign="bottom">&nbsp;</TD>
    <TD width="10%" align=right valign="bottom">346,239 </TD>
    <TD width="2%" align=left valign="bottom">&nbsp;</TD>
    <TD width="1%" align=left valign="bottom">&nbsp;</TD>
    <TD width="10%" align=right valign="bottom">(13,193</TD>
    <TD width="2%" align=left valign="bottom">) </TD>
    <TD width="1%" align=left valign="bottom">&nbsp;</TD>
    <TD width="10%" align=right valign="bottom">- </TD>
    <TD width="2%" align=left valign="bottom">&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left valign="bottom" bgColor=#e6efff>Basic earnings (loss) per share </TD>
    <TD width="1%" align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD width="10%" align=right valign="bottom" bgColor=#e6efff>4.44 </TD>
    <TD width="2%" align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD width="1%" align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD width="10%" align=right valign="bottom" bgColor=#e6efff>(0.19</TD>
    <TD width="2%" align=left valign="bottom" bgColor=#e6efff>) </TD>
    <TD width="1%" align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD width="10%" align=right valign="bottom" bgColor=#e6efff>(0.09</TD>
    <TD width="2%" align=left valign="bottom" bgColor=#e6efff>) </TD>
  </TR>
  <TR vAlign=top>
    <TD align=left valign="bottom">Diluted earnings (loss) per share </TD>
    <TD width="1%" align=left valign="bottom">&nbsp;</TD>
    <TD width="10%" align=right valign="bottom">4.42 </TD>
    <TD width="2%" align=left valign="bottom">&nbsp;</TD>
    <TD width="1%" align=left valign="bottom">&nbsp;</TD>
    <TD width="10%" align=right valign="bottom">(0.19</TD>
    <TD width="2%" align=left valign="bottom">) </TD>
    <TD width="1%" align=left valign="bottom">&nbsp;</TD>
    <TD width="10%" align=right valign="bottom">(0.09</TD>
    <TD width="2%" align=left valign="bottom">) </TD>
  </TR>
  <TR>
    <TD valign="bottom" bgColor=#e6efff>&nbsp; </TD>
    <TD width="1%" valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD width="10%" valign="bottom" bgColor=#e6efff>&nbsp; </TD>
    <TD width="2%" valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD width="1%" valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD width="10%" valign="bottom" bgColor=#e6efff>&nbsp; </TD>
    <TD width="2%" valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD width="1%" valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD width="10%" valign="bottom" bgColor=#e6efff>&nbsp; </TD>
    <TD width="2%" valign="bottom" bgColor=#e6efff>&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left valign="bottom">Cash and cash equivalents </TD>
    <TD width="1%" align=left valign="bottom">&nbsp;</TD>
    <TD width="10%" align=right valign="bottom">232,311 </TD>
    <TD width="2%" align=left valign="bottom">&nbsp;</TD>
    <TD width="1%" align=left valign="bottom">&nbsp;</TD>
    <TD width="10%" align=right valign="bottom">26,659 </TD>
    <TD width="2%" align=left valign="bottom">&nbsp;</TD>
    <TD width="1%" align=left valign="bottom">&nbsp;</TD>
    <TD width="10%" align=right valign="bottom">72,013 </TD>
    <TD width="2%" align=left valign="bottom">&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left valign="bottom" bgColor=#e6efff>Total assets </TD>
    <TD width="1%" align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD width="10%" align=right valign="bottom" bgColor=#e6efff>1,262,017 </TD>
    <TD width="2%" align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD width="1%" align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD width="10%" align=right valign="bottom" bgColor=#e6efff>749,925 </TD>
    <TD width="2%" align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD width="1%" align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD width="10%" align=right valign="bottom" bgColor=#e6efff>567,905 </TD>
    <TD width="2%" align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left valign="bottom">Working capital </TD>
    <TD width="1%" align=left valign="bottom">&nbsp;</TD>
    <TD width="10%" align=right valign="bottom">303,844 </TD>
    <TD width="2%" align=left valign="bottom">&nbsp;</TD>
    <TD width="1%" align=left valign="bottom">&nbsp;</TD>
    <TD width="10%" align=right valign="bottom">24,515 </TD>
    <TD width="2%" align=left valign="bottom">&nbsp;</TD>
    <TD width="1%" align=left valign="bottom">&nbsp;</TD>
    <TD width="10%" align=right valign="bottom">41,486 </TD>
    <TD width="2%" align=left valign="bottom">&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left valign="bottom" bgColor=#e6efff>Long-term convertible notes </TD>
    <TD width="1%" align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD width="10%" align=right valign="bottom" bgColor=#e6efff>118,203 </TD>
    <TD width="2%" align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD width="1%" align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD width="10%" align=right valign="bottom" bgColor=#e6efff>110,739 </TD>
    <TD width="2%" align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD width="1%" align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD width="10%" align=right valign="bottom" bgColor=#e6efff>104,046 </TD>
    <TD width="2%" align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left valign="bottom">Cash dividends declared </TD>
    <TD width="1%" align=left valign="bottom">&nbsp;</TD>
    <TD width="10%" align=right valign="bottom">- </TD>
    <TD width="2%" align=left valign="bottom">&nbsp;</TD>
    <TD width="1%" align=left valign="bottom">&nbsp;</TD>
    <TD width="10%" align=right valign="bottom">- </TD>
    <TD width="2%" align=left valign="bottom">&nbsp;</TD>
    <TD width="1%" align=left valign="bottom">&nbsp;</TD>
    <TD width="10%" align=right valign="bottom">- </TD>
    <TD width="2%" align=left valign="bottom">&nbsp;</TD>
  </TR></TABLE></DIV>
<P align=justify>The following table provides a reconciliation to cost of sales,
as reported in our Consolidated Statement of Earnings (Loss):</P>
<DIV>
<TABLE
style="BORDER-COLOR: black; BORDER-COLLAPSE: collapse; FONT-SIZE: 10pt; "
border=0 cellSpacing=0 cellPadding=0 width="80%">

  <TR vAlign=top>
    <TD align=left valign="bottom">&nbsp; </TD>
    <TD  width="1%" align=left valign="bottom">&nbsp;</TD>
    <TD width="10%" align=right valign="bottom"><B>2010</B> </TD>
    <TD  width="2%" align=left valign="bottom">&nbsp;</TD>
    <TD  width="1%" align=left valign="bottom">&nbsp;</TD>
    <TD width="10%" align=left valign="bottom">&nbsp; </TD>
    <TD  width="2%" align=left valign="bottom">&nbsp;</TD>
    <TD  width="1%" align=left valign="bottom">&nbsp;</TD>
    <TD width="10%" align=right valign="bottom"><B>2009</B> </TD>
    <TD  width="2%" align=left valign="bottom">&nbsp;</TD>
    <TD  width="1%" align=left valign="bottom">&nbsp;</TD>
    <TD width="10%" align=left valign="bottom">&nbsp; </TD>
    <TD  width="2%" align=left valign="bottom">&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left valign="bottom">&nbsp; </TD>
    <TD  width="1%"
    align=left valign="bottom" style="BORDER-BOTTOM: #000000 1px solid"><B></B></TD>
    <TD width="10%"
      align=right valign="bottom" nowrap style="BORDER-BOTTOM: #000000 1px solid"><B>$(000</B></TD>
    <TD  width="2%"
    align=left valign="bottom" style="BORDER-BOTTOM: #000000 1px solid"><B>)</B> </TD>
    <TD  width="1%"
    align=left valign="bottom" style="BORDER-BOTTOM: #000000 1px solid"><B></B></TD>
    <TD width="10%"
      align=right valign="bottom" nowrap style="BORDER-BOTTOM: #000000 1px solid"><B>$/oz</B> </TD>
    <TD  width="2%"
    align=left valign="bottom" style="BORDER-BOTTOM: #000000 1px solid">&nbsp;</TD>
    <TD  width="1%"
    align=left valign="bottom" style="BORDER-BOTTOM: #000000 1px solid"><B></B></TD>
    <TD width="10%"
      align=right valign="bottom" nowrap style="BORDER-BOTTOM: #000000 1px solid"><B>$(000</B></TD>
    <TD  width="2%"
    align=left valign="bottom" style="BORDER-BOTTOM: #000000 1px solid"><B>)</B> </TD>
    <TD  width="1%"
    align=left valign="bottom" style="BORDER-BOTTOM: #000000 1px solid"><B></B></TD>
    <TD width="10%"
      align=right valign="bottom" nowrap style="BORDER-BOTTOM: #000000 1px solid"><B>$/oz</B> </TD>
    <TD  width="2%"
    align=left valign="bottom" style="BORDER-BOTTOM: #000000 1px solid">&nbsp;</TD>
  </TR>
  <TR>
    <TD valign="bottom">&nbsp; </TD>
    <TD  width="1%" valign="bottom">&nbsp;</TD>
    <TD width="10%" valign="bottom">&nbsp; </TD>
    <TD  width="2%" valign="bottom">&nbsp;</TD>
    <TD  width="1%" valign="bottom">&nbsp;</TD>
    <TD width="10%" valign="bottom">&nbsp; </TD>
    <TD  width="2%" valign="bottom">&nbsp;</TD>
    <TD  width="1%" valign="bottom">&nbsp;</TD>
    <TD width="10%" valign="bottom">&nbsp; </TD>
    <TD  width="2%" valign="bottom">&nbsp;</TD>
    <TD  width="1%" valign="bottom">&nbsp;</TD>
    <TD width="10%" valign="bottom">&nbsp; </TD>
    <TD  width="2%" valign="bottom">&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left valign="bottom" bgColor=#e6efff>Cost of Sales </TD>
    <TD  width="1%" align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD width="10%" align=right valign="bottom" bgColor=#e6efff>75,971 </TD>
    <TD  width="2%" align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD  width="1%" align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD width="10%" align=left valign="bottom" bgColor=#e6efff>&nbsp; </TD>
    <TD  width="2%" align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD  width="1%" align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD width="10%" align=right valign="bottom" bgColor=#e6efff>5,926 </TD>
    <TD  width="2%" align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD  width="1%" align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD width="10%" align=left valign="bottom" bgColor=#e6efff>&nbsp; </TD>
    <TD  width="2%" align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left valign="bottom">Inventory adjustment </TD>
    <TD  width="1%"
    align=left valign="bottom" style="BORDER-BOTTOM: #000000 1px solid">&nbsp;</TD>
    <TD width="10%" align=right valign="bottom" style="BORDER-BOTTOM: #000000 1px solid">879    </TD>
    <TD  width="2%"
    align=left valign="bottom" style="BORDER-BOTTOM: #000000 1px solid">&nbsp;</TD>
    <TD  width="1%"
    align=left valign="bottom" style="BORDER-BOTTOM: #000000 1px solid">&nbsp;</TD>
    <TD width="10%" align=left valign="bottom" style="BORDER-BOTTOM: #000000 1px solid">&nbsp;    </TD>
    <TD  width="2%"
    align=left valign="bottom" style="BORDER-BOTTOM: #000000 1px solid">&nbsp;</TD>
    <TD  width="1%"
    align=left valign="bottom" style="BORDER-BOTTOM: #000000 1px solid">&nbsp;</TD>
    <TD width="10%"
    align=right valign="bottom" style="BORDER-BOTTOM: #000000 1px solid">(1,022</TD>
    <TD  width="2%"
    align=left valign="bottom" style="BORDER-BOTTOM: #000000 1px solid">) </TD>
    <TD  width="1%"
    align=left valign="bottom" style="BORDER-BOTTOM: #000000 1px solid">&nbsp;</TD>
    <TD width="10%" align=left valign="bottom" style="BORDER-BOTTOM: #000000 1px solid">&nbsp;    </TD>
    <TD  width="2%"
    align=left valign="bottom" style="BORDER-BOTTOM: #000000 1px solid">&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left valign="bottom" bgColor=#e6efff>Direct production expenses </TD>
    <TD  width="1%" align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD width="10%" align=right valign="bottom" bgColor=#e6efff>76,850 </TD>
    <TD  width="2%" align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD  width="1%" align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD width="10%" align=right valign="bottom" bgColor=#e6efff>12.19 </TD>
    <TD  width="2%" align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD  width="1%" align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD width="10%" align=right valign="bottom" bgColor=#e6efff>4,904 </TD>
    <TD  width="2%" align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD  width="1%" align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD width="10%" align=right valign="bottom" bgColor=#e6efff>8.99 </TD>
    <TD  width="2%" align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left valign="bottom">By-product credits </TD>
    <TD  width="1%"
    align=left valign="bottom" style="BORDER-BOTTOM: #000000 1px solid">&nbsp;</TD>
    <TD width="10%"
    align=right valign="bottom" style="BORDER-BOTTOM: #000000 1px solid">(204</TD>
    <TD  width="2%"
    align=left valign="bottom" style="BORDER-BOTTOM: #000000 1px solid">) </TD>
    <TD  width="1%"
    align=left valign="bottom" style="BORDER-BOTTOM: #000000 1px solid">&nbsp;</TD>
    <TD width="10%"
    align=right valign="bottom" style="BORDER-BOTTOM: #000000 1px solid">(0.03</TD>
    <TD  width="2%"
    align=left valign="bottom" style="BORDER-BOTTOM: #000000 1px solid">) </TD>
    <TD  width="1%"
    align=left valign="bottom" style="BORDER-BOTTOM: #000000 1px solid">&nbsp;</TD>
    <TD width="10%" align=right valign="bottom" style="BORDER-BOTTOM: #000000 1px solid">(3</TD>
    <TD  width="2%"
    align=left valign="bottom" style="BORDER-BOTTOM: #000000 1px solid">) </TD>
    <TD  width="1%"
    align=left valign="bottom" style="BORDER-BOTTOM: #000000 1px solid">&nbsp;</TD>
    <TD width="10%"
    align=right valign="bottom" style="BORDER-BOTTOM: #000000 1px solid">(0.01</TD>
    <TD  width="2%"
    align=left valign="bottom" style="BORDER-BOTTOM: #000000 1px solid">) </TD>
  </TR>
  <TR vAlign=top>
    <TD align=left valign="bottom" bgColor=#e6efff>Cash production costs </TD>
    <TD
    width="1%" align=left valign="bottom" bgColor=#e6efff style="BORDER-BOTTOM: #000000 1px solid">&nbsp;</TD>
    <TD width="10%"
    align=right valign="bottom" bgColor=#e6efff style="BORDER-BOTTOM: #000000 1px solid">76,646 </TD>
    <TD
    width="2%" align=left valign="bottom" bgColor=#e6efff style="BORDER-BOTTOM: #000000 1px solid">&nbsp;</TD>
    <TD
    width="1%" align=left valign="bottom" bgColor=#e6efff style="BORDER-BOTTOM: #000000 1px solid">&nbsp;</TD>
    <TD width="10%"
    align=right valign="bottom" bgColor=#e6efff style="BORDER-BOTTOM: #000000 1px solid">12.16 </TD>
    <TD
    width="2%" align=left valign="bottom" bgColor=#e6efff style="BORDER-BOTTOM: #000000 1px solid">&nbsp;</TD>
    <TD
    width="1%" align=left valign="bottom" bgColor=#e6efff style="BORDER-BOTTOM: #000000 1px solid">&nbsp;</TD>
    <TD width="10%"
    align=right valign="bottom" bgColor=#e6efff style="BORDER-BOTTOM: #000000 1px solid">4,901 </TD>
    <TD
    width="2%" align=left valign="bottom" bgColor=#e6efff style="BORDER-BOTTOM: #000000 1px solid">&nbsp;</TD>
    <TD
    width="1%" align=left valign="bottom" bgColor=#e6efff style="BORDER-BOTTOM: #000000 1px solid">&nbsp;</TD>
    <TD width="10%"
    align=right valign="bottom" bgColor=#e6efff style="BORDER-BOTTOM: #000000 1px solid">8.98 </TD>
    <TD
    width="2%" align=left valign="bottom" bgColor=#e6efff style="BORDER-BOTTOM: #000000 1px solid">&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left valign="bottom">Third party smelting, refining and </TD>
    <TD  width="1%" align=left valign="bottom">&nbsp;</TD>
    <TD width="10%" align=left valign="bottom">&nbsp; </TD>
    <TD  width="2%" align=left valign="bottom">&nbsp;</TD>
    <TD  width="1%" align=left valign="bottom">&nbsp;</TD>
    <TD width="10%" align=left valign="bottom">&nbsp; </TD>
    <TD  width="2%" align=left valign="bottom">&nbsp;</TD>
    <TD  width="1%" align=left valign="bottom">&nbsp;</TD>
    <TD width="10%" align=left valign="bottom">&nbsp; </TD>
    <TD  width="2%" align=left valign="bottom">&nbsp;</TD>
    <TD  width="1%" align=left valign="bottom">&nbsp;</TD>
    <TD width="10%" align=left valign="bottom">&nbsp; </TD>
    <TD  width="2%" align=left valign="bottom">&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left valign="bottom" bgColor=#e6efff>transportation costs </TD>
    <TD  width="1%" align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD width="10%" align=right valign="bottom" bgColor=#e6efff>26,792 </TD>
    <TD  width="2%" align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD  width="1%" align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD width="10%" align=right valign="bottom" bgColor=#e6efff>4.25 </TD>
    <TD  width="2%" align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD  width="1%" align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD width="10%" align=right valign="bottom" bgColor=#e6efff>3,452 </TD>
    <TD  width="2%" align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD  width="1%" align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD width="10%" align=right valign="bottom" bgColor=#e6efff>6.33 </TD>
    <TD  width="2%" align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left valign="bottom">Royalties &amp; production taxes </TD>
    <TD  width="1%"
    align=left valign="bottom" style="BORDER-BOTTOM: #000000 1px solid">&nbsp;</TD>
    <TD width="10%"
      align=right valign="bottom" style="BORDER-BOTTOM: #000000 1px solid">10,192 </TD>
    <TD  width="2%"
    align=left valign="bottom" style="BORDER-BOTTOM: #000000 1px solid">&nbsp;</TD>
    <TD  width="1%"
    align=left valign="bottom" style="BORDER-BOTTOM: #000000 1px solid">&nbsp;</TD>
    <TD width="10%" align=right valign="bottom" style="BORDER-BOTTOM: #000000 1px solid">1.62    </TD>
    <TD  width="2%"
    align=left valign="bottom" style="BORDER-BOTTOM: #000000 1px solid">&nbsp;</TD>
    <TD  width="1%"
    align=left valign="bottom" style="BORDER-BOTTOM: #000000 1px solid">&nbsp;</TD>
    <TD width="10%" align=right valign="bottom" style="BORDER-BOTTOM: #000000 1px solid">685    </TD>
    <TD  width="2%"
    align=left valign="bottom" style="BORDER-BOTTOM: #000000 1px solid">&nbsp;</TD>
    <TD  width="1%"
    align=left valign="bottom" style="BORDER-BOTTOM: #000000 1px solid">&nbsp;</TD>
    <TD width="10%" align=right valign="bottom" style="BORDER-BOTTOM: #000000 1px solid">1.26    </TD>
    <TD  width="2%"
    align=left valign="bottom" style="BORDER-BOTTOM: #000000 1px solid">&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left valign="bottom" bgColor=#e6efff>Cash operating costs </TD>
    <TD
    width="1%" align=left valign="bottom" bgColor=#e6efff style="BORDER-BOTTOM: #000000 1px solid">&nbsp;</TD>
    <TD width="10%"
    align=right valign="bottom" bgColor=#e6efff style="BORDER-BOTTOM: #000000 1px solid">113,630 </TD>
    <TD
    width="2%" align=left valign="bottom" bgColor=#e6efff style="BORDER-BOTTOM: #000000 1px solid">&nbsp;</TD>
    <TD
    width="1%" align=left valign="bottom" bgColor=#e6efff style="BORDER-BOTTOM: #000000 1px solid">&nbsp;</TD>
    <TD width="10%"
    align=right valign="bottom" bgColor=#e6efff style="BORDER-BOTTOM: #000000 1px solid">18.03 </TD>
    <TD
    width="2%" align=left valign="bottom" bgColor=#e6efff style="BORDER-BOTTOM: #000000 1px solid">&nbsp;</TD>
    <TD
    width="1%" align=left valign="bottom" bgColor=#e6efff style="BORDER-BOTTOM: #000000 1px solid">&nbsp;</TD>
    <TD width="10%"
    align=right valign="bottom" bgColor=#e6efff style="BORDER-BOTTOM: #000000 1px solid">9,038 </TD>
    <TD
    width="2%" align=left valign="bottom" bgColor=#e6efff style="BORDER-BOTTOM: #000000 1px solid">&nbsp;</TD>
    <TD
    width="1%" align=left valign="bottom" bgColor=#e6efff style="BORDER-BOTTOM: #000000 1px solid">&nbsp;</TD>
    <TD width="10%"
    align=right valign="bottom" bgColor=#e6efff style="BORDER-BOTTOM: #000000 1px solid">16.57 </TD>
    <TD
    width="2%" align=left valign="bottom" bgColor=#e6efff style="BORDER-BOTTOM: #000000 1px solid">&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left valign="bottom">Depreciation per income statement </TD>
    <TD  width="1%" align=left valign="bottom">&nbsp;</TD>
    <TD width="10%" align=right valign="bottom">18,733 </TD>
    <TD  width="2%" align=left valign="bottom">&nbsp;</TD>
    <TD  width="1%" align=left valign="bottom">&nbsp;</TD>
    <TD width="10%" align=right valign="bottom">2.97 </TD>
    <TD  width="2%" align=left valign="bottom">&nbsp;</TD>
    <TD  width="1%" align=left valign="bottom">&nbsp;</TD>
    <TD width="10%" align=right valign="bottom">- </TD>
    <TD  width="2%" align=left valign="bottom">&nbsp;</TD>
    <TD  width="1%" align=left valign="bottom">&nbsp;</TD>
    <TD width="10%" align=right valign="bottom">- </TD>
    <TD  width="2%" align=left valign="bottom">&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left valign="bottom" bgColor=#e6efff>Depletion/amortization per income statement    </TD>
    <TD  width="1%" align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD width="10%" align=right valign="bottom" bgColor=#e6efff>7,594 </TD>
    <TD  width="2%" align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD  width="1%" align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD width="10%" align=right valign="bottom" bgColor=#e6efff>1.20 </TD>
    <TD  width="2%" align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD  width="1%" align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD width="10%" align=right valign="bottom" bgColor=#e6efff>2,039 </TD>
    <TD  width="2%" align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD  width="1%" align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD width="10%" align=right valign="bottom" bgColor=#e6efff>3.74 </TD>
    <TD  width="2%" align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left valign="bottom">Depletion, depreciation and amortization in </TD>
    <TD  width="1%" align=left valign="bottom">&nbsp;</TD>
    <TD width="10%" align=left valign="bottom">&nbsp; </TD>
    <TD  width="2%" align=left valign="bottom">&nbsp;</TD>
    <TD  width="1%" align=left valign="bottom">&nbsp;</TD>
    <TD width="10%" align=left valign="bottom">&nbsp; </TD>
    <TD  width="2%" align=left valign="bottom">&nbsp;</TD>
    <TD  width="1%" align=left valign="bottom">&nbsp;</TD>
    <TD width="10%" align=left valign="bottom">&nbsp; </TD>
    <TD  width="2%" align=left valign="bottom">&nbsp;</TD>
    <TD  width="1%" align=left valign="bottom">&nbsp;</TD>
    <TD width="10%" align=left valign="bottom">&nbsp; </TD>
    <TD  width="2%" align=left valign="bottom">&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left valign="bottom" bgColor=#e6efff>inventory adjustments </TD>
    <TD  width="1%" align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD width="10%" align=right valign="bottom" bgColor=#e6efff>(431</TD>
    <TD  width="2%" align=left valign="bottom" bgColor=#e6efff>) </TD>
    <TD  width="1%" align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD width="10%" align=right valign="bottom" bgColor=#e6efff>(0.07</TD>
    <TD  width="2%" align=left valign="bottom" bgColor=#e6efff>) </TD>
    <TD  width="1%" align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD width="10%" align=right valign="bottom" bgColor=#e6efff>- </TD>
    <TD  width="2%" align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD  width="1%" align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD width="10%" align=right valign="bottom" bgColor=#e6efff>- </TD>
    <TD  width="2%" align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left valign="bottom">Reclamation </TD>
    <TD  width="1%"
    align=left valign="bottom" style="BORDER-BOTTOM: #000000 1px solid">&nbsp;</TD>
    <TD width="10%" align=right valign="bottom" style="BORDER-BOTTOM: #000000 1px solid">1,149    </TD>
    <TD  width="2%"
    align=left valign="bottom" style="BORDER-BOTTOM: #000000 1px solid">&nbsp;</TD>
    <TD  width="1%"
    align=left valign="bottom" style="BORDER-BOTTOM: #000000 1px solid">&nbsp;</TD>
    <TD width="10%" align=right valign="bottom" style="BORDER-BOTTOM: #000000 1px solid">0.18    </TD>
    <TD  width="2%"
    align=left valign="bottom" style="BORDER-BOTTOM: #000000 1px solid">&nbsp;</TD>
    <TD  width="1%"
    align=left valign="bottom" style="BORDER-BOTTOM: #000000 1px solid">&nbsp;</TD>
    <TD width="10%" align=right valign="bottom" style="BORDER-BOTTOM: #000000 1px solid">- </TD>
    <TD  width="2%"
    align=left valign="bottom" style="BORDER-BOTTOM: #000000 1px solid">&nbsp;</TD>
    <TD  width="1%"
    align=left valign="bottom" style="BORDER-BOTTOM: #000000 1px solid">&nbsp;</TD>
    <TD width="10%" align=right valign="bottom" style="BORDER-BOTTOM: #000000 1px solid">- </TD>
    <TD  width="2%"
    align=left valign="bottom" style="BORDER-BOTTOM: #000000 1px solid">&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left valign="bottom" bgColor=#e6efff>Total production costs </TD>
    <TD
    width="1%" align=left valign="bottom" bgColor=#e6efff style="BORDER-BOTTOM: #000000 1px solid">&nbsp;</TD>
    <TD width="10%"
    align=right valign="bottom" bgColor=#e6efff style="BORDER-BOTTOM: #000000 1px solid">140,675 </TD>
    <TD
    width="2%" align=left valign="bottom" bgColor=#e6efff style="BORDER-BOTTOM: #000000 1px solid">&nbsp;</TD>
    <TD
    width="1%" align=left valign="bottom" bgColor=#e6efff style="BORDER-BOTTOM: #000000 1px solid">&nbsp;</TD>
    <TD width="10%"
    align=right valign="bottom" bgColor=#e6efff style="BORDER-BOTTOM: #000000 1px solid">22.32 </TD>
    <TD
    width="2%" align=left valign="bottom" bgColor=#e6efff style="BORDER-BOTTOM: #000000 1px solid">&nbsp;</TD>
    <TD
    width="1%" align=left valign="bottom" bgColor=#e6efff style="BORDER-BOTTOM: #000000 1px solid">&nbsp;</TD>
    <TD width="10%"
    align=right valign="bottom" bgColor=#e6efff style="BORDER-BOTTOM: #000000 1px solid">11,077 </TD>
    <TD
    width="2%" align=left valign="bottom" bgColor=#e6efff style="BORDER-BOTTOM: #000000 1px solid">&nbsp;</TD>
    <TD
    width="1%" align=left valign="bottom" bgColor=#e6efff style="BORDER-BOTTOM: #000000 1px solid">&nbsp;</TD>
    <TD width="10%"
    align=right valign="bottom" bgColor=#e6efff style="BORDER-BOTTOM: #000000 1px solid">20.30 </TD>
    <TD
    width="2%" align=left valign="bottom" bgColor=#e6efff style="BORDER-BOTTOM: #000000 1px solid">&nbsp;</TD>
  </TR>
  <TR>
    <TD valign="bottom">&nbsp; </TD>
    <TD  width="1%" valign="bottom">&nbsp;</TD>
    <TD width="10%" valign="bottom">&nbsp; </TD>
    <TD  width="2%" valign="bottom">&nbsp;</TD>
    <TD  width="1%" valign="bottom">&nbsp;</TD>
    <TD width="10%" valign="bottom">&nbsp; </TD>
    <TD  width="2%" valign="bottom">&nbsp;</TD>
    <TD  width="1%" valign="bottom">&nbsp;</TD>
    <TD width="10%" valign="bottom">&nbsp; </TD>
    <TD  width="2%" valign="bottom">&nbsp;</TD>
    <TD  width="1%" valign="bottom">&nbsp;</TD>
    <TD width="10%" valign="bottom">&nbsp; </TD>
    <TD  width="2%" valign="bottom">&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left valign="bottom" bgColor=#e6efff>Production (ounces) </TD>
    <TD  width="1%" align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD width="10%" align=right valign="bottom" bgColor=#e6efff>6,302,140 </TD>
    <TD  width="2%" align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD  width="1%" align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD width="10%" align=left valign="bottom" bgColor=#e6efff>&nbsp; </TD>
    <TD  width="2%" align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD  width="1%" align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD width="10%" align=right valign="bottom" bgColor=#e6efff>545,600 </TD>
    <TD  width="2%" align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD  width="1%" align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD width="10%" align=left valign="bottom" bgColor=#e6efff>&nbsp; </TD>
    <TD  width="2%"
  align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
  </TR></TABLE></DIV>
<P align=right>4</P>
<HR style="PAGE-BREAK-AFTER: always" align=center color=black SIZE=5
width="100%" noShade>
<!--$$/page=--><A name=page_5></A>
<P align=justify><B>Review of Annual Financial Results</B></P>
<P align=justify>For the year ended December 31, 2010, we recorded net earnings
of $346,239,000, ($4.44 per share) compared to a net loss of $13,193,000 ($0.19
per share) in 2009 and a net loss of $5,946,000 in 2008 ($0.09 per share). The
following is a summary and discussion on significant components of income and
expenses recorded during the year compared to the prior year.</P>
<P align=justify><B><I>2010 Compared to 2009</I></B></P>
<TABLE
style="BORDER-COLOR: black; BORDER-COLLAPSE: collapse; FONT-SIZE: 10pt; "
border=0 cellSpacing=0 cellPadding=0 width="100%">

  <TR vAlign=top>
    <TD align=left valign="bottom">&nbsp; </TD>
    <TD  width="1%" align=left valign="bottom">&nbsp;</TD>
    <TD width="12%" align=right valign="bottom"><B>2010</B> </TD>
    <TD  width="2%" align=left valign="bottom">&nbsp;</TD>
    <TD  width="1%" align=left valign="bottom">&nbsp;</TD>
    <TD width="12%" align=right valign="bottom"><B>2009</B> </TD>
  <TD  width="2%" align=left valign="bottom">&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left valign="bottom">&nbsp; </TD>
    <TD  width="1%"
    align=left valign="bottom" style="BORDER-BOTTOM: #000000 1px solid"><B></B></TD>
    <TD width="12%"
      align=right valign="bottom" nowrap style="BORDER-BOTTOM: #000000 1px solid"><B>$(000</B></TD>
    <TD  width="2%"
    align=left valign="bottom" style="BORDER-BOTTOM: #000000 1px solid"><B>)</B> </TD>
    <TD  width="1%"
    align=left valign="bottom" style="BORDER-BOTTOM: #000000 1px solid"><B></B></TD>
    <TD width="12%"
      align=right valign="bottom" nowrap style="BORDER-BOTTOM: #000000 1px solid"><B>$(000</B></TD>
  <TD  width="2%"
    align=left valign="bottom" style="BORDER-BOTTOM: #000000 1px solid"><B>)</B> </TD>
  </TR>
  <TR>
    <TD valign="bottom">&nbsp; </TD>
    <TD  width="1%" valign="bottom">&nbsp;</TD>
    <TD width="12%" valign="bottom">&nbsp; </TD>
    <TD  width="2%" valign="bottom">&nbsp;</TD>
    <TD  width="1%" valign="bottom">&nbsp;</TD>
    <TD width="12%" valign="bottom">&nbsp; </TD>
  <TD  width="2%" valign="bottom">&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left valign="bottom" bgColor=#e6efff>Revenue </TD>
    <TD  width="1%" align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD width="12%" align=right valign="bottom" bgColor=#e6efff><B>112,256</B> </TD>
    <TD  width="2%" align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD  width="1%" align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD width="12%" align=right valign="bottom" bgColor=#e6efff>5,442 </TD>
  <TD  width="2%" align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left valign="bottom">Cost of sales </TD>
    <TD  width="1%" align=left valign="bottom">&nbsp;</TD>
    <TD width="12%" align=right valign="bottom"><B>(75,971</B></TD>
    <TD  width="2%" align=left valign="bottom"><B>)</B> </TD>
    <TD  width="1%" align=left valign="bottom">&nbsp;</TD>
    <TD width="12%" align=right valign="bottom">(5,926</TD>
  <TD  width="2%" align=left valign="bottom">) </TD>
  </TR>
  <TR vAlign=top>
    <TD align=left valign="bottom" bgColor=#e6efff>Depletion, depreciation and amortization</TD>
    <TD
    width="1%" align=left valign="bottom" bgColor=#e6efff style="BORDER-BOTTOM: #000000 1px solid">&nbsp;</TD>
    <TD width="12%"
    align=right valign="bottom" bgColor=#e6efff style="BORDER-BOTTOM: #000000 1px solid"><B>(26,327</B></TD>
    <TD
    width="2%" align=left valign="bottom" bgColor=#e6efff style="BORDER-BOTTOM: #000000 1px solid"><B>)</B> </TD>
    <TD
    width="1%" align=left valign="bottom" bgColor=#e6efff style="BORDER-BOTTOM: #000000 1px solid">&nbsp;</TD>
    <TD width="12%"
    align=right valign="bottom" bgColor=#e6efff style="BORDER-BOTTOM: #000000 1px solid">(2,039</TD>
  <TD
    width="2%" align=left valign="bottom" bgColor=#e6efff style="BORDER-BOTTOM: #000000 1px solid">) </TD>
  </TR>
  <TR vAlign=top>
    <TD align=left valign="bottom">Earnings (loss) from mine operations </TD>
    <TD  width="1%"
    align=left valign="bottom" style="BORDER-BOTTOM: #000000 2px solid">&nbsp;</TD>
    <TD width="12%"
      align=right valign="bottom" style="BORDER-BOTTOM: #000000 2px solid"><B>9,958</B> </TD>
    <TD  width="2%"
    align=left valign="bottom" style="BORDER-BOTTOM: #000000 2px solid">&nbsp;</TD>
    <TD  width="1%"
    align=left valign="bottom" style="BORDER-BOTTOM: #000000 2px solid">&nbsp;</TD>
    <TD width="12%"
    align=right valign="bottom" style="BORDER-BOTTOM: #000000 2px solid">(2,523</TD>
  <TD  width="2%"
    align=left valign="bottom" style="BORDER-BOTTOM: #000000 2px solid">) </TD>
  </TR></TABLE>
<P align=justify>During the year ended December 31, 2010, we recorded sales
revenue of $112,256,000 on shipment of 11,161 tonnes of silver concentrate
containing 5,936,657 ounces of silver with a weighted average realized price of
$20.92 per ounce, compared to sales revenue of $5,442,000 on shipment of 2,893
tonnes of silver concentrate containing 460,100 ounces of silver in 2009 with a
weighted average realized price of $17.49. We commissioned the plant at our
Pirquitas mine on December 1, 2009 and as result, operating results for the
prior year are only applicable to the month of December in 2009. </P>
<P align=justify>Cost of sales related to concentrate sold during the year ended
December 31, 2010 was $102,298,000, including non-cash depletion, depreciation
and amortization of $26,327,000. Cost of sales includes export duties imposed by
the Argentine government for our silver concentrate sales of $8,739,000 (2009
- -$685,000) which are considered to be in substance a cost of sale rather than
income tax as they are calculated based on a percentage of revenue. Cost of
sales related to concentrate sold during the month of December 2009 was
$7,965,000 including non-cash depletion, depreciation and amortization for
$2,039,000. Net inventory write-down for the year ended December 31, 2010
included in cost of sales was $6,700,000 compared to $1,022,000 in the prior
year. </P>
<P align=justify>The improvement in margins from 2009 is due to the improved
operational efficiency at the mine, a focus on increasing plant throughput and
recoveries resulting in higher production together with higher silver
prices.</P>
<TABLE
style="BORDER-COLOR: black; BORDER-COLLAPSE: collapse; FONT-SIZE: 10pt; "
border=0 cellSpacing=0 cellPadding=0 width="100%">

  <TR vAlign=top>
    <TD align=left valign="bottom">&nbsp; </TD>
    <TD  width="1%" align=left valign="bottom">&nbsp;</TD>
    <TD width="12%" align=right valign="bottom"><B>2010</B> </TD>
    <TD  width="2%" align=left valign="bottom">&nbsp;</TD>
    <TD  width="1%" align=left valign="bottom">&nbsp;</TD>
    <TD width="12%" align=right valign="bottom"><B>2009</B> </TD>
  <TD  width="2%" align=left valign="bottom">&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left valign="bottom">&nbsp; </TD>
    <TD  width="1%"
    align=left valign="bottom" style="BORDER-BOTTOM: #000000 1px solid"><B></B></TD>
    <TD width="12%"
      align=right valign="bottom" style="BORDER-BOTTOM: #000000 1px solid"><B>$(000</B></TD>
    <TD  width="2%"
    align=left valign="bottom" style="BORDER-BOTTOM: #000000 1px solid"><B>)</B> </TD>
    <TD  width="1%"
    align=left valign="bottom" style="BORDER-BOTTOM: #000000 1px solid"><B></B></TD>
    <TD width="12%"
      align=right valign="bottom" style="BORDER-BOTTOM: #000000 1px solid"><B>$(000</B></TD>
  <TD  width="2%"
    align=left valign="bottom" style="BORDER-BOTTOM: #000000 1px solid"><B>)</B> </TD>
  </TR>
  <TR>
    <TD valign="bottom">&nbsp; </TD>
    <TD  width="1%" valign="bottom">&nbsp;</TD>
    <TD width="12%" valign="bottom">&nbsp; </TD>
    <TD  width="2%" valign="bottom">&nbsp;</TD>
    <TD  width="1%" valign="bottom">&nbsp;</TD>
    <TD width="12%" valign="bottom">&nbsp; </TD>
  <TD  width="2%" valign="bottom">&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left valign="bottom" bgColor=#e6efff>General and administration </TD>
    <TD  width="1%" align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD width="12%" align=right valign="bottom" bgColor=#e6efff><B>20,853</B> </TD>
    <TD  width="2%" align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD  width="1%" align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD width="12%" align=right valign="bottom" bgColor=#e6efff>10,287 </TD>
  <TD  width="2%" align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left valign="bottom">Stock-based compensation </TD>
    <TD  width="1%" align=left valign="bottom">&nbsp;</TD>
    <TD width="12%" align=right valign="bottom"><B>8,868</B> </TD>
    <TD  width="2%" align=left valign="bottom">&nbsp;</TD>
    <TD  width="1%" align=left valign="bottom">&nbsp;</TD>
    <TD width="12%" align=right valign="bottom">6,319 </TD>
  <TD  width="2%" align=left valign="bottom">&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left valign="bottom" bgColor=#e6efff>Property examination and exploration </TD>
    <TD  width="1%" align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD width="12%" align=right valign="bottom" bgColor=#e6efff><B>2,400</B> </TD>
    <TD  width="2%" align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD  width="1%" align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD width="12%" align=right valign="bottom" bgColor=#e6efff>459 </TD>
  <TD  width="2%" align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left valign="bottom">Reclamation and accretion </TD>
    <TD  width="1%"
    align=left valign="bottom" style="BORDER-BOTTOM: #000000 1px solid">&nbsp;</TD>
    <TD width="12%"
      align=right valign="bottom" style="BORDER-BOTTOM: #000000 1px solid"><B>1,669</B> </TD>
    <TD  width="2%"
    align=left valign="bottom" style="BORDER-BOTTOM: #000000 1px solid">&nbsp;</TD>
    <TD  width="1%"
    align=left valign="bottom" style="BORDER-BOTTOM: #000000 1px solid">&nbsp;</TD>
    <TD width="12%" align=right valign="bottom" style="BORDER-BOTTOM: #000000 1px solid">366    </TD>
  <TD  width="2%"
    align=left valign="bottom" style="BORDER-BOTTOM: #000000 1px solid">&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left valign="bottom" bgColor=#e6efff>&nbsp; </TD>
    <TD
    width="1%" align=left valign="bottom" bgColor=#e6efff style="BORDER-BOTTOM: #000000 2px solid">&nbsp;</TD>
    <TD width="12%"
    align=right valign="bottom" bgColor=#e6efff style="BORDER-BOTTOM: #000000 2px solid"><B>33,790</B> </TD>
    <TD
    width="2%" align=left valign="bottom" bgColor=#e6efff style="BORDER-BOTTOM: #000000 2px solid">&nbsp;</TD>
    <TD
    width="1%" align=left valign="bottom" bgColor=#e6efff style="BORDER-BOTTOM: #000000 2px solid">&nbsp;</TD>
    <TD width="12%"
    align=right valign="bottom" bgColor=#e6efff style="BORDER-BOTTOM: #000000 2px solid">17,431 </TD>
  <TD
    width="2%" align=left valign="bottom" bgColor=#e6efff style="BORDER-BOTTOM: #000000 2px solid">&nbsp;</TD>
  </TR></TABLE>
<P align=justify>General and administration expenses during 2010 were
$20,853,000 compared to $10,287,000 in 2009. The increase in general and
administrative expenses was primarily driven by an increase in staff as we build
up our development and production capability, the components being an increase
in aggregate salaries, employee benefits and bonuses of $3,585,000, recruiting
costs of $794,000, as well as certain termination benefits of $1,788,000. Other
contributing factors to the increase in general and administrative expenses were one off incentive payments of $1,215,000 for
staff for participation in the Pretium IPO, the incremental valuation of
directors&#146; DSU&#146;s of $660,000, additional travel and project consulting together
comprising an increase of $691,000. </P>
<P align=right>5</P>
<HR style="PAGE-BREAK-AFTER: always" align=center color=black SIZE=5
width="100%" noShade>
<!--$$/page=--><A name=page_6></A>
<P align=justify>Stock-based compensation expense for 2010 was $8,868,000
compared to $6,319,000 in 2009. Stock-based compensation expense is recognized
over the vesting period of the options granted. The increase in total
stock-based compensation from the prior year is due to the amount and timing of
options awards and in particular reflects options awarded in December 2009, and
during 2010, to new employees. Stock-based compensation assigned to mineral
properties during the year was $331,000 compared to $228,000 during 2009. The
increase in the amount assigned to mineral properties in 2010 compared to 2009
is the result of an increase in stock options granted to employees working on
exploration projects during 2010.</P>
<P align=justify>Property and examination and exploration expense was $2,400,000
compared to $459,000 in 2009. During 2010, in line with our accounting policy,
we recorded $1,609,000 of exploration costs at our operating Pirquitas mine; no
exploration work had been done there in 2009.</P>
<P align=justify>Reclamation and accretion expense in 2010 was $1,669,000
compared to $366,000 in 2009. The increase over the prior year is mainly
attributed to higher accretion expense for the Pirquitas mine following an
upward revision of the reclamation liability estimate at the end of 2010.</P>
<TABLE
style="BORDER-COLOR: black; BORDER-COLLAPSE: collapse; FONT-SIZE: 10pt; "
border=0 cellSpacing=0 cellPadding=0 width="100%">

  <TR vAlign=top>
    <TD align=left valign="bottom">&nbsp; </TD>
    <TD  width="1%" align=left valign="bottom">&nbsp;</TD>
    <TD width="12%" align=right valign="bottom"><B>2010</B> </TD>
    <TD  width="2%" align=left valign="bottom">&nbsp;</TD>
    <TD  width="1%" align=left valign="bottom">&nbsp;</TD>
    <TD width="12%" align=right valign="bottom"><B>2009</B> </TD>
  <TD  width="2%" align=left valign="bottom">&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left valign="bottom">&nbsp; </TD>
    <TD  width="1%"
    align=left valign="bottom" style="BORDER-BOTTOM: #000000 1px solid"><B></B></TD>
    <TD width="12%"
      align=right valign="bottom" style="BORDER-BOTTOM: #000000 1px solid"><B>$(000</B></TD>
    <TD  width="2%"
    align=left valign="bottom" style="BORDER-BOTTOM: #000000 1px solid"><B>)</B> </TD>
    <TD  width="1%"
    align=left valign="bottom" style="BORDER-BOTTOM: #000000 1px solid"></TD>
    <TD width="12%"
      align=right valign="bottom" style="BORDER-BOTTOM: #000000 1px solid"><B>$(000</B></TD>
  <TD  width="2%"
    align=left valign="bottom" style="BORDER-BOTTOM: #000000 1px solid"><B>)</B> </TD>
  </TR>
  <TR>
    <TD valign="bottom">&nbsp; </TD>
    <TD  width="1%" valign="bottom">&nbsp;</TD>
    <TD width="12%" valign="bottom">&nbsp; </TD>
    <TD  width="2%" valign="bottom">&nbsp;</TD>
    <TD  width="1%" valign="bottom">&nbsp;</TD>
    <TD width="12%" valign="bottom">&nbsp; </TD>
  <TD  width="2%" valign="bottom">&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left valign="bottom" bgColor=#e6efff>Investment income </TD>
    <TD  width="1%" align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD width="12%" align=right valign="bottom" bgColor=#e6efff><B>1,400</B> </TD>
    <TD  width="2%" align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD  width="1%" align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD width="12%" align=right valign="bottom" bgColor=#e6efff>1,100 </TD>
  <TD  width="2%" align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left valign="bottom">Foreign exchange gain </TD>
    <TD  width="1%" align=left valign="bottom">&nbsp;</TD>
    <TD width="12%" align=right valign="bottom"><B>1,239</B> </TD>
    <TD  width="2%" align=left valign="bottom">&nbsp;</TD>
    <TD  width="1%" align=left valign="bottom">&nbsp;</TD>
    <TD width="12%" align=right valign="bottom">4,993 </TD>
  <TD  width="2%" align=left valign="bottom">&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left valign="bottom" bgColor=#e6efff>Interest expense </TD>
    <TD  width="1%" align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD width="12%" align=right valign="bottom" bgColor=#e6efff><B>(13,916</B></TD>
    <TD  width="2%" align=left valign="bottom" bgColor=#e6efff><B>)</B> </TD>
    <TD  width="1%" align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD width="12%" align=right valign="bottom" bgColor=#e6efff>(1,095</TD>
  <TD  width="2%" align=left valign="bottom" bgColor=#e6efff>) </TD>
  </TR>
  <TR vAlign=top>
    <TD align=left valign="bottom">Share of loss of equity investee </TD>
    <TD  width="1%"
    align=left valign="bottom" style="BORDER-BOTTOM: #000000 1px solid">&nbsp;</TD>
    <TD width="12%"
      align=right valign="bottom" style="BORDER-BOTTOM: #000000 1px solid"><B>(77</B></TD>
    <TD  width="2%"
    align=left valign="bottom" style="BORDER-BOTTOM: #000000 1px solid"><B>)</B> </TD>
    <TD  width="1%"
    align=left valign="bottom" style="BORDER-BOTTOM: #000000 1px solid">&nbsp;</TD>
    <TD width="12%" align=right valign="bottom" style="BORDER-BOTTOM: #000000 1px solid">- </TD>
  <TD  width="2%"
    align=left valign="bottom" style="BORDER-BOTTOM: #000000 1px solid">&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left valign="bottom" bgColor=#e6efff>&nbsp; </TD>
    <TD
    width="1%" align=left valign="bottom" bgColor=#e6efff style="BORDER-BOTTOM: #000000 2px solid">&nbsp;</TD>
    <TD width="12%"
    align=right valign="bottom" bgColor=#e6efff style="BORDER-BOTTOM: #000000 2px solid"><B>(11,354</B></TD>
    <TD
    width="2%" align=left valign="bottom" bgColor=#e6efff style="BORDER-BOTTOM: #000000 2px solid"><B>)</B> </TD>
    <TD
    width="1%" align=left valign="bottom" bgColor=#e6efff style="BORDER-BOTTOM: #000000 2px solid">&nbsp;</TD>
    <TD width="12%"
    align=right valign="bottom" bgColor=#e6efff style="BORDER-BOTTOM: #000000 2px solid">4,998 </TD>
  <TD
    width="2%" align=left valign="bottom" bgColor=#e6efff style="BORDER-BOTTOM: #000000 2px solid">&nbsp;</TD>
  </TR></TABLE>
<P align=justify>Investment income, which comprises interest and accretion
expense on the convertible note receivable and other bank interest, was
$1,400,000 for 2010 compared to $1,100,000 in 2009. This is primarily comprised
on interest income and accretion income on the convertible debenture receivable
from Aurcana totalling $1,253,000 (2009 - $999,000), the balance relates to bank
interest earned.</P>
<P align=justify>The foreign exchange gain for 2010 was $1,239,000 compared to a
gain of $4,993,000 in 2009. Our main exposure to foreign exchange risk is
related to our net monetary assets denominated in Canadian dollars and
Argentinean pesos. Following the sale of the Snowfield and Brucejack properties
in December 2010 we have a significant amount of Canadian dollar cash which
generated gains due to the strengthening of the Canadian dollar against the U.S.
dollar. This was offset to an extent due to a weakening Argentine Peso against
the U.S. dollar, on a net Peso asset balance.</P>
<P align=justify>We incurred interest and accretion expense in relation to the
convertible notes of $13,674,000 in 2010 compared to $12,903,000 in 2009. During
2009, interest and accretion expense incurred until the start of commercial
production on December 1, 2009 of $11,808,000 was capitalized to construction in
progress and thereafter $1,095,000 was recognized as an expense; whereas during
2010 the full amount was recognised as an expense. </P>
<P align=justify>The share of equity investee&#146;s loss in 2010 is from our
investment in Pretium and relates to the period from December 21, 2010 to
December 31, 2010.</P>
<P align=right>6</P>
<HR style="PAGE-BREAK-AFTER: always" align=center color=black SIZE=5
width="100%" noShade>
<!--$$/page=--><A name=page_7></A><BR>
<TABLE
style="BORDER-COLOR: black; BORDER-COLLAPSE: collapse; FONT-SIZE: 10pt; "
border=0 cellSpacing=0 cellPadding=0 width="100%">

  <TR vAlign=top>
    <TD align=left valign="bottom">&nbsp; </TD>
    <TD  width="1%" align=left valign="bottom">&nbsp;</TD>
    <TD width="12%" align=right valign="bottom"><B>2010</B> </TD>
    <TD  width="2%" align=left valign="bottom">&nbsp;</TD>
    <TD  width="1%" align=left valign="bottom">&nbsp;</TD>
    <TD width="12%" align=right valign="bottom"><B>2009</B> </TD>
  <TD  width="2%" align=left valign="bottom">&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left valign="bottom">&nbsp; </TD>
    <TD  width="1%"
    align=left valign="bottom" style="BORDER-BOTTOM: #000000 1px solid"><B></B></TD>
    <TD width="12%"
      align=right valign="bottom" style="BORDER-BOTTOM: #000000 1px solid"><B>$(000</B></TD>
    <TD  width="2%"
    align=left valign="bottom" style="BORDER-BOTTOM: #000000 1px solid"><B>)</B> </TD>
    <TD  width="1%"
    align=left valign="bottom" style="BORDER-BOTTOM: #000000 1px solid"><B></B></TD>
    <TD width="12%"
      align=right valign="bottom" style="BORDER-BOTTOM: #000000 1px solid"><B>$(000</B></TD>
  <TD  width="2%"
    align=left valign="bottom" style="BORDER-BOTTOM: #000000 1px solid"><B>)</B> </TD>
  </TR>
  <TR>
    <TD valign="bottom">&nbsp; </TD>
    <TD  width="1%" valign="bottom">&nbsp;</TD>
    <TD width="12%" valign="bottom">&nbsp; </TD>
    <TD  width="2%" valign="bottom">&nbsp;</TD>
    <TD  width="1%" valign="bottom">&nbsp;</TD>
    <TD width="12%" valign="bottom">&nbsp; </TD>
  <TD  width="2%" valign="bottom">&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left valign="bottom" bgColor=#e6efff>Gain on sale of mineral property and
      property, plant and equipment </TD>
    <TD
    width="1%" align=left valign="bottom" bgColor=#e6efff style="BORDER-BOTTOM: #000000 2px solid">&nbsp;</TD>
    <TD width="12%"
    align=right valign="bottom" bgColor=#e6efff style="BORDER-BOTTOM: #000000 2px solid">402,009 </TD>
    <TD
    width="2%" align=left valign="bottom" bgColor=#e6efff style="BORDER-BOTTOM: #000000 2px solid">&nbsp;</TD>
    <TD
    width="1%" align=left valign="bottom" bgColor=#e6efff style="BORDER-BOTTOM: #000000 2px solid">&nbsp;</TD>
    <TD width="12%"
    align=right valign="bottom" bgColor=#e6efff style="BORDER-BOTTOM: #000000 2px solid">167 </TD>
  <TD
    width="2%" align=left valign="bottom" bgColor=#e6efff style="BORDER-BOTTOM: #000000 2px solid">&nbsp;</TD>
  </TR></TABLE>
<P align=justify>We recorded a gain on sale of mineral properties of
$402,009,000 compared to $167,000 in 2009. The gain in 2010 was primarily due to
the sales of the Snowfield and Brucejack properties in December 2010, and the
Silvertip property in February 2010; the gain in 2009 was the result of the sale
of our remaining interest in the San Juan property located in Mexico.</P>
<P align=justify>On December 21, 2010 we completed the sale of our 100% interest
in the Snowfield and Brucejack properties located in British Columbia, Canada to
Pretium for total consideration of $442,260,000 (C$450,000,000). Under the terms
of the transaction we received a total of 32,537,833 common shares of Pretium
with a fair value of $191,869,000 (C$195,227,000), cash proceeds of $211,322,000
(C$215,020,000) (before costs of $12,427,000 (C$12,645,000)) and a non-interest
bearing convertible promissory note in the principal amount of $39,069,000
(C$39,753,000). This resulted in a gain of $388,761,000 gain (after tax
$360,612,000).</P>
<P align=justify>During February 2010, we completed the sale of our 100%
interest in the Silvertip property located in British Columbia, Canada to
Silvercorp. Under the terms of the agreement, Silvercorp paid us total
consideration of $14,957,000, comprising cash of $7,125,000 and 1,200,000 common
shares of Silvercorp with a fair value of $7,832,000, for a gain of
$13,073,000.</P>
<P align=justify>The $167,000 gain on sale of mineral properties in the prior
year was the result of the disposal of our remaining 25% interest in the San
Juan property located in Durango State, Mexico to Orko Silver Corp. (&#147;Orko&#148;).
Under the terms of the agreement we received total consideration of $202,000, in
the form of 306,000 shares of Orko.</P>
<TABLE
style="BORDER-COLOR: black; BORDER-COLLAPSE: collapse; FONT-SIZE: 10pt; "
border=0 cellSpacing=0 cellPadding=0 width="100%">

  <TR vAlign=top>
    <TD align=left valign="bottom">&nbsp; </TD>
    <TD  width="1%" align=left valign="bottom">&nbsp;</TD>
    <TD width="12%" align=right valign="bottom"><B>2010</B> </TD>
    <TD  width="2%" align=left valign="bottom">&nbsp;</TD>
    <TD  width="1%" align=left valign="bottom">&nbsp;</TD>
    <TD width="12%" align=right valign="bottom"><B>2009</B> </TD>
  <TD  width="2%" align=left>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left valign="bottom">&nbsp; </TD>
    <TD  width="1%"
    align=left valign="bottom" style="BORDER-BOTTOM: #000000 1px solid"><B></B></TD>
    <TD width="12%"
      align=right valign="bottom" style="BORDER-BOTTOM: #000000 1px solid"><B>$(000</B></TD>
    <TD  width="2%"
    align=left valign="bottom" style="BORDER-BOTTOM: #000000 1px solid"><B>)</B> </TD>
    <TD  width="1%"
    align=left valign="bottom" style="BORDER-BOTTOM: #000000 1px solid"><B></B></TD>
    <TD width="12%"
      align=right valign="bottom" style="BORDER-BOTTOM: #000000 1px solid"><B>$(000</B></TD>
  <TD style="BORDER-BOTTOM: #000000 1px solid"  width="2%"
    align=left><B>)</B> </TD></TR>
  <TR>
    <TD valign="bottom">&nbsp; </TD>
    <TD  width="1%" valign="bottom">&nbsp;</TD>
    <TD width="12%" valign="bottom">&nbsp; </TD>
    <TD  width="2%" valign="bottom">&nbsp;</TD>
    <TD  width="1%" valign="bottom">&nbsp;</TD>
    <TD width="12%" valign="bottom">&nbsp; </TD>
  <TD  width="2%">&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left valign="bottom" bgColor=#e6efff>Gain (loss) on sale of marketable
      securities and other investments </TD>
    <TD  width="1%" align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD width="12%" align=right valign="bottom" bgColor=#e6efff><B>3,114</B> </TD>
    <TD  width="2%" align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD  width="1%" align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD width="12%" align=right valign="bottom" bgColor=#e6efff>(1,279</TD>
  <TD bgColor=#e6efff  width="2%" align=left>) </TD></TR>
  <TR vAlign=top>
    <TD align=left valign="bottom">Unrealized gain (loss) on financial instruments
      held-for-trading </TD>
    <TD  width="1%" align=left valign="bottom">&nbsp;</TD>
    <TD width="12%" align=right valign="bottom"><B>(102</B></TD>
    <TD  width="2%" align=left valign="bottom"><B>)</B> </TD>
    <TD  width="1%" align=left valign="bottom">&nbsp;</TD>
    <TD width="12%" align=right valign="bottom">412 </TD>
  <TD  width="2%" align=left>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left valign="bottom" bgColor=#e6efff>Write-down of marketable securities and
      other investments, net of interest received </TD>
    <TD  width="1%" align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD width="12%" align=right valign="bottom" bgColor=#e6efff><B>-</B> </TD>
    <TD  width="2%" align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD  width="1%" align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD width="12%" align=right valign="bottom" bgColor=#e6efff>534 </TD>
  <TD bgColor=#e6efff  width="2%" align=left>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left valign="bottom">Write-down of convertible debenture </TD>
    <TD  width="1%" align=left valign="bottom">&nbsp;</TD>
    <TD width="12%" align=right valign="bottom"><B>-</B> </TD>
    <TD  width="2%" align=left valign="bottom">&nbsp;</TD>
    <TD  width="1%" align=left valign="bottom">&nbsp;</TD>
    <TD width="12%" align=right valign="bottom">(2,002</TD>
  <TD  width="2%" align=left>) </TD></TR>
  <TR vAlign=top>
    <TD align=left valign="bottom" bgColor=#e6efff>Write down of mineral property </TD>
    <TD  width="1%" align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD width="12%" align=right valign="bottom" bgColor=#e6efff><B>(238</B></TD>
    <TD  width="2%" align=left valign="bottom" bgColor=#e6efff><B>)</B> </TD>
    <TD  width="1%" align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD width="12%" align=right valign="bottom" bgColor=#e6efff>(377</TD>
  <TD bgColor=#e6efff  width="2%" align=left>) </TD></TR>
  <TR vAlign=top>
    <TD align=left valign="bottom">Other expenses </TD>
    <TD  width="1%"
    align=left valign="bottom" style="BORDER-BOTTOM: #000000 1px solid">&nbsp;</TD>
    <TD width="12%"
      align=right valign="bottom" style="BORDER-BOTTOM: #000000 1px solid"><B>(61</B></TD>
    <TD  width="2%"
    align=left valign="bottom" style="BORDER-BOTTOM: #000000 1px solid"><B>)</B> </TD>
    <TD  width="1%"
    align=left valign="bottom" style="BORDER-BOTTOM: #000000 1px solid">&nbsp;</TD>
    <TD width="12%" align=right valign="bottom" style="BORDER-BOTTOM: #000000 1px solid">- </TD>
  <TD style="BORDER-BOTTOM: #000000 1px solid"  width="2%"
    align=left>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left valign="bottom" bgColor=#e6efff>&nbsp; </TD>
    <TD
    width="1%" align=left valign="bottom" bgColor=#e6efff style="BORDER-BOTTOM: #000000 1px solid">&nbsp;</TD>
    <TD width="12%"
    align=right valign="bottom" bgColor=#e6efff style="BORDER-BOTTOM: #000000 1px solid"><B>2,713</B> </TD>
    <TD
    width="2%" align=left valign="bottom" bgColor=#e6efff style="BORDER-BOTTOM: #000000 1px solid">&nbsp;</TD>
    <TD
    width="1%" align=left valign="bottom" bgColor=#e6efff style="BORDER-BOTTOM: #000000 1px solid">&nbsp;</TD>
    <TD width="12%"
    align=right valign="bottom" bgColor=#e6efff style="BORDER-BOTTOM: #000000 1px solid">(2,712</TD>
  <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff
    width="2%" align=left>) </TD></TR></TABLE>
<P align=justify>In 2010 we recorded a gain on the sale of marketable securities
and other investments of $3,114,000, compared to a loss of $1,279,000 in 2009.
The gain in the current year is due to the disposal of 1,200,000 common shares
of Silvercorp Metals Inc. (&#147;Silvercorp&#148;) for a gain of $741,000 and the disposal
of 500,000 common shares of Canplats Resources Corporation (&#147;Canplats&#148;) for a
gain of $2,373,000. The loss in the prior year was the result of the disposal of
our Class A-1 and A-2 asset-backed commercial paper (&#145;ABCP&#146;) investments for a
loss of $3,103,000, which was partially offset by a gain of $1,824,000 from the
sale of 3,300,000 common shares of Minco Silver Corporation (&#147;Minco&#148;), and
135,429 common shares of Allied Nevada Corporation (&#147;Allied Nevada&#148;).</P>
<P align=right>7</P>
<HR style="PAGE-BREAK-AFTER: always" align=center color=black SIZE=5
width="100%" noShade>
<!--$$/page=--><A name=page_8></A>
<P align=justify>The revaluation of the conversion feature on our convertible
debenture receivable generated an unrealized loss on financial instruments
held-for-trading during the year of $102,000 compared to a gain of $412,000 in
the prior year.</P>
<P align=justify>Write-down of marketable securities and other investments, net
of interest received was $nil in 2010 compared to $534,000 in 2009. During 2009,
we were unable to receive a reasonable bid for the remaining ABCP notes upon
sale of our Class A-1 and A-2 notes and as a result, the remaining carrying
value of $2,113,000 (net of interest and principal repayments received of
$2,647,000) was written off.</P>
<P align=justify>During 2009, we renegotiated the terms of our convertible
debenture with Aurcana Corporation (&#147;Aurcana&#148;) resulting in a reduction in the
coupon rate from 3% per year to 1.5% in the first year and an increase to 4% per
year thereafter. As a result, a $2,002,000 write-down of our accrued interest
and convertible debenture from Aurcana was recorded during 2009 to reflect the
fair value of the restructured debenture. There were no similar write-downs
during 2010. </P>
<P align=justify>Write-down of mineral properties was $238,000 in 2010 following
the write off of assets at Pirquitas compared to $377,000 in 2009 during which
year we allowed our mineral rights for La Bandera project in Mexico and Veca
project in Peru to lapse.</P>
<TABLE
style="BORDER-COLOR: black; BORDER-COLLAPSE: collapse; FONT-SIZE: 10pt; "
border=0 cellSpacing=0 cellPadding=0 width="100%">

  <TR vAlign=top>
    <TD align=left>&nbsp; </TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="12%" align=right><B>2010</B> </TD>
    <TD  width="2%" align=left>&nbsp;</TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="12%" align=right><B>2009</B> </TD>
    <TD  width="2%" align=left>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left>&nbsp; </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="1%"
    align=left><B></B></TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="12%"
      align=right><B>$(000</B></TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="2%"
    align=left><B>)</B> </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="1%"
    align=left><B></B></TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="12%"
      align=right><B>$(000</B></TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="2%"
    align=left><B>)</B> </TD></TR>
  <TR>
    <TD>&nbsp; </TD>
    <TD  width="1%">&nbsp;</TD>
    <TD width="12%">&nbsp; </TD>
    <TD  width="2%">&nbsp;</TD>
    <TD  width="1%">&nbsp;</TD>
    <TD width="12%">&nbsp; </TD>
    <TD  width="2%">&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD bgColor=#e6efff align=left>Current income tax recovery (expense) </TD>
    <TD bgColor=#e6efff  width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="12%" align=right><B>(2,600</B></TD>
    <TD bgColor=#e6efff  width="2%" align=left><B>)</B> </TD>
    <TD bgColor=#e6efff  width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="12%" align=right>2,221 </TD>
    <TD bgColor=#e6efff  width="2%" align=left>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left>Future income tax recovery (expense) </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="1%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="12%"
      align=right><B>(20,697</B></TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="2%"
    align=left><B>)</B> </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="1%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="12%" align=right>2,087
    </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="2%"
    align=left>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD bgColor=#e6efff align=left>&nbsp; </TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" bgColor=#e6efff
    width="1%" align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" bgColor=#e6efff width="12%"
    align=right><B>(23,297</B></TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" bgColor=#e6efff
    width="2%" align=left><B>)</B> </TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" bgColor=#e6efff
    width="1%" align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" bgColor=#e6efff width="12%"
    align=right>4,308 </TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" bgColor=#e6efff
    width="2%" align=left>&nbsp;</TD></TR></TABLE>
<P align=justify>For the year ended December 31, 2010, we recorded a current
income tax expense of $2,600,000 compared to a recovery of $2,221,000 in 2009.
The tax expense during the current year relates to mining operations at
Pirquitas. During 2009, we generated sufficient loss pools to reverse taxes
payable of $2,006,000 which was recorded in the prior years. We also finalized
our tax filing related to the sale of the Shafter Silver project during 2009,
which resulted in a reduction in our original estimate of income tax expense by
$900,000.</P>
<P align=justify>Future income tax expense during the year was $20,697,000
compared to a recovery of $2,087,000 in 2009. During 2010, we recognized a
future income tax expense of $28,149,000 in relation to the common shares and
convertible note received as consideration for the sale of the Snowfield and
Brucejack properties, which was offset from future income tax recoveries of
$8,526,000 from various other investments. We also recorded a future income tax
recovery of $1,883,000 (2009 &#150;$1,034,000), which reflects the tax effects of
unrealized gains (losses) on our marketable securities during the respective
years.</P>
<P align=justify><B><I>2009 Compared to 2008</I></B></P>
<TABLE
style="BORDER-COLOR: black; BORDER-COLLAPSE: collapse; FONT-SIZE: 10pt; "
border=0 cellSpacing=0 cellPadding=0 width="100%">

  <TR vAlign=top>
    <TD align=left>&nbsp; </TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="12%" align=right><B>2009</B> </TD>
    <TD  width="2%" align=left>&nbsp;</TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="12%" align=right><B>2008</B> </TD>
    <TD  width="2%" align=left>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left>&nbsp; </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="1%"
    align=left><B></B></TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="12%"
      align=right><B>$(000</B></TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="2%"
    align=left><B>)</B> </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="1%"
    align=left><B></B></TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="12%"
      align=right><B>$(000</B></TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="2%"
    align=left><B>)</B> </TD></TR>
  <TR>
    <TD>&nbsp; </TD>
    <TD  width="1%">&nbsp;</TD>
    <TD width="12%">&nbsp; </TD>
    <TD  width="2%">&nbsp;</TD>
    <TD  width="1%">&nbsp;</TD>
    <TD width="12%">&nbsp; </TD>
    <TD  width="2%">&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD bgColor=#e6efff align=left>Revenue </TD>
    <TD bgColor=#e6efff  width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="12%" align=right>5,442 </TD>
    <TD bgColor=#e6efff  width="2%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff  width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="12%" align=right>- </TD>
    <TD bgColor=#e6efff  width="2%" align=left>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left>Cost of sales </TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="12%" align=right>(5,926</TD>
    <TD  width="2%" align=left>) </TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="12%" align=right>- </TD>
    <TD  width="2%" align=left>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD bgColor=#e6efff align=left>Depletion, depreciation and amortization
</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff
    width="1%" align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff width="12%"
    align=right>(2,039</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff
    width="2%" align=left>) </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff
    width="1%" align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff width="12%"
    align=right>- </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff
    width="2%" align=left>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left>Loss from mine operations </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="1%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="12%"
    align=right>(2,523</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="2%"
    align=left>) </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="1%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="12%" align=right>- </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="2%"
    align=left>&nbsp;</TD></TR></TABLE>
<P align=right>8</P>
<HR style="PAGE-BREAK-AFTER: always" align=center color=black SIZE=5
width="100%" noShade>
<!--$$/page=--><A name=page_9></A>
<P align=justify>On December 1, 2009 we commenced commercial production at the
Pirquitas mine. We recorded sales revenue of $5,442,000 on the shipment of 2,893
tonnes of silver concentrate containing 460,100 ounces of silver with a weighted
average realized price of $17.49. There were no sales recorded in 2008.</P>
<P align=justify>Cost of sales related to concentrate sold during the month of
December 2009 was $7,965,000 including non-cash depletion, depreciation and
amortization for $2,039,000. Net inventory write-down for the period ended
December 31, 2009 included in cost of sales was $1,022,000. </P>
<TABLE
style="BORDER-COLOR: black; BORDER-COLLAPSE: collapse; FONT-SIZE: 10pt; "
border=0 cellSpacing=0 cellPadding=0 width="100%">

  <TR vAlign=top>
    <TD align=left>&nbsp; </TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="12%" align=right><B>2009</B> </TD>
    <TD  width="2%" align=left>&nbsp;</TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="12%" align=right><B>2008</B> </TD>
    <TD  width="2%" align=left>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left>&nbsp; </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="1%"
    align=left><B></B></TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="12%"
      align=right><B>$(000</B></TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="2%"
    align=left><B>)</B> </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="1%"
    align=left><B></B></TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="12%"
      align=right><B>$(000</B></TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="2%"
    align=left><B>)</B> </TD></TR>
  <TR>
    <TD>&nbsp; </TD>
    <TD  width="1%">&nbsp;</TD>
    <TD width="12%">&nbsp; </TD>
    <TD  width="2%">&nbsp;</TD>
    <TD  width="1%">&nbsp;</TD>
    <TD width="12%">&nbsp; </TD>
    <TD  width="2%">&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD bgColor=#e6efff align=left>General and administration </TD>
    <TD bgColor=#e6efff  width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="12%" align=right>10,287 </TD>
    <TD bgColor=#e6efff  width="2%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff  width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="12%" align=right>9,031 </TD>
    <TD bgColor=#e6efff  width="2%" align=left>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left>Stock-based compensation </TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="12%" align=right>6,319 </TD>
    <TD  width="2%" align=left>&nbsp;</TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="12%" align=right>9,601 </TD>
    <TD  width="2%" align=left>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD bgColor=#e6efff align=left>Property examination and exploration </TD>
    <TD bgColor=#e6efff  width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="12%" align=right>459 </TD>
    <TD bgColor=#e6efff  width="2%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff  width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="12%" align=right>340 </TD>
    <TD bgColor=#e6efff  width="2%" align=left>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left>Reclamation and accretion </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="1%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="12%" align=right>366
    </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="2%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="1%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="12%" align=right>318
    </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="2%"
    align=left>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD bgColor=#e6efff align=left>&nbsp; </TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" bgColor=#e6efff
    width="1%" align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" bgColor=#e6efff width="12%"
    align=right>17,431 </TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" bgColor=#e6efff
    width="2%" align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" bgColor=#e6efff
    width="1%" align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" bgColor=#e6efff width="12%"
    align=right>19,290 </TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" bgColor=#e6efff
    width="2%" align=left>&nbsp;</TD></TR></TABLE>
<P align=justify>General and administration expenses during 2009 were
$10,287,000 compared to $9,031,000 in 2008. The increase in general and
administrative expenses was the result of office relocation costs, recruiting
fees and an increase in aggregate salaries and employee benefits related to
hiring additional senior staff as we were transitioning to a producing mining
company.</P>
<P align=justify>Stock-based compensation expense for 2009 was $6,319,000
compared to $9,601,000 in 2008. The decrease in total stock-based compensation
from prior year was due to fewer unvested stock options outstanding during 2009.
Stock-based compensation assigned to mineral properties during 2009 was $228,000
compared to $61,000 during 2008. The increase in the amount assigned to mineral
properties in 2009 compared to 2008 is the result an increase in stock options
granted to employees working on the Pitarrilla and San Luis projects during
2009.</P>
<TABLE
style="BORDER-COLOR: black; BORDER-COLLAPSE: collapse; FONT-SIZE: 10pt; "
border=0 cellSpacing=0 cellPadding=0 width="100%">

  <TR vAlign=top>
    <TD align=left>&nbsp; </TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="12%" align=right><B>2009</B> </TD>
    <TD  width="2%" align=left>&nbsp;</TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="12%" align=right><B>2008</B> </TD>
    <TD  width="2%" align=left>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left>&nbsp; </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="1%"
    align=left><B></B></TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="12%"
      align=right><B>$(000</B></TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="2%"
    align=left><B>)</B> </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="1%"
    align=left><B></B></TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="12%"
      align=right><B>$(000</B></TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="2%"
    align=left><B>)</B> </TD></TR>
  <TR>
    <TD>&nbsp; </TD>
    <TD  width="1%">&nbsp;</TD>
    <TD width="12%">&nbsp; </TD>
    <TD  width="2%">&nbsp;</TD>
    <TD  width="1%">&nbsp;</TD>
    <TD width="12%">&nbsp; </TD>
    <TD  width="2%">&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD bgColor=#e6efff align=left>Investment income </TD>
    <TD bgColor=#e6efff  width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="12%" align=right>1,100 </TD>
    <TD bgColor=#e6efff  width="2%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff  width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="12%" align=right>3,039 </TD>
    <TD bgColor=#e6efff  width="2%" align=left>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left>Foreign exchange gain </TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="12%" align=right>4,993 </TD>
    <TD  width="2%" align=left>&nbsp;</TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="12%" align=right>200 </TD>
    <TD  width="2%" align=left>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD bgColor=#e6efff align=left>Interest expense and financing fees </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff
    width="1%" align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff width="12%"
    align=right>(1,095</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff
    width="2%" align=left>) </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff
    width="1%" align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff width="12%"
    align=right>(6,499</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff
    width="2%" align=left>) </TD></TR>
  <TR vAlign=top>
    <TD align=left>&nbsp; </TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid"  width="1%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" width="12%" align=right>4,998
    </TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid"  width="2%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid"  width="1%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" width="12%"
    align=right>(3,260</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid"  width="2%"
    align=left>) </TD></TR></TABLE>
<P align=justify>Investment income was $1,100,000 for 2009 compared to
$3,039,000 in 2008. The decrease in investment income is due to a combination of
factors, including less funds being available for investment and lower yields on
investments. As a result of significant volatility in the credit markets, we
opted to mitigate credit risk by investing the majority of our cash and cash
equivalents in U.S. and Canadian government treasury bills. These treasuries are
considered to be lower risk and as a result have lower yields.</P>
<P align=justify>Foreign exchange gain for 2009 was $4,993,000 compared to
$200,000 in 2008. With the change in our functional currency from Canadian
dollars to U.S. dollars effective January 1, 2009, our main exposure to foreign
exchange risk is related to our net monetary assets denominated in Canadian
dollars and Argentinean pesos. The foreign exchange gain in 2009 reflects the
strengthening of the Canadian dollar and Argentinean peso against the U.S.
dollar. In 2008, our functional currency was the Canadian dollar and the foreign exchange gain reflects the strengthening of the U.S.
dollar versus the Canadian dollar on our net monetary assets denominated in U.S.
dollars.</P>
<P align=right>9</P>
<HR style="PAGE-BREAK-AFTER: always" align=center color=black SIZE=5
width="100%" noShade>
<!--$$/page=--><A name=page_10></A>
<P align=justify>We incurred interest and financing fees of $1,095,000 in 2009
compared to $6,499,000 in 2008. Interest and accretion cost of $11,808,000
related to our convertible notes was capitalized to construction in progress
until the start of production on December 1, 2009. During 2008, we recorded
$2,726,000 of interest and accretion expense to net loss and $3,773,000 of
financing fees related to our convertible notes financing.</P>
<TABLE
style="BORDER-COLOR: black; BORDER-COLLAPSE: collapse; FONT-SIZE: 10pt; "
border=0 cellSpacing=0 cellPadding=0 width="100%">

  <TR vAlign=top>
    <TD align=left>&nbsp; </TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="12%" align=right><B>2009</B> </TD>
    <TD  width="2%" align=left>&nbsp;</TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="12%" align=right><B>2008</B> </TD>
    <TD  width="2%" align=left>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left>&nbsp; </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="1%"
    align=left><B></B></TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="12%"
      align=right><B>$(000</B></TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="2%"
    align=left><B>)</B> </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="1%"
    align=left><B></B></TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="12%"
      align=right><B>$(000</B></TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="2%"
    align=left><B>)</B> </TD></TR>
  <TR>
    <TD>&nbsp; </TD>
    <TD  width="1%">&nbsp;</TD>
    <TD width="12%">&nbsp; </TD>
    <TD  width="2%">&nbsp;</TD>
    <TD  width="1%">&nbsp;</TD>
    <TD width="12%">&nbsp; </TD>
    <TD  width="2%">&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD bgColor=#e6efff align=left>Gain (loss) on sale of marketable
      securities and other investments </TD>
    <TD bgColor=#e6efff  width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="12%" align=right>(1,279</TD>
    <TD bgColor=#e6efff  width="2%" align=left>) </TD>
    <TD bgColor=#e6efff  width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="12%" align=right>2,090 </TD>
    <TD bgColor=#e6efff  width="2%" align=left>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left>Unrealized gain on financial instruments held-for-trading
    </TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="12%" align=right>412 </TD>
    <TD  width="2%" align=left>&nbsp;</TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="12%" align=right>114 </TD>
    <TD  width="2%" align=left>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD bgColor=#e6efff align=left>Gain on sale of mineral property </TD>
    <TD bgColor=#e6efff  width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="12%" align=right>167 </TD>
    <TD bgColor=#e6efff  width="2%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff  width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="12%" align=right>31,463 </TD>
    <TD bgColor=#e6efff  width="2%" align=left>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left>Write-down of marketable securities and other investments
    </TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="12%" align=right>534 </TD>
    <TD  width="2%" align=left>&nbsp;</TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="12%" align=right>(22,794</TD>
    <TD  width="2%" align=left>) </TD></TR>
  <TR vAlign=top>
    <TD bgColor=#e6efff align=left>Write-down of convertible debenture </TD>
    <TD bgColor=#e6efff  width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="12%" align=right>(2,002</TD>
    <TD bgColor=#e6efff  width="2%" align=left>) </TD>
    <TD bgColor=#e6efff  width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="12%" align=right>- </TD>
    <TD bgColor=#e6efff  width="2%" align=left>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left>Write down of mineral property </TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="12%" align=right>(377</TD>
    <TD  width="2%" align=left>) </TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="12%" align=right>- </TD>
    <TD  width="2%" align=left>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD bgColor=#e6efff align=left>Gain on sale of silver bullion </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff
    width="1%" align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff width="12%"
    align=right>- </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff
    width="2%" align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff
    width="1%" align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff width="12%"
    align=right>23,699 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff
    width="2%" align=left>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left>&nbsp; </TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid"  width="1%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" width="12%"
    align=right>(2,545</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid"  width="2%"
    align=left>) </TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid"  width="1%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" width="12%"
      align=right>34,572 </TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid"  width="2%"
    align=left>&nbsp;</TD></TR></TABLE>
<P align=justify>We recorded a loss on sale of marketable securities and other
investments of $1,279,000 in 2009 compared to a gain of $2,090,000 in 2008. In
November 2009, we sold our Class A-1 and A-2 asset-backed commercial paper
investments for net proceeds of $20,107,000 (C$21,215,000) resulting in a loss
on sale of $3,103,000. We also recorded a gain on sale of certain marketable
securities of $1,824,000 in 2009 compared to a gain of $2,090,000 in 2008.</P>
<P align=justify>The unrealized gain on financial instruments held-for-trading
during 2009 was $412,000 compared to $114,000 in 2008. The unrealized gain
during 2009 was the result of revaluation of the conversion feature on our
convertible debenture. The gain in 2008 consisted primarily of $1,429,000 gain
on mark-to-market adjustment of foreign exchange options net of $1,389,000 loss
on revaluation of the conversion feature on our convertible debenture.</P>
<P align=justify>We recorded a gain on sale of mineral properties of $167,000 in
2009 compared to $31,463,000 in 2008. The gain in 2009 was the result of the
sale of the San Juan property. The gain in 2008 was the result of the sale of
the Shafter Silver Project in Presidio County, Texas, to Aurcana. The sale
resulted in a gain on sale of mineral property of $31,463,000 (after-tax gain of
$18,120,000).</P>
<P align=justify>Write-down of marketable securities and other investments, net
of interest received resulted in income of $534,000 in 2009 compared to a
write-down of $22,794,000 in 2008. The write-down of marketable securities and
other investments in 2009 was the result of writing off the carrying value of
our Class A-1 and Class A-2 asset backed commercial paper , net of interest and
principal repayments received. This compares to a write-down of our other
investments of $17,903,000 in 2008. In 2008, we also recorded a write-down of
available-for-sale marketable securities of $4,891,000 related to a decline in
fair values determined to be other-than-temporary.</P>
<P align=justify>During 2009, we recorded a $2,002,000 write-down of our accrued
interest and convertible debenture from Aurcana to reflect the fair value of the
restructured debenture.</P>
<P align=justify>We recorded a write-down of mineral properties of $377,000
during 2009 as we allowed certain of our mineral rights to lapse.</P>
<P align=right>10</P>
<HR style="PAGE-BREAK-AFTER: always" align=center color=black SIZE=5
width="100%" noShade>
<!--$$/page=--><A name=page_11></A>
<P align=justify>In March 2008, we sold our silver bullion for cash proceeds of
approximately $39,648,000, resulting in an after-tax gain of $23,699,000. No tax
expense was recorded as we had sufficient tax pools to offset the taxable gain
on the sale.</P>
<TABLE
style="BORDER-COLOR: black; BORDER-COLLAPSE: collapse; FONT-SIZE: 10pt; "
border=0 cellSpacing=0 cellPadding=0 width="100%">

  <TR vAlign=top>
    <TD align=left>&nbsp; </TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="12%" align=right><B>2009</B> </TD>
    <TD  width="2%" align=left>&nbsp;</TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="12%" align=right><B>2008</B> </TD>
    <TD  width="2%" align=left>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left>&nbsp; </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="1%"
    align=left><B></B></TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="12%"
      align=right><B>$(000</B></TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="2%"
    align=left><B>)</B> </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="1%"
    align=left><B></B></TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="12%"
      align=right><B>$(000</B></TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="2%"
    align=left><B>)</B> </TD></TR>
  <TR>
    <TD>&nbsp; </TD>
    <TD  width="1%">&nbsp;</TD>
    <TD width="12%">&nbsp; </TD>
    <TD  width="2%">&nbsp;</TD>
    <TD  width="1%">&nbsp;</TD>
    <TD width="12%">&nbsp; </TD>
    <TD  width="2%">&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD bgColor=#e6efff align=left>Current income tax expense </TD>
    <TD bgColor=#e6efff  width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="12%" align=right>2,221 </TD>
    <TD bgColor=#e6efff  width="2%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff  width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="12%" align=right>(14,575</TD>
    <TD bgColor=#e6efff  width="2%" align=left>) </TD></TR>
  <TR vAlign=top>
    <TD align=left>Future income tax expense </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="1%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="12%" align=right>2,087
    </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="2%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="1%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="12%"
    align=right>(3,393</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="2%"
    align=left>) </TD></TR>
  <TR vAlign=top>
    <TD bgColor=#e6efff align=left>&nbsp; </TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" bgColor=#e6efff
    width="1%" align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" bgColor=#e6efff width="12%"
    align=right>4,308 </TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" bgColor=#e6efff
    width="2%" align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" bgColor=#e6efff
    width="1%" align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" bgColor=#e6efff width="12%"
    align=right>(17,968</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" bgColor=#e6efff
    width="2%" align=left>) </TD></TR></TABLE>
<P align=justify>For the year ended December 31, 2009, we recorded a current
income tax recovery of $2,221,000 compared to an expense of $14,575,000 in 2008.
The majority of the income tax expense recorded in 2008 relates to the sale of
the Shafter Silver project.</P>
<P align=justify>Future income tax recovery during 2009 was $2,087,000 compared
to an expense of $3,393,000 in 2008. During 2009, we recorded a future income
tax recovery of $1,053,000 resulting from a current period loss from our
Pirquitas operations, which can be used against future taxable income in
Argentina. We also recorded a future income tax recovery of $1,034,000 (2008 &#150;
expense of $3,393,000), which reflects the tax effects of unrealized gains
(losses) on our marketable securities during the respective years.</P>
<P align=justify><B>Selected Quarterly Data</B></P>
<TABLE
style="BORDER-COLOR: black; BORDER-COLLAPSE: collapse; FONT-SIZE: 8pt; "
border=0 cellSpacing=0 cellPadding=0 width="100%">

  <TR vAlign=top>
    <TD align=left >&nbsp; </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="1%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="37%" colSpan=10
    align=center><B>2010</B> </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="2%"
    align=center>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="1%"
    align=center>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="37%" colSpan=10
    align=center><B>2009</B> </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="2%"
    align=left>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left >&nbsp; </TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="7%" align=right><B>31-Dec</B> </TD>
    <TD  width="2%" align=left>&nbsp;</TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="7%" align=right><B>30-Sep</B> </TD>
    <TD  width="2%" align=left>&nbsp;</TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="7%" align=right><B>30-Jun</B> </TD>
    <TD  width="2%" align=left>&nbsp;</TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="7%" align=right><B>31-Mar</B> </TD>
    <TD  width="2%" align=left>&nbsp;</TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="7%" align=right><B>31-Dec</B> </TD>
    <TD  width="2%" align=left>&nbsp;</TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="7%" align=right><B>30-Sep</B> </TD>
    <TD  width="2%" align=left>&nbsp;</TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="7%" align=right><B>30-Jun</B> </TD>
    <TD  width="2%" align=left>&nbsp;</TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="7%" align=right><B>31-Mar</B> </TD>
    <TD  width="2%" align=left>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left >&nbsp; </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="1%"
    align=left><B></B></TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="7%"
      align=right><B>$(000</B></TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="2%"
    align=left><B>)</B> </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="1%"
    align=left><B></B></TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="7%"
      align=right><B>$(000</B></TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="2%"
    align=left><B>)</B> </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="1%"
    align=left><B></B></TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="7%"
      align=right><B>$(000</B></TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="2%"
    align=left><B>)</B> </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="1%"
    align=left><B></B></TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="7%"
      align=right><B>$(000</B></TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="2%"
    align=left><B>)</B> </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="1%"
    align=left><B></B></TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="7%"
      align=right><B>$(000</B></TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="2%"
    align=left><B>)</B> </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="1%"
    align=left><B></B></TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="7%"
      align=right><B>$(000</B></TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="2%"
    align=left><B>)</B> </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="1%"
    align=left><B></B></TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="7%"
      align=right><B>$(000</B></TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="2%"
    align=left><B>)</B> </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="1%"
    align=left><B></B></TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="7%"
      align=right><B>$(000</B></TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="2%"
    align=left><B>)</B> </TD></TR>
  <TR vAlign=top>
    <TD bgColor=#e6efff align=left >Revenue </TD>
    <TD bgColor=#e6efff  width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="7%" align=right>45,077 </TD>
    <TD bgColor=#e6efff  width="2%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff  width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="7%" align=right>41,557 </TD>
    <TD bgColor=#e6efff  width="2%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff  width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="7%" align=right>14,091 </TD>
    <TD bgColor=#e6efff  width="2%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff  width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="7%" align=right>11,531 </TD>
    <TD bgColor=#e6efff  width="2%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff  width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="7%" align=right>5,442 </TD>
    <TD bgColor=#e6efff  width="2%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff  width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="7%" align=right>- </TD>
    <TD bgColor=#e6efff  width="2%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff  width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="7%" align=right>- </TD>
    <TD bgColor=#e6efff  width="2%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff  width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="7%" align=right>- </TD>
    <TD bgColor=#e6efff  width="2%" align=left>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left >Earnings (loss) from mine operations </TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="7%" align=right>23,949 </TD>
    <TD  width="2%" align=left>&nbsp;</TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="7%" align=right>9,950 </TD>
    <TD  width="2%" align=left>&nbsp;</TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="7%" align=right>(1,575</TD>
    <TD  width="2%" align=left>) </TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="7%" align=right>(16,704</TD>
    <TD  width="2%" align=left>) </TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="7%" align=right>(2,523</TD>
    <TD  width="2%" align=left>) </TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="7%" align=right>- </TD>
    <TD  width="2%" align=left>&nbsp;</TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="7%" align=right>- </TD>
    <TD  width="2%" align=left>&nbsp;</TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="7%" align=right>- </TD>
    <TD  width="2%" align=left>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD bgColor=#e6efff align=left >Gain on sale of mineral
      properties </TD>
    <TD bgColor=#e6efff  width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="7%" align=right>388,936 </TD>
    <TD bgColor=#e6efff  width="2%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff  width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="7%" align=right>(65</TD>
    <TD bgColor=#e6efff  width="2%" align=left>) </TD>
    <TD bgColor=#e6efff  width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="7%" align=right>- </TD>
    <TD bgColor=#e6efff  width="2%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff  width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="7%" align=right>13,138 </TD>
    <TD bgColor=#e6efff  width="2%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff  width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="7%" align=right>- </TD>
    <TD bgColor=#e6efff  width="2%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff  width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="7%" align=right>- </TD>
    <TD bgColor=#e6efff  width="2%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff  width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="7%" align=right>167 </TD>
    <TD bgColor=#e6efff  width="2%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff  width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="7%" align=right>- </TD>
    <TD bgColor=#e6efff  width="2%" align=left>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left >Earnings (loss) </TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="7%" align=right>376,575 </TD>
    <TD  width="2%" align=left>&nbsp;</TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="7%" align=right>(7,500</TD>
    <TD  width="2%" align=left>) </TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="7%" align=right>(15,199</TD>
    <TD  width="2%" align=left>) </TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="7%" align=right>(7,637</TD>
    <TD  width="2%" align=left>) </TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="7%" align=right>(9,126</TD>
    <TD  width="2%" align=left>) </TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="7%" align=right>(95</TD>
    <TD  width="2%" align=left>) </TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="7%" align=right>(1,374</TD>
    <TD  width="2%" align=left>) </TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="7%" align=right>(2,598</TD>
    <TD  width="2%" align=left>) </TD></TR>
  <TR vAlign=top>
    <TD bgColor=#e6efff align=left >Basic earnings (loss) per
      share </TD>
    <TD bgColor=#e6efff  width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="7%" align=right>4.75 </TD>
    <TD bgColor=#e6efff  width="2%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff  width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="7%" align=right>(0.10</TD>
    <TD bgColor=#e6efff  width="2%" align=left>) </TD>
    <TD bgColor=#e6efff  width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="7%" align=right>(0.19</TD>
    <TD bgColor=#e6efff  width="2%" align=left>) </TD>
    <TD bgColor=#e6efff  width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="7%" align=right>(0.10</TD>
    <TD bgColor=#e6efff  width="2%" align=left>) </TD>
    <TD bgColor=#e6efff  width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="7%" align=right>(0.13</TD>
    <TD bgColor=#e6efff  width="2%" align=left>) </TD>
    <TD bgColor=#e6efff  width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="7%" align=right>(0.00</TD>
    <TD bgColor=#e6efff  width="2%" align=left>) </TD>
    <TD bgColor=#e6efff  width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="7%" align=right>(0.02</TD>
    <TD bgColor=#e6efff  width="2%" align=left>) </TD>
    <TD bgColor=#e6efff  width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="7%" align=right>(0.04</TD>
    <TD bgColor=#e6efff  width="2%" align=left>) </TD></TR>
  <TR vAlign=top>
    <TD align=left >Dliuted earnings (loss) per share </TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="7%" align=right>4.72 </TD>
    <TD  width="2%" align=left>&nbsp;</TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="7%" align=right>(0.10</TD>
    <TD  width="2%" align=left>) </TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="7%" align=right>(0.19</TD>
    <TD  width="2%" align=left>) </TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="7%" align=right>(0.10</TD>
    <TD  width="2%" align=left>) </TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="7%" align=right>(0.13</TD>
    <TD  width="2%" align=left>) </TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="7%" align=right>(0.00</TD>
    <TD  width="2%" align=left>) </TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="7%" align=right>(0.02</TD>
    <TD  width="2%" align=left>) </TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="7%" align=right>(0.04</TD>
    <TD  width="2%" align=left>) </TD></TR></TABLE>
<P align=justify>Sales of silver concentrate commenced in December 2009
resulting in revenues of $5,442,000 being recorded in the fourth quarter of
2009. For the year ended December 31, 2010 quarterly revenues have gradually
increased as the mine has increased production, with noticeable increases in
output in the third and fourth quarters as well as a significant increase in
silver prices in the fourth quarter of 2010. </P>
<P align=justify>The related cost of sales was $7,965,000 for the month ended
December 31, 2009 and mine operating margins have consistently been increasing
through the year ended December 31, 2010 which resulted in positive earnings
from mine operations for third and fourth quarters.</P>
<P align=justify>The main factor impacting earnings (loss) each quarter has been
significant gains on disposals of mineral properties; we sold Silvertip in the
first quarter of 2010, and Snowfield and Brucejack in the fourth quarter of
2010.</P>
<P align=justify>We sold our Silvertip property in February 2010 for total
consideration of $14,957,000 resulting in a gain of $13,073,000, and sold our
Snowfield and Brucejack properties in December 2010 for a gain of
$388,761,000.</P>
<P align=right>11</P>
<HR style="PAGE-BREAK-AFTER: always" align=center color=black SIZE=5
width="100%" noShade>
<!--$$/page=--><A name=page_12></A>
<P align=justify>We also sold marketable securities during the first and third
quarters of 2010 for proceeds of $2,437,000 and $8,578,000 resulting in gains of
$2,373,000 and $741,000, respectively. Interest and accretion expense was
consistent each quarter through 2010 but significantly in excess of 2009 due to
the fact that most had been capitalised in 2009.</P>
<P align=justify><B>Fourth Quarter Results</B></P>
<P align=justify>During the fourth quarter of 2010, we recorded net earnings of
$376,575,000 ($4.75 per share) compared to a net loss of $9,126,000 ($0.13 per
share) for the same quarter of 2009. The net earnings is primarily the result of
the significant gain on sale of the Snowfield and Brucejack properties of
$388,761,000, but also supported by earnings from mine operations of $23,949,000
(2009 &#150; loss of $2,523,000). </P>
<P align=justify>General and administrative expenditure was $6,819,000 (2009 -
$2,909,000) due to an increase in staff, bonus payments and termination
benefits. In the fourth quarter of 2009 we recorded a loss on the sale of other
investments of $3,103,000, and a write-down of other investments of $2,113,000,
with no corresponding recognition in 2010. Non-cash stock based compensation of
$2,521,000 (2009 - $1,549,000) was consistent with the trend throughout 2010,
and we recorded current and future income tax expense of $29,028,000 (2009 &#150;
expense of $3,341,000) which was due largely to the sale of the Snowfield and
Brucejack properties in the fourth quarter.</P>
<P align=justify>During the fourth quarter of 2010 we spent $7,633,000 (2009 -
$5,669,000) on total sustaining capital expenditures on the Pirquitas project.
Other significant mineral property expenditures include $1,811,000 (2009
- -$752,000; 2008 - $3,576,000) for Pitarrilla, $781,000 (2009 - $339,000; 2008 -
$1,912,000) for Diablillos, $781,000 (2009 - $1,677,000; 2008 - $1,698,000) for
San Luis and $1,509,000 (2009 -$466,000; 2008 - $nil) for Snowfield and
Brucejack.</P>
<P align=justify><B>FINANCIAL POSITION AND LIQUIDITY</B></P>
<P align=justify>At December 31, 2010, we held $232,311,000 (2009 - $26,659,000)
in cash and cash equivalents and $33,465,000 (2009 - $17,863,000) in marketable
securities. Working capital at December 31, 2010 was $303,844,000 (2009 -
$24,515,000).</P>
<P align=justify>The increase in cash from 2009 to 2010 is mainly attributed to
cash inflows of:</P>
<UL style="TEXT-ALIGN: justify">
  <LI>$204,491,000 proceeds from the sale of mineral properties, net of costs;
  <LI>$107,758,000 proceeds from equity financings, net of costs;
  <LI>$95,800,000 cash receipts from sales;
  <LI>$16,318,000 proceeds from share option exercises; and
  <LI>$11,015,000 proceeds from the sale of marketable securities. </LI></UL>
<P align=justify>Offset by cash outflows of;</P>
<UL style="TEXT-ALIGN: justify">
  <LI>$122,820,000 spent on exploration properties, property plant and equipment
  and construction payables (including VAT);
  <LI>$102,260,000 payments to suppliers and employees for goods and services;
  and
  <LI>$6,210,000 interest paid on long term notes </LI></UL>
<P align=right>12</P>
<HR style="PAGE-BREAK-AFTER: always" align=center color=black SIZE=5
width="100%" noShade>
<!--$$/page=--><A name=page_13></A>
<P align=justify><B>Summary Cash Flow Information</B></P>
<TABLE
style="BORDER-COLOR: black; BORDER-COLLAPSE: collapse; FONT-SIZE: 10pt; "
border=0 cellSpacing=0 cellPadding=0 width="100%">

  <TR vAlign=top>
    <TD align=left valign="bottom">&nbsp; </TD>
    <TD  width="1%" align=left valign="bottom">&nbsp;</TD>
    <TD width="10%" align=right valign="bottom"><B>2010</B> </TD>
    <TD  width="2%" align=left valign="bottom">&nbsp;</TD>
    <TD  width="1%" align=left valign="bottom">&nbsp;</TD>
    <TD width="10%" align=right valign="bottom"><B>2009</B> </TD>
    <TD  width="2%" align=left valign="bottom">&nbsp;</TD>
    <TD  width="1%" align=left valign="bottom">&nbsp;</TD>
    <TD width="10%" align=right valign="bottom"><B>2008</B> </TD>
    <TD  width="2%" align=left valign="bottom">&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left valign="bottom">&nbsp; </TD>
    <TD  width="1%"
    align=left valign="bottom" style="BORDER-BOTTOM: #000000 1px solid"><B></B></TD>
    <TD width="10%"
      align=right valign="bottom" style="BORDER-BOTTOM: #000000 1px solid"><B>$(000</B></TD>
    <TD  width="2%"
    align=left valign="bottom" style="BORDER-BOTTOM: #000000 1px solid"><B>)</B> </TD>
    <TD  width="1%"
    align=left valign="bottom" style="BORDER-BOTTOM: #000000 1px solid"><B></B></TD>
    <TD width="10%"
      align=right valign="bottom" style="BORDER-BOTTOM: #000000 1px solid"><B>$(000</B></TD>
    <TD  width="2%"
    align=left valign="bottom" style="BORDER-BOTTOM: #000000 1px solid"><B>)</B> </TD>
    <TD  width="1%"
    align=left valign="bottom" style="BORDER-BOTTOM: #000000 1px solid"><B></B></TD>
    <TD width="10%"
      align=right valign="bottom" style="BORDER-BOTTOM: #000000 1px solid"><B>$(000</B></TD>
    <TD  width="2%"
    align=left valign="bottom" style="BORDER-BOTTOM: #000000 1px solid"><B>)</B> </TD>
  </TR>
  <TR>
    <TD valign="bottom">&nbsp; </TD>
    <TD  width="1%" valign="bottom">&nbsp;</TD>
    <TD width="10%" valign="bottom">&nbsp; </TD>
    <TD  width="2%" valign="bottom">&nbsp;</TD>
    <TD  width="1%" valign="bottom">&nbsp;</TD>
    <TD width="10%" valign="bottom">&nbsp; </TD>
    <TD  width="2%" valign="bottom">&nbsp;</TD>
    <TD  width="1%" valign="bottom">&nbsp;</TD>
    <TD width="10%" valign="bottom">&nbsp; </TD>
    <TD  width="2%" valign="bottom">&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left valign="bottom" bgColor=#e6efff>Cash (used in) operating activities </TD>
    <TD  width="1%" align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD width="10%" align=right valign="bottom" bgColor=#e6efff><B>(11,110</B></TD>
    <TD  width="2%" align=left valign="bottom" bgColor=#e6efff><B>)</B> </TD>
    <TD  width="1%" align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD width="10%" align=right valign="bottom" bgColor=#e6efff>(39,943</TD>
    <TD  width="2%" align=left valign="bottom" bgColor=#e6efff>) </TD>
    <TD  width="1%" align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD width="10%" align=right valign="bottom" bgColor=#e6efff>(19,093</TD>
    <TD  width="2%" align=left valign="bottom" bgColor=#e6efff>) </TD>
  </TR>
  <TR vAlign=top>
    <TD align=left valign="bottom">Cash generated by financing activities </TD>
    <TD  width="1%" align=left valign="bottom">&nbsp;</TD>
    <TD width="10%" align=right valign="bottom"><B>124,076</B> </TD>
    <TD  width="2%" align=left valign="bottom">&nbsp;</TD>
    <TD  width="1%" align=left valign="bottom">&nbsp;</TD>
    <TD width="10%" align=right valign="bottom">146,413 </TD>
    <TD  width="2%" align=left valign="bottom">&nbsp;</TD>
    <TD  width="1%" align=left valign="bottom">&nbsp;</TD>
    <TD width="10%" align=right valign="bottom">138,719 </TD>
    <TD  width="2%" align=left valign="bottom">&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left valign="bottom" bgColor=#e6efff>Cash generated by (used in) investing
      activities </TD>
    <TD  width="1%" align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD width="10%" align=right valign="bottom" bgColor=#e6efff><B>92,686</B> </TD>
    <TD  width="2%" align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD  width="1%" align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD width="10%" align=right valign="bottom" bgColor=#e6efff>(151,824</TD>
    <TD  width="2%" align=left valign="bottom" bgColor=#e6efff>) </TD>
    <TD  width="1%" align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD width="10%" align=right valign="bottom" bgColor=#e6efff>(129,213</TD>
    <TD  width="2%" align=left valign="bottom" bgColor=#e6efff>) </TD>
  </TR>
  <TR vAlign=top>
    <TD align=left valign="bottom">Cash balance, beginning of year </TD>
    <TD  width="1%"
    align=left valign="bottom" style="BORDER-BOTTOM: #000000 1px solid">&nbsp;</TD>
    <TD width="10%"
      align=right valign="bottom" style="BORDER-BOTTOM: #000000 1px solid"><B>26,659</B> </TD>
    <TD  width="2%"
    align=left valign="bottom" style="BORDER-BOTTOM: #000000 1px solid">&nbsp;</TD>
    <TD  width="1%"
    align=left valign="bottom" style="BORDER-BOTTOM: #000000 1px solid">&nbsp;</TD>
    <TD width="10%"
      align=right valign="bottom" style="BORDER-BOTTOM: #000000 1px solid">72,013 </TD>
    <TD  width="2%"
    align=left valign="bottom" style="BORDER-BOTTOM: #000000 1px solid">&nbsp;</TD>
    <TD  width="1%"
    align=left valign="bottom" style="BORDER-BOTTOM: #000000 1px solid">&nbsp;</TD>
    <TD width="10%"
      align=right valign="bottom" style="BORDER-BOTTOM: #000000 1px solid">81,600 </TD>
    <TD  width="2%"
    align=left valign="bottom" style="BORDER-BOTTOM: #000000 1px solid">&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left valign="bottom" bgColor=#e6efff>Cash balance, end of year </TD>
    <TD
    width="1%" align=left valign="bottom" bgColor=#e6efff style="BORDER-BOTTOM: #000000 2px solid">&nbsp;</TD>
    <TD width="10%"
    align=right valign="bottom" bgColor=#e6efff style="BORDER-BOTTOM: #000000 2px solid"><B>232,311</B> </TD>
    <TD
    width="2%" align=left valign="bottom" bgColor=#e6efff style="BORDER-BOTTOM: #000000 2px solid">&nbsp;</TD>
    <TD
    width="1%" align=left valign="bottom" bgColor=#e6efff style="BORDER-BOTTOM: #000000 2px solid">&nbsp;</TD>
    <TD width="10%"
    align=right valign="bottom" bgColor=#e6efff style="BORDER-BOTTOM: #000000 2px solid">26,659 </TD>
    <TD
    width="2%" align=left valign="bottom" bgColor=#e6efff style="BORDER-BOTTOM: #000000 2px solid">&nbsp;</TD>
    <TD
    width="1%" align=left valign="bottom" bgColor=#e6efff style="BORDER-BOTTOM: #000000 2px solid">&nbsp;</TD>
    <TD width="10%"
    align=right valign="bottom" bgColor=#e6efff style="BORDER-BOTTOM: #000000 2px solid">72,013 </TD>
    <TD
    width="2%" align=left valign="bottom" bgColor=#e6efff style="BORDER-BOTTOM: #000000 2px solid">&nbsp;</TD>
  </TR></TABLE>
<P align=justify><B>Operating Activities</B></P>
<P align=justify>At December 31, 2010, we had cash resources of $232,311,000
compared to $26,659,000 in 2009 and $72,013,000 in 2008.</P>
<P align=justify>Cash flow used in operations decreased $28,833,000 from
$39,943,000 in 2009 to $11,110,000 in 2010. We achieved positive cash flows from
operations for the year ended December 31, 2010, in particular during the third
and fourth quarters due to increasing production and concentrate sales from
Pirquitas. Production costs reduced through the course of the year due to
continued optimization of production, which along with improved silver prices
enabled the mine to generate positive cash flows. This was in part offset by
higher administration and corporate costs due to recruiting additional
employees, termination payments and bonuses paid to officers and employees
during the year.</P>
<P align=justify>The increase in cash flow used in operations from 2008 to 2009
was mainly attributed to higher administration and corporate costs as we
continued the development and construction of the Pirquitas mine. Also, we
incurred a loss from mine operations during December 2009 after the commencement
of production.</P>
<P align=justify><B>Financing Activities</B></P>
<TABLE
style="BORDER-COLOR: black; BORDER-COLLAPSE: collapse; FONT-SIZE: 10pt; "
border=0 cellSpacing=0 cellPadding=0 width="100%">

  <TR vAlign=top>
    <TD align=left valign="bottom">&nbsp; </TD>
    <TD  width="1%" align=left valign="bottom">&nbsp;</TD>
    <TD width="10%" align=right valign="bottom"><B>2010</B> </TD>
    <TD  width="2%" align=left valign="bottom">&nbsp;</TD>
    <TD  width="1%" align=left valign="bottom">&nbsp;</TD>
    <TD width="10%" align=right valign="bottom"><B>2009</B> </TD>
    <TD  width="2%" align=left valign="bottom">&nbsp;</TD>
    <TD  width="1%" align=left valign="bottom">&nbsp;</TD>
    <TD width="10%" align=right valign="bottom"><B>2008</B> </TD>
    <TD  width="2%" align=left valign="bottom">&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left valign="bottom">&nbsp; </TD>
    <TD  width="1%"
    align=left valign="bottom" style="BORDER-BOTTOM: #000000 1px solid"><B></B></TD>
    <TD width="10%"
      align=right valign="bottom" style="BORDER-BOTTOM: #000000 1px solid"><B>$(000</B></TD>
    <TD  width="2%"
    align=left valign="bottom" style="BORDER-BOTTOM: #000000 1px solid"><B>)</B> </TD>
    <TD  width="1%"
    align=left valign="bottom" style="BORDER-BOTTOM: #000000 1px solid"><B></B></TD>
    <TD width="10%"
      align=right valign="bottom" style="BORDER-BOTTOM: #000000 1px solid"><B>$(000</B></TD>
    <TD  width="2%"
    align=left valign="bottom" style="BORDER-BOTTOM: #000000 1px solid"><B>)</B> </TD>
    <TD  width="1%"
    align=left valign="bottom" style="BORDER-BOTTOM: #000000 1px solid"><B></B></TD>
    <TD width="10%"
      align=right valign="bottom" style="BORDER-BOTTOM: #000000 1px solid"><B>$(000</B></TD>
    <TD  width="2%"
    align=left valign="bottom" style="BORDER-BOTTOM: #000000 1px solid"><B>)</B> </TD>
  </TR>
  <TR>
    <TD valign="bottom">&nbsp; </TD>
    <TD  width="1%" valign="bottom">&nbsp;</TD>
    <TD width="10%" valign="bottom">&nbsp; </TD>
    <TD  width="2%" valign="bottom">&nbsp;</TD>
    <TD  width="1%" valign="bottom">&nbsp;</TD>
    <TD width="10%" valign="bottom">&nbsp; </TD>
    <TD  width="2%" valign="bottom">&nbsp;</TD>
    <TD  width="1%" valign="bottom">&nbsp;</TD>
    <TD width="10%" valign="bottom">&nbsp; </TD>
    <TD  width="2%" valign="bottom">&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left valign="bottom" bgColor=#e6efff>Shares issued for cash </TD>
    <TD  width="1%" align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD width="10%" align=right valign="bottom" bgColor=#e6efff><B>130,707</B> </TD>
    <TD  width="2%" align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD  width="1%" align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD width="10%" align=right valign="bottom" bgColor=#e6efff>155,578 </TD>
    <TD  width="2%" align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD  width="1%" align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD width="10%" align=right valign="bottom" bgColor=#e6efff>2,192 </TD>
    <TD  width="2%" align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left valign="bottom">Share issue costs </TD>
    <TD  width="1%" align=left valign="bottom">&nbsp;</TD>
    <TD width="10%" align=right valign="bottom"><B>(6,631</B></TD>
    <TD  width="2%" align=left valign="bottom"><B>)</B> </TD>
    <TD  width="1%" align=left valign="bottom">&nbsp;</TD>
    <TD width="10%" align=right valign="bottom">(9,165</TD>
    <TD  width="2%" align=left valign="bottom">) </TD>
    <TD  width="1%" align=left valign="bottom">&nbsp;</TD>
    <TD width="10%" align=right valign="bottom">- </TD>
    <TD  width="2%" align=left valign="bottom">&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left valign="bottom" bgColor=#e6efff>Proceeds from issuance of convertible notes    </TD>
    <TD  width="1%" align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD width="10%" align=right valign="bottom" bgColor=#e6efff><B>-</B> </TD>
    <TD  width="2%" align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD  width="1%" align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD width="10%" align=right valign="bottom" bgColor=#e6efff>- </TD>
    <TD  width="2%" align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD  width="1%" align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD width="10%" align=right valign="bottom" bgColor=#e6efff>138,000 </TD>
    <TD  width="2%" align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left valign="bottom">Financing costs related to equity portion of convertible
      notes financing </TD>
    <TD  width="1%"
    align=left valign="bottom" style="BORDER-BOTTOM: #000000 1px solid">&nbsp;</TD>
    <TD width="10%"
      align=right valign="bottom" style="BORDER-BOTTOM: #000000 1px solid"><B>-</B> </TD>
    <TD  width="2%"
    align=left valign="bottom" style="BORDER-BOTTOM: #000000 1px solid">&nbsp;</TD>
    <TD  width="1%"
    align=left valign="bottom" style="BORDER-BOTTOM: #000000 1px solid">&nbsp;</TD>
    <TD width="10%" align=right valign="bottom" style="BORDER-BOTTOM: #000000 1px solid">- </TD>
    <TD  width="2%"
    align=left valign="bottom" style="BORDER-BOTTOM: #000000 1px solid">&nbsp;</TD>
    <TD  width="1%"
    align=left valign="bottom" style="BORDER-BOTTOM: #000000 1px solid">&nbsp;</TD>
    <TD width="10%"
    align=right valign="bottom" style="BORDER-BOTTOM: #000000 1px solid">(1,473</TD>
    <TD  width="2%"
    align=left valign="bottom" style="BORDER-BOTTOM: #000000 1px solid">) </TD>
  </TR>
  <TR vAlign=top>
    <TD align=left valign="bottom" bgColor=#e6efff>Cash generated by financing activities </TD>
    <TD
    width="1%" align=left valign="bottom" bgColor=#e6efff style="BORDER-BOTTOM: #000000 2px solid">&nbsp;</TD>
    <TD width="10%"
    align=right valign="bottom" bgColor=#e6efff style="BORDER-BOTTOM: #000000 2px solid"><B>124,076</B> </TD>
    <TD
    width="2%" align=left valign="bottom" bgColor=#e6efff style="BORDER-BOTTOM: #000000 2px solid">&nbsp;</TD>
    <TD
    width="1%" align=left valign="bottom" bgColor=#e6efff style="BORDER-BOTTOM: #000000 2px solid">&nbsp;</TD>
    <TD width="10%"
    align=right valign="bottom" bgColor=#e6efff style="BORDER-BOTTOM: #000000 2px solid">146,413 </TD>
    <TD
    width="2%" align=left valign="bottom" bgColor=#e6efff style="BORDER-BOTTOM: #000000 2px solid">&nbsp;</TD>
    <TD
    width="1%" align=left valign="bottom" bgColor=#e6efff style="BORDER-BOTTOM: #000000 2px solid">&nbsp;</TD>
    <TD width="10%"
    align=right valign="bottom" bgColor=#e6efff style="BORDER-BOTTOM: #000000 2px solid">138,719 </TD>
    <TD
    width="2%" align=left valign="bottom" bgColor=#e6efff style="BORDER-BOTTOM: #000000 2px solid">&nbsp;</TD>
  </TR></TABLE>
<P align=justify>We raised a total of $124,076,000 in 2010 through financing
activities as compared to $146,413,000 in 2009 and $138,719,000 in 2008.</P>
<P align=justify>During 2010, we closed a public share offering of 6,728,755 of
our common shares at a price of $17.00 per share, for aggregate gross proceeds
of $114,389,000. After deducting underwriting fees and offering expenses net of
tax credits of $4,821,000, net proceeds were $109,568,000. Net proceeds from the
offering have been, and will continue to be, used to fund the development of our
mineral properties, for working capital requirements, to repay indebtedness
outstanding and for other general corporate purposes.</P>
<P align=right>13</P>
<HR style="PAGE-BREAK-AFTER: always" align=center color=black SIZE=5
width="100%" noShade>
<!--$$/page=--><A name=page_14></A>
<P align=justify>In 2010, a total of 971,578 (2009 - 385,632; 2008 &#150; 186,100)
shares were issued on the exercise of stock options for total proceeds received
of $16,318,000 (2009 - $5,578,000; 2008 &#150; $2,192,000). The weighted average
exercise price of options exercised was C$17.00 (2009 - C$15.63; 2008 - C$12.46)
per share.</P>
<P align=justify><B>Investing Activities</B></P>
<TABLE
style="BORDER-COLOR: black; BORDER-COLLAPSE: collapse; FONT-SIZE: 10pt; "
border=0 cellSpacing=0 cellPadding=0 width="100%">

  <TR vAlign=top>
    <TD align=left valign="bottom">&nbsp; </TD>
    <TD  width="1%" align=left valign="bottom">&nbsp;</TD>
    <TD width="10%" align=right valign="bottom"><B>2010</B> </TD>
    <TD  width="2%" align=left valign="bottom">&nbsp;</TD>
    <TD  width="1%" align=left valign="bottom">&nbsp;</TD>
    <TD width="10%" align=right valign="bottom"><B>2009</B> </TD>
    <TD  width="2%" align=left valign="bottom">&nbsp;</TD>
    <TD  width="1%" align=left valign="bottom">&nbsp;</TD>
    <TD width="10%" align=right valign="bottom"><B>2008</B> </TD>
    <TD  width="2%" align=left valign="bottom">&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left valign="bottom">&nbsp; </TD>
    <TD  width="1%"
    align=left valign="bottom" style="BORDER-BOTTOM: #000000 1px solid"><B></B></TD>
    <TD width="10%"
      align=right valign="bottom" style="BORDER-BOTTOM: #000000 1px solid"><B>$(000</B></TD>
    <TD  width="2%"
    align=left valign="bottom" style="BORDER-BOTTOM: #000000 1px solid"><B>)</B> </TD>
    <TD  width="1%"
    align=left valign="bottom" style="BORDER-BOTTOM: #000000 1px solid"><B></B></TD>
    <TD width="10%"
      align=right valign="bottom" style="BORDER-BOTTOM: #000000 1px solid"><B>$(000</B></TD>
    <TD  width="2%"
    align=left valign="bottom" style="BORDER-BOTTOM: #000000 1px solid"><B>)</B> </TD>
    <TD  width="1%"
    align=left valign="bottom" style="BORDER-BOTTOM: #000000 1px solid"><B></B></TD>
    <TD width="10%"
      align=right valign="bottom" style="BORDER-BOTTOM: #000000 1px solid"><B>$(000</B></TD>
    <TD  width="2%"
    align=left valign="bottom" style="BORDER-BOTTOM: #000000 1px solid"><B>)</B> </TD>
  </TR>
  <TR>
    <TD valign="bottom">&nbsp; </TD>
    <TD  width="1%" valign="bottom">&nbsp;</TD>
    <TD width="10%" valign="bottom">&nbsp; </TD>
    <TD  width="2%" valign="bottom">&nbsp;</TD>
    <TD  width="1%" valign="bottom">&nbsp;</TD>
    <TD width="10%" valign="bottom">&nbsp; </TD>
    <TD  width="2%" valign="bottom">&nbsp;</TD>
    <TD  width="1%" valign="bottom">&nbsp;</TD>
    <TD width="10%" valign="bottom">&nbsp; </TD>
    <TD  width="2%" valign="bottom">&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left valign="bottom" bgColor=#e6efff>Expenditures on mineral properties </TD>
    <TD  width="1%" align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD width="10%" align=right valign="bottom" bgColor=#e6efff><B>(52,912</B></TD>
    <TD  width="2%" align=left valign="bottom" bgColor=#e6efff><B>)</B> </TD>
    <TD  width="1%" align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD width="10%" align=right valign="bottom" bgColor=#e6efff>(25,157</TD>
    <TD  width="2%" align=left valign="bottom" bgColor=#e6efff>) </TD>
    <TD  width="1%" align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD width="10%" align=right valign="bottom" bgColor=#e6efff>(36,756</TD>
    <TD  width="2%" align=left valign="bottom" bgColor=#e6efff>) </TD>
  </TR>
  <TR vAlign=top>
    <TD align=left valign="bottom">Settlement of payables for property, plant and equipment</TD>
    <TD  width="1%" align=left valign="bottom">&nbsp;</TD>
    <TD width="10%" align=right valign="bottom"><B>(50,564</B></TD>
    <TD  width="2%" align=left valign="bottom"><B>)</B> </TD>
    <TD  width="1%" align=left valign="bottom">&nbsp;</TD>
    <TD width="10%" align=right valign="bottom">(127,037</TD>
    <TD  width="2%" align=left valign="bottom">) </TD>
    <TD  width="1%" align=left valign="bottom">&nbsp;</TD>
    <TD width="10%" align=right valign="bottom">(132,919</TD>
    <TD  width="2%" align=left valign="bottom">) </TD>
  </TR>
  <TR vAlign=top>
    <TD align=left valign="bottom" bgColor=#e6efff>Increase in value added tax recoverable
      (net) </TD>
    <TD  width="1%" align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD width="10%" align=right valign="bottom" bgColor=#e6efff><B>(19,344</B></TD>
    <TD  width="2%" align=left valign="bottom" bgColor=#e6efff><B>)</B> </TD>
    <TD  width="1%" align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD width="10%" align=right valign="bottom" bgColor=#e6efff>(23,763</TD>
    <TD  width="2%" align=left valign="bottom" bgColor=#e6efff>) </TD>
    <TD  width="1%" align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD width="10%" align=right valign="bottom" bgColor=#e6efff>(24,401</TD>
    <TD  width="2%" align=left valign="bottom" bgColor=#e6efff>) </TD>
  </TR>
  <TR vAlign=top>
    <TD align=left valign="bottom">Proceeds from sale of marketable securities </TD>
    <TD  width="1%" align=left valign="bottom">&nbsp;</TD>
    <TD width="10%" align=right valign="bottom"><B>11,015</B> </TD>
    <TD  width="2%" align=left valign="bottom">&nbsp;</TD>
    <TD  width="1%" align=left valign="bottom">&nbsp;</TD>
    <TD width="10%" align=right valign="bottom">24,133 </TD>
    <TD  width="2%" align=left valign="bottom">&nbsp;</TD>
    <TD  width="1%" align=left valign="bottom">&nbsp;</TD>
    <TD width="10%" align=right valign="bottom">2,780 </TD>
    <TD  width="2%" align=left valign="bottom">&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left valign="bottom" bgColor=#e6efff>Proceeds from sale of silver bullion </TD>
    <TD  width="1%" align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD width="10%" align=right valign="bottom" bgColor=#e6efff><B>-</B> </TD>
    <TD  width="2%" align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD  width="1%" align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD width="10%" align=right valign="bottom" bgColor=#e6efff>- </TD>
    <TD  width="2%" align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD  width="1%" align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD width="10%" align=right valign="bottom" bgColor=#e6efff>39,648 </TD>
    <TD  width="2%" align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left valign="bottom">Net proceeds from sale of mineral properties </TD>
    <TD  width="1%"
    align=left valign="bottom" style="BORDER-BOTTOM: #000000 1px solid">&nbsp;</TD>
    <TD width="10%"
      align=right valign="bottom" style="BORDER-BOTTOM: #000000 1px solid"><B>204,491</B> </TD>
    <TD  width="2%"
    align=left valign="bottom" style="BORDER-BOTTOM: #000000 1px solid">&nbsp;</TD>
    <TD  width="1%"
    align=left valign="bottom" style="BORDER-BOTTOM: #000000 1px solid">&nbsp;</TD>
    <TD width="10%" align=right valign="bottom" style="BORDER-BOTTOM: #000000 1px solid">- </TD>
    <TD  width="2%"
    align=left valign="bottom" style="BORDER-BOTTOM: #000000 1px solid">&nbsp;</TD>
    <TD  width="1%"
    align=left valign="bottom" style="BORDER-BOTTOM: #000000 1px solid">&nbsp;</TD>
    <TD width="10%"
      align=right valign="bottom" style="BORDER-BOTTOM: #000000 1px solid">22,435 </TD>
    <TD  width="2%"
    align=left valign="bottom" style="BORDER-BOTTOM: #000000 1px solid">&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left valign="bottom" bgColor=#e6efff>Cash generated by (used in) investing
      activities </TD>
    <TD
    width="1%" align=left valign="bottom" bgColor=#e6efff style="BORDER-BOTTOM: #000000 2px solid">&nbsp;</TD>
    <TD width="10%"
    align=right valign="bottom" bgColor=#e6efff style="BORDER-BOTTOM: #000000 2px solid"><B>92,686</B> </TD>
    <TD
    width="2%" align=left valign="bottom" bgColor=#e6efff style="BORDER-BOTTOM: #000000 2px solid">&nbsp;</TD>
    <TD
    width="1%" align=left valign="bottom" bgColor=#e6efff style="BORDER-BOTTOM: #000000 2px solid">&nbsp;</TD>
    <TD width="10%"
    align=right valign="bottom" bgColor=#e6efff style="BORDER-BOTTOM: #000000 2px solid">(151,824</TD>
    <TD
    width="2%" align=left valign="bottom" bgColor=#e6efff style="BORDER-BOTTOM: #000000 2px solid">) </TD>
    <TD
    width="1%" align=left valign="bottom" bgColor=#e6efff style="BORDER-BOTTOM: #000000 2px solid">&nbsp;</TD>
    <TD width="10%"
    align=right valign="bottom" bgColor=#e6efff style="BORDER-BOTTOM: #000000 2px solid">(129,213</TD>
    <TD
    width="2%" align=left valign="bottom" bgColor=#e6efff style="BORDER-BOTTOM: #000000 2px solid">) </TD>
  </TR></TABLE>
<P align=justify>A summary of the exploration expenditures by mineral property
follows:</P>
<TABLE
style="BORDER-COLOR: black; BORDER-COLLAPSE: collapse; FONT-SIZE: 10pt; "
border=0 cellSpacing=0 cellPadding=0 width="100%">

  <TR vAlign=top>
    <TD align=left valign="bottom">&nbsp; </TD>
    <TD  width="1%" align=left valign="bottom">&nbsp;</TD>
    <TD width="10%" align=right valign="bottom"><B>2010</B> </TD>
    <TD  width="2%" align=left valign="bottom">&nbsp;</TD>
    <TD  width="1%" align=left valign="bottom">&nbsp;</TD>
    <TD width="10%" align=right valign="bottom"><B>2009</B> </TD>
    <TD  width="2%" align=left valign="bottom">&nbsp;</TD>
    <TD  width="1%" align=left valign="bottom">&nbsp;</TD>
    <TD width="10%" align=right valign="bottom"><B>2008</B> </TD>
    <TD  width="2%" align=left valign="bottom">&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left valign="bottom">&nbsp; </TD>
    <TD  width="1%"
    align=left valign="bottom" style="BORDER-BOTTOM: #000000 1px solid"><B></B></TD>
    <TD width="10%"
      align=right valign="bottom" style="BORDER-BOTTOM: #000000 1px solid"><B>$(000</B></TD>
    <TD  width="2%"
    align=left valign="bottom" style="BORDER-BOTTOM: #000000 1px solid"><B>)</B> </TD>
    <TD  width="1%"
    align=left valign="bottom" style="BORDER-BOTTOM: #000000 1px solid"></TD>
    <TD width="10%"
      align=right valign="bottom" style="BORDER-BOTTOM: #000000 1px solid"><B>$(000</B></TD>
    <TD  width="2%"
    align=left valign="bottom" style="BORDER-BOTTOM: #000000 1px solid"><B>)</B> </TD>
    <TD  width="1%"
    align=left valign="bottom" style="BORDER-BOTTOM: #000000 1px solid"><B></B></TD>
    <TD width="10%"
      align=right valign="bottom" style="BORDER-BOTTOM: #000000 1px solid"><B>$(000</B></TD>
    <TD  width="2%"
    align=left valign="bottom" style="BORDER-BOTTOM: #000000 1px solid"><B>)</B> </TD>
  </TR>
  <TR>
    <TD valign="bottom">&nbsp; </TD>
    <TD  width="1%" valign="bottom">&nbsp;</TD>
    <TD width="10%" valign="bottom">&nbsp; </TD>
    <TD  width="2%" valign="bottom">&nbsp;</TD>
    <TD  width="1%" valign="bottom">&nbsp;</TD>
    <TD width="10%" valign="bottom">&nbsp; </TD>
    <TD  width="2%" valign="bottom">&nbsp;</TD>
    <TD  width="1%" valign="bottom">&nbsp;</TD>
    <TD width="10%" valign="bottom">&nbsp; </TD>
    <TD  width="2%" valign="bottom">&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left valign="bottom" bgColor=#e6efff>Berenguela </TD>
    <TD  width="1%" align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD width="10%" align=right valign="bottom" bgColor=#e6efff><B>2,559</B> </TD>
    <TD  width="2%" align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD  width="1%" align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD width="10%" align=right valign="bottom" bgColor=#e6efff>620 </TD>
    <TD  width="2%" align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD  width="1%" align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD width="10%" align=right valign="bottom" bgColor=#e6efff>72 </TD>
    <TD  width="2%" align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left valign="bottom">Candelaria </TD>
    <TD  width="1%" align=left valign="bottom">&nbsp;</TD>
    <TD width="10%" align=right valign="bottom"><B>289</B> </TD>
    <TD  width="2%" align=left valign="bottom">&nbsp;</TD>
    <TD  width="1%" align=left valign="bottom">&nbsp;</TD>
    <TD width="10%" align=right valign="bottom">271 </TD>
    <TD  width="2%" align=left valign="bottom">&nbsp;</TD>
    <TD  width="1%" align=left valign="bottom">&nbsp;</TD>
    <TD width="10%" align=right valign="bottom">282 </TD>
    <TD  width="2%" align=left valign="bottom">&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left valign="bottom" bgColor=#e6efff>Challacollo </TD>
    <TD  width="1%" align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD width="10%" align=right valign="bottom" bgColor=#e6efff><B>711</B> </TD>
    <TD  width="2%" align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD  width="1%" align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD width="10%" align=right valign="bottom" bgColor=#e6efff>336 </TD>
    <TD  width="2%" align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD  width="1%" align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD width="10%" align=right valign="bottom" bgColor=#e6efff>213 </TD>
    <TD  width="2%" align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left valign="bottom">Diablillos </TD>
    <TD  width="1%" align=left valign="bottom">&nbsp;</TD>
    <TD width="10%" align=right valign="bottom"><B>2,217</B> </TD>
    <TD  width="2%" align=left valign="bottom">&nbsp;</TD>
    <TD  width="1%" align=left valign="bottom">&nbsp;</TD>
    <TD width="10%" align=right valign="bottom">1,656 </TD>
    <TD  width="2%" align=left valign="bottom">&nbsp;</TD>
    <TD  width="1%" align=left valign="bottom">&nbsp;</TD>
    <TD width="10%" align=right valign="bottom">5,663 </TD>
    <TD  width="2%" align=left valign="bottom">&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left valign="bottom" bgColor=#e6efff>Pitarrilla </TD>
    <TD  width="1%" align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD width="10%" align=right valign="bottom" bgColor=#e6efff><B>17,684</B> </TD>
    <TD  width="2%" align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD  width="1%" align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD width="10%" align=right valign="bottom" bgColor=#e6efff>4,304 </TD>
    <TD  width="2%" align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD  width="1%" align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD width="10%" align=right valign="bottom" bgColor=#e6efff>17,866 </TD>
    <TD  width="2%" align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left valign="bottom">San Agustin </TD>
    <TD  width="1%" align=left valign="bottom">&nbsp;</TD>
    <TD width="10%" align=right valign="bottom"><B>1,109</B> </TD>
    <TD  width="2%" align=left valign="bottom">&nbsp;</TD>
    <TD  width="1%" align=left valign="bottom">&nbsp;</TD>
    <TD width="10%" align=right valign="bottom">466 </TD>
    <TD  width="2%" align=left valign="bottom">&nbsp;</TD>
    <TD  width="1%" align=left valign="bottom">&nbsp;</TD>
    <TD width="10%" align=right valign="bottom">- </TD>
    <TD  width="2%" align=left valign="bottom">&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left valign="bottom" bgColor=#e6efff>San Luis </TD>
    <TD  width="1%" align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD width="10%" align=right valign="bottom" bgColor=#e6efff><B>6,414</B> </TD>
    <TD  width="2%" align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD  width="1%" align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD width="10%" align=right valign="bottom" bgColor=#e6efff>5,364 </TD>
    <TD  width="2%" align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD  width="1%" align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD width="10%" align=right valign="bottom" bgColor=#e6efff>6,549 </TD>
    <TD  width="2%" align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left valign="bottom">Snowfield </TD>
    <TD  width="1%" align=left valign="bottom">&nbsp;</TD>
    <TD width="10%" align=right valign="bottom"><B>11,071</B> </TD>
    <TD  width="2%" align=left valign="bottom">&nbsp;</TD>
    <TD  width="1%" align=left valign="bottom">&nbsp;</TD>
    <TD width="10%" align=right valign="bottom">10,345 </TD>
    <TD  width="2%" align=left valign="bottom">&nbsp;</TD>
    <TD  width="1%" align=left valign="bottom">&nbsp;</TD>
    <TD width="10%" align=right valign="bottom">4,643 </TD>
    <TD  width="2%" align=left valign="bottom">&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left valign="bottom" bgColor=#e6efff>Brucejack </TD>
    <TD  width="1%" align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD width="10%" align=right valign="bottom" bgColor=#e6efff><B>10,469</B> </TD>
    <TD  width="2%" align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD  width="1%" align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD width="10%" align=right valign="bottom" bgColor=#e6efff>- </TD>
    <TD  width="2%" align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD  width="1%" align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD width="10%" align=right valign="bottom" bgColor=#e6efff>- </TD>
    <TD  width="2%" align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left valign="bottom">Nazas </TD>
    <TD  width="1%" align=left valign="bottom">&nbsp;</TD>
    <TD width="10%" align=right valign="bottom"><B>1,336</B> </TD>
    <TD  width="2%" align=left valign="bottom">&nbsp;</TD>
    <TD  width="1%" align=left valign="bottom">&nbsp;</TD>
    <TD width="10%" align=right valign="bottom">- </TD>
    <TD  width="2%" align=left valign="bottom">&nbsp;</TD>
    <TD  width="1%" align=left valign="bottom">&nbsp;</TD>
    <TD width="10%" align=right valign="bottom">- </TD>
    <TD  width="2%" align=left valign="bottom">&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left valign="bottom" bgColor=#e6efff>Other </TD>
    <TD  width="1%" align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD width="10%" align=right valign="bottom" bgColor=#e6efff><B>910</B> </TD>
    <TD  width="2%" align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD  width="1%" align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD width="10%" align=right valign="bottom" bgColor=#e6efff>963 </TD>
    <TD  width="2%" align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD  width="1%" align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD width="10%" align=right valign="bottom" bgColor=#e6efff>1,815 </TD>
    <TD  width="2%" align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left valign="bottom">Change in non-cash working capital </TD>
    <TD  width="1%"
    align=left valign="bottom" style="BORDER-BOTTOM: #000000 1px solid">&nbsp;</TD>
    <TD width="10%"
      align=right valign="bottom" style="BORDER-BOTTOM: #000000 1px solid"><B>(1,857</B></TD>
    <TD  width="2%"
    align=left valign="bottom" style="BORDER-BOTTOM: #000000 1px solid"><B>)</B> </TD>
    <TD  width="1%"
    align=left valign="bottom" style="BORDER-BOTTOM: #000000 1px solid">&nbsp;</TD>
    <TD width="10%" align=right valign="bottom" style="BORDER-BOTTOM: #000000 1px solid">832    </TD>
    <TD  width="2%"
    align=left valign="bottom" style="BORDER-BOTTOM: #000000 1px solid">&nbsp;</TD>
    <TD  width="1%"
    align=left valign="bottom" style="BORDER-BOTTOM: #000000 1px solid">&nbsp;</TD>
    <TD width="10%"
    align=right valign="bottom" style="BORDER-BOTTOM: #000000 1px solid">(347</TD>
    <TD  width="2%"
    align=left valign="bottom" style="BORDER-BOTTOM: #000000 1px solid">) </TD>
  </TR>
  <TR>
    <TD valign="bottom" bgColor=#e6efff>&nbsp; </TD>
    <TD  width="1%" valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD width="10%" valign="bottom" bgColor=#e6efff>&nbsp; </TD>
    <TD  width="2%" valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD  width="1%" valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD width="10%" valign="bottom" bgColor=#e6efff>&nbsp; </TD>
    <TD  width="2%" valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD  width="1%" valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD width="10%" valign="bottom" bgColor=#e6efff>&nbsp; </TD>
    <TD  width="2%" valign="bottom" bgColor=#e6efff>&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left valign="bottom">&nbsp; </TD>
    <TD  width="1%"
    align=left valign="bottom" style="BORDER-BOTTOM: #000000 2px solid">&nbsp;</TD>
    <TD width="10%"
      align=right valign="bottom" style="BORDER-BOTTOM: #000000 2px solid"><B>52,912</B> </TD>
    <TD  width="2%"
    align=left valign="bottom" style="BORDER-BOTTOM: #000000 2px solid">&nbsp;</TD>
    <TD  width="1%"
    align=left valign="bottom" style="BORDER-BOTTOM: #000000 2px solid">&nbsp;</TD>
    <TD width="10%"
      align=right valign="bottom" style="BORDER-BOTTOM: #000000 2px solid">25,157 </TD>
    <TD  width="2%"
    align=left valign="bottom" style="BORDER-BOTTOM: #000000 2px solid">&nbsp;</TD>
    <TD  width="1%"
    align=left valign="bottom" style="BORDER-BOTTOM: #000000 2px solid">&nbsp;</TD>
    <TD width="10%"
      align=right valign="bottom" style="BORDER-BOTTOM: #000000 2px solid">36,756 </TD>
    <TD  width="2%"
    align=left valign="bottom" style="BORDER-BOTTOM: #000000 2px solid">&nbsp;</TD>
  </TR></TABLE>
<P align=justify><I>The above table reflects cash expenditures incurred by
property. It does not include non-cash charges.</I></P>
<P align=justify>During 2010 we spent $50,564,000 (2009 - $127,037,000; 2008 -
$132,919,000) for development, construction and mining equipment.</P>
<P align=justify>Of the total amount spent during the year, approximately
$12,631,000 was spent in sustaining capital at the Pirquitas mine and
$37,933,000 was spent in reducing construction related liabilities incurred in
the previous year. During 2009, approximately $76,968,000 million was incurred
on construction and mining equipment and $50,069,000 million in development
costs at the Pirquitas mine.</P>
<P align=justify>We incurred $19,344,000 in value added tax (&#147;VAT&#148;) primarily in
Argentina related to the Pirquitas mine for the year ended December 31, 2010
compared to $23,763,000 in the prior year. During the year, we submitted our
initial applications to the fiscal authorities to begin the process of
recovering our VAT receivable. As we continue to export our concentrates to
market, additional VAT applications will be submitted on an ongoing basis to
recover the remaining balance of VAT receivable.</P>
<P align=right>14</P>
<HR style="PAGE-BREAK-AFTER: always" align=center color=black SIZE=5
width="100%" noShade>
<!--$$/page=--><A name=page_15></A>
<P align=justify>We received proceeds of $11,015,000 for the sale of marketable
securities (2009 - $24,133,000; 2008 -$2,780) from the sale of Silvercorp and
Canplats shares.</P>
<P align=justify>We received proceeds of $204,491,000 from the sale of mineral
properties during the year. In December we sold our Snowfield and Brucejack
properties to Pretium for cash consideration of $211,322,000 (total of
C$215,020,000) with net proceeds of $197,564,000 (C$201,021,000) after fees; and
in February 2010, we completed the sale of our Silvertip Project to Silvercorp
for cash consideration of $7,125,000 (C$7,500,000) with net proceeds of
$6,927,000.</P>
<P align=justify><B>REVIEW OF OPERATIONS</B></P>
<P align=justify><B>Pirquitas Mine, Argentina</B></P>
<P align=justify>During the year ended December 31, 2010, we processed 1,255,261
tonnes of ore at an average milling rate of 3,439 tonnes per day. This ore
contained silver head grades of 233 grams/tonne and achieved recoveries of 65.2%
.. The average cash production cost per ounce, which includes direct production
expenses net of by-products was $12.16. The average cash operating cost per
ounce, which includes third party smelting, refining and transportation costs,
royalties and production taxes, was $18.03. Total production cost per ounce
including depreciation, depletion and amortization was $22.32.</P>
<P align=justify>The following information was recorded in each of the quarters
ended:</P>
<TABLE
style="BORDER-COLOR: black; BORDER-COLLAPSE: collapse; FONT-SIZE: 8pt; "
border=0 cellSpacing=0 cellPadding=0 width="100%">

  <TR vAlign=top>
    <TD align=left valign="bottom">&nbsp; </TD>
    <TD  width="1%" align=left valign="bottom">&nbsp;</TD>
    <TD width="8%" align=left valign="bottom">&nbsp; </TD>
    <TD  width="2%" align=left valign="bottom">&nbsp;</TD>
    <TD  width="1%" align=left valign="bottom">&nbsp;</TD>
    <TD width="8%" align=left valign="bottom">&nbsp; </TD>
    <TD  width="2%" align=left valign="bottom">&nbsp;</TD>
    <TD  width="1%" align=left valign="bottom">&nbsp;</TD>
    <TD width="8%" align=left valign="bottom">&nbsp; </TD>
    <TD  width="2%" align=left valign="bottom">&nbsp;</TD>
    <TD  width="1%" align=left valign="bottom">&nbsp;</TD>
    <TD width="8%" align=left valign="bottom">&nbsp; </TD>
    <TD  width="2%" align=left valign="bottom">&nbsp;</TD>
    <TD  width="1%" align=left valign="bottom">&nbsp;</TD>
    <TD width="8%" align=right valign="bottom"><B>2010</B> </TD>
    <TD  width="2%" align=left valign="bottom">&nbsp;</TD>
    <TD  width="1%" align=left valign="bottom">&nbsp;</TD>
    <TD width="8%" align=right valign="bottom"><B>2009</B> </TD>
    <TD  width="2%" align=left valign="bottom">&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left valign="bottom">&nbsp; </TD>
    <TD  width="1%"
    align=left valign="bottom" style="BORDER-BOTTOM: #000000 1px solid">&nbsp;</TD>
    <TD width="8%"
      align=right valign="bottom" style="BORDER-BOTTOM: #000000 1px solid"><B>YTD</B> </TD>
    <TD  width="2%"
    align=left valign="bottom" style="BORDER-BOTTOM: #000000 1px solid">&nbsp;</TD>
    <TD  width="1%"
    align=left valign="bottom" style="BORDER-BOTTOM: #000000 1px solid">&nbsp;</TD>
    <TD width="8%"
      align=right valign="bottom" style="BORDER-BOTTOM: #000000 1px solid"><B>31-Dec</B> </TD>
    <TD  width="2%"
    align=left valign="bottom" style="BORDER-BOTTOM: #000000 1px solid">&nbsp;</TD>
    <TD  width="1%"
    align=left valign="bottom" style="BORDER-BOTTOM: #000000 1px solid">&nbsp;</TD>
    <TD width="8%"
      align=right valign="bottom" style="BORDER-BOTTOM: #000000 1px solid"><B>30-Sep</B> </TD>
    <TD  width="2%"
    align=left valign="bottom" style="BORDER-BOTTOM: #000000 1px solid">&nbsp;</TD>
    <TD  width="1%"
    align=left valign="bottom" style="BORDER-BOTTOM: #000000 1px solid">&nbsp;</TD>
    <TD width="8%"
      align=right valign="bottom" style="BORDER-BOTTOM: #000000 1px solid"><B>30-Jun</B> </TD>
    <TD  width="2%"
    align=left valign="bottom" style="BORDER-BOTTOM: #000000 1px solid">&nbsp;</TD>
    <TD  width="1%"
    align=left valign="bottom" style="BORDER-BOTTOM: #000000 1px solid">&nbsp;</TD>
    <TD width="8%"
      align=right valign="bottom" style="BORDER-BOTTOM: #000000 1px solid"><B>31-Mar</B> </TD>
    <TD  width="2%"
    align=left valign="bottom" style="BORDER-BOTTOM: #000000 1px solid">&nbsp;</TD>
    <TD  width="1%"
    align=left valign="bottom" style="BORDER-BOTTOM: #000000 1px solid">&nbsp;</TD>
    <TD width="8%"
      align=right valign="bottom" style="BORDER-BOTTOM: #000000 1px solid"><B>31-Dec*</B> </TD>
    <TD  width="2%"
    align=left valign="bottom" style="BORDER-BOTTOM: #000000 1px solid">&nbsp;</TD>
  </TR>
  <TR>
    <TD valign="bottom">&nbsp; </TD>
    <TD  width="1%" valign="bottom">&nbsp;</TD>
    <TD width="8%" valign="bottom">&nbsp; </TD>
    <TD  width="2%" valign="bottom">&nbsp;</TD>
    <TD  width="1%" valign="bottom">&nbsp;</TD>
    <TD width="8%" valign="bottom">&nbsp; </TD>
    <TD  width="2%" valign="bottom">&nbsp;</TD>
    <TD  width="1%" valign="bottom">&nbsp;</TD>
    <TD width="8%" valign="bottom">&nbsp; </TD>
    <TD  width="2%" valign="bottom">&nbsp;</TD>
    <TD  width="1%" valign="bottom">&nbsp;</TD>
    <TD width="8%" valign="bottom">&nbsp; </TD>
    <TD  width="2%" valign="bottom">&nbsp;</TD>
    <TD  width="1%" valign="bottom">&nbsp;</TD>
    <TD width="8%" valign="bottom">&nbsp; </TD>
    <TD  width="2%" valign="bottom">&nbsp;</TD>
    <TD  width="1%" valign="bottom">&nbsp;</TD>
    <TD width="8%" valign="bottom">&nbsp; </TD>
    <TD  width="2%" valign="bottom">&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left valign="bottom" bgColor=#e6efff>Tonnes milled </TD>
    <TD  width="1%" align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD width="8%" align=right valign="bottom" bgColor=#e6efff>1,255,261 </TD>
    <TD  width="2%" align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD  width="1%" align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD width="8%" align=right valign="bottom" bgColor=#e6efff>313,051 </TD>
    <TD  width="2%" align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD  width="1%" align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD width="8%" align=right valign="bottom" bgColor=#e6efff>320,174 </TD>
    <TD  width="2%" align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD  width="1%" align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD width="8%" align=right valign="bottom" bgColor=#e6efff>345,661 </TD>
    <TD  width="2%" align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD  width="1%" align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD width="8%" align=right valign="bottom" bgColor=#e6efff>276,375 </TD>
    <TD  width="2%" align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD  width="1%" align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD width="8%" align=right valign="bottom" bgColor=#e6efff>110,767 </TD>
    <TD  width="2%" align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left valign="bottom">Silver head grades (g/t) </TD>
    <TD  width="1%" align=left valign="bottom">&nbsp;</TD>
    <TD width="8%" align=right valign="bottom">233 </TD>
    <TD  width="2%" align=left valign="bottom">&nbsp;</TD>
    <TD  width="1%" align=left valign="bottom">&nbsp;</TD>
    <TD width="8%" align=right valign="bottom">267 </TD>
    <TD  width="2%" align=left valign="bottom">&nbsp;</TD>
    <TD  width="1%" align=left valign="bottom">&nbsp;</TD>
    <TD width="8%" align=right valign="bottom">283 </TD>
    <TD  width="2%" align=left valign="bottom">&nbsp;</TD>
    <TD  width="1%" align=left valign="bottom">&nbsp;</TD>
    <TD width="8%" align=right valign="bottom">240 </TD>
    <TD  width="2%" align=left valign="bottom">&nbsp;</TD>
    <TD  width="1%" align=left valign="bottom">&nbsp;</TD>
    <TD width="8%" align=right valign="bottom">129 </TD>
    <TD  width="2%" align=left valign="bottom">&nbsp;</TD>
    <TD  width="1%" align=left valign="bottom">&nbsp;</TD>
    <TD width="8%" align=right valign="bottom">262 </TD>
    <TD  width="2%" align=left valign="bottom">&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left valign="bottom" bgColor=#e6efff>Silver recoveries </TD>
    <TD  width="1%" align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD width="8%" align=right valign="bottom" bgColor=#e6efff>65.2% </TD>
    <TD  width="2%" align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD  width="1%" align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD width="8%" align=right valign="bottom" bgColor=#e6efff>76.3 </TD>
    <TD  width="2%" align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD  width="1%" align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD width="8%" align=right valign="bottom" bgColor=#e6efff>66.3 </TD>
    <TD  width="2%" align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD  width="1%" align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD width="8%" align=right valign="bottom" bgColor=#e6efff>63.7 </TD>
    <TD  width="2%" align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD  width="1%" align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD width="8%" align=right valign="bottom" bgColor=#e6efff>53.2 </TD>
    <TD  width="2%" align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD  width="1%" align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD width="8%" align=right valign="bottom" bgColor=#e6efff>58.4 </TD>
    <TD  width="2%" align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left valign="bottom">Silver produced (ounces) </TD>
    <TD  width="1%" align=left valign="bottom">&nbsp;</TD>
    <TD width="8%" align=right valign="bottom">6,302,140 </TD>
    <TD  width="2%" align=left valign="bottom">&nbsp;</TD>
    <TD  width="1%" align=left valign="bottom">&nbsp;</TD>
    <TD width="8%" align=right valign="bottom">2,067,438 </TD>
    <TD  width="2%" align=left valign="bottom">&nbsp;</TD>
    <TD  width="1%" align=left valign="bottom">&nbsp;</TD>
    <TD width="8%" align=right valign="bottom">1,932,978 </TD>
    <TD  width="2%" align=left valign="bottom">&nbsp;</TD>
    <TD  width="1%" align=left valign="bottom">&nbsp;</TD>
    <TD width="8%" align=right valign="bottom">1,692,466 </TD>
    <TD  width="2%" align=left valign="bottom">&nbsp;</TD>
    <TD  width="1%" align=left valign="bottom">&nbsp;</TD>
    <TD width="8%" align=right valign="bottom">609,258 </TD>
    <TD  width="2%" align=left valign="bottom">&nbsp;</TD>
    <TD  width="1%" align=left valign="bottom">&nbsp;</TD>
    <TD width="8%" align=right valign="bottom">545,600 </TD>
    <TD  width="2%" align=left valign="bottom">&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left valign="bottom" bgColor=#e6efff>Silver sold (ounces) </TD>
    <TD  width="1%" align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD width="8%" align=right valign="bottom" bgColor=#e6efff>5,936,657 </TD>
    <TD  width="2%" align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD  width="1%" align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD width="8%" align=right valign="bottom" bgColor=#e6efff>1,621,363 </TD>
    <TD  width="2%" align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD  width="1%" align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD width="8%" align=right valign="bottom" bgColor=#e6efff>2,316,447 </TD>
    <TD  width="2%" align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD  width="1%" align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD width="8%" align=right valign="bottom" bgColor=#e6efff>1,091,911 </TD>
    <TD  width="2%" align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD  width="1%" align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD width="8%" align=right valign="bottom" bgColor=#e6efff>906,936 </TD>
    <TD  width="2%" align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD  width="1%" align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD width="8%" align=right valign="bottom" bgColor=#e6efff>460,100 </TD>
    <TD  width="2%" align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
  </TR>
  <TR>
    <TD valign="bottom">&nbsp; </TD>
    <TD  width="1%" valign="bottom">&nbsp;</TD>
    <TD width="8%" valign="bottom">&nbsp; </TD>
    <TD  width="2%" valign="bottom">&nbsp;</TD>
    <TD  width="1%" valign="bottom">&nbsp;</TD>
    <TD width="8%" valign="bottom">&nbsp; </TD>
    <TD  width="2%" valign="bottom">&nbsp;</TD>
    <TD  width="1%" valign="bottom">&nbsp;</TD>
    <TD width="8%" valign="bottom">&nbsp; </TD>
    <TD  width="2%" valign="bottom">&nbsp;</TD>
    <TD  width="1%" valign="bottom">&nbsp;</TD>
    <TD width="8%" valign="bottom">&nbsp; </TD>
    <TD  width="2%" valign="bottom">&nbsp;</TD>
    <TD  width="1%" valign="bottom">&nbsp;</TD>
    <TD width="8%" valign="bottom">&nbsp; </TD>
    <TD  width="2%" valign="bottom">&nbsp;</TD>
    <TD  width="1%" valign="bottom">&nbsp;</TD>
    <TD width="8%" valign="bottom">&nbsp; </TD>
    <TD  width="2%" valign="bottom">&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left valign="bottom" bgColor=#e6efff>Revenue (000s) </TD>
    <TD  width="1%" align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD width="8%" align=right valign="bottom" bgColor=#e6efff>112,256 </TD>
    <TD  width="2%" align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD  width="1%" align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD width="8%" align=right valign="bottom" bgColor=#e6efff>45,077 </TD>
    <TD  width="2%" align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD  width="1%" align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD width="8%" align=right valign="bottom" bgColor=#e6efff>41,557 </TD>
    <TD  width="2%" align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD  width="1%" align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD width="8%" align=right valign="bottom" bgColor=#e6efff>14,091 </TD>
    <TD  width="2%" align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD  width="1%" align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD width="8%" align=right valign="bottom" bgColor=#e6efff>11,531 </TD>
    <TD  width="2%" align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD  width="1%" align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD width="8%" align=right valign="bottom" bgColor=#e6efff>5,442 </TD>
    <TD  width="2%" align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
  </TR>
  <TR>
    <TD valign="bottom">&nbsp; </TD>
    <TD  width="1%" valign="bottom">&nbsp;</TD>
    <TD width="8%" valign="bottom">&nbsp; </TD>
    <TD  width="2%" valign="bottom">&nbsp;</TD>
    <TD  width="1%" valign="bottom">&nbsp;</TD>
    <TD width="8%" valign="bottom">&nbsp; </TD>
    <TD  width="2%" valign="bottom">&nbsp;</TD>
    <TD  width="1%" valign="bottom">&nbsp;</TD>
    <TD width="8%" valign="bottom">&nbsp; </TD>
    <TD  width="2%" valign="bottom">&nbsp;</TD>
    <TD  width="1%" valign="bottom">&nbsp;</TD>
    <TD width="8%" valign="bottom">&nbsp; </TD>
    <TD  width="2%" valign="bottom">&nbsp;</TD>
    <TD  width="1%" valign="bottom">&nbsp;</TD>
    <TD width="8%" valign="bottom">&nbsp; </TD>
    <TD  width="2%" valign="bottom">&nbsp;</TD>
    <TD  width="1%" valign="bottom">&nbsp;</TD>
    <TD width="8%" valign="bottom">&nbsp; </TD>
    <TD  width="2%" valign="bottom">&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left valign="bottom" bgColor=#e6efff>Average realized silver price </TD>
    <TD  width="1%" align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD width="8%" align=left valign="bottom" bgColor=#e6efff>&nbsp; </TD>
    <TD  width="2%" align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD  width="1%" align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD width="8%" align=left valign="bottom" bgColor=#e6efff>&nbsp; </TD>
    <TD  width="2%" align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD  width="1%" align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD width="8%" align=left valign="bottom" bgColor=#e6efff>&nbsp; </TD>
    <TD  width="2%" align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD  width="1%" align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD width="8%" align=left valign="bottom" bgColor=#e6efff>&nbsp; </TD>
    <TD  width="2%" align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD  width="1%" align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD width="8%" align=left valign="bottom" bgColor=#e6efff>&nbsp; </TD>
    <TD  width="2%" align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD  width="1%" align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD width="8%" align=left valign="bottom" bgColor=#e6efff>&nbsp; </TD>
    <TD  width="2%" align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left valign="bottom">(per ounce) </TD>
    <TD  width="1%" align=left valign="bottom">$</TD>
    <TD width="8%" align=right valign="bottom">&nbsp;20.92 </TD>
    <TD  width="2%" align=left valign="bottom">&nbsp;</TD>
    <TD  width="1%" align=left valign="bottom">&nbsp;</TD>
    <TD width="8%" align=right valign="bottom">26.93 </TD>
    <TD  width="2%" align=left valign="bottom">&nbsp;</TD>
    <TD  width="1%" align=left valign="bottom">&nbsp;</TD>
    <TD width="8%" align=right valign="bottom">19.43 </TD>
    <TD  width="2%" align=left valign="bottom">&nbsp;</TD>
    <TD  width="1%" align=left valign="bottom">&nbsp;</TD>
    <TD width="8%" align=right valign="bottom">18.12 </TD>
    <TD  width="2%" align=left valign="bottom">&nbsp;</TD>
    <TD  width="1%" align=left valign="bottom">&nbsp;</TD>
    <TD width="8%" align=right valign="bottom">17.43 </TD>
    <TD  width="2%" align=left valign="bottom">&nbsp;</TD>
    <TD  width="1%" align=left valign="bottom">&nbsp;</TD>
    <TD width="8%" align=right valign="bottom">17.49 </TD>
    <TD  width="2%" align=left valign="bottom">&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left valign="bottom" bgColor=#e6efff>Average London spot silver </TD>
    <TD  width="1%" align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD width="8%" align=left valign="bottom" bgColor=#e6efff>&nbsp; </TD>
    <TD  width="2%" align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD  width="1%" align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD width="8%" align=left valign="bottom" bgColor=#e6efff>&nbsp; </TD>
    <TD  width="2%" align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD  width="1%" align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD width="8%" align=left valign="bottom" bgColor=#e6efff>&nbsp; </TD>
    <TD  width="2%" align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD  width="1%" align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD width="8%" align=left valign="bottom" bgColor=#e6efff>&nbsp; </TD>
    <TD  width="2%" align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD  width="1%" align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD width="8%" align=left valign="bottom" bgColor=#e6efff>&nbsp; </TD>
    <TD  width="2%" align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD  width="1%" align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD width="8%" align=left valign="bottom" bgColor=#e6efff>&nbsp; </TD>
    <TD  width="2%" align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left valign="bottom">price (per ounce) </TD>
    <TD  width="1%" align=left valign="bottom">$</TD>
    <TD width="8%" align=right valign="bottom">&nbsp;20.16 </TD>
    <TD  width="2%" align=left valign="bottom">&nbsp;</TD>
    <TD  width="1%" align=left valign="bottom">&nbsp;</TD>
    <TD width="8%" align=right valign="bottom">26.43 </TD>
    <TD  width="2%" align=left valign="bottom">&nbsp;</TD>
    <TD  width="1%" align=left valign="bottom">&nbsp;</TD>
    <TD width="8%" align=right valign="bottom">18.96 </TD>
    <TD  width="2%" align=left valign="bottom">&nbsp;</TD>
    <TD  width="1%" align=left valign="bottom">&nbsp;</TD>
    <TD width="8%" align=right valign="bottom">18.32 </TD>
    <TD  width="2%" align=left valign="bottom">&nbsp;</TD>
    <TD  width="1%" align=left valign="bottom">&nbsp;</TD>
    <TD width="8%" align=right valign="bottom">16.76 </TD>
    <TD  width="2%" align=left valign="bottom">&nbsp;</TD>
    <TD  width="1%" align=left valign="bottom">&nbsp;</TD>
    <TD width="8%" align=right valign="bottom">17.67 </TD>
    <TD  width="2%" align=left valign="bottom">&nbsp;</TD>
  </TR>
  <TR>
    <TD valign="bottom" bgColor=#e6efff>&nbsp; </TD>
    <TD  width="1%" valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD width="8%" valign="bottom" bgColor=#e6efff>&nbsp; </TD>
    <TD  width="2%" valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD  width="1%" valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD width="8%" valign="bottom" bgColor=#e6efff>&nbsp; </TD>
    <TD  width="2%" valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD  width="1%" valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD width="8%" valign="bottom" bgColor=#e6efff>&nbsp; </TD>
    <TD  width="2%" valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD  width="1%" valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD width="8%" valign="bottom" bgColor=#e6efff>&nbsp; </TD>
    <TD  width="2%" valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD  width="1%" valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD width="8%" valign="bottom" bgColor=#e6efff>&nbsp; </TD>
    <TD  width="2%" valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD  width="1%" valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD width="8%" valign="bottom" bgColor=#e6efff>&nbsp; </TD>
    <TD  width="2%" valign="bottom" bgColor=#e6efff>&nbsp;</TD>
  </TR>
  <TR>
    <TD valign="bottom">&nbsp; </TD>
    <TD  width="1%" valign="bottom">&nbsp;</TD>
    <TD width="8%" valign="bottom">&nbsp; </TD>
    <TD  width="2%" valign="bottom">&nbsp;</TD>
    <TD  width="1%" valign="bottom">&nbsp;</TD>
    <TD width="8%" valign="bottom">&nbsp; </TD>
    <TD  width="2%" valign="bottom">&nbsp;</TD>
    <TD  width="1%" valign="bottom">&nbsp;</TD>
    <TD width="8%" valign="bottom">&nbsp; </TD>
    <TD  width="2%" valign="bottom">&nbsp;</TD>
    <TD  width="1%" valign="bottom">&nbsp;</TD>
    <TD width="8%" valign="bottom">&nbsp; </TD>
    <TD  width="2%" valign="bottom">&nbsp;</TD>
    <TD  width="1%" valign="bottom">&nbsp;</TD>
    <TD width="8%" valign="bottom">&nbsp; </TD>
    <TD  width="2%" valign="bottom">&nbsp;</TD>
    <TD  width="1%" valign="bottom">&nbsp;</TD>
    <TD width="8%" valign="bottom">&nbsp; </TD>
    <TD  width="2%" valign="bottom">&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left valign="bottom" bgColor=#e6efff>Cash production cost (per oz) </TD>
    <TD  width="1%" align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD width="8%" align=right valign="bottom" bgColor=#e6efff>12.16 </TD>
    <TD  width="2%" align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD  width="1%" align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD width="8%" align=right valign="bottom" bgColor=#e6efff>9.47 </TD>
    <TD  width="2%" align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD  width="1%" align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD width="8%" align=right valign="bottom" bgColor=#e6efff>10.42 </TD>
    <TD  width="2%" align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD  width="1%" align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD width="8%" align=right valign="bottom" bgColor=#e6efff>11.27 </TD>
    <TD  width="2%" align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD  width="1%" align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD width="8%" align=right valign="bottom" bgColor=#e6efff>29.32 </TD>
    <TD  width="2%" align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD  width="1%" align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD width="8%" align=right valign="bottom" bgColor=#e6efff>8.98 </TD>
    <TD  width="2%" align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left valign="bottom">Cash operating cost (per oz) </TD>
    <TD  width="1%" align=left valign="bottom">&nbsp;</TD>
    <TD width="8%" align=right valign="bottom">18.03 </TD>
    <TD  width="2%" align=left valign="bottom">&nbsp;</TD>
    <TD  width="1%" align=left valign="bottom">&nbsp;</TD>
    <TD width="8%" align=right valign="bottom">16.07 </TD>
    <TD  width="2%" align=left valign="bottom">&nbsp;</TD>
    <TD  width="1%" align=left valign="bottom">&nbsp;</TD>
    <TD width="8%" align=right valign="bottom">16.94 </TD>
    <TD  width="2%" align=left valign="bottom">&nbsp;</TD>
    <TD  width="1%" align=left valign="bottom">&nbsp;</TD>
    <TD width="8%" align=right valign="bottom">14.98 </TD>
    <TD  width="2%" align=left valign="bottom">&nbsp;</TD>
    <TD  width="1%" align=left valign="bottom">&nbsp;</TD>
    <TD width="8%" align=right valign="bottom">36.61 </TD>
    <TD  width="2%" align=left valign="bottom">&nbsp;</TD>
    <TD  width="1%" align=left valign="bottom">&nbsp;</TD>
    <TD width="8%" align=right valign="bottom">16.57 </TD>
    <TD  width="2%" align=left valign="bottom">&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left valign="bottom" bgColor=#e6efff>Total production cost (per oz) </TD>
    <TD  width="1%" align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD width="8%" align=right valign="bottom" bgColor=#e6efff>22.32 </TD>
    <TD  width="2%" align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD  width="1%" align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD width="8%" align=right valign="bottom" bgColor=#e6efff>18.82 </TD>
    <TD  width="2%" align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD  width="1%" align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD width="8%" align=right valign="bottom" bgColor=#e6efff>20.76 </TD>
    <TD  width="2%" align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD  width="1%" align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD width="8%" align=right valign="bottom" bgColor=#e6efff>19.24 </TD>
    <TD  width="2%" align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD  width="1%" align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD width="8%" align=right valign="bottom" bgColor=#e6efff>47.69 </TD>
    <TD  width="2%" align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD  width="1%" align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD width="8%" align=right valign="bottom" bgColor=#e6efff>20.30 </TD>
    <TD  width="2%"
  align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
  </TR></TABLE>
<P align=justify>*statistics are for only the month of December 2009 following
the commencement of commercial production.</P>
<P align=justify>We continue to see improved silver production at our Pirquitas
Mine quarter over quarter in 2010 since the completion of the commission phase
on December 1, 2009. During the fourth quarter, we produced 2,067,438 ounces of
silver, compared to 1,932,978 ounces in the third quarter, 1,692,466 in the
second quarter and 609,258 in the first quarter. This brought total production
for the year to 6,302,140 ounces. The improving trend in production is due to
improved recoveries and higher grade zones in the fourth quarter. With the
increase in production and resulting silver sales, the Pirquitas mine reached an
important milestone of being cash positive from the third quarter until the end
of the year.</P>
<P align=justify>Cash production cost per ounce declined through 2010, from
$29.32 per ounce for the first quarter down to $9.47 per ounce in the fourth
quarter, this has been achieved through increased production and recoveries whilst maintaining consistent operating costs. Cash operating
costs on a per ounce basis, were higher in the during the third and fourth
quarters than the second quarter primarily due to escalating deductions and
refining charges driven by increased silver prices. Total production costs and
total production costs mirror this trend through 2010.</P>
<P align=right>15</P>
<HR style="PAGE-BREAK-AFTER: always" align=center color=black SIZE=5
width="100%" noShade>
<!--$$/page=--><A name=page_16></A>
<P align=justify>The open pit mine operated well with 4,360,000 tonnes (47,000
tonnes per day) being mined in the fourth quarter, which exceeded each of the
first three quarters of the year which averaged approximately 43,000 tonnes per
day. This is in line with the project design assumptions.</P>
<P align=justify>The mill feed consisted primarily of transitional ore until
September when sulphide ore from the open pit was fed continuously into the
process plant for the first time. This represented a key milestone for
Pirquitas, as the pit sulphide ore represents the life of mine feed for the
project. The metallurgical response to the sulphide ore has been in line with
expectations and overall silver recovery rates are achieving feasibility study
expectations. </P>
<P align=justify>Commissioning of the gravity pre-concentration stage commenced
near the end of the third quarter and results have been encouraging. This has
lifted the required crushing throughput rate from 4000tpd to 6000tpd, and the
crushing circuit is in the process of being de-bottlenecked to consistently
achieve the additional throughput, and the level of upgrading exhibited from the
process is in line with expectations. Proof of concept for silver recovery has
been achieved as a result. </P>
<P align=justify>We expect production for 2011 to be approximately 8.5 million
ounces of silver at an average cash production cost of $9.00 per ounce of silver
(net of by product credits), average cash operating cost of $15.00 per ounce and
$19.00 per ounce total production costs. Please refer to the cautionary note
regarding forward looking statements and non-GAAP financial performance measures
contained in this MD&amp;A.</P>
<P align=justify>With the continuous processing of sulphide ore now established,
the zinc flotation circuit was re-commissioned and we are now making separate
silver and zinc concentrates, with the first sales of zinc concentrate in early
2011. We expect to produce approximately 10 million pounds of zinc in 2011.
Please refer to the cautionary note regarding forward looking statements and
non-GAAP financial performance measures contained in this MD&amp;A.</P>
<P align=justify>The tin circuit has been proven capable of producing a tin
concentrate but despite being able to produce a high grade saleable gravity tin,
the tin recovery rate is low. Test work is being conducted at a number of
laboratories globally, with the objective to improve the tin recovery while
maintaining a good final concentrate tin grade. We will advise through 2011
progress on the tin circuit.</P>
<P align=justify>A total of $1,609,000 was spent on approximately 9,000 meters
drilling at Pirquitas during the second half of 2010. The majority of the
diamond drill holes tested for the continuation of silver-tin-zinc
mineralization beneath the designed bottom of the current open pit. The results
of the 2010 drilling campaign are deemed to be sufficiently positive to justify
a follow-up drilling program in 2011, likely to be completed in the first half
of the year. We will continue drilling at Pirquitas and include results in an
updated reserves and resources statement in the second half of 2011.</P>
<P align=justify>The Pirquitas mine has a fiscal stability agreement with the
government of Argentina dating from 1998. In 2002, the government of Argentina
implemented an export duty on concentrates that did not apply to companies with
pre-existing fiscal stability agreements. In December 2007 the National Customs
Authority of Argentina levied an export duty of 10% on concentrates for projects
with fiscal stability agreements predating 2002. We have been advised that the
project is subject to this export duty despite our rights under our fiscal
stability agreement from 1998. The legality of the export duty has been
challenged and is currently under review by the court in Argentina. In July
2010, we filed a claim in provincial Argentina court for repayment of export
duties paid to date and for an order to cease payment of the export duty until
the matter is decided by the court. An order was granted effective September 29,
2010 to cease payment of the export duty pending the decision of the courts. Up
to December 31, 2010 the Pirquitas mine has paid $6,646,000 in export taxes on concentrate sales and accrued for
an additional $3,095,000 since we received the order to cease payment. The
export tax expense has been recorded within cost of sales until a resolution is
reached, if these duties are recovered in the future we will recognize a gain in
the statement of earnings for the full amount.</P>
<P align=right>16</P>
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<P align=justify><B>REVIEW OF PROJECTS</B></P>
<P align=justify><B>San Luis, Peru</B></P>
<P align=justify>A total of $6,414,000 was spent at the San Luis Joint Venture
Project in Peru during the year compared to $5,364,000 in 2009 and $6,549,000 in
2008. The feasibility study on placing the project into production was completed
in June 2010. </P>
<P align=justify>With the completion of the feasibility study, we had vested a
70% interest in the San Luis Joint Venture. On February 28, 2011 we reached an
agreement to acquire the remaining interest in the project from our joint
venture partner Esperanza Resources Corp. Upon completion of the acquisition we
will own 100% of the San Luis project. </P>
<P align=justify>During the year, we continued to negotiate long-term land
access agreements; we submitted the Environmental Impact Study (&#147;EIS&#148;) and
worked on the strategy for project execution. In 2011 we will finalize the
long-term land access agreements and the EIS to enable a construction
decision<B>. </B>Presently, the San Luis project comprises proven and probable
mineral reserves of 0.21 million ounces of gold and 5.1 million ounces of
silver.</P>
<P align=justify><B>Pitarrilla, Mexico</B></P>
<P align=justify>A total of $17,684,000 was spent in 2010 at the wholly-owned
Pitarrilla Project located in Durango, Mexico compared to $4,304,000 in 2009 and
$17,866,000 in 2008. A feasibility study commenced in the first quarter of 2010
to evaluate the economic viability of sulphide mineralization extraction. </P>
<P align=justify>As part of the continuing exploration of the property, a
program of geophysical surveying was completed in 2010 in the area covering the
known silver deposits. This work was done to determine which types of
geophysical response can be used to identify deeply buried, sulphide-associated
silver mineralization of the form and extent found at Pitarrilla. Besides
detecting the main body of sulphide mineralization of the Breccia Ridge deposit,
the geophysical program also outlined two zones of anomalous induced
polarization and gravimetric response which represent targets for drilling in
2011. A diamond drilling program was completed in the first half of the year
providing geotechnical information that was incorporated in the feasibility
study. </P>
<P align=justify>Beginning in the first quarter of 2011 a further evaluation for
extraction of the oxide resources will also be prepared, which may determine a
staged approach to underground and open pit development of Pitarrilla.</P>
<P align=justify>Pitarilla has probable mineral reserves of 91.7 million ounces
of silver, measured and indicated resources of 26.1 million ounces of silver and
82.2 million ounces of silver inferred. </P>
<P align=justify><B>Diablillos, Argentina</B></P>
<P align=justify>A total of $2,217,000 was spent at the wholly-owned Diablillos
silver-gold project located 275 kilometers south of the Pirquitas Mine in
northwestern Argentina, compared to $1,656,000 in 2009 and $5,663,000 in 2008.
</P>
<P align=justify>These expenditures were primarily on engineering and
metallurgical studies done as part of a preliminary economic assessment (&#147;PEA&#148;)
of the project that is to be completed in the first quarter of 2011, which is
evaluating open pit mining with a conventional milling
operation and heap-leach processing of some portion of the deposit.</P>
<P align=right>17</P>
<HR style="PAGE-BREAK-AFTER: always" align=center color=black SIZE=5
width="100%" noShade>
<!--$$/page=--><A name=page_18></A>
<P align=justify>In addition, a preliminary metallurgical program to assess the
heap leaching characteristics of the mineralization at Diablillos has been
completed and further leach metallurgical test work has been planned for
2011.</P>
<P align=justify>Diablillos has indicated mineral resources that total 640,000
ounces of gold and 77.1 million ounces of silver, with additional inferred
resources totaling 187,000 ounces of gold and 6.3 million ounces of silver.
These resources are based on a $10 recovered metal values cut-off, a gold price
of $700/oz with a recovery rate of 65%, and a silver price of $11/oz with a
recovery rate of 40%.</P>
<P align=justify><B>San Agustin, Mexico</B></P>
<P align=justify>A total of $1,109,000 was spent at the wholly-owned San Agustin
project located in Durango State, Mexico compared to $466,000 in 2009 and $nil
in 2008. A comprehensive program of geophysical surveying was completed over
most of the property; the main objective was to outline zones of anomalous
geophysical response that could indicate the continuation of known low-grade
gold-zinc-silver mineralization to depth and laterally. The geophysical surveys
were also designed to assess the property&#146;s potential for hosting bodies of
relatively high-grade polymetallic mineralization.</P>
<P align=justify>In addition, a study to evaluate the economic potential of
heap-leach processing of the &#145;oxide&#146; gold mineralization was completed in 2010,
and a 5,000 meter diamond drilling program has been planned for 2011 with the
objective of expanding the near surface oxidized gold resource. Detailed
metallurgical studies will also be undertaken in 2011 and will focus on the gold
recovery characteristics of the oxide mineralization. </P>
<P align=justify>Presently, the San Agustin project comprises indicated mineral
resources of 1.59 million ounces of gold and 47.9 million ounces of silver along
with inferred resources of 1.06 million ounces of gold and 37.0 million ounces
of silver. </P>
<P align=justify><B>Nazas, Mexico</B></P>
<P align=justify>A total of $1,336,000 (2009 and 2008 - $nil) was spent during
the year at our 100% owned Nazas project for the acquisition of certain claims
and an option on the Navidad claim which covers an extensive system of
epithermal quartz veins, several of which are mineralized with gold and/or
silver, as well a number of quartz-fluorite veins that were previously mined for
fluorite. The Nazas project is centered about 20 kilometers east of the
Pitarrilla project and covers a total area of approximately 236 square
kilometers. The northern claims of the Nazas property were acquired in 2010.
Exploration of the Nazas property was initiated in the second half of 2010 and
involved geological mapping, rock sampling and a comprehensive program of
geophysical surveying with four different survey methods being performed. The
geophysical surveying will continue into the first quarter of 2011, and 7,500
meter diamond drilling campaign is planned for 2011.</P>
<P align=justify><B>Snowfield and Brucejack, Canada</B></P>
<P align=justify>The Snowfield and Brucejack projects, which are both located in
northwestern British Columbia, were wholly-owned by the Company until their sale
on December 21, 2010 to Pretium for total consideration of C$450 million. We
retained an ownership interest of 41.27% as at December 31, 2010 (which
subsequently increased to 42.31% following the conversion of the unpaid portion
of the promissory note on January 31, 2011). </P>
<P align=justify>Prior to their sale in December 2010 a combined total of
$21,540,000 was spent at both projects compared to $10,345,000 in 2009 and
$4,643,000 in 2008.</P>
<P align=right>18</P>
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width="100%" noShade>
<!--$$/page=--><A name=page_19></A>
<P align=justify>During the year, we completed a 17,976 meter diamond drilling
program at Snowfield, which was successful in expanding known mineralization to
the south and southeast in an area of copper-dominant mineralization (see August
26, September 30 and October 14, 2010 new releases for details). Most of the
newly defined mineralization was in areas previously classified as waste in the
National Instrument 43-101 compliant Preliminary Assessment completed during the
quarter and issued on September 13, 2010. The report, which did not include
results from the 2010 drilling program, examined the benefits of a project
combining the mineral resource from both Snowfield and the adjacent Brucejack
property.</P>
<P align=justify>During the year we completed a 33,100-meter diamond drill
program at Brucejack, which was successful in expanding the Bridge Zone, which
is host to gold-silver porphyry-style mineralization, as well as expanding the
high-grade Galena Hill and West Zones where high-grade gold and silver were
first identified in the 2009 drill program.</P>
<P align=justify><B>FINANCIAL INSTRUMENTS </B></P>
<P align=justify>Our activities expose us to a variety of financial risks,
including credit risk, liquidity risk and market risk. From time to time, we may
use foreign exchange contracts, commodity price contracts and interest rate
swaps to manage exposure to fluctuations in foreign exchange, metal prices and
interest rates. We do not have a practice of trading derivatives. In the past,
our use of derivatives was limited to specific programs to manage fluctuations
in foreign exchange risk, which are subject to the oversight of the Board of
Directors.</P>
<P align=justify><B><I>Credit Risk</I></B></P>
<P align=justify>Credit risk arises from the non-performance by counterparties
of contractual financial obligations. Our credit risk arises primarily with
respect to our cash and cash equivalents, accounts receivable, convertible
debenture receivable and value added tax recoverable. We have established
internal policies to mitigate our exposure to credit risk, including limiting
the concentration of credit risk, ensuring a minimum credit worthiness of
customers and monitoring liquidity of available funds.</P>
<P align=justify>We manage our credit risk on cash and cash equivalents by
investing only in government obligations and the credit risk associated with
these investments is considered to be low. At December 31, 2010, there were no
significant concentrations of credit risk outside of government bonds and no
amounts were held as collateral.</P>
<P align=justify>During 2010, we sold all of our concentrate production to one
customer. Our customer is a large international organization and our credit risk
associated with trade receivables is considered to be low. We have not
experienced any bad debts with this customer.</P>
<P align=justify>During the year ended December 31, 2009, we negotiated a
revision to the coupon rate on the Aurcana debenture receivable from 3% per year
to 1.5% in the first year and 4% per year thereafter. As a result of this
restructuring, we recorded a write-down of $2,002,000 during the year ended
December 31, 2009, including $118,000 of accrued interest and $1,884,000 on our
convertible debenture receivable. All interest payments have been received in
2010 so no further write-downs have been recorded.</P>
<P align=justify>Argentinean law states that valued added tax (&#147;VAT&#148;) paid is
recoverable once the company reaches the production stage. We commenced
production at our Pirquitas property on December 1, 2009 and as a result, we
have applied to the Argentinean government to begin to recover our VAT.</P>
<P align=justify>Our maximum exposure to credit risk in thousands of USD at
December 31, 2010 is as follows:<BR>
</P>
<TABLE
style="BORDER-COLOR: black; BORDER-COLLAPSE: collapse; FONT-SIZE: 10pt; "
border=0 cellSpacing=0 cellPadding=0 width="100%">

  <TR vAlign=top>
    <TD align=left>&nbsp; </TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="12%" align=right><B>2010</B> </TD>
    <TD  width="2%" align=left>&nbsp;</TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="12%" align=right><B>2009</B> </TD>
    <TD  width="2%" align=left>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left>&nbsp; </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="1%"
    align=left><B></B></TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="12%"
      align=right><STRONG>$</STRONG>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="2%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="1%"
    align=left><B></B></TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="12%"
      align=right><STRONG>$</STRONG>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="2%"
    align=left>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD bgColor=#e6efff align=left>Cash and cash equivalents </TD>
    <TD bgColor=#e6efff  width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="12%" align=right><B>232,311</B> </TD>
    <TD bgColor=#e6efff  width="2%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff  width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="12%" align=right>26,659 </TD>
    <TD bgColor=#e6efff  width="2%" align=left>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left>Accounts receivable </TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="12%" align=right><B>30,323</B> </TD>
    <TD  width="2%" align=left>&nbsp;</TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="12%" align=right>6,238 </TD>
    <TD  width="2%" align=left>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD bgColor=#e6efff align=left>Convertible debenture receivable </TD>
    <TD bgColor=#e6efff  width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="12%" align=right><B>6,794</B> </TD>
    <TD bgColor=#e6efff  width="2%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff  width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="12%" align=right>5,606 </TD>
    <TD bgColor=#e6efff  width="2%" align=left>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left>Value added tax recoverable </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="1%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="12%"
      align=right><B>70,782</B> </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="2%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="1%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="12%"
      align=right>54,095 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="2%"
    align=left>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD bgColor=#e6efff align=left>&nbsp; </TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" bgColor=#e6efff
    width="1%" align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" bgColor=#e6efff width="12%"
    align=right><B>340,210</B> </TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" bgColor=#e6efff
    width="2%" align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" bgColor=#e6efff
    width="1%" align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" bgColor=#e6efff width="12%"
    align=right>92,598 </TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" bgColor=#e6efff
    width="2%" align=left>&nbsp;</TD></TR></TABLE>
<p align=right>19</p>
<hr style="PAGE-BREAK-AFTER: always" align=center color=black size=5
width="100%" noshade>
<!--$$/page=-->
<a name=page_20></a>
<P align=justify><B><I>Liquidity Risk</I></B></P>
<P align=justify>Liquidity risk is the risk that we will encounter difficulty in
meeting obligations associated with financial liabilities. We have in place a
rigorous planning and budgeting process to assist in determining the funds
required to support our normal operating requirements on an ongoing basis as
well as our expansion plans. We manage liquidity risk by ensuring sufficient
resources are available to meet short-term business requirements, taking into
account our anticipated cash flows from operations and our cash and cash
equivalent balances.</P>
<P align=justify>We ensure that there is sufficient capital to meet our
long-term obligations by continuously monitoring and reviewing actual and
forecasted cash flows, and match the maturity profile of financial assets to
development, capital and operating needs. If necessary, we may raise funds
through the issuance of debt, equity, or monetization of non-core assets. We
believe our sources will be sufficient to cover our short-term and long-term
cash requirements.</P>
<P align=justify><I>Contractual obligations </I></P>
<P align=justify>We enter into contracts that give rise to commitments for
future minimum payments in the normal course of business. The following table
summarizes the remaining undiscounted contractual maturities of our financial
liabilities and operating and capital commitments, in thousands of USD, at
December 31:</P>
<TABLE
style="BORDER-COLOR: black; BORDER-COLLAPSE: collapse; FONT-SIZE: 8pt; "
border=0 cellSpacing=0 cellPadding=0 width="100%">

  <TR vAlign=top>
    <TD align=left valign="bottom">&nbsp; </TD>
    <TD  width="1%" align=left valign="bottom">&nbsp;</TD>
    <TD width="8%" align=right valign="bottom"><B>Less than</B> </TD>
    <TD  width="2%" align=left valign="bottom">&nbsp;</TD>
    <TD  width="1%" align=left valign="bottom">&nbsp;</TD>
    <TD width="8%" align=right valign="bottom"><B>1 to 3</B> </TD>
    <TD  width="2%" align=left valign="bottom">&nbsp;</TD>
    <TD  width="1%" align=left valign="bottom">&nbsp;</TD>
    <TD width="8%" align=right valign="bottom"><B>4 to 5</B> </TD>
    <TD  width="2%" align=left valign="bottom">&nbsp;</TD>
    <TD  width="1%" align=left valign="bottom">&nbsp;</TD>
    <TD width="8%" align=right valign="bottom"><B>Over 5</B> </TD>
    <TD  width="2%" align=left valign="bottom">&nbsp;</TD>
    <TD  width="1%" align=left valign="bottom">&nbsp;</TD>
    <TD width="8%" align=left valign="bottom">&nbsp; </TD>
    <TD  width="2%" align=left valign="bottom">&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left valign="bottom">&nbsp; </TD>
    <TD  width="1%" align=left valign="bottom">&nbsp;</TD>
    <TD width="8%" align=right valign="bottom"><B>1 year</B> </TD>
    <TD  width="2%" align=left valign="bottom">&nbsp;</TD>
    <TD  width="1%" align=left valign="bottom">&nbsp;</TD>
    <TD width="8%" align=right valign="bottom"><B>years</B> </TD>
    <TD  width="2%" align=left valign="bottom">&nbsp;</TD>
    <TD  width="1%" align=left valign="bottom">&nbsp;</TD>
    <TD width="8%" align=right valign="bottom"><B>years</B> </TD>
    <TD  width="2%" align=left valign="bottom">&nbsp;</TD>
    <TD  width="1%" align=left valign="bottom">&nbsp;</TD>
    <TD width="8%" align=right valign="bottom"><B>years</B> </TD>
    <TD  width="2%" align=left valign="bottom">&nbsp;</TD>
    <TD  width="1%" align=left valign="bottom">&nbsp;</TD>
    <TD width="8%" align=right valign="bottom"><B>Total</B> </TD>
    <TD  width="2%" align=left valign="bottom">&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left valign="bottom">&nbsp; </TD>
    <TD  width="1%"
    align=left valign="bottom" style="BORDER-BOTTOM: #000000 1px solid"></TD>
    <TD width="8%"
    align=right valign="bottom" style="BORDER-BOTTOM: #000000 1px solid">$&nbsp;</TD>
    <TD  width="2%"
    align=left valign="bottom" style="BORDER-BOTTOM: #000000 1px solid">&nbsp;</TD>
    <TD  width="1%"
    align=left valign="bottom" style="BORDER-BOTTOM: #000000 1px solid"></TD>
    <TD width="8%"
    align=right valign="bottom" style="BORDER-BOTTOM: #000000 1px solid">$&nbsp;</TD>
    <TD  width="2%"
    align=left valign="bottom" style="BORDER-BOTTOM: #000000 1px solid">&nbsp;</TD>
    <TD  width="1%"
    align=left valign="bottom" style="BORDER-BOTTOM: #000000 1px solid"></TD>
    <TD width="8%"
    align=right valign="bottom" style="BORDER-BOTTOM: #000000 1px solid">$&nbsp;</TD>
    <TD  width="2%"
    align=left valign="bottom" style="BORDER-BOTTOM: #000000 1px solid">&nbsp;</TD>
    <TD  width="1%"
    align=left valign="bottom" style="BORDER-BOTTOM: #000000 1px solid"></TD>
    <TD width="8%"
    align=right valign="bottom" style="BORDER-BOTTOM: #000000 1px solid">$&nbsp;</TD>
    <TD  width="2%"
    align=left valign="bottom" style="BORDER-BOTTOM: #000000 1px solid">&nbsp;</TD>
    <TD  width="1%"
    align=left valign="bottom" style="BORDER-BOTTOM: #000000 1px solid"></TD>
    <TD width="8%"
    align=right valign="bottom" style="BORDER-BOTTOM: #000000 1px solid">$&nbsp;</TD>
    <TD  width="2%"
    align=left valign="bottom" style="BORDER-BOTTOM: #000000 1px solid">&nbsp;</TD>
  </TR>
  <TR>
    <TD valign="bottom">&nbsp; </TD>
    <TD  width="1%" valign="bottom">&nbsp;</TD>
    <TD width="8%" valign="bottom">&nbsp; </TD>
    <TD  width="2%" valign="bottom">&nbsp;</TD>
    <TD  width="1%" valign="bottom">&nbsp;</TD>
    <TD width="8%" valign="bottom">&nbsp; </TD>
    <TD  width="2%" valign="bottom">&nbsp;</TD>
    <TD  width="1%" valign="bottom">&nbsp;</TD>
    <TD width="8%" valign="bottom">&nbsp; </TD>
    <TD  width="2%" valign="bottom">&nbsp;</TD>
    <TD  width="1%" valign="bottom">&nbsp;</TD>
    <TD width="8%" valign="bottom">&nbsp; </TD>
    <TD  width="2%" valign="bottom">&nbsp;</TD>
    <TD  width="1%" valign="bottom">&nbsp;</TD>
    <TD width="8%" valign="bottom">&nbsp; </TD>
    <TD  width="2%" valign="bottom">&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left valign="bottom" bgColor=#e6efff>Accounts payable and accrued liabilities</TD>
    <TD  width="1%" align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD width="8%" align=right valign="bottom" bgColor=#e6efff>32,132 </TD>
    <TD  width="2%" align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD  width="1%" align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD width="8%" align=right valign="bottom" bgColor=#e6efff>- </TD>
    <TD  width="2%" align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD  width="1%" align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD width="8%" align=right valign="bottom" bgColor=#e6efff>- </TD>
    <TD  width="2%" align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD  width="1%" align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD width="8%" align=right valign="bottom" bgColor=#e6efff>- </TD>
    <TD  width="2%" align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD  width="1%" align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD width="8%" align=right valign="bottom" bgColor=#e6efff><B>32,132</B> </TD>
    <TD  width="2%" align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left valign="bottom">Asset retirement obligations </TD>
    <TD  width="1%" align=left valign="bottom">&nbsp;</TD>
    <TD width="8%" align=right valign="bottom">952 </TD>
    <TD  width="2%" align=left valign="bottom">&nbsp;</TD>
    <TD  width="1%" align=left valign="bottom">&nbsp;</TD>
    <TD width="8%" align=right valign="bottom">2,595 </TD>
    <TD  width="2%" align=left valign="bottom">&nbsp;</TD>
    <TD  width="1%" align=left valign="bottom">&nbsp;</TD>
    <TD width="8%" align=right valign="bottom">1,674 </TD>
    <TD  width="2%" align=left valign="bottom">&nbsp;</TD>
    <TD  width="1%" align=left valign="bottom">&nbsp;</TD>
    <TD width="8%" align=right valign="bottom">21,421 </TD>
    <TD  width="2%" align=left valign="bottom">&nbsp;</TD>
    <TD  width="1%" align=left valign="bottom">&nbsp;</TD>
    <TD width="8%" align=right valign="bottom"><B>26,642</B> </TD>
    <TD  width="2%" align=left valign="bottom">&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left valign="bottom" bgColor=#e6efff>Long-term convertible note repayments
      <SUP>i)</SUP> </TD>
    <TD  width="1%" align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD width="8%" align=right valign="bottom" bgColor=#e6efff>- </TD>
    <TD  width="2%" align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD  width="1%" align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD width="8%" align=right valign="bottom" bgColor=#e6efff>138,000 </TD>
    <TD  width="2%" align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD  width="1%" align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD width="8%" align=right valign="bottom" bgColor=#e6efff>- </TD>
    <TD  width="2%" align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD  width="1%" align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD width="8%" align=right valign="bottom" bgColor=#e6efff>- </TD>
    <TD  width="2%" align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD  width="1%" align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD width="8%" align=right valign="bottom" bgColor=#e6efff><B>138,000</B> </TD>
    <TD  width="2%" align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left valign="bottom">Interest on convertible notes <SUP>i)</SUP> </TD>
    <TD  width="1%" align=left valign="bottom">&nbsp;</TD>
    <TD width="8%" align=right valign="bottom">6,210 </TD>
    <TD  width="2%" align=left valign="bottom">&nbsp;</TD>
    <TD  width="1%" align=left valign="bottom">&nbsp;</TD>
    <TD width="8%" align=right valign="bottom">15,525 </TD>
    <TD  width="2%" align=left valign="bottom">&nbsp;</TD>
    <TD  width="1%" align=left valign="bottom">&nbsp;</TD>
    <TD width="8%" align=right valign="bottom">- </TD>
    <TD  width="2%" align=left valign="bottom">&nbsp;</TD>
    <TD  width="1%" align=left valign="bottom">&nbsp;</TD>
    <TD width="8%" align=right valign="bottom">- </TD>
    <TD  width="2%" align=left valign="bottom">&nbsp;</TD>
    <TD  width="1%" align=left valign="bottom">&nbsp;</TD>
    <TD width="8%" align=right valign="bottom"><B>21,735</B> </TD>
    <TD  width="2%" align=left valign="bottom">&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left valign="bottom" bgColor=#e6efff>Capital expenditure commitments
      <SUP>ii)</SUP> </TD>
    <TD  width="1%" align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD width="8%" align=right valign="bottom" bgColor=#e6efff>874 </TD>
    <TD  width="2%" align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD  width="1%" align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD width="8%" align=right valign="bottom" bgColor=#e6efff>210 </TD>
    <TD  width="2%" align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD  width="1%" align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD width="8%" align=right valign="bottom" bgColor=#e6efff>- </TD>
    <TD  width="2%" align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD  width="1%" align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD width="8%" align=right valign="bottom" bgColor=#e6efff>- </TD>
    <TD  width="2%" align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD  width="1%" align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD width="8%" align=right valign="bottom" bgColor=#e6efff><B>1,084</B> </TD>
    <TD  width="2%" align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left valign="bottom">Operating expenditure commitments </TD>
    <TD  width="1%" align=left valign="bottom">&nbsp;</TD>
    <TD width="8%" align=right valign="bottom">8,332 </TD>
    <TD  width="2%" align=left valign="bottom">&nbsp;</TD>
    <TD  width="1%" align=left valign="bottom">&nbsp;</TD>
    <TD width="8%" align=right valign="bottom">8,854 </TD>
    <TD  width="2%" align=left valign="bottom">&nbsp;</TD>
    <TD  width="1%" align=left valign="bottom">&nbsp;</TD>
    <TD width="8%" align=right valign="bottom">- </TD>
    <TD  width="2%" align=left valign="bottom">&nbsp;</TD>
    <TD  width="1%" align=left valign="bottom">&nbsp;</TD>
    <TD width="8%" align=right valign="bottom">- </TD>
    <TD  width="2%" align=left valign="bottom">&nbsp;</TD>
    <TD  width="1%" align=left valign="bottom">&nbsp;</TD>
    <TD width="8%" align=right valign="bottom"><B>17,186</B> </TD>
    <TD  width="2%" align=left valign="bottom">&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left valign="bottom" bgColor=#e6efff>Minimum rental and lease payments </TD>
    <TD
    width="1%" align=left valign="bottom" bgColor=#e6efff style="BORDER-BOTTOM: #000000 1px solid">&nbsp;</TD>
    <TD width="8%"
    align=right valign="bottom" bgColor=#e6efff style="BORDER-BOTTOM: #000000 1px solid">520 </TD>
    <TD
    width="2%" align=left valign="bottom" bgColor=#e6efff style="BORDER-BOTTOM: #000000 1px solid">&nbsp;</TD>
    <TD
    width="1%" align=left valign="bottom" bgColor=#e6efff style="BORDER-BOTTOM: #000000 1px solid">&nbsp;</TD>
    <TD width="8%"
    align=right valign="bottom" bgColor=#e6efff style="BORDER-BOTTOM: #000000 1px solid">678 </TD>
    <TD
    width="2%" align=left valign="bottom" bgColor=#e6efff style="BORDER-BOTTOM: #000000 1px solid">&nbsp;</TD>
    <TD
    width="1%" align=left valign="bottom" bgColor=#e6efff style="BORDER-BOTTOM: #000000 1px solid">&nbsp;</TD>
    <TD width="8%"
    align=right valign="bottom" bgColor=#e6efff style="BORDER-BOTTOM: #000000 1px solid">- </TD>
    <TD
    width="2%" align=left valign="bottom" bgColor=#e6efff style="BORDER-BOTTOM: #000000 1px solid">&nbsp;</TD>
    <TD
    width="1%" align=left valign="bottom" bgColor=#e6efff style="BORDER-BOTTOM: #000000 1px solid">&nbsp;</TD>
    <TD width="8%"
    align=right valign="bottom" bgColor=#e6efff style="BORDER-BOTTOM: #000000 1px solid">- </TD>
    <TD
    width="2%" align=left valign="bottom" bgColor=#e6efff style="BORDER-BOTTOM: #000000 1px solid">&nbsp;</TD>
    <TD
    width="1%" align=left valign="bottom" bgColor=#e6efff style="BORDER-BOTTOM: #000000 1px solid">&nbsp;</TD>
    <TD width="8%"
    align=right valign="bottom" bgColor=#e6efff style="BORDER-BOTTOM: #000000 1px solid"><B>1,198</B> </TD>
    <TD
    width="2%" align=left valign="bottom" bgColor=#e6efff style="BORDER-BOTTOM: #000000 1px solid">&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left valign="bottom">&nbsp; </TD>
    <TD  width="1%"
    align=left valign="bottom" style="BORDER-BOTTOM: #000000 1px solid">&nbsp;</TD>
    <TD width="8%" align=right valign="bottom" style="BORDER-BOTTOM: #000000 1px solid">49,020    </TD>
    <TD  width="2%"
    align=left valign="bottom" style="BORDER-BOTTOM: #000000 1px solid">&nbsp;</TD>
    <TD  width="1%"
    align=left valign="bottom" style="BORDER-BOTTOM: #000000 1px solid">&nbsp;</TD>
    <TD width="8%"
      align=right valign="bottom" style="BORDER-BOTTOM: #000000 1px solid">165,862 </TD>
    <TD  width="2%"
    align=left valign="bottom" style="BORDER-BOTTOM: #000000 1px solid">&nbsp;</TD>
    <TD  width="1%"
    align=left valign="bottom" style="BORDER-BOTTOM: #000000 1px solid">&nbsp;</TD>
    <TD width="8%" align=right valign="bottom" style="BORDER-BOTTOM: #000000 1px solid">1,674    </TD>
    <TD  width="2%"
    align=left valign="bottom" style="BORDER-BOTTOM: #000000 1px solid">&nbsp;</TD>
    <TD  width="1%"
    align=left valign="bottom" style="BORDER-BOTTOM: #000000 1px solid">&nbsp;</TD>
    <TD width="8%" align=right valign="bottom" style="BORDER-BOTTOM: #000000 1px solid">21,421    </TD>
    <TD  width="2%"
    align=left valign="bottom" style="BORDER-BOTTOM: #000000 1px solid">&nbsp;</TD>
    <TD  width="1%"
    align=left valign="bottom" style="BORDER-BOTTOM: #000000 1px solid">&nbsp;</TD>
    <TD width="8%"
      align=right valign="bottom" style="BORDER-BOTTOM: #000000 1px solid"><B>237,977</B> </TD>
    <TD  width="2%"
    align=left valign="bottom" style="BORDER-BOTTOM: #000000 1px solid">&nbsp;</TD>
  </TR></TABLE><BR>
<TABLE
style="BORDER-COLOR: black; BORDER-COLLAPSE: collapse; FONT-SIZE: 10pt; "
border=0 cellSpacing=0 cellPadding=0 width="100%" BCLLIST>

  <TR>
    <TD vAlign=top width="5%">i) </TD>
    <TD>
      <P align=justify>Convertible notes are due in 2028 but are 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.</P></TD></TR>
  <TR>
    <TD vAlign=top width="5%">ii) </TD>
    <TD>
      <P align=justify>Subsequent to year end we have entered into a capital
      expenditure commitment for $11.4 million which is expected to be paid
      during 2011.</P></TD></TR></TABLE>
<P align=justify>Our operating expenditure commitments relate to contracts
entered into in the normal course of business for ongoing mining operations at
our Pirquitas mine.</P>
<P align=justify><I>Off-Balance Sheet Arrangements</I></P>
<P align=justify>We have not entered into any off-balance sheet financing
arrangements.</P>
<P align=right>20</P>
<HR style="PAGE-BREAK-AFTER: always" align=center color=black SIZE=5
width="100%" noShade>
<!--$$/page=--><A name=page_21></A>
<P align=justify><B><I>Market Risk</I></B></P>
<TABLE
style="BORDER-COLOR: black; BORDER-COLLAPSE: collapse; FONT-SIZE: 10pt; "
border=0 cellSpacing=0 cellPadding=0 width="100%" BCLLIST>

  <TR>
    <TD vAlign=top width="5%"><B><I>i)</I></B> </TD>
    <TD>
      <P align=justify><B><I>Foreign Exchange Risk</I></B></P></TD></TR>
  <TR>
    <TD width="5%">&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
  <TR>
    <TD width="5%"></TD>
    <TD>
      <P align=justify>We operate projects in seven different countries and
      therefore, foreign exchange risk exposures arise from transactions
      denominated in currencies other than our functional currency which is the
      United States dollar. Our foreign exchange risk arises primarily with
      respect to the Canadian dollar and Argentine peso.</P></TD></TR>
  <TR>
    <TD width="5%">&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
  <TR>
    <TD width="5%"></TD>
    <TD>
      <P align=justify>As at December 31, our exposure to foreign exchange risk
      in currencies other than the U.S. dollar, in thousands of USD, is as
      follows:</P></TD></TR></TABLE><BR>
<TABLE
style="BORDER-COLOR: black; BORDER-COLLAPSE: collapse; FONT-SIZE: 10pt; "
border=0 cellSpacing=0 cellPadding=0 width="100%">

  <TR vAlign=top>
    <TD align=left>&nbsp; </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="1%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="49%" colSpan=10 noWrap
    align=right><B>December 31, 2010</B> </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="2%"
    align=left>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left>&nbsp; </TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="10%" noWrap align=right><B>Cash and cash</B> </TD>
    <TD  width="2%" noWrap align=right>&nbsp;</TD>
    <TD  width="1%" noWrap align=right>&nbsp;</TD>
    <TD width="10%" noWrap align=right>&nbsp; </TD>
    <TD  width="2%" noWrap align=right>&nbsp;</TD>
    <TD  width="1%" noWrap align=right>&nbsp;</TD>
    <TD width="10%" noWrap align=right>&nbsp; </TD>
    <TD  width="2%" noWrap align=right>&nbsp;</TD>
    <TD  width="1%" noWrap align=right>&nbsp;</TD>
    <TD width="10%" noWrap align=right><B>Accounts</B> </TD>
    <TD  width="2%" align=left>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left>&nbsp; </TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="10%" noWrap align=right><B>equivalents and</B> </TD>
    <TD  width="2%" noWrap align=right>&nbsp;</TD>
    <TD  width="1%" noWrap align=right>&nbsp;</TD>
    <TD width="10%" noWrap align=right><B>Convertible</B> </TD>
    <TD  width="2%" noWrap align=right>&nbsp;</TD>
    <TD  width="1%" noWrap align=right>&nbsp;</TD>
    <TD width="10%" noWrap align=right><B>Value added</B> </TD>
    <TD  width="2%" noWrap align=right>&nbsp;</TD>
    <TD  width="1%" noWrap align=right>&nbsp;</TD>
    <TD width="10%" noWrap align=right><B>payable and</B> </TD>
    <TD  width="2%" align=left>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left>&nbsp; </TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="10%" noWrap align=right><B>restricted cash</B> </TD>
    <TD  width="2%" noWrap align=right>&nbsp;</TD>
    <TD  width="1%" noWrap align=right>&nbsp;</TD>
    <TD width="10%" noWrap align=right><B>debenture</B> </TD>
    <TD  width="2%" noWrap align=right>&nbsp;</TD>
    <TD  width="1%" noWrap align=right>&nbsp;</TD>
    <TD width="10%" noWrap align=right><B>tax recoverable</B> </TD>
    <TD  width="2%" noWrap align=right>&nbsp;</TD>
    <TD  width="1%" noWrap align=right>&nbsp;</TD>
    <TD width="10%" noWrap align=right><B>accrued liabilities</B> </TD>
    <TD  width="2%" align=left>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left>&nbsp; </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="1%"
    align=left></TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="10%"
      align=right><STRONG>$</STRONG>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="2%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="1%"
    align=left><B></B></TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="10%"
      align=right><STRONG>$</STRONG>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="2%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="1%"
    align=left><B></B></TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="10%"
      align=right><STRONG>$</STRONG>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="2%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="1%"
    align=left><B></B></TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="10%"
      align=right><STRONG>$</STRONG>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="2%"
    align=left>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD bgColor=#e6efff align=left>Argentinean peso </TD>
    <TD bgColor=#e6efff  width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="10%" align=right>9,588 </TD>
    <TD bgColor=#e6efff  width="2%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff  width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="10%" align=right>- </TD>
    <TD bgColor=#e6efff  width="2%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff  width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="10%" align=right>70,775 </TD>
    <TD bgColor=#e6efff  width="2%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff  width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="10%" align=right>(13,044</TD>
    <TD bgColor=#e6efff  width="2%" align=left>) </TD></TR>
  <TR vAlign=top>
    <TD align=left>Australian dollar </TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="10%" align=right>151 </TD>
    <TD  width="2%" align=left>&nbsp;</TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="10%" align=right>- </TD>
    <TD  width="2%" align=left>&nbsp;</TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="10%" align=right>- </TD>
    <TD  width="2%" align=left>&nbsp;</TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="10%" align=right>(12</TD>
    <TD  width="2%" align=left>) </TD></TR>
  <TR vAlign=top>
    <TD bgColor=#e6efff align=left>Canadian dollar </TD>
    <TD bgColor=#e6efff  width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="10%" align=right>164,557 </TD>
    <TD bgColor=#e6efff  width="2%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff  width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="10%" align=right>7,180 </TD>
    <TD bgColor=#e6efff  width="2%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff  width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="10%" align=right>- </TD>
    <TD bgColor=#e6efff  width="2%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff  width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="10%" align=right>(5,984</TD>
    <TD bgColor=#e6efff  width="2%" align=left>) </TD></TR>
  <TR vAlign=top>
    <TD align=left>Mexican peso </TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="10%" align=right>487 </TD>
    <TD  width="2%" align=left>&nbsp;</TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="10%" align=right>- </TD>
    <TD  width="2%" align=left>&nbsp;</TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="10%" align=right>7 </TD>
    <TD  width="2%" align=left>&nbsp;</TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="10%" align=right>(219</TD>
    <TD  width="2%" align=left>) </TD></TR>
  <TR vAlign=top>
    <TD bgColor=#e6efff align=left>Peruvian soles </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff
    width="1%" align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff width="10%"
    align=right>278 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff
    width="2%" align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff
    width="1%" align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff width="10%"
    align=right>- </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff
    width="2%" align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff
    width="1%" align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff width="10%"
    align=right>- </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff
    width="2%" align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff
    width="1%" align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff width="10%"
    align=right>(638</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff
    width="2%" align=left>) </TD></TR>
  <TR vAlign=top>
    <TD align=left>&nbsp; </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="1%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="10%"
      align=right><B>175,061</B> </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="2%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="1%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="10%"
      align=right><B>7,180</B> </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="2%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="1%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="10%"
      align=right><B>70,782</B> </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="2%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="1%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="10%"
      align=right><B>(19,897</B></TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="2%"
    align=left><B>)</B> </TD></TR></TABLE>
<P align=justify style="margin-left:5%">During the year, we recognized a foreign exchange gain of
$1,239,000 (2009 &#150; $4,993,000; 2008 -$200,000). Based on the above net exposures
at December 31, 2010, a 10% depreciation or appreciation of the above currencies
against the U.S. dollar would result in a decrease or increase, respectively, in
our net earnings by $23,313,000.</P>
<TABLE
style="BORDER-COLOR: black; BORDER-COLLAPSE: collapse; FONT-SIZE: 10pt; "
border=0 cellSpacing=0 cellPadding=0 width="100%">

  <TR vAlign=top>
    <TD  align=left >&nbsp;<STRONG><EM>ii)
      </EM></STRONG></TD>
    <TD width="94%" colSpan=2 align=left>
      <P align=justify><B><I>Interest Rate Risk</I></B> </P></TD></TR>
  <TR>
    <TD  >&nbsp;</TD>
    <TD width="5%" >
      <P align=justify></P></TD>
    <TD width="89%">
      <P align=justify></P></TD></TR>
  <TR vAlign=top>
    <TD  align=left ></TD>
    <TD width="94%" colSpan=2 align=left>
      <P align=justify>Our interest rate risk mainly arises from the interest
      rate impact on our cash and cash equivalents. Cash and cash equivalents
      earn interest based on market rates. Our convertible debenture receivable
      and long-term notes have fixed interest rates and are not therefore
      exposed to significant interest rate risk. </P></TD></TR>
  <TR>
    <TD  >&nbsp;</TD>
    <TD width="5%" >
      <P align=justify></P></TD>
    <TD width="89%">
      <P align=justify></P></TD></TR>
  <TR vAlign=top>
    <TD  align=left ></TD>
    <TD width="94%" colSpan=2 align=left>
      <P align=justify>As at December 31, 2010, the weighted average interest
      rate of our cash equivalents investment was 0.89% (2009 - 0.08%). With
      other variables unchanged, a 1% increase (decrease) in the interest rate
      would increase (decrease) our net earnings by $613,000 (2009 - $643,000).      </P></TD></TR>
  <TR>
    <TD  >&nbsp;</TD>
    <TD width="5%" >
      <P align=justify></P></TD>
    <TD width="89%">
      <P align=justify></P></TD></TR>
  <TR vAlign=top>
    <TD  align=left
      >&nbsp;<STRONG><EM>iii)</EM></STRONG></TD>
    <TD width="94%" colSpan=2 align=left>
      <P align=justify><B><I>Commodity Price Risk</I></B> </P></TD></TR>
  <TR>
    <TD  >&nbsp;</TD>
    <TD width="5%" >
      <P align=justify></P></TD>
    <TD width="89%">
      <P align=justify></P></TD></TR>
  <TR vAlign=top>
    <TD  align=left ></TD>
    <TD width="94%" colSpan=2 align=left>
      <P align=justify>Our profitability and long-term viability will depend, in
      large part, on the market price of silver, tin, and zinc. The market
      prices for these metals are volatile and are affected by numerous factors
      beyond our control, including: </P></TD></TR>
  <TR>
    <TD  align=left>&nbsp;</TD>
    <TD  width="94%" colSpan=2 align=left>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD  align=left >&nbsp;</TD>
    <TD width="5%" align=center >&#149; </TD>
    <TD width="89%" align=right>
      <P align=justify>global or regional consumption patterns; </P></TD></TR>
  <TR vAlign=top>
    <TD  align=left >&nbsp;</TD>
    <TD width="5%" align=center >&#149;</TD>
    <TD width="89%" align=right>
      <P align=justify>the supply of, and demand for, these metals; </P></TD></TR>
  <TR vAlign=top>
    <TD  align=left >&nbsp;</TD>
    <TD width="5%" align=center >&#149;</TD>
    <TD width="89%" align=right>
      <P align=justify>speculative activities; </P></TD></TR>
  <TR vAlign=top>
    <TD  align=left >&nbsp;</TD>
    <TD width="5%" align=center >&#149; </TD>
    <TD width="89%" align=right>
  <P align=justify>the availability and costs of metal substitutes;  </P></TD></TR>
  <TR vAlign=top>
    <TD  align=left >&nbsp;</TD>
    <TD align=center >&#149;</TD>
    <TD align=left>expectations for inflation; and</TD>
  </TR>
  <TR vAlign=top>
    <TD  align=left >&nbsp;</TD>
    <TD align=center >&#149;</TD>
    <TD align=left>political and economic conditions, including
  interest rates and currency values. </TD>
  </TR>
</TABLE>
<P align=right>21</P>
<HR style="PAGE-BREAK-AFTER: always" align=center color=black SIZE=5
width="100%" noShade>
<!--$$/page=--><A name=page_22></A>
<P style="MARGIN-LEFT: 5%" align=justify>We cannot predict the effect of these
factors on metal prices. A decrease in the market price of silver and other
metals would affect the profitability of the Pirquitas Project and could affect
our ability to finance the exploration and development of any of our other
mineral properties. The market price of silver and other metals may be subject
to significant fluctuations. In particular, an increase in worldwide supply, and
consequent downward pressure on prices, may result over the longer term from
increased silver production from mines developed or expanded as a result of
current metal price levels.</P>
<P align=justify><B>INTERNAL CONTROL OVER FINANCIAL REPORTING AND DISCLOSURE
CONTROLS AND PROCEDURES</B></P>
<P align=justify>Management is responsible for establishing and maintaining
adequate internal control over financial reporting and disclosure controls and
procedures. Any system of internal control over financial reporting, no matter
how well designed, has inherent limitations. Therefore, even those systems
determined to be effective can provide only reasonable assurance with respect to
financial statement preparation and presentation.</P>
<P align=justify><B><I>Management&#146;s Annual Report on Internal Control Over
Financial Reporting</I></B></P>
<P align=justify>The following report is provided by management in respect of
internal control over financial reporting (as defined in the rules of the CSA
and the SEC):</P>
<TABLE
style="BORDER-COLOR: black; BORDER-COLLAPSE: collapse; FONT-SIZE: 10pt; "
border=0 cellSpacing=0 cellPadding=0 width="100%" BCLLIST>

  <TR>
    <TD vAlign=top width="5%">(1) </TD>
    <TD>
      <P align=justify>Management is responsible for establishing and
      maintaining adequate internal control over financial reporting and
      disclosure controls and procedures. All internal control systems, no
      matter how well designed, have inherent limitations and may not prevent or
      detect misstatements. Therefore, even those systems determined to be
      effective can provide only reasonable assurance with respect to financial
      statement preparation and presentation. Also, projections of any
      evaluation of effectiveness to future periods are subject to the risk that
      controls may become inadequate because of changes in conditions, or that
      the degree of compliance with the policies or procedures may
      deteriorate.</P></TD></TR>
  <TR>
    <TD width="5%">&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
  <TR>
    <TD vAlign=top width="5%">(2) </TD>
    <TD>
      <P align=justify>Our management has used the Committee of Sponsoring
      Organizations of the Treadway Commission (COSO) framework to evaluate the
      effectiveness of our internal control over financial reporting.</P></TD></TR>
  <TR>
    <TD width="5%">&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
  <TR>
    <TD vAlign=top width="5%">(3) </TD>
    <TD>
      <P align=justify>As at December 31, 2010, management assessed the
      effectiveness of our internal control over financial reporting and
      disclosure controls and procedures and concluded that such internal
      control over financial reporting and disclosure controls and procedures
      were effective and that there were no material weaknesses in our internal
      control over financial reporting.</P></TD></TR></TABLE>
<P align=justify><B><I>Changes in Internal Control Over Financial
Reporting</I></B></P>
<P align=justify>There have been no changes in our internal control over
financial reporting during the year ended December 31, 2010, that have
materially affected, or are reasonably likely to affect our internal control
over financial reporting.</P>
<P align=right>22</P>
<HR style="PAGE-BREAK-AFTER: always" align=center color=black SIZE=5
width="100%" noShade>
<!--$$/page=--><A name=page_23></A>
<P align=justify><B>ADDITIONAL DISCLOSURES</B></P>
<P align=justify><B>Related Party Transactions</B></P>
<P align=justify>During the year ended December 31, 2010, we recorded
administrative, technical services and expense reimbursements of $31,000 (2009 -
$453,000; 2008 - $1,276,000) from companies related by common directors or
officers. At December 31, 2010, accounts receivable include $22,000 (2009 -
$35,000) from these related parties. Any amounts due from related parties are
non-interest bearing and without specific terms of repayment. Any transactions
for expense reimbursement with related parties are at normal business terms.</P>
<P align=justify><B>Significant investments accounted for by the equity
method</B></P>
<P align=justify>During the year ended December 31, 2010 we sold our
wholly-owned Snowfield and Brucejack projects to Pretium for aggregate
consideration of C$450 million, and retained an ownership interest in Pretium of
41.27% at December 31, 2010. Following the conversion of the promissory note on
January 31, 2011 in relation to the underwriters&#146; over-allotment option our
ownership interest subsequently increased to 42.31% . This investment is being
accounted for under the equity method, the following table is an estimation of
the assets and liabilities of Pretium at December 31, 2010:</P>
<DIV>
<TABLE
style="BORDER-COLOR: black; BORDER-COLLAPSE: collapse; FONT-SIZE: 10pt; "
border=0 cellSpacing=0 cellPadding=0 width="80%">

  <TR vAlign=top>
    <TD align=left valign="bottom">&nbsp; </TD>
    <TD  width="1%" align=left valign="bottom">&nbsp;</TD>
    <TD width="12%" align=right valign="bottom"><B>2010</B> </TD>
    <TD  width="2%" align=left valign="bottom">&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left valign="bottom">&nbsp; </TD>
    <TD  width="1%"
    align=left valign="bottom" style="BORDER-BOTTOM: #000000 1px solid"><B></B></TD>
    <TD width="12%"
      align=right valign="bottom" style="BORDER-BOTTOM: #000000 1px solid"><B>$(000</B></TD>
    <TD  width="2%"
    align=left valign="bottom" style="BORDER-BOTTOM: #000000 1px solid"><B>)</B> </TD>
  </TR>
  <TR vAlign=top>
    <TD align=left valign="bottom" bgColor=#e6efff>Cash and cash equivalents </TD>
    <TD  width="1%" align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD width="12%" align=right valign="bottom" bgColor=#e6efff>47,129 </TD>
    <TD  width="2%" align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left valign="bottom">Mineral properties </TD>
    <TD  width="1%" align=left valign="bottom">&nbsp;</TD>
    <TD width="12%" align=right valign="bottom">600,000 </TD>
    <TD  width="2%" align=left valign="bottom">&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left valign="bottom" bgColor=#e6efff>Future income tax liability </TD>
    <TD  width="1%" align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD width="12%" align=right valign="bottom" bgColor=#e6efff>(150,000</TD>
    <TD  width="2%" align=left valign="bottom" bgColor=#e6efff>) </TD>
  </TR>
  <TR vAlign=top>
    <TD align=left valign="bottom">Other payables </TD>
    <TD  width="1%"
    align=left valign="bottom" style="BORDER-BOTTOM: #000000 1px solid">&nbsp;</TD>
    <TD width="12%"
align=right valign="bottom" style="BORDER-BOTTOM: #000000 1px solid">(29</TD>
    <TD  width="2%"
    align=left valign="bottom" style="BORDER-BOTTOM: #000000 1px solid">) </TD>
  </TR>
  <TR vAlign=top>
    <TD align=left valign="bottom" bgColor=#e6efff>Net assets </TD>
    <TD
    width="1%" align=left valign="bottom" bgColor=#e6efff style="BORDER-BOTTOM: #000000 2px solid">&nbsp;</TD>
    <TD width="12%"
    align=right valign="bottom" bgColor=#e6efff style="BORDER-BOTTOM: #000000 2px solid">497,100 </TD>
    <TD
    width="2%" align=left valign="bottom" bgColor=#e6efff style="BORDER-BOTTOM: #000000 2px solid">&nbsp;</TD>
  </TR></TABLE></DIV><BR>
<DIV>
<TABLE
style="BORDER-COLOR: black; BORDER-COLLAPSE: collapse; FONT-SIZE: 10pt; "
border=0 cellSpacing=0 cellPadding=0 width="80%">

  <TR vAlign=top>
    <TD align=left valign="bottom"><B>Loss for the period from December 21, 2010 to December
      31, 2010</B> </TD>
    <TD  width="1%" align=left valign="bottom">&nbsp;</TD>
    <TD width="12%" align=left valign="bottom">&nbsp; </TD>
    <TD  width="2%" align=left valign="bottom">&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left valign="bottom" bgColor=#e6efff>Stock based compensation </TD>
    <TD  width="1%" align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD width="12%" align=right valign="bottom" bgColor=#e6efff>11,420 </TD>
    <TD  width="2%" align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left valign="bottom">Other </TD>
    <TD  width="1%"
    align=left valign="bottom" style="BORDER-BOTTOM: #000000 1px solid">&nbsp;</TD>
    <TD width="12%" align=right valign="bottom" style="BORDER-BOTTOM: #000000 1px solid">85</TD>
    <TD  width="2%"
    align=left valign="bottom" style="BORDER-BOTTOM: #000000 1px solid">&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left valign="bottom" bgColor=#e6efff>Net loss </TD>
    <TD
    width="1%" align=left valign="bottom" bgColor=#e6efff style="BORDER-BOTTOM: #000000 2px solid">&nbsp;</TD>
    <TD width="12%"
    align=right valign="bottom" bgColor=#e6efff style="BORDER-BOTTOM: #000000 2px solid">11,505 </TD>
    <TD
    width="2%" align=left valign="bottom" bgColor=#e6efff style="BORDER-BOTTOM: #000000 2px solid">&nbsp;</TD>
  </TR></TABLE></DIV>
<P align=justify><B>Critical Accounting Estimates</B></P>
<P align=justify>The preparation of our consolidated financial statements in
conformity with generally accepted accounting principles requires management to
use estimates and assumptions that affect the reported amounts of assets and
liabilities, as well as revenues and expenses. Our accounting policies are
described in note 2 of our 2010 audited annual consolidated financial
statements.</P>
<P align=justify><I>Review of asset carrying values and impairment</I></P>
<P align=justify>We regularly review the net carrying value of each mineral
property for conditions that suggest impairment. This review requires
significant judgment where we do not have any proven and probable reserves that
would enable us to estimate future cash flows to be compared to the carrying
values. Factors considered in the assessment of asset impairment include, but
are not limited to, whether there has been a significant decrease in the market
price of the property; whether there has been a significant adverse change in
the legal, regulatory, accessibility, title, environmental or political factors
that could affect the property&#146;s value; whether there has been an accumulation
of costs significantly in excess of the amounts originally expected for the
property&#146;s acquisition, development or cost of holding; whether exploration activities produced results that are not promising such that no
more work is being planned in the foreseeable future and whether the company has
the necessary funds to be able to maintain its interest in the mineral
property.</P>
<P align=right>23</P>
<HR style="PAGE-BREAK-AFTER: always" align=center color=black SIZE=5
width="100%" noShade>
<!--$$/page=--><A name=page_24></A>
<P align=justify>Where we do have proven and probable reserves, as is now the
case at our Pirquitas property, the expected undiscounted future cash flows from
an asset are compared to its carrying value. These future cash flows are
developed from models using assumptions that reflect the long-term operating
plans for an asset given our best estimate of the most probable set of economic
conditions. Commodity prices used reflect market conditions at the time the
models are developed. These models are updated from time to time, and lower
prices are used should market conditions deteriorate. Inherent in these
assumptions are significant risks and uncertainties.</P>
<P align=justify><I>Stock-based compensation</I></P>
<P align=justify>We provide compensation benefits to our employees, directors,
officers and consultants through a stock option plan. The fair value of each
option award is estimated on the date of the grant using the Black-Scholes
option pricing model. Expected volatility is based on historical volatility of
our share price. We utilize historical data to estimate option exercises and
forfeiture behaviour with the valuation model. The risk-free rate for the
expected term of the option is based on the Government of Canada yield curve in
effect at the time of the grant.</P>
<P align=justify><I>Asset Retirement Obligations</I></P>
<P align=justify>The amounts recorded for asset retirement costs are based on
estimates included in closure and remediation plans. These estimates are based
on engineering studies of the work that is required by environmental laws or
public statements by management which results in an obligation. These estimates
include an assumption on the rate at which costs may inflate in future periods.
Actual costs and the timing of expenditures could differ from these
estimates.</P>
<P align=justify><I>Income and Resource Taxes</I></P>
<P align=justify>The determination of our future tax liabilities and assets
involves significant management estimation and judgment involving a number of
assumptions. In determining these amounts we interpret tax legislation in a
variety of jurisdictions and make estimates of the expected timing of the
reversal of future tax assets and liabilities. We also make estimates of our
future earnings which affect the extent to which potential future tax benefits
may be used. We are subject to assessment by various taxation authorities, which
may interpret tax legislation in a manner different from our view. These
differences may affect the final amount or the timing of the payment of taxes.
When such differences arise we make provision for such items based on our best
estimate of the final outcome of these matters.</P>
<P align=justify><I>Determination of ore reserve and mineral resource
estimates</I></P>
<P align=justify>The Company estimates its ore reserves and mineral resources
based on information compiled by Competent Persons as defined by NI 43-101.
Reserves determined in this way are used in the calculation of depreciation,
amortisation and impairment charges, and for forecasting the timing of the
payment of close down and restoration costs. In assessing the life of a mine for
accounting purposes, mineral resources are only taken into account where there
is a high degree of confidence of economic extraction.There are numerous
uncertainties inherent in estimating ore reserves, and assumptions that are
valid at the time of estimation may change significantly when new information
becomes available. Changes in the forecast prices of commodities, exchange
rates, production costs or recovery rates may change the economic status of
reserves and may, ultimately, result in reserves being restated. Such changes in
reserves could impact on depreciation and amortisation rates, asset carrying
values and provisions for close down and restoration costs.</P>
<P align=right>24</P>
<HR style="PAGE-BREAK-AFTER: always" align=center color=black SIZE=5
width="100%" noShade>
<!--$$/page=--><A name=page_25></A>
<P align=justify><I>Determination of useful lives of property, plant and
equipment </I></P>
<P align=justify>The Company uses the units of production method to depreciate
mineral property expenditure, whereby depreciation is calculated using the
tonnage of ore extracted from the mine in the period as a percentage of the
total tonnage of ore expected to be extracted in current and future periods
based on proven and probable reserves. As noted above there are numerous
uncertainties inherent in estimating ore reserves which is fundamental to this
calculation.</P>
<P align=justify><I>Valuation of inventory </I></P>
<P align=justify>Stockpiled ore, work in process and finished goods are valued
at the lower of cost and net realizable value (&#147;NRV&#148;). NRV is calculated as the
estimated price at the time of sale based on prevailing and future metal prices
less estimated future production costs to convert the inventory into saleable
form. The determination of both estimated future sales price and production
costs requires significant assumptions that may significantly imapct the stated
value of the Company&#146;s inventory.</P>
<P align=justify><I>Valuation of financial instruments</I></P>
<P align=justify>Under generally accepted accounting principles we are required
to determine the valuation of our convertible debenture receivable, convertible
notes (at inception), and the embedded derivatives within our sales contracts.
The convertible debenture and notes required discounted cash flow analyses and
option pricing models that involve various estimates and assumptions, whilst the
valuation of the revenue derivatives requires estimates of settlement dates and
forward commodity prices.</P>
<P align=justify><B>Changes in Accounting Policies</B></P>
<P align=justify><B><I>Business combinations and related sections</I></B></P>
<P align=justify>Effective January 1, 2010, we elected to adopt Chartered
Accountants Handbook (&#147;CICA&#148;) Handbook Sections 1582, &#147;Business Combinations&#148;,
1601, &#147;Consolidated Financial Statements&#148;, and 1602 &#147;Non-Controlling Interests&#148;
on a prospective basis. The adoption of these standards required us to record
our investment in Pretium initially at fair value, and present non-controlling
interest within shareholders&#146; equity on the balance sheet.</P>
<P align=justify><B><I>Financial Instruments</I></B></P>
<P align=justify>Amendments to Canadian Institute of Chartered Accountants
Handbook (&#147;CICA&#148;) Handbook Section 3855, &#147;Financial Instruments &#150; Recognition
and Measurement&#148;, 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. We have elected to
adopt this standard on a prospective basis effective January 1, 2010. The
adoption of these amendments did not have a material impact on our consolidated
financial statements.</P>
<P align=justify><B>Recent Accounting Pronouncements</B></P>
<P align=justify>Recent accounting pronouncements issued which may impact us in
the future are as follows:</P>
<P align=justify><B>International Financial Reporting Standards (&#147;IFRS&#148;)</B></P>
<P align=justify>In February 2008, the CICA announced that publicly accountable
enterprises will be required to transition from Canadian GAAP to IFRS for
interim and annual financial statements effective for fiscal years beginning on
or after January 1, 2011. This includes a requirement to present comparative
financial information in accordance with IFRS for 2010. Accordingly, our
first interim consolidated financial statements will be presented in accordance
with IFRS for the three months ending March 31, 2011 with 2010 comparative
results.</P>
<P align=right>25</P>
<HR style="PAGE-BREAK-AFTER: always" align=center color=black SIZE=5
width="100%" noShade>
<!--$$/page=--><A name=page_26></A>
<P align=justify>The following table provides a summary of our changeover plan,
the key activities involved, and the current status of these tasks:</P>
<table width="100%"
border="0" cellpadding="0" cellspacing="0"
style="BORDER-COLOR: black; BORDER-COLLAPSE: collapse; FONT-SIZE: 10pt; ">
  <tr valign="top">
    <td
    style="BORDER-BOTTOM: #000000 1px solid; BORDER-LEFT: #000000 1px solid; BORDER-TOP: #000000 1px solid"
    colspan="2" align="left"><b>Key Activities</b> </td>
    <td
    style="BORDER-BOTTOM: #000000 1px solid; BORDER-LEFT: #000000 1px solid; BORDER-TOP: #000000 1px solid; BORDER-RIGHT: #000000 1px solid" colspan="2" align="left"><b>Current Status</b> </td>
  </tr>
  <tr valign="top">
    <td style="BORDER-LEFT: #000000 1px solid" colspan="2"
      align="left"><b><i>Financial Reporting</i></b> </td>
    <td style="BORDER-LEFT: #000000 1px solid" align="left">&nbsp;</td>
    <td style="BORDER-RIGHT: #000000 1px solid" align="left">&nbsp;</td>
  </tr>
  <tr valign="top">
    <td style="BORDER-LEFT: #000000 1px solid" align="left">&#149; </td>
    <td align="left">Analyze and select accounting policies where
      alternatives are permitted, including IFRS 1 elections </td>
    <td style="BORDER-LEFT: #000000 1px solid" align="left">&#149; </td>
    <td style="BORDER-RIGHT: #000000 1px solid" align="left">Company
      has completed selection of accounting policies and IFRS 1 elections,
      pending audit committee approval. </td>
  </tr>
  <tr>
    <td style="BORDER-LEFT: #000000 1px solid">&nbsp;</td>
    <td>&nbsp;</td>
    <td style="BORDER-LEFT: #000000 1px solid">&nbsp;</td>
    <td style="BORDER-RIGHT: #000000 1px solid">&nbsp;</td>
  </tr>
  <tr valign="top">
    <td width="5%" align="left" style="BORDER-LEFT: #000000 1px solid">&#149; </td>
    <td width="45%" align="left">Quantify key differences for opening balance
      sheet </td>
    <td width="5%" align="left" style="BORDER-LEFT: #000000 1px solid">&#149; </td>
    <td style="BORDER-RIGHT: #000000 1px solid"
      align="left">Quantification of key differences for opening balance sheet is
      in the process of being finalised (see below). </td>
  </tr>
  <tr valign="top">
    <td style="BORDER-LEFT: #000000 1px solid" align="left">&#149; </td>
    <td align="left">Identify and quantify impact on taxation </td>
    <td style="BORDER-LEFT: #000000 1px solid" align="left">&nbsp;</td>
    <td style="BORDER-RIGHT: #000000 1px solid" align="left">&nbsp;</td>
  </tr>
  <tr valign="top">
    <td style="BORDER-LEFT: #000000 1px solid" align="left"></td>
    <td align="left"></td>
    <td style="BORDER-LEFT: #000000 1px solid" align="left">&#149; </td>
    <td style="BORDER-RIGHT: #000000 1px solid" align="left">We have
      completed a preliminary quantification of tax impacts, pending
      finalisation of the opening balance sheet. </td>
  </tr>
  <tr>
    <td style="BORDER-LEFT: #000000 1px solid">&nbsp;</td>
    <td>&nbsp;</td>
    <td style="BORDER-LEFT: #000000 1px solid">&nbsp;</td>
    <td style="BORDER-RIGHT: #000000 1px solid">&nbsp;</td>
  </tr>
  <tr valign="top">
    <td style="BORDER-LEFT: #000000 1px solid" align="left">&#149; </td>
    <td align="left">Prepare IFRS consolidated financial statements,
      including IFRS 1 reconciliations </td>
    <td style="BORDER-LEFT: #000000 1px solid" align="left">&#149; </td>
    <td style="BORDER-RIGHT: #000000 1px solid" align="left">Draft
      consolidated financial statement disclosures are subject to finalization
      of final policies. </td>
  </tr>
  <tr>
    <td style="BORDER-LEFT: #000000 1px solid">&nbsp;</td>
    <td>&nbsp;</td>
    <td style="BORDER-LEFT: #000000 1px solid">&nbsp;</td>
    <td style="BORDER-RIGHT: #000000 1px solid">&nbsp;</td>
  </tr>
  <tr valign="top">
    <td style="BORDER-LEFT: #000000 1px solid" align="left"></td>
    <td align="left"></td>
    <td style="BORDER-LEFT: #000000 1px solid" align="left">&#149; </td>
    <td style="BORDER-RIGHT: #000000 1px solid" align="left">IFRS 1
      reconciliations drafted and awaiting completion of final quantification of
      differences. </td>
  </tr>
  <tr>
    <td style="BORDER-LEFT: #000000 1px solid">&nbsp;</td>
    <td>&nbsp;</td>
    <td style="BORDER-LEFT: #000000 1px solid">&nbsp;</td>
    <td style="BORDER-RIGHT: #000000 1px solid">&nbsp;</td>
  </tr>
  <tr>
    <td
      style="BORDER-BOTTOM: #000000 1px solid; BORDER-LEFT: #000000 1px solid">&#149; </td>
    <td style="BORDER-BOTTOM: #000000 1px solid">Quantify key
      differences for 2010 quarterly comparatives </td>
    <td style="BORDER-BOTTOM: #000000 1px solid; BORDER-LEFT: #000000 1px solid">&#149; </td>
    <td
    style="BORDER-BOTTOM: #000000 1px solid; BORDER-RIGHT: #000000 1px solid">Quantification of key differences for comparatives is in
      progress. </td>
  </tr>
  <tr valign="top">
    <td style="BORDER-LEFT: #000000 1px solid" colspan="2"
      align="left"><b><i>Training</i></b> </td>
    <td style="BORDER-LEFT: #000000 1px solid" align="left">&nbsp;</td>
    <td style="BORDER-RIGHT: #000000 1px solid" align="left">&nbsp;</td>
  </tr>
  <tr valign="top">
    <td style="BORDER-LEFT: #000000 1px solid" align="left">&#149; </td>
    <td align="left">Provide technical training to key finance
      personnel and accounting personnel at all site locations </td>
    <td style="BORDER-LEFT: #000000 1px solid" align="left">&#149; </td>
    <td style="BORDER-RIGHT: #000000 1px solid"
      align="left">Training program complete including Audit Committee members,
      and sufficient internal expertise available. </td>
  </tr>
  <tr>
    <td style="BORDER-LEFT: #000000 1px solid">&nbsp;</td>
    <td>&nbsp;</td>
    <td style="BORDER-LEFT: #000000 1px solid">&nbsp;</td>
    <td style="BORDER-RIGHT: #000000 1px solid">&nbsp;</td>
  </tr>
  <tr valign="top">
    <td style="BORDER-BOTTOM: #000000 1px solid; BORDER-LEFT: #000000 1px solid"
    align="left"></td>
    <td style="BORDER-BOTTOM: #000000 1px solid" align="left"></td>
    <td style="BORDER-BOTTOM: #000000 1px solid; BORDER-LEFT: #000000 1px solid" align="left">&#149; </td>
    <td
    style="BORDER-BOTTOM: #000000 1px solid; BORDER-RIGHT: #000000 1px solid" align="left">Specific training will be provided on an as-needed
      basis during 2011 and thereafter. </td>
  </tr>
  <tr valign="top">
    <td style="BORDER-LEFT: #000000 1px solid" colspan="2"
      align="left"><b><i>Business Activities</i></b> </td>
    <td style="BORDER-LEFT: #000000 1px solid" align="left">&nbsp;</td>
    <td style="BORDER-RIGHT: #000000 1px solid" align="left">&nbsp;</td>
  </tr>
  <tr valign="top">
    <td style="BORDER-LEFT: #000000 1px solid" align="left">&#149; </td>
    <td align="left">Assess impact of conversion on budgeting and
      forecasts </td>
    <td style="BORDER-LEFT: #000000 1px solid" align="left">&#149; </td>
    <td style="BORDER-RIGHT: #000000 1px solid"
      align="left">Internal reviews are underway and will be concluded in 2011
      once all differences are finalised. </td>
  </tr>
  <tr>
    <td
      style="BORDER-BOTTOM: #000000 1px solid; BORDER-LEFT: #000000 1px solid">&nbsp;</td>
    <td style="BORDER-BOTTOM: #000000 1px solid">&nbsp;</td>
    <td style="BORDER-BOTTOM: #000000 1px solid; BORDER-LEFT: #000000 1px solid">&nbsp;</td>
    <td
    style="BORDER-BOTTOM: #000000 1px solid; BORDER-RIGHT: #000000 1px solid">&nbsp;</td>
  </tr>
  <tr valign="top">
    <td style="BORDER-LEFT: #000000 1px solid" colspan="2"
      align="left"><b><i>Control Environment</i></b> </td>
    <td style="BORDER-LEFT: #000000 1px solid" align="left">&nbsp;</td>
    <td style="BORDER-RIGHT: #000000 1px solid" align="left">&nbsp;</td>
  </tr>
  <tr valign="top">
    <td style="BORDER-LEFT: #000000 1px solid" align="left">&#149; </td>
    <td align="left">Maintain effective controls throughout the IFRS
      conversion process </td>
    <td style="BORDER-LEFT: #000000 1px solid" align="left">&#149; </td>
    <td style="BORDER-RIGHT: #000000 1px solid"
      align="left">Controls have been maintained through the conversion process. </td>
  </tr>
  <tr valign="top">
    <td style="BORDER-BOTTOM: #000000 1px solid; BORDER-LEFT: #000000 1px solid"
    align="left">&#149; </td>
    <td style="BORDER-BOTTOM: #000000 1px solid" align="left">Revise
      control environment for changes in processes and controls as a result of
      transition to IFRS </td>
    <td style="BORDER-BOTTOM: #000000 1px solid; BORDER-LEFT: #000000 1px solid" align="left">&#149; </td>
    <td
    style="BORDER-BOTTOM: #000000 1px solid; BORDER-RIGHT: #000000 1px solid" align="left">Assessment of controls surrounding IFRS conversion
      process regarding SOX compliance is underway and being documented. </td>
  </tr>
  <tr valign="top">
    <td style="BORDER-LEFT: #000000 1px solid" colspan="2"
      align="left"><b><i>Financial Information Systems</i></b> </td>
    <td style="BORDER-LEFT: #000000 1px solid" align="left">&nbsp;</td>
    <td style="BORDER-RIGHT: #000000 1px solid" align="left">&nbsp;</td>
  </tr>
  <tr valign="top">
    <td style="BORDER-LEFT: #000000 1px solid" align="left">&#149; </td>
    <td align="left">Determine and implement solution for capturing
      IFRS information throughout 2010 while still reporting in Canadian GAAP
      (i.e. for comparative period) </td>
    <td style="BORDER-LEFT: #000000 1px solid" align="left">&#149; </td>
    <td style="BORDER-RIGHT: #000000 1px solid" align="left">IFRS
      information will be maintained on spreadsheets through 2010 for opening
      balances and comparatives. <br />
            <br /></td>
  </tr>
  <tr valign="top">
    <td style="BORDER-BOTTOM: #000000 1px solid; BORDER-LEFT: #000000 1px solid"
    align="left">&#149; </td>
    <td style="BORDER-BOTTOM: #000000 1px solid"
      align="left">Identify impact on financial systems and changes required </td>
    <td style="BORDER-BOTTOM: #000000 1px solid; BORDER-LEFT: #000000 1px solid" align="left">&#149; <br />
        <br />
        <br />
      &#149; <br /></td>
    <td
    style="BORDER-BOTTOM: #000000 1px solid; BORDER-RIGHT: #000000 1px solid" align="left"><p>Our system for recording stock based compensation expense has had an IFRS module implemented and tested. </p>
        <p>No additional system requirements needed at current time. <br />
            <br />
      </p></td>
  </tr>
</table>
<p align=right>26</p>
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width="100%" noshade>
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<a name=page_27></a>
<P align=justify>As at December 31, 2010, we have completed our scoping,
planning, design, solution development and implementation.</P>
<P align=justify>We have identified key areas where changes in accounting policy
are required on our transition from Canadian GAAP to IFRS listed below. This
list is intended to highlight the areas that we have determined to be the most
significant that will result from the transition to IFRS. We have not yet
finalised the impact of these changes on our consolidated statement of income
(loss), consolidated balance sheet, or cash flow statement and will only be
reporting quantified differences once approved by the Audit Committee. The IASB
has significant ongoing projects that could affect the ultimate differences
between Canadian GAAP and IFRS and these changes may have a material effect on
the Company&#146;s consolidated financial statements.</P>
<P align=justify><B><I>First-time adoption of IFRS</I></B></P>
<P align=justify>IFRS 1, &#147;First time adoption of International Financial
Reporting Standards&#148;, generally requires that all IFRS standards and
interpretations be accounted for on a retrospective basis. IFRS 1 provides for
certain optional exemptions and other mandatory exceptions to this general
principal. The most significant IFRS optional exemptions which we expect to be
applying are:</P>
<DIV>
<TABLE
style="BORDER-COLOR: black; BORDER-COLLAPSE: collapse; FONT-SIZE: 10pt; "
border=1 cellSpacing=0 borderColor=#000000 cellPadding=3 width="100%">

  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left
      ><B>Exemption</B> </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="75%"
      align=left><B>Summary of exemption and decision</B> </TD></TR>
  <TR vAlign=top>
    <TD align=left >IFRS 2, Share-based payments </TD>
    <TD width="75%" align=left>
      <P align=justify>Full retrospective application is avoided for certain
      share-based instruments depending on the grant date, vesting terms and
      settlement of any related liabilities. </P></TD></TR>
  <TR vAlign=top>
    <TD align=left >IFRS 3, Business Combinations </TD>
    <TD width="75%" align=left>
      <P align=justify>Allows an entity that has conducted prior business
      combinations to apply IFRS 3 on a prospective basis from the date of
      transition. This avoids the requirement to restate prior business
      combinations. </P></TD></TR>
  <TR vAlign=top>
    <TD align=left >IAS 21, Cumulative Translation Differences
</TD>
    <TD width="75%" align=left>
      <P align=justify>Allows an entity to deem all cumulative translation
      differences to be zero at the date of transition. </P></TD></TR>
  <TR vAlign=top>
    <TD align=left >IAS 23, Borrowing Costs </TD>
    <TD width="75%" align=left>
      <P align=justify>This exemption allows a first time adopter to apply IAS
      23(revised) from the date of transition to IFRS for all qualifying assets
      for which the capitalization start date is on or after that date.
  </P></TD></TR>
  <TR vAlign=top>
    <TD align=left >IFRIC 1, Decommissioning liabilities </TD>
    <TD width="75%" align=left>
      <P align=justify>This exemption allows a first time adopter to utilize a
      more straightforward methodology for measuring the liability and cost of
      the related asset. </P></TD></TR>
  <TR vAlign=top>
    <TD align=left >Fair value as deemed cost </TD>
    <TD width="75%" align=left>
      <P align=justify>An entity can elect to measure an asset at the date of
      transition to IFRS at its fair value, and use that fair value as its
      deemed cost at that date. </P></TD></TR></TABLE></DIV>
<P align=justify><B><I>Functional currency and foreign currency exchange
translation</I></B></P>
<P align=justify>Canadian GAAP requires an entity to determine the functional
currency of the parent company and then determine whether a subsidiary is an
integrated or self-sustaining entity. This determination dictates the method of
foreign exchange translation for the consolidated financial statements.</P>
<P align=right>27</P>
<HR style="PAGE-BREAK-AFTER: always" align=center color=black SIZE=5
width="100%" noShade>
<!--$$/page=--><A name=page_28></A>
<P align=justify>IFRS requires functional currency to be assessed independently
for each entity within a consolidated group and introduces the concept of
primary and secondary factors to help determine the functional currency.</P>
<P align=justify>This difference of approach resulted in differences for three
of our subsidiaries, which will have an impact on foreign exchange gains or
losses recognized in income and equity. Further, we have elected to apply the
exemption above, such that the cumulative translation account will be
reclassified to retained earnings on the date of transition. The impact is an
increased property, plant and equipment balance of approximately $5 million,
with the difference being credited to retained earnings.</P>
<P align=justify><B><I>Fixed assets at deemed cost</I></B></P>
<P align=justify>We have made a preliminary determination that it is appropriate
to elect that the fair value of all the assets relating to the Pirquitas mine be
the deemed cost upon transition to IFRS. At December 31, 2010 we are in the
process of finalising our assessment of the fair value; any difference between
the carrying amounts under Canadian GAAP and the IFRS deemed cost will be taken
to retained earnings at the transition date.</P>
<P align=justify><B><I>Asset Impairment </I></B></P>
<P align=justify>Both Canadian GAAP and IFRS require an entity to undertake
impairment testing where there is an indication of impairment. Annual impairment
tests are required for goodwill and indefinite-lived intangible assets. </P>
<P align=justify>Canadian GAAP provides a two-step approach to testing a
long-lived asset for impairment if an indication of impairment exists. The first
step is a test for recoverability whereby the carrying value is compared to the
undiscounted cash flows that the asset is expected to generate. If the
undiscounted cash flows exceed the carrying amount, then no impairment charge is
necessary. If the undiscounted cash flows are lower than the carrying amount of
the asset, then the asset is written down to the estimated fair value,
determined based on the discounted cash flows.</P>
<P align=justify>Under IFRS, if there is an indication of impairment the entity
must compare the carrying value of the asset or cash generating unit (&#147;CGU&#148;) to
the recoverable amount. Recoverable amount is defined as the higher of an asset
or CGU&#146;s fair value less costs to sell and its value in use. Value in use is the
present value of the future cash flows expected to be derived from an asset or
CGU. An impairment loss is recognized to the extent that the carrying value
exceeds the recoverable amount. Unlike Canadian GAAP, IFRS requires impairment
charges to be reversed if the circumstances leading to the impairment no longer
exist.</P>
<P align=justify>We have assessed impairment indicators under IFRS as at the
date of transition for all of our exploration projects and concluded that there
were no such indicators, which was consistent with Canadian GAAP.</P>
<P align=justify><B><I>Provision for reclamation and rehabilitation</I></B></P>
<P align=justify>The primary differences between IFRS and Canadian GAAP for
reclamation and rehabilitation provisions include the basis of estimation for
undiscounted cash flows, the discount rate used, the frequency of liability
re-measurement, and recognition of a liability when a constructive obligation
exists.</P>
<P align=justify>Canadian GAAP requires the estimate of undiscounted cash flows
to be based on the amount that a third party would demand to assume the
obligation, whereas IFRS focuses on the use of management&#146;s best estimate of the
expenditures required to settle the obligation. The recognition principle is
also broadened with the implementation of IFRS, which requires that a liability
be recorded if there is a legal or constructive obligation, where Canadian GAAP
requires a liability to be recognized when there is a legal obligation.These
GAAP difference have not had a significant impact on our estimates.</P>
<P align=right>28</P>
<HR style="PAGE-BREAK-AFTER: always" align=center color=black SIZE=5
width="100%" noShade>
<!--$$/page=--><A name=page_29></A>
<P align=justify>The discount rate used to determine the present value of the
expenditures for Canadian GAAP is the credit-adjusted risk free rate for the
entity. IFRS requires the use of a discount rate that reflects the risks
specific to the liability.</P>
<P align=justify>In accordance with Canadian GAAP, our provision for reclamation
and rehabilitation is re-measured when there is a change in the amount or timing
of cash flows required to settle the obligation. IFRS requires the
re-measurement of the liability at each reporting date. Although this
calculation will occur more frequently, it will result in a simplification of
the process due to the removal of the layering effect under Canadian GAAP. The
impact is expected to decrease the liability by approximately $1 million.</P>
<P align=justify><B><I>Convertible notes</I></B></P>
<P align=justify>Under Canadian GAAP the convertible notes were considered to
have an embedded share purchase option which was valued separately from the debt
component and the value attributed to shareholders&#146; equity. Following assessment
of the terms of the convertible notes under IFRS it was concluded that the
embedded share purchase option should be classified as a derivative liability.
This change in accounting methodology impacts the classification and measurement
of the instrument. We are in the process of finalizing our determination of the
valuation of the instrument.</P>
<P align=justify><B><I>Share based payments</I></B></P>
<P align=justify>Canadian GAAP requires that share based payments are measured
at fair value and an expense recorded over the vesting period of the instrument.
Our accounting policy under IFRS is largely consistent with Canadian GAAP except
for the initial inclusion of a forfeiture rate in the fair value estimation, and
small changes to the initial valuation of tranches of options that vest over
different periods. We have determined the impact of these changes on our
consolidated financial statements at the date of transition to IFRS is not
significant.</P>
<P align=justify><B><I>Income Taxes</I></B></P>
<P align=justify>There are a number of GAAP differences related to income taxes,
the most significant being the calculation of temporary differences on
non-monetary items and the initial recognition exemption on an asset
acquisition.</P>
<P align=justify>Under Canadian GAAP, deferred tax balances are calculated in
the currency in which the taxes are denominated and then converted to the
accounting presentation currency at the current rate. IFRS requires that
deferred taxes be determined in an entity&#146;s functional accounting currency. The
different treatment under IFRS results in a measurement difference for deferred
taxes on monetary items where an entity&#146;s tax and accounting functional
currencies differ. This GAAP difference has impacted several of our
subsidiaries.</P>
<P align=justify>IFRS provides an initial recognition exemption such that a
deferred tax asset or liability is not recognized in the event it arises from
initial recognition of an asset or liability acquired outside of a business
combination. This exemption does not exist in Canadian GAAP. The difference is
expected to result in the derecognition of the deferred tax liability and
corresponding asset in the range of $35 &#150; $40 million, the future income tax
impact on the aforementioned expected adjustments which are currently under
review are not quantifiable at this time.</P>
<P align=justify>The discussion above on IFRS outlines to the reader our IFRS
conversion project and the potential effect on the consolidated financial
statements. This information does not represent the official adoption of IFRS by
the Company and is intended only to provide an indication of the major
differences identified to date based on current IFRS guidance. The proposed IFRS
1 optional exemptions, the selection of IFRS accounting policies and any related
adjustments to the consolidated financial statements are in the process of being
finalised and audited. As a result, the discussion noted above
is subject to change and any resulting impact to current reported amounts may be
significantly different from preliminary assessments.</P>
<P align=right>29</P>
<HR style="PAGE-BREAK-AFTER: always" align=center color=black SIZE=5
width="100%" noShade>
<!--$$/page=--><A name=page_30></A>
<P align=justify><B>Outstanding Share Data</B></P>
<P align=justify>The authorized capital consists of unlimited common shares
without par value. As at February 28, 2011, the following common shares, options
and share purchase warrants were outstanding: </P>
<TABLE
style="BORDER-COLOR: black; BORDER-COLLAPSE: collapse; FONT-SIZE: 10pt; "
border=0 cellSpacing=0 cellPadding=0 width="100%">

  <TR vAlign=top>
    <TD align=left valign="bottom">&nbsp; </TD>
    <TD  width="1%" align=left valign="bottom">&nbsp;</TD>
    <TD width="15%" align=right valign="bottom" nowrap><B>Number of</B> </TD>
    <TD  width="2%" align=left valign="bottom">&nbsp;</TD>
    <TD  width="1%" align=left valign="bottom">&nbsp;</TD>
    <TD width="15%" align=right valign="bottom" nowrap><B>Exercise</B> </TD>
    <TD  width="2%" align=left valign="bottom">&nbsp;</TD>
    <TD  width="1%" align=left valign="bottom">&nbsp;</TD>
    <TD width="15%" align=right valign="bottom" nowrap><B>Remaining</B> </TD>
    <TD  width="2%" align=left valign="bottom">&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left valign="bottom">&nbsp; </TD>
    <TD  width="1%" align=left valign="bottom">&nbsp;</TD>
    <TD width="15%" align=right valign="bottom"><B>Shares</B> </TD>
    <TD  width="2%" align=left valign="bottom">&nbsp;</TD>
    <TD  width="1%" align=left valign="bottom">&nbsp;</TD>
    <TD width="15%" align=right valign="bottom"><B>Price</B> </TD>
    <TD  width="2%" align=left valign="bottom">&nbsp;</TD>
    <TD  width="1%" align=left valign="bottom">&nbsp;</TD>
    <TD width="15%" align=right valign="bottom"><B>Life</B> </TD>
    <TD  width="2%" align=left valign="bottom">&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left valign="bottom" style="BORDER-BOTTOM: #000000 1px solid">&nbsp; </TD>
    <TD  width="1%"
    align=left valign="bottom" style="BORDER-BOTTOM: #000000 1px solid">&nbsp;</TD>
    <TD width="15%" align=left valign="bottom" style="BORDER-BOTTOM: #000000 1px solid">&nbsp;    </TD>
    <TD  width="2%"
    align=left valign="bottom" style="BORDER-BOTTOM: #000000 1px solid">&nbsp;</TD>
    <TD  width="1%"
    align=left valign="bottom" style="BORDER-BOTTOM: #000000 1px solid">&nbsp;</TD>
    <TD width="15%"
      align=right valign="bottom" style="BORDER-BOTTOM: #000000 1px solid"><B>C$</B> </TD>
    <TD  width="2%"
    align=left valign="bottom" style="BORDER-BOTTOM: #000000 1px solid">&nbsp;</TD>
    <TD  width="1%"
    align=left valign="bottom" style="BORDER-BOTTOM: #000000 1px solid">&nbsp;</TD>
    <TD width="15%"
      align=right valign="bottom" style="BORDER-BOTTOM: #000000 1px solid"><B>(years)</B> </TD>
    <TD  width="2%"
    align=left valign="bottom" style="BORDER-BOTTOM: #000000 1px solid">&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left valign="bottom" bgColor=#e6efff>Capital stock </TD>
    <TD  width="1%" align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD width="15%" align=right valign="bottom" bgColor=#e6efff>79,875,873 </TD>
    <TD  width="2%" align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD  width="1%" align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD width="15%" align=left valign="bottom" bgColor=#e6efff>&nbsp; </TD>
    <TD  width="2%" align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD  width="1%" align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD width="15%" align=left valign="bottom" bgColor=#e6efff>&nbsp; </TD>
    <TD  width="2%" align=left valign="bottom" bgColor=#e6efff>&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left valign="bottom" style="BORDER-BOTTOM: #000000 1px solid">Stock options </TD>
    <TD  width="1%"
    align=left valign="bottom" style="BORDER-BOTTOM: #000000 1px solid">&nbsp;</TD>
    <TD width="15%"
      align=right valign="bottom" style="BORDER-BOTTOM: #000000 1px solid">4,569,038 </TD>
    <TD  width="2%"
    align=left valign="bottom" style="BORDER-BOTTOM: #000000 1px solid">&nbsp;</TD>
    <TD  width="1%"
    align=left valign="bottom" style="BORDER-BOTTOM: #000000 1px solid">&nbsp;</TD>
    <TD width="15%" align=right valign="bottom" style="BORDER-BOTTOM: #000000 1px solid">$11.50
      - $40.62 </TD>
    <TD  width="2%"
    align=left valign="bottom" style="BORDER-BOTTOM: #000000 1px solid">&nbsp;</TD>
    <TD  width="1%"
    align=left valign="bottom" style="BORDER-BOTTOM: #000000 1px solid">&nbsp;</TD>
    <TD width="15%" align=right valign="bottom" style="BORDER-BOTTOM: #000000 1px solid">0.4 -
      9.7 </TD>
    <TD  width="2%"
    align=left valign="bottom" style="BORDER-BOTTOM: #000000 1px solid">&nbsp;</TD>
  </TR>
  <TR>
    <TD valign="bottom" bgColor=#e6efff>&nbsp; </TD>
    <TD  width="1%" valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD width="15%" valign="bottom" bgColor=#e6efff>&nbsp; </TD>
    <TD  width="2%" valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD  width="1%" valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD width="15%" valign="bottom" bgColor=#e6efff>&nbsp; </TD>
    <TD  width="2%" valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD  width="1%" valign="bottom" bgColor=#e6efff>&nbsp;</TD>
    <TD width="15%" valign="bottom" bgColor=#e6efff>&nbsp; </TD>
    <TD  width="2%" valign="bottom" bgColor=#e6efff>&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left valign="bottom" style="BORDER-BOTTOM: #000000 1px solid">Fully diluted </TD>
    <TD  width="1%"
    align=left valign="bottom" style="BORDER-BOTTOM: #000000 1px solid">&nbsp;</TD>
    <TD width="15%"
      align=right valign="bottom" style="BORDER-BOTTOM: #000000 1px solid">84,444,911 </TD>
    <TD  width="2%"
    align=left valign="bottom" style="BORDER-BOTTOM: #000000 1px solid">&nbsp;</TD>
    <TD  width="1%"
    align=left valign="bottom" style="BORDER-BOTTOM: #000000 1px solid">&nbsp;</TD>
    <TD width="15%" align=left valign="bottom" style="BORDER-BOTTOM: #000000 1px solid">&nbsp;    </TD>
    <TD  width="2%"
    align=left valign="bottom" style="BORDER-BOTTOM: #000000 1px solid">&nbsp;</TD>
    <TD  width="1%"
    align=left valign="bottom" style="BORDER-BOTTOM: #000000 1px solid">&nbsp;</TD>
    <TD width="15%" align=left valign="bottom" style="BORDER-BOTTOM: #000000 1px solid">&nbsp;    </TD>
<TD  width="2%"
    align=left valign="bottom" style="BORDER-BOTTOM: #000000 1px solid">&nbsp;</TD>
  </TR></TABLE>
<P align=justify><B>RISKS AND UNCERTAINTIES</B></P>
<P align=justify><B><I>The production and cost estimates for the Pirquitas Mine
may vary and/or not be achieved.</I></B></P>
<P align=justify>We have prepared estimates of future production, operating
costs and capital costs for the Pirquitas Mine. We cannot give any assurance
that such production or cost estimates will be achieved. Actual production and
costs may vary from the estimates depending on a variety of factors, many of
which are not within our control. These factors include, but are not limited to,
actual ore mined varying from estimates of grade, tonnage, dilution, and
metallurgical and other characteristics; short-term operating factors such as
the need for sequential development of ore bodies and the processing of new or
different ore grades from those planned; mine failures, slope failures or
equipment failures; industrial accidents; natural phenomena such as inclement
weather conditions, floods, droughts, rock slides and earthquakes; encountering
unusual or unexpected geological conditions; changes in power costs and
potential power shortages; exchange rate and commodity price fluctuations;
shortages of principal supplies needed for operations, including explosives,
fuels, chemical reagents, water, equipment parts and lubricants; labor shortages
or strikes; civil disobedience and protests; and restrictions or regulations
imposed by governmental or regulatory authorities or other changes in the
regulatory environments. Failure to achieve production or cost estimates or
material increases in costs could have a material adverse impact on our future
cash flows, profitability, results of operations and financial condition.</P>
<P align=justify><B><I>The Pirquitas Mine is currently our only mineral property
in production.</I></B></P>
<P align=justify>The Pirquitas Mine is currently our only mineral property in
production. The future development of any other properties found to be
economically feasible and approved by our Board of Directors will require the
construction and operation of mines, processing plants and related
infrastructure. As a result, we are and will continue to be subject to all of
the risks associated with establishing new mining operations including:</P>
<UL style="TEXT-ALIGN: justify">
  <LI>the timing and cost, which can be considerable, of the construction of
  mining and processing facilities;
  <LI>the availability and cost of skilled labor and mining equipment;
  <LI>the availability and cost of appropriate smelting and refining
  arrangements;
  <LI>the need to obtain necessary environmental and other governmental
  approvals and permits and the timing of the receipt of those approvals and
  permits;
  <LI>the availability of funds to finance construction and development
  activities;
  <LI>potential opposition from non-governmental organizations, environmental
  groups or local groups which may delay or prevent development activities; and
  </LI></UL>
<P align=right>30</P>
<HR style="PAGE-BREAK-AFTER: always" align=center color=black SIZE=5
width="100%" noShade>
<!--$$/page=--><A name=page_31></A>
<UL style="TEXT-ALIGN: justify">
  <LI>potential increases in construction and operating costs due to changes in
  the cost of fuel, power, materials and supplies. </LI></UL>
<P align=justify>The costs, timing and complexities of operating the Pirquitas
Mine and constructing and developing our other projects may be greater than we
anticipate because the majority of our property interests are not located in
developed areas, and, as a result, our property interests may not be served by
appropriate road access, water and power supply and other support
infrastructure. Cost estimates may increase as more detailed engineering work is
completed on a project. It is common in new mining operations to experience
unexpected costs, problems and delays during construction, development and mine
start-up. In addition, delays in the early stages of mineral production often
occur. Accordingly, we cannot provide assurance that our activities will result
in profitable mining operations at the Pirquitas Mine or any of our other
mineral properties.</P>
<P align=justify><B><I>We have limited revenue from operations.</I></B></P>
<P align=justify>We are a company transitioning from exploration and development
to production and have only in 2010 started generating significant revenue from
operations. Other than the Pirquitas Mine, which achieved commercial production
on December 1, 2009, all of our properties are in the exploration stage. With
the exception of our Pitarrilla and San Luis Projects we have not defined or
delineated any proven or probable reserves on any of our exploration stage
properties. Mineral exploration involves significant risk because few properties
that are explored contain bodies of ore that would be commercially economic to
develop into producing mines. If our current exploration programs do not result
in the discovery of commercial ore, we may need to write-off part or all of our
investment in our existing exploration stage properties, and we may need to
acquire additional properties.</P>
<P align=justify>The determination of whether any mineral deposits on our
properties are economically viable is affected by numerous factors beyond our
control, including:</P>
<UL style="TEXT-ALIGN: justify">
  <LI>the metallurgy of the mineralization forming the mineral deposit;
  <LI>market fluctuations for metal prices;
  <LI>the proximity and capacity of natural resource markets and processing
  equipment; and
  <LI>government regulations governing prices, taxes, royalties, land tenure,
  land use, importing and exporting of minerals and environmental protection.
  </LI></UL>
<P align=justify><B><I>We may not have sufficient funds to develop our mineral
properties or to complete further exploration programs.</I></B></P>
<P align=justify>We have recently secured a significant cash balance following
the sale of the Snowfield and Brucejack properties, however we currently still
generate limited operating cash flows, and must primarily finance our
exploration activity and the development of our mineral properties by other
means. In the future, our ability to continue our production, exploration and
development activities, if any, will depend on our ability to generate
sufficient operating revenue from the Pirquitas Mine and obtain additional
external financing. Any unexpected costs, problems or delays during the early
stages of production at the Pirquitas Mine could severely impact our ability to
generate cash flows from production at the Pirquitas Mine and continue our
exploration and development activities.</P>
<P align=justify>The sources of external financing that we may use for these
purposes include project or bank financing, or public or private offerings of
equity and debt. In addition, we may enter into one or more strategic alliances
or joint ventures, decide to sell certain property interests, or utilize one or
a combination of all of these alternatives. The financing alternative chosen by
us may not be available to us on acceptable terms, or at all. If additional
financing is not available, we may have to postpone the development of, or sell,
one or more of our principal properties.</P>
<P align=right>31</P>
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<P align=justify><B><I>Changes in the market price of silver and other metals,
which in the past have fluctuated widely, will affect our
operations.</I></B></P>
<P align=justify>Our profitability and long-term viability will depend, in large
part, on the market price of silver, gold, tin, zinc, lead and copper. The
market prices for these metals are volatile and are affected by numerous factors
beyond our control, including:</P>
<UL style="TEXT-ALIGN: justify">
  <LI>global or regional consumption patterns;
  <LI>the supply of, and demand for, these metals;
  <LI>speculative activities;
  <LI>the availability and costs of metal substitutes;
  <LI>expectations for inflation; and
  <LI>political and economic conditions, including interest rates and currency
  values. </LI></UL>
<P align=justify>We cannot predict the effect of these factors on metal prices.
A decrease in the market price of silver and other metals would affect the
profitability of the Pirquitas Mine and could affect our ability to finance the
exploration and development of any of our other mineral properties. The market
price of silver and other metals may not remain at current levels. In
particular, an increase in worldwide supply, and consequent downward pressure on
prices, may result over the longer term from increased silver production from
mines developed or expanded as a result of current metal price levels.</P>
<P align=justify><B><I>We have a history of losses and may continue to incur
losses for the foreseeable future.</I></B></P>
<P align=justify>We have a history of losses. Despite recording significant
earnings in 2010 following the gain on sale of our Snowfield and Brucejack
properties, we still incurred underlying losses, and incurred a loss of $13.2
million for the year ended December 31, 2009, and $5.9 million for the year
ended December 31, 2008.</P>
<P align=justify>We expect to the Pirquitas Mine to start generating sufficient
revenues to fund continuing operations, however we may still continue to incur
losses, and the exploration and development of our other mineral properties will
still require the commitment of substantial financial resources that may not be
available.</P>
<P align=justify>The amount and timing of expenditures will depend on a number
of factors, including the progress of ongoing exploration and development, the
results of consultants&#146; analyses and recommendations, the rate at which
operating losses are incurred, the execution of any joint venture agreements
with strategic partners and our acquisition of additional property interests,
some of which are beyond our control. We cannot provide assurance that we will
ever achieve profitability.</P>
<P align=justify><B><I>Market events and conditions may adversely affect our
business and industry.</I></B></P>
<P align=justify>In 2007 and into 2008, the U.S. credit markets began to
experience serious disruption due to a deterioration in residential property
values, defaults and delinquencies in the residential mortgage market
(particularly, sub-prime and non-prime mortgages) and a decline in the credit
quality of mortgage-backed securities. These problems led to a slow-down in
residential housing market transactions, declining housing prices, delinquencies
in non-mortgage consumer credit and a general decline in consumer confidence.
These conditions continued and worsened in 2008 and early 2009, causing a loss
of confidence in the U.S. and global credit and financial markets and resulting
in the collapse of, and government intervention in, major banks and other
financial institutions and insurers, and creating a climate of greater
volatility, less liquidity, widening of credit spreads, a lack of price
transparency, increased credit losses and tighter credit conditions.
Notwithstanding various actions by the U.S. and other governments, concerns
about the general condition of the capital markets, financial instruments,
banks, investment banks, insurers and other financial institutions caused the
broader credit markets to further deteriorate and stock markets to decline
substantially. In addition, general economic indicators, including employment levels, announced corporate earnings,
economic growth and consumer confidence, have deteriorated. Any or all of these
market events and conditions may adversely affect our business and industry.</P>
<P align=right>32</P>
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<P align=justify><B><I>General economic conditions may adversely affect our
growth and profitability.</I></B></P>
<P align=justify>The unprecedented events in global financial markets in the
past several years have had a profound impact on the global economy. Many
industries, including the silver and gold mining industry, are impacted by these
market conditions. Some of the key impacts of the current financial market
turmoil include contraction in credit markets resulting in a widening of credit
risk, devaluations, high volatility in global equity, commodity, foreign
exchange and precious metal markets and a lack of market liquidity. A continued
or worsened slowdown in the financial markets or other economic conditions,
including but not limited to, consumer spending, employment rates, business
conditions, inflation, fuel and energy costs, consumer debt levels, lack of
available credit, the state of the financial markets, interest rates and tax
rates, may adversely affect our growth and profitability. Specifically:</P>
<UL style="TEXT-ALIGN: justify">
  <LI>the global credit/liquidity crisis could impact the cost and availability
  of financing and our overall liquidity;
  <LI>the volatility of silver and gold prices would impact our revenues,
  profits, losses and cash flow;
  <LI>continued recessionary pressures could adversely impact demand for our
  production;
  <LI>volatile energy, commodity and consumables prices and currency exchange
  rates would impact our production costs; and
  <LI>the devaluation and volatility of global stock markets would impact the
  valuation of our equity and other securities. </LI></UL>
<P align=justify>These factors could have a material adverse effect on our
financial condition and results of operations.</P>
<P align=justify><B><I>An event of default under our 4.5% Convertible Senior
Notes due 2028 may significantly reduce our liquidity and adversely affect our
business.</I></B></P>
<P align=justify>Under the indenture governing our 4.5% Convertible Senior Notes
due 2028 (the &#147;<B>Convertible Notes</B>&#148;), we made various covenants to the
trustees on behalf of the holders of the Convertible Notes, including to make
payments of interest and principal when due and, upon undergoing a fundamental
change, to offer to purchase all of the outstanding Convertible Notes.</P>
<P align=justify>If there is an event of default under the Convertible Notes,
the principal amount of such notes, plus accrued and unpaid interest, if any,
may be declared immediately due and payable. If such an event occurs, we could
lose our properties, including the Pirquitas Mine, and our shareholders could
lose their entire investment.</P>
<P align=justify><B><I>Recoverability of the investment in Pretium</I></B></P>
<P align=justify>Following the sale of the Snowfield and Brucejack properties to
Pretium we have a significant continuing ownership interest of approximately
40%. We will heavily rely on the performance of that company, the market
performance of Pretium&#146;s common shares and the liquidity of the market for those
shares, in realizing the full value of the previous transaction.This may reduce
our ability to execute our strategy and fund planned exploration and development
opportunities.</P>
<P align=justify><B><I>We follow Canadian disclosure practices concerning our
mineral reserves and resources which allow for more disclosure than is permitted
for U.S. reporting companies.</I></B></P>
<P align=justify>Our resource estimates are not directly comparable to those
made in filings subject to the SEC reporting and disclosure requirements, as we
report resources in accordance with Canadian practices. These practices are
different from the practices used to report resource estimates in reports and
other materials filed with the SEC in that the Canadian practice is to report
measured, indicated and inferred resources. In the United States, mineralization
may not be classified as a &#147;reserve&#148; unless the determination has been made that
the mineralization could be economically and legally produced or extracted at
the time the reserve determination is made. U.S. investors are cautioned not to
assume that all or any part of measured or indicated resources will ever be
converted into reserves. Further, &#147;inferred resources&#148; have a great amount of
uncertainty as to their existence and as to whether they can be mined legally or
economically. Disclosure of &#147;contained ounces&#148; is permitted disclosure under
Canadian regulations; however, the SEC only permits issuers to report
&#147;resources&#148; as in place tonnage and grade without reference to unit measures.
Accordingly, information concerning descriptions of mineralization and resources
contained in this Prospectus or any applicable Prospectus Supplement, or in any
document incorporated by reference herein, may not be comparable to information
made public by U.S. companies subject to the reporting and disclosure
requirements of the SEC.</P>
<P align=right>33</P>
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<P align=justify><B><I>Our reserve and resource estimates are based on
interpretation and assumptions and may yield less mineral production under
actual conditions than is currently estimated.</I></B></P>
<P align=justify>In making determinations about whether to advance any of our
projects to development, we must rely upon estimated calculations as to the
mineral reserves and grades of mineralization on our properties. Until ore is
actually mined and processed, mineral reserves and grades of mineralization must
be considered as estimates only. These estimates are imprecise and depend upon
geological interpretation and statistical inferences drawn from drilling and
sampling which may prove to be unreliable. We cannot provide assurance that:</P>
<UL style="TEXT-ALIGN: justify">
  <LI>reserve, resource or other mineralization estimates will be accurate; or
  <LI>mineralization can be mined or processed profitably. </LI></UL>
<P align=justify>Any material changes in mineral reserve estimates and grades of
mineralization will affect the economic viability of placing a property into
production and a property&#146;s return on capital. Our reserve and resource
estimates have been determined and valued based on assumed future prices,
cut-off grades and operating costs that may prove to be inaccurate. Extended
declines in market prices for silver, gold, tin, zinc, lead and copper may
render portions of our mineralization uneconomic and result in reduced reported
mineral reserves.</P>
<P align=justify>Any material reductions in estimates of mineralization, or of
our ability to extract this mineralization, could have a material adverse effect
on our results of operations or financial condition. We cannot provide assurance
that mineral recovery rates achieved in small scale tests will be duplicated in
large scale tests under on-site conditions or in production scale.</P>
<P align=justify><B><I>Mining is inherently risky and subject to conditions or
events beyond our control.</I></B></P>
<P align=justify>The development and operation of a mine or mine property is
inherently dangerous and involves many risks that even a combination of
experience, knowledge and careful evaluation may not be able to overcome,
including:</P>
<UL style="TEXT-ALIGN: justify">
  <LI>unusual or unexpected geological formations;
  <LI>metallurgical and other processing problems;
  <LI>metal losses;
  <LI>environmental hazards;
  <LI>power outages;
  <LI>labor disruptions;
  <LI>industrial accidents;
  <LI>periodic interruptions due to inclement or hazardous weather conditions;
  <LI>flooding, explosions, fire, rockbursts, cave-ins and landslides; </LI></UL>
<P align=right>34</P>
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<UL style="TEXT-ALIGN: justify">
  <LI>mechanical equipment and facility performance problems; and
  <LI>the availability of materials and equipment. </LI></UL>
<P align=justify>These risks could result in damage to, or destruction of,
mineral properties, production facilities or other properties, personal injury
or death, including to our employees, environmental damage, delays in mining,
increased production costs, asset write downs, monetary losses and possible
legal liability. We may not be able to obtain insurance to cover these risks at
economically feasible premiums, or at all. Insurance against certain
environmental risks, including potential liability for pollution and other
hazards as a result of the disposal of waste products occurring from production,
is not generally available to companies within the mining industry. We may
suffer a material adverse effect on our business if we incur losses related to
any significant events that are not covered by our insurance policies.</P>
<P align=justify><B><I>We are subject to significant governmental
regulations.</I></B></P>
<P align=justify>The operation of the Pirquitas Mine, as well as our exploration
activities, are subject to extensive federal, state, provincial, territorial and
local laws and regulations governing various matters, including:</P>
<UL style="TEXT-ALIGN: justify">
  <LI>environmental protection;
  <LI>the management and use of toxic substances and explosives;
  <LI>the management of natural resources;
  <LI>the exploration of mineral properties;
  <LI>exports;
  <LI>price controls;
  <LI>taxation and mining royalties;
  <LI>labor standards and occupational health and safety, including mine safety;
  and
  <LI>historic and cultural preservation. </LI></UL>
<P align=justify>Failure to comply with applicable laws and regulations may
result in civil or criminal fines or penalties or enforcement actions, including
orders issued by regulatory or judicial authorities enjoining or curtailing
operations or requiring corrective measures, installation of additional
equipment or remedial actions, or the imposition of additional local or foreign
parties as joint venture partners, any of which could result in significant
expenditures. We may also be required to compensate private parties suffering
loss or damage by reason of a breach of such laws, regulations or permitting
requirements. It is also possible that future laws and regulations, or more
stringent enforcement of current laws and regulations by governmental
authorities, could cause us to incur additional expense or capital expenditure
restrictions or suspensions of our activities and delays in the exploration and
development of our properties.</P>
<P align=justify><B><I>We require further permits in order to conduct our
current and anticipated future operations, and delays in obtaining or failure to
obtain such permits, or a failure to comply with the terms of any such permits
that we have obtained, would adversely affect our business.</I></B></P>
<P align=justify>Our current and anticipated future operations, including
continued production at the Pirquitas Mine, and further exploration, development
and commencement of production on our other mineral properties, require permits
from various governmental authorities. Obtaining or renewing governmental
permits is a complex and time-consuming process. The duration and success of
efforts to obtain and renew permits are contingent upon many variables not
within our control.</P>
<P align=justify>We cannot provide assurance that all permits that we require
for our operations, including any for construction of mining facilities or
conduct of mining, will be obtainable or renewable on reasonable terms, or at
all. Delays or a failure to obtain such required permits, or the expiry,
revocation or failure by us to comply with the terms of any such permits that we
have obtained, would adversely affect our business.</P>
<P align=right>35</P>
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<P align=justify><B><I>Our activities are subject to environmental laws and
regulations that may increase our costs and restrict our operations.</I></B></P>
<P align=justify>All of our exploration, potential development and production
activities in Argentina, Australia, Canada, Chile, Mexico, Peru and the United
States are subject to regulation by governmental agencies under various
environmental laws. To the extent that we conduct exploration activities or
undertake new mining activities in other countries, we will also be subject to
environmental laws and regulations in those jurisdictions. These laws address
emissions into the air, discharges into water, management of waste, management
of hazardous substances, protection of natural resources, antiquities and
endangered species and reclamation of lands disturbed by mining operations.
Environmental legislation in many countries is evolving and the trend has been
towards stricter standards and enforcement, increased fines and penalties for
non-compliance, more stringent environmental assessments of proposed projects
and increasing responsibility for companies and their officers, directors and
employees. Compliance with environmental laws and regulations may require
significant capital outlays on our behalf and may cause material changes or
delays in our intended activities. Future changes in these laws or regulations
could have a significant adverse impact on some portion of our business, causing
us to re-evaluate those activities at that time.</P>
<P align=justify>Environmental laws in some of the countries in which we operate
require that we periodically perform environmental impact studies at our mines.
At present, environmental impact studies are being performed at the Pirquitas
Mine and the San Luis Project. These studies are at an early stage and we are
currently unable to discern the results of these studies. We cannot guarantee
that these studies will not reveal environmental impacts that would require us
to make significant capital outlays or cause material changes or delays in our
intended activities, any of which could adversely affect our business.</P>
<P align=justify><B><I>Land reclamation requirements for our exploration
properties may be burdensome.</I></B></P>
<P align=justify>Although variable depending on location and the governing
authority, land reclamation requirements are generally imposed on mineral
exploration companies (as well as companies with mining operations) in order to
minimize long term effects of land disturbance. Reclamation may include
requirements to:</P>
<UL style="TEXT-ALIGN: justify">
  <LI>control dispersion of potentially deleterious effluents; and
  <LI>reasonably re-establish pre-disturbance land forms and vegetation.
</LI></UL>
<P align=justify>In order to carry out reclamation obligations imposed on us in
connection with our exploration, potential development and production
activities, we must allocate financial resources that might otherwise be spent
on further exploration and development programs. Certain of our projects have
been subject to historic mining operations and certain of the properties that
were historically mined by us are subject to remediation obligations. We have
set up a provision for our reclamation bonds but this provision may not be
adequate. If we are required to carry out unanticipated reclamation work, our
financial position could be adversely affected.</P>
<P align=justify><B><I>Our properties may be subject to uncertain
title.</I></B></P>
<P align=justify>We cannot provide assurance that title to our properties will
not be challenged. We own, lease or have under option, unpatented and patented
mining claims, mineral claims or concessions which constitute our property
holdings. The ownership and validity, or title, of unpatented mining claims and
concessions are often uncertain and may be contested. Also, we may not have, or
may not be able to obtain, all necessary surface rights to develop a property.
Title insurance is generally not available for mineral properties and our
ability to ensure that we have obtained a secure claim to individual mining
properties or mining concessions may be severely constrained. We have not
conducted surveys of all of the claims in which we hold direct or indirect
interests. A successful claim contesting our title to a property will cause us
to lose our rights to explore and, if warranted, develop that property or
undertake or continue production thereon. This could result in our not being
compensated for our prior expenditures relating to the property.</P>
<P align=right>36</P>
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<P align=justify><B><I>The sale of our concentrates will be subject to
counterparty and market risks.</I></B></P>
<P align=justify>We have entered into supply arrangements to sell some of the
silver, tin and zinc concentrates to be produced at the Pirquitas Mine to
integrated mining and smelting companies. There is no assurance that in the
future, where necessary, we will be successful in entering into such
arrangements on acceptable terms, or at all. If we are not successful in
entering into such arrangements, we may be forced to sell all of our
concentrates, or greater volumes of them than we may from time to time intend,
in the spot market, or we may not have a market for our concentrates. In
addition, should any counterparty to any supply arrangement we may enter into
not honour such arrangement, or should any of such counterparties become
insolvent, we may incur losses for products already shipped and be forced to
sell greater volumes of our concentrates than intended in the spot market or we
may not have a market for our concentrates, and our future operating results may
be materially adversely impacted as a result. Moreover, there can be no
assurance that we will be able to renew any agreements we may enter into to sell
concentrates when such agreements expire, or that our concentrates will meet the
qualitative requirements under future concentrate agreements or the requirements
of buyers.</P>
<P align=justify><B><I>Political or economic instability or unexpected
regulatory change in the countries where our properties are located could
adversely affect our business.</I></B></P>
<P align=justify>Certain of our properties are located in countries, provinces
and states more likely to be subject to political and economic instability, or
unexpected legislative change, than is usually the case in certain other
countries, provinces and states. The operation of the Pirquitas Mine and our
mineral exploration or potential development activities could be adversely
affected by:</P>
<UL style="TEXT-ALIGN: justify">
  <LI>political instability and violence;
  <LI>war and civil disturbance;
  <LI>labor unrest;
  <LI>expropriation or nationalization;
  <LI>changing fiscal regimes and uncertain regulatory environments;
  <LI>fluctuations in currency exchange rates;
  <LI>high rates of inflation;
  <LI>changes to royalty and tax regimes, including the elimination of tax
  exemptions for mining companies by the Argentinean government;
  <LI>underdeveloped industrial and economic infrastructure; and
  <LI>the unenforceability of contractual rights and judgments. </LI></UL>
<P align=justify><B><I>We cannot provide assurance that we will successfully
acquire additional commercially mineable mineral rights.</I></B></P>
<P align=justify>Most exploration projects do not result in the discovery of
commercially mineable ore deposits, and no assurance can be given that any
anticipated level of recovery of ore reserves will be realized or that any
identified mineral deposit will ever qualify as a commercially mineable (or
viable) ore body which can be legally and economically exploited. Estimates of
reserves, resources, mineral deposits and production costs can also be affected
by such factors as environmental permitting regulations and requirements,
weather, environmental factors, unforeseen technical difficulties, unusual or
unexpected geological formations and work interruptions.</P>
<p align=right>37</p>
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<a name=page_38></a>
<P align=justify>Material changes in ore reserves, grades, stripping ratios or
recovery rates may affect the economic viability of any project. Our future
growth and productivity will depend, in part, on our ability to identify and
acquire additional commercially mineable mineral rights, and on the costs and
results of continued exploration and potential development programs. Mineral
exploration is highly speculative in nature and is frequently non-productive.
Substantial expenditures are required to:</P>
<UL style="TEXT-ALIGN: justify">
  <LI>establish ore reserves through drilling and metallurgical and other
  testing techniques;
  <LI>determine metal content and metallurgical recovery processes to extract
  metal from the ore; and
  <LI>construct, renovate or expand mining and processing facilities. </LI></UL>
<P align=justify>In addition, if we discover ore, it would take several years
from the initial phases of exploration until production is possible. During this
time, the economic feasibility of production may change. As a result of these
uncertainties, there can be no assurance that we will successfully acquire
additional commercially mineable (or viable) mineral rights.</P>
<P align=justify><B><I>We may be adversely affected by future fluctuations in
foreign exchange rates.</I></B></P>
<P align=justify>We maintain our bank accounts primarily in U.S. Canadian
dollars and Argentine Pesos. Our revenues, are in U.S. dollars, while certain of
our costs will be incurred in other currencies. In particular, any appreciation
in the currencies of Argentina, Australia, Canada, Chile, Mexico or other
countries where we carry out exploration or development activities against the
U.S. dollar will increase our costs of carrying on operations in such countries.
With the operation of the Pirquitas Mine, our costs denominated in the currency
of Argentina have increased over past levels, and we have greater exposure to
Argentinean currency fluctuations. In addition, any decrease in the Canadian
dollar against the U.S. dollar will result in a loss on our books to the extent
we hold funds in Canadian dollars. As a result, our financial performance and
forecasts can be significantly impacted by changes in foreign exchange
rates.</P>
<P align=justify><B><I>High metal prices in recent years have encouraged
increased mining exploration, development and construction activity, which has
increased demand for, and cost of, exploration, development and construction
services and equipment.</I></B></P>
<P align=justify>The relative strength of metal prices over the past five years
has encouraged increases in mining exploration, development and construction
activities around the world, which has resulted in increased demand for, and
cost of, exploration, development and construction services and equipment. While
recent market conditions have had a moderating effect on the costs of such
services and equipment, increases in such costs may continue with the resumption
of an upward trend in metal prices. Increased demand for services and equipment
could result in delays if services or equipment cannot be obtained in a timely
manner due to inadequate availability, and may cause scheduling difficulties due
to the need to coordinate the availability of services or equipment, any of
which could materially increase project exploration, development and/or
construction costs.</P>
<P align=justify><B><I>We face industry competition in the acquisition of
exploration properties and the recruitment and retention of qualified
personnel.</I></B></P>
<P align=justify>We compete with other exploration and producing companies, many
of which are better capitalized, have greater financial resources, operational
experience and technical capabilities than us or are further advanced in their
development or are significantly larger and have access to greater mineral
reserves, for the acquisition of mineral claims, leases and other mineral
interests as well as for the recruitment and retention of qualified employees
and other personnel. In particular, we face competition for qualified personnel
for the Pirquitas Mine, which may increase our costs of operating the mine or
result in delays. A significant number of expatriate employees are currently
required in the early stages of production at the Pirquitas Mine to train the
local workforce. If we require and are unsuccessful in acquiring additional
mineral properties or qualified personnel, we will not be able to grow at the
rate we desire, or at all.</P>
<P align=justify><B><I>Some of our directors and officers have conflicts of
interest as a result of their involvement with other natural resource
companies.</I></B></P>
<P align=justify>Some of our directors and officers are directors or officers of
other natural resource or mining-related companies. Currently, John Smith, our
Chief Executive Officer, and Tom Yip, VP Finance and Chief Financial Officer, both serve as directors of Pretium Resources
Inc, which we own over 40%. These associations may give rise to conflicts of
interest from time to time. As a result of these conflicts of interest, we may
miss the opportunity to participate in certain transactions, which may have a
material adverse effect on our financial position.</P>
<P align=right>38</P>
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width="100%" noShade>
<!--$$/page=--><A name=page_39></A>
<P align=justify><B><I>We are subject to claims and legal
proceedings.</I></B></P>
<P align=justify>We are subject to various claims and legal proceedings covering
a wide range of matters that arise in the ordinary course of business
activities. Each of these matters is subject to various uncertainties and it is
possible that some of these matters may be resolved unfavorably to us. We carry
liability insurance coverage and establish reserves for matters that are
probable and can be reasonably estimated. In addition, we may be involved in
disputes with other parties in the future that may result in litigation, which
may have a material adverse impact on our future cash flows, profitability,
results of operations and financial condition.</P>
<P align=justify><B><I>We may experience difficulty attracting and retaining
qualified management to grow our business.</I></B></P>
<P align=justify>We are dependent on the services of key executives and other
highly skilled and experienced executives and personnel focused on advancing our
corporate objectives as well as the identification of new opportunities for
growth and funding. Due to our relatively small size, the loss of any of these
persons or our inability to attract and retain suitable replacements for them or
additional highly skilled employees required for the operation of the Pirquitas
Mine and our other activities may have a material adverse effect on our business
and financial condition. </P>
<P align=justify><B><I>We may fail to maintain adequate internal control over
financial reporting pursuant to the requirements of the Sarbanes-Oxley
Act.</I></B></P>
<P align=justify>During our five most recent fiscal years, we documented and
tested our internal control procedures in order to satisfy the requirements of
Section 404 of the Sarbanes-Oxley Act (&#147;<B>SOX</B>&#148;). SOX requires an annual
assessment by management of the effectiveness of our internal control over
financial reporting and, for fiscal years commencing with our fiscal year ended
December 31, 2006, an attestation report by our independent auditors addressing
the effectiveness of internal control over financial reporting. We may fail to
maintain the adequacy of our internal control over financial reporting as such
standards are modified, supplemented or amended from time to time, and we may
not be able to ensure that we can conclude, on an ongoing basis, that we have
effective internal control over financial reporting in accordance with Section
404 of SOX. Our failure to satisfy the requirements of Section 404 of SOX on an
ongoing, timely basis could result in the loss of investor confidence in the
reliability of our financial statements, which in turn could harm our business
and negatively impact the trading price or the market value of our securities.
In addition, any failure to implement required new or improved controls, or
difficulties encountered in their implementation, could harm our operating
results or cause us to fail to meet our reporting obligations. Future
acquisitions of companies, if any, may provide us with challenges in
implementing the required processes, procedures and controls in our acquired
operations. No evaluation can provide complete assurance that our internal
control over financial reporting will detect or uncover all failures of persons
within our Company to disclose material information otherwise required to be
reported. The effectiveness of our processes, procedures and controls could also
be limited by simple errors or faulty judgments. In addition, as we continue to
expand, the challenges involved in implementing appropriate internal control
over financial reporting will increase and will require that we continue to
improve our internal control over financial reporting. Although we intend to
expend substantial time and incur substantial costs, as necessary, to ensure
ongoing compliance, we cannot be certain that we will be successful in complying
with Section 404 of SOX.</P>
<P align=right>39</P>
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<!--$$/page=--><A name=page_40></A>
<P align=justify><B>Risks Related to our Common Shares</B></P>
<P align=justify><B><I>Future sales or issuances of equity securities could
decrease the value of any existing common shares, dilute investors&#146; voting power
and reduce our earnings per share.</I></B></P>
<P align=justify>We may sell additional equity securities (including through the
sale of securities convertible into common shares) and may issue additional
equity securities to finance our operations, development, exploration,
acquisitions or other projects. We cannot predict the size of future sales and
issuances of equity securities or the effect, if any, that future sales and
issuances of equity securities will have on the market price of our common
shares. Sales or issuances of a substantial number of equity securities, or the
perception that such sales could occur, may adversely affect prevailing market
prices for our common shares. With any additional sale or issuance of equity
securities, investors will suffer dilution of their voting power and may
experience dilution in our earnings per share.</P>
<P align=justify><B><I>Our common shares are publicly traded and are subject to
various factors that have historically made our common share price
volatile.</I></B></P>
<P align=justify>The market price of our common shares has been, and may
continue to be, subject to large fluctuations, which may result in losses to
investors. The market price of our common shares may increase or decrease in
response to a number of events and factors, including: our operating performance
and the performance of competitors and other similar companies; volatility in
metal prices; the public&#146;s reaction to our press releases, material change
reports, other public announcements and our filings with the various securities
regulatory authorities; changes in earnings estimates or recommendations by
research analysts who track our common shares or the shares of other companies
in the resource sector; changes in general economic and/or political conditions;
the number of common shares to be publicly traded after an offering of our
common shares; the arrival or departure of key personnel; acquisitions,
strategic alliances or joint ventures involving us or our competitors; and the
factors listed under the heading &#147;Cautionary Note Regarding Forward-Looking
Statements&#148;.</P>
<P align=justify>The market price of our common shares is affected by many other
variables which are not directly related to our success and are, therefore, not
within our control, including other developments that affect the market for all
resource sector securities, the breadth of the public market for our common
shares and the attractiveness of alternative investments. The effect of these
and other factors on the market price of our common shares on the exchanges on
which they trade has historically made our common share price volatile and
suggests that our common share price will continue to be volatile in the
future.</P>
<P align=justify><B><I>We do not intend to pay any cash dividends in the
foreseeable future.</I></B></P>
<P align=justify>We have not declared or paid any dividends on our common shares
since 1955. We intend to retain earnings, if any, to finance the growth and
development of our business and do not intend to pay cash dividends on our
common shares in the foreseeable future. Any return on an investment in our
common shares will come from the appreciation, if any, in the value of our
common shares. The payment of future cash dividends, if any, will be reviewed
periodically by our Board of Directors and will depend upon, among other things,
conditions then existing including earnings, financial condition and capital
requirements, restrictions in financing agreements, business opportunities and
conditions and other factors. </P>
<P align=right>40</P>
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<!--$$/page=--><A name=page_41></A>
<P align=justify><B>CAUTIONARY NOTE REGARDING FORWARD-LOOKING STATEMENTS AND
NON-GAAP PERFORMANCE MEASURES</B></P>
<P align=justify>The MD&amp;A contains forward-looking statements within the
meaning of the United States <I>Private Securities Litigation Reform Act </I>of
1995 and forward looking information within Canadian securities laws
(collectively &#147;forward looking statements&#148;) concerning the anticipated
developments in our operations in future periods, our planned exploration
activities, the adequacy of our financial resources and other events or
conditions that may occur in the future. These statements relate to analyses and
other information that are based on forecasts of future results, estimates of
amounts not yet determinable and assumptions of management.</P>
<P align=justify>Statements concerning mineral reserve and resource estimates
may also be deemed to constitute forward-looking statements to the extent that
they involve estimates of the mineralization that will be encountered if the
property is developed. Any statements that express or involve discussions with
respect to predictions, expectations, beliefs, plans, projections, objectives,
assumptions or future events or performance (often, but not always, using words
or phrases such as &#147;expects&#148;, &#147;anticipates&#148;, &#147;plans&#148;, &#147;projects&#148;, &#147;estimates&#148;,
&#147;assumes&#148;, &#147;intends&#148;, &#147;strategy&#148;, &#147;goals&#148;, &#147;objectives&#148;, &#147;potential&#148; or
variations thereof, or stating that certain actions, events or results &#147;may&#148;,
&#147;could&#148;, &#147;would&#148;, &#147;might&#148; or &#147;will&#148; be taken, occur or be achieved, or the
negative of any of these terms and similar expressions) are not statements of
historical fact and may be forward-looking statements. Forward-looking
statements are subject to a variety of known and unknown risks, uncertainties
and other factors that could cause actual events or results to differ from those
expressed or implied by the forward-looking statements, including, without
limitation:</P>
<UL style="TEXT-ALIGN: justify">
  <LI>uncertainty of production and cost estimates for the Pirquitas Mine;
  <LI>uncertainty of production at our mineral exploration properties;
  <LI>risks and uncertainties associated with new mining operations, including
  start-up delays and operational issues;
  <LI>risks related to our ability to obtain adequate financing for our planned
  development activities and to complete further exploration programs;
  <LI>commodity price fluctuations;
  <LI>our history of losses and expectation of future losses;
  <LI>recent market events and conditions;
  <LI>risks related to general economic conditions;
  <LI>risks related to our covenants given with respect to our 4.5% convertible
  senior notes due 2028;
  <LI>differences in U.S. and Canadian practices for reporting mineral resources
  and reserves;
  <LI>risks and uncertainties relating to the interpretation of drill results
  and the geology, grade and continuity of our mineral deposits;
  <LI>unpredictable risks and hazards related to the development and operation
  of a mine or mine property that are beyond our control;
  <LI>risks related to governmental regulations, including environmental
  regulations;
  <LI>risks related to the delay in obtaining or failure to obtain required
  permits, or non-compliance with permits we have obtained;
  <LI>increased costs and restrictions on operations due to compliance with
  environmental laws and regulations;
  <LI>regulations and pending legislation governing issues involving climate
  change, as well as the physical impacts of climate change, could result in
  increased operating costs;
  <LI>risks related to reclamation activities on our properties;
  <LI>uncertainties related to title to our mineral properties and surface
  rights;
  <LI>risks related to political instability and unexpected regulatory change;
  <LI>our ability to successfully acquire additional commercially mineable
  mineral rights; </LI></UL>
<P align=right>41</P>
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<!--$$/page=--><A name=page_42></A>
<UL style="TEXT-ALIGN: justify">
  <LI>currency fluctuations;
  <LI>increased costs affecting the mining industry;
  <LI>increased competition in the mining industry for properties, qualified
  personnel and management;
  <LI>risks related to some of our directors&#146; and officers&#146; involvement with
  other natural resource companies;
  <LI>our ability to attract and retain qualified management to grow our
  business;
  <LI>risks related to estimates of future income tax assets and liabilities;
  <LI>risks related to claims and legal proceedings;
  <LI>our ability to maintain adequate internal control over financial
  reporting; and
  <LI>our potential classification as a &#147;passive foreign investment company&#148;
  under the U.S. Internal Revenue Code; and
  <LI>the ability to monetize the full value of our interest in Pretium.
</LI></UL>
<P align=justify>This list is not exhaustive of the factors that may affect any
of our forward-looking statements. Forward-looking statements are statements
about the future and are inherently uncertain, and our actual achievements or
other future events or conditions may differ materially from those reflected in
the forward-looking statements due to a variety of risks, uncertainties and
other factors, including, without limitation, those referred to in this MD&amp;A
under the heading &#145;&#145;Risks and Uncertainties&#148;. Our forward-looking statements are
based on the beliefs, expectations and opinions of management on the date the
statements are made, and we do not assume any obligation to update
forward-looking statements if circumstances or management&#146;s beliefs,
expectations or opinions should change. For the reasons set forth above, you
should not place undue reliance on forward-looking statements. </P>
<P align=justify><B>Non-GAAP Financial Performance Measures</B></P>
<P align=justify>We use certain non-GAAP financial performance measures in our
MD&amp;A. For a detailed description of each of the non-GAAP measures used in
this MD&amp;A, please refer to the discussion under &#147;Non-GAAP Financial
Performance Measures&#148; on page 2 of our MD&amp;A.</P>
<P align=justify>In this MD&amp;A, we use the terms introducing &#147;direct mining
cost per ounce&#148;, &#147;cash operating cost per ounce&#148;, &#147;total cash cost per ounce&#148;
and &#147;total production cost per ounce&#148;. Direct mining cost per ounce is used as a
measure of cash production costs incurred at the mine site before any deductions
related to concentrate sales. This measure is used by management to measure the
performance of plant and mill operations and we believe it is a useful measure
to investors during our early stages of production. This measure is then
adjusted for third party smelting, refining and transportation costs and
by-product credits to arrive at cash operating cost per ounce. This measure is
commonly used within the industry and we believe provides investors with
valuable information regarding our performance. Cash operating cost is
aggregated with royaltites and production taxes, where applicable, to arrive at
total cash costs per ounce, and the total cash cost is aggregated with
depletion, depreciation and amortization to arrive at the total production cost
per ounce, which provides investors with the total cost of producing an ounce of
silver, which we believe to be a valuable measure for determining our future
profitability. The inclusion of these measures are meant to provide additional
information; however, these should not be used as a substitute for performance
measures in accordance with GAAP as these are not necessarily standard and may
differ among companies within the industry.</P>
<P align=justify>For additional information related to these non-GAAP
performance measures, please refer to page 2 in the Non-GAAP Financial
Performance Measures section of this MD&amp;A. </P>
<P align=right>42</P>
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