<SEC-DOCUMENT>0001062993-11-004428.txt : 20111110
<SEC-HEADER>0001062993-11-004428.hdr.sgml : 20111110
<ACCEPTANCE-DATETIME>20111110171255
ACCESSION NUMBER:		0001062993-11-004428
CONFORMED SUBMISSION TYPE:	6-K
PUBLIC DOCUMENT COUNT:		9
CONFORMED PERIOD OF REPORT:	20110930
FILED AS OF DATE:		20111110
DATE AS OF CHANGE:		20111110

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:		111196322

	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>REPORT OF FOREIGN PRIVATE ISSUER
<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>November, 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 Interim
    Financial Statements for the three and nine months ended September 30, 2011</a>
    <a href="exhibit99-1.htm"></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's Discussion and Analysis</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="exhibit99-3.htm">99.3</a></td>
    <td bgcolor="#EEEEEE"><a href="exhibit99-3.htm">Certification of Interim Filing - CEO</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="exhibit99-4.htm">99.4</a></td>
    <td bgcolor="#EEEEEE"><a href="exhibit99-4.htm">Certification of Interim Filing - CFO</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="exhibit99-5.htm">99.5</a></td>
    <td bgcolor="#EEEEEE"><a href="exhibit99-5.htm">Material Change Report dated November 9, 2011</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="exhibit99-6.htm">99.6</a></td>
    <td bgcolor="#EEEEEE"><a href="exhibit99-6.htm">News Release dated November 9, 2011</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: November 10, 2011</td>
    <td valign="top">By:</td>
    <td><I>/s/ Kristen Riddell</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>Kristen Riddell</td>
  </tr>
  <tr>
    <td width="50%" valign="top">&nbsp;</td>
    <td width="5%" valign="top">Title:</td>
    <td>Vice President, General Counsel and 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 INTERIM FINANCIAL STATEMENTS
<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">
<!--$$/page=--><A name=page_1></A>
<P align=justify><B>Silver Standard Resources Inc.</B></P>
<P align=justify>Consolidated Interim Financial Statements<BR><B>For the three
and nine months ended September 30, 2011<BR></B>(unaudited)</P>
<HR style="PAGE-BREAK-AFTER: always" align=center width="100%" color=black
noShade SIZE=5>
<!--$$/page=--><A name=page_2></A>
<P align=justify><B>Silver Standard Resources Inc.<BR></B>Consolidated Interim
Financial Statements for the three and nine months ended September 30, 2011</P>
<P align=justify><B>CONTENTS</B></P>
<TABLE
style="BORDER-COLOR: black; FONT-SIZE: 10pt; BORDER-COLLAPSE: collapse; "
cellSpacing=0 cellPadding=0 width="100%" border=0>

  <TR vAlign=top>
    <TD align=left><B>Primary financial statements</B> </TD>
    <TD align=left width="50%">&nbsp; </TD></TR>
  <TR>
    <TD>&nbsp; </TD>
    <TD width="50%">&nbsp; </TD></TR>
  <TR vAlign=top>
    <TD align=left><a href="#page_3">Consolidated Interim Statement of Financial Position </a></TD>
  <TD align=left width="50%">&nbsp; </TD></TR>
  <TR vAlign=top>
    <TD align=left><a href="#page_4">Consolidated Interim Statement of Income (Loss) </a></TD>
  <TD align=left width="50%">&nbsp; </TD></TR>
  <TR vAlign=top>
    <TD align=left><a href="#page_5">Consolidated Interim Statement of Comprehensive Income
      (Loss) </a></TD>
  <TD align=left width="50%"><STRONG>Shareholders&#146; equity</STRONG> </TD></TR>
  <TR vAlign=top>
    <TD align=left><a href="#page_6">Consolidated Interim Statement of Changes in Shareholders&#146;
      Equity</a> </TD>
    <TD align=left width="50%"><a href="#page_15">Note 10 &#150; Share capital and share-based
      compensation </a></TD></TR>
  <TR vAlign=top>
    <TD align=left><a href="#page_7">Consolidated Interim Statement of Cash Flows</a> </TD>
  <TD align=left width="50%"></TD></TR>
  <TR vAlign=top>
    <TD align=left></TD>
    <TD align=left width="50%">&nbsp; </TD></TR>
  <TR vAlign=top>
    <TD align=left>&nbsp; </TD>
    <TD align=left width="50%"><B>Income Statement</B> </TD></TR>
  <TR vAlign=top>
    <TD align=left>&nbsp; </TD>
    <TD align=left width="50%"><a href="#page_16">Note 11 &#150; Operating costs by nature </a></TD></TR>
  <TR vAlign=top>
    <TD align=left><B>Notes to the consolidated interim financial</B>
      <STRONG>statements</STRONG> </TD>
    <TD align=left width="50%"><a href="#page_17">Note 12 &#150; Finance income and expenses </a></TD></TR>
  <TR vAlign=top>
    <TD align=left></TD>
    <TD align=left width="50%"><a href="#page_18">Note 13 &#150; Other income (expenses) </a></TD></TR>
  <TR>
    <TD><a href="#page_8">Note 1 &#150; Nature of operations </a></TD>
  <TD width="50%">&nbsp; </TD></TR>
  <TR vAlign=top>
    <TD align=left><a href="#page_8">Note 2 &#150; Significant accounting policies </a></TD>
  <TD align=left width="50%"><B>Additional disclosures</B> </TD></TR>
  <TR vAlign=top>
    <TD align=left></TD>
    <TD align=left width="50%"><a href="#page_18">Note 14 &#150; Operating segments </a></TD></TR>
  <TR vAlign=top>
    <TD align=left>&nbsp; </TD>
  <TD align=left width="50%"><a href="#page_21">Note 15 &#150; Supplemental cash flow information </a></TD></TR>
  <TR vAlign=top>
    <TD align=left><B>Statement of Financial Position</B> </TD>
    <TD align=left width="50%"><a href="#page_21">Note 16 &#150; Related party transactions </a></TD></TR>
  <TR vAlign=top>
    <TD align=left><a href="#page_10">Note 3 &#150; Other financial assets </a></TD>
    <TD align=left width="50%"><a href="#page_22">Note 17 &#150; Transition to International Financial
      Reporting Standards </a></TD></TR>
  <TR vAlign=top>
    <TD align=left><a href="#page_11">Note 4 &#150; Inventory </a></TD>
    <TD align=left width="50%"></TD></TR>
  <TR vAlign=top>
    <TD align=left><a href="#page_11">Note 5 &#150; Property, plant and equipment </a></TD>
    <TD align=left width="50%">&nbsp; </TD></TR>
  <TR vAlign=top>
    <TD align=left><a href="#page_13">Note 6 &#150; Investment in associate </a></TD>
    <TD align=left width="50%">&nbsp; </TD></TR>
  <TR vAlign=top>
    <TD align=left><a href="#page_14">Note 7 &#150; Warrant liability </a></TD>
    <TD align=left width="50%">&nbsp; </TD></TR>
  <TR vAlign=top>
    <TD align=left><a href="#page_14">Note 8 &#150; Current and deferred income tax </a></TD>
    <TD align=left width="50%">&nbsp; </TD></TR>
  <TR vAlign=top>
    <TD align=left><a href="#page_15">Note 9 &#150; Convertible notes </a></TD>
    <TD align=left width="50%">&nbsp; </TD></TR></TABLE>
<P align=right>2 | P a g e</P>
<HR style="PAGE-BREAK-AFTER: always" align=center width="100%" color=black
noShade SIZE=5>
<!--$$/page=--><A name=page_3></A><BR>
<TABLE
style="BORDER-COLOR: black; FONT-SIZE: 10pt; BORDER-COLLAPSE: collapse; "
cellSpacing=0 cellPadding=0 width="100%" border=0>

  <TR vAlign=top>
    <TD align=left><B>Silver Standard Resources Inc.</B> </TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>Consolidated
      Interim Statement of Financial Position </TD></TR>
  <TR vAlign=top>
    <TD align=left>(expressed in thousands of United States dollars, except
      per share amounts - unaudited) </TD></TR></TABLE><BR>
<TABLE
style="BORDER-COLOR: black; FONT-SIZE: 10pt; BORDER-COLLAPSE: collapse; "
cellSpacing=0 cellPadding=0 width="100%" border=0>

  <TR vAlign=top>
    <TD align=left>&nbsp; </TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD width="10%" align=left nowrap>&nbsp; </TD>
    <TD width="2%" align=left nowrap >&nbsp;</TD>
    <TD width="1%" align=left nowrap >&nbsp;</TD>
    <TD width="10%" align=right nowrap><B>September 30</B> </TD>
    <TD width="2%" align=left nowrap >&nbsp;</TD>
    <TD width="1%" align=left nowrap >&nbsp;</TD>
    <TD width="10%" align=right nowrap><B>December 31</B> </TD>
    <TD width="2%" align=left nowrap >&nbsp;</TD>
    <TD width="1%" align=left nowrap >&nbsp;</TD>
    <TD width="10%" align=right nowrap><B>January 1</B> </TD>
  <TD align=left width="2%" >&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left>&nbsp; </TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD width="10%" align=right nowrap><B>Note</B> </TD>
    <TD width="2%" align=left nowrap >&nbsp;</TD>
    <TD width="1%" align=left nowrap >&nbsp;</TD>
    <TD width="10%" align=right nowrap><B>2011</B> </TD>
    <TD width="2%" align=left nowrap >&nbsp;</TD>
    <TD width="1%" align=left nowrap >&nbsp;</TD>
    <TD width="10%" align=right nowrap><B>2010</B> </TD>
    <TD width="2%" align=left nowrap >&nbsp;</TD>
    <TD width="1%" align=left nowrap >&nbsp;</TD>
    <TD width="10%" align=right nowrap><B>2010</B> </TD>
  <TD align=left width="2%" >&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>&nbsp; </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
    >&nbsp;</TD>
    <TD width="10%" align=left nowrap style="BORDER-BOTTOM: #000000 1px solid">&nbsp;    </TD>
    <TD width="2%" align=left nowrap style="BORDER-BOTTOM: #000000 1px solid"
    >&nbsp;</TD>
    <TD width="1%" align=left nowrap style="BORDER-BOTTOM: #000000 1px solid"
    ><B></B></TD>
    <TD
      width="10%" align=right nowrap style="BORDER-BOTTOM: #000000 1px solid"><STRONG>$</STRONG>&nbsp;</TD>
    <TD width="2%" align=left nowrap style="BORDER-BOTTOM: #000000 1px solid"
    >&nbsp;</TD>
    <TD width="1%" align=left nowrap style="BORDER-BOTTOM: #000000 1px solid"
    ><B></B></TD>
    <TD
      width="10%" align=right nowrap style="BORDER-BOTTOM: #000000 1px solid"><STRONG>$</STRONG>&nbsp;</TD>
    <TD width="2%" align=left nowrap style="BORDER-BOTTOM: #000000 1px solid"
    >&nbsp;</TD>
    <TD width="1%" align=left nowrap style="BORDER-BOTTOM: #000000 1px solid"
    ></TD>
    <TD
      width="10%" align=right nowrap style="BORDER-BOTTOM: #000000 1px solid"><STRONG>$</STRONG>&nbsp;</TD>
  <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="2%"
    >&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left bgColor=#e6efff><B>Current assets</B> </TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="10%" bgColor=#e6efff>&nbsp; </TD>
    <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="10%" bgColor=#e6efff>&nbsp; </TD>
    <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="10%" bgColor=#e6efff>&nbsp; </TD>
    <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="10%" bgColor=#e6efff>&nbsp; </TD>
    <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left>Cash and cash equivalents </TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=left width="10%">&nbsp; </TD>
    <TD align=left width="2%" >&nbsp;</TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=right width="10%"><B>355,903</B> </TD>
    <TD align=left width="2%" >&nbsp;</TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=right width="10%">232,311 </TD>
    <TD align=left width="2%" >&nbsp;</TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=right width="10%">26,659 </TD>
    <TD align=left width="2%" >&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left bgColor=#e6efff>Trade and other receivables </TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="10%" bgColor=#e6efff>&nbsp; </TD>
    <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="10%" bgColor=#e6efff><B>34,563</B> </TD>
    <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="10%" bgColor=#e6efff>35,916 </TD>
    <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="10%" bgColor=#e6efff>8,251 </TD>
    <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left>Other financial assets </TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=right width="10%">3 </TD>
    <TD align=left width="2%" >&nbsp;</TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=right width="10%"><B>39,218</B> </TD>
    <TD align=left width="2%" >&nbsp;</TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=right width="10%">33,651 </TD>
    <TD align=left width="2%" >&nbsp;</TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=right width="10%">19,722 </TD>
    <TD align=left width="2%" >&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left
      bgColor=#e6efff>Inventory </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
     bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right width="10%"
    bgColor=#e6efff>4 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="2%"
     bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
     bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right width="10%"
    bgColor=#e6efff><B>78,771</B> </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="2%"
     bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
     bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right width="10%"
    bgColor=#e6efff>40,176 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="2%"
     bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
     bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right width="10%"
    bgColor=#e6efff>20,565 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="2%"
     bgColor=#e6efff>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left>&nbsp; </TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=left width="10%">&nbsp; </TD>
    <TD align=left width="2%" >&nbsp;</TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=right width="10%"><B>508,455</B> </TD>
    <TD align=left width="2%" >&nbsp;</TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=right width="10%">342,054 </TD>
    <TD align=left width="2%" >&nbsp;</TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=right width="10%">75,197 </TD>
    <TD align=left width="2%" >&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left bgColor=#e6efff><B>Non-current assets</B> </TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="10%" bgColor=#e6efff>&nbsp; </TD>
    <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="10%" bgColor=#e6efff>&nbsp; </TD>
    <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="10%" bgColor=#e6efff>&nbsp; </TD>
    <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="10%" bgColor=#e6efff>&nbsp; </TD>
    <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left>Property, plant and equipment </TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=right width="10%">5 </TD>
    <TD align=left width="2%" >&nbsp;</TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=right width="10%"><B>500,508</B> </TD>
    <TD align=left width="2%" >&nbsp;</TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=right width="10%">499,632 </TD>
    <TD align=left width="2%" >&nbsp;</TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=right width="10%">496,824 </TD>
    <TD align=left width="2%" >&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left bgColor=#e6efff>Investment in associate </TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="10%" bgColor=#e6efff>6 </TD>
    <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="10%" bgColor=#e6efff><B>136,499</B> </TD>
    <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="10%" bgColor=#e6efff>226,271 </TD>
    <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="10%" bgColor=#e6efff>- </TD>
    <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left>Deferred income tax asset </TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=right width="10%">8 </TD>
    <TD align=left width="2%" >&nbsp;</TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=right width="10%"><B>17,326</B> </TD>
    <TD align=left width="2%" >&nbsp;</TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=right width="10%">- </TD>
    <TD align=left width="2%" >&nbsp;</TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=right width="10%">- </TD>
    <TD align=left width="2%" >&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left bgColor=#e6efff>Value added tax receivable </TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="10%" bgColor=#e6efff>&nbsp; </TD>
    <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="10%" bgColor=#e6efff><B>85,015</B> </TD>
    <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="10%" bgColor=#e6efff>70,782 </TD>
    <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="10%" bgColor=#e6efff>54,095 </TD>
    <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>Other non-current
      financial assets </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right width="10%">3 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="2%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right
      width="10%"><B>1,767</B> </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="2%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right width="10%">9,251
    </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="2%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right width="10%">8,015
    </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="2%"
    >&nbsp;</TD></TR>
  <TR vAlign=top bordercolor="#000000" style="BORDER-BOTTOM: #000000 2px solid">
    <TD align=left
      bgColor=#e6efff style="BORDER-BOTTOM: #000000 2px solid"><B>Total assets</B> </TD>
    <TD width="1%" align=left
     bgColor=#e6efff style="BORDER-BOTTOM: #000000 2px solid">&nbsp;</TD>
    <TD width="10%" align=left
    bgColor=#e6efff style="BORDER-BOTTOM: #000000 2px solid">&nbsp; </TD>
    <TD width="2%" align=left
     bgColor=#e6efff style="BORDER-BOTTOM: #000000 2px solid">&nbsp;</TD>
    <TD width="1%" align=left
     bgColor=#e6efff style="BORDER-BOTTOM: #000000 2px solid">&nbsp;</TD>
    <TD width="10%" align=right
    bgColor=#e6efff style="BORDER-BOTTOM: #000000 2px solid"><B>1,249,570</B> </TD>
    <TD width="2%" align=left
     bgColor=#e6efff style="BORDER-BOTTOM: #000000 2px solid">&nbsp;</TD>
    <TD width="1%" align=left
     bgColor=#e6efff style="BORDER-BOTTOM: #000000 2px solid">&nbsp;</TD>
    <TD width="10%" align=right
    bgColor=#e6efff style="BORDER-BOTTOM: #000000 2px solid">1,147,990 </TD>
    <TD width="2%" align=left
     bgColor=#e6efff style="BORDER-BOTTOM: #000000 2px solid">&nbsp;</TD>
    <TD width="1%" align=left
     bgColor=#e6efff style="BORDER-BOTTOM: #000000 2px solid">&nbsp;</TD>
    <TD width="10%" align=right
    bgColor=#e6efff style="BORDER-BOTTOM: #000000 2px solid">634,131 </TD>
  <TD width="2%" align=left
     bgColor=#e6efff style="BORDER-BOTTOM: #000000 2px solid">&nbsp;</TD>
  </TR>
  <TR>
    <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>
    <TD width="1%" >&nbsp;</TD>
    <TD width="10%">&nbsp; </TD>
    <TD width="2%" >&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left bgColor=#e6efff><B>Current liabilities</B> </TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="10%" bgColor=#e6efff>&nbsp; </TD>
    <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="10%" bgColor=#e6efff>&nbsp; </TD>
    <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="10%" bgColor=#e6efff>&nbsp; </TD>
    <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="10%" bgColor=#e6efff>&nbsp; </TD>
    <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left>Trade and other payables </TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=left width="10%">&nbsp; </TD>
    <TD align=left width="2%" >&nbsp;</TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=right width="10%"><B>42,972</B> </TD>
    <TD align=left width="2%" >&nbsp;</TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=right width="10%">35,163 </TD>
    <TD align=left width="2%" >&nbsp;</TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=right width="10%">50,682 </TD>
    <TD align=left width="2%" >&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left bgColor=#e6efff>Taxes payable </TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="10%" bgColor=#e6efff>8 </TD>
    <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="10%" bgColor=#e6efff><B>28,902</B> </TD>
    <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="10%" bgColor=#e6efff>- </TD>
    <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="10%" bgColor=#e6efff>- </TD>
    <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>Warrant liability
    </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right width="10%">7 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="2%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right
      width="10%"><B>7,954</B> </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="2%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right width="10%">- </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="2%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right width="10%">- </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="2%"
    >&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left bgColor=#e6efff>&nbsp; </TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="10%" bgColor=#e6efff>&nbsp; </TD>
    <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="10%" bgColor=#e6efff><B>79,828</B> </TD>
    <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="10%" bgColor=#e6efff>35,163 </TD>
    <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="10%" bgColor=#e6efff>50,682 </TD>
    <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left><B>Non-current liabilities</B> </TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=left width="10%">&nbsp; </TD>
    <TD align=left width="2%" >&nbsp;</TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=left width="10%">&nbsp; </TD>
    <TD align=left width="2%" >&nbsp;</TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=left width="10%">&nbsp; </TD>
    <TD align=left width="2%" >&nbsp;</TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=left width="10%">&nbsp; </TD>
    <TD align=left width="2%" >&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left bgColor=#e6efff>Deferred tax liabilities </TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="10%" bgColor=#e6efff>8 </TD>
    <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="10%" bgColor=#e6efff><B>36,995</B> </TD>
    <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="10%" bgColor=#e6efff>20,472 </TD>
    <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="10%" bgColor=#e6efff>1,202 </TD>
    <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left>Taxes payable </TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=left width="10%">&nbsp; </TD>
    <TD align=left width="2%" >&nbsp;</TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=right width="10%"><B>2,777</B> </TD>
    <TD align=left width="2%" >&nbsp;</TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=right width="10%">3,672 </TD>
    <TD align=left width="2%" >&nbsp;</TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=right width="10%">3,370 </TD>
    <TD align=left width="2%" >&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left bgColor=#e6efff>Close down and restoration provision </TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="10%" bgColor=#e6efff>&nbsp; </TD>
    <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="10%" bgColor=#e6efff><B>12,521</B> </TD>
    <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="10%" bgColor=#e6efff>12,671 </TD>
    <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="10%" bgColor=#e6efff>10,340 </TD>
    <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left>Convertible notes </TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=right width="10%">9 </TD>
    <TD align=left width="2%" >&nbsp;</TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=right width="10%"><B>122,908</B> </TD>
    <TD align=left width="2%" >&nbsp;</TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=right width="10%">116,125 </TD>
    <TD align=left width="2%" >&nbsp;</TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=right width="10%">107,895 </TD>
    <TD align=left width="2%" >&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left
      bgColor=#e6efff>Derivative liabilities </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
     bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right width="10%"
    bgColor=#e6efff>9 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="2%"
     bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
     bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right width="10%"
    bgColor=#e6efff><B>6,817</B> </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="2%"
     bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
     bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right width="10%"
    bgColor=#e6efff>21,735 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="2%"
     bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
     bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right width="10%"
    bgColor=#e6efff>20,728 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="2%"
     bgColor=#e6efff>&nbsp;</TD></TR>
  <TR vAlign=top style="BORDER-BOTTOM: #000000 2px solid">
    <TD align=left style="BORDER-BOTTOM: #000000 2px solid"><B>Total
      liabilities</B> </TD>
    <TD width="1%" align=left style="BORDER-BOTTOM: #000000 2px solid"
    >&nbsp;</TD>
    <TD width="10%" align=left style="BORDER-BOTTOM: #000000 2px solid">&nbsp;    </TD>
    <TD width="2%" align=left style="BORDER-BOTTOM: #000000 2px solid"
    >&nbsp;</TD>
    <TD width="1%" align=left style="BORDER-BOTTOM: #000000 2px solid"
    >&nbsp;</TD>
    <TD
      width="10%" align=right style="BORDER-BOTTOM: #000000 2px solid"><B>261,846</B> </TD>
    <TD width="2%" align=left style="BORDER-BOTTOM: #000000 2px solid"
    >&nbsp;</TD>
    <TD width="1%" align=left style="BORDER-BOTTOM: #000000 2px solid"
    >&nbsp;</TD>
    <TD
      width="10%" align=right style="BORDER-BOTTOM: #000000 2px solid">209,838 </TD>
    <TD width="2%" align=left style="BORDER-BOTTOM: #000000 2px solid"
    >&nbsp;</TD>
    <TD width="1%" align=left style="BORDER-BOTTOM: #000000 2px solid"
    >&nbsp;</TD>
    <TD
      width="10%" align=right style="BORDER-BOTTOM: #000000 2px solid">194,217 </TD>
  <TD width="2%" align=left style="BORDER-BOTTOM: #000000 2px solid"
    >&nbsp;</TD>
  </TR>
  <TR>
    <TD bgColor=#e6efff>&nbsp; </TD>
    <TD width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD width="10%" bgColor=#e6efff>&nbsp; </TD>
    <TD width="2%"  bgColor=#e6efff>&nbsp;</TD>
    <TD width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD width="10%" bgColor=#e6efff>&nbsp; </TD>
    <TD width="2%"  bgColor=#e6efff>&nbsp;</TD>
    <TD width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD width="10%" bgColor=#e6efff>&nbsp; </TD>
    <TD width="2%"  bgColor=#e6efff>&nbsp;</TD>
    <TD width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD width="10%" bgColor=#e6efff>&nbsp; </TD>
    <TD width="2%"  bgColor=#e6efff>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left><B>Shareholders' equity</B> </TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=left width="10%">&nbsp; </TD>
    <TD align=left width="2%" >&nbsp;</TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=left width="10%">&nbsp; </TD>
    <TD align=left width="2%" >&nbsp;</TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=left width="10%">&nbsp; </TD>
    <TD align=left width="2%" >&nbsp;</TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=left width="10%">&nbsp; </TD>
    <TD align=left width="2%" >&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left bgColor=#e6efff>Share capital </TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="10%" bgColor=#e6efff>10 </TD>
    <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="10%" bgColor=#e6efff><B>704,264</B> </TD>
    <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="10%" bgColor=#e6efff>676,651 </TD>
    <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="10%" bgColor=#e6efff>538,700 </TD>
    <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left>Other reserves </TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=left width="10%">&nbsp; </TD>
    <TD align=left width="2%" >&nbsp;</TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=right width="10%"><B>8,167</B> </TD>
    <TD align=left width="2%" >&nbsp;</TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=right width="10%">63,257 </TD>
    <TD align=left width="2%" >&nbsp;</TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=right width="10%">46,966 </TD>
    <TD align=left width="2%" >&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left
      bgColor=#e6efff>Retained earnings </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
     bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="10%"
    bgColor=#e6efff>&nbsp; </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="2%"
     bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
     bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right width="10%"
    bgColor=#e6efff><B>275,293</B> </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="2%"
     bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
     bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right width="10%"
    bgColor=#e6efff>197,748 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="2%"
     bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
     bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right width="10%"
    bgColor=#e6efff>(146,248</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="2%"
     bgColor=#e6efff>) </TD></TR>
  <TR>
    <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>
    <TD width="1%" >&nbsp;</TD>
    <TD width="10%">&nbsp; </TD>
    <TD width="2%" >&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left bgColor=#e6efff><B>Total shareholders' equity attributable
      to shareholders of the Company</B> </TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="10%" bgColor=#e6efff>&nbsp; </TD>
    <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="10%" bgColor=#e6efff><B>987,724</B> </TD>
    <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="10%" bgColor=#e6efff>937,656 </TD>
    <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="10%" bgColor=#e6efff>439,418 </TD>
    <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD></TR>
  <TR>
    <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>
    <TD width="1%" >&nbsp;</TD>
    <TD width="10%">&nbsp; </TD>
    <TD width="2%" >&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left
      bgColor=#e6efff>Non-controlling interest </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
     bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right width="10%"
    bgColor=#e6efff>5 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="2%"
     bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
     bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right width="10%"
    bgColor=#e6efff><B>-</B> </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="2%"
     bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
     bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right width="10%"
    bgColor=#e6efff>496 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="2%"
     bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
     bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right width="10%"
    bgColor=#e6efff>496 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="2%"
     bgColor=#e6efff>&nbsp;</TD></TR>
  <TR>
    <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>
    <TD width="1%" >&nbsp;</TD>
    <TD width="10%">&nbsp; </TD>
    <TD width="2%" >&nbsp;</TD></TR>
  <TR vAlign=top style="BORDER-BOTTOM: #000000 2px solid">
    <TD align=left
      bgColor=#e6efff style="BORDER-BOTTOM: #000000 2px solid"><B>Total shareholders' equity</B> </TD>
    <TD width="1%" align=left
     bgColor=#e6efff style="BORDER-BOTTOM: #000000 2px solid">&nbsp;</TD>
    <TD width="10%" align=left
    bgColor=#e6efff style="BORDER-BOTTOM: #000000 2px solid">&nbsp; </TD>
    <TD width="2%" align=left
     bgColor=#e6efff style="BORDER-BOTTOM: #000000 2px solid">&nbsp;</TD>
    <TD width="1%" align=left
     bgColor=#e6efff style="BORDER-BOTTOM: #000000 2px solid">&nbsp;</TD>
    <TD width="10%" align=right
    bgColor=#e6efff style="BORDER-BOTTOM: #000000 2px solid"><B>1,249,570</B> </TD>
    <TD width="2%" align=left
     bgColor=#e6efff style="BORDER-BOTTOM: #000000 2px solid">&nbsp;</TD>
    <TD width="1%" align=left
     bgColor=#e6efff style="BORDER-BOTTOM: #000000 2px solid">&nbsp;</TD>
    <TD width="10%" align=right
    bgColor=#e6efff style="BORDER-BOTTOM: #000000 2px solid">1,147,990 </TD>
    <TD width="2%" align=left
     bgColor=#e6efff style="BORDER-BOTTOM: #000000 2px solid">&nbsp;</TD>
    <TD width="1%" align=left
     bgColor=#e6efff style="BORDER-BOTTOM: #000000 2px solid">&nbsp;</TD>
    <TD width="10%" align=right
    bgColor=#e6efff style="BORDER-BOTTOM: #000000 2px solid">634,131 </TD>
  <TD width="2%" align=left
     bgColor=#e6efff style="BORDER-BOTTOM: #000000 2px solid">&nbsp;</TD>
  </TR></TABLE>
<P align=center>The accompanying notes are an integral part of the consolidated
interim financial statements</P>
<P align=justify><B>Approved by the Board of Directors and authorized for issue
on November 9, 2011</B></P>
<TABLE
style="BORDER-COLOR: black; FONT-SIZE: 10pt; BORDER-COLLAPSE: collapse; "
cellSpacing=0 cellPadding=0 width="100%" border=0>

  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left><I>&#147;John R.
      Brodie&#148;</I> </TD>
    <TD align=left width="33%" >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left
      width="33%"><I>&#147;John Smith&#148;</I> </TD></TR>
  <TR vAlign=top>
    <TD align=left>John R. Brodie, FCA, Director </TD>
    <TD align=left width="33%" >&nbsp;</TD>
    <TD align=left width="33%">John Smith, Director </TD></TR></TABLE>
<P align=right>3 | P a g e</P>
<HR style="PAGE-BREAK-AFTER: always" align=center width="100%" color=black
noShade SIZE=5>
<!--$$/page=--><A name=page_4></A><BR>
<TABLE
style="BORDER-COLOR: black; FONT-SIZE: 10pt; BORDER-COLLAPSE: collapse; "
cellSpacing=0 cellPadding=0 width="100%" border=0>

  <TR vAlign=top>
    <TD align=left><B>Silver Standard Resources Inc.</B> </TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>Consolidated
      Interim Statement of Income (Loss) </TD></TR>
  <TR vAlign=top>
    <TD align=left>(expressed in thousands of United States dollars, except
      per share amounts - unaudited) </TD></TR></TABLE><BR>
<TABLE width="100%" border=0 cellPadding=0
cellSpacing=0
style="BORDER-COLOR: black; FONT-SIZE: 8pt; BORDER-COLLAPSE: collapse; ">

  <TR vAlign=top>
    <TD align=left>&nbsp; </TD>
    <TD align=left >&nbsp;</TD>
    <TD colSpan=7 align=right nowrap><B>Three Months Ended September
      30</B> </TD>
    <TD align=left nowrap >&nbsp;</TD>
    <TD align=left nowrap >&nbsp;</TD>
    <TD colSpan=4 align=right nowrap><B>Nine Months Ended September
      30</B> </TD>
  <TD align=left >&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left>&nbsp; </TD>
    <TD width="1%" align=left >&nbsp;</TD>
    <TD width="9%" align=right nowrap><B>Note</B> </TD>
    <TD width="2%" align=left nowrap >&nbsp;</TD>
    <TD width="1%" align=left nowrap >&nbsp;</TD>
    <TD width="9%" align=right nowrap><B>2011</B> </TD>
    <TD width="2%" align=left nowrap >&nbsp;</TD>
    <TD width="1%" align=left nowrap >&nbsp;</TD>
    <TD width="9%" align=right nowrap><B>2010</B> </TD>
    <TD width="2%" align=left nowrap >&nbsp;</TD>
    <TD width="1%" align=left nowrap >&nbsp;</TD>
    <TD width="9%" align=right nowrap><B>2011</B> </TD>
    <TD width="2%" align=left nowrap >&nbsp;</TD>
    <TD width="1%" align=left nowrap >&nbsp;</TD>
    <TD width="9%" align=right nowrap><B>2010</B> </TD>
  <TD width="2%" align=left >&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>&nbsp; </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left
    >&nbsp;</TD>
    <TD align=left nowrap style="BORDER-BOTTOM: #000000 1px solid">&nbsp;    </TD>
    <TD align=left nowrap style="BORDER-BOTTOM: #000000 1px solid"
    >&nbsp;</TD>
    <TD align=left nowrap style="BORDER-BOTTOM: #000000 1px solid"
    ><B></B></TD>
    <TD align=right nowrap style="BORDER-BOTTOM: #000000 1px solid"><STRONG>$</STRONG>&nbsp;</TD>
    <TD align=left nowrap style="BORDER-BOTTOM: #000000 1px solid"
    >&nbsp;</TD>
    <TD align=left nowrap style="BORDER-BOTTOM: #000000 1px solid"
    ><B></B></TD>
    <TD align=right nowrap style="BORDER-BOTTOM: #000000 1px solid"><STRONG>$</STRONG>&nbsp;</TD>
    <TD align=left nowrap style="BORDER-BOTTOM: #000000 1px solid"
    >&nbsp;</TD>
    <TD align=left nowrap style="BORDER-BOTTOM: #000000 1px solid"
    ><B></B></TD>
    <TD align=right nowrap style="BORDER-BOTTOM: #000000 1px solid"><STRONG>$</STRONG>&nbsp;</TD>
    <TD align=left nowrap style="BORDER-BOTTOM: #000000 1px solid"
    >&nbsp;</TD>
    <TD align=left nowrap style="BORDER-BOTTOM: #000000 1px solid"
    ><B></B></TD>
    <TD align=right nowrap style="BORDER-BOTTOM: #000000 1px solid"><STRONG>$</STRONG>&nbsp;</TD>
  <TD style="BORDER-BOTTOM: #000000 1px solid" align=left
    >&nbsp;</TD></TR>
  <TR>
    <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>
    <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>Revenue</B> </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=right bgColor=#e6efff><B>26,152</B> </TD>
    <TD align=left  bgColor=#e6efff>&nbsp;</TD>
    <TD align=left  bgColor=#e6efff>&nbsp;</TD>
    <TD align=right bgColor=#e6efff>41,557 </TD>
    <TD align=left  bgColor=#e6efff>&nbsp;</TD>
    <TD align=left  bgColor=#e6efff>&nbsp;</TD>
    <TD align=right bgColor=#e6efff><B>133,476</B> </TD>
    <TD align=left  bgColor=#e6efff>&nbsp;</TD>
    <TD align=left  bgColor=#e6efff>&nbsp;</TD>
    <TD align=right bgColor=#e6efff>67,179 </TD>
    <TD align=left  bgColor=#e6efff>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>Cost of sales </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right>11 </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><B>(14,660</B></TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left
    ><B>)</B> </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right>(34,131</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left
    >) </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><B>(78,287</B></TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left
    ><B>)</B> </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right>(78,020</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left
    >) </TD></TR>
  <TR vAlign=top>
    <TD align=left bgColor=#e6efff><B>Income / (Loss) from mine operations</B>    </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=right bgColor=#e6efff><B>11,492</B> </TD>
    <TD align=left  bgColor=#e6efff>&nbsp;</TD>
    <TD align=left  bgColor=#e6efff>&nbsp;</TD>
    <TD align=right bgColor=#e6efff>7,426 </TD>
    <TD align=left  bgColor=#e6efff>&nbsp;</TD>
    <TD align=left  bgColor=#e6efff>&nbsp;</TD>
    <TD align=right bgColor=#e6efff><B>55,189</B> </TD>
    <TD align=left  bgColor=#e6efff>&nbsp;</TD>
    <TD align=left  bgColor=#e6efff>&nbsp;</TD>
    <TD align=right bgColor=#e6efff>(10,841</TD>
    <TD align=left  bgColor=#e6efff>) </TD></TR>
  <TR>
    <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>
    <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>General and administrative expenses </TD>
    <TD align=left  bgColor=#e6efff>&nbsp;</TD>
    <TD align=right bgColor=#e6efff>11 </TD>
    <TD align=left  bgColor=#e6efff>&nbsp;</TD>
    <TD align=left  bgColor=#e6efff>&nbsp;</TD>
    <TD align=right bgColor=#e6efff><B>(6,748</B></TD>
    <TD align=left  bgColor=#e6efff><B>)</B> </TD>
    <TD align=left  bgColor=#e6efff>&nbsp;</TD>
    <TD align=right bgColor=#e6efff>(6,251</TD>
    <TD align=left  bgColor=#e6efff>) </TD>
    <TD align=left  bgColor=#e6efff>&nbsp;</TD>
    <TD align=right bgColor=#e6efff><B>(20,348</B></TD>
    <TD align=left  bgColor=#e6efff><B>)</B> </TD>
    <TD align=left  bgColor=#e6efff>&nbsp;</TD>
    <TD align=right bgColor=#e6efff>(19,617</TD>
    <TD align=left  bgColor=#e6efff>) </TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>Exploration and
      evaluation expenses </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=left
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><B>(1,678</B></TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left
    ><B>)</B> </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right>(169</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left
    >) </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><B>(5,139</B></TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left
    ><B>)</B> </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right>(449</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left
    >) </TD></TR>
  <TR vAlign=top>
    <TD align=left bgColor=#e6efff><B>Operating income (loss)</B> </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=right bgColor=#e6efff><B>3,066</B> </TD>
    <TD align=left  bgColor=#e6efff>&nbsp;</TD>
    <TD align=left  bgColor=#e6efff>&nbsp;</TD>
    <TD align=right bgColor=#e6efff>1,006 </TD>
    <TD align=left  bgColor=#e6efff>&nbsp;</TD>
    <TD align=left  bgColor=#e6efff>&nbsp;</TD>
    <TD align=right bgColor=#e6efff><B>29,702</B> </TD>
    <TD align=left  bgColor=#e6efff>&nbsp;</TD>
    <TD align=left  bgColor=#e6efff>&nbsp;</TD>
    <TD align=right bgColor=#e6efff>(30,907</TD>
    <TD align=left  bgColor=#e6efff>) </TD></TR>
  <TR>
    <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>
    <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>Gain (loss) on sale of mineral property </TD>
    <TD align=left  bgColor=#e6efff>&nbsp;</TD>
    <TD align=right bgColor=#e6efff>5 </TD>
    <TD align=left  bgColor=#e6efff>&nbsp;</TD>
    <TD align=left  bgColor=#e6efff>&nbsp;</TD>
    <TD align=right bgColor=#e6efff><B>51,359</B> </TD>
    <TD align=left  bgColor=#e6efff>&nbsp;</TD>
    <TD align=left  bgColor=#e6efff>&nbsp;</TD>
    <TD align=right bgColor=#e6efff>(65</TD>
    <TD align=left  bgColor=#e6efff>) </TD>
    <TD align=left  bgColor=#e6efff>&nbsp;</TD>
    <TD align=right bgColor=#e6efff><B>50,536</B> </TD>
    <TD align=left  bgColor=#e6efff>&nbsp;</TD>
    <TD align=left  bgColor=#e6efff>&nbsp;</TD>
    <TD align=right bgColor=#e6efff>13,073 </TD>
    <TD align=left  bgColor=#e6efff>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left>Gain on partial disposal of associate </TD>
    <TD align=left >&nbsp;</TD>
    <TD align=right>6 </TD>
    <TD align=left >&nbsp;</TD>
    <TD align=left >&nbsp;</TD>
    <TD align=right>- </TD>
    <TD align=left >&nbsp;</TD>
    <TD align=left >&nbsp;</TD>
    <TD align=right>- </TD>
    <TD align=left >&nbsp;</TD>
    <TD align=left >&nbsp;</TD>
    <TD align=right><B>39,266</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 align=left bgColor=#e6efff>Interest earned and other finance income</TD>
    <TD align=left  bgColor=#e6efff>&nbsp;</TD>
    <TD align=right bgColor=#e6efff>12 </TD>
    <TD align=left  bgColor=#e6efff>&nbsp;</TD>
    <TD align=left  bgColor=#e6efff>&nbsp;</TD>
    <TD align=right bgColor=#e6efff><B>449</B> </TD>
    <TD align=left  bgColor=#e6efff>&nbsp;</TD>
    <TD align=left  bgColor=#e6efff>&nbsp;</TD>
    <TD align=right bgColor=#e6efff>409 </TD>
    <TD align=left  bgColor=#e6efff>&nbsp;</TD>
    <TD align=left  bgColor=#e6efff>&nbsp;</TD>
    <TD align=right bgColor=#e6efff><B>1,989</B> </TD>
    <TD align=left  bgColor=#e6efff>&nbsp;</TD>
    <TD align=left  bgColor=#e6efff>&nbsp;</TD>
    <TD align=right bgColor=#e6efff>1,030 </TD>
    <TD align=left  bgColor=#e6efff>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left>Interest expense and other finance costs </TD>
    <TD align=left >&nbsp;</TD>
    <TD align=right>12 </TD>
    <TD align=left >&nbsp;</TD>
    <TD align=left >&nbsp;</TD>
    <TD align=right><B>(4,329</B></TD>
    <TD align=left ><B>)</B> </TD>
    <TD align=left >&nbsp;</TD>
    <TD align=right>(4,265</TD>
    <TD align=left >) </TD>
    <TD align=left >&nbsp;</TD>
    <TD align=right><B>(12,866</B></TD>
    <TD align=left ><B>)</B> </TD>
    <TD align=left >&nbsp;</TD>
    <TD align=right>(12,041</TD>
    <TD align=left >) </TD></TR>
  <TR vAlign=top>
    <TD align=left bgColor=#e6efff>Other income (expenses) </TD>
    <TD align=left  bgColor=#e6efff>&nbsp;</TD>
    <TD align=right bgColor=#e6efff>13 </TD>
    <TD align=left  bgColor=#e6efff>&nbsp;</TD>
    <TD align=left  bgColor=#e6efff>&nbsp;</TD>
    <TD align=right bgColor=#e6efff><B>7,388</B> </TD>
    <TD align=left  bgColor=#e6efff>&nbsp;</TD>
    <TD align=left  bgColor=#e6efff>&nbsp;</TD>
    <TD align=right bgColor=#e6efff>(2,025</TD>
    <TD align=left  bgColor=#e6efff>) </TD>
    <TD align=left  bgColor=#e6efff>&nbsp;</TD>
    <TD align=right bgColor=#e6efff><B>13,798</B> </TD>
    <TD align=left  bgColor=#e6efff>&nbsp;</TD>
    <TD align=left  bgColor=#e6efff>&nbsp;</TD>
    <TD align=right bgColor=#e6efff>12,352 </TD>
    <TD align=left  bgColor=#e6efff>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>Foreign exchange
      loss </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=left
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><B>(5,209</B></TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left
    ><B>)</B> </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right>(6,218</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left
    >) </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><B>(3,132</B></TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left
    ><B>)</B> </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right>(6,887</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left
    >) </TD></TR>
  <TR vAlign=top>
    <TD align=left bgColor=#e6efff><B>Income (loss) before tax</B> </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=right bgColor=#e6efff><B>52,724</B> </TD>
    <TD align=left  bgColor=#e6efff>&nbsp;</TD>
    <TD align=left  bgColor=#e6efff>&nbsp;</TD>
    <TD align=right bgColor=#e6efff>(11,158</TD>
    <TD align=left  bgColor=#e6efff>) </TD>
    <TD align=left  bgColor=#e6efff>&nbsp;</TD>
    <TD align=right bgColor=#e6efff><B>119,293</B> </TD>
    <TD align=left  bgColor=#e6efff>&nbsp;</TD>
    <TD align=left  bgColor=#e6efff>&nbsp;</TD>
    <TD align=right bgColor=#e6efff>(23,380</TD>
    <TD align=left  bgColor=#e6efff>) </TD></TR>
  <TR>
    <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>
    <TD >&nbsp;</TD>
    <TD>&nbsp; </TD>
    <TD >&nbsp;</TD>
    <TD >&nbsp;</TD>
    <TD>&nbsp; </TD>
    <TD >&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left
      bgColor=#e6efff>Income tax (expense) recovery </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left
     bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left
    bgColor=#e6efff>&nbsp; </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left
     bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left
     bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right
    bgColor=#e6efff><B>(30,888</B></TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left
     bgColor=#e6efff><B>)</B> </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left
     bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right
    bgColor=#e6efff>751 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left
     bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left
     bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right
    bgColor=#e6efff><B>(41,748</B></TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left
     bgColor=#e6efff><B>)</B> </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left
     bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right
    bgColor=#e6efff>211 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left
     bgColor=#e6efff>&nbsp;</TD></TR>
  <TR>
    <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>
    <TD >&nbsp;</TD>
    <TD>&nbsp; </TD>
    <TD >&nbsp;</TD>
    <TD >&nbsp;</TD>
    <TD>&nbsp; </TD>
    <TD >&nbsp;</TD></TR>

  <TR vAlign=top bgcolor="#E6EFFF">
    <TD align=left nowrap style="BORDER-BOTTOM: #000000 1px solid"><B>Net income (loss) and net income
      (loss) attributable to
      shareholders</B> </TD>
    <TD align=left style="BORDER-BOTTOM: #000000 1px solid"
    >&nbsp;</TD>
    <TD align=left style="BORDER-BOTTOM: #000000 1px solid">&nbsp;    </TD>
    <TD align=left style="BORDER-BOTTOM: #000000 1px solid"
    >&nbsp;</TD>
    <TD align=left style="BORDER-BOTTOM: #000000 1px solid"
    >&nbsp;</TD>
    <TD align=right style="BORDER-BOTTOM: #000000 1px solid"><B>21,836</B> </TD>
    <TD align=left style="BORDER-BOTTOM: #000000 1px solid"
    >&nbsp;</TD>
    <TD align=left style="BORDER-BOTTOM: #000000 1px solid"
    >&nbsp;</TD>
    <TD align=right style="BORDER-BOTTOM: #000000 1px solid">(10,407</TD>
    <TD align=left style="BORDER-BOTTOM: #000000 1px solid"
    >) </TD>
    <TD align=left style="BORDER-BOTTOM: #000000 1px solid"
    >&nbsp;</TD>
    <TD align=right style="BORDER-BOTTOM: #000000 1px solid"><B>77,545</B> </TD>
    <TD align=left style="BORDER-BOTTOM: #000000 1px solid"
    >&nbsp;</TD>
    <TD align=left style="BORDER-BOTTOM: #000000 1px solid"
    >&nbsp;</TD>
    <TD align=right style="BORDER-BOTTOM: #000000 1px solid">(23,169</TD>
    <TD align=left style="BORDER-BOTTOM: #000000 1px solid"
    >) </TD></TR>
  <TR>
    <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>
    <TD>&nbsp;</TD>
    <TD>&nbsp; </TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp; </TD>
    <TD>&nbsp;</TD></TR>
  <TR vAlign=top bgcolor="#E6EFFF">
    <TD align=left><B>Weighted average shares outstanding (thousands)</B> </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>
    <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>
    <TD align=left >&nbsp;</TD>
    <TD align=left>&nbsp; </TD>
    <TD align=left >&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left>&nbsp;Basic </TD>
    <TD align=left>&nbsp;</TD>
    <TD align=left>&nbsp; </TD>
    <TD align=left>&nbsp;</TD>
    <TD align=left>&nbsp;</TD>
    <TD align=right><B>80,549</B> </TD>
    <TD align=left>&nbsp;</TD>
    <TD align=left>&nbsp;</TD>
    <TD align=right>78,767 </TD>
    <TD align=left>&nbsp;</TD>
    <TD align=left>&nbsp;</TD>
    <TD align=right><B>80,223</B> </TD>
    <TD align=left>&nbsp;</TD>
    <TD align=left>&nbsp;</TD>
    <TD align=right>77,531 </TD>
    <TD align=left>&nbsp;</TD></TR>
  <TR vAlign=top bgcolor="#E6EFFF">
    <TD align=left>&nbsp;Diluted </TD>
    <TD align=left >&nbsp;</TD>
    <TD align=left>&nbsp; </TD>
    <TD align=left >&nbsp;</TD>
    <TD align=left >&nbsp;</TD>
    <TD align=right><B>80,897</B> </TD>
    <TD align=left >&nbsp;</TD>
    <TD align=left >&nbsp;</TD>
    <TD align=right>78,767 </TD>
    <TD align=left >&nbsp;</TD>
    <TD align=left >&nbsp;</TD>
    <TD align=right><B>80,686</B> </TD>
    <TD align=left >&nbsp;</TD>
    <TD align=left >&nbsp;</TD>
    <TD align=right>77,531 </TD>
    <TD align=left >&nbsp;</TD></TR>
  <TR>
    <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>
    <TD>&nbsp;</TD>
    <TD>&nbsp; </TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp; </TD>
    <TD>&nbsp;</TD></TR>
  <TR vAlign=top bgcolor="#E6EFFF">
    <TD align=left><B>Earnings (loss) per share</B> </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>
    <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>
    <TD align=left >&nbsp;</TD>
    <TD align=left>&nbsp; </TD>
    <TD align=left >&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left>&nbsp;Basic </TD>
    <TD align=left>&nbsp;</TD>
    <TD align=right>&nbsp;</TD>
    <TD align=left>&nbsp;</TD>
    <TD align=left><B>$</B></TD>
    <TD align=right><B>0.27</B> </TD>
    <TD align=left>&nbsp;</TD>
    <TD align=left>$</TD>
    <TD align=right>&nbsp;(0.13</TD>
    <TD align=left>) </TD>
    <TD align=left><B>$</B></TD>
    <TD align=right><B>&nbsp;0.97</B> </TD>
    <TD align=left>&nbsp;</TD>
    <TD align=left>$</TD>
    <TD align=right>&nbsp;(0.30</TD>
    <TD align=left>) </TD></TR>
  <TR vAlign=top bgcolor="#E6EFFF">
    <TD align=left>&nbsp;Diluted </TD>
    <TD align=left >&nbsp;</TD>
    <TD align=right>&nbsp;</TD>
    <TD align=left >&nbsp;</TD>
    <TD align=left ><B>$</B></TD>
    <TD align=right><B>0.27</B> </TD>
    <TD align=left >&nbsp;</TD>
    <TD align=left >$</TD>
    <TD align=right>&nbsp;(0.13</TD>
    <TD align=left >) </TD>
    <TD align=left ><B>$</B></TD>
    <TD align=right><B>&nbsp;0.96</B> </TD>
    <TD align=left >&nbsp;</TD>
    <TD align=left >$</TD>
    <TD align=right>&nbsp;(0.30</TD>
    <TD align=left >) </TD></TR></TABLE>
<P align=center>The accompanying notes are an integral part of the consolidated
interim financial statements</P>
<P align=right>4 | P a g e</P>
<HR style="PAGE-BREAK-AFTER: always" align=center width="100%" color=black
noShade SIZE=5>
<!--$$/page=--><A name=page_5></A><BR>
<TABLE
style="BORDER-COLOR: black; FONT-SIZE: 10pt; BORDER-COLLAPSE: collapse; "
cellSpacing=0 cellPadding=0 width="100%" border=0>

  <TR vAlign=top>
    <TD align=left><B>Silver Standard Resources Inc.</B> </TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>Consolidated
      Interim Statement of Comprehensive Income (Loss) </TD></TR>
  <TR vAlign=top>
    <TD align=left>(expressed in thousands of United States dollars -
      unaudited) </TD></TR></TABLE><BR>
<TABLE width="100%" border=0 cellPadding=0
cellSpacing=0
style="BORDER-COLOR: black; FONT-SIZE: 10pt; BORDER-COLLAPSE: collapse; ">

  <TR vAlign=top>
    <TD align=left>&nbsp; </TD>
    <TD align=left valign="bottom" >&nbsp;</TD>
    <TD colSpan=4 align=right valign="bottom" nowrap><B>Three Months Ended September
      30</B> </TD>
    <TD align=left valign="bottom" >&nbsp;</TD>
    <TD align=left valign="bottom" >&nbsp;</TD>
    <TD colSpan=4 align=right valign="bottom" nowrap><B>Nine Months Ended September
      30</B> </TD>
  <TD align=left valign="bottom" >&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD
      align=left>&nbsp;</TD>
    <TD width="1%" align=left valign="bottom" >&nbsp;</TD>
    <TD align=right valign="bottom"><B>2011</B> </TD>
    <TD width="2%" align=left valign="bottom" >&nbsp;</TD>
    <TD width="1%" align=left valign="bottom" >&nbsp;</TD>
    <TD 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 align=right valign="bottom"><B>2011</B> </TD>
    <TD width="2%" align=left valign="bottom" >&nbsp;</TD>
    <TD width="1%" align=left valign="bottom" >&nbsp;</TD>
    <TD align=right valign="bottom"><B>2010</B> </TD>
  <TD width="2%" align=left valign="bottom" >&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>&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>
  </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>
  </TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left
      bgColor=#e6efff>Income (loss) for the period attributable to shareholders
    </TD>
    <TD align=left valign="bottom"
     bgColor=#e6efff style="BORDER-BOTTOM: #000000 1px solid">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=right bgColor=#e6efff><B>21,836</B> </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left  bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left  bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=right bgColor=#e6efff>(10,407</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left  bgColor=#e6efff>) </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left  bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=right bgColor=#e6efff><B>77,545</B> </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left  bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left  bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=right bgColor=#e6efff>(23,169</TD>
  <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left  bgColor=#e6efff>) </TD>
  </TR>
  <TR vAlign=top>
    <TD align=left>Other comprehensive income (loss) </TD>
    <TD align=left valign="bottom" >&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>
  <TD vAlign=bottom align=left >&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left nowrap bgColor=#e6efff>&nbsp; &nbsp; &nbsp;Unrealized gain (loss)
      on marketable securities, net of tax </TD>
    <TD align=left valign="bottom"  bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right bgColor=#e6efff><B>(2,501</B></TD>
    <TD vAlign=bottom align=left
      bgColor=#e6efff><B>)</B> </TD>
    <TD vAlign=bottom align=left
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right bgColor=#e6efff>5,406 </TD>
    <TD vAlign=bottom align=left
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=left
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right
bgColor=#e6efff><B>(10,725</B></TD>
    <TD vAlign=bottom align=left
      bgColor=#e6efff><B>)</B> </TD>
    <TD vAlign=bottom align=left
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right bgColor=#e6efff>4,049 </TD>
  <TD vAlign=bottom align=left
    bgColor=#e6efff>&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left>&nbsp;&nbsp;&nbsp;&nbsp; Realized gain on the disposal of
      marketable securities recycled to net income (loss), net of tax </TD>
    <TD align=left valign="bottom" >&nbsp;</TD>
    <TD vAlign=bottom align=right><B>(4,731</B></TD>
    <TD vAlign=bottom align=left ><B>)</B> </TD>
    <TD vAlign=bottom align=left >&nbsp;</TD>
    <TD vAlign=bottom align=right>(628</TD>
    <TD vAlign=bottom align=left >) </TD>
    <TD vAlign=bottom align=left >&nbsp;</TD>
    <TD vAlign=bottom align=right><B>(4,731</B></TD>
    <TD vAlign=bottom align=left ><B>)</B> </TD>
    <TD vAlign=bottom align=left >&nbsp;</TD>
    <TD vAlign=bottom align=right>(2,645</TD>
  <TD vAlign=bottom align=left >) </TD>
  </TR>
  <TR vAlign=top>
    <TD align=left bgColor=#e6efff>&nbsp; &nbsp; &nbsp;Share of other
      comprehensive income of associate </TD>
    <TD align=left valign="bottom"  bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right
bgColor=#e6efff><B>(10,066</B></TD>
    <TD vAlign=bottom align=left
      bgColor=#e6efff><B>)</B> </TD>
    <TD vAlign=bottom align=left
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right bgColor=#e6efff>- </TD>
    <TD vAlign=bottom align=left
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=left
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right bgColor=#e6efff><B>(4,821</B></TD>
    <TD vAlign=bottom align=left
      bgColor=#e6efff><B>)</B> </TD>
    <TD vAlign=bottom align=left
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right bgColor=#e6efff>- </TD>
  <TD vAlign=bottom align=left
    bgColor=#e6efff>&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>&nbsp; &nbsp;
      &nbsp;Cumulative translation adjustment </TD>
    <TD align=left valign="bottom" style="BORDER-BOTTOM: #000000 1px solid"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=right><B>(2,711</B></TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left ><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=right>5,566 </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><B>(2,210</B></TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left ><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=right>2,061 </TD>
  <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left >&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left bgColor=#e6efff>Other comprehensive income (loss) for the
      period </TD>
    <TD align=left valign="bottom"  bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right
bgColor=#e6efff><B>(20,009</B></TD>
    <TD vAlign=bottom align=left
      bgColor=#e6efff><B>)</B> </TD>
    <TD vAlign=bottom align=left
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right bgColor=#e6efff>10,344 </TD>
    <TD vAlign=bottom align=left
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=left
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right
bgColor=#e6efff><B>(22,487</B></TD>
    <TD vAlign=bottom align=left
      bgColor=#e6efff><B>)</B> </TD>
    <TD vAlign=bottom align=left
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right bgColor=#e6efff>3,465 </TD>
  <TD vAlign=bottom align=left
    bgColor=#e6efff>&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>
  </TR>
  <TR vAlign=top>
    <TD align=left bgColor=#e6efff>Total comprehensive income (loss) for the
      period attributable to shareholders </TD>
    <TD align=left valign="bottom"  bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right bgColor=#e6efff><B>1,827</B> </TD>
    <TD vAlign=bottom align=left
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=left
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right bgColor=#e6efff>(63</TD>
    <TD vAlign=bottom align=left  bgColor=#e6efff>)</TD>
    <TD vAlign=bottom align=left
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right bgColor=#e6efff><B>55,058</B></TD>
    <TD vAlign=bottom align=left
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=left
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right bgColor=#e6efff>(19,704</TD>
    <TD vAlign=bottom align=left  bgColor=#e6efff>)  </TD>
  </TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>Non-controlling
      interests </TD>
    <TD align=left valign="bottom" style="BORDER-BOTTOM: #000000 1px solid"
    >&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><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>
  </TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=left
      bgColor=#e6efff><B>Total comprehensive income (loss) for the period</B></TD>
    <TD align=left valign="bottom"
     bgColor=#e6efff style="BORDER-BOTTOM: #000000 2px solid">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" vAlign=bottom align=right bgColor=#e6efff><B>1,827</B> </TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" vAlign=bottom align=left  bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" vAlign=bottom align=left  bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" vAlign=bottom align=right bgColor=#e6efff>(63</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" vAlign=bottom align=left  bgColor=#e6efff>) </TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" vAlign=bottom align=left  bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" vAlign=bottom align=right bgColor=#e6efff><B>55,058</B> </TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" vAlign=bottom align=left  bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" vAlign=bottom align=left  bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" vAlign=bottom align=right bgColor=#e6efff>(19,704</TD>
  <TD style="BORDER-BOTTOM: #000000 2px solid" vAlign=bottom align=left  bgColor=#e6efff>) </TD>
  </TR></TABLE>
<P align=center>The accompanying notes are an integral part of the consolidated
interim financial statements</P>
<P align=right>5 | P a g e</P>
<HR style="PAGE-BREAK-AFTER: always" align=center width="100%" color=black
noShade SIZE=5>
<!--$$/page=--><A name=page_6></A><BR>
<TABLE
style="BORDER-COLOR: black; FONT-SIZE: 10pt; BORDER-COLLAPSE: collapse; "
cellSpacing=0 cellPadding=0 width="100%" border=0>

  <TR vAlign=top>
    <TD align=left><B>Silver Standard Resources Inc.</B> </TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>Consolidated
      Interim Statement of Changes in Shareholders&#146; Equity </TD></TR>
  <TR vAlign=top>
    <TD align=left>(expressed in thousands of United States dollars -
      unaudited) </TD></TR></TABLE><BR>
<TABLE
style="BORDER-COLOR: black; FONT-SIZE: 8pt; BORDER-COLLAPSE: collapse; "
cellSpacing=0 cellPadding=0 width="100%" border=0>

  <TR vAlign=top>
    <TD align=left >&nbsp; </TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD width="7%" align=right nowrap><B>Note</B> </TD>
    <TD align=left width="2%" >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
    >&nbsp;</TD>
    <TD width="17%"
    colSpan=4 align=center nowrap style="BORDER-BOTTOM: #000000 1px solid"><B>Common Shares</B> </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="2%"
    >&nbsp;</TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD width="7%" align=right nowrap><B>Other</B> </TD>
    <TD width="2%" align=left nowrap >&nbsp;</TD>
    <TD width="1%" align=left nowrap >&nbsp;</TD>
    <TD width="7%" align=right nowrap><B>Retained earnings</B> </TD>
    <TD width="2%" align=left nowrap >&nbsp;</TD>
    <TD width="1%" align=left nowrap >&nbsp;</TD>
    <TD width="7%" align=right nowrap><B>Total</B> </TD>
    <TD width="2%" align=left nowrap >&nbsp;</TD>
    <TD width="1%" align=left nowrap >&nbsp;</TD>
    <TD width="7%" align=right nowrap><B>Non-</B> </TD>
    <TD width="2%" align=left nowrap >&nbsp;</TD>
    <TD width="1%" align=left nowrap >&nbsp;</TD>
    <TD width="7%" align=right nowrap><B>Total</B> </TD>
  <TD align=left width="2%" >&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left >&nbsp; </TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD width="7%" align=left nowrap>&nbsp; </TD>
    <TD width="2%" align=left nowrap >&nbsp;</TD>
    <TD width="1%" align=left nowrap >&nbsp;</TD>
    <TD width="7%" align=right nowrap><B>Shares</B> </TD>
    <TD width="2%" align=left nowrap >&nbsp;</TD>
    <TD width="1%" align=left nowrap >&nbsp;</TD>
    <TD width="7%" align=right nowrap><B>Amount</B> </TD>
    <TD align=left width="2%" >&nbsp;</TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD width="7%" align=right nowrap><B>reserves</B> </TD>
    <TD width="2%" align=left nowrap >&nbsp;</TD>
    <TD width="1%" align=left nowrap >&nbsp;</TD>
    <TD width="7%" align=right nowrap><B>(accumulated </B></TD>
    <TD width="2%" align=left nowrap >&nbsp;</TD>
    <TD width="1%" align=left nowrap >&nbsp;</TD>
    <TD width="7%" align=right nowrap ><STRONG>attributable
      to</STRONG>&nbsp;&nbsp;</TD>
    <TD width="2%" align=left nowrap >&nbsp;</TD>
    <TD width="1%" align=left nowrap >&nbsp;</TD>
    <TD width="7%" align=right nowrap><B>controlling</B> </TD>
    <TD width="2%" align=left nowrap >&nbsp;</TD>
    <TD width="1%" align=left nowrap >&nbsp;</TD>
    <TD width="7%" align=right nowrap><B>shareholders'</B> </TD>
  <TD align=left width="2%" >&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left >&nbsp; </TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD width="7%" align=left nowrap>&nbsp; </TD>
    <TD width="2%" align=left nowrap >&nbsp;</TD>
    <TD width="1%" align=left nowrap >&nbsp;</TD>
    <TD width="7%" align=left nowrap>&nbsp; </TD>
    <TD width="2%" align=left nowrap >&nbsp;</TD>
    <TD width="1%" align=left nowrap >&nbsp;</TD>
    <TD width="7%" align=left nowrap>&nbsp; </TD>
    <TD align=left width="2%" >&nbsp;</TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD width="7%" align=left nowrap>&nbsp; </TD>
    <TD width="2%" align=left nowrap >&nbsp;</TD>
    <TD width="1%" align=left nowrap >&nbsp;</TD>
    <TD width="7%" align=right nowrap><B>deficit)</B> </TD>
    <TD width="2%" align=left nowrap >&nbsp;</TD>
    <TD width="1%" align=left nowrap >&nbsp;</TD>
    <TD width="7%" align=right nowrap><B>shareholders</B> </TD>
    <TD width="2%" align=left nowrap >&nbsp;</TD>
    <TD width="1%" align=left nowrap >&nbsp;</TD>
    <TD width="7%" align=right nowrap><B>Interest</B> </TD>
    <TD width="2%" align=left nowrap >&nbsp;</TD>
    <TD width="1%" align=left nowrap >&nbsp;</TD>
    <TD width="7%" align=right nowrap><B>equity</B> </TD>
  <TD align=left width="2%" >&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left
      >&nbsp; </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
    >&nbsp;</TD>
    <TD width="7%" align=left nowrap style="BORDER-BOTTOM: #000000 1px solid">&nbsp;    </TD>
    <TD width="2%" align=left nowrap style="BORDER-BOTTOM: #000000 1px solid"
    >&nbsp;</TD>
    <TD width="1%" align=left nowrap style="BORDER-BOTTOM: #000000 1px solid"
    >&nbsp;</TD>
    <TD
      width="7%" align=right nowrap style="BORDER-BOTTOM: #000000 1px solid"><B>000's</B> </TD>
    <TD width="2%" align=left nowrap style="BORDER-BOTTOM: #000000 1px solid"
    >&nbsp;</TD>
    <TD width="1%" align=left nowrap style="BORDER-BOTTOM: #000000 1px solid"
    ><B></B></TD>
    <TD
      width="7%" align=right nowrap style="BORDER-BOTTOM: #000000 1px solid"><STRONG>$</STRONG>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="2%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
    ><B></B></TD>
    <TD
      width="7%" align=right nowrap style="BORDER-BOTTOM: #000000 1px solid"><STRONG>$</STRONG>&nbsp;</TD>
    <TD width="2%" align=left nowrap style="BORDER-BOTTOM: #000000 1px solid"
    >&nbsp;</TD>
    <TD width="1%" align=left nowrap style="BORDER-BOTTOM: #000000 1px solid"
    ><B></B></TD>
    <TD
      width="7%" align=right nowrap style="BORDER-BOTTOM: #000000 1px solid"><STRONG>$</STRONG>&nbsp;</TD>
    <TD width="2%" align=left nowrap style="BORDER-BOTTOM: #000000 1px solid"
    >&nbsp;</TD>
    <TD width="1%" align=left nowrap style="BORDER-BOTTOM: #000000 1px solid"
    ><B></B></TD>
    <TD
      width="7%" align=right nowrap style="BORDER-BOTTOM: #000000 1px solid"><STRONG>$</STRONG>&nbsp;</TD>
    <TD width="2%" align=left nowrap style="BORDER-BOTTOM: #000000 1px solid"
    >&nbsp;</TD>
    <TD width="1%" align=left nowrap style="BORDER-BOTTOM: #000000 1px solid"
    ><B></B></TD>
    <TD
      width="7%" align=right nowrap style="BORDER-BOTTOM: #000000 1px solid"><STRONG>$</STRONG>&nbsp;</TD>
    <TD width="2%" align=left nowrap style="BORDER-BOTTOM: #000000 1px solid"
    >&nbsp;</TD>
    <TD width="1%" align=left nowrap style="BORDER-BOTTOM: #000000 1px solid"
    ><B></B></TD>
    <TD
      width="7%" align=right nowrap style="BORDER-BOTTOM: #000000 1px solid"><STRONG>$</STRONG>&nbsp;</TD>
  <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="2%"
    >&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left bgColor=#e6efff ><B>Balance, January 1,
      2010</B> </TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="7%" bgColor=#e6efff>&nbsp; </TD>
    <TD vAlign=bottom align=left width="2%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="7%" bgColor=#e6efff>71,965 </TD>
    <TD vAlign=bottom align=left width="2%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="7%" bgColor=#e6efff>538,700 </TD>
    <TD vAlign=bottom align=left width="2%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="7%" bgColor=#e6efff>46,966 </TD>
    <TD vAlign=bottom align=left width="2%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="7%" bgColor=#e6efff>(146,248</TD>
    <TD vAlign=bottom align=left width="2%"  bgColor=#e6efff>)
</TD>
    <TD vAlign=bottom align=left width="1%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="7%" bgColor=#e6efff>439,418 </TD>
    <TD vAlign=bottom align=left width="2%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="7%" bgColor=#e6efff>496 </TD>
    <TD vAlign=bottom align=left width="2%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="7%" bgColor=#e6efff>439,914 </TD>
    <TD vAlign=bottom align=left width="2%"
    bgColor=#e6efff>&nbsp;</TD></TR>
  <TR>
    <TD >&nbsp; </TD>
    <TD width="1%" >&nbsp;</TD>
    <TD vAlign=bottom width="7%">&nbsp; </TD>
    <TD vAlign=bottom width="2%" >&nbsp;</TD>
    <TD vAlign=bottom width="1%" >&nbsp;</TD>
    <TD vAlign=bottom width="7%">&nbsp; </TD>
    <TD vAlign=bottom width="2%" >&nbsp;</TD>
    <TD vAlign=bottom width="1%" >&nbsp;</TD>
    <TD vAlign=bottom width="7%">&nbsp; </TD>
    <TD vAlign=bottom width="2%" >&nbsp;</TD>
    <TD vAlign=bottom width="1%" >&nbsp;</TD>
    <TD vAlign=bottom width="7%">&nbsp; </TD>
    <TD vAlign=bottom width="2%" >&nbsp;</TD>
    <TD vAlign=bottom width="1%" >&nbsp;</TD>
    <TD vAlign=bottom width="7%">&nbsp; </TD>
    <TD vAlign=bottom width="2%" >&nbsp;</TD>
    <TD vAlign=bottom width="1%" >&nbsp;</TD>
    <TD vAlign=bottom width="7%">&nbsp; </TD>
    <TD vAlign=bottom width="2%" >&nbsp;</TD>
    <TD vAlign=bottom width="1%" >&nbsp;</TD>
    <TD vAlign=bottom width="7%">&nbsp; </TD>
    <TD vAlign=bottom width="2%" >&nbsp;</TD>
    <TD vAlign=bottom width="1%" >&nbsp;</TD>
    <TD vAlign=bottom width="7%">&nbsp; </TD>
    <TD vAlign=bottom width="2%" >&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left nowrap bgColor=#e6efff >&nbsp; &nbsp; &nbsp;Issue of
      ordinary shares, net of costs </TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="7%" bgColor=#e6efff>&nbsp; </TD>
    <TD vAlign=bottom align=left width="2%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="7%" bgColor=#e6efff>6,729 </TD>
    <TD vAlign=bottom align=left width="2%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="7%" bgColor=#e6efff>107,758 </TD>
    <TD vAlign=bottom align=left width="2%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="7%" bgColor=#e6efff>- </TD>
    <TD vAlign=bottom align=left width="2%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="7%" bgColor=#e6efff>- </TD>
    <TD vAlign=bottom align=left width="2%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="7%" bgColor=#e6efff>107,758 </TD>
    <TD vAlign=bottom align=left width="2%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="7%" bgColor=#e6efff>- </TD>
    <TD vAlign=bottom align=left width="2%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="7%" bgColor=#e6efff>107,758 </TD>
    <TD vAlign=bottom align=left width="2%"
    bgColor=#e6efff>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left >&nbsp; &nbsp; &nbsp;Exercise of stock options
    </TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD vAlign=bottom align=left width="7%">&nbsp; </TD>
    <TD vAlign=bottom align=left width="2%" >&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%" >&nbsp;</TD>
    <TD vAlign=bottom align=right width="7%">125 </TD>
    <TD vAlign=bottom align=left width="2%" >&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%" >&nbsp;</TD>
    <TD vAlign=bottom align=right width="7%">2,643 </TD>
    <TD vAlign=bottom align=left width="2%" >&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%" >&nbsp;</TD>
    <TD vAlign=bottom align=right width="7%">(812</TD>
    <TD vAlign=bottom align=left width="2%" >) </TD>
    <TD vAlign=bottom align=left width="1%" >&nbsp;</TD>
    <TD vAlign=bottom align=right width="7%">- </TD>
    <TD vAlign=bottom align=left width="2%" >&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%" >&nbsp;</TD>
    <TD vAlign=bottom align=right width="7%">1,831 </TD>
    <TD vAlign=bottom align=left width="2%" >&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%" >&nbsp;</TD>
    <TD vAlign=bottom align=right width="7%">- </TD>
    <TD vAlign=bottom align=left width="2%" >&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%" >&nbsp;</TD>
    <TD vAlign=bottom align=right width="7%">1,831 </TD>
    <TD vAlign=bottom align=left width="2%" >&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left bgColor=#e6efff >&nbsp; &nbsp;
      &nbsp;Share-based compensation </TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="7%" bgColor=#e6efff>&nbsp; </TD>
    <TD vAlign=bottom align=left width="2%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="7%" bgColor=#e6efff>- </TD>
    <TD vAlign=bottom align=left width="2%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="7%" bgColor=#e6efff>- </TD>
    <TD vAlign=bottom align=left width="2%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="7%" bgColor=#e6efff>5,742 </TD>
    <TD vAlign=bottom align=left width="2%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="7%" bgColor=#e6efff>- </TD>
    <TD vAlign=bottom align=left width="2%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="7%" bgColor=#e6efff>5,742 </TD>
    <TD vAlign=bottom align=left width="2%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="7%" bgColor=#e6efff>- </TD>
    <TD vAlign=bottom align=left width="2%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="7%" bgColor=#e6efff>5,742 </TD>
    <TD vAlign=bottom align=left width="2%"
    bgColor=#e6efff>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left
      >&nbsp;&nbsp;&nbsp;&nbsp; Total comprehensive income (loss)
      for the period </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="7%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="2%" >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="1%" >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=right
    width="7%">- </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="2%" >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="1%" >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=right
    width="7%">- </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="2%" >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="1%" >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=right
    width="7%">3,465 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="2%" >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="1%" >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=right
    width="7%">(23,169</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="2%" >) </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="1%" >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=right
    width="7%">(19,704</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="2%" >) </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="1%" >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=right
    width="7%">- </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="2%" >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="1%" >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=right
    width="7%">(19,704</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="2%" >) </TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=left bgColor=#e6efff
    ><B>Balance, at September 30, 2010</B> </TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=left width="1%"
     bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" vAlign=bottom align=left
    width="7%" bgColor=#e6efff>&nbsp; </TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" vAlign=bottom align=left
    width="2%"  bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" vAlign=bottom align=left
    width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" vAlign=bottom align=right
    width="7%" bgColor=#e6efff>78,819 </TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" vAlign=bottom align=left
    width="2%"  bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" vAlign=bottom align=left
    width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" vAlign=bottom align=right
    width="7%" bgColor=#e6efff>649,101 </TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" vAlign=bottom align=left
    width="2%"  bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" vAlign=bottom align=left
    width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" vAlign=bottom align=right
    width="7%" bgColor=#e6efff>55,361 </TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" vAlign=bottom align=left
    width="2%"  bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" vAlign=bottom align=left
    width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" vAlign=bottom align=right
    width="7%" bgColor=#e6efff>(169,417</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" vAlign=bottom align=left
    width="2%"  bgColor=#e6efff>) </TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" vAlign=bottom align=left
    width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" vAlign=bottom align=right
    width="7%" bgColor=#e6efff>535,045 </TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" vAlign=bottom align=left
    width="2%"  bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" vAlign=bottom align=left
    width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" vAlign=bottom align=right
    width="7%" bgColor=#e6efff>496 </TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" vAlign=bottom align=left
    width="2%"  bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" vAlign=bottom align=left
    width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" vAlign=bottom align=right
    width="7%" bgColor=#e6efff>535,541 </TD>
  <TD style="BORDER-BOTTOM: #000000 2px solid" vAlign=bottom align=left
    width="2%"  bgColor=#e6efff>&nbsp;</TD>
  </TR>
  <TR>
    <TD >&nbsp; </TD>
    <TD width="1%" >&nbsp;</TD>
    <TD vAlign=bottom width="7%">&nbsp; </TD>
    <TD vAlign=bottom width="2%" >&nbsp;</TD>
    <TD vAlign=bottom width="1%" >&nbsp;</TD>
    <TD vAlign=bottom width="7%">&nbsp; </TD>
    <TD vAlign=bottom width="2%" >&nbsp;</TD>
    <TD vAlign=bottom width="1%" >&nbsp;</TD>
    <TD vAlign=bottom width="7%">&nbsp; </TD>
    <TD vAlign=bottom width="2%" >&nbsp;</TD>
    <TD vAlign=bottom width="1%" >&nbsp;</TD>
    <TD vAlign=bottom width="7%">&nbsp; </TD>
    <TD vAlign=bottom width="2%" >&nbsp;</TD>
    <TD vAlign=bottom width="1%" >&nbsp;</TD>
    <TD vAlign=bottom width="7%">&nbsp; </TD>
    <TD vAlign=bottom width="2%" >&nbsp;</TD>
    <TD vAlign=bottom width="1%" >&nbsp;</TD>
    <TD vAlign=bottom width="7%">&nbsp; </TD>
    <TD vAlign=bottom width="2%" >&nbsp;</TD>
    <TD vAlign=bottom width="1%" >&nbsp;</TD>
    <TD vAlign=bottom width="7%">&nbsp; </TD>
    <TD vAlign=bottom width="2%" >&nbsp;</TD>
    <TD vAlign=bottom width="1%" >&nbsp;</TD>
    <TD vAlign=bottom width="7%">&nbsp; </TD>
    <TD vAlign=bottom width="2%" >&nbsp;</TD></TR>
  <TR>
    <TD bgColor=#e6efff >&nbsp; </TD>
    <TD width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom width="7%" bgColor=#e6efff>&nbsp; </TD>
    <TD vAlign=bottom width="2%"  bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom width="7%" bgColor=#e6efff>&nbsp; </TD>
    <TD vAlign=bottom width="2%"  bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom width="7%" bgColor=#e6efff>&nbsp; </TD>
    <TD vAlign=bottom width="2%"  bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom width="7%" bgColor=#e6efff>&nbsp; </TD>
    <TD vAlign=bottom width="2%"  bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom width="7%" bgColor=#e6efff>&nbsp; </TD>
    <TD vAlign=bottom width="2%"  bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom width="7%" bgColor=#e6efff>&nbsp; </TD>
    <TD vAlign=bottom width="2%"  bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom width="7%" bgColor=#e6efff>&nbsp; </TD>
    <TD vAlign=bottom width="2%"  bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom width="7%" bgColor=#e6efff>&nbsp; </TD>
    <TD vAlign=bottom width="2%"  bgColor=#e6efff>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left ><B>Balance, January 1, 2011</B> </TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD vAlign=bottom align=left width="7%">&nbsp; </TD>
    <TD vAlign=bottom align=left width="2%" >&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%" >&nbsp;</TD>
    <TD vAlign=bottom align=right width="7%">79,665 </TD>
    <TD vAlign=bottom align=left width="2%" >&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%" >&nbsp;</TD>
    <TD vAlign=bottom align=right width="7%">676,651 </TD>
    <TD vAlign=bottom align=left width="2%" >&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%" >&nbsp;</TD>
    <TD vAlign=bottom align=right width="7%">63,257 </TD>
    <TD vAlign=bottom align=left width="2%" >&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%" >&nbsp;</TD>
    <TD vAlign=bottom align=right width="7%">197,748 </TD>
    <TD vAlign=bottom align=left width="2%" >&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%" >&nbsp;</TD>
    <TD vAlign=bottom align=right width="7%">937,656 </TD>
    <TD vAlign=bottom align=left width="2%" >&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%" >&nbsp;</TD>
    <TD vAlign=bottom align=right width="7%">496 </TD>
    <TD vAlign=bottom align=left width="2%" >&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%" >&nbsp;</TD>
    <TD vAlign=bottom align=right width="7%">938,152 </TD>
    <TD vAlign=bottom align=left width="2%" >&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left bgColor=#e6efff >&nbsp; &nbsp; &nbsp;Exercise
      of stock options </TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="7%" bgColor=#e6efff>&nbsp; </TD>
    <TD vAlign=bottom align=left width="2%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="7%" bgColor=#e6efff>950 </TD>
    <TD vAlign=bottom align=left width="2%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="7%" bgColor=#e6efff>27,613 </TD>
    <TD vAlign=bottom align=left width="2%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="7%" bgColor=#e6efff>(8,410</TD>
    <TD vAlign=bottom align=left width="2%"  bgColor=#e6efff>)
</TD>
    <TD vAlign=bottom align=left width="1%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="7%" bgColor=#e6efff>- </TD>
    <TD vAlign=bottom align=left width="2%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="7%" bgColor=#e6efff>19,203 </TD>
    <TD vAlign=bottom align=left width="2%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="7%" bgColor=#e6efff>- </TD>
    <TD vAlign=bottom align=left width="2%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="7%" bgColor=#e6efff>19,203 </TD>
    <TD vAlign=bottom align=left width="2%"
    bgColor=#e6efff>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left >&nbsp; &nbsp; &nbsp;Share-based compensation
    </TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD vAlign=bottom align=left width="7%">&nbsp; </TD>
    <TD vAlign=bottom align=left width="2%" >&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%" >&nbsp;</TD>
    <TD vAlign=bottom align=right width="7%">- </TD>
    <TD vAlign=bottom align=left width="2%" >&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%" >&nbsp;</TD>
    <TD vAlign=bottom align=right width="7%">- </TD>
    <TD vAlign=bottom align=left width="2%" >&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%" >&nbsp;</TD>
    <TD vAlign=bottom align=right width="7%">4,003 </TD>
    <TD vAlign=bottom align=left width="2%" >&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%" >&nbsp;</TD>
    <TD vAlign=bottom align=right width="7%">- </TD>
    <TD vAlign=bottom align=left width="2%" >&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%" >&nbsp;</TD>
    <TD vAlign=bottom align=right width="7%">4,003 </TD>
    <TD vAlign=bottom align=left width="2%" >&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%" >&nbsp;</TD>
    <TD vAlign=bottom align=right width="7%">- </TD>
    <TD vAlign=bottom align=left width="2%" >&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%" >&nbsp;</TD>
    <TD vAlign=bottom align=right width="7%">4,003 </TD>
    <TD vAlign=bottom align=left width="2%" >&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left bgColor=#e6efff >&nbsp;&nbsp;&nbsp;&nbsp;
      Transactions with non-controlling interests </TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="7%" bgColor=#e6efff>5 </TD>
    <TD vAlign=bottom align=left width="2%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="7%" bgColor=#e6efff>- </TD>
    <TD vAlign=bottom align=left width="2%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="7%" bgColor=#e6efff>- </TD>
    <TD vAlign=bottom align=left width="2%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="7%" bgColor=#e6efff>(28,196</TD>
    <TD vAlign=bottom align=left width="2%"  bgColor=#e6efff>)
</TD>
    <TD vAlign=bottom align=left width="1%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="7%" bgColor=#e6efff>- </TD>
    <TD vAlign=bottom align=left width="2%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="7%" bgColor=#e6efff>(28,196</TD>
    <TD vAlign=bottom align=left width="2%"  bgColor=#e6efff>)
</TD>
    <TD vAlign=bottom align=left width="1%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="7%" bgColor=#e6efff>(496</TD>
    <TD vAlign=bottom align=left width="2%"  bgColor=#e6efff>)
</TD>
    <TD vAlign=bottom align=left width="1%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="7%" bgColor=#e6efff>(28,692</TD>
    <TD vAlign=bottom align=left width="2%"  bgColor=#e6efff>)
  </TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left
      >&nbsp;&nbsp;&nbsp;&nbsp; Total comprehensive income (loss)
      for the period </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="7%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="2%" >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="1%" >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=right
    width="7%">- </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="2%" >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="1%" >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=right
    width="7%">- </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="2%" >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="1%" >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=right
    width="7%">(22,487</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="2%" >) </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="1%" >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=right
    width="7%">77,545 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="2%" >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="1%" >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=right
    width="7%">55,058 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="2%" >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="1%" >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=right
    width="7%">- </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="2%" >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="1%" >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=right
    width="7%">55,058 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=left
    width="2%" >&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=left bgColor=#e6efff
    ><B>Balance, at September 30, 2011</B> </TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=left width="1%"
     bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" vAlign=bottom align=left
    width="7%" bgColor=#e6efff>&nbsp; </TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" vAlign=bottom align=left
    width="2%"  bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" vAlign=bottom align=left
    width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" vAlign=bottom align=right
    width="7%" bgColor=#e6efff><B>80,615</B> </TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" vAlign=bottom align=left
    width="2%"  bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" vAlign=bottom align=left
    width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" vAlign=bottom align=right
    width="7%" bgColor=#e6efff><B>704,264</B> </TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" vAlign=bottom align=left
    width="2%"  bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" vAlign=bottom align=left
    width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" vAlign=bottom align=right
    width="7%" bgColor=#e6efff><B>8,167</B> </TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" vAlign=bottom align=left
    width="2%"  bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" vAlign=bottom align=left
    width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" vAlign=bottom align=right
    width="7%" bgColor=#e6efff><B>275,293</B> </TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" vAlign=bottom align=left
    width="2%"  bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" vAlign=bottom align=left
    width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" vAlign=bottom align=right
    width="7%" bgColor=#e6efff><B>987,724</B> </TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" vAlign=bottom align=left
    width="2%"  bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" vAlign=bottom align=left
    width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" vAlign=bottom align=right
    width="7%" bgColor=#e6efff><B>-</B> </TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" vAlign=bottom align=left
    width="2%"  bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" vAlign=bottom align=left
    width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" vAlign=bottom align=right
    width="7%" bgColor=#e6efff><B>987,724</B> </TD>
  <TD style="BORDER-BOTTOM: #000000 2px solid" vAlign=bottom align=left
    width="2%"  bgColor=#e6efff>&nbsp;</TD>
</TR></TABLE>
<P align=center>The accompanying notes are an integral part of the consolidated
interim financial statements</P>
<P align=right>6 | P a g e</P>
<HR style="PAGE-BREAK-AFTER: always" align=center width="100%" color=black
noShade SIZE=5>
<!--$$/page=--><A name=page_7></A><BR>
<TABLE
style="BORDER-COLOR: black; FONT-SIZE: 10pt; BORDER-COLLAPSE: collapse; "
cellSpacing=0 cellPadding=0 width="100%" border=0>

  <TR vAlign=top>
    <TD align=left><B>Silver Standard Resources Inc.</B> </TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>Consolidated
      Interim Statement of Cash Flows </TD></TR>
  <TR vAlign=top>
    <TD align=left>(expressed in thousands of United States dollars -
      unaudited) </TD></TR></TABLE><BR>
<TABLE
style="BORDER-COLOR: black; FONT-SIZE: 10pt; BORDER-COLLAPSE: collapse; "
cellSpacing=0 cellPadding=0 width="100%" border=0>

  <TR vAlign=top>
    <TD align=left>&nbsp; </TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=right width="27%" colSpan=4><B>Nine Months Ended September
      30</B> </TD>
    <TD align=left width="2%" >&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD
      align=left>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=right width="12%"><B>2011</B> </TD>
    <TD align=left width="2%" >&nbsp;</TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=right width="12%"><B>2010</B> </TD>
    <TD align=left width="2%" >&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>&nbsp; </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
    ><B></B></TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right
      width="12%"><STRONG>$</STRONG>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="2%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
    ></TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right
      width="12%"><STRONG>$</STRONG>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="2%"
    >&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left bgColor=#e6efff><B>Cash flows from operating activities</B>
    </TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="12%" bgColor=#e6efff>&nbsp; </TD>
    <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="12%" bgColor=#e6efff>&nbsp; </TD>
    <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left>Net income (loss) for the period </TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=right width="12%"><B>77,545</B> </TD>
    <TD align=left width="2%" >&nbsp;</TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=right width="12%">(23,169</TD>
    <TD align=left width="2%" >) </TD></TR>
  <TR vAlign=top>
    <TD align=left bgColor=#e6efff>Adjustments for: </TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="12%" bgColor=#e6efff>&nbsp; </TD>
    <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="12%" bgColor=#e6efff>&nbsp; </TD>
    <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left>&nbsp; &nbsp;Depletion, depreciation and amortization </TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=right width="12%"><B>13,645</B> </TD>
    <TD align=left width="2%" >&nbsp;</TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=right width="12%">16,504 </TD>
    <TD align=left width="2%" >&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left bgColor=#e6efff>&nbsp; &nbsp;Share-based payments </TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="12%" bgColor=#e6efff><B>4,003</B> </TD>
    <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="12%" bgColor=#e6efff>5,524 </TD>
    <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left>&nbsp; &nbsp;Close down and restoration provision </TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=right width="12%"><B>1,207</B> </TD>
    <TD align=left width="2%" >&nbsp;</TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=right width="12%">1,238 </TD>
    <TD align=left width="2%" >&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left bgColor=#e6efff>&nbsp; &nbsp;Gain on sale of mineral
      property and property plant and equipment </TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="12%" bgColor=#e6efff><B>(50,536</B></TD>
    <TD align=left width="2%"  bgColor=#e6efff><B>)</B> </TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="12%" bgColor=#e6efff>(13,073</TD>
    <TD align=left width="2%"  bgColor=#e6efff>) </TD></TR>
  <TR vAlign=top>
    <TD align=left>&nbsp; &nbsp;Accretion expense on convertible notes </TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=right width="12%"><B>6,855</B> </TD>
    <TD align=left width="2%" >&nbsp;</TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=right width="12%">6,111 </TD>
    <TD align=left width="2%" >&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left bgColor=#e6efff>&nbsp; &nbsp;Accretion income on
      convertible debenture </TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="12%" bgColor=#e6efff><B>(636</B></TD>
    <TD align=left width="2%"  bgColor=#e6efff><B>)</B> </TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="12%" bgColor=#e6efff>(630</TD>
    <TD align=left width="2%"  bgColor=#e6efff>) </TD></TR>
  <TR vAlign=top>
    <TD align=left>&nbsp; &nbsp;Other income </TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=right width="12%"><B>(13,798</B></TD>
    <TD align=left width="2%" ><B>)</B> </TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=right width="12%">(12,352</TD>
    <TD align=left width="2%" >) </TD></TR>
  <TR vAlign=top>
    <TD align=left bgColor=#e6efff>&nbsp; &nbsp;Gain on partial disposal of
      associate </TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="12%" bgColor=#e6efff><B>(39,266</B></TD>
    <TD align=left width="2%"  bgColor=#e6efff><B>)</B> </TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="12%" bgColor=#e6efff>- </TD>
    <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left>&nbsp; &nbsp;Deferred income tax expense (recovery) </TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=right width="12%"><B>1,744</B> </TD>
    <TD align=left width="2%" >&nbsp;</TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=right width="12%">(211</TD>
    <TD align=left width="2%" >) </TD></TR>
  <TR vAlign=top>
    <TD align=left bgColor=#e6efff>&nbsp; &nbsp;Foreign exchange loss (gain)
    </TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="12%" bgColor=#e6efff><B>(7,700</B></TD>
    <TD align=left width="2%"  bgColor=#e6efff><B>)</B> </TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="12%" bgColor=#e6efff>2,435 </TD>
    <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>Net changes in non
      cash working capital items </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right
      width="12%"><B>19,840</B> </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="2%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right
    width="12%">(1,165</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="2%"
    >) </TD></TR>
  <TR>
    <TD bgColor=#e6efff>&nbsp; </TD>
    <TD width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD width="12%" bgColor=#e6efff>&nbsp; </TD>
    <TD width="2%"  bgColor=#e6efff>&nbsp;</TD>
    <TD width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD width="12%" bgColor=#e6efff>&nbsp; </TD>
    <TD width="2%"  bgColor=#e6efff>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=left><B>Cash generated
      by (used in) operating activities</B> </TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=left width="1%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=right
      width="12%"><B>12,903</B> </TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=left width="2%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=left width="1%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=right
      width="12%">(18,788</TD>
  <TD style="BORDER-BOTTOM: #000000 2px solid" align=left width="2%"
    >) </TD>
  </TR>
  <TR>
    <TD bgColor=#e6efff>&nbsp; </TD>
    <TD width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD width="12%" bgColor=#e6efff>&nbsp; </TD>
    <TD width="2%"  bgColor=#e6efff>&nbsp;</TD>
    <TD width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD width="12%" bgColor=#e6efff>&nbsp; </TD>
    <TD width="2%"  bgColor=#e6efff>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left><B>Cash flows from investing activities</B> </TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=left width="12%">&nbsp; </TD>
    <TD align=left width="2%" >&nbsp;</TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=left width="12%">&nbsp; </TD>
    <TD align=left width="2%" >&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left bgColor=#e6efff>Purchase of property, plant and equipment
    </TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="12%" bgColor=#e6efff><B>(20,402</B></TD>
    <TD align=left width="2%"  bgColor=#e6efff><B>)</B> </TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="12%" bgColor=#e6efff>(42,931</TD>
    <TD align=left width="2%"  bgColor=#e6efff>) </TD></TR>
  <TR vAlign=top>
    <TD align=left>Mineral property expenditures </TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=right width="12%"><B>(24,531</B></TD>
    <TD align=left width="2%" ><B>)</B> </TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=right width="12%">(41,416</TD>
    <TD align=left width="2%" >) </TD></TR>
  <TR vAlign=top>
    <TD align=left bgColor=#e6efff>Increase in value added tax recoverable </TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="12%" bgColor=#e6efff><B>(10,317</B></TD>
    <TD align=left width="2%"  bgColor=#e6efff><B>)</B> </TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="12%" bgColor=#e6efff>(15,216</TD>
    <TD align=left width="2%"  bgColor=#e6efff>) </TD></TR>
  <TR vAlign=top>
    <TD align=left>Proceeds from sale of marketable securities </TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=right width="12%"><B>-</B> </TD>
    <TD align=left width="2%" >&nbsp;</TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=right width="12%">11,015 </TD>
    <TD align=left width="2%" >&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left bgColor=#e6efff>Net proceeds from partial disposal of
      associate </TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="12%" bgColor=#e6efff><B>112,873</B> </TD>
    <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="12%" bgColor=#e6efff>- </TD>
    <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>Net proceeds from
      sale and acquisition of mineral properties </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right
      width="12%"><B>33,864</B> </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="2%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right width="12%">6,927
    </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="2%"
    >&nbsp;</TD></TR>
  <TR>
    <TD bgColor=#e6efff>&nbsp; </TD>
    <TD width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD width="12%" bgColor=#e6efff>&nbsp; </TD>
    <TD width="2%"  bgColor=#e6efff>&nbsp;</TD>
    <TD width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD width="12%" bgColor=#e6efff>&nbsp; </TD>
    <TD width="2%"  bgColor=#e6efff>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left><B>Cash generated
      by (used in) investing activities</B> </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right
      width="12%"><B>91,487</B> </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="2%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right
      width="12%">(81,621</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="2%"
    >) </TD></TR>
  <TR>
    <TD bgColor=#e6efff>&nbsp; </TD>
    <TD width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD width="12%" bgColor=#e6efff>&nbsp; </TD>
    <TD width="2%"  bgColor=#e6efff>&nbsp;</TD>
    <TD width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD width="12%" bgColor=#e6efff>&nbsp; </TD>
    <TD width="2%"  bgColor=#e6efff>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left><B>Cash flows from financing activities</B> </TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=left width="12%">&nbsp; </TD>
    <TD align=left width="2%" >&nbsp;</TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=left width="12%">&nbsp; </TD>
    <TD align=left width="2%" >&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left bgColor=#e6efff>Proceeds from issuance of common shares
      (net of costs) </TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="12%" bgColor=#e6efff><B>-</B> </TD>
    <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="12%" bgColor=#e6efff>107,758 </TD>
    <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>Proceeds from
      exercise of stock options </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right
      width="12%"><B>19,202</B> </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="2%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right width="12%">1,831
    </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="2%"
    >&nbsp;</TD></TR>
  <TR>
    <TD bgColor=#e6efff>&nbsp; </TD>
    <TD width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD width="12%" bgColor=#e6efff>&nbsp; </TD>
    <TD width="2%"  bgColor=#e6efff>&nbsp;</TD>
    <TD width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD width="12%" bgColor=#e6efff>&nbsp; </TD>
    <TD width="2%"  bgColor=#e6efff>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left><B>Cash generated
      by financing activities</B> </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right
      width="12%"><B>19,202</B> </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="2%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right
      width="12%">109,589 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="2%"
    >&nbsp;</TD></TR>
  <TR>
    <TD bgColor=#e6efff>&nbsp; </TD>
    <TD width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD width="12%" bgColor=#e6efff>&nbsp; </TD>
    <TD width="2%"  bgColor=#e6efff>&nbsp;</TD>
    <TD width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD width="12%" bgColor=#e6efff>&nbsp; </TD>
    <TD width="2%"  bgColor=#e6efff>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left><B>Increase in cash and cash equivalents</B> </TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=right width="12%"><B>123,592</B> </TD>
    <TD align=left width="2%" >&nbsp;</TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=right width="12%">9,180 </TD>
    <TD align=left width="2%" >&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=left
      bgColor=#e6efff>Cash and cash equivalents, beginning of period </TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=left width="1%"
     bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=right width="12%"
    bgColor=#e6efff><B>232,311</B> </TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=left width="2%"
     bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=left width="1%"
     bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=right width="12%"
    bgColor=#e6efff>26,659 </TD>
  <TD style="BORDER-BOTTOM: #000000 2px solid" align=left width="2%"
     bgColor=#e6efff>&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=left><B>Cash and cash
      equivalents, end of period</B> </TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=left width="1%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=right
      width="12%"><B>355,903</B> </TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=left width="2%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=left width="1%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=right
      width="12%">35,839 </TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=left width="2%"
    >&nbsp;</TD></TR></TABLE>
<P align=justify><B>Supplemental cash flow information (note 15)</B></P>
<P align=center>The accompanying notes are an integral part of the consolidated
interim financial statements</P>
<P align=right>7 | P a g e</P>
<HR style="PAGE-BREAK-AFTER: always" align=center width="100%" color=black
noShade SIZE=5>
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<TABLE
style="BORDER-COLOR: black; FONT-SIZE: 10pt; BORDER-COLLAPSE: collapse; "
cellSpacing=0 cellPadding=0 width="100%" border=0>

  <TR vAlign=top>
    <TD align=left><B>Silver Standard Resources Inc.</B> </TD></TR>
  <TR vAlign=top>
    <TD align=left>Notes to Consolidated Interim Financial Statements </TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>For the three and
      nine months ended September 30, 2011 </TD></TR>
  <TR vAlign=top>
    <TD align=left>(tabular amounts expressed in thousands of United States
      dollars unless otherwise stated - unaudited) </TD></TR></TABLE><BR>
<TABLE
style="BORDER-COLOR: black; FONT-SIZE: 10pt; BORDER-COLLAPSE: collapse; "
cellSpacing=0 cellPadding=0 width="100%" border=0 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>Silver Standard Resources Inc. (the &#147;Company&#148;) is a
      limited liability company incorporated under the laws of the Province of
      British Columbia, Canada and its shares are publicly listed on the Toronto
      Stock Exchange in Canada and the NASDAQ in the United States. The Company
      together with its subsidiaries (the &#147;Group&#148;) are principally engaged in
      the exploration, development and production of silver-dominant resource
      properties located in the Americas. The Company is the ultimate parent of
      the Group.</P></TD></TR>
  <TR>
    <TD width="5%">&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
  <TR>
    <TD width="5%"></TD>
    <TD>
      <P align=justify>The Company&#146;s address is Suite 1400, 999 West Hastings
      Street, Vancouver, British Columbia, V6C 2W2.</P></TD></TR>
  <TR>
    <TD width="5%">&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
  <TR>
    <TD width="5%"></TD>
    <TD>
      <P align=justify>The Company&#146;s strategic focus is to optimize the
      production of silver from its Pirquitas mine in Argentina, and to advance
      other principal development and exploration projects including San Luis in
      Peru, Diablillos in Argentina, and Pitarrilla, Nazas and San Agustin in
      Mexico. In addition to its principal projects, the Company holds a
      geologically- diverse portfolio of other predominantly silver projects in
      various stages of exploration.</P></TD></TR>
  <TR>
    <TD width="5%">&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
  <TR>
    <TD 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>The principal accounting policies applied in the
      preparation of these consolidated financial statements are set out
      below.</P></TD></TR></TABLE>
<BR>
<TABLE
style="BORDER-COLOR: black; FONT-SIZE: 10pt; BORDER-COLLAPSE: collapse; "
cellSpacing=0 cellPadding=0 width="100%" border=0 BCLLIST>

  <TR>
    <TD width="5%"  >&nbsp;</TD>
    <TD vAlign=top width="5%"><B>a)</B> </TD>
    <TD>
      <P align=justify><B>Basis of preparation and adoption of International
      Financial Reporting Standards</B></P></TD></TR></TABLE>
<P style="MARGIN-LEFT: 5%" align=justify>The Company prepares its financial
statements in accordance with Canadian generally accepted accounting principles
(&#147;Canadian GAAP&#148;) as set out in the Handbook of the Canadian Institute of
Chartered Accountants (&#147;CICA Handbook&#148;). In 2010, the CICA Handbook was revised
to incorporate International Financial Reporting Standards (&#147;IFRS&#148;), and require
publicly accountable enterprises to apply such standards effective for years
beginning on or after January 1, 2011. Accordingly, the Company commenced
reporting on this basis in its 2011 interim consolidated financial statements.
In the financial statements, the term Canadian GAAP refers to Canadian GAAP
before the adoption of IFRS.</P>
<P style="MARGIN-LEFT: 5%" align=justify>These interim consolidated financial
statements have been prepared in accordance with International Accounting
Standard (&#147;IAS&#148;) 34, &#147;Interim Financial Reporting&#148; and IFRS 1, &#147;First-time
adoption of International Financial Reporting Standards&#148; using accounting
policies consistent with IFRS as issued by the International Accounting
Standards Board (&#147;IASB&#148;) and Interpretations issued by the International
Financial Reporting Interpretations Committee (&#147;IFRIC&#148;). The accounting policies
followed in these interim financial statements are the same as those applied in
the Company&#146;s interim financial statements for the period ended March 31, 2011.
The Company has consistently applied the same accounting policies throughout all
periods presented, as if these policies had always been in effect. The impact of
the transition to IFRS on the Company&#146;s reported equity as at September 30, 2010
and comprehensive income for the three and nine months ended September 30, 2010
is provided in note 17. This note also includes the nature and effect of
significant changes in accounting policies from those used in the Company&#146;s
consolidated financial statements for the year ended December 31, 2010.</P>
<P style="MARGIN-LEFT: 5%" align=justify>The policies applied in these interim
consolidated financial statements are based on IFRS issued and outstanding as of
November 9, 2011, the date the Board of Directors approved the statements. Any
subsequent changes to IFRS that are given effect in the Company&#146;s annual
consolidated financial statements for the year ending December 31, 2011 could
result in restatement of these interim consolidated financial statements,
including the transition adjustments recognised on change-over to IFRS.</P>
<P align=right>8 | P a g e</P>
<HR style="PAGE-BREAK-AFTER: always" align=center width="100%" color=black
noShade SIZE=5>
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<TABLE
style="BORDER-COLOR: black; FONT-SIZE: 10pt; BORDER-COLLAPSE: collapse; "
cellSpacing=0 cellPadding=0 width="100%" border=0>

  <TR vAlign=top>
    <TD align=left><B>Silver Standard Resources Inc.</B> </TD></TR>
  <TR vAlign=top>
    <TD align=left>Notes to Consolidated Interim Financial Statements </TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>For the three and
      nine months ended September 30, 2011 </TD></TR>
  <TR vAlign=top>
    <TD align=left>(tabular amounts expressed in thousands of United States
      dollars unless otherwise stated - unaudited) </TD></TR></TABLE><BR>
<TABLE
style="BORDER-COLOR: black; FONT-SIZE: 10pt; BORDER-COLLAPSE: collapse; "
cellSpacing=0 cellPadding=0 width="100%" border=0 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>The interim consolidated financial statements should be
      read in conjunction with the Company&#146;s Canadian GAAP annual financial
      statements for the year ended December 31, 2010, and the Company&#146;s interim
      financial statements for the quarter ended March 31, 2011 prepared in
      accordance with IFRS applicable to interim financial
  statements.</P></TD></TR></TABLE><BR>
<TABLE
style="BORDER-COLOR: black; FONT-SIZE: 10pt; BORDER-COLLAPSE: collapse; "
cellSpacing=0 cellPadding=0 width="100%" border=0 BCLLIST>

  <TR>
    <TD width="5%"  >&nbsp;</TD>
    <TD vAlign=top width="5%"><B>b)</B> </TD>
    <TD>
      <P align=justify><B>Significant accounting judgements and
    estimates</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 colSpan=2>
      <P align=justify>The preparation of financial statements in conformity
      with IFRS requires the use of judgements and/or estimates that affect the
      amounts reported and disclosed in the interim financial statements and
      related notes. There has been no change to the Company&#146;s significant
      accounting estimates from those disclosed in the unaudited interim
      consolidated financial statements (note 2) for the three months ended
      March 31, 2011 except for the impairment assessment and the determination
      of ore resources and mineral reserves at the Pirquitas mine that are
      discussed below.</P></TD></TR>
  <TR>
    <TD width="5%" >&nbsp;</TD>
    <TD colSpan=2>&nbsp;</TD></TR>
  <TR>
    <TD width="5%" >&nbsp;</TD>
    <TD colSpan=2>
      <P align=justify><B>Review of asset carrying values and impairment
      assessment </B>In accordance with the Company&#146;s accounting policy, each
      asset or cash generating unit is evaluated every reporting period to
      determine whether there are any indications of impairment. If any such
      indication exists, a formal estimate of recoverable amount is performed
      and an impairment loss is recognised to the extent that the carrying
      amount exceeds the recoverable amount. The recoverable amount of an asset
      or cash generating group of assets is measured at the higher of fair value
      less costs to sell and value in use.</P></TD></TR>
  <TR>
    <TD width="5%" >&nbsp;</TD>
    <TD colSpan=2>&nbsp;</TD></TR>
  <TR>
    <TD width="5%" >&nbsp;</TD>
    <TD colSpan=2>
      <P align=justify>The determination of fair value and value in use requires
      management to make estimates and assumptions about expected production,
      sales volumes, commodity prices, reserves, operating costs, closure and
      rehabilitiation costs and future capital expenditures. The estimates and
      assumptions are subject to risk and uncertainty, hence there is the
      possibility that changes in circumstances will alter these projections,
      which may impact the recoverable amount of the assets. In such
      circumstances some or all of the carrying value of the assets may be
      further impaired or the impairment charge reduced with the impact recorded
      in the income statement.</P></TD></TR>
  <TR>
    <TD width="5%" >&nbsp;</TD>
    <TD colSpan=2>&nbsp;</TD></TR>
  <TR>
    <TD width="5%" >&nbsp;</TD>
    <TD colSpan=2>
      <P align=justify><B>Determination of ore reserve and mineral resource
      estimates </B>The Company estimates its ore reserves and mineral resources
      based on information compiled by Qualified Persons as defined by NI
      43-101. Reserves determined in this way are used in the calculation of
      depreciation, amortization 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 reserve estimates being revised. Such changes in
      reserves could impact on depreciation and amortisation rates, asset
      carrying values and provisions for close down and restoration
  costs.</P></TD></TR>
  <TR>
    <TD width="5%" >&nbsp;</TD>
    <TD colSpan=2>&nbsp;</TD></TR>
  <TR>
    <TD width="5%" >&nbsp;</TD>
    <TD colSpan=2>
      <P align=justify>As at September 30, 2011, the Company determined that
      there were impairment indicators for the Company&#146;s wholly-owned operating
      Pirquitas mine as a result of revised mineral Resources and Reserve
      estimates. Management performed an impairment assessment to determine fair
      value based on estimates of discounted future after-tax cash flows
      expected to be derived from the Pirquitas mine using a discount rate of 9%
      and forecasted silver prices that reflect market consensus. The Company&#146;s
      assessment concluded that the carrying value of the Pirquitas mine assets
    are not impaired at this time.</P></TD></TR></TABLE>
<P align=right>9 | P a g e</P>
<HR style="PAGE-BREAK-AFTER: always" align=center width="100%" color=black
noShade SIZE=5>
<A name=page_10></A><BR>
<TABLE
style="BORDER-COLOR: black; FONT-SIZE: 10pt; BORDER-COLLAPSE: collapse; "
cellSpacing=0 cellPadding=0 width="100%" border=0>

  <TR vAlign=top>
    <TD align=left><B>Silver Standard Resources Inc. </B></TD></TR>
  <TR vAlign=top>
    <TD align=left>Notes to Consolidated Interim Financial Statements </TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>For the three and
      nine months ended September 30, 2011 </TD></TR>
  <TR vAlign=top>
    <TD align=left>(tabular amounts expressed in thousands of United States
      dollars unless otherwise stated - unaudited) </TD></TR></TABLE><BR>
<TABLE
style="BORDER-COLOR: black; FONT-SIZE: 10pt; BORDER-COLLAPSE: collapse; "
cellSpacing=0 cellPadding=0 width="100%" border=0 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></TABLE><BR>
<TABLE
style="BORDER-COLOR: black; FONT-SIZE: 10pt; BORDER-COLLAPSE: collapse; "
cellSpacing=0 cellPadding=0 width="100%" border=0 BCLLIST>

  <TR>
    <TD width="5%"  >&nbsp;</TD>
    <TD vAlign=top width="5%"><B>c) </B></TD>
    <TD>
      <P align=justify><B>Future accounting changes</B></P></TD></TR></TABLE>
<P style="MARGIN-LEFT: 5%" align=justify>On June 16, 2011 the IASB issued
<I>Presentation of Items of Other Comprehensive Income </I>(amendments to IAS 1,
<I>Presentation of Financial Statements</I>). The amendments require the
grouping of items presented in other comprehensive income into items that might
be reclassified to profit or loss in subsequent periods and items that will not
be reclassified to profit or loss in subsequent periods. The amendments are
effective for annual periods beginning on or after July 1, 2012, with full
retrospective application. The adoption of this standard will impact the
presentation of the statement of other comprehensive income (loss) from the date
of adoption; the Company has not determined whether it will adopt the standard
early.</P>
<P style="MARGIN-LEFT: 5%" align=justify>In October 2011 the IASB issued IFRIC
20 <I>Stripping Costs in the Production Phase of a Mine </I>(&#147;IFRIC 20&#148;). This
interpretation provides guidance on the accounting for the costs of stripping
activity in the production phase when two benefits accrue to the entity: usable
ore that can be used to produce inventory and improved access to further
quantities of material that will be mined in future periods. IFRIC 20 is
applicable for annual periods beginning on or after January 1, 2013 with early
adoption permitted. The Company has not yet assessed the impact of the standard
or determined whether it will adopt the standard early.</P>
<TABLE
style="BORDER-COLOR: black; FONT-SIZE: 10pt; BORDER-COLLAPSE: collapse; "
cellSpacing=0 cellPadding=0 width="100%" border=0 BCLLIST>

  <TR>
    <TD vAlign=top width="5%"><B>3. </B></TD>
    <TD>
      <P align=justify><B>OTHER FINANCIAL ASSETS</B></P></TD></TR></TABLE><BR>
<TABLE
style="BORDER-COLOR: black; FONT-SIZE: 10pt; BORDER-COLLAPSE: collapse; "
cellSpacing=0 cellPadding=0 width="100%" border=0>

  <TR vAlign=top>
    <TD width="5%"  >&nbsp;</TD>
    <TD align=left>&nbsp; </TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=center width="23%" colSpan=4><B>September 30, 2011 </B></TD>
    <TD align=center width="2%" >&nbsp;</TD>
    <TD align=center width="1%" >&nbsp;</TD>
    <TD align=center width="23%" colSpan=4><B>December 31, 2010 </B></TD>
    <TD align=left width="2%" >&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD width="5%" >&nbsp;</TD>
    <TD align=left>&nbsp; </TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD width="10%" align=right nowrap><B>Non-current </B></TD>
    <TD width="2%" align=left nowrap >&nbsp;</TD>
    <TD width="1%" align=left nowrap >&nbsp;</TD>
    <TD width="10%" align=right nowrap><B>Current </B></TD>
    <TD width="2%" align=left nowrap >&nbsp;</TD>
    <TD width="1%" align=left nowrap >&nbsp;</TD>
    <TD width="10%" align=right nowrap><B>Non-current </B></TD>
    <TD width="2%" align=left nowrap >&nbsp;</TD>
    <TD width="1%" align=left nowrap >&nbsp;</TD>
    <TD width="10%" align=right nowrap><B>Current </B></TD>
  <TD align=left width="2%" >&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD width="5%" >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>&nbsp; </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
    ><B></B></TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right
      width="10%"><STRONG>$</STRONG>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="2%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
    ></TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right
      width="10%"><STRONG>$</STRONG>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="2%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
    ></TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right
      width="10%"><STRONG>$</STRONG>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="2%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
    ><B></B></TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right
      width="10%"><STRONG>$</STRONG>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="2%"
    >&nbsp;</TD></TR>
  <TR>
    <TD width="5%" >&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>
    <TD width="1%" >&nbsp;</TD>
    <TD width="10%">&nbsp; </TD>
    <TD width="2%" >&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD width="5%" >&nbsp;</TD>
    <TD align=left bgColor=#e6efff>Restricted cash </TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="10%" bgColor=#e6efff><B>1,767 </B></TD>
    <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="10%" bgColor=#e6efff><B>- </B></TD>
    <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="10%" bgColor=#e6efff>2,071 </TD>
    <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="10%" bgColor=#e6efff>- </TD>
    <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD width="5%" >&nbsp;</TD>
    <TD align=left>Marketable securities </TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=right width="10%"><B>- </B></TD>
    <TD align=left width="2%" >&nbsp;</TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=right width="10%"><B>36,403 </B></TD>
    <TD align=left width="2%" >&nbsp;</TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=right width="10%">- </TD>
    <TD align=left width="2%" >&nbsp;</TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=right width="10%">33,465 </TD>
    <TD align=left width="2%" >&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD width="5%" >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left
      bgColor=#e6efff>Convertible debenture receivable <SUP>(a </SUP><SUP>)
      </SUP></TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
     bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right width="10%"
    bgColor=#e6efff><B>- </B></TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="2%"
     bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
     bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right width="10%"
    bgColor=#e6efff><B>2,815 </B></TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="2%"
     bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
     bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right width="10%"
    bgColor=#e6efff>7,180 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="2%"
     bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
     bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right width="10%"
    bgColor=#e6efff>186 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="2%"
     bgColor=#e6efff>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD width="5%" >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=left>&nbsp; </TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=left width="1%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=right
      width="10%"><B>1,767 </B></TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=left width="2%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=left width="1%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=right
      width="10%"><B>39,218 </B></TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=left width="2%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=left width="1%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=right width="10%">9,251
    </TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=left width="2%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=left width="1%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=right
      width="10%">33,651 </TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=left width="2%"
    >&nbsp;</TD></TR></TABLE><BR>
<TABLE
style="BORDER-COLOR: black; FONT-SIZE: 10pt; BORDER-COLLAPSE: collapse; "
cellSpacing=0 cellPadding=0 width="100%" border=0 BCLLIST>

  <TR>
    <TD width="5%"  >&nbsp;</TD>
    <TD vAlign=top width="5%"><sup>(a) </sup></TD>
    <TD>
      <P align=justify>The Company received a $9,980,000 (C$10,000,000)
      convertible debenture with a coupon rate of 3% per annum from Aurcana
      Corporation (&#147;Aurcana&#148;) as part of the consideration received for the sale
      of the Shafter Silver property in 2008. The convertible debenture was
      repayable on July 15, 2011. In 2009 the coupon rate on the debenture was
      revised from 3% per year to 1.5% in the first year and 4% per year
      thereafter, which resulted in an impairment of $2,002,000 during that
      year. On March 25, 2011 the terms of the convertible debenture receivable
      were renegotiated so that Aurcana was required to pay C$7,000,000 on July
      15, 2011 and the remaining C$3,000,000 in quarterly instalments until July
      15, 2012. The interest rate for the remainder of the arrangement was
      increased to 9%. This resulted in a recovery of the previous impairment of
      $2,400,000 which was recorded within other income (expenses) (note 13) and
      the reclassification of $8,600,000 to current assets. On July 15, 2011,
      the Company received a payment for C$7,400,000 from Aurcana of which
      C$7,000,000 was applied to reduce the principal outstanding as per the
      March 25, 2011 amended terms and C$400,000 was in respect of the interest
      earned to July 15, 2011.</P></TD></TR></TABLE>
<P align=right>10 | P a g e</P>
<HR style="PAGE-BREAK-AFTER: always" align=center width="100%" color=black
noShade SIZE=5>
<!--$$/page=--><A name=page_11></A><BR>
<TABLE
style="BORDER-COLOR: black; FONT-SIZE: 10pt; BORDER-COLLAPSE: collapse; "
cellSpacing=0 cellPadding=0 width="100%" border=0>

  <TR vAlign=top>
    <TD align=left><B>Silver Standard Resources Inc.</B> </TD></TR>
  <TR vAlign=top>
    <TD align=left>Notes to Consolidated Interim Financial Statements </TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>For the three and
      nine months ended September 30, 2011 </TD></TR>
  <TR vAlign=top>
    <TD align=left>(tabular amounts expressed in thousands of United States
      dollars unless otherwise stated - unaudited) </TD></TR></TABLE><BR>
<TABLE
style="BORDER-COLOR: black; FONT-SIZE: 10pt; BORDER-COLLAPSE: collapse; "
cellSpacing=0 cellPadding=0 width="100%" border=0 BCLLIST>

  <TR>
    <TD vAlign=top width="5%"><B>4.</B> </TD>
    <TD>
      <P align=justify><B>INVENTORY</B></P></TD></TR></TABLE>
<P style="MARGIN-LEFT: 5%" align=justify>Inventory is comprised of the
following:</P>
<DIV align=center>
<TABLE
style="BORDER-COLOR: black; FONT-SIZE: 10pt; BORDER-COLLAPSE: collapse; "
cellSpacing=0 cellPadding=0 width="90%" border=0>

  <TR vAlign=top>
    <TD align=left>&nbsp; </TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD width="12%" align=right nowrap><B>September 30</B> </TD>
    <TD width="2%" align=left nowrap >&nbsp;</TD>
    <TD width="1%" align=left nowrap >&nbsp;</TD>
    <TD width="12%" align=right nowrap><B>December 31</B> </TD>
    <TD align=left width="2%" >&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left>&nbsp; </TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD width="12%" align=right nowrap><B>2011</B> </TD>
    <TD width="2%" align=left nowrap >&nbsp;</TD>
    <TD width="1%" align=left nowrap >&nbsp;</TD>
    <TD width="12%" align=right nowrap><B>2010</B> </TD>
    <TD align=left width="2%" >&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>&nbsp; </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
    ><B></B></TD>
    <TD
      width="12%" align=right nowrap style="BORDER-BOTTOM: #000000 1px solid"><STRONG>$</STRONG>&nbsp;</TD>
    <TD width="2%" align=left nowrap style="BORDER-BOTTOM: #000000 1px solid"
    >&nbsp;</TD>
    <TD width="1%" align=left nowrap style="BORDER-BOTTOM: #000000 1px solid"
    ><B></B></TD>
    <TD
      width="12%" align=right nowrap style="BORDER-BOTTOM: #000000 1px solid"><STRONG>$</STRONG>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="2%"
    >&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 align=left bgColor=#e6efff>Finished goods </TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="12%" bgColor=#e6efff><B>31,714</B> </TD>
    <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="12%" bgColor=#e6efff>6,919 </TD>
    <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left>Stockpiled ore </TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=right width="12%"><B>34,536</B> </TD>
    <TD align=left width="2%" >&nbsp;</TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=right width="12%">26,327 </TD>
    <TD align=left width="2%" >&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left
      bgColor=#e6efff>Materials and supplies </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
     bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right width="12%"
    bgColor=#e6efff><B>12,521</B> </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="2%"
     bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
     bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right width="12%"
    bgColor=#e6efff>6,930 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="2%"
     bgColor=#e6efff>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=left>&nbsp; </TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=left width="1%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=right
      width="12%"><B>78,771</B> </TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=left width="2%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=left width="1%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=right
      width="12%">40,176 </TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=left width="2%"
    >&nbsp;</TD></TR></TABLE></DIV><BR>
<TABLE
style="BORDER-COLOR: black; FONT-SIZE: 10pt; BORDER-COLLAPSE: collapse; "
cellSpacing=0 cellPadding=0 width="100%" border=0 BCLLIST>

  <TR>
    <TD vAlign=top width="5%"><B>5.</B> </TD>
    <TD>
      <P align=justify><B>PROPERTY, PLANT AND
EQUIPMENT</B></P></TD></TR></TABLE>
<P style="MARGIN-LEFT: 5%" align=justify>Property, plant and equipment comprises
the following:</P>
<TABLE
style="BORDER-COLOR: black; FONT-SIZE: 8pt; BORDER-COLLAPSE: collapse; "
cellSpacing=0 cellPadding=0 width="100%" border=0>

  <TR vAlign=top>
    <TD width="5%"  >&nbsp;</TD>
    <TD align=left>&nbsp; </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="8%">&nbsp;
    </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="2%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=center width="30%"
    colSpan=7><B>Period ended September 30, 2011</B> </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="2%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="8%">&nbsp;
    </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="2%"
    >&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD width="5%" >&nbsp;</TD>
    <TD align=left>&nbsp; </TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD width="8%" align=right nowrap><B>Plant and</B> </TD>
    <TD width="2%" align=left nowrap >&nbsp;</TD>
    <TD width="1%" align=left nowrap >&nbsp;</TD>
    <TD width="8%" align=right nowrap><B>Producing</B> </TD>
    <TD width="2%" align=left nowrap >&nbsp;</TD>
    <TD width="1%" align=left nowrap >&nbsp;</TD>
    <TD width="8%" align=right nowrap><B>Assets </B></TD>
    <TD width="2%" align=right nowrap >&nbsp;</TD>
    <TD width="1%" align=right nowrap >&nbsp;</TD>
    <TD width="8%" align=right nowrap ><STRONG>Exploration
      and</STRONG>&nbsp;&nbsp;</TD>
    <TD width="2%" align=left nowrap >&nbsp;</TD>
    <TD width="1%" align=left nowrap >&nbsp;</TD>
    <TD width="8%" align=right nowrap><B>Total</B> </TD>
  <TD align=left width="2%" >&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD width="5%" >&nbsp;</TD>
    <TD align=left>&nbsp; </TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD width="8%" align=right nowrap><B>equipment</B> </TD>
    <TD width="2%" align=left nowrap >&nbsp;</TD>
    <TD width="1%" align=left nowrap >&nbsp;</TD>
    <TD width="8%" align=right nowrap><B>properties</B> </TD>
    <TD width="2%" align=left nowrap >&nbsp;</TD>
    <TD width="1%" align=left nowrap >&nbsp;</TD>
    <TD width="8%" align=right nowrap><B>under</B> </TD>
    <TD width="2%" align=left nowrap >&nbsp;</TD>
    <TD width="1%" align=left nowrap >&nbsp;</TD>
    <TD width="8%" align=right nowrap><B>development</B> </TD>
    <TD width="2%" align=left nowrap >&nbsp;</TD>
    <TD width="1%" align=left nowrap >&nbsp;</TD>
    <TD width="8%" align=left nowrap>&nbsp; </TD>
  <TD align=left width="2%" >&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD width="5%" >&nbsp;</TD>
    <TD align=left>&nbsp; </TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD width="8%" align=left nowrap>&nbsp; </TD>
    <TD width="2%" align=left nowrap >&nbsp;</TD>
    <TD width="1%" align=left nowrap >&nbsp;</TD>
    <TD width="8%" align=left nowrap>&nbsp; </TD>
    <TD width="2%" align=left nowrap >&nbsp;</TD>
    <TD width="1%" align=left nowrap >&nbsp;</TD>
    <TD width="8%" align=right nowrap><B>construction</B> </TD>
    <TD width="2%" align=left nowrap >&nbsp;</TD>
    <TD width="1%" align=left nowrap >&nbsp;</TD>
    <TD width="8%" align=right nowrap><B>expenditure </B><B><SUP>(a)</SUP></B> </TD>
    <TD width="2%" align=left nowrap >&nbsp;</TD>
    <TD width="1%" align=left nowrap >&nbsp;</TD>
    <TD width="8%" align=left nowrap>&nbsp; </TD>
  <TD align=left width="2%" >&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD width="5%" >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>&nbsp; </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
    ><B></B></TD>
    <TD
      width="8%" align=right nowrap style="BORDER-BOTTOM: #000000 1px solid"><STRONG>$</STRONG>&nbsp;</TD>
    <TD width="2%" align=left nowrap style="BORDER-BOTTOM: #000000 1px solid"
    >&nbsp;</TD>
    <TD width="1%" align=left nowrap style="BORDER-BOTTOM: #000000 1px solid"
    ><B></B></TD>
    <TD
      width="8%" align=right nowrap style="BORDER-BOTTOM: #000000 1px solid"><STRONG>$</STRONG>&nbsp;</TD>
    <TD width="2%" align=left nowrap style="BORDER-BOTTOM: #000000 1px solid"
    >&nbsp;</TD>
    <TD width="1%" align=left nowrap style="BORDER-BOTTOM: #000000 1px solid"
    ><B></B></TD>
    <TD
      width="8%" align=right nowrap style="BORDER-BOTTOM: #000000 1px solid"><STRONG>$</STRONG>&nbsp;</TD>
    <TD width="2%" align=left nowrap style="BORDER-BOTTOM: #000000 1px solid"
    >&nbsp;</TD>
    <TD width="1%" align=left nowrap style="BORDER-BOTTOM: #000000 1px solid"
    ><B></B></TD>
    <TD
      width="8%" align=right nowrap style="BORDER-BOTTOM: #000000 1px solid"><STRONG>$</STRONG>&nbsp;</TD>
    <TD width="2%" align=left nowrap style="BORDER-BOTTOM: #000000 1px solid"
    >&nbsp;</TD>
    <TD width="1%" align=left nowrap style="BORDER-BOTTOM: #000000 1px solid"
    ><B></B></TD>
    <TD
      width="8%" align=right nowrap style="BORDER-BOTTOM: #000000 1px solid"><STRONG>$</STRONG>&nbsp;</TD>
  <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="2%"
    >&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD width="5%" >&nbsp;</TD>
    <TD align=left bgColor=#e6efff><B>Cost</B> </TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="8%" bgColor=#e6efff>&nbsp; </TD>
    <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="8%" bgColor=#e6efff>&nbsp; </TD>
    <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="8%" bgColor=#e6efff>&nbsp; </TD>
    <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="8%" bgColor=#e6efff>&nbsp; </TD>
    <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="8%" bgColor=#e6efff>&nbsp; </TD>
    <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD width="5%" >&nbsp;</TD>
    <TD align=left>Balance, January 1, 2011 </TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=right width="8%">263,305 </TD>
    <TD align=left width="2%" >&nbsp;</TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=right width="8%">76,209 </TD>
    <TD align=left width="2%" >&nbsp;</TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=right width="8%">8,695 </TD>
    <TD align=left width="2%" >&nbsp;</TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=right width="8%">190,909 </TD>
    <TD align=left width="2%" >&nbsp;</TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=right width="8%"><B>539,118</B> </TD>
    <TD align=left width="2%" >&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD width="5%" >&nbsp;</TD>
    <TD align=left bgColor=#e6efff>Additions </TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="8%" bgColor=#e6efff>1,989 </TD>
    <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="8%" bgColor=#e6efff>102 </TD>
    <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="8%" bgColor=#e6efff>18,554 </TD>
    <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="8%" bgColor=#e6efff>25,501 </TD>
    <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="8%" bgColor=#e6efff><B>46,146</B> </TD>
    <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD width="5%" >&nbsp;</TD>
    <TD align=left>Disposals </TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=right width="8%">(3,542</TD>
    <TD align=left width="2%" >) </TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=right width="8%">(256</TD>
    <TD align=left width="2%" >) </TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=right width="8%">- </TD>
    <TD align=left width="2%" >&nbsp;</TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=right width="8%">(19,630</TD>
    <TD align=left width="2%" >) </TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=right width="8%"><B>(23,428</B></TD>
    <TD align=left width="2%" ><B>)</B> </TD></TR>
  <TR vAlign=top>
    <TD width="5%" >&nbsp;</TD>
    <TD align=left bgColor=#e6efff>Costs written off </TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="8%" bgColor=#e6efff>- </TD>
    <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="8%" bgColor=#e6efff>- </TD>
    <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="8%" bgColor=#e6efff>- </TD>
    <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="8%" bgColor=#e6efff>(4,514</TD>
    <TD align=left width="2%"  bgColor=#e6efff>) </TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="8%" bgColor=#e6efff><B>(4,514</B></TD>
    <TD align=left width="2%"  bgColor=#e6efff><B>)</B> </TD></TR>
  <TR vAlign=top>
    <TD width="5%" >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>Transfers </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right width="8%">15,717
    </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="2%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right width="8%">224
</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="2%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right
    width="8%">(15,941</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="2%"
    >) </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right width="8%">- </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="2%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right
      width="8%"><B>-</B> </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="2%"
    >&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD width="5%" >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left
      bgColor=#e6efff>Balance, end of period </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
     bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right width="8%"
    bgColor=#e6efff>277,469 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="2%"
     bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
     bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right width="8%"
    bgColor=#e6efff>76,279 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="2%"
     bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
     bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right width="8%"
    bgColor=#e6efff>11,308 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="2%"
     bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
     bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right width="8%"
    bgColor=#e6efff>192,266 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="2%"
     bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
     bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right width="8%"
    bgColor=#e6efff><B>557,322</B> </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="2%"
     bgColor=#e6efff>&nbsp;</TD></TR>
  <TR>
    <TD width="5%" >&nbsp;</TD>
    <TD>&nbsp; </TD>
    <TD width="1%" >&nbsp;</TD>
    <TD width="8%">&nbsp; </TD>
    <TD width="2%" >&nbsp;</TD>
    <TD width="1%" >&nbsp;</TD>
    <TD width="8%">&nbsp; </TD>
    <TD width="2%" >&nbsp;</TD>
    <TD width="1%" >&nbsp;</TD>
    <TD width="8%">&nbsp; </TD>
    <TD width="2%" >&nbsp;</TD>
    <TD width="1%" >&nbsp;</TD>
    <TD width="8%">&nbsp; </TD>
    <TD width="2%" >&nbsp;</TD>
    <TD width="1%" >&nbsp;</TD>
    <TD width="8%">&nbsp; </TD>
    <TD width="2%" >&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD width="5%" >&nbsp;</TD>
    <TD align=left bgColor=#e6efff><B>Accumulated depreciation</B> </TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="8%" bgColor=#e6efff>&nbsp; </TD>
    <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="8%" bgColor=#e6efff>&nbsp; </TD>
    <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="8%" bgColor=#e6efff>&nbsp; </TD>
    <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="8%" bgColor=#e6efff>&nbsp; </TD>
    <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="8%" bgColor=#e6efff>&nbsp; </TD>
    <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD width="5%" >&nbsp;</TD>
    <TD align=left>Balance, January 1, 2011 </TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=right width="8%">(35,450</TD>
    <TD align=left width="2%" >) </TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=right width="8%">(4,036</TD>
    <TD align=left width="2%" >) </TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=right width="8%">- </TD>
    <TD align=left width="2%" >&nbsp;</TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=right width="8%">- </TD>
    <TD align=left width="2%" >&nbsp;</TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=right width="8%"><B>(39,486</B></TD>
    <TD align=left width="2%" ><B>)</B> </TD></TR>
  <TR vAlign=top>
    <TD width="5%" >&nbsp;</TD>
    <TD align=left bgColor=#e6efff>Charge for the year </TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="8%" bgColor=#e6efff>(18,281</TD>
    <TD align=left width="2%"  bgColor=#e6efff>) </TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="8%" bgColor=#e6efff>(2,360</TD>
    <TD align=left width="2%"  bgColor=#e6efff>) </TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="8%" bgColor=#e6efff>- </TD>
    <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="8%" bgColor=#e6efff>- </TD>
    <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="8%" bgColor=#e6efff><B>(20,641</B></TD>
    <TD align=left width="2%"  bgColor=#e6efff><B>)</B> </TD></TR>
  <TR vAlign=top>
    <TD width="5%" >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>Disposals </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right width="8%">3,313
    </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="2%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right width="8%">- </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="2%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right width="8%">- </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="2%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right width="8%">- </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="2%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right
      width="8%"><B>3,313</B> </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="2%"
    >&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD width="5%" >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left
      bgColor=#e6efff>Balance, end of period </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
     bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right width="8%"
    bgColor=#e6efff>(50,418</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="2%"
     bgColor=#e6efff>) </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
     bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right width="8%"
    bgColor=#e6efff>(6,396</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="2%"
     bgColor=#e6efff>) </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
     bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right width="8%"
    bgColor=#e6efff>- </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="2%"
     bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
     bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right width="8%"
    bgColor=#e6efff>- </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="2%"
     bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
     bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right width="8%"
    bgColor=#e6efff><B>(56,814</B></TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="2%"
     bgColor=#e6efff><B>)</B> </TD></TR>
  <TR>
    <TD width="5%" >&nbsp;</TD>
    <TD>&nbsp; </TD>
    <TD width="1%" >&nbsp;</TD>
    <TD width="8%">&nbsp; </TD>
    <TD width="2%" >&nbsp;</TD>
    <TD width="1%" >&nbsp;</TD>
    <TD width="8%">&nbsp; </TD>
    <TD width="2%" >&nbsp;</TD>
    <TD width="1%" >&nbsp;</TD>
    <TD width="8%">&nbsp; </TD>
    <TD width="2%" >&nbsp;</TD>
    <TD width="1%" >&nbsp;</TD>
    <TD width="8%">&nbsp; </TD>
    <TD width="2%" >&nbsp;</TD>
    <TD width="1%" >&nbsp;</TD>
    <TD width="8%">&nbsp; </TD>
    <TD width="2%" >&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD width="5%" >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=left
      bgColor=#e6efff><B>Net book value at September 30, 2011</B> </TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=left width="1%"
     bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=right width="8%"
    bgColor=#e6efff><B>227,051</B> </TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=left width="2%"
     bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=left width="1%"
     bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=right width="8%"
    bgColor=#e6efff><B>69,883</B> </TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=left width="2%"
     bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=left width="1%"
     bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=right width="8%"
    bgColor=#e6efff><B>11,308</B> </TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=left width="2%"
     bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=left width="1%"
     bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=right width="8%"
    bgColor=#e6efff><B>192,266</B> </TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=left width="2%"
     bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=left width="1%"
     bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=right width="8%"
    bgColor=#e6efff><B>500,508</B> </TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=left width="2%"
     bgColor=#e6efff>&nbsp;</TD></TR></TABLE>
<P style="MARGIN-LEFT: 5%" align=justify>No items of property, plant and
equipment have been pledged as security for liabilities. </P>
<P align=right>11 | P a g e</P>
<HR style="PAGE-BREAK-AFTER: always" align=center width="100%" color=black
noShade SIZE=5>
<!--$$/page=--><A name=page_12></A><BR>
<TABLE
style="BORDER-COLOR: black; FONT-SIZE: 10pt; BORDER-COLLAPSE: collapse; "
cellSpacing=0 cellPadding=0 width="100%" border=0>

  <TR vAlign=top>
    <TD align=left><B>Silver Standard Resources Inc.</B> </TD></TR>
  <TR vAlign=top>
    <TD align=left>Notes to Consolidated Interim Financial Statements </TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>For the three and
      nine months ended September 30, 2011 </TD></TR>
  <TR vAlign=top>
    <TD align=left>(tabular amounts expressed in thousands of United States
      dollars unless otherwise stated - unaudited) </TD></TR></TABLE><BR>
<TABLE
style="BORDER-COLOR: black; FONT-SIZE: 10pt; BORDER-COLLAPSE: collapse; "
cellSpacing=0 cellPadding=0 width="100%" border=0 BCLLIST>

  <TR>
    <TD vAlign=top width="5%"><B>5.</B> </TD>
    <TD>
      <P align=justify><B>PROPERTY, PLANT AND EQUIPMENT
  (Cont&#146;d)</B></P></TD></TR></TABLE><BR>
<TABLE
style="BORDER-COLOR: black; FONT-SIZE: 8pt; BORDER-COLLAPSE: collapse; "
cellSpacing=0 cellPadding=0 width="100%" border=0>

  <TR vAlign=top>
    <TD width="5%"  >&nbsp;</TD>
    <TD align=left>&nbsp; </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="8%">&nbsp;
    </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="2%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=center width="30%"
    colSpan=7><B>Year ended December 31, 2010</B> </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="2%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="8%">&nbsp;
    </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="2%"
    >&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD width="5%" >&nbsp;</TD>
    <TD align=left>&nbsp; </TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD width="8%" align=right nowrap><B>Plant and</B> </TD>
    <TD width="2%" align=left nowrap >&nbsp;</TD>
    <TD width="1%" align=left nowrap >&nbsp;</TD>
    <TD width="8%" align=right nowrap><B>Producing</B> </TD>
    <TD width="2%" align=left nowrap >&nbsp;</TD>
    <TD width="1%" align=left nowrap >&nbsp;</TD>
    <TD width="8%" align=right nowrap><B>Assets </B></TD>
    <TD width="2%" align=right nowrap >&nbsp;</TD>
    <TD width="1%" align=right nowrap >&nbsp;</TD>
    <TD width="8%" align=right nowrap ><STRONG>Exploration
      and</STRONG>&nbsp;&nbsp;</TD>
    <TD width="2%" align=left nowrap >&nbsp;</TD>
    <TD width="1%" align=left nowrap >&nbsp;</TD>
    <TD width="8%" align=right nowrap><B>Total</B> </TD>
  <TD align=left width="2%" >&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD width="5%" >&nbsp;</TD>
    <TD align=left>&nbsp; </TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD width="8%" align=right nowrap><B>equipment</B> </TD>
    <TD width="2%" align=left nowrap >&nbsp;</TD>
    <TD width="1%" align=left nowrap >&nbsp;</TD>
    <TD width="8%" align=right nowrap><B>properties</B> </TD>
    <TD width="2%" align=left nowrap >&nbsp;</TD>
    <TD width="1%" align=left nowrap >&nbsp;</TD>
    <TD width="8%" align=right nowrap><B>under</B> </TD>
    <TD width="2%" align=left nowrap >&nbsp;</TD>
    <TD width="1%" align=left nowrap >&nbsp;</TD>
    <TD width="8%" align=right nowrap><B>development</B> </TD>
    <TD width="2%" align=left nowrap >&nbsp;</TD>
    <TD width="1%" align=left nowrap >&nbsp;</TD>
    <TD width="8%" align=left nowrap>&nbsp; </TD>
  <TD align=left width="2%" >&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD width="5%" >&nbsp;</TD>
    <TD align=left>&nbsp; </TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD width="8%" align=left nowrap>&nbsp; </TD>
    <TD width="2%" align=left nowrap >&nbsp;</TD>
    <TD width="1%" align=left nowrap >&nbsp;</TD>
    <TD width="8%" align=left nowrap>&nbsp; </TD>
    <TD width="2%" align=left nowrap >&nbsp;</TD>
    <TD width="1%" align=left nowrap >&nbsp;</TD>
    <TD width="8%" align=right nowrap><B>construction</B> </TD>
    <TD width="2%" align=left nowrap >&nbsp;</TD>
    <TD width="1%" align=left nowrap >&nbsp;</TD>
    <TD width="8%" align=right nowrap><B>expenditure (a)</B> </TD>
    <TD width="2%" align=left nowrap >&nbsp;</TD>
    <TD width="1%" align=left nowrap >&nbsp;</TD>
    <TD width="8%" align=left nowrap>&nbsp; </TD>
  <TD align=left width="2%" >&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD width="5%" >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>&nbsp; </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
    ><B></B></TD>
    <TD
      width="8%" align=right nowrap style="BORDER-BOTTOM: #000000 1px solid"><STRONG>$</STRONG>&nbsp;</TD>
    <TD width="2%" align=left nowrap style="BORDER-BOTTOM: #000000 1px solid"
    >&nbsp;</TD>
    <TD width="1%" align=left nowrap style="BORDER-BOTTOM: #000000 1px solid"
    ><B></B></TD>
    <TD
      width="8%" align=right nowrap style="BORDER-BOTTOM: #000000 1px solid"><STRONG>$</STRONG>&nbsp;</TD>
    <TD width="2%" align=left nowrap style="BORDER-BOTTOM: #000000 1px solid"
    >&nbsp;</TD>
    <TD width="1%" align=left nowrap style="BORDER-BOTTOM: #000000 1px solid"
    ><B></B></TD>
    <TD
      width="8%" align=right nowrap style="BORDER-BOTTOM: #000000 1px solid"><STRONG>$</STRONG>&nbsp;</TD>
    <TD width="2%" align=left nowrap style="BORDER-BOTTOM: #000000 1px solid"
    >&nbsp;</TD>
    <TD width="1%" align=left nowrap style="BORDER-BOTTOM: #000000 1px solid"
    ></TD>
    <TD
      width="8%" align=right nowrap style="BORDER-BOTTOM: #000000 1px solid"><STRONG>$</STRONG>&nbsp;</TD>
    <TD width="2%" align=left nowrap style="BORDER-BOTTOM: #000000 1px solid"
    >&nbsp;</TD>
    <TD width="1%" align=left nowrap style="BORDER-BOTTOM: #000000 1px solid"
    ><B></B></TD>
    <TD
      width="8%" align=right nowrap style="BORDER-BOTTOM: #000000 1px solid"><STRONG>$</STRONG>&nbsp;</TD>
  <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="2%"
    >&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD width="5%" >&nbsp;</TD>
    <TD align=left bgColor=#e6efff><B>Cost</B> </TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="8%" bgColor=#e6efff>&nbsp; </TD>
    <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="8%" bgColor=#e6efff>&nbsp; </TD>
    <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="8%" bgColor=#e6efff>&nbsp; </TD>
    <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="8%" bgColor=#e6efff>&nbsp; </TD>
    <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="8%" bgColor=#e6efff>&nbsp; </TD>
    <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD width="5%" >&nbsp;</TD>
    <TD align=left>Balance, January 1, 2010 </TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=right width="8%">250,085 </TD>
    <TD align=left width="2%" >&nbsp;</TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=right width="8%">76,841 </TD>
    <TD align=left width="2%" >&nbsp;</TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=right width="8%">8,015 </TD>
    <TD align=left width="2%" >&nbsp;</TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=right width="8%">179,445 </TD>
    <TD align=left width="2%" >&nbsp;</TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=right width="8%">514,386 </TD>
    <TD align=left width="2%" >&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD width="5%" >&nbsp;</TD>
    <TD align=left bgColor=#e6efff>Additions </TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="8%" bgColor=#e6efff>7,644 </TD>
    <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="8%" bgColor=#e6efff>5,017 </TD>
    <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="8%" bgColor=#e6efff>15,806 </TD>
    <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="8%" bgColor=#e6efff>55,942 </TD>
    <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="8%" bgColor=#e6efff>84,409 </TD>
    <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD width="5%" >&nbsp;</TD>
    <TD align=left>Disposals </TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=right width="8%">(8,455</TD>
    <TD align=left width="2%" >) </TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=right width="8%">(5,649</TD>
    <TD align=left width="2%" >) </TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=right width="8%">(1,095</TD>
    <TD align=left width="2%" >) </TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=right width="8%">(44,478</TD>
    <TD align=left width="2%" >) </TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=right width="8%">(59,677</TD>
    <TD align=left width="2%" >) </TD></TR>
  <TR vAlign=top>
    <TD width="5%" >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left
      bgColor=#e6efff>Transfers </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
     bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right width="8%"
    bgColor=#e6efff>14,031 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="2%"
     bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
     bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right width="8%"
    bgColor=#e6efff>- </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="2%"
     bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
     bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right width="8%"
    bgColor=#e6efff>(14,031</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="2%"
     bgColor=#e6efff>) </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
     bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right width="8%"
    bgColor=#e6efff>- </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="2%"
     bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
     bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right width="8%"
    bgColor=#e6efff>- </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="2%"
     bgColor=#e6efff>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD width="5%" >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>Balance, end of
      period </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right
      width="8%">263,305 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="2%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right width="8%">76,209
    </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="2%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right width="8%">8,695
    </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="2%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right
      width="8%">190,909 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="2%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right
      width="8%">539,118 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="2%"
    >&nbsp;</TD></TR>
  <TR>
    <TD width="5%" >&nbsp;</TD>
    <TD bgColor=#e6efff>&nbsp; </TD>
    <TD width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD width="8%" bgColor=#e6efff>&nbsp; </TD>
    <TD width="2%"  bgColor=#e6efff>&nbsp;</TD>
    <TD width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD width="8%" bgColor=#e6efff>&nbsp; </TD>
    <TD width="2%"  bgColor=#e6efff>&nbsp;</TD>
    <TD width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD width="8%" bgColor=#e6efff>&nbsp; </TD>
    <TD width="2%"  bgColor=#e6efff>&nbsp;</TD>
    <TD width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD width="8%" bgColor=#e6efff>&nbsp; </TD>
    <TD width="2%"  bgColor=#e6efff>&nbsp;</TD>
    <TD width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD width="8%" bgColor=#e6efff>&nbsp; </TD>
    <TD width="2%"  bgColor=#e6efff>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD width="5%" >&nbsp;</TD>
    <TD align=left><B>Accumulated depreciation</B> </TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=left width="8%">&nbsp; </TD>
    <TD align=left width="2%" >&nbsp;</TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=left width="8%">&nbsp; </TD>
    <TD align=left width="2%" >&nbsp;</TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=left width="8%">&nbsp; </TD>
    <TD align=left width="2%" >&nbsp;</TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=left width="8%">&nbsp; </TD>
    <TD align=left width="2%" >&nbsp;</TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=left width="8%">&nbsp; </TD>
    <TD align=left width="2%" >&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD width="5%" >&nbsp;</TD>
    <TD align=left bgColor=#e6efff>Balance, January 1, 2010 </TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="8%" bgColor=#e6efff>(16,944</TD>
    <TD align=left width="2%"  bgColor=#e6efff>) </TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="8%" bgColor=#e6efff>(618</TD>
    <TD align=left width="2%"  bgColor=#e6efff>) </TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="8%" bgColor=#e6efff>- </TD>
    <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="8%" bgColor=#e6efff>- </TD>
    <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="8%" bgColor=#e6efff>(17,562</TD>
    <TD align=left width="2%"  bgColor=#e6efff>) </TD></TR>
  <TR vAlign=top>
    <TD width="5%" >&nbsp;</TD>
    <TD align=left>Charge for the year </TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=right width="8%">(19,370</TD>
    <TD align=left width="2%" >) </TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=right width="8%">(3,418</TD>
    <TD align=left width="2%" >) </TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=right width="8%">- </TD>
    <TD align=left width="2%" >&nbsp;</TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=right width="8%">- </TD>
    <TD align=left width="2%" >&nbsp;</TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=right width="8%">(22,788</TD>
    <TD align=left width="2%" >) </TD></TR>
  <TR vAlign=top>
    <TD width="5%" >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left
      bgColor=#e6efff>Disposals </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
     bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right width="8%"
    bgColor=#e6efff>864 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="2%"
     bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
     bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right width="8%"
    bgColor=#e6efff>- </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="2%"
     bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
     bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right width="8%"
    bgColor=#e6efff>- </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="2%"
     bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
     bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right width="8%"
    bgColor=#e6efff>- </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="2%"
     bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
     bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right width="8%"
    bgColor=#e6efff>864 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="2%"
     bgColor=#e6efff>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD width="5%" >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>Balance, end of
      period </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right
    width="8%">(35,450</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="2%"
    >) </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right
    width="8%">(4,036</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="2%"
    >) </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right width="8%">- </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="2%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right width="8%">- </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="2%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right
    width="8%">(39,486</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="2%"
    >) </TD></TR>
  <TR>
    <TD width="5%" >&nbsp;</TD>
    <TD bgColor=#e6efff>&nbsp; </TD>
    <TD width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD width="8%" bgColor=#e6efff>&nbsp; </TD>
    <TD width="2%"  bgColor=#e6efff>&nbsp;</TD>
    <TD width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD width="8%" bgColor=#e6efff>&nbsp; </TD>
    <TD width="2%"  bgColor=#e6efff>&nbsp;</TD>
    <TD width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD width="8%" bgColor=#e6efff>&nbsp; </TD>
    <TD width="2%"  bgColor=#e6efff>&nbsp;</TD>
    <TD width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD width="8%" bgColor=#e6efff>&nbsp; </TD>
    <TD width="2%"  bgColor=#e6efff>&nbsp;</TD>
    <TD width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD width="8%" bgColor=#e6efff>&nbsp; </TD>
    <TD width="2%"  bgColor=#e6efff>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD width="5%" >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=left><B>Net book value
      at December 31, 2010</B> </TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=left width="1%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=right
      width="8%">227,855 </TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=left width="2%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=left width="1%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=right width="8%">72,173
    </TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=left width="2%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=left width="1%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=right width="8%">8,695
    </TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=left width="2%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=left width="1%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=right
      width="8%">190,909 </TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=left width="2%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=left width="1%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=right
      width="8%">499,632 </TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=left width="2%"
    >&nbsp;</TD></TR></TABLE><BR>
<TABLE
style="BORDER-COLOR: black; FONT-SIZE: 10pt; BORDER-COLLAPSE: collapse; "
cellSpacing=0 cellPadding=0 width="100%" border=0 BCLLIST>

  <TR>
    <TD width="5%"  >&nbsp;</TD>
    <TD vAlign=top width="5%"><B>a)</B> </TD>
    <TD>
      <P align=justify><B>Exploration and development expenditure by
      property</B></P></TD></TR></TABLE><BR>
<TABLE
style="BORDER-COLOR: black; FONT-SIZE: 10pt; BORDER-COLLAPSE: collapse; "
cellSpacing=0 cellPadding=0 width="100%" border=0>

  <TR vAlign=top>
    <TD width="5%"  >&nbsp;</TD>
    <TD align=left>&nbsp; </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="10%">&nbsp;
    </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="2%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right width="23%"
    colSpan=4><B>September 30, 2011</B> </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="2%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
    >&nbsp;</TD>
    <TD
      width="10%" align=right nowrap style="BORDER-BOTTOM: #000000 1px solid"><B>December 31, 2010</B> </TD>
  <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="2%"
    >&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD width="5%" >&nbsp;</TD>
    <TD align=left>&nbsp; </TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD width="10%" align=right nowrap><B>Acquisition&nbsp;</B> </TD>
    <TD width="2%" align=left nowrap >&nbsp;</TD>
    <TD width="1%" align=left nowrap >&nbsp;</TD>
    <TD width="10%" align=right nowrap
    ><STRONG>Exploration</STRONG>&nbsp;</TD>
    <TD width="2%" align=left nowrap >&nbsp;</TD>
    <TD width="1%" align=left nowrap >&nbsp;</TD>
    <TD width="10%" align=right nowrap><B>Total</B> </TD>
    <TD width="2%" align=left nowrap >&nbsp;</TD>
    <TD width="1%" align=left nowrap >&nbsp;</TD>
    <TD width="10%" align=right nowrap><B>Total</B> </TD>
  <TD align=left width="2%" >&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD width="5%" >&nbsp;</TD>
    <TD align=left>&nbsp; </TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD width="10%" align=right nowrap><B>costs</B> </TD>
    <TD width="2%" align=left nowrap >&nbsp;</TD>
    <TD width="1%" align=left nowrap >&nbsp;</TD>
    <TD width="10%" align=right nowrap><B>costs</B> </TD>
    <TD width="2%" align=left nowrap >&nbsp;</TD>
    <TD width="1%" align=left nowrap >&nbsp;</TD>
    <TD width="10%" align=left nowrap>&nbsp; </TD>
    <TD width="2%" align=left nowrap >&nbsp;</TD>
    <TD width="1%" align=left nowrap >&nbsp;</TD>
    <TD width="10%" align=left nowrap>&nbsp; </TD>
  <TD align=left width="2%" >&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD width="5%" >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>&nbsp; </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
    ></TD>
    <TD
      width="10%" align=right nowrap style="BORDER-BOTTOM: #000000 1px solid"><STRONG>$</STRONG>&nbsp;</TD>
    <TD width="2%" align=left nowrap style="BORDER-BOTTOM: #000000 1px solid"
    >&nbsp;</TD>
    <TD width="1%" align=left nowrap style="BORDER-BOTTOM: #000000 1px solid"
    ></TD>
    <TD
      width="10%" align=right nowrap style="BORDER-BOTTOM: #000000 1px solid"><STRONG>$</STRONG>&nbsp;</TD>
    <TD width="2%" align=left nowrap style="BORDER-BOTTOM: #000000 1px solid"
    >&nbsp;</TD>
    <TD width="1%" align=left nowrap style="BORDER-BOTTOM: #000000 1px solid"
    ><B></B></TD>
    <TD
      width="10%" align=right nowrap style="BORDER-BOTTOM: #000000 1px solid"><STRONG>$</STRONG>&nbsp;</TD>
    <TD width="2%" align=left nowrap style="BORDER-BOTTOM: #000000 1px solid"
    >&nbsp;</TD>
    <TD width="1%" align=left nowrap style="BORDER-BOTTOM: #000000 1px solid"
    ><B></B></TD>
    <TD
      width="10%" align=right nowrap style="BORDER-BOTTOM: #000000 1px solid"><STRONG>$</STRONG>&nbsp;</TD>
  <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="2%"
    >&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD width="5%" >&nbsp;</TD>
    <TD align=left bgColor=#e6efff><B>Exploration projects</B> </TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="10%" bgColor=#e6efff>&nbsp; </TD>
    <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="10%" bgColor=#e6efff>&nbsp; </TD>
    <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="10%" bgColor=#e6efff>&nbsp; </TD>
    <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="10%" bgColor=#e6efff>&nbsp; </TD>
    <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD width="5%" >&nbsp;</TD>
    <TD align=left>Bowdens, Australia <SUP>(i)</SUP> </TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=right width="10%">- </TD>
    <TD align=left width="2%" >&nbsp;</TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=right width="10%">- </TD>
    <TD align=left width="2%" >&nbsp;</TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=right width="10%"><B>-</B> </TD>
    <TD align=left width="2%" >&nbsp;</TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=right width="10%">19,685 </TD>
    <TD align=left width="2%" >&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD width="5%" >&nbsp;</TD>
    <TD align=left bgColor=#e6efff>Challacollo, Chile </TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="10%" bgColor=#e6efff>2,990 </TD>
    <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="10%" bgColor=#e6efff>5,504 </TD>
    <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="10%" bgColor=#e6efff><B>8,494</B> </TD>
    <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="10%" bgColor=#e6efff>9,206 </TD>
    <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD width="5%" >&nbsp;</TD>
    <TD align=left>San Agustin, Mexico </TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=right width="10%">101 </TD>
    <TD align=left width="2%" >&nbsp;</TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=right width="10%">2,033 </TD>
    <TD align=left width="2%" >&nbsp;</TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=right width="10%"><B>2,134</B> </TD>
    <TD align=left width="2%" >&nbsp;</TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=right width="10%">1,654 </TD>
    <TD align=left width="2%" >&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD width="5%" >&nbsp;</TD>
    <TD align=left bgColor=#e6efff>Veta Colorada, Mexico </TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="10%" bgColor=#e6efff>3,688 </TD>
    <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="10%" bgColor=#e6efff>1,039 </TD>
    <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="10%" bgColor=#e6efff><B>4,727</B> </TD>
    <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="10%" bgColor=#e6efff>4,845 </TD>
    <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD width="5%" >&nbsp;</TD>
    <TD align=left>Nazas, Mexico <SUP>(ii)</SUP> </TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=right width="10%">565 </TD>
    <TD align=left width="2%" >&nbsp;</TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=right width="10%">349 </TD>
    <TD align=left width="2%" >&nbsp;</TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=right width="10%"><B>914</B> </TD>
    <TD align=left width="2%" >&nbsp;</TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=right width="10%">1,423 </TD>
    <TD align=left width="2%" >&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD width="5%" >&nbsp;</TD>
    <TD align=left bgColor=#e6efff>Berenguela, Peru </TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="10%" bgColor=#e6efff>10,645 </TD>
    <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="10%" bgColor=#e6efff>6,111 </TD>
    <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="10%" bgColor=#e6efff><B>16,756</B> </TD>
    <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="10%" bgColor=#e6efff>16,480 </TD>
    <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD width="5%" >&nbsp;</TD>
    <TD align=left>Candelaria, United States </TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=right width="10%">2,434 </TD>
    <TD align=left width="2%" >&nbsp;</TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=right width="10%">3,812 </TD>
    <TD align=left width="2%" >&nbsp;</TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=right width="10%"><B>6,246</B> </TD>
    <TD align=left width="2%" >&nbsp;</TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=right width="10%">6,022 </TD>
    <TD align=left width="2%" >&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD width="5%" >&nbsp;</TD>
    <TD align=left bgColor=#e6efff>Maverick Springs, United States </TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="10%" bgColor=#e6efff>565 </TD>
    <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="10%" bgColor=#e6efff>2,074 </TD>
    <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="10%" bgColor=#e6efff><B>2,639</B> </TD>
    <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="10%" bgColor=#e6efff>2,628 </TD>
    <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD width="5%" >&nbsp;</TD>
    <TD align=left>Other exploration projects </TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=right width="10%">2,772 </TD>
    <TD align=left width="2%" >&nbsp;</TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=right width="10%">3,270 </TD>
    <TD align=left width="2%" >&nbsp;</TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=right width="10%"><B>6,042</B> </TD>
    <TD align=left width="2%" >&nbsp;</TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=right width="10%">5,743 </TD>
    <TD align=left width="2%" >&nbsp;</TD></TR>
  <TR>
    <TD width="5%" >&nbsp;</TD>
    <TD bgColor=#e6efff>&nbsp; </TD>
    <TD width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD width="10%" bgColor=#e6efff>&nbsp; </TD>
    <TD width="2%"  bgColor=#e6efff>&nbsp;</TD>
    <TD width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD width="10%" bgColor=#e6efff>&nbsp; </TD>
    <TD width="2%"  bgColor=#e6efff>&nbsp;</TD>
    <TD width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD width="10%" bgColor=#e6efff>&nbsp; </TD>
    <TD width="2%"  bgColor=#e6efff>&nbsp;</TD>
    <TD width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD width="10%" bgColor=#e6efff>&nbsp; </TD>
    <TD width="2%"  bgColor=#e6efff>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD width="5%" >&nbsp;</TD>
    <TD align=left><B>Development projects</B> </TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=left width="10%">&nbsp; </TD>
    <TD align=left width="2%" >&nbsp;</TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=left width="10%">&nbsp; </TD>
    <TD align=left width="2%" >&nbsp;</TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=left width="10%">&nbsp; </TD>
    <TD align=left width="2%" >&nbsp;</TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=left width="10%">&nbsp; </TD>
    <TD align=left width="2%" >&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD width="5%" >&nbsp;</TD>
    <TD align=left bgColor=#e6efff>Diablillos, Argentina </TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="10%" bgColor=#e6efff>4,516 </TD>
    <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="10%" bgColor=#e6efff>16,179 </TD>
    <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="10%" bgColor=#e6efff><B>20,695</B> </TD>
    <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="10%" bgColor=#e6efff>18,765 </TD>
    <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD width="5%" >&nbsp;</TD>
    <TD align=left>Pitarrilla, Mexico </TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=right width="10%">17,745 </TD>
    <TD align=left width="2%" >&nbsp;</TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=right width="10%">74,346 </TD>
    <TD align=left width="2%" >&nbsp;</TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=right width="10%"><B>92,091</B> </TD>
    <TD align=left width="2%" >&nbsp;</TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=right width="10%">77,796 </TD>
    <TD align=left width="2%" >&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD width="5%" >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left
      bgColor=#e6efff>San Luis, Peru <SUP>(iii)</SUP> </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
     bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right width="10%"
    bgColor=#e6efff>661 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="2%"
     bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
     bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right width="10%"
    bgColor=#e6efff>30,867 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="2%"
     bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
     bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right width="10%"
    bgColor=#e6efff><B>31,528</B> </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="2%"
     bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
     bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right width="10%"
    bgColor=#e6efff>26,662 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="2%"
     bgColor=#e6efff>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD width="5%" >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=left>&nbsp; </TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=left width="1%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=right
      width="10%">46,682 </TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=left width="2%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=left width="1%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=right
      width="10%">145,584 </TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=left width="2%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=left width="1%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=right
      width="10%"><B>192,266</B> </TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=left width="2%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=left width="1%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=right
      width="10%">190,909 </TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=left width="2%"
    >&nbsp;</TD></TR></TABLE><BR>
<TABLE
style="BORDER-COLOR: black; FONT-SIZE: 10pt; BORDER-COLLAPSE: collapse; "
cellSpacing=0 cellPadding=0 width="100%" border=0 BCLLIST>

  <TR>
    <TD width="5%"  >&nbsp;</TD>
    <TD vAlign=top width="5%"><SUP>(i)</SUP> </TD>
    <TD>
      <P align=justify>On September 23, 2011, the Company completed the sale of
      its 100% interest in the Bowdens project located in Australia to Kingsgate
      Consolidated Limited (&#147;Kingsgate&#148;). Under the terms of the agreement, the
      Company received total consideration of $70,473,000. The consideration
      received comprised cash of $44,908,000 of which $9,908,000 is payable in
      two equal installments on December 31, 2011 and June 30, 2012, and
      3,440,367 common shares of Kingsgate with a fair value of $25,565,000. The
      total gain recorded on the sale of this mineral property was $51,359,000
      before tax expense of $15,306,000.</P></TD></TR></TABLE>
<P align=right>12 | P a g e</P>
<HR style="PAGE-BREAK-AFTER: always" align=center width="100%" color=black
noShade SIZE=5>
<!--$$/page=--><A name=page_13></A><BR>
<TABLE
style="BORDER-COLOR: black; FONT-SIZE: 10pt; BORDER-COLLAPSE: collapse; "
cellSpacing=0 cellPadding=0 width="100%" border=0>

  <TR vAlign=top>
    <TD align=left><B>Silver Standard Resources Inc.</B> </TD></TR>
  <TR vAlign=top>
    <TD align=left>Notes to Consolidated Interim Financial Statements </TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>For the three and
      nine months ended September 30, 2011 </TD></TR>
  <TR vAlign=top>
    <TD align=left>(tabular amounts expressed in thousands of United States
      dollars unless otherwise stated - unaudited) </TD></TR></TABLE><BR>
<TABLE
style="BORDER-COLOR: black; FONT-SIZE: 10pt; BORDER-COLLAPSE: collapse; "
cellSpacing=0 cellPadding=0 width="100%" border=0 BCLLIST>

  <TR>
    <TD vAlign=top width="5%"><B>5.</B> </TD>
    <TD>
      <P align=justify><B>PROPERTY, PLANT AND EQUIPMENT
  (Cont&#146;d)</B></P></TD></TR></TABLE><BR>
<TABLE
style="BORDER-COLOR: black; FONT-SIZE: 10pt; BORDER-COLLAPSE: collapse; "
cellSpacing=0 cellPadding=0 width="100%" border=0 BCLLIST>

  <TR>
    <TD width="5%"  >&nbsp;</TD>
    <TD vAlign=top width="5%"><SUP>(ii)</SUP> </TD>
    <TD>
      <P align=justify>During the nine months ended September 30, 2011 the
      Company elected not to continue its option on the Navidad claims at the
      Nazas property, which is at the centre of the Nazas project. As a result,
      the Company wrote off accumulated costs of $4,514,000 which was recorded
      in other income (expense) (note 13).</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%"><SUP>(iii)</SUP> </TD>
    <TD>
      <P align=justify>On July 28, 2011, the Company completed the 100%
      acquisition of the San Luis property in Peru (70% interest held at
      December 31, 2010) from Esperanza Resources Corp. (&#147;Esperanza&#148;). The
      Company paid consideration of $17,865,000 in cash and transferred to
      Esperanza the 6.459 million shares of Esperanza that it owned. In
      addition, under the terms of the agreement the Company will provide a 1%
      net smelter return royalty (&#147;NSR&#148;) on future production. The total fair
      value of the consideration paid to acquire the 30% interest held by
      Esperanza was $28,692,000, which includes transaction costs of $306,000.
      The carrying amount of the non-controlling interest in the San Luis
      project on the date of acquisition was $496,000. This transaction did not
      result in a change of control and therefore the Company recognised a
      decrease in non-controlling interest of $496,000 and a decrease in other
      reserves of $28,196,000.</P></TD></TR></TABLE>
<P style="MARGIN-LEFT: 5%" align=justify>In February 2010 the Company completed
the sale of its 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.</P>
<TABLE
style="BORDER-COLOR: black; FONT-SIZE: 10pt; BORDER-COLLAPSE: collapse; "
cellSpacing=0 cellPadding=0 width="100%" border=0 BCLLIST>

  <TR>
    <TD vAlign=top width="5%"><B>6.</B> </TD>
    <TD>
      <P align=justify><B>INVESTMENT IN
ASSOCIATE</B></P></TD></TR></TABLE><BR>
<DIV align=center>
<TABLE
style="BORDER-COLOR: black; FONT-SIZE: 10pt; BORDER-COLLAPSE: collapse; "
cellSpacing=0 cellPadding=0 width="90%" border=0>

  <TR vAlign=top>
    <TD align=left>&nbsp; </TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=left width="22%">&nbsp; </TD>
    <TD align=left width="2%" >&nbsp;</TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD width="22%" align=right nowrap><B>September 30, 2011</B> </TD>
    <TD width="2%" align=left nowrap >&nbsp;</TD>
    <TD width="1%" align=left nowrap >&nbsp;</TD>
    <TD width="22%" align=right nowrap><B>December 31, 2010</B> </TD>
    <TD align=left width="2%" >&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left>&nbsp; </TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=left width="22%">&nbsp; </TD>
    <TD align=left width="2%" >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
    ><B></B></TD>
    <TD
      width="22%" align=right nowrap style="BORDER-BOTTOM: #000000 1px solid"><STRONG>$</STRONG>&nbsp;</TD>
    <TD width="2%" align=left nowrap style="BORDER-BOTTOM: #000000 1px solid"
    >&nbsp;</TD>
    <TD width="1%" align=left nowrap style="BORDER-BOTTOM: #000000 1px solid"
    ></TD>
    <TD
      width="22%" align=right nowrap style="BORDER-BOTTOM: #000000 1px solid"><STRONG>$</STRONG>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="2%"
    >&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left bgColor=#e6efff>Pretium Resources Inc. </TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="22%" bgColor=#e6efff>Common shares </TD>
    <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="22%" bgColor=#e6efff><B>136,499</B> </TD>
    <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="22%" bgColor=#e6efff>187,202 </TD>
    <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left>&nbsp; </TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=left width="22%">Convertible note </TD>
    <TD align=left width="2%" >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right
      width="22%"><B>-</B> </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="2%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right
      width="22%">39,069 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="2%"
    >&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left bgColor=#e6efff>&nbsp; </TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="22%" bgColor=#e6efff>&nbsp; </TD>
    <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
     bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right width="22%"
    bgColor=#e6efff><B>136,499</B> </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="2%"
     bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
     bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right width="22%"
    bgColor=#e6efff>226,271 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="2%"
     bgColor=#e6efff>&nbsp;</TD></TR></TABLE></DIV>
<P style="MARGIN-LEFT: 5%" align=justify>On December 21, 2010 the Company
completed the sale of its 100% interest in the Snowfield and Brucejack
properties located in British Columbia, Canada, to Pretium Resources Inc.
(&#147;Pretium&#148;). Total consideration was $442,260,000 (C$450,000,000) which
comprised 32,537,833 common shares of Pretium, with a fair value of
$191,869,000, cash of $211,322,000 (before underwriters&#146; fees of $12,427,000),
and a non-interest bearing promissory note in the principal amount of
$39,069,000. </P>
<P style="MARGIN-LEFT: 5%" align=justify>As at December 31, 2010 the convertible
note was included in carrying value of the investment in Pretium as this most
accurately reflected the substance of the arrangement. The note was partially
repaid on January 6, 2011 whereby the Company received proceeds of $18,083,000
and on January 31, 2011 the balance of the note $20,986,000 was converted into
3,625,500 common shares of Pretium with a fair value of $22,946,000 resulting in
a gain on settlement of $1,092,000. Total transaction costs of $1,631,000 were
expensed in the period, and together with the gain on settlement of the note
these were presented within the gain (loss) on sale of mineral property in the
income statement as they are all interrelated with the original sale
transaction.</P>
<P align=right>13 | P a g e</P>
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noShade SIZE=5>
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<TABLE
style="BORDER-COLOR: black; FONT-SIZE: 10pt; BORDER-COLLAPSE: collapse; "
cellSpacing=0 cellPadding=0 width="100%" border=0>

  <TR vAlign=top>
    <TD align=left><B>Silver Standard Resources Inc.</B> </TD></TR>
  <TR vAlign=top>
    <TD align=left>Notes to Consolidated Interim Financial Statements </TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>For the three and
      nine months ended September 30, 2011 </TD></TR>
  <TR vAlign=top>
    <TD align=left>(tabular amounts expressed in thousands of United States
      dollars unless otherwise stated - unaudited) </TD></TR></TABLE><BR>
<TABLE
style="BORDER-COLOR: black; FONT-SIZE: 10pt; BORDER-COLLAPSE: collapse; "
cellSpacing=0 cellPadding=0 width="100%" border=0 BCLLIST>

  <TR>
    <TD vAlign=top width="5%"><B>6.</B> </TD>
    <TD>
      <P align=justify><B>INVESTMENT IN ASSOCIATE (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 April 8, 2011 the Company sold 11.5 million units in
      relation to the shares of Pretium it owns. Each unit contained one common
      share of Pretium and half of a warrant to acquire an additional common
      share of Pretium for C$12.50 within 12 months and was priced at C$10.00.
      The Company received cash proceeds of $120,117,000 before transaction
      costs of $7,244,000. In the nine months ended September 30, 2011, the
      Company recognized a gain on partial disposal of associate of $39,266,000
      (after tax gain of $34,687,000). The warrants issued are recognized at fair
      value and recorded as a liability (note 7). Following the closing of the
      secondary offering the Company&#146;s ownership interest in Pretium was
      approximately 28.86%. The investment is accounted for as an equity
      investment.</P></TD></TR>
  <TR>
    <TD width="5%">&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
  <TR>
    <TD width="5%"></TD>
    <TD>
      <P align=justify>On July 15, 2011, Pretium completed a 1,390,000
      flow-through common shares private placement. The Company did not
      participate in this placement which resulted in a dilution of the
      Company&#146;s interest to 28.39% and a dilution gain of $1,803,000 which was
      recorded in other income (expenses) (note 13).</P></TD></TR>
  <TR>
    <TD width="5%">&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
  <TR>
    <TD width="5%"></TD>
    <TD>
      <P align=justify>The carrying amount of the investment in associate
      represents the fair value at initial recognition, plus the Company&#146;s share
      of comprehensive income or loss. Share of loss of associate for the three
      and nine months ended September 30, 2011 was $624,000 (2010: $nil) and
      $4,616,000 (2010: $nil) respectively.</P></TD></TR>
  <TR>
    <TD width="5%">&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
  <TR>
    <TD vAlign=top width="5%"><B>7.</B> </TD>
    <TD>
      <P align=justify><B>WARRANT LIABILITY</B></P></TD></TR>
  <TR>
    <TD width="5%">&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
  <TR>
    <TD width="5%"></TD>
    <TD>
      <P align=justify>On April 8, 2011 as part of the unit offering (note 6)
      the Company issued 5,750,000 common share purchase warrants of Pretium
      shares owned by the Company. Each warrant is exercisable at a price of
      C$12.50 for a period of 12 months. The Company initially recognized a
      warrant liability of $7,500,000, transaction costs of $453,000 were
      expensed, and this liability is recorded at fair value through profit and
      loss (&#147;FVTPL&#148;). For the three and nine months ended September 30, 2011,
      the Company recorded an unrealized loss upon re-measurement of the
      liability of $3,154,000 and $1,094,000 respectively.</P></TD></TR>
  <TR>
    <TD width="5%">&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
  <TR>
    <TD vAlign=top width="5%"><B>8.</B> </TD>
    <TD>
      <P align=justify><B>CURRENT AND DEFERRED INCOME TAX</B></P></TD></TR>
  <TR>
    <TD width="5%">&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
  <TR>
    <TD width="5%"></TD>
    <TD>
      <P align=justify>Current tax payable of $28,902,000 as at September 30,
      2011 includes an estimate of $15,126,000 for taxes payable from the sale
      of the Bowdens project (note 5). Additional taxes payable result from the
      receipt of the Aurcana convertible debenture (note 3) and from the
      disposal of the investment in associate and the conversion of the
      convertible notes into common shares of Pretium (note 6).</P></TD></TR>
  <TR>
    <TD width="5%">&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
  <TR>
    <TD width="5%"></TD>
    <TD>
      <P align=justify>Deferred 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.</P></TD></TR>
  <TR>
    <TD width="5%">&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
  <TR>
    <TD width="5%"></TD>
    <TD>
      <P align=justify>The deferred income tax asset of $17,326,000 as at
      September 30, 2011 relates to property, plant and equipment and has been
      recognized only to the extent management believe it is probable that
      future taxable income will be available against which the temporary
      differences can be utilized.</P></TD></TR></TABLE>
<P align=right>14 | P a g e</P>
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<TABLE
style="BORDER-COLOR: black; FONT-SIZE: 10pt; BORDER-COLLAPSE: collapse; "
cellSpacing=0 cellPadding=0 width="100%" border=0>

  <TR vAlign=top>
    <TD align=left><B>Silver Standard Resources Inc.</B> </TD></TR>
  <TR vAlign=top>
    <TD align=left>Notes to Consolidated Interim Financial Statements </TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>For the three and
      nine months ended September 30, 2011 </TD></TR>
  <TR vAlign=top>
    <TD align=left>(tabular amounts expressed in thousands of United States
      dollars unless otherwise stated - unaudited) </TD></TR></TABLE><BR>
<TABLE
style="BORDER-COLOR: black; FONT-SIZE: 10pt; BORDER-COLLAPSE: collapse; "
cellSpacing=0 cellPadding=0 width="100%" border=0 BCLLIST>

  <TR>
    <TD vAlign=top width="5%"><B>9.</B> </TD>
    <TD>
      <P align=justify><B>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, the Company sold $138,000,000 in senior
      convertible unsecured notes (&#147;Notes&#148;) for net proceeds of $132,754,000
      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. At initial recognition the value of the
      notes was allocated between the debt and the derivative components. The
      fair value of the debt portion was $99,144,000 and the fair value of the
      derivative was $38,856,000 upon inception. The debt component continues to
      be accreted to its maturity value using the effective interest rate
      method.</P></TD></TR>
  <TR>
    <TD width="5%">&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
  <TR>
    <TD width="5%"></TD>
    <TD>
      <P align=justify>For the three and nine months ended September 30, 2011,
      the Company recorded an unrealized gain (loss) on the derivative of $8,584,000
      (2010: ($2,704,800)) and $14,918,000 (2010: $9,645,000) respectively. The following
      assumptions were used to obtain the valuation:</P></TD></TR></TABLE><BR>
<DIV align=left>
<TABLE
style="BORDER-COLOR: black; FONT-SIZE: 10pt; BORDER-COLLAPSE: collapse; "
cellSpacing=0 cellPadding=0 width="50%" border=0>

  <TR vAlign=top>
    <TD width="10%" align=left>&nbsp;</TD>
    <TD align=left>&nbsp; </TD>
    <TD align=right width="50%"><B>September 30</B> </TD></TR>
  <TR vAlign=top>
    <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
      width="50%"><B>2011</B> </TD></TR>
  <TR vAlign=top>
    <TD align=left>&nbsp;</TD>
    <TD align=left bgColor=#e6efff>Expected dividend yield (%) </TD>
    <TD align=right width="50%" bgColor=#e6efff>0% </TD></TR>
  <TR vAlign=top>
    <TD align=left>&nbsp;</TD>
    <TD align=left>Average risk-free interest rate (%) </TD>
    <TD align=right width="50%">2.66 </TD></TR>
  <TR vAlign=top>
    <TD align=left>&nbsp;</TD>
    <TD align=left bgColor=#e6efff>Expected life (years) </TD>
    <TD align=right width="50%" bgColor=#e6efff>17 </TD></TR>
  <TR vAlign=top>
    <TD align=left>&nbsp;</TD>
    <TD align=left>Expected volatility (%) </TD>
    <TD align=right width="50%">72.5 </TD></TR>
  <TR vAlign=top>
    <TD align=left>&nbsp;</TD>
    <TD align=left bgColor=#e6efff>Implied yield on straight debt (%) </TD>
  <TD align=right width="50%" bgColor=#e6efff>8.41</TD></TR></TABLE>
</DIV><BR>
<TABLE
style="BORDER-COLOR: black; FONT-SIZE: 10pt; BORDER-COLLAPSE: collapse; "
cellSpacing=0 cellPadding=0 width="100%" border=0 BCLLIST>

  <TR>
    <TD vAlign=top width="5%"><B>10.</B> </TD>
    <TD>
      <P align=justify><B>SHARE CAPITAL AND SHARE-BASED
  COMPENSATION</B></P></TD></TR></TABLE><BR>
<TABLE
style="BORDER-COLOR: black; FONT-SIZE: 10pt; BORDER-COLLAPSE: collapse; "
cellSpacing=0 cellPadding=0 width="100%" border=0 BCLLIST>

  <TR>
    <TD width="5%"  >&nbsp;</TD>
    <TD vAlign=top width="5%"><B>a)</B> </TD>
    <TD>
      <P align=justify><B>Share capital</B></P></TD></TR></TABLE>
<P style="MARGIN-LEFT: 5%" align=justify>During the nine months ended September
30, 2010, the Company closed a public share offering of 6,729,000 common shares
at a price of $17.00 per share, for aggregate gross proceeds of $114,389,000.
After deducting underwriting fees and estimated offering expenses of $6,631,000,
net proceeds were approximately $107,758,000.</P>
<TABLE
style="BORDER-COLOR: black; FONT-SIZE: 10pt; BORDER-COLLAPSE: collapse; "
cellSpacing=0 cellPadding=0 width="100%" border=0 BCLLIST>

  <TR>
    <TD width="5%"  >&nbsp;</TD>
    <TD vAlign=top width="5%"><B>b)</B> </TD>
    <TD>
      <P align=justify><B>Share-based compensation</B></P></TD></TR></TABLE>
<P style="MARGIN-LEFT: 5%" align=justify>The Company has an incentive plan,
approved by the Company&#146;s shareholders at its annual general meeting held on May
14, 2008 and amended on May 11, 2011, under which options to purchase common
shares may be granted to directors, officers, employees and others at the
discretion of the Board of Directors. The plan provides for the issuance of
incentive options to acquire up to a total of 8.5% of the issued and outstanding
common shares of the company. The exercise price of each option is set at the
date of grant and shall not be less than the closing market price of the
company&#146;s stock on the award date. </P>
<P style="MARGIN-LEFT: 5%" align=justify>The options can be granted for a
maximum term of 7 years with vesting provisions determined by the Board of
Directors. Currently, the vesting periods range up to three years. New shares
from treasury are issued on the exercise of stock options.</P>
<P style="MARGIN-LEFT: 5%" align=justify>The Company also has plans for deferred
share units (&#147;DSUs&#148;), restricted share units (&#147;RSUs&#148;), and performance share
units (&#147;PSUs&#148;).</P>
<P align=right>15 | P a g e</P>
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<TABLE
style="BORDER-COLOR: black; FONT-SIZE: 10pt; BORDER-COLLAPSE: collapse; "
cellSpacing=0 cellPadding=0 width="100%" border=0>

  <TR vAlign=top>
    <TD align=left><B>Silver Standard Resources Inc.</B> </TD></TR>
  <TR vAlign=top>
    <TD align=left>Notes to Consolidated Interim Financial Statements </TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>For the three and
      nine months ended September 30, 2011 </TD></TR>
  <TR vAlign=top>
    <TD align=left>(tabular amounts expressed in thousands of United States
      dollars unless otherwise stated - unaudited) </TD></TR></TABLE><BR>
<TABLE
style="BORDER-COLOR: black; FONT-SIZE: 10pt; BORDER-COLLAPSE: collapse; "
cellSpacing=0 cellPadding=0 width="100%" border=0 BCLLIST>

  <TR>
    <TD vAlign=top width="5%"><B>10.</B> </TD>
    <TD>
      <P align=justify><B>SHARE CAPITAL AND SHARE-BASED COMPENSATION
      (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">During the nine months  ended September 30, 2011, 418,500 options were granted to employees exercisable  over a 7 year period at a weighted average exercise price of C$26.97 and  average fair value of C$12.30. The option valuations were based on an average  expected option life of 4.6 years, a risk free interest rate of 2.4%, a  dividend yield of nil and an expected volatility of 55%. &nbsp;In addition, 949,891 options were exercised at  a weighted average exercise price of C$19.59. During the nine months ended September  30, 2010, 585,000 options were granted to an employee exercisable over a 10  year period at a strike price of C$17.52 and average fair value of C$9.21.</p>
  </TD></TR>
  <TR>
    <TD width="5%">&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
  <TR>
    <TD width="5%"></TD>
    <TD>
      <P align=justify>During the nine months ended September 30, 2011, 14,927
      (2010: 29,498) DSUs were granted to non-executive directors, 77,800 RSUs
      were granted to employees, and 141,800 PSUs to senior executives. A total of 6,500
      RSUs and 32,100 PSUs were forfeited.</P></TD></TR>
  <TR>
    <TD width="5%">&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
  <TR>
    <TD width="5%"></TD>
    <TD>
      <P align=justify>The DSUs vest immediately and are redeemable in cash on
      the date the non-executive director ceases to be a director of the
      company. At September 30, 2011, there were 92,065 DSUs (2010: 80,461)
      outstanding with a fair value of $1,693,000 (2010: $1,602,000).</P></TD></TR>
  <TR>
    <TD width="5%">&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
  <TR>
    <TD width="5%"></TD>
    <TD>
      <P align=justify>The RSUs vest over a three year period, and are
      cash-settled immediately upon vesting. At September 30, 2011, there were
      71,300 RSUs outstanding with a fair value of C$19.27. The PSUs vest after
      a performance period of two to three years; the vesting of the award is
      based on the Company&#146;s total shareholder return in comparison to its peer
      group, and awards range from 0% to 200% of initial PSUs granted. At
      September 30, 2011, there were 109,700 PSUs outstanding with fair values
      ranging from C$14.26 to C$16.43.</P></TD></TR>
  <TR>
    <TD width="5%">&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
  <TR>
    <TD width="5%"></TD>
    <TD>
      <P align=justify>The share-based compensation expense, including all
      equity and cash-settled arrangements, recorded for the nine months period
      ended September 30, 2011 was $4,028,000 (September 30, 2010: $5,983,000)
      of which $nil (September 30, 2010: $207,000) was capitalized to
      exploration and development expenditures.</P></TD></TR>
  <TR>
    <TD width="5%">&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
  <TR>
    <TD vAlign=top width="5%"><B>11.</B> </TD>
    <TD>
      <P align=justify><B>OPERATING COSTS BY
NATURE</B></P></TD></TR></TABLE><BR>
<TABLE
style="BORDER-COLOR: black; FONT-SIZE: 10pt; BORDER-COLLAPSE: collapse; "
cellSpacing=0 cellPadding=0 width="100%" border=0 BCLLIST>

  <TR>
    <TD width="5%"  >&nbsp;</TD>
    <TD vAlign=top width="5%"><B>a)</B> </TD>
    <TD>
      <P align=justify><B>Cost of sales</B></P></TD></TR></TABLE><BR>
<TABLE width="100%" border=0 cellPadding=0
cellSpacing=0
style="BORDER-COLOR: black; FONT-SIZE: 10pt; BORDER-COLLAPSE: collapse; ">

  <TR vAlign=top>
    <TD  >&nbsp;</TD>
    <TD align=left>&nbsp; </TD>
    <TD align=left >&nbsp;</TD>
    <TD colSpan=4 align=right nowrap><B>Three Months Ended September
      30</B> </TD>
    <TD align=left >&nbsp;</TD>
    <TD align=left >&nbsp;</TD>
    <TD colSpan=4 align=right nowrap><B>Nine Months Ended September
      30</B> </TD>
  <TD align=left >&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD width="5%" >&nbsp;</TD>
    <TD align=left>&nbsp; </TD>
    <TD width="1%" align=left >&nbsp;</TD>
    <TD align=right><B>2011</B> </TD>
    <TD width="2%" align=left >&nbsp;</TD>
    <TD width="1%" align=left >&nbsp;</TD>
    <TD align=right><B>2010</B> </TD>
    <TD width="2%" align=left >&nbsp;</TD>
    <TD width="1%" align=left >&nbsp;</TD>
    <TD align=right><B>2011</B> </TD>
    <TD width="2%" align=left >&nbsp;</TD>
    <TD width="1%" align=left >&nbsp;</TD>
    <TD align=right><B>2010</B> </TD>
  <TD width="2%" align=left >&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD >&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>
    <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 vAlign=top>
    <TD >&nbsp;</TD>
    <TD align=left bgColor=#e6efff>Cost of inventory </TD>
    <TD align=left  bgColor=#e6efff>&nbsp;</TD>
    <TD align=right bgColor=#e6efff><B>11,532</B> </TD>
    <TD align=left  bgColor=#e6efff>&nbsp;</TD>
    <TD align=left  bgColor=#e6efff>&nbsp;</TD>
    <TD align=right bgColor=#e6efff>25,013 </TD>
    <TD align=left  bgColor=#e6efff>&nbsp;</TD>
    <TD align=left  bgColor=#e6efff>&nbsp;</TD>
    <TD align=right bgColor=#e6efff><B>53,436</B> </TD>
    <TD align=left  bgColor=#e6efff>&nbsp;</TD>
    <TD align=left  bgColor=#e6efff>&nbsp;</TD>
    <TD align=right bgColor=#e6efff>56,067 </TD>
  <TD align=left  bgColor=#e6efff>&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD >&nbsp;</TD>
    <TD width="40%" align=left>Depletion, depreciation and amortization </TD>
    <TD align=left >&nbsp;</TD>
    <TD align=right><B>2,410</B> </TD>
    <TD align=left >&nbsp;</TD>
    <TD align=left >&nbsp;</TD>
    <TD align=right>5,554 </TD>
    <TD align=left >&nbsp;</TD>
    <TD align=left >&nbsp;</TD>
    <TD align=right><B>13,439</B> </TD>
    <TD align=left >&nbsp;</TD>
    <TD align=left >&nbsp;</TD>
    <TD align=right>16,291 </TD>
  <TD align=left >&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left
      bgColor=#e6efff>Export duties <SUP>(1)</SUP> </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left
     bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right
    bgColor=#e6efff><B>718</B> </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left
     bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left
     bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right
    bgColor=#e6efff>3,564 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left
     bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left
     bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right
    bgColor=#e6efff><B>11,412</B> </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left
     bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left
     bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right
    bgColor=#e6efff>5,662 </TD>
  <TD style="BORDER-BOTTOM: #000000 1px solid" align=left
     bgColor=#e6efff>&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD >&nbsp;</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><B>14,660</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>34,131 </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><B>78,287</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>78,020 </TD>
  <TD style="BORDER-BOTTOM: #000000 2px solid" align=left
    >&nbsp;</TD>
  </TR></TABLE><BR>
<TABLE
style="BORDER-COLOR: black; FONT-SIZE: 10pt; BORDER-COLLAPSE: collapse; "
cellSpacing=0 cellPadding=0 width="100%" border=0 BCLLIST>

  <TR>
    <TD width="5%"  >&nbsp;</TD>
    <TD vAlign=top width="5%"><SUP>(1)</SUP> </TD>
    <TD>
      <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
      approximately 10% on concentrates for projects with fiscal stability
      agreements predating 2002. The Company has been advised that the project
      is subject to this export duty despite rights under the 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, the
      Company filed a claim in the 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, and in April 2011 a government appeal against
      this order was denied.</P></TD></TR></TABLE>
<P align=right>16 | P a g e</P>
<HR style="PAGE-BREAK-AFTER: always" align=center width="100%" color=black
noShade SIZE=5>
<!--$$/page=--><A name=page_17></A><BR>
<TABLE
style="BORDER-COLOR: black; FONT-SIZE: 10pt; BORDER-COLLAPSE: collapse; "
cellSpacing=0 cellPadding=0 width="100%" border=0>

  <TR vAlign=top>
    <TD align=left><B>Silver Standard Resources Inc.</B> </TD></TR>
  <TR vAlign=top>
    <TD align=left>Notes to Consolidated Interim Financial Statements </TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>For the three and
      nine months ended September 30, 2011 </TD></TR>
  <TR vAlign=top>
    <TD align=left>(tabular amounts expressed in thousands of United States
      dollars unless otherwise stated - unaudited) </TD></TR></TABLE><BR>
<TABLE
style="BORDER-COLOR: black; FONT-SIZE: 10pt; BORDER-COLLAPSE: collapse; "
cellSpacing=0 cellPadding=0 width="100%" border=0 BCLLIST>

  <TR>
    <TD vAlign=top width="5%"><B>11.</B> </TD>
    <TD>
      <P align=justify><B>OPERATING COSTS BY NATURE
  (Cont&#146;d)</B></P></TD></TR></TABLE>
<P style="MARGIN-LEFT: 10%" align=justify>As of September 30, 2011 the Pirquitas
mine has paid $6,646,000 in duties, however despite the order to cease payment
the Company has continued to accrue duties in full until the outcome of the
claim is known with certainty. At September 30, 2011 the accrual totalled
$12,289,000, and $9,449,000 has been included in cost of sales
for the nine months ended September 30, 2011. If these duties are recovered the
benefit will be recognized in the statement of earnings for the full amount in
the period recovery becomes virtually certain.</P>
<TABLE
style="BORDER-COLOR: black; FONT-SIZE: 10pt; BORDER-COLLAPSE: collapse; "
cellSpacing=0 cellPadding=0 width="100%" border=0 BCLLIST>

  <TR>
    <TD width="5%"  >&nbsp;</TD>
    <TD vAlign=top width="5%"><B>b)</B> </TD>
    <TD>
      <P align=justify><B>General and
administrative</B></P></TD></TR></TABLE><BR>
<TABLE width="100%" border=0 cellPadding=0
cellSpacing=0
style="BORDER-COLOR: black; FONT-SIZE: 10pt; BORDER-COLLAPSE: collapse; ">

  <TR vAlign=top>
    <TD  >&nbsp;</TD>
    <TD align=left>&nbsp; </TD>
    <TD align=left >&nbsp;</TD>
    <TD colSpan=4 align=right nowrap><B>Three Months Ended September
      30</B> </TD>
    <TD align=left nowrap >&nbsp;</TD>
    <TD align=left nowrap >&nbsp;</TD>
    <TD colSpan=4 align=right nowrap><B>Nine Months Ended September
      30</B> </TD>
  <TD align=left >&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD width="5%" >&nbsp;</TD>
    <TD align=left>&nbsp; </TD>
    <TD width="1%" align=left >&nbsp;</TD>
    <TD align=right><B>2011</B> </TD>
    <TD width="2%" align=left >&nbsp;</TD>
    <TD width="1%" align=left >&nbsp;</TD>
    <TD align=right><B>2010</B> </TD>
    <TD width="2%" align=left >&nbsp;</TD>
    <TD width="1%" align=left >&nbsp;</TD>
    <TD align=right><B>2011</B> </TD>
    <TD width="2%" align=left >&nbsp;</TD>
    <TD width="1%" align=left >&nbsp;</TD>
    <TD align=right><B>2010</B> </TD>
  <TD width="2%" align=left >&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>&nbsp; </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left
    ></TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><STRONG>$</STRONG>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left
    ></TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><STRONG>$</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>$</STRONG>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left
    ></TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><STRONG>$</STRONG>&nbsp;</TD>
  <TD style="BORDER-BOTTOM: #000000 1px solid" align=left
    >&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD >&nbsp;</TD>
    <TD align=left bgColor=#e6efff>Salaries and benefits </TD>
    <TD align=left  bgColor=#e6efff>&nbsp;</TD>
    <TD align=right bgColor=#e6efff><B>3,074</B> </TD>
    <TD align=left  bgColor=#e6efff>&nbsp;</TD>
    <TD align=left  bgColor=#e6efff>&nbsp;</TD>
    <TD align=right bgColor=#e6efff>2,110 </TD>
    <TD align=left  bgColor=#e6efff>&nbsp;</TD>
    <TD align=left  bgColor=#e6efff>&nbsp;</TD>
    <TD align=right bgColor=#e6efff><B>8,609</B> </TD>
    <TD align=left  bgColor=#e6efff>&nbsp;</TD>
    <TD align=left  bgColor=#e6efff>&nbsp;</TD>
    <TD align=right bgColor=#e6efff>7,466 </TD>
  <TD align=left  bgColor=#e6efff>&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD >&nbsp;</TD>
    <TD align=left>Share-based compensation </TD>
    <TD align=left >&nbsp;</TD>
    <TD align=right><B>619</B> </TD>
    <TD align=left >&nbsp;</TD>
    <TD align=left >&nbsp;</TD>
    <TD align=right>2,165 </TD>
    <TD align=left >&nbsp;</TD>
    <TD align=left >&nbsp;</TD>
    <TD align=right><B>4,028</B> </TD>
    <TD align=left >&nbsp;</TD>
    <TD align=left >&nbsp;</TD>
    <TD align=right>5,776 </TD>
  <TD align=left >&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD >&nbsp;</TD>
    <TD align=left bgColor=#e6efff>Travelling expense </TD>
    <TD align=left  bgColor=#e6efff>&nbsp;</TD>
    <TD align=right bgColor=#e6efff><B>362</B> </TD>
    <TD align=left  bgColor=#e6efff>&nbsp;</TD>
    <TD align=left  bgColor=#e6efff>&nbsp;</TD>
    <TD align=right bgColor=#e6efff>352 </TD>
    <TD align=left  bgColor=#e6efff>&nbsp;</TD>
    <TD align=left  bgColor=#e6efff>&nbsp;</TD>
    <TD align=right bgColor=#e6efff><B>1,216</B> </TD>
    <TD align=left  bgColor=#e6efff>&nbsp;</TD>
    <TD align=left  bgColor=#e6efff>&nbsp;</TD>
    <TD align=right bgColor=#e6efff>709 </TD>
  <TD align=left  bgColor=#e6efff>&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD >&nbsp;</TD>
    <TD width="40%" align=left>Consulting and professional fees </TD>
    <TD align=left >&nbsp;</TD>
    <TD align=right><B>503</B> </TD>
    <TD align=left >&nbsp;</TD>
    <TD align=left >&nbsp;</TD>
    <TD align=right>353 </TD>
    <TD align=left >&nbsp;</TD>
    <TD align=left >&nbsp;</TD>
    <TD align=right><B>1,333</B> </TD>
    <TD align=left >&nbsp;</TD>
    <TD align=left >&nbsp;</TD>
    <TD align=right>1,960 </TD>
  <TD align=left >&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD >&nbsp;</TD>
    <TD align=left bgColor=#e6efff>Insurance expense </TD>
    <TD align=left  bgColor=#e6efff>&nbsp;</TD>
    <TD align=right bgColor=#e6efff><B>228</B> </TD>
    <TD align=left  bgColor=#e6efff>&nbsp;</TD>
    <TD align=left  bgColor=#e6efff>&nbsp;</TD>
    <TD align=right bgColor=#e6efff>245 </TD>
    <TD align=left  bgColor=#e6efff>&nbsp;</TD>
    <TD align=left  bgColor=#e6efff>&nbsp;</TD>
    <TD align=right bgColor=#e6efff><B>630</B> </TD>
    <TD align=left  bgColor=#e6efff>&nbsp;</TD>
    <TD align=left  bgColor=#e6efff>&nbsp;</TD>
    <TD align=right bgColor=#e6efff>580 </TD>
  <TD align=left  bgColor=#e6efff>&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD >&nbsp;</TD>
    <TD align=left>Depreciation and amortization </TD>
    <TD align=left >&nbsp;</TD>
    <TD align=right><B>80</B> </TD>
    <TD align=left >&nbsp;</TD>
    <TD align=left >&nbsp;</TD>
    <TD align=right>70 </TD>
    <TD align=left >&nbsp;</TD>
    <TD align=left >&nbsp;</TD>
    <TD align=right><B>206</B> </TD>
    <TD align=left >&nbsp;</TD>
    <TD align=left >&nbsp;</TD>
    <TD align=right>213 </TD>
  <TD align=left >&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left
      bgColor=#e6efff>Other expenses </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left
     bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right
    bgColor=#e6efff><B>1,882</B> </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left
     bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left
     bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right
    bgColor=#e6efff>956 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left
     bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left
     bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right
    bgColor=#e6efff><B>4,326</B> </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left
     bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left
     bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right
    bgColor=#e6efff>2,913 </TD>
  <TD style="BORDER-BOTTOM: #000000 1px solid" align=left
     bgColor=#e6efff>&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD >&nbsp;</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><B>6,748</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>6,251    </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><B>20,348</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>19,617 </TD>
  <TD style="BORDER-BOTTOM: #000000 2px solid" align=left
    >&nbsp;</TD>
  </TR></TABLE><BR>
<TABLE
style="BORDER-COLOR: black; FONT-SIZE: 10pt; BORDER-COLLAPSE: collapse; "
cellSpacing=0 cellPadding=0 width="100%" border=0 BCLLIST>

  <TR>
    <TD vAlign=top width="5%"><B>12.</B> </TD>
    <TD>
      <P align=justify><B>FINANCE INCOME AND
EXPENSES</B></P></TD></TR></TABLE><BR>
<TABLE
style="BORDER-COLOR: black; FONT-SIZE: 10pt; BORDER-COLLAPSE: collapse; "
cellSpacing=0 cellPadding=0 width="100%" border=0 BCLLIST>

  <TR>
    <TD width="5%"  >&nbsp;</TD>
    <TD vAlign=top width="5%"><B>a)</B> </TD>
    <TD>
      <P align=justify><B>Interest earned and other finance
  income</B></P></TD></TR></TABLE><BR>
<TABLE width="100%" border=0 cellPadding=0
cellSpacing=0
style="BORDER-COLOR: black; FONT-SIZE: 10pt; BORDER-COLLAPSE: collapse; ">

  <TR vAlign=top>
    <TD  >&nbsp;</TD>
    <TD align=left>&nbsp; </TD>
    <TD align=left >&nbsp;</TD>
    <TD colSpan=4 align=right nowrap><B>Three Months Ended September
      30</B> </TD>
    <TD align=left nowrap >&nbsp;</TD>
    <TD align=left nowrap >&nbsp;</TD>
    <TD colSpan=4 align=right nowrap><B>Nine Months Ended September
      30</B> </TD>
  <TD align=left >&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD width="5%" >&nbsp;</TD>
    <TD align=left>&nbsp; </TD>
    <TD width="1%" align=left >&nbsp;</TD>
    <TD align=right><B>2011</B> </TD>
    <TD width="2%" align=left >&nbsp;</TD>
    <TD width="1%" align=left >&nbsp;</TD>
    <TD align=right><B>2010</B> </TD>
    <TD width="2%" align=left >&nbsp;</TD>
    <TD width="1%" align=left >&nbsp;</TD>
    <TD align=right><B>2011</B> </TD>
    <TD width="2%" align=left >&nbsp;</TD>
    <TD width="1%" align=left >&nbsp;</TD>
    <TD align=right><B>2010</B> </TD>
  <TD width="2%" align=left >&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" 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
    ></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 vAlign=top>
    <TD >&nbsp;</TD>
    <TD width="40%" align=left bgColor=#e6efff>Interest earned </TD>
    <TD align=left  bgColor=#e6efff>&nbsp;</TD>
    <TD align=right bgColor=#e6efff><B>236</B> </TD>
    <TD align=left  bgColor=#e6efff>&nbsp;</TD>
    <TD align=left  bgColor=#e6efff>&nbsp;</TD>
    <TD align=right bgColor=#e6efff>192 </TD>
    <TD align=left  bgColor=#e6efff>&nbsp;</TD>
    <TD align=left  bgColor=#e6efff>&nbsp;</TD>
    <TD align=right bgColor=#e6efff><B>1,353</B> </TD>
    <TD align=left  bgColor=#e6efff>&nbsp;</TD>
    <TD align=left  bgColor=#e6efff>&nbsp;</TD>
    <TD align=right bgColor=#e6efff>400 </TD>
  <TD align=left  bgColor=#e6efff>&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>Accretion earned
      on convertible debenture receivable </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><B>213</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>217    </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><B>636</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>630    </TD>
  <TD style="BORDER-BOTTOM: #000000 1px solid" align=left
    >&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=left
      bgColor=#e6efff>Total interest earned and other finance income </TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=left
     bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=right
    bgColor=#e6efff><B>449</B> </TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=left
     bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=left
     bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=right
    bgColor=#e6efff>409 </TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=left
     bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=left
     bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=right
    bgColor=#e6efff><B>1,989</B> </TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=left
     bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=left
     bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=right
    bgColor=#e6efff>1,030 </TD>
  <TD style="BORDER-BOTTOM: #000000 2px solid" align=left
     bgColor=#e6efff>&nbsp;</TD>
  </TR></TABLE><BR>
<TABLE
style="BORDER-COLOR: black; FONT-SIZE: 10pt; BORDER-COLLAPSE: collapse; "
cellSpacing=0 cellPadding=0 width="100%" border=0 BCLLIST>

  <TR>
    <TD width="5%"  >&nbsp;</TD>
    <TD vAlign=top width="5%"><B>b)</B> </TD>
    <TD>
      <P align=justify><B>Interest expense and other finance
  costs</B></P></TD></TR></TABLE><BR>
<TABLE width="100%" border=0 cellPadding=0
cellSpacing=0
style="BORDER-COLOR: black; FONT-SIZE: 10pt; BORDER-COLLAPSE: collapse; ">

  <TR vAlign=top>
    <TD  >&nbsp;</TD>
    <TD align=left>&nbsp; </TD>
    <TD align=left >&nbsp;</TD>
    <TD colSpan=4 align=right nowrap><B>Three Months Ended September
      30</B> </TD>
    <TD align=left nowrap >&nbsp;</TD>
    <TD align=left nowrap >&nbsp;</TD>
    <TD colSpan=4 align=right nowrap><B>Nine Months Ended September
      30</B> </TD>
  <TD align=left >&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD >&nbsp;</TD>
    <TD align=left>&nbsp; </TD>
    <TD align=left >&nbsp;</TD>
    <TD align=right><B>2011</B> </TD>
    <TD align=left >&nbsp;</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>2011</B> </TD>
    <TD align=left >&nbsp;</TD>
    <TD align=left >&nbsp;</TD>
    <TD align=right><B>2010</B> </TD>
  <TD align=left >&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD width="5%" >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>&nbsp; </TD>
    <TD width="1%" align=left style="BORDER-BOTTOM: #000000 1px solid"
    ><B></B></TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><STRONG>$</STRONG>&nbsp;</TD>
    <TD width="2%" align=left style="BORDER-BOTTOM: #000000 1px solid"
    >&nbsp;</TD>
    <TD width="1%" align=left style="BORDER-BOTTOM: #000000 1px solid"
    ><B></B></TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><STRONG>$</STRONG>&nbsp;</TD>
    <TD width="2%" align=left style="BORDER-BOTTOM: #000000 1px solid"
    >&nbsp;</TD>
    <TD width="1%" align=left style="BORDER-BOTTOM: #000000 1px solid"
    ></TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><STRONG>$</STRONG>&nbsp;</TD>
    <TD width="2%" align=left style="BORDER-BOTTOM: #000000 1px solid"
    >&nbsp;</TD>
    <TD width="1%" align=left style="BORDER-BOTTOM: #000000 1px solid"
    ></TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><STRONG>$</STRONG>&nbsp;</TD>
  <TD width="2%" align=left style="BORDER-BOTTOM: #000000 1px solid"
    >&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD >&nbsp;</TD>
    <TD align=left bgColor=#e6efff>Interest expense on convertible notes </TD>
    <TD align=left  bgColor=#e6efff>&nbsp;</TD>
    <TD align=right bgColor=#e6efff><B>(1,565</B></TD>
    <TD align=left  bgColor=#e6efff><B>)</B> </TD>
    <TD align=left  bgColor=#e6efff>&nbsp;</TD>
    <TD align=right bgColor=#e6efff>(1,566</TD>
    <TD align=left  bgColor=#e6efff>) </TD>
    <TD align=left  bgColor=#e6efff>&nbsp;</TD>
    <TD align=right bgColor=#e6efff><B>(4,644</B></TD>
    <TD align=left  bgColor=#e6efff><B>)</B> </TD>
    <TD align=left  bgColor=#e6efff>&nbsp;</TD>
    <TD align=right bgColor=#e6efff>(4,645</TD>
  <TD align=left  bgColor=#e6efff>) </TD>
  </TR>
  <TR vAlign=top>
    <TD >&nbsp;</TD>
    <TD align=left>Accretion expense on convertible notes </TD>
    <TD align=left >&nbsp;</TD>
    <TD align=right><B>(2,346</B></TD>
    <TD align=left ><B>)</B> </TD>
    <TD align=left >&nbsp;</TD>
    <TD align=right>(2,113</TD>
    <TD align=left >) </TD>
    <TD align=left >&nbsp;</TD>
    <TD align=right><B>(6,855</B></TD>
    <TD align=left ><B>)</B> </TD>
    <TD align=left >&nbsp;</TD>
    <TD align=right>(6,111</TD>
  <TD align=left >) </TD>
  </TR>
  <TR vAlign=top>
    <TD >&nbsp;</TD>
    <TD width="40%" align=left bgColor=#e6efff>Accretion of close down and restoration
      provision </TD>
    <TD align=left  bgColor=#e6efff>&nbsp;</TD>
    <TD align=right bgColor=#e6efff><B>(399</B></TD>
    <TD align=left  bgColor=#e6efff><B>)</B> </TD>
    <TD align=left  bgColor=#e6efff>&nbsp;</TD>
    <TD align=right bgColor=#e6efff>(532</TD>
    <TD align=left  bgColor=#e6efff>) </TD>
    <TD align=left  bgColor=#e6efff>&nbsp;</TD>
    <TD align=right bgColor=#e6efff><B>(1,207</B></TD>
    <TD align=left  bgColor=#e6efff><B>)</B> </TD>
    <TD align=left  bgColor=#e6efff>&nbsp;</TD>
    <TD align=right bgColor=#e6efff>(1,231</TD>
  <TD align=left  bgColor=#e6efff>) </TD>
  </TR>
  <TR vAlign=top>
    <TD >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>Other interest
      expense </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><B>(19</B></TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left
    ><B>)</B> </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right>(54</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left
    >) </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><B>(160</B></TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left
    ><B>)</B> </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right>(54</TD>
  <TD style="BORDER-BOTTOM: #000000 1px solid" align=left
    >) </TD>
  </TR>
  <TR vAlign=top>
    <TD >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=left
      bgColor=#e6efff>Total interest expense and other finance costs </TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=left
     bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=right
    bgColor=#e6efff><B>(4,329</B></TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=left
     bgColor=#e6efff><B>)</B> </TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=left
     bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=right
    bgColor=#e6efff>(4,265</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=left
     bgColor=#e6efff>) </TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=left
     bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=right
    bgColor=#e6efff><B>(12,866</B></TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=left
     bgColor=#e6efff><B>)</B> </TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=left
     bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=right
    bgColor=#e6efff>(12,041</TD>
  <TD style="BORDER-BOTTOM: #000000 2px solid" align=left
     bgColor=#e6efff>) </TD>
  </TR></TABLE>
<P align=right>17 | P a g e</P>
<HR style="PAGE-BREAK-AFTER: always" align=center width="100%" color=black
noShade SIZE=5>
<!--$$/page=--><A name=page_18></A><BR>
<TABLE
style="BORDER-COLOR: black; FONT-SIZE: 10pt; BORDER-COLLAPSE: collapse; "
cellSpacing=0 cellPadding=0 width="100%" border=0>

  <TR vAlign=top>
    <TD align=left><B>Silver Standard Resources Inc.</B> </TD></TR>
  <TR vAlign=top>
    <TD align=left>Notes to Consolidated Interim Financial Statements </TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>For the three and
      nine months ended September 30, 2011 </TD></TR>
  <TR vAlign=top>
    <TD align=left>(tabular amounts expressed in thousands of United States
      dollars unless otherwise stated - unaudited) </TD></TR></TABLE><BR>
<TABLE
style="BORDER-COLOR: black; FONT-SIZE: 10pt; BORDER-COLLAPSE: collapse; "
cellSpacing=0 cellPadding=0 width="100%" border=0 BCLLIST>

  <TR>
    <TD vAlign=top width="5%"><B>13.</B> </TD>
    <TD>
      <P align=justify><B>OTHER INCOME
(EXPENSES)</B></P></TD></TR></TABLE><BR>
<TABLE width="100%" border=0 cellPadding=0
cellSpacing=0
style="BORDER-COLOR: black; FONT-SIZE: 10pt; BORDER-COLLAPSE: collapse; ">

  <TR vAlign=top>
    <TD  >&nbsp;</TD>
    <TD align=left>&nbsp; </TD>
    <TD align=left >&nbsp;</TD>
    <TD colSpan=4 align=right nowrap><B>Three Months Ended September
      30</B> </TD>
    <TD align=left nowrap >&nbsp;</TD>
    <TD align=left nowrap >&nbsp;</TD>
    <TD colSpan=4 align=right nowrap><B>Nine Months Ended September
      30</B> </TD>
  <TD align=left >&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD width="5%" >&nbsp;</TD>
    <TD align=left>&nbsp; </TD>
    <TD width="1%" align=left >&nbsp;</TD>
    <TD align=right><B>2011</B> </TD>
    <TD width="2%" align=left >&nbsp;</TD>
    <TD width="1%" align=left >&nbsp;</TD>
    <TD align=right><B>2010</B> </TD>
    <TD width="2%" align=left >&nbsp;</TD>
    <TD width="1%" align=left >&nbsp;</TD>
    <TD align=right><B>2011</B> </TD>
    <TD width="2%" align=left >&nbsp;</TD>
    <TD width="1%" align=left >&nbsp;</TD>
    <TD align=right><B>2010</B> </TD>
  <TD width="2%" align=left >&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD >&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>
    <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 >&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>
  <TD >&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD >&nbsp;</TD>
    <TD align=left bgColor=#e6efff>Reversal of impairment of convertible
      debenture </TD>
    <TD align=left  bgColor=#e6efff>&nbsp;</TD>
    <TD align=right bgColor=#e6efff><B>-</B> </TD>
    <TD align=left  bgColor=#e6efff>&nbsp;</TD>
    <TD align=left  bgColor=#e6efff>&nbsp;</TD>
    <TD align=right bgColor=#e6efff>- </TD>
    <TD align=left  bgColor=#e6efff>&nbsp;</TD>
    <TD align=left  bgColor=#e6efff>&nbsp;</TD>
    <TD align=right bgColor=#e6efff><B>2,400</B> </TD>
    <TD align=left  bgColor=#e6efff>&nbsp;</TD>
    <TD align=left  bgColor=#e6efff>&nbsp;</TD>
    <TD align=right bgColor=#e6efff>- </TD>
  <TD align=left  bgColor=#e6efff>&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD >&nbsp;</TD>
    <TD width="40%" align=left>Unrealized gain (loss) on financial instruments at
      FVTPL<SUP>(1)</SUP> </TD>
    <TD align=left >&nbsp;</TD>
    <TD align=right><B>5,362</B> </TD>
    <TD align=left >&nbsp;</TD>
    <TD align=left >&nbsp;</TD>
    <TD align=right>(2,766</TD>
    <TD align=left >) </TD>
    <TD align=left >&nbsp;</TD>
    <TD align=right><B>13,477</B> </TD>
    <TD align=left >&nbsp;</TD>
    <TD align=left >&nbsp;</TD>
    <TD align=right>9,237 </TD>
  <TD align=left >&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD >&nbsp;</TD>
    <TD align=left bgColor=#e6efff>Gain on sale of marketable securities </TD>
    <TD align=left  bgColor=#e6efff>&nbsp;</TD>
    <TD align=right bgColor=#e6efff><B>5,453</B> </TD>
    <TD align=left  bgColor=#e6efff>&nbsp;</TD>
    <TD align=left  bgColor=#e6efff>&nbsp;</TD>
    <TD align=right bgColor=#e6efff>741 </TD>
    <TD align=left  bgColor=#e6efff>&nbsp;</TD>
    <TD align=left  bgColor=#e6efff>&nbsp;</TD>
    <TD align=right bgColor=#e6efff><B>5,453</B> </TD>
    <TD align=left  bgColor=#e6efff>&nbsp;</TD>
    <TD align=left  bgColor=#e6efff>&nbsp;</TD>
    <TD align=right bgColor=#e6efff>3,115 </TD>
  <TD align=left  bgColor=#e6efff>&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD >&nbsp;</TD>
    <TD align=left>Write-off of mineral property costs </TD>
    <TD align=left >&nbsp;</TD>
    <TD align=right><B>(4,514</B></TD>
    <TD align=left ><B>)</B> </TD>
    <TD align=left >&nbsp;</TD>
    <TD align=right>- </TD>
    <TD align=left >&nbsp;</TD>
    <TD align=left >&nbsp;</TD>
    <TD align=right><B>(4,514</B></TD>
    <TD align=left ><B>)</B> </TD>
    <TD align=left >&nbsp;</TD>
    <TD align=right>- </TD>
  <TD align=left >&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD >&nbsp;</TD>
    <TD align=left bgColor=#e6efff>Gain on dilution of associate </TD>
    <TD align=left  bgColor=#e6efff>&nbsp;</TD>
    <TD align=right bgColor=#e6efff><B>1,803</B> </TD>
    <TD align=left  bgColor=#e6efff>&nbsp;</TD>
    <TD align=left  bgColor=#e6efff>&nbsp;</TD>
    <TD align=right bgColor=#e6efff>- </TD>
    <TD align=left  bgColor=#e6efff>&nbsp;</TD>
    <TD align=left  bgColor=#e6efff>&nbsp;</TD>
    <TD align=right bgColor=#e6efff><B>1,803</B> </TD>
    <TD align=left  bgColor=#e6efff>&nbsp;</TD>
    <TD align=left  bgColor=#e6efff>&nbsp;</TD>
    <TD align=right bgColor=#e6efff>- </TD>
  <TD align=left  bgColor=#e6efff>&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD >&nbsp;</TD>
    <TD align=left>Share of loss of associate </TD>
    <TD align=left >&nbsp;</TD>
    <TD align=right><B>(624</B></TD>
    <TD align=left ><B>)</B> </TD>
    <TD align=left >&nbsp;</TD>
    <TD align=right>- </TD>
    <TD align=left >&nbsp;</TD>
    <TD align=left >&nbsp;</TD>
    <TD align=right><B>(4,616</B></TD>
    <TD align=left ><B>)</B> </TD>
    <TD align=left >&nbsp;</TD>
    <TD align=right>- </TD>
  <TD align=left >&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left
      bgColor=#e6efff>Miscellaneous expense </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left
     bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right
    bgColor=#e6efff><B>(92</B></TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left
     bgColor=#e6efff><B>)</B> </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left
     bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right
    bgColor=#e6efff>- </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left
     bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left
     bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right
    bgColor=#e6efff><B>(205</B></TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left
     bgColor=#e6efff><B>)</B> </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left
     bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right
    bgColor=#e6efff>- </TD>
  <TD style="BORDER-BOTTOM: #000000 1px solid" align=left
     bgColor=#e6efff>&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD >&nbsp;</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><B>7,388</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>(2,025</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=left
    >) </TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=left
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=right><B>13,798</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>12,352 </TD>
  <TD style="BORDER-BOTTOM: #000000 2px solid" align=left
    >&nbsp;</TD>
  </TR></TABLE><BR>
<TABLE
style="BORDER-COLOR: black; FONT-SIZE: 10pt; BORDER-COLLAPSE: collapse; "
cellSpacing=0 cellPadding=0 width="100%" border=0 BCLLIST>

  <TR>
    <TD width="5%"  >&nbsp;</TD>
    <TD vAlign=top width="5%"><sup>(1) </sup></TD>
    <TD>
      <P align=justify>Financial instruments held at FVTPL include the
      conversion option of the convertible debenture receivable (note 3), the
      warrant liability (note 7) and the share purchase option embedded in the
      convertible notes (note 9).</P></TD></TR></TABLE><BR>
<TABLE
style="BORDER-COLOR: black; FONT-SIZE: 10pt; BORDER-COLLAPSE: collapse; "
cellSpacing=0 cellPadding=0 width="100%" border=0 BCLLIST>

  <TR>
    <TD vAlign=top width="5%"><B>14.</B> </TD>
    <TD>
      <P align=justify><B>OPERATING SEGMENTS</B></P></TD></TR></TABLE>
<P style="MARGIN-LEFT: 5%" align=justify>The Company has identifed its operating
segments based on the information used by the President and Chief Executive
Officer (who is considered to be the chief operating decision maker (&#147;CODM&#148;)) to
manage the business. The Company primarily manages its business by looking at
individual extractive projects and typically segregates them between production,
development and exploration. For reporting purposes all exploration and
development projects have been aggregated into a single reportable segment
&#145;exploration and development&#146; because they all have similar characteristics and
none exceed the quantitative thresholds for individual disclosure. The only
production property, Pirquitas, is considered a single operating segment which
derives its revenues from the sale of silver and zinc concentrates. The corporate
division only earns income that is considered incidental to the activities of
the Company and therefore does not meet the definition of an operating segment.
</P>
<P style="MARGIN-LEFT: 5%" align=justify>The following reporting segments have
been identified:</P>
<UL style="TEXT-ALIGN: justify">
  <LI>
  <P style="MARGIN-LEFT: 5%">Pirquitas mine </P>
  <LI>
  <P style="MARGIN-LEFT: 5%">Exploration and development properties </P></LI></UL>
<P align=right>18 | P a g e</P>
<HR style="PAGE-BREAK-AFTER: always" align=center width="100%" color=black
noShade SIZE=5>
<A name=page_19></A><BR>
<TABLE
style="BORDER-COLOR: black; FONT-SIZE: 10pt; BORDER-COLLAPSE: collapse; "
cellSpacing=0 cellPadding=0 width="100%" border=0>

  <TR vAlign=top>
    <TD align=left><B>Silver Standard Resources Inc. </B></TD></TR>
  <TR vAlign=top>
    <TD align=left>Notes to Consolidated Interim Financial Statements </TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>For the three and
      nine months ended September 30, 2011 </TD></TR>
  <TR vAlign=top>
    <TD align=left>(tabular amounts expressed in thousands of United States
      dollars unless otherwise stated - unaudited) </TD></TR></TABLE><BR>
<TABLE
style="BORDER-COLOR: black; FONT-SIZE: 10pt; BORDER-COLLAPSE: collapse; "
cellSpacing=0 cellPadding=0 width="100%" border=0 BCLLIST>

  <TR>
    <TD vAlign=top width="5%"><B>14. </B></TD>
    <TD>
      <P align=justify><B>OPERATING SEGMENTS
(Cont&#146;d)</B></P></TD></TR></TABLE>
<P style="MARGIN-LEFT: 5%" align=justify>The following is a summary of the
carrying amounts of income or loss, and segment assets and liabilities by
operating segment:</P>
<TABLE
style="BORDER-COLOR: black; FONT-SIZE: 10pt; BORDER-COLLAPSE: collapse; "
cellSpacing=0 cellPadding=0 width="100%" border=0>

  <TR vAlign=top>
    <TD width="5%"  >&nbsp;</TD>
    <TD align=left>&nbsp; </TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD width="10%" align=right nowrap><B>Pirquitas Mine </B></TD>
    <TD width="2%" align=left nowrap >&nbsp;</TD>
    <TD width="1%" align=left nowrap >&nbsp;</TD>
    <TD width="10%" align=right nowrap><B>Exploration and </B></TD>
    <TD width="2%" align=left nowrap >&nbsp;</TD>
    <TD width="1%" align=left nowrap >&nbsp;</TD>
    <TD width="10%" align=right nowrap><B>Other </B></TD>
    <TD width="2%" align=left nowrap >&nbsp;</TD>
    <TD width="1%" align=left nowrap >&nbsp;</TD>
    <TD width="10%" align=right nowrap><B>Total </B></TD>
  <TD align=left width="2%" >&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD width="5%" >&nbsp;</TD>
    <TD align=left>&nbsp; </TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD width="10%" align=left nowrap>&nbsp; </TD>
    <TD width="2%" align=left nowrap >&nbsp;</TD>
    <TD width="1%" align=left nowrap >&nbsp;</TD>
    <TD width="10%" align=right nowrap><B>Development </B></TD>
    <TD width="2%" align=left nowrap >&nbsp;</TD>
    <TD width="1%" align=left nowrap >&nbsp;</TD>
    <TD width="10%" align=right nowrap><B>reconciling </B></TD>
    <TD width="2%" align=left nowrap >&nbsp;</TD>
    <TD width="1%" align=left nowrap >&nbsp;</TD>
    <TD width="10%" align=left nowrap>&nbsp; </TD>
  <TD align=left width="2%" >&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD width="5%" >&nbsp;</TD>
    <TD align=left>&nbsp; </TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD width="10%" align=left nowrap>&nbsp; </TD>
    <TD width="2%" align=left nowrap >&nbsp;</TD>
    <TD width="1%" align=left nowrap >&nbsp;</TD>
    <TD width="10%" align=right nowrap><B>Properties </B></TD>
    <TD width="2%" align=left nowrap >&nbsp;</TD>
    <TD width="1%" align=left nowrap >&nbsp;</TD>
    <TD width="10%" align=right nowrap><B>items </B><B><SUP>(i, </SUP></B><B><SUP>ii)
      </SUP></B></TD>
    <TD width="2%" align=left nowrap >&nbsp;</TD>
    <TD width="1%" align=left nowrap >&nbsp;</TD>
    <TD width="10%" align=left nowrap>&nbsp; </TD>
  <TD align=left width="2%" >&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD width="5%" >&nbsp;</TD>
    <TD align=left><B>Three months ended September 30, 2011 </B></TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=left width="10%">&nbsp; </TD>
    <TD align=left width="2%" >&nbsp;</TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=left width="10%">&nbsp; </TD>
    <TD align=left width="2%" >&nbsp;</TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=left width="10%">&nbsp; </TD>
    <TD align=left width="2%" >&nbsp;</TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=left width="10%">&nbsp; </TD>
    <TD align=left width="2%" >&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD width="5%" >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>&nbsp; </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
    ><B></B></TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right
      width="10%"><STRONG>$</STRONG>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="2%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
    ><B></B></TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right
      width="10%"><STRONG>$</STRONG>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="2%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
    ><B></B></TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right
      width="10%"><STRONG>$</STRONG>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="2%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
    ><B></B></TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right
      width="10%"><STRONG>$</STRONG>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="2%"
    >&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD width="5%" >&nbsp;</TD>
    <TD align=left bgColor=#e6efff>Revenue from external customers </TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="10%" bgColor=#e6efff>26,152 </TD>
    <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="10%" bgColor=#e6efff>- </TD>
    <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="10%" bgColor=#e6efff>- </TD>
    <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="10%" bgColor=#e6efff><B>26,152 </B></TD>
    <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD></TR>
  <TR>
    <TD width="5%" >&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>
    <TD width="1%" >&nbsp;</TD>
    <TD width="10%">&nbsp; </TD>
    <TD width="2%" >&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD width="5%" >&nbsp;</TD>
    <TD align=left bgColor=#e6efff>Cost of inventory and export duties </TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="10%" bgColor=#e6efff>(12,250</TD>
    <TD align=left width="2%"  bgColor=#e6efff>) </TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="10%" bgColor=#e6efff>- </TD>
    <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="10%" bgColor=#e6efff>- </TD>
    <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="10%" bgColor=#e6efff><B>(12,250</B></TD>
    <TD align=left width="2%"  bgColor=#e6efff><B>) </B></TD></TR>
  <TR vAlign=top>
    <TD width="5%" >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>Depletion,
      depreciation and amortization </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right
    width="10%">(2,410</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="2%"
    >) </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right width="10%">- </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="2%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right width="10%">- </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="2%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right
      width="10%"><B>(2,410</B></TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="2%"
    ><B>) </B></TD></TR>
  <TR vAlign=top>
    <TD width="5%" >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left
      bgColor=#e6efff>Cost of sales </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
     bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right width="10%"
    bgColor=#e6efff>(14,660</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="2%"
     bgColor=#e6efff>) </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
     bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right width="10%"
    bgColor=#e6efff>- </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="2%"
     bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
     bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right width="10%"
    bgColor=#e6efff>- </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="2%"
     bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
     bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right width="10%"
    bgColor=#e6efff><B>(14,660</B></TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="2%"
     bgColor=#e6efff><B>) </B></TD></TR>
  <TR>
    <TD width="5%" >&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>
    <TD width="1%" >&nbsp;</TD>
    <TD width="10%">&nbsp; </TD>
    <TD width="2%" >&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD width="5%" >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=left
      bgColor=#e6efff>Income from mine operations </TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=left width="1%"
     bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=right width="10%"
    bgColor=#e6efff>11,492 </TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=left width="2%"
     bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=left width="1%"
     bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=right width="10%"
    bgColor=#e6efff>- </TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=left width="2%"
     bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=left width="1%"
     bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=right width="10%"
    bgColor=#e6efff>- </TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=left width="2%"
     bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=left width="1%"
     bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=right width="10%"
    bgColor=#e6efff><B>11,492 </B></TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=left width="2%"
     bgColor=#e6efff>&nbsp;</TD></TR>
  <TR>
    <TD width="5%" >&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>
    <TD width="1%" >&nbsp;</TD>
    <TD width="10%">&nbsp; </TD>
    <TD width="2%" >&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD width="5%" >&nbsp;</TD>
    <TD align=left bgColor=#e6efff>Operating income (loss) </TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="10%" bgColor=#e6efff>10,249 </TD>
    <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="10%" bgColor=#e6efff>(333</TD>
    <TD align=left width="2%"  bgColor=#e6efff>) </TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="10%" bgColor=#e6efff>(6,850</TD>
    <TD align=left width="2%"  bgColor=#e6efff>) </TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="10%" bgColor=#e6efff><B>3,066 </B></TD>
    <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD width="5%" >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>Income (loss)
      before income tax</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right width="10%">7,510
    </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="2%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right
      width="10%">46,552 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="2%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right
    width="10%">(1,338</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="2%"
    >) </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right
      width="10%"><B>52,724 </B></TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="2%"
    >&nbsp;</TD></TR>
  <TR>
    <TD width="5%" >&nbsp;</TD>
    <TD bgColor=#e6efff>&nbsp; </TD>
    <TD width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD width="10%" bgColor=#e6efff>&nbsp; </TD>
    <TD width="2%"  bgColor=#e6efff>&nbsp;</TD>
    <TD width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD width="10%" bgColor=#e6efff>&nbsp; </TD>
    <TD width="2%"  bgColor=#e6efff>&nbsp;</TD>
    <TD width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD width="10%" bgColor=#e6efff>&nbsp; </TD>
    <TD width="2%"  bgColor=#e6efff>&nbsp;</TD>
    <TD width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD width="10%" bgColor=#e6efff>&nbsp; </TD>
    <TD width="2%"  bgColor=#e6efff>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD width="5%" >&nbsp;</TD>
    <TD align=left>Interest income earned and other finance income </TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=right width="10%">- </TD>
    <TD align=left width="2%" >&nbsp;</TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=right width="10%">- </TD>
    <TD align=left width="2%" >&nbsp;</TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=right width="10%">449 </TD>
    <TD align=left width="2%" >&nbsp;</TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=right width="10%"><B>449 </B></TD>
    <TD align=left width="2%" >&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD width="5%" >&nbsp;</TD>
    <TD align=left bgColor=#e6efff>Interest expense and other finance costs
</TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="10%" bgColor=#e6efff>(322</TD>
    <TD align=left width="2%"  bgColor=#e6efff>) </TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="10%" bgColor=#e6efff>(29</TD>
    <TD align=left width="2%"  bgColor=#e6efff>) </TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="10%" bgColor=#e6efff>(3,978</TD>
    <TD align=left width="2%"  bgColor=#e6efff>) </TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="10%" bgColor=#e6efff><B>(4,329</B></TD>
    <TD align=left width="2%"  bgColor=#e6efff><B>) </B></TD></TR>
  <TR vAlign=top>
    <TD width="5%" >&nbsp;</TD>
    <TD align=left>Write-off of mineral property costs </TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=right width="10%">- </TD>
    <TD align=left width="2%" >&nbsp;</TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=right width="10%">(4,514</TD>
    <TD align=left width="2%" >) </TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=right width="10%">- </TD>
    <TD align=left width="2%" >&nbsp;</TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=right width="10%"><B>(4,514</B></TD>
    <TD align=left width="2%" ><B>) </B></TD></TR>
  <TR vAlign=top>
    <TD width="5%" >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left
      bgColor=#e6efff>Income tax recovery (expense) </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
     bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right width="10%"
    bgColor=#e6efff>(7,447</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="2%"
     bgColor=#e6efff>) </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
     bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right width="10%"
    bgColor=#e6efff>(17,438</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="2%"
     bgColor=#e6efff>) </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
     bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right width="10%"
    bgColor=#e6efff>(6,003</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="2%"
     bgColor=#e6efff>) </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
     bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right width="10%"
    bgColor=#e6efff><B>(30,888</B></TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="2%"
     bgColor=#e6efff><B>) </B></TD></TR>
  <TR>
    <TD width="5%" >&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>
    <TD width="1%" >&nbsp;</TD>
    <TD width="10%">&nbsp; </TD>
    <TD width="2%" >&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD width="5%" >&nbsp;</TD>
    <TD align=left bgColor=#e6efff><B>As at September 30, 2011 </B></TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="10%" bgColor=#e6efff>&nbsp; </TD>
    <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="10%" bgColor=#e6efff>&nbsp; </TD>
    <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="10%" bgColor=#e6efff>&nbsp; </TD>
    <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="10%" bgColor=#e6efff>&nbsp; </TD>
    <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD width="5%" >&nbsp;</TD>
    <TD align=left>Total assets </TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=right width="10%">516,208 </TD>
    <TD align=left width="2%" >&nbsp;</TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=right width="10%">234,937 </TD>
    <TD align=left width="2%" >&nbsp;</TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=right width="10%">498,425 </TD>
    <TD align=left width="2%" >&nbsp;</TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=right width="10%"><B>1,249,570 </B></TD>
    <TD align=left width="2%" >&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD width="5%" >&nbsp;</TD>
    <TD align=left bgColor=#e6efff>Non-current assets </TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="10%" bgColor=#e6efff>409,175 </TD>
    <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="10%" bgColor=#e6efff>194,865 </TD>
    <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="10%" bgColor=#e6efff>137,075 </TD>
    <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="10%" bgColor=#e6efff><B>741,115 </B></TD>
    <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD width="5%" >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>Total liabilities
    </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right
      width="10%">(65,907</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="2%"
    >) </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right
      width="10%">(23,737</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="2%"
    >) </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right
      width="10%">(172,202</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="2%"
    >) </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right
      width="10%"><B>(261,846</B></TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="2%"
    ><B>) </B></TD></TR></TABLE><BR>
<TABLE
style="BORDER-COLOR: black; FONT-SIZE: 10pt; BORDER-COLLAPSE: collapse; "
cellSpacing=0 cellPadding=0 width="100%" border=0>

  <TR vAlign=top>
    <TD width="5%"  >&nbsp;</TD>
    <TD align=left>&nbsp; </TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD width="10%" align=right nowrap><B>Pirquitas Mine </B></TD>
    <TD width="2%" align=left nowrap >&nbsp;</TD>
    <TD width="1%" align=left nowrap >&nbsp;</TD>
    <TD width="10%" align=right nowrap><B>Exploration and </B></TD>
    <TD width="2%" align=left nowrap >&nbsp;</TD>
    <TD width="1%" align=left nowrap >&nbsp;</TD>
    <TD width="10%" align=right nowrap><B>Other </B></TD>
    <TD width="2%" align=left nowrap >&nbsp;</TD>
    <TD width="1%" align=left nowrap >&nbsp;</TD>
    <TD width="10%" align=right nowrap><B>Total </B></TD>
  <TD align=left width="2%" >&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD width="5%" >&nbsp;</TD>
    <TD align=left>&nbsp; </TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD width="10%" align=left nowrap>&nbsp; </TD>
    <TD width="2%" align=left nowrap >&nbsp;</TD>
    <TD width="1%" align=left nowrap >&nbsp;</TD>
    <TD width="10%" align=right nowrap><B>Development </B></TD>
    <TD width="2%" align=left nowrap >&nbsp;</TD>
    <TD width="1%" align=left nowrap >&nbsp;</TD>
    <TD width="10%" align=right nowrap><B>reconciling </B></TD>
    <TD width="2%" align=left nowrap >&nbsp;</TD>
    <TD width="1%" align=left nowrap >&nbsp;</TD>
    <TD width="10%" align=left nowrap>&nbsp; </TD>
  <TD align=left width="2%" >&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD width="5%" >&nbsp;</TD>
    <TD align=left><B>Three months ended September 30, 2010 </B></TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD width="10%" align=left nowrap>&nbsp; </TD>
    <TD width="2%" align=left nowrap >&nbsp;</TD>
    <TD width="1%" align=left nowrap >&nbsp;</TD>
    <TD width="10%" align=right nowrap><B>Properties </B></TD>
    <TD width="2%" align=left nowrap >&nbsp;</TD>
    <TD width="1%" align=left nowrap >&nbsp;</TD>
    <TD width="10%" align=right nowrap><B>items </B><B><SUP>(i) </SUP></B></TD>
    <TD width="2%" align=left nowrap >&nbsp;</TD>
    <TD width="1%" align=left nowrap >&nbsp;</TD>
    <TD width="10%" align=left nowrap>&nbsp; </TD>
  <TD align=left width="2%" >&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD width="5%" >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>&nbsp; </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
    ></TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right
      width="10%"><B>$&nbsp;</B></TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="2%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
    ><B></B></TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right
      width="10%"><B>$&nbsp;</B></TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="2%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
    ><B></B></TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right
      width="10%"><B>$&nbsp;</B></TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="2%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
    ><B></B></TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right
      width="10%"><B>$&nbsp;</B></TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="2%"
    >&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD width="5%" >&nbsp;</TD>
    <TD align=left bgColor=#e6efff>Revenue from external customers </TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="10%" bgColor=#e6efff>41,557 </TD>
    <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="10%" bgColor=#e6efff>- </TD>
    <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="10%" bgColor=#e6efff>- </TD>
    <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="10%" bgColor=#e6efff>41,557 </TD>
    <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD></TR>
  <TR>
    <TD width="5%" >&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>
    <TD width="1%" >&nbsp;</TD>
    <TD width="10%">&nbsp; </TD>
    <TD width="2%" >&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD width="5%" >&nbsp;</TD>
    <TD align=left bgColor=#e6efff>Cost of inventory and export duties </TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="10%" bgColor=#e6efff>(28,577</TD>
    <TD align=left width="2%"  bgColor=#e6efff>) </TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="10%" bgColor=#e6efff>- </TD>
    <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="10%" bgColor=#e6efff>- </TD>
    <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="10%" bgColor=#e6efff>(28,577</TD>
    <TD align=left width="2%"  bgColor=#e6efff>) </TD></TR>
  <TR vAlign=top>
    <TD width="5%" >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>Depletion,
      depreciation and amortization </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right
    width="10%">(5,554</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="2%"
    >) </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right width="10%">- </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="2%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right width="10%">- </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="2%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right
    width="10%">(5,554</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="2%"
    >) </TD></TR>
  <TR vAlign=top>
    <TD width="5%" >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left
      bgColor=#e6efff>Cost of sales </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
     bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right width="10%"
    bgColor=#e6efff>(34,131</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="2%"
     bgColor=#e6efff>) </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
     bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right width="10%"
    bgColor=#e6efff>- </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="2%"
     bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
     bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right width="10%"
    bgColor=#e6efff>- </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="2%"
     bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
     bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right width="10%"
    bgColor=#e6efff>(34,131</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="2%"
     bgColor=#e6efff>) </TD></TR>
  <TR>
    <TD width="5%" >&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>
    <TD width="1%" >&nbsp;</TD>
    <TD width="10%">&nbsp; </TD>
    <TD width="2%" >&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD width="5%" >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=left
      bgColor=#e6efff>Income from mine operations </TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=left width="1%"
     bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=right width="10%"
    bgColor=#e6efff>7,426 </TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=left width="2%"
     bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=left width="1%"
     bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=right width="10%"
    bgColor=#e6efff>- </TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=left width="2%"
     bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=left width="1%"
     bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=right width="10%"
    bgColor=#e6efff>- </TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=left width="2%"
     bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=left width="1%"
     bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=right width="10%"
    bgColor=#e6efff>7,426 </TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=left width="2%"
     bgColor=#e6efff>&nbsp;</TD></TR>
  <TR>
    <TD width="5%" >&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>
    <TD width="1%" >&nbsp;</TD>
    <TD width="10%">&nbsp; </TD>
    <TD width="2%" >&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD width="5%" >&nbsp;</TD>
    <TD align=left bgColor=#e6efff>Operating income (loss) </TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="10%" bgColor=#e6efff>7,499 </TD>
    <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="10%" bgColor=#e6efff>(137</TD>
    <TD align=left width="2%"  bgColor=#e6efff>) </TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="10%" bgColor=#e6efff>(6,356</TD>
    <TD align=left width="2%"  bgColor=#e6efff>) </TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="10%" bgColor=#e6efff>1,006 </TD>
    <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD width="5%" >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>Income (loss)
      before income tax</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right width="10%">3,651
    </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="2%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right
width="10%">(97</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="2%"
    >) </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right
      width="10%">(14,712</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="2%"
    >) </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right
      width="10%">(11,158</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="2%"
    >) </TD></TR>
  <TR>
    <TD width="5%" >&nbsp;</TD>
    <TD bgColor=#e6efff>&nbsp; </TD>
    <TD width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD width="10%" bgColor=#e6efff>&nbsp; </TD>
    <TD width="2%"  bgColor=#e6efff>&nbsp;</TD>
    <TD width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD width="10%" bgColor=#e6efff>&nbsp; </TD>
    <TD width="2%"  bgColor=#e6efff>&nbsp;</TD>
    <TD width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD width="10%" bgColor=#e6efff>&nbsp; </TD>
    <TD width="2%"  bgColor=#e6efff>&nbsp;</TD>
    <TD width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD width="10%" bgColor=#e6efff>&nbsp; </TD>
    <TD width="2%"  bgColor=#e6efff>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD width="5%" >&nbsp;</TD>
    <TD align=left>Interest income earned and other finance income </TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=right width="10%">- </TD>
    <TD align=left width="2%" >&nbsp;</TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=right width="10%">- </TD>
    <TD align=left width="2%" >&nbsp;</TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=right width="10%">409 </TD>
    <TD align=left width="2%" >&nbsp;</TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=right width="10%">409 </TD>
    <TD align=left width="2%" >&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD width="5%" >&nbsp;</TD>
    <TD align=left bgColor=#e6efff>Interest expense and other finance costs
</TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="10%" bgColor=#e6efff>(237</TD>
    <TD align=left width="2%"  bgColor=#e6efff>) </TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="10%" bgColor=#e6efff>(84</TD>
    <TD align=left width="2%"  bgColor=#e6efff>) </TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="10%" bgColor=#e6efff>(3,944</TD>
    <TD align=left width="2%"  bgColor=#e6efff>) </TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="10%" bgColor=#e6efff>(4,265</TD>
    <TD align=left width="2%"  bgColor=#e6efff>) </TD></TR>
  <TR vAlign=top>
    <TD width="5%" >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>Income tax
      recovery </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right width="10%">- </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="2%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right width="10%">- </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="2%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right width="10%">751
    </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="2%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right width="10%">751
    </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="2%"
    >&nbsp;</TD></TR></TABLE>
<P align=right>19 | P a g e</P>
<HR style="PAGE-BREAK-AFTER: always" align=center width="100%" color=black
noShade SIZE=5>
<A name=page_20></A><BR>
<TABLE
style="BORDER-COLOR: black; FONT-SIZE: 10pt; BORDER-COLLAPSE: collapse; "
cellSpacing=0 cellPadding=0 width="100%" border=0>

  <TR vAlign=top>
    <TD align=left><B>Silver Standard Resources Inc. </B></TD></TR>
  <TR vAlign=top>
    <TD align=left>Notes to Consolidated Interim Financial Statements </TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>For the three and
      nine months ended September 30, 2011 </TD></TR>
  <TR vAlign=top>
    <TD align=left>(tabular amounts expressed in thousands of United States
      dollars unless otherwise stated - unaudited) </TD></TR></TABLE><BR>
<TABLE
style="BORDER-COLOR: black; FONT-SIZE: 10pt; BORDER-COLLAPSE: collapse; "
cellSpacing=0 cellPadding=0 width="100%" border=0 BCLLIST>

  <TR>
    <TD vAlign=top width="5%"><B>14. </B></TD>
    <TD>
      <P align=justify><B>OPERATING SEGMENTS
(Cont&#146;d)</B></P></TD></TR></TABLE><BR>
<TABLE
style="BORDER-COLOR: black; FONT-SIZE: 10pt; BORDER-COLLAPSE: collapse; "
cellSpacing=0 cellPadding=0 width="100%" border=0>

  <TR vAlign=top>
    <TD width="5%"  >&nbsp;</TD>
    <TD align=left>&nbsp; </TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD width="10%" align=right nowrap><B>Pirquitas Mine </B></TD>
    <TD width="2%" align=left nowrap >&nbsp;</TD>
    <TD width="1%" align=left nowrap >&nbsp;</TD>
    <TD width="10%" align=right nowrap><B>Exploration and </B></TD>
    <TD width="2%" align=left nowrap >&nbsp;</TD>
    <TD width="1%" align=left nowrap >&nbsp;</TD>
    <TD width="10%" align=right nowrap><B>Other </B></TD>
    <TD width="2%" align=left nowrap >&nbsp;</TD>
    <TD width="1%" align=left nowrap >&nbsp;</TD>
    <TD width="10%" align=right nowrap><B>Total </B></TD>
  <TD align=left width="2%" >&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD width="5%" >&nbsp;</TD>
    <TD align=left>&nbsp; </TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD width="10%" align=left nowrap>&nbsp; </TD>
    <TD width="2%" align=left nowrap >&nbsp;</TD>
    <TD width="1%" align=left nowrap >&nbsp;</TD>
    <TD width="10%" align=right nowrap><B>Development </B></TD>
    <TD width="2%" align=left nowrap >&nbsp;</TD>
    <TD width="1%" align=left nowrap >&nbsp;</TD>
    <TD width="10%" align=right nowrap><B>reconciling </B></TD>
    <TD width="2%" align=left nowrap >&nbsp;</TD>
    <TD width="1%" align=left nowrap >&nbsp;</TD>
    <TD width="10%" align=left nowrap>&nbsp; </TD>
  <TD align=left width="2%" >&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD width="5%" >&nbsp;</TD>
    <TD align=left><B>Nine months ended September 30, 2011 </B></TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD width="10%" align=left nowrap>&nbsp; </TD>
    <TD width="2%" align=left nowrap >&nbsp;</TD>
    <TD width="1%" align=left nowrap >&nbsp;</TD>
    <TD width="10%" align=right nowrap><B>Properties </B></TD>
    <TD width="2%" align=left nowrap >&nbsp;</TD>
    <TD width="1%" align=left nowrap >&nbsp;</TD>
    <TD width="10%" align=right nowrap><B>items </B><B><SUP>(i, </SUP></B><B><SUP>ii)
      </SUP></B></TD>
    <TD width="2%" align=left nowrap >&nbsp;</TD>
    <TD width="1%" align=left nowrap >&nbsp;</TD>
    <TD width="10%" align=left nowrap>&nbsp; </TD>
  <TD align=left width="2%" >&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD width="5%" >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>&nbsp; </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
    ></TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right
      width="10%"><B>$&nbsp;</B></TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="2%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
    ><B></B></TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right
      width="10%"><B>$&nbsp;</B></TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="2%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
    ><B></B></TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right
      width="10%"><B>$&nbsp;</B></TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="2%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
    ><B></B></TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right
      width="10%"><B>$&nbsp;</B></TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="2%"
    >&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD width="5%" >&nbsp;</TD>
    <TD align=left bgColor=#e6efff>Revenue from external customers </TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="10%" bgColor=#e6efff>133,476 </TD>
    <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="10%" bgColor=#e6efff>- </TD>
    <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="10%" bgColor=#e6efff>- </TD>
    <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="10%" bgColor=#e6efff><B>133,476 </B></TD>
    <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD width="5%" >&nbsp;</TD>
    <TD align=left>Cost of inventory and export duties </TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=right width="10%">(64,848</TD>
    <TD align=left width="2%" >) </TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=left width="10%">&nbsp; </TD>
    <TD align=left width="2%" >&nbsp;</TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=right width="10%">- </TD>
    <TD align=left width="2%" >&nbsp;</TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=right width="10%"><B>(64,848</B></TD>
    <TD align=left width="2%" >) </TD></TR>
  <TR vAlign=top>
    <TD width="5%" >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left
      bgColor=#e6efff>Depletion, depreciation and amortization </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
     bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right width="10%"
    bgColor=#e6efff>(13,439</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="2%"
     bgColor=#e6efff>) </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
     bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="10%"
    bgColor=#e6efff>&nbsp; </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="2%"
     bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
     bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right width="10%"
    bgColor=#e6efff>- </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="2%"
     bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
     bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right width="10%"
    bgColor=#e6efff><B>(13,439</B></TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="2%"
     bgColor=#e6efff>) </TD></TR>
  <TR vAlign=top>
    <TD width="5%" >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>Cost of sales </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right
      width="10%">(78,287</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="2%"
    >) </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right width="10%">- </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="2%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right width="10%">- </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="2%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right
      width="10%"><B>(78,287</B></TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="2%"
    >) </TD></TR>
  <TR>
    <TD width="5%" >&nbsp;</TD>
    <TD bgColor=#e6efff>&nbsp; </TD>
    <TD width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD width="10%" bgColor=#e6efff>&nbsp; </TD>
    <TD width="2%"  bgColor=#e6efff>&nbsp;</TD>
    <TD width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD width="10%" bgColor=#e6efff>&nbsp; </TD>
    <TD width="2%"  bgColor=#e6efff>&nbsp;</TD>
    <TD width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD width="10%" bgColor=#e6efff>&nbsp; </TD>
    <TD width="2%"  bgColor=#e6efff>&nbsp;</TD>
    <TD width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD width="10%" bgColor=#e6efff>&nbsp; </TD>
    <TD width="2%"  bgColor=#e6efff>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD width="5%" >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=left>Income from mine
      operations </TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=left width="1%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=right
      width="10%">55,189 </TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=left width="2%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=left width="1%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=right width="10%">- </TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=left width="2%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=left width="1%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=right width="10%">- </TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=left width="2%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=left width="1%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=right
      width="10%"><B>55,189 </B></TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=left width="2%"
    >&nbsp;</TD></TR>
  <TR>
    <TD width="5%" >&nbsp;</TD>
    <TD bgColor=#e6efff>&nbsp; </TD>
    <TD width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD width="10%" bgColor=#e6efff>&nbsp; </TD>
    <TD width="2%"  bgColor=#e6efff>&nbsp;</TD>
    <TD width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD width="10%" bgColor=#e6efff>&nbsp; </TD>
    <TD width="2%"  bgColor=#e6efff>&nbsp;</TD>
    <TD width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD width="10%" bgColor=#e6efff>&nbsp; </TD>
    <TD width="2%"  bgColor=#e6efff>&nbsp;</TD>
    <TD width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD width="10%" bgColor=#e6efff>&nbsp; </TD>
    <TD width="2%"  bgColor=#e6efff>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD width="5%" >&nbsp;</TD>
    <TD align=left>Operating income (loss) </TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=right width="10%">51,190 </TD>
    <TD align=left width="2%" >&nbsp;</TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=right width="10%">(912</TD>
    <TD align=left width="2%" >) </TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=right width="10%">(20,576</TD>
    <TD align=left width="2%" >) </TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=right width="10%"><B>29,702 </B></TD>
    <TD align=left width="2%" >&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD width="5%" >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left
      bgColor=#e6efff>Income (loss) before income tax</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
     bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right width="10%"
    bgColor=#e6efff>44,652 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="2%"
     bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
     bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right width="10%"
    bgColor=#e6efff>45,912 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="2%"
     bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
     bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right width="10%"
    bgColor=#e6efff>28,729 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="2%"
     bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
     bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right width="10%"
    bgColor=#e6efff><B>119,293 </B></TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="2%"
     bgColor=#e6efff>&nbsp;</TD></TR>
  <TR>
    <TD width="5%" >&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>
    <TD width="1%" >&nbsp;</TD>
    <TD width="10%">&nbsp; </TD>
    <TD width="2%" >&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD width="5%" >&nbsp;</TD>
    <TD align=left bgColor=#e6efff>Interest income earned and other finance
      income </TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="10%" bgColor=#e6efff>- </TD>
    <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="10%" bgColor=#e6efff>- </TD>
    <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="10%" bgColor=#e6efff>1,989 </TD>
    <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="10%" bgColor=#e6efff><B>1,989 </B></TD>
    <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD width="5%" >&nbsp;</TD>
    <TD align=left>Interest expense and other finance costs </TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=right width="10%">(1,077</TD>
    <TD align=left width="2%" >) </TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=right width="10%">(87</TD>
    <TD align=left width="2%" >) </TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=right width="10%">(11,702</TD>
    <TD align=left width="2%" >) </TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=right width="10%"><B>(12,866</B></TD>
    <TD align=left width="2%" >) </TD></TR>
  <TR vAlign=top>
    <TD width="5%" >&nbsp;</TD>
    <TD align=left bgColor=#e6efff>Write-off of mineral property costs </TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="10%" bgColor=#e6efff>- </TD>
    <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="10%" bgColor=#e6efff>(4,514</TD>
    <TD align=left width="2%"  bgColor=#e6efff>) </TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="10%" bgColor=#e6efff>- </TD>
    <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="10%" bgColor=#e6efff><B>(4,514</B></TD>
    <TD align=left width="2%"  bgColor=#e6efff>) </TD></TR>
  <TR vAlign=top>
    <TD width="5%" >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>Income tax
      recovery (expense) </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right
      width="10%">(16,741</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="2%"
    >) </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right
      width="10%">(17,193</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="2%"
    >) </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right
    width="10%">(7,814</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="2%"
    >) </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right
      width="10%"><B>(41,748</B></TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="2%"
    >) </TD></TR></TABLE><BR>
<TABLE
style="BORDER-COLOR: black; FONT-SIZE: 10pt; BORDER-COLLAPSE: collapse; "
cellSpacing=0 cellPadding=0 width="100%" border=0>

  <TR vAlign=top>
    <TD width="5%"  >&nbsp;</TD>
    <TD align=left>&nbsp; </TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD width="10%" align=right nowrap><B>Pirquitas Mine </B></TD>
    <TD width="2%" align=left nowrap >&nbsp;</TD>
    <TD width="1%" align=left nowrap >&nbsp;</TD>
    <TD width="10%" align=right nowrap><B>Exploration and </B></TD>
    <TD width="2%" align=left nowrap >&nbsp;</TD>
    <TD width="1%" align=left nowrap >&nbsp;</TD>
    <TD width="10%" align=right nowrap><B>Other </B></TD>
    <TD width="2%" align=left nowrap >&nbsp;</TD>
    <TD width="1%" align=left nowrap >&nbsp;</TD>
    <TD width="10%" align=right nowrap><B>Total </B></TD>
  <TD align=left width="2%" >&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD width="5%" >&nbsp;</TD>
    <TD align=left>&nbsp; </TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD width="10%" align=left nowrap>&nbsp; </TD>
    <TD width="2%" align=left nowrap >&nbsp;</TD>
    <TD width="1%" align=left nowrap >&nbsp;</TD>
    <TD width="10%" align=right nowrap><B>Development </B></TD>
    <TD width="2%" align=left nowrap >&nbsp;</TD>
    <TD width="1%" align=left nowrap >&nbsp;</TD>
    <TD width="10%" align=right nowrap><B>reconciling </B></TD>
    <TD width="2%" align=left nowrap >&nbsp;</TD>
    <TD width="1%" align=left nowrap >&nbsp;</TD>
    <TD width="10%" align=left nowrap>&nbsp; </TD>
  <TD align=left width="2%" >&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD width="5%" >&nbsp;</TD>
    <TD align=left><B>Nine months ended September 30, 2010 </B></TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD width="10%" align=left nowrap>&nbsp; </TD>
    <TD width="2%" align=left nowrap >&nbsp;</TD>
    <TD width="1%" align=left nowrap >&nbsp;</TD>
    <TD width="10%" align=right nowrap><B>Properties </B></TD>
    <TD width="2%" align=left nowrap >&nbsp;</TD>
    <TD width="1%" align=left nowrap >&nbsp;</TD>
    <TD width="10%" align=right nowrap><B>items </B><B><SUP>(i) </SUP></B></TD>
    <TD width="2%" align=left nowrap >&nbsp;</TD>
    <TD width="1%" align=left nowrap >&nbsp;</TD>
    <TD width="10%" align=left nowrap>&nbsp; </TD>
  <TD align=left width="2%" >&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD width="5%" >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>&nbsp; </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
    ><B></B></TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right
      width="10%"><B>$&nbsp;</B></TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="2%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
    ><B></B></TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right
      width="10%"><B>$&nbsp;</B></TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="2%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
    ><B></B></TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right
      width="10%"><B>$&nbsp;</B></TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="2%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
    ><B></B></TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right
      width="10%"><B>$&nbsp;</B></TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="2%"
    >&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD width="5%" >&nbsp;</TD>
    <TD align=left bgColor=#e6efff>Revenue from external customers </TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="10%" bgColor=#e6efff>67,179 </TD>
    <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="10%" bgColor=#e6efff>- </TD>
    <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="10%" bgColor=#e6efff>- </TD>
    <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="10%" bgColor=#e6efff>67,179 </TD>
    <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD></TR>
  <TR>
    <TD width="5%" >&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>
    <TD width="1%" >&nbsp;</TD>
    <TD width="10%">&nbsp; </TD>
    <TD width="2%" >&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD width="5%" >&nbsp;</TD>
    <TD align=left bgColor=#e6efff>Cost of inventory and export duties </TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="10%" bgColor=#e6efff>(61,729</TD>
    <TD align=left width="2%"  bgColor=#e6efff>) </TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="10%" bgColor=#e6efff>- </TD>
    <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="10%" bgColor=#e6efff>- </TD>
    <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="10%" bgColor=#e6efff>(61,729</TD>
    <TD align=left width="2%"  bgColor=#e6efff>) </TD></TR>
  <TR vAlign=top>
    <TD width="5%" >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>Depletion,
      depreciation and amortization </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right
      width="10%">(16,291</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="2%"
    >) </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right width="10%">- </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="2%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right width="10%">- </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="2%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right
      width="10%">(16,291</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="2%"
    >) </TD></TR>
  <TR vAlign=top>
    <TD width="5%" >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left
      bgColor=#e6efff>Cost of sales </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
     bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right width="10%"
    bgColor=#e6efff>(78,020</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="2%"
     bgColor=#e6efff>) </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
     bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right width="10%"
    bgColor=#e6efff>- </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="2%"
     bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
     bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right width="10%"
    bgColor=#e6efff>- </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="2%"
     bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
     bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right width="10%"
    bgColor=#e6efff>(78,020</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="2%"
     bgColor=#e6efff>) </TD></TR>
  <TR>
    <TD width="5%" >&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>
    <TD width="1%" >&nbsp;</TD>
    <TD width="10%">&nbsp; </TD>
    <TD width="2%" >&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD width="5%" >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=left
      bgColor=#e6efff>Loss from mine operations </TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=left width="1%"
     bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=right width="10%"
    bgColor=#e6efff>(10,841</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=left width="2%"
     bgColor=#e6efff>) </TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=left width="1%"
     bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=right width="10%"
    bgColor=#e6efff>- </TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=left width="2%"
     bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=left width="1%"
     bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=right width="10%"
    bgColor=#e6efff>- </TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=left width="2%"
     bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=left width="1%"
     bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=right width="10%"
    bgColor=#e6efff>(10,841</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=left width="2%"
     bgColor=#e6efff>) </TD></TR>
  <TR>
    <TD width="5%" >&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>
    <TD width="1%" >&nbsp;</TD>
    <TD width="10%">&nbsp; </TD>
    <TD width="2%" >&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD width="5%" >&nbsp;</TD>
    <TD align=left bgColor=#e6efff>Operating loss </TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="10%" bgColor=#e6efff>(10,841</TD>
    <TD align=left width="2%"  bgColor=#e6efff>) </TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="10%" bgColor=#e6efff>(297</TD>
    <TD align=left width="2%"  bgColor=#e6efff>) </TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="10%" bgColor=#e6efff>(19,769</TD>
    <TD align=left width="2%"  bgColor=#e6efff>) </TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="10%" bgColor=#e6efff>(30,907</TD>
    <TD align=left width="2%"  bgColor=#e6efff>) </TD></TR>
  <TR vAlign=top>
    <TD width="5%" >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>Income (loss)
      before income tax</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right
      width="10%">(18,317</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="2%"
    >) </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right
    width="10%">(451</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="2%"
    >) </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right
    width="10%">(4,612</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="2%"
    >) </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right
      width="10%">(23,380</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="2%"
    >) </TD></TR>
  <TR>
    <TD width="5%" >&nbsp;</TD>
    <TD bgColor=#e6efff>&nbsp; </TD>
    <TD width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD width="10%" bgColor=#e6efff>&nbsp; </TD>
    <TD width="2%"  bgColor=#e6efff>&nbsp;</TD>
    <TD width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD width="10%" bgColor=#e6efff>&nbsp; </TD>
    <TD width="2%"  bgColor=#e6efff>&nbsp;</TD>
    <TD width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD width="10%" bgColor=#e6efff>&nbsp; </TD>
    <TD width="2%"  bgColor=#e6efff>&nbsp;</TD>
    <TD width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD width="10%" bgColor=#e6efff>&nbsp; </TD>
    <TD width="2%"  bgColor=#e6efff>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD width="5%" >&nbsp;</TD>
    <TD align=left>Interest income earned and other finance income </TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=right width="10%">- </TD>
    <TD align=left width="2%" >&nbsp;</TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=right width="10%">- </TD>
    <TD align=left width="2%" >&nbsp;</TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=right width="10%">1,030 </TD>
    <TD align=left width="2%" >&nbsp;</TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=right width="10%">1,030 </TD>
    <TD align=left width="2%" >&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD width="5%" >&nbsp;</TD>
    <TD align=left bgColor=#e6efff>Interest expense and other finance costs
</TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="10%" bgColor=#e6efff>(858</TD>
    <TD align=left width="2%"  bgColor=#e6efff>) </TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="10%" bgColor=#e6efff>(162</TD>
    <TD align=left width="2%"  bgColor=#e6efff>) </TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="10%" bgColor=#e6efff>(11,021</TD>
    <TD align=left width="2%"  bgColor=#e6efff>) </TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="10%" bgColor=#e6efff>(12,041</TD>
    <TD align=left width="2%"  bgColor=#e6efff>) </TD></TR>
  <TR vAlign=top>
    <TD width="5%" >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>Income tax
      recovery (expense) </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right width="10%">- </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="2%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right width="10%">758
    </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="2%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right
    width="10%">(547</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="2%"
    >) </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right width="10%">211
    </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="2%"
    >&nbsp;</TD></TR></TABLE><BR>
<TABLE
style="BORDER-COLOR: black; FONT-SIZE: 10pt; BORDER-COLLAPSE: collapse; "
cellSpacing=0 cellPadding=0 width="100%" border=0 BCLLIST>

  <TR>
    <TD width="5%"  >&nbsp;</TD>
    <TD vAlign=top width="5%"><SUP>(i) </SUP></TD>
    <TD>
      <P align=justify>Other reconciling items refer to items that are not
      reported as part of segment performance as they are managed on a group
      basis.</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%"><SUP>(ii) </SUP></TD>
    <TD>
      <P align=justify>Includes the equity accounted investment in
    Pretium.</P></TD></TR></TABLE>
<P align=right>20 | P a g e</P>
<HR style="PAGE-BREAK-AFTER: always" align=center width="100%" color=black
noShade SIZE=5>
<!--$$/page=--><A name=page_21></A><BR>
<TABLE
style="BORDER-COLOR: black; FONT-SIZE: 10pt; BORDER-COLLAPSE: collapse; "
cellSpacing=0 cellPadding=0 width="100%" border=0>

  <TR vAlign=top>
    <TD align=left><B>Silver Standard Resources Inc.</B> </TD></TR>
  <TR vAlign=top>
    <TD align=left>Notes to Consolidated Interim Financial Statements </TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>For the three and
      nine months ended September 30, 2011 </TD></TR>
  <TR vAlign=top>
    <TD align=left>(tabular amounts expressed in thousands of United States
      dollars unless otherwise stated - unaudited) </TD></TR></TABLE><BR>
<TABLE
style="BORDER-COLOR: black; FONT-SIZE: 10pt; BORDER-COLLAPSE: collapse; "
cellSpacing=0 cellPadding=0 width="100%" border=0 BCLLIST>

  <TR>
    <TD vAlign=top width="5%"><B>14.</B> </TD>
    <TD>
      <P align=justify><B>OPERATING SEGMENTS
(Cont&#146;d)</B></P></TD></TR></TABLE>
<P style="MARGIN-LEFT: 5%" align=justify><B>Segment revenue by product</B></P>
<TABLE
style="BORDER-COLOR: black; FONT-SIZE: 10pt; BORDER-COLLAPSE: collapse; "
cellSpacing=0 cellPadding=0 width="100%" border=0>

  <TR vAlign=top>
    <TD width="5%"  >&nbsp;</TD>
    <TD align=left nowrap>&nbsp; </TD>
    <TD width="1%" align=left nowrap >&nbsp;</TD>
    <TD width="12%" align=right nowrap><B>September 30, 2011</B> </TD>
    <TD width="2%" align=left nowrap >&nbsp;</TD>
    <TD width="1%" align=left nowrap >&nbsp;</TD>
    <TD width="12%" align=right nowrap><B>September 30, 2010</B> </TD>
  <TD align=left width="2%" >&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD width="5%" >&nbsp;</TD>
    <TD align=left nowrap>&nbsp; </TD>
    <TD width="1%" align=left nowrap style="BORDER-BOTTOM: #000000 1px solid"
    >&nbsp;</TD>
    <TD
      width="12%" align=right nowrap style="BORDER-BOTTOM: #000000 1px solid"><B>%</B> </TD>
    <TD width="2%" align=left nowrap style="BORDER-BOTTOM: #000000 1px solid"
    >&nbsp;</TD>
    <TD width="1%" align=left nowrap style="BORDER-BOTTOM: #000000 1px solid"
    >&nbsp;</TD>
    <TD
      width="12%" align=right nowrap style="BORDER-BOTTOM: #000000 1px solid"><B>%</B> </TD>
  <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="2%"
    >&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD width="5%" >&nbsp;</TD>
    <TD align=left bgColor=#e6efff>Silver </TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="12%" bgColor=#e6efff><B>94</B> </TD>
    <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="12%" bgColor=#e6efff>100 </TD>
    <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD width="5%" >&nbsp;</TD>
    <TD align=left>Zinc </TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=right width="12%"><B>6</B> </TD>
    <TD align=left width="2%" >&nbsp;</TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=right width="12%">- </TD>
    <TD align=left width="2%" >&nbsp;</TD></TR></TABLE>
<P style="MARGIN-LEFT: 5%" align=justify><B>Segment revenue by location of
customer</B></P>
<P style="MARGIN-LEFT: 5%" align=justify>100% of revenues were sold to a single
customer which is based in Switzerland, and is the customer of the Pirquitas
mine segment.</P>
<P style="MARGIN-LEFT: 5%" align=justify><B>Non-current assets by
location</B></P>
<TABLE
style="BORDER-COLOR: black; FONT-SIZE: 10pt; BORDER-COLLAPSE: collapse; "
cellSpacing=0 cellPadding=0 width="100%" border=0>

  <TR vAlign=top>
    <TD width="5%"  >&nbsp;</TD>
    <TD align=left>&nbsp; </TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD width="12%" align=right nowrap><B>September 30, 2011</B> </TD>
    <TD width="2%" align=left nowrap >&nbsp;</TD>
    <TD width="1%" align=left nowrap >&nbsp;</TD>
    <TD width="12%" align=right nowrap><B>December 31, 2010</B> </TD>
  <TD align=left width="2%" >&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD width="5%" >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>&nbsp; </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
    ></TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right
      width="12%"><STRONG>$</STRONG>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="2%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
    ></TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right
      width="12%"><STRONG>$</STRONG>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="2%"
    >&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD width="5%" >&nbsp;</TD>
    <TD align=left bgColor=#e6efff>Canada </TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="12%" bgColor=#e6efff><B>138,395</B> </TD>
    <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="12%" bgColor=#e6efff>235,563 </TD>
    <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD width="5%" >&nbsp;</TD>
    <TD align=left>Argentina </TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=right width="12%"><B>430,352</B> </TD>
    <TD align=left width="2%" >&nbsp;</TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=right width="12%">397,447 </TD>
    <TD align=left width="2%" >&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD width="5%" >&nbsp;</TD>
    <TD align=left bgColor=#e6efff>Mexico </TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="12%" bgColor=#e6efff><B>104,195</B> </TD>
    <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="12%" bgColor=#e6efff>89,540 </TD>
    <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD width="5%" >&nbsp;</TD>
    <TD align=left>Peru </TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=right width="12%"><B>48,620</B> </TD>
    <TD align=left width="2%" >&nbsp;</TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=right width="12%">43,456 </TD>
    <TD align=left width="2%" >&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD width="5%" >&nbsp;</TD>
    <TD align=left bgColor=#e6efff>United States </TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="12%" bgColor=#e6efff><B>10,717</B> </TD>
    <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="12%" bgColor=#e6efff>10,419 </TD>
    <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD width="5%" >&nbsp;</TD>
    <TD align=left>Australia </TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=right width="12%"><B>-</B> </TD>
    <TD align=left width="2%" >&nbsp;</TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=right width="12%">19,970 </TD>
    <TD align=left width="2%" >&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD width="5%" >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left
      bgColor=#e6efff>Chile </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
     bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right width="12%"
    bgColor=#e6efff><B>8,836</B> </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="2%"
     bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
     bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right width="12%"
    bgColor=#e6efff>9,541 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="2%"
     bgColor=#e6efff>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD width="5%" >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=left>Total </TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=left width="1%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=right
      width="12%"><B>741,115</B> </TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=left width="2%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=left width="1%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=right
      width="12%">805,936 </TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=left width="2%"
    >&nbsp;</TD></TR></TABLE><BR>
<TABLE
style="BORDER-COLOR: black; FONT-SIZE: 10pt; BORDER-COLLAPSE: collapse; "
cellSpacing=0 cellPadding=0 width="100%" border=0 BCLLIST>

  <TR>
    <TD vAlign=top width="5%"><B>15.</B> </TD>
    <TD>
      <P align=justify><B>SUPPLEMENTAL CASH FLOW
  INFORMATION</B></P></TD></TR></TABLE>
<P style="MARGIN-LEFT: 5%" align=justify>During the three and nine months ended
September 30, 2011 and 2010 the Company made the following cash payments for
interest and taxes:</P>
<TABLE width="100%" border=0 cellPadding=0
cellSpacing=0
style="BORDER-COLOR: black; FONT-SIZE: 10pt; BORDER-COLLAPSE: collapse; ">

  <TR vAlign=top>
    <TD  >&nbsp;</TD>
    <TD align=left>&nbsp; </TD>
    <TD align=left >&nbsp;</TD>
    <TD colSpan=4 align=right nowrap><B>Three Months Ended September
      30</B> </TD>
    <TD align=left nowrap >&nbsp;</TD>
    <TD align=left nowrap >&nbsp;</TD>
    <TD colSpan=4 align=right nowrap><B>Nine Months Ended September
      30</B> </TD>
  <TD align=left >&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD width="5%" >&nbsp;</TD>
    <TD align=left>&nbsp; </TD>
    <TD width="1%" align=left >&nbsp;</TD>
    <TD align=right><B>2011</B> </TD>
    <TD width="2%" align=left >&nbsp;</TD>
    <TD width="1%" align=left >&nbsp;</TD>
    <TD align=right><B>2010</B> </TD>
    <TD width="2%" align=left >&nbsp;</TD>
    <TD width="1%" align=left >&nbsp;</TD>
    <TD align=right><B>2011</B> </TD>
    <TD width="2%" align=left >&nbsp;</TD>
    <TD width="1%" align=left >&nbsp;</TD>
    <TD align=right><B>2010</B> </TD>
  <TD width="2%" align=left >&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" 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
    ></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 vAlign=top>
    <TD >&nbsp;</TD>
    <TD width="40%" align=left bgColor=#e6efff>Interest paid </TD>
    <TD align=left  bgColor=#e6efff>&nbsp;</TD>
    <TD align=right bgColor=#e6efff><B>3,105</B> </TD>
    <TD align=left  bgColor=#e6efff>&nbsp;</TD>
    <TD align=left  bgColor=#e6efff>&nbsp;</TD>
    <TD align=right bgColor=#e6efff>3,105 </TD>
    <TD align=left  bgColor=#e6efff>&nbsp;</TD>
    <TD align=left  bgColor=#e6efff>&nbsp;</TD>
    <TD align=right bgColor=#e6efff><B>6,210</B> </TD>
    <TD align=left  bgColor=#e6efff>&nbsp;</TD>
    <TD align=left  bgColor=#e6efff>&nbsp;</TD>
    <TD align=right bgColor=#e6efff>6,210 </TD>
  <TD align=left  bgColor=#e6efff>&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>Taxes paid </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><B>1,510</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>- </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><B>14,195</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>- </TD>
  <TD style="BORDER-BOTTOM: #000000 1px solid" align=left
    >&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=left
      bgColor=#e6efff>&nbsp; </TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=left
     bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=right
    bgColor=#e6efff><B>4,615</B> </TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=left
     bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=left
     bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=right
    bgColor=#e6efff>3,105 </TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=left
     bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=left
     bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=right
    bgColor=#e6efff><B>20,405</B> </TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=left
     bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=left
     bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=right
    bgColor=#e6efff>6,210 </TD>
  <TD style="BORDER-BOTTOM: #000000 2px solid" align=left
     bgColor=#e6efff>&nbsp;</TD>
  </TR></TABLE><BR>
<TABLE
style="BORDER-COLOR: black; FONT-SIZE: 10pt; BORDER-COLLAPSE: collapse; "
cellSpacing=0 cellPadding=0 width="100%" border=0 BCLLIST>

  <TR>
    <TD vAlign=top width="5%"><B>16.</B> </TD>
    <TD>
      <P align=justify><B>RELATED PARTY TRANSACTIONS</B></P></TD></TR></TABLE>
<P style="MARGIN-LEFT: 5%" align=justify>During the period ended September 30,
2011, the Company recorded administrative, technical services and expense
reimbursements of $179,000 (December 31, 2010 - $19,000) from companies related
by common directors or officers including our equity accounted investee. At
September 30, 2011, trade and other receivables include $257,000 (December 31, 2010 - $2,000)
and trade and other payables include $329,000 (December 31, 2010 - $nil) with
these related parties. Any amounts due from and payable to related parties are
non-interest bearing and without specific terms of repayment. Any transactions
for expense reimbursement with related parties are under normal business
terms.</P>
<P align=right>21 | P a g e</P>
<HR style="PAGE-BREAK-AFTER: always" align=center width="100%" color=black
noShade SIZE=5>
<!--$$/page=--><A name=page_22></A><BR>
<TABLE
style="BORDER-COLOR: black; FONT-SIZE: 10pt; BORDER-COLLAPSE: collapse; "
cellSpacing=0 cellPadding=0 width="100%" border=0>

  <TR vAlign=top>
    <TD align=left><B>Silver Standard Resources Inc.</B> </TD></TR>
  <TR vAlign=top>
    <TD align=left>Notes to Consolidated Interim Financial Statements </TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>For the three and
      nine months ended September 30, 2011 </TD></TR>
  <TR vAlign=top>
    <TD align=left>(tabular amounts expressed in thousands of United States
      dollars unless otherwise stated - unaudited) </TD></TR></TABLE><BR>
<TABLE
style="BORDER-COLOR: black; FONT-SIZE: 10pt; BORDER-COLLAPSE: collapse; "
cellSpacing=0 cellPadding=0 width="100%" border=0 BCLLIST>

  <TR>
    <TD vAlign=top width="5%"><B>17.</B> </TD>
    <TD>
      <P align=justify><B>TRANSITION TO INTERNATIONAL FINANCIAL REPORTING
      STANDARDS</B></P></TD></TR></TABLE>
<P style="MARGIN-LEFT: 5%" align=justify>The accounting policies set out in
these interim consolidated financial statements have been applied for the three
and nine months ended September 30, 2011 and 2010.</P>
<P style="MARGIN-LEFT: 5%" align=justify>The Company&#146;s transition from Canadian
GAAP to IFRS was on January 1, 2010 and the effect of this adoption on the
Company&#146;s opening IFRS balance sheet as at January 1, 2010, statement of
financial position as at December 31, 2010 and income statement for the period
ended December 31, 2010 is included in the notes to the unaudited interim
financial statements for the three months ended March 31, 2011. The impact of
the IFRS adoption on the previously reported Company&#146;s shareholders&#146; equity
position as at September 30, 2010 and comprehensive loss for the three and nine
months ended September 30, 2010 is set out in the following tables and
accompanying notes;</P>
<TABLE
style="BORDER-COLOR: black; FONT-SIZE: 10pt; BORDER-COLLAPSE: collapse; "
cellSpacing=0 cellPadding=0 width="100%" border=0 BCLLIST>

  <TR>
    <TD width="5%"  >&nbsp;</TD>
    <TD vAlign=top width="5%"><B>a)</B> </TD>
    <TD>
      <P align=justify><B>Reconciliation of shareholders&#146; equity as at September
      30, 2010:</B></P></TD></TR></TABLE><BR>
<TABLE
style="BORDER-COLOR: black; FONT-SIZE: 10pt; BORDER-COLLAPSE: collapse; "
cellSpacing=0 cellPadding=0 width="100%" border=0>

  <TR vAlign=top>
    <TD width="5%"  >&nbsp;</TD>
    <TD align=left>&nbsp; </TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=left width="12%">&nbsp; </TD>
    <TD align=left width="2%" >&nbsp;</TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD width="12%" align=right nowrap><B>September 30</B> </TD>
  <TD align=left width="2%" >&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD width="5%" >&nbsp;</TD>
    <TD align=left>&nbsp; </TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=left width="12%">&nbsp; </TD>
    <TD align=left width="2%" >&nbsp;</TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD width="12%" align=right nowrap><B>2010</B> </TD>
  <TD align=left width="2%" >&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD width="5%" >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>&nbsp; </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="12%">&nbsp;
    </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="2%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
    ></TD>
    <TD
      width="12%" align=right nowrap style="BORDER-BOTTOM: #000000 1px solid"><STRONG>$</STRONG>&nbsp;</TD>
  <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="2%"
    >&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD width="5%" >&nbsp;</TD>
    <TD align=left bgColor=#e6efff>Total shareholders' equity reported under
      Canadian GAAP </TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="12%" bgColor=#e6efff>&nbsp; </TD>
    <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="12%" bgColor=#e6efff>624,460 </TD>
    <TD align=left width="2%"  bgColor=#e6efff>&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 align=left bgColor=#e6efff>Increase (decrease) net of tax in respect
      of: </TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="12%" bgColor=#e6efff>&nbsp; </TD>
    <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="12%" bgColor=#e6efff>&nbsp; </TD>
    <TD align=left width="2%"  bgColor=#e6efff>&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 align=left bgColor=#e6efff>Valuation of Pirquitas mine </TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="12%" bgColor=#e6efff>(i) </TD>
    <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="12%" bgColor=#e6efff>(80,868</TD>
    <TD align=left width="2%"  bgColor=#e6efff>) </TD></TR>
  <TR vAlign=top>
    <TD width="5%" >&nbsp;</TD>
    <TD align=left>Share-based compensation </TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=right width="12%">(iii) </TD>
    <TD align=left width="2%" >&nbsp;</TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=right width="12%">(52</TD>
    <TD align=left width="2%" >) </TD></TR>
  <TR vAlign=top>
    <TD width="5%" >&nbsp;</TD>
    <TD align=left bgColor=#e6efff>Functional currency </TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="12%" bgColor=#e6efff>(iv) </TD>
    <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="12%" bgColor=#e6efff>6,667 </TD>
    <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD width="5%" >&nbsp;</TD>
    <TD align=left>Convertible notes </TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=right width="12%">(v) </TD>
    <TD align=left width="2%" >&nbsp;</TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=right width="12%">(7,945</TD>
    <TD align=left width="2%" >) </TD></TR>
  <TR vAlign=top>
    <TD width="5%" >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left
      bgColor=#e6efff>Deferred tax liabilities </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
     bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right width="12%"
    bgColor=#e6efff>(vi) </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="2%"
     bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
     bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right width="12%"
    bgColor=#e6efff>(6,721</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="2%"
     bgColor=#e6efff>) </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 style="BORDER-BOTTOM: #000000 2px solid" align=left
      bgColor=#e6efff>Total shareholders' equity reported under IFRS </TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=left width="1%"
     bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=left width="12%"
    bgColor=#e6efff>&nbsp; </TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=left width="2%"
     bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=left width="1%"
     bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=right width="12%"
    bgColor=#e6efff>535,541 </TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=left width="2%"
     bgColor=#e6efff>&nbsp;</TD></TR></TABLE><BR>
<TABLE
style="BORDER-COLOR: black; FONT-SIZE: 10pt; BORDER-COLLAPSE: collapse; "
cellSpacing=0 cellPadding=0 width="100%" border=0 BCLLIST>

  <TR>
    <TD width="5%"  >&nbsp;</TD>
    <TD vAlign=top width="5%"><B>b)</B> </TD>
    <TD>
      <P align=justify><B>Reconciliation of comprehensive income (loss) for the
      three and nine months ended September 30,
2010:</B></P></TD></TR></TABLE><BR>
<TABLE
style="BORDER-COLOR: black; FONT-SIZE: 10pt; BORDER-COLLAPSE: collapse; "
cellSpacing=0 cellPadding=0 width="100%" border=0>

  <TR vAlign=top>
    <TD width="5%"  >&nbsp;</TD>
    <TD align=left>&nbsp; </TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=left width="10%">&nbsp; </TD>
    <TD align=left width="2%" >&nbsp;</TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD width="10%" align=right nowrap><B>3 months ended</B> </TD>
    <TD width="2%" align=left nowrap >&nbsp;</TD>
    <TD width="1%" align=left nowrap >&nbsp;</TD>
    <TD width="10%" align=right nowrap><B>9 months ended</B> </TD>
  <TD align=left width="2%" >&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD width="5%" >&nbsp;</TD>
    <TD align=left>&nbsp; </TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=left width="10%">&nbsp; </TD>
    <TD align=left width="2%" >&nbsp;</TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD width="10%" align=right nowrap><B>September 30</B> </TD>
    <TD width="2%" align=left nowrap >&nbsp;</TD>
    <TD width="1%" align=left nowrap >&nbsp;</TD>
    <TD width="10%" align=right nowrap><B>September 30</B> </TD>
  <TD align=left width="2%" >&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD width="5%" >&nbsp;</TD>
    <TD align=left>&nbsp; </TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=left width="10%">&nbsp; </TD>
    <TD align=left width="2%" >&nbsp;</TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=right width="10%"><B>2010</B> </TD>
    <TD align=left width="2%" >&nbsp;</TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=right width="10%"><B>2010</B> </TD>
    <TD align=left width="2%" >&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD width="5%" >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>&nbsp; </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="10%">&nbsp;
    </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="2%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
    ><B></B></TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right
      width="10%"><STRONG>$</STRONG>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="2%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
    ><B></B></TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right
      width="10%"><STRONG>$</STRONG>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="2%"
    >&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD width="5%" >&nbsp;</TD>
    <TD align=left bgColor=#e6efff>Total comprehensive loss as reported under
      Canadian GAAP </TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="10%" bgColor=#e6efff>&nbsp; </TD>
    <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="10%" bgColor=#e6efff>(2,722</TD>
    <TD align=left width="2%"  bgColor=#e6efff>) </TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="10%" bgColor=#e6efff>(28,932</TD>
    <TD align=left width="2%"  bgColor=#e6efff>) </TD></TR>
  <TR>
    <TD width="5%" >&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="5%" >&nbsp;</TD>
    <TD align=left bgColor=#e6efff>Increase (decrease) net of tax in respect
      of: </TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="10%" bgColor=#e6efff>&nbsp; </TD>
    <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="10%" bgColor=#e6efff>&nbsp; </TD>
    <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="10%" bgColor=#e6efff>&nbsp; </TD>
    <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD width="5%" >&nbsp;</TD>
    <TD align=left>Valuation of Pirquitas mine </TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=right width="10%">(i) </TD>
    <TD align=left width="2%" >&nbsp;</TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=right width="10%">1,040 </TD>
    <TD align=left width="2%" >&nbsp;</TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=right width="10%">3,150 </TD>
    <TD align=left width="2%" >&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD width="5%" >&nbsp;</TD>
    <TD align=left bgColor=#e6efff>Share-based compensation </TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="10%" bgColor=#e6efff>(iii) </TD>
    <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="10%" bgColor=#e6efff>238 </TD>
    <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="10%" bgColor=#e6efff>824 </TD>
    <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD width="5%" >&nbsp;</TD>
    <TD align=left>Functional currency </TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=right width="10%">(iv) </TD>
    <TD align=left width="2%" >&nbsp;</TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=right width="10%">2,973 </TD>
    <TD align=left width="2%" >&nbsp;</TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=right width="10%">1,634 </TD>
    <TD align=left width="2%" >&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD width="5%" >&nbsp;</TD>
    <TD align=left bgColor=#e6efff>Convertible notes </TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="10%" bgColor=#e6efff>(v) </TD>
    <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="10%" bgColor=#e6efff>(2,892</TD>
    <TD align=left width="2%"  bgColor=#e6efff>) </TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="10%" bgColor=#e6efff>9,140 </TD>
    <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD width="5%" >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>Deferred tax
      liabilities </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right width="10%">(vi)
    </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="2%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right width="10%">1,300
    </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="2%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right
    width="10%">(5,520</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="2%"
    >) </TD></TR>
  <TR>
    <TD width="5%" >&nbsp;</TD>
    <TD bgColor=#e6efff>&nbsp; </TD>
    <TD width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD width="10%" bgColor=#e6efff>&nbsp; </TD>
    <TD width="2%"  bgColor=#e6efff>&nbsp;</TD>
    <TD width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD width="10%" bgColor=#e6efff>&nbsp; </TD>
    <TD width="2%"  bgColor=#e6efff>&nbsp;</TD>
    <TD width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD width="10%" bgColor=#e6efff>&nbsp; </TD>
    <TD width="2%"  bgColor=#e6efff>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD width="5%" >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=left>Total
      comprehensive loss as reported under IFRS </TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=left width="1%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=left width="10%">&nbsp;
    </TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=left width="2%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=left width="1%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=right
width="10%">(63</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=left width="2%"
    >) </TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=left width="1%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=right
      width="10%">(19,704</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=left width="2%"
    >) </TD></TR></TABLE>
<P align=right>22 | P a g e</P>
<HR style="PAGE-BREAK-AFTER: always" align=center width="100%" color=black
noShade SIZE=5>
<!--$$/page=--><A name=page_23></A><BR>
<TABLE
style="BORDER-COLOR: black; FONT-SIZE: 10pt; BORDER-COLLAPSE: collapse; "
cellSpacing=0 cellPadding=0 width="100%" border=0>

  <TR vAlign=top>
    <TD align=left><B>Silver Standard Resources Inc.</B> </TD></TR>
  <TR vAlign=top>
    <TD align=left>Notes to Consolidated Interim Financial Statements </TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>For the three and
      nine months ended September 30, 2011 </TD></TR>
  <TR vAlign=top>
    <TD align=left>(tabular amounts expressed in thousands of United States
      dollars unless otherwise stated - unaudited) </TD></TR></TABLE><BR>
<TABLE
style="BORDER-COLOR: black; FONT-SIZE: 10pt; BORDER-COLLAPSE: collapse; "
cellSpacing=0 cellPadding=0 width="100%" border=0 BCLLIST>

  <TR>
    <TD vAlign=top width="5%"><B>17.</B> </TD>
    <TD>
      <P align=justify><B>TRANSITION TO INTERNATIONAL FINANCIAL REPORTING
      STANDARDS (Cont&#146;d)</B></P></TD></TR></TABLE><BR>
<TABLE
style="BORDER-COLOR: black; FONT-SIZE: 10pt; BORDER-COLLAPSE: collapse; "
cellSpacing=0 cellPadding=0 width="100%" border=0 BCLLIST>

  <TR>
    <TD width="5%"  >&nbsp;</TD>
    <TD vAlign=top width="5%"><B>c)</B> </TD>
    <TD>
      <P align=justify><B>Explanations of the key differences between Canadian
      GAAP and IFRS giving rise to adjustments in the
  reconciliations</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><B>(i) Valuation of the Pirquitas mine</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 elected under IFRS 1 to deem the fair value
      of the Pirquitas mine as cost at January 1, 2010. The fair value of the
      mine was determined to be approximately US$317 million following a
      discounted cash flow analysis using a discount rate of 10%. The resulting
      difference between the carrying value under Canadian GAAP and the deemed
      cost was charged to accumulated deficit.</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 addition to the adjustment to the carrying value of
      the Pirquitas mine additional adjustments following the transition to IFRS
      were recorded. These relate to close down and restoration provisions for
      $720,000, capitalized interest $797,000 and deferred tax liabilities
      $20,262,000. The impacts of these adjustments on the carrying value of the
      Pirquitas mine at January 1, 2010 are detailed
below:</P></TD></TR></TABLE><BR>
<TABLE
style="BORDER-COLOR: black; FONT-SIZE: 8pt; BORDER-COLLAPSE: collapse; "
cellSpacing=0 cellPadding=0 width="100%" border=0>

  <TR vAlign=top>
    <TD width="10%"  >&nbsp;</TD>
    <TD align=right>&nbsp;</TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD width="8%" align=right nowrap ><STRONG>Canadian
    GAAP</STRONG>&nbsp;</TD>
    <TD align=left width="2%" >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=left width="1%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=right width="41%"
    colSpan=10><div align="center"><B>Transition to IFRS adjustment</B> </div></TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=left width="2%"
    >&nbsp;</TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=right width="8%"><B>IFRS</B> </TD>
    <TD align=left width="2%" >&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD width="10%" >&nbsp;</TD>
    <TD align=left>&nbsp; </TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD width="8%" align=left nowrap>&nbsp; </TD>
    <TD width="2%" align=left nowrap >&nbsp;</TD>
    <TD width="1%" align=left nowrap >&nbsp;</TD>
    <TD width="8%" align=right nowrap>Fair value as </TD>
    <TD width="2%" align=left nowrap >&nbsp;</TD>
    <TD width="1%" align=left nowrap >&nbsp;</TD>
    <TD width="8%" align=right nowrap>Close down and </TD>
    <TD width="2%" align=right nowrap >&nbsp;</TD>
    <TD width="1%" align=right nowrap >&nbsp;</TD>
    <TD width="8%" align=right nowrap>Capitalised </TD>
    <TD width="2%" align=left nowrap >&nbsp;</TD>
    <TD width="1%" align=left nowrap >&nbsp;</TD>
    <TD width="8%" align=left nowrap>&nbsp; </TD>
    <TD width="2%" align=left nowrap >&nbsp;</TD>
    <TD width="1%" align=left nowrap >&nbsp;</TD>
    <TD width="8%" align=left nowrap>&nbsp; </TD>
  <TD align=left width="2%" >&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD width="10%" >&nbsp;</TD>
    <TD align=left>&nbsp; </TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD width="8%" align=left nowrap>&nbsp; </TD>
    <TD width="2%" align=left nowrap >&nbsp;</TD>
    <TD width="1%" align=left nowrap >&nbsp;</TD>
    <TD width="8%" align=right nowrap>deemed cost of </TD>
    <TD width="2%" align=left nowrap >&nbsp;</TD>
    <TD width="1%" align=left nowrap >&nbsp;</TD>
    <TD width="8%" align=right nowrap>restoration</TD>
    <TD width="2%" align=right nowrap >&nbsp;</TD>
    <TD width="1%" align=right nowrap >&nbsp;</TD>
    <TD width="8%" align=right nowrap>borrowing</TD>
    <TD width="2%" align=left nowrap >&nbsp;</TD>
    <TD width="1%" align=left nowrap >&nbsp;</TD>
    <TD width="8%" align=right nowrap>Deferred </TD>
    <TD width="2%" align=left nowrap >&nbsp;</TD>
    <TD width="1%" align=left nowrap >&nbsp;</TD>
    <TD width="8%" align=left nowrap>&nbsp; </TD>
  <TD align=left width="2%" >&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD width="10%" >&nbsp;</TD>
    <TD align=right>&nbsp;</TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD width="8%" align=right nowrap ><STRONG>January 1,
    2010</STRONG>&nbsp;</TD>
    <TD width="2%" align=left nowrap >&nbsp;</TD>
    <TD width="1%" align=left nowrap >&nbsp;</TD>
    <TD width="8%" align=right nowrap>Pirquitas </TD>
    <TD width="2%" align=left nowrap >&nbsp;</TD>
    <TD width="1%" align=left nowrap >&nbsp;</TD>
    <TD width="8%" align=right nowrap> provision </TD>
    <TD width="2%" align=left nowrap >&nbsp;</TD>
    <TD width="1%" align=left nowrap >&nbsp;</TD>
    <TD width="8%" align=right nowrap> costs </TD>
    <TD width="2%" align=left nowrap >&nbsp;</TD>
    <TD width="1%" align=left nowrap >&nbsp;</TD>
    <TD width="8%" align=right nowrap>taxes </TD>
    <TD width="2%" align=left nowrap >&nbsp;</TD>
    <TD width="1%" align=left nowrap >&nbsp;</TD>
    <TD width="8%" align=right nowrap><B>January 1, 2010</B> </TD>
  <TD align=left width="2%" >&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD width="10%" >&nbsp;</TD>
    <TD align=left>&nbsp; </TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD width="8%" align=left nowrap>&nbsp; </TD>
    <TD width="2%" align=left nowrap >&nbsp;</TD>
    <TD width="1%" align=left nowrap >&nbsp;</TD>
    <TD width="8%" align=right nowrap>(i) </TD>
    <TD width="2%" align=left nowrap >&nbsp;</TD>
    <TD width="1%" align=left nowrap >&nbsp;</TD>
    <TD width="8%" align=right nowrap>(ii) </TD>
    <TD width="2%" align=left nowrap >&nbsp;</TD>
    <TD width="1%" align=left nowrap >&nbsp;</TD>
    <TD width="8%" align=right nowrap>(vi) </TD>
    <TD width="2%" align=left nowrap >&nbsp;</TD>
    <TD width="1%" align=left nowrap >&nbsp;</TD>
    <TD width="8%" align=right nowrap>(vii) </TD>
    <TD width="2%" align=left nowrap >&nbsp;</TD>
    <TD width="1%" align=left nowrap >&nbsp;</TD>
    <TD width="8%" align=left nowrap>&nbsp; </TD>
  <TD align=left width="2%" >&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" align=left width="1%"
    ><B></B></TD>
    <TD
      width="8%" align=right nowrap style="BORDER-BOTTOM: #000000 1px solid"><STRONG>$</STRONG>&nbsp;</TD>
    <TD width="2%" align=left nowrap style="BORDER-BOTTOM: #000000 1px solid"
    >&nbsp;</TD>
    <TD width="1%" align=left nowrap style="BORDER-BOTTOM: #000000 1px solid"
    ><B></B></TD>
    <TD
      width="8%" align=right nowrap style="BORDER-BOTTOM: #000000 1px solid"><STRONG>$</STRONG>&nbsp;</TD>
    <TD width="2%" align=left nowrap style="BORDER-BOTTOM: #000000 1px solid"
    >&nbsp;</TD>
    <TD width="1%" align=left nowrap style="BORDER-BOTTOM: #000000 1px solid"
    ><B></B></TD>
    <TD
      width="8%" align=right nowrap style="BORDER-BOTTOM: #000000 1px solid"><STRONG>$</STRONG>&nbsp;</TD>
    <TD width="2%" align=left nowrap style="BORDER-BOTTOM: #000000 1px solid"
    >&nbsp;</TD>
    <TD width="1%" align=left nowrap style="BORDER-BOTTOM: #000000 1px solid"
    ></TD>
    <TD
      width="8%" align=right nowrap style="BORDER-BOTTOM: #000000 1px solid"><STRONG>$</STRONG>&nbsp;</TD>
    <TD width="2%" align=left nowrap style="BORDER-BOTTOM: #000000 1px solid"
    >&nbsp;</TD>
    <TD width="1%" align=left nowrap style="BORDER-BOTTOM: #000000 1px solid"
    ></TD>
    <TD
      width="8%" align=right nowrap style="BORDER-BOTTOM: #000000 1px solid"><STRONG>$</STRONG>&nbsp;</TD>
    <TD width="2%" align=left nowrap style="BORDER-BOTTOM: #000000 1px solid"
    >&nbsp;</TD>
    <TD width="1%" align=left nowrap style="BORDER-BOTTOM: #000000 1px solid"
    ><B></B></TD>
    <TD
      width="8%" align=right nowrap style="BORDER-BOTTOM: #000000 1px solid"><STRONG>$</STRONG>&nbsp;</TD>
  <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="2%"
    >&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD width="10%" >&nbsp;</TD>
    <TD align=left bgColor=#e6efff>Producing properties </TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="8%" bgColor=#e6efff>180,018 </TD>
    <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="8%" bgColor=#e6efff>(84,018</TD>
    <TD align=left width="2%"  bgColor=#e6efff>) </TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="8%" bgColor=#e6efff>313 </TD>
    <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="8%" bgColor=#e6efff>797 </TD>
    <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="8%" bgColor=#e6efff>(20,262</TD>
    <TD align=left width="2%"  bgColor=#e6efff>) </TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="8%" bgColor=#e6efff>76,848 </TD>
    <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD width="10%" >&nbsp;</TD>
    <TD align=left>Construction in progress </TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=right width="8%">8,015 </TD>
    <TD align=left width="2%" >&nbsp;</TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=left width="8%">&nbsp; </TD>
    <TD align=left width="2%" >&nbsp;</TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=left width="8%">&nbsp; </TD>
    <TD align=left width="2%" >&nbsp;</TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=left width="8%">&nbsp; </TD>
    <TD align=left width="2%" >&nbsp;</TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=left width="8%">&nbsp; </TD>
    <TD align=left width="2%" >&nbsp;</TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=right width="8%">8,015 </TD>
    <TD align=left width="2%" >&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD width="10%" >&nbsp;</TD>
    <TD align=left bgColor=#e6efff>Mining equipment </TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="8%" bgColor=#e6efff>12,478 </TD>
    <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="8%" bgColor=#e6efff>&nbsp; </TD>
    <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="8%" bgColor=#e6efff>&nbsp; </TD>
    <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="8%" bgColor=#e6efff>&nbsp; </TD>
    <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="8%" bgColor=#e6efff>&nbsp; </TD>
    <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="8%" bgColor=#e6efff>12,478 </TD>
    <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD width="10%" >&nbsp;</TD>
    <TD align=left>Plant and equipment </TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=right width="8%">219,305 </TD>
    <TD align=left width="2%" >&nbsp;</TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=left width="8%">&nbsp; </TD>
    <TD align=left width="2%" >&nbsp;</TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=right width="8%">407 </TD>
    <TD align=left width="2%" >&nbsp;</TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=left width="8%">&nbsp; </TD>
    <TD align=left width="2%" >&nbsp;</TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=left width="8%">&nbsp; </TD>
    <TD align=left width="2%" >&nbsp;</TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=right width="8%">219,712 </TD>
    <TD align=left width="2%" >&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD width="10%" >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left
      bgColor=#e6efff>Other </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
     bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right width="8%"
    bgColor=#e6efff>222 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="2%"
     bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
     bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="8%"
    bgColor=#e6efff>&nbsp; </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="2%"
     bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
     bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="8%"
    bgColor=#e6efff>&nbsp; </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="2%"
     bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
     bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="8%"
    bgColor=#e6efff>&nbsp; </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="2%"
     bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
     bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="8%"
    bgColor=#e6efff>&nbsp; </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="2%"
     bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
     bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right width="8%"
    bgColor=#e6efff>222 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="2%"
     bgColor=#e6efff>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD width="10%" >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=left>Total </TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=left width="1%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=right
      width="8%">420,038 </TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=left width="2%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=left width="1%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=right
    width="8%">(84,018</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=left width="2%"
    >) </TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=left width="1%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=right width="8%">720
</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=left width="2%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=left width="1%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=right width="8%">797
</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=left width="2%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=left width="1%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=right
    width="8%">(20,262</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=left width="2%"
    >) </TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=left width="1%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=right
      width="8%">317,275 </TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=left width="2%"
    >&nbsp;</TD></TR></TABLE>
<P style="MARGIN-LEFT: 10%" align=justify>The lower carrying value of the
producing property balance under IFRS also impacts the periodic depletion
expense charged. Depletion is charged using the percentage of completion method
based on the tonnage of ore mined as a ratio to the total ore expected to be
mined over the life of the mine. The lower cost base of the asset has reduced
depletion for the three and nine months ended September 30, 2010; </P>
<TABLE
style="BORDER-COLOR: black; FONT-SIZE: 10pt; BORDER-COLLAPSE: collapse; "
cellSpacing=0 cellPadding=0 width="100%" border=0>

  <TR vAlign=top>
    <TD width="10%"  >&nbsp;</TD>
    <TD align=left>&nbsp; </TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD width="12%" align=right nowrap><B>Three months ended September 30</B> </TD>
    <TD width="2%" align=left nowrap >&nbsp;</TD>
    <TD width="1%" align=left nowrap >&nbsp;</TD>
    <TD width="12%" align=right nowrap><B>Nine months ended September 30</B> </TD>
  <TD align=left width="2%" >&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" align=left width="1%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right
      width="12%"><B>2010</B> </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="2%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right
      width="12%"><B>2010</B> </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="2%"
    >&nbsp;</TD></TR>
  <TR>
    <TD width="10%" >&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="10%" >&nbsp;</TD>
    <TD align=left bgColor=#e6efff>Cost of Sales </TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="12%" bgColor=#e6efff>1,040 </TD>
    <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="12%" bgColor=#e6efff>3,150 </TD>
    <TD align=left width="2%"
  bgColor=#e6efff>&nbsp;</TD></TR></TABLE>
<P align=right>23 | P a g e</P>
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noShade SIZE=5>
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<TABLE
style="BORDER-COLOR: black; FONT-SIZE: 10pt; BORDER-COLLAPSE: collapse; "
cellSpacing=0 cellPadding=0 width="100%" border=0>

  <TR vAlign=top>
    <TD align=left><B>Silver Standard Resources Inc.</B> </TD></TR>
  <TR vAlign=top>
    <TD align=left>Notes to Consolidated Interim Financial Statements </TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>For the three and
      nine months ended September 30, 2011 </TD></TR>
  <TR vAlign=top>
    <TD align=left>(tabular amounts expressed in thousands of United States
      dollars unless otherwise stated - unaudited) </TD></TR></TABLE><BR>
<TABLE
style="BORDER-COLOR: black; FONT-SIZE: 10pt; BORDER-COLLAPSE: collapse; "
cellSpacing=0 cellPadding=0 width="100%" border=0 BCLLIST>

  <TR>
    <TD vAlign=top width="5%"><B>17.</B> </TD>
    <TD>
      <P align=justify><B>TRANSITION TO INTERNATIONAL FINANCIAL REPORTING
      STANDARDS (Cont&#146;d)</B></P></TD></TR></TABLE>
<P style="MARGIN-LEFT: 10%" align=justify><B>(ii) Close down and restoration
provision</B></P>
<P style="MARGIN-LEFT: 10%" align=justify>Under Canadian GAAP asset retirement
obligations for close down and decommissioning costs are measured at the initial
date of recognition using a discounted cash flow analysis with the Company&#146;s
credit-adjusted risk free interest rate. The liability (and corresponding asset)
is only re-measured in the event of changes in the amount or timing of cash
flows required to settle the obligation. </P>
<P style="MARGIN-LEFT: 10%" align=justify>IFRS (IAS 37) requires initial
measurement of the obligation using a pre-tax discount rate that reflects the
risk associated with the liability; furthermore the liability is required to be
re-measured at each reporting date.</P>
<P style="MARGIN-LEFT: 10%" align=justify>The Company elected to use the IFRS 1
transition exemption from full retrospective adjustment that would have been
required under IFRIC 1.</P>
<P style="MARGIN-LEFT: 10%" align=justify>For the three and nine month period
ended September 30, 2010 no adjustment was recorded as it was insignificant.
</P>
<P style="MARGIN-LEFT: 10%" align=justify><B>(iii) Share-based
compensation</B></P>
<P style="MARGIN-LEFT: 10%" align=justify>The Company&#146;s accounting policy for
share based compensation under Canadian GAAP was broadly consistent with the
requirements of IFRS, however, under IFRS 2 the Company is required to make
adjustments to the compensation expense recorded for estimates of non-market
vesting conditions, such as options that are not expected to vest i.e.
forfeited. The initial estimation of non-market vesting conditions is not
mandatory under Canadian GAAP. As a result the Company&#146;s accounting policy
choice was to make adjustments only when events occurred so that non-market
vesting conditions were not met, such as when options were forfeited. The
Company elected to apply the IFRS 1 transition exemption, whereby adjustments
were only required to be made to options that had been granted after November 7,
2002 and had not vested at the date of transition to IFRS.</P>
<P style="MARGIN-LEFT: 10%" align=justify>The Company estimated the amount of
options that would not vest by using historical data, for the three and nine
months ended September 30, 2010 the impact was a reduction to stock based
compensation of $249,000 and $876,000 of which $238,000 and $824,000 was
credited to the income statement and the balance of $11,000 and $52,000 was
credited to mineral properties.</P>
<P style="MARGIN-LEFT: 10%" align=justify><B>(iv) Functional currency and
cumulative translation adjustment account</B></P>
<P style="MARGIN-LEFT: 10%" align=justify>Under Canadian GAAP the Company
determines whether a subsidiary is an integrated operation or a self-sustaining
entity which determines the method of translation into the presentation currency
of the Group. IFRS requires that an entity determine the functional currency of
each subsidiary individually, prior to consolidation into the Group&#146;s
presentation currency.</P>
<P align=right>24 | P a g e</P>
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noShade SIZE=5>
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<TABLE
style="BORDER-COLOR: black; FONT-SIZE: 10pt; BORDER-COLLAPSE: collapse; "
cellSpacing=0 cellPadding=0 width="100%" border=0>

  <TR vAlign=top>
    <TD align=left><B>Silver Standard Resources Inc.</B> </TD></TR>
  <TR vAlign=top>
    <TD align=left>Notes to Consolidated Interim Financial Statements </TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>For the three and
      nine months ended September 30, 2011 </TD></TR>
  <TR vAlign=top>
    <TD align=left>(tabular amounts expressed in thousands of United States
      dollars unless otherwise stated - unaudited) </TD></TR></TABLE><BR>
<TABLE
style="BORDER-COLOR: black; FONT-SIZE: 10pt; BORDER-COLLAPSE: collapse; "
cellSpacing=0 cellPadding=0 width="100%" border=0 BCLLIST>

  <TR>
    <TD vAlign=top width="5%"><B>17.</B> </TD>
    <TD>
      <P align=justify><B>TRANSITION TO INTERNATIONAL FINANCIAL REPORTING
      STANDARDS (Cont&#146;d)</B></P></TD></TR></TABLE>
<P style="MARGIN-LEFT: 10%" align=justify>The Company determined that certain
subsidiaries had a functional currency other than the US dollar, which under
Canadian GAAP had been classified as being integrated operations. Those
subsidiaries under Canadian GAAP were consolidated using the temporal method
(i.e. monetary assets and liabilities translated at the current rate and
non-monetary assets and liabilities at historic exchange rates with gains or
losses being charged to income), whereas under IFRS those entities with non US
dollar functional currencies are translated into US dollars using the current
rate method (whereby all assets and liabilities are translated using the
reporting date exchange rates with any gains or losses being recorded in
equity).</P>
<P style="MARGIN-LEFT: 10%" align=justify>For the three and nine month period
ended September 30, 2010 the impact was an increase in mineral properties of
$2,973,000 and $1,634,000.</P>
<P style="MARGIN-LEFT: 10%" align=justify><B>(v) Convertible notes</B></P>
<P style="MARGIN-LEFT: 10%" align=justify>The Company issued US$138 million of
convertible notes (&#147;Notes&#148;) in 2008. Under Canadian GAAP the Company accounted
for the Notes as a split instrument allocating the value of the notes between
the debt and equity components. The debt was valued using a discounted cash flow
model, with the residual balance being allocated to equity. At initial
recognition the transaction costs were allocated to the debt and equity
components pro rata. The debt portion was designated as an &#145;other liability&#146;,
those transaction costs allocated to the debt were expensed, those allocated to
equity were treated as a reduction of the value of the equity component.
Subsequently, the difference in carrying value of the debt and its final
redemption amount was recognised as accretion expense in the income statement
over the period to maturity using the effective interest rate method. </P>
<P style="MARGIN-LEFT: 10%" align=justify>There are two GAAP differences in
relation to this instrument. Firstly, under Canadian GAAP the conversion feature
is considered to be an equity instrument, but under IFRS it is considered as an
embedded derivative liability due to the fact that if the holder elects to
exercise their conversion option, the instrument can be cash-settled at the
option of the Company. Secondly, under Canadian GAAP the debt component of the
instrument was designated as an &#145;other liability&#146;, and it was similarly
designated under IFRS. However, under IFRS, transaction costs relating to an
instrument that is designated as an &#145;other liability&#146; must be netted against the
carrying value of the instrument, whereas under Canadian GAAP the Company made
an accounting policy election to expense those costs.</P>
<P style="MARGIN-LEFT: 10%" align=justify>At initial recognition under IFRS,
similar to Canadian GAAP, the fair value of the debt component and conversion
option were estimated but under IFRS the conversion option was recognised as a
derivative liability. Transaction costs incurred were allocated pro rata to the
two components, again consistent with Canadian GAAP. For IFRS the debt has been
designated as an &#145;other liability&#146;, which means that the instrument is recorded
at amortized cost, net of transaction costs. Subsequently, the accounting is the
same as Canadian GAAP whereby the instrument is accreted over an expected life
of 5 years using the effective interest method.</P>
<P style="MARGIN-LEFT: 10%" align=justify>The accretion expense each reporting
period under IFRS is greater than under Canadian GAAP due to the lower value
attributed to the debt portion upon initial recognition, due to the fact that
transaction costs are netted against the carrying value of the debt. Differences
in accretion expense have been charged to accumulated deficit at the date of
transition. </P>
<P style="MARGIN-LEFT: 10%" align=justify>Under IFRS the derivative liability is
recognised as FVTPL so all transaction costs were expensed and the instrument is
re-measured at each reporting period using a binomial tree approach.</P>
<P align=right>25 | P a g e</P>
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noShade SIZE=5>
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<TABLE
style="BORDER-COLOR: black; FONT-SIZE: 10pt; BORDER-COLLAPSE: collapse; "
cellSpacing=0 cellPadding=0 width="100%" border=0>

  <TR vAlign=top>
    <TD align=left><B>Silver Standard Resources Inc.</B> </TD></TR>
  <TR vAlign=top>
    <TD align=left>Notes to Consolidated Interim Financial Statements </TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>For the three and
      nine months ended September 30, 2011 </TD></TR>
  <TR vAlign=top>
    <TD align=left>(tabular amounts expressed in thousands of United States
      dollars unless otherwise stated - unaudited) </TD></TR></TABLE><BR>
<TABLE
style="BORDER-COLOR: black; FONT-SIZE: 10pt; BORDER-COLLAPSE: collapse; "
cellSpacing=0 cellPadding=0 width="100%" border=0 BCLLIST>

  <TR>
    <TD vAlign=top width="5%"><B>17.</B> </TD>
    <TD>
      <P align=justify><B>TRANSITION TO INTERNATIONAL FINANCIAL REPORTING
      STANDARDS (Cont&#146;d)</B></P></TD></TR></TABLE>
<P style="MARGIN-LEFT: 10%" align=justify>The following table illustrates the
differences in the income statement for the nine months ended September 30,
2010:</P>
<TABLE
style="BORDER-COLOR: black; FONT-SIZE: 10pt; BORDER-COLLAPSE: collapse; "
cellSpacing=0 cellPadding=0 width="100%" border=0>

  <TR vAlign=top>
    <TD width="10%"  >&nbsp;</TD>
    <TD align=left>&nbsp; </TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD width="12%" align=right nowrap><B>Canadian GAAP</B> </TD>
    <TD width="2%" align=left nowrap >&nbsp;</TD>
    <TD width="1%" align=left nowrap >&nbsp;</TD>
    <TD width="12%" align=right nowrap><B>IFRS</B> </TD>
  <TD align=left width="2%" >&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD width="10%" >&nbsp;</TD>
    <TD align=left>&nbsp; </TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD width="12%" align=right nowrap>Nine months ended </TD>
    <TD width="2%" align=left nowrap >&nbsp;</TD>
    <TD width="1%" align=left nowrap >&nbsp;</TD>
    <TD width="12%" align=right nowrap>Nine months ended </TD>
  <TD align=left width="2%" >&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD width="10%" >&nbsp;</TD>
    <TD align=left>&nbsp; </TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD width="12%" align=right nowrap>September 30, 2010 </TD>
    <TD width="2%" align=left nowrap >&nbsp;</TD>
    <TD width="1%" align=left nowrap >&nbsp;</TD>
    <TD width="12%" align=right nowrap>September 30, 2010 </TD>
  <TD align=left width="2%" >&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD width="10%" >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left><B>Balance sheet
      impact</B> </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
    ></TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right
      width="12%"><STRONG>$</STRONG>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="2%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
    ><B></B></TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right
      width="12%"><STRONG>$</STRONG>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="2%"
    >&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD width="10%" >&nbsp;</TD>
    <TD align=left bgColor=#e6efff><B>Income statement impact</B> </TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="12%" bgColor=#e6efff>&nbsp; </TD>
    <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="12%" bgColor=#e6efff>&nbsp; </TD>
    <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD width="10%" >&nbsp;</TD>
    <TD align=left>Interest expense </TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=right width="12%">4,645 </TD>
    <TD align=left width="2%" >&nbsp;</TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=right width="12%">4,645 </TD>
    <TD align=left width="2%" >&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD width="10%" >&nbsp;</TD>
    <TD align=left bgColor=#e6efff>Interest accretion </TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="12%" bgColor=#e6efff>5,600 </TD>
    <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="12%" bgColor=#e6efff>5,928 </TD>
    <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD width="10%" >&nbsp;</TD>
    <TD align=left>Unrealised (gain) or loss on derivative </TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=left width="12%">&nbsp; </TD>
    <TD align=left width="2%" >&nbsp;</TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=left width="12%">&nbsp; </TD>
    <TD align=left width="2%" >&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD width="10%" >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left
      bgColor=#e6efff>instruments </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
     bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right width="12%"
    bgColor=#e6efff>- </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="2%"
     bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
     bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right width="12%"
    bgColor=#e6efff>(9,645</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="2%"
     bgColor=#e6efff>) </TD></TR></TABLE>
<P style="MARGIN-LEFT: 10%" align=justify><B>(vi) Deferred income tax</B></P>
<P style="MARGIN-LEFT: 10%" align=justify>Under Canadian GAAP deferred tax
liabilities were calculated following the acquisition of various mineral
property assets. IFRS does not allow the recognition of deferred tax liabilities
for temporary differences that arise in a transaction other than a business
combination that at the time of the transaction affects neither the taxable nor
accounting profit or loss. As a result deferred tax liabilities recognized on
asset acquisitions under Canadian GAAP have been derecognized under IFRS and
credited to accumulated deficit. </P>
<P style="MARGIN-LEFT: 10%" align=justify>Non-monetary assets and liabilities of
an entity are measured in its functional currency. If an entity&#146;s taxable income
or loss is determined in a different currency, changes in exchange rate will
give rise to a temporary difference that results in a deferred tax asset or
liability under IAS 12. Effectively, the carrying value of the non-monetary
asset/liability (as measured in the functional currency based on historical
exchange rates) is translated from the functional currency to the local currency
at the current rate and compared to the tax value in the local currency. The
resulting temporary difference (measured in the local currency) is multiplied by
the appropriate tax rate to arrive at the deferred tax balance in the local
currency. This deferred tax balance is then translated into the functional
currency at the current rate and charged/credited to profit or loss. </P>
<P style="MARGIN-LEFT: 10%" align=justify>The above result is different from
Canadian GAAP which prohibits the recognition of deferred taxes for temporary
differences caused by exchange gains and losses related to foreign non-monetary
assets and liabilities that are remeasured into the functional currency using
historical exchange rates.</P>
<P style="MARGIN-LEFT: 10%" align=justify>The impact on retained earnings as a
result of these differences in the three and nine months ended September 30,
2010 was an increase of $1,300,000 and a reduction of $5,520,000 respectively.
</P>
<TABLE
style="BORDER-COLOR: black; FONT-SIZE: 10pt; BORDER-COLLAPSE: collapse; "
cellSpacing=0 cellPadding=0 width="100%" border=0 BCLLIST>

  <TR>
    <TD width="5%"  >&nbsp;</TD>
    <TD vAlign=top width="5%"><B>d)</B> </TD>
    <TD>
      <P align=justify><B>Adjustments to Statement of Cash Flows</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 transition from Canadian GAAP to IFRS had no
      significant impact on cash flows generated by the
  Company.</P></TD></TR></TABLE>
<P align=right>26 | P a g e</P>
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</HTML>

</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-99.2
<SEQUENCE>3
<FILENAME>exhibit99-2.htm
<DESCRIPTION>MANAGEMENT'S DISCUSSION AND ANALYSIS
<TEXT>
<HTML>
<HEAD>
   <TITLE>Silver Standard Resources Inc.: Exhibit 99.2 - Filed by newsfilecorp.com</TITLE>
</HEAD>
<BODY style="font-size:10pt;">
<HR noshade align="center" width=100% size=3 color="black">
<!--$$/page=--><A name=page_1></A>
<P align=center><B>SILVER STANDARD RESOURCES INC.</B></P>
<P align=justify><B>MANAGEMENT&#146;S DISCUSSION AND ANALYSIS OF THE FINANCIAL
POSITION AND RESULTS OF OPERATIONS FOR THE THREE AND NINE MONTHS ENDED SEPTEMBER
30, 2011</B></P>
<TABLE
style="BORDER-COLOR: black; FONT-SIZE: 10pt; BORDER-COLLAPSE: collapse; "
cellSpacing=0 cellPadding=0 width="100%" border=0 BCLLIST>

  <TR>
    <TD vAlign=top width="5%" bgColor=#eeeeee><a href="#page_2">1. </a></TD>
    <TD bgColor=#eeeeee>
  <P align=justify><a href="#page_2">THIRD QUARTER 2011 HIGHLIGHTS</a></P></TD></TR>
  <TR>
    <TD width="5%">&nbsp;</TD>
    <TD>&nbsp; </TD>
  </TR>
  <TR>
    <TD vAlign=top width="5%" bgColor=#eeeeee><a href="#page_3">2. </a></TD>
    <TD bgColor=#eeeeee>
      <P align=justify><a href="#page_3">OUTLOOK</a></P></TD></TR>
  <TR>
    <TD width="5%"><a href="#page_3"></a></TD>
    <TD>&nbsp; </TD>
  </TR>
  <TR>
    <TD vAlign=top width="5%" bgColor=#eeeeee><a href="#page_3">3. </a></TD>
    <TD bgColor=#eeeeee>
      <P align=justify><a href="#page_3">BUSINESS OVERVIEW</a></P></TD></TR>
  <TR>
    <TD width="5%">&nbsp;</TD>
    <TD>&nbsp; </TD>
  </TR>
  <TR>
    <TD vAlign=top width="5%" bgColor=#eeeeee><a href="#page_4">4. </a></TD>
    <TD bgColor=#eeeeee>
      <P align=justify><a href="#page_4">RESULTS OF OPERATIONS</a></P></TD></TR>
  <TR>
    <TD width="5%">&nbsp;</TD>
    <TD>&nbsp; </TD>
  </TR>
  <TR>
    <TD vAlign=top width="5%" bgColor=#eeeeee><a href="#page_10">5. </a></TD>
    <TD bgColor=#eeeeee>
      <P align=justify><a href="#page_10">REVIEW OF PROJECTS</a></P></TD></TR>
  <TR>
    <TD width="5%">&nbsp;</TD>
    <TD>&nbsp; </TD>
  </TR>
  <TR>
    <TD vAlign=top width="5%" bgColor=#eeeeee><a href="#page_12">6. </a></TD>
    <TD bgColor=#eeeeee>
      <P align=justify><a href="#page_12">SUMMARIZED FINANCIAL RESULTS</a></P></TD></TR>
  <TR>
    <TD width="5%">&nbsp;</TD>
    <TD>&nbsp; </TD>
  </TR>
  <TR>
    <TD vAlign=top width="5%" bgColor=#eeeeee><a href="#page_15">7. </a></TD>
    <TD bgColor=#eeeeee>
      <P align=justify><a href="#page_15">LIQUIDITY</a></P></TD></TR>
  <TR>
    <TD width="5%">&nbsp;</TD>
    <TD>&nbsp; </TD>
  </TR>
  <TR>
    <TD vAlign=top width="5%" bgColor=#eeeeee><a href="#page_17">8. </a></TD>
    <TD bgColor=#eeeeee>
      <P align=justify><a href="#page_17">CAPITAL RESOURCES</a></P></TD></TR>
  <TR>
    <TD width="5%"><a href="#page_17"></a></TD>
    <TD>&nbsp; </TD>
  </TR>
  <TR>
    <TD vAlign=top width="5%" bgColor=#eeeeee><a href="#page_17">9. </a></TD>
    <TD bgColor=#eeeeee>
      <P align=justify><a href="#page_17">FINANCIAL INSTRUMENTS AND RELATED RISKS</a></P></TD></TR>
  <TR>
    <TD width="5%">&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
  <TR>
    <TD vAlign=top width="5%" bgColor=#eeeeee><a href="#page_19">10. </a></TD>
    <TD bgColor=#eeeeee>
      <P align=justify><a href="#page_19">OTHER RISKS AND UNCERTAINTIES</a></P></TD></TR>
  <TR>
    <TD width="5%"><a href="#page_19"></a></TD>
    <TD>&nbsp;</TD>
  </TR>
  <TR>
    <TD vAlign=top width="5%" bgColor=#eeeeee><a href="#page_19">11. </a></TD>
    <TD bgColor=#eeeeee>
      <P align=justify><a href="#page_19">RELATED PARTY TRANSACTIONS</a></P></TD></TR>
  <TR>
    <TD width="5%">&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
  <TR>
    <TD vAlign=top width="5%" bgColor=#eeeeee><a href="#page_20">12. </a></TD>
    <TD bgColor=#eeeeee>
      <P align=justify><a href="#page_20">SIGNIFICANT INVESTMENTS ACCOUNTED FOR BY THE EQUITY
      METHOD</a></P></TD></TR>
  <TR>
    <TD width="5%"><a href="#page_20"></a></TD>
    <TD>&nbsp;</TD>
  </TR>
  <TR>
    <TD vAlign=top width="5%" bgColor=#eeeeee><a href="#page_20">13. </a></TD>
    <TD bgColor=#eeeeee>
      <P align=justify><a href="#page_20">NON-GAAP MEASURES</a></P></TD></TR>
  <TR>
    <TD width="5%">&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
  <TR>
    <TD vAlign=top width="5%" bgColor=#eeeeee><a href="#page_22">14. </a></TD>
    <TD bgColor=#eeeeee>
      <P align=justify><a href="#page_22">CRITICAL ACCOUNTING POLICIES AND ESTIMATES</a></P></TD></TR>
  <TR>
    <TD width="5%">&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
  <TR>
    <TD vAlign=top width="5%" bgColor=#eeeeee><a href="#page_25">15. </a></TD>
    <TD bgColor=#eeeeee>
      <P align=justify><a href="#page_25">FUTURE ACCOUNTING CHANGES</a></P></TD></TR>
  <TR>
    <TD width="5%">&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
  <TR>
    <TD vAlign=top width="5%" bgColor=#eeeeee><a href="#page_27">16. </a></TD>
    <TD bgColor=#eeeeee>
      <P align=justify><a href="#page_27">INTERNAL CONTROLS OVER FINANCIAL REPORTING AND DISCLOSURE
      CONTROLS AND PROCEDURES</a></P></TD></TR>
  <TR>
    <TD width="5%"><a href="#page_27"></a></TD>
    <TD>&nbsp;</TD>
  </TR>
  <TR>
    <TD vAlign=top width="5%" bgColor=#eeeeee><a href="#page_27">17. </a></TD>
    <TD bgColor=#eeeeee>
      <P align=justify><a href="#page_27">CAUTIONARY NOTE REGARDING FORWARD-LOOKING
    STATEMENTS</a></P></TD></TR></TABLE>
<BR>
<HR style="PAGE-BREAK-AFTER: always" align=center width="100%" color=black
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<!--$$/page=--><A name=page_2></A>
<P align=center><B>SILVER STANDARD RESOURCES INC.</B></P>
<P align=justify><B>MANAGEMENT&#146;S DISCUSSION AND ANALYSIS OF THE FINANCIAL
POSITION AND RESULTS OF OPERATIONS FOR THE THREE AND NINE MONTHS ENDED SEPTEMBER
30, 2011</B></P>
<P align=justify>The following Management&#146;s Discussion and Analysis (&#147;MD&amp;A&#148;)
is intended to supplement the unaudited interim consolidated financial
statements of Silver Standard Resources Inc. (&#147;Silver Standard&#148; or &#147;the
Company&#148;) for the three and nine months ended September 30, 2011, and the
related notes thereto, which have been prepared in accordance with International
Financial Reporting Standards (&#147;IFRS&#148;). The Company adopted IFRS on January 1,
2011 with a transition date of January 1, 2010. Full disclosure of the Company&#146;s
IFRS accounting policies and a reconciliation of the previously disclosed
opening balance sheet prepared in accordance with Canadian generally accepted
accounting principles (&#147;Canadian GAAP&#148;) to IFRS is set out in note 25 to the
unaudited interim consolidated financial statements for the period ended March
31, 2011. A reconciliation of previously disclosed comparative periods presented
in accordance with Canadian GAAP to IFRS is set out in note 17 to the current
interim financial statements.</P>
<P align=justify>The MD&amp;A should be read in conjunction with the audited
consolidated financial statements of the Company for the year ended December 31,
2010 prepared in accordance with Canadian GAAP, the unaudited interim
consolidated financial statements for the three months ended March 31, 2011
prepared in accordance with IFRS, the related MD&amp;As, and the most recent
Form 20-F on file with the US Securities and Exchange Commission (&#147;SEC&#148;) and
Canadian provincial securities regulatory authorities, with reference to the
reconciliations referred to above. All figures are expressed in U.S. dollars
except where otherwise indicated. This MD&amp;A has been prepared as of November
9, 2011.</P>
<P align=justify>Additional information relating to the Company, including the
annual information form, is available on SEDAR at <U><font color="#0000FF">www.sedar.com</font></U>, and on
the EDGAR section of the SEC website at <U><font color="#0000FF">www.sec.gov</font></U>. </P>
<P align=justify>This MD&amp;A contains &#147;forward-looking statements&#148; that are
subject to risk factors set out in a cautionary note contained herein.</P>
<P align=justify><B>1. THIRD QUARTER 2011 HIGHLIGHTS</B></P>
<UL style="TEXT-ALIGN: justify">
  <LI>
  <P>Net earnings of $21.8 million or $0.27 per share during the three months
  ended September 30, 2011. </P>
  <LI>
  <P>Completed the sale of the Bowdens project in Australia for $70 million recording a gain of $51.4 million.</P>
  <LI>
  <P>Closed the agreement to consolidate the Company&#146;s ownership interest in the
  high-grade gold and silver San Luis project in Peru. </P>
  <LI>
  <P>Approved $25 million to accelerate the advancement of the Pitarrilla
  project in Mexico. </P>
  <LI>
  <P>Achieved one million man hours without a loss time injury at the Pirquitas
  mine in Argentina. </P></LI></UL>
<P align=right>2</P>
<HR style="PAGE-BREAK-AFTER: always" align=center width="100%" color=black
noShade SIZE=5>
<!--$$/page=--><A name=page_3></A>
<P align=justify>Subsequent to the quarter;</P>
<UL style="TEXT-ALIGN: justify">
  <LI>
  <P>Rebuilt the ball mill gearbox with new parts to position the Pirquitas mine
  with capacity to produce between 8 and 10 million ounces of silver per annum.
  The ball mill resumed production on November 5, 2011. </P>
  <LI>
  <P>Initiated spot silver concentrate sales while actively negotiating
  long-term sales contracts. </P>
  <LI>
  <P>Completed a Pirquitas mineral resources and reserve  estimate resulting in a reduction of ounces in both categories, please refer to  section 4 for more details. </P></LI></UL>
<P align=justify><B>2. OUTLOOK</B></P>
<P align=justify>The Company revised its production guidance to produce between
7.3 and 7.6 million ounces of silver in 2011 as a result of three performance
issues with the ball mill gearbox (see news releases dated September 27, 2011
and October 24, 2011). Cost per ounce guidance is impacted by these lower
production levels and is therefore high for the third quarter and is anticipated
to remain high through the fourth quarter. The additional plant downtime in
October and November after the revised guidance was issued means achieving the
low end of this range will be a successful outcome for the remainder of the year in the Company&rsquo;s view.</P>
<P align=justify>Operating costs for the nine months ended September 30, 2011
have remained in line with guidance at approximately $8 million per month, and
cost control at the Pirquitas mine remains a key focus area. Although the cost
per ounce is currently high due to low production volumes, when full operating
capacity resumes, towards the end of 2011 and into 2012, the cost per ounce will
revert to previous guidance.</P>
<P align=justify>For the year ended December 31, 2011 average direct mining
costs are anticipated to be $13.00 per ounce of silver compared to previous
guidance of $11.00 per ounce. Including by-product credits, third-party charges
for smelting, refining, transportation, royalty and production taxes, average
total cash cost is now estimated to be $21.00 compared with our previous
guidance of $20.00 per ounce of silver. Including non-cash depreciation,
amortization, total production cost is estimated at $26.00 per ounce of silver,
compared to $24.00 per ounce previously.</P>
<P align=justify>We also expect to produce approximately 10 million pounds of
zinc in 2011, unchanged from our previous guidance.</P>
<P align=justify><I>Please note the Company changed its presentation of cash
costs per ounce during the second quarter of 2011 in line with the newly
endorsed production cost guidance provided by The Silver Institute. Please refer
to non-GAAP financial performance measures and the cautionary note regarding
forward looking statements contained in this MD&amp;A.</I></P>
<P align=justify><B>3. BUSINESS OVERVIEW</B></P>
<P align=justify>Silver Standard is engaged in the exploration, development and
production of silver dominant resource properties located in the Americas. </P>
<P align=justify>The Company&rsquo;s strategic focus is to optimize production of silver from the Pirquitas mine and to advance other principal development and exploration projects, including Pitarrilla, San Luis, Diablillos, Nazas and San Agustin. The Company has a large in-ground silver position and looks to exploit this for the benefit of the Company&rsquo;s shareholders, and certain projects also contain significant gold resources and base metals. The Company&rsquo;s future growth will be primarily driven through the development of core projects while monetizing others to support funding requirements. </P>
<P align=right>3</P>
<HR style="PAGE-BREAK-AFTER: always" align=center width="100%" color=black
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<!--$$/page=--><A name=page_4></A>
<P align=justify><B>4. RESULTS OF OPERATIONS</B></P>
<P align=justify><B>Pirquitas Mine, Argentina</B></P>
<TABLE
style="BORDER-COLOR: black; FONT-SIZE: 8pt; BORDER-COLLAPSE: collapse; "
cellSpacing=0 cellPadding=0 width="100%" border=0>

  <TR vAlign=top>
    <TD align=left>&nbsp; </TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD width="8%" align=right nowrap><B>September 30</B> </TD>
    <TD width="2%" align=left nowrap >&nbsp;</TD>
    <TD width="1%" align=left nowrap >&nbsp;</TD>
    <TD width="8%" align=right nowrap><B>June 30</B> </TD>
    <TD width="2%" align=left nowrap >&nbsp;</TD>
    <TD width="1%" align=left nowrap >&nbsp;</TD>
    <TD width="8%" align=right nowrap><B>March 31</B> </TD>
    <TD width="2%" align=left nowrap >&nbsp;</TD>
    <TD width="1%" align=left nowrap >&nbsp;</TD>
    <TD width="8%" align=right nowrap><B>December 31</B> </TD>
    <TD width="2%" align=left nowrap >&nbsp;</TD>
    <TD width="1%" align=left nowrap >&nbsp;</TD>
    <TD width="8%" align=right nowrap><B>September 30</B> </TD>
    <TD width="2%" align=left nowrap >&nbsp;</TD>
    <TD width="1%" align=left nowrap >&nbsp;</TD>
    <TD width="8%" align=right nowrap><B>June 30</B> </TD>
    <TD width="2%" align=left nowrap >&nbsp;</TD>
    <TD width="1%" align=left nowrap >&nbsp;</TD>
    <TD width="8%" align=right nowrap><B>March 31</B> </TD>
  <TD align=left width="2%" >&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left><B>Operating
      data</B> </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
    >&nbsp;</TD>
    <TD
      width="8%" align=right nowrap style="BORDER-BOTTOM: #000000 1px solid"><B>2011</B> </TD>
    <TD width="2%" align=left nowrap style="BORDER-BOTTOM: #000000 1px solid"
    >&nbsp;</TD>
    <TD width="1%" align=left nowrap style="BORDER-BOTTOM: #000000 1px solid"
    >&nbsp;</TD>
    <TD
      width="8%" align=right nowrap style="BORDER-BOTTOM: #000000 1px solid"><B>2011</B> </TD>
    <TD width="2%" align=left nowrap style="BORDER-BOTTOM: #000000 1px solid"
    >&nbsp;</TD>
    <TD width="1%" align=left nowrap style="BORDER-BOTTOM: #000000 1px solid"
    >&nbsp;</TD>
    <TD
      width="8%" align=right nowrap style="BORDER-BOTTOM: #000000 1px solid"><B>2011</B> </TD>
    <TD width="2%" align=left nowrap style="BORDER-BOTTOM: #000000 1px solid"
    >&nbsp;</TD>
    <TD width="1%" align=left nowrap style="BORDER-BOTTOM: #000000 1px solid"
    >&nbsp;</TD>
    <TD
      width="8%" align=right nowrap style="BORDER-BOTTOM: #000000 1px solid"><B>2010</B> </TD>
    <TD width="2%" align=left nowrap style="BORDER-BOTTOM: #000000 1px solid"
    >&nbsp;</TD>
    <TD width="1%" align=left nowrap style="BORDER-BOTTOM: #000000 1px solid"
    >&nbsp;</TD>
    <TD
      width="8%" align=right nowrap style="BORDER-BOTTOM: #000000 1px solid"><B>2010</B> </TD>
    <TD width="2%" align=left nowrap style="BORDER-BOTTOM: #000000 1px solid"
    >&nbsp;</TD>
    <TD width="1%" align=left nowrap style="BORDER-BOTTOM: #000000 1px solid"
    >&nbsp;</TD>
    <TD
      width="8%" align=right nowrap style="BORDER-BOTTOM: #000000 1px solid"><B>2010</B> </TD>
    <TD width="2%" align=left nowrap style="BORDER-BOTTOM: #000000 1px solid"
    >&nbsp;</TD>
    <TD width="1%" align=left nowrap style="BORDER-BOTTOM: #000000 1px solid"
    >&nbsp;</TD>
    <TD
      width="8%" align=right nowrap style="BORDER-BOTTOM: #000000 1px solid"><B>2010</B> </TD>
  <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="2%"
    >&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left bgColor=#e6efff>Tonnes milled </TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="8%" bgColor=#e6efff>245,127 </TD>
    <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="8%" bgColor=#e6efff>295,004 </TD>
    <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="8%" bgColor=#e6efff>307,745 </TD>
    <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="8%" bgColor=#e6efff>313,051 </TD>
    <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="8%" bgColor=#e6efff>320,174 </TD>
    <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="8%" bgColor=#e6efff>345,661 </TD>
    <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="8%" bgColor=#e6efff>276,375 </TD>
    <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left>Silver grades (g/t) </TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=right width="8%">250 </TD>
    <TD align=left width="2%" >&nbsp;</TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=right width="8%">261 </TD>
    <TD align=left width="2%" >&nbsp;</TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=right width="8%">233 </TD>
    <TD align=left width="2%" >&nbsp;</TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=right width="8%">267 </TD>
    <TD align=left width="2%" >&nbsp;</TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=right width="8%">283 </TD>
    <TD align=left width="2%" >&nbsp;</TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=right width="8%">240 </TD>
    <TD align=left width="2%" >&nbsp;</TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=right width="8%">129 </TD>
    <TD align=left width="2%" >&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left bgColor=#e6efff>Silver recoveries (%) </TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="8%" bgColor=#e6efff>82.9 </TD>
    <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="8%" bgColor=#e6efff>80.0 </TD>
    <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="8%" bgColor=#e6efff>73.6 </TD>
    <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="8%" bgColor=#e6efff>76.3 </TD>
    <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="8%" bgColor=#e6efff>66.3 </TD>
    <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="8%" bgColor=#e6efff>63.7 </TD>
    <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="8%" bgColor=#e6efff>53.2 </TD>
    <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left>Silver (ounces) </TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=left width="8%">&nbsp; </TD>
    <TD align=left width="2%" >&nbsp;</TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=left width="8%">&nbsp; </TD>
    <TD align=left width="2%" >&nbsp;</TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=left width="8%">&nbsp; </TD>
    <TD align=left width="2%" >&nbsp;</TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=left width="8%">&nbsp; </TD>
    <TD align=left width="2%" >&nbsp;</TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=left width="8%">&nbsp; </TD>
    <TD align=left width="2%" >&nbsp;</TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=left width="8%">&nbsp; </TD>
    <TD align=left width="2%" >&nbsp;</TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=left width="8%">&nbsp; </TD>
    <TD align=left width="2%" >&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left bgColor=#e6efff>- produced </TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="8%" bgColor=#e6efff>1,631,281 </TD>
    <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="8%" bgColor=#e6efff>1,975,616 </TD>
    <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="8%" bgColor=#e6efff>1,697,294 </TD>
    <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="8%" bgColor=#e6efff>2,067,438 </TD>
    <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="8%" bgColor=#e6efff>1,932,978 </TD>
    <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="8%" bgColor=#e6efff>1,692,466 </TD>
    <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="8%" bgColor=#e6efff>609,258 </TD>
    <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left>- sold </TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=right width="8%">707,202 </TD>
    <TD align=left width="2%" >&nbsp;</TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=right width="8%">1,569,698 </TD>
    <TD align=left width="2%" >&nbsp;</TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=right width="8%">2,053,573 </TD>
    <TD align=left width="2%" >&nbsp;</TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=right width="8%">1,621,363 </TD>
    <TD align=left width="2%" >&nbsp;</TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=right width="8%">2,316,447 </TD>
    <TD align=left width="2%" >&nbsp;</TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=right width="8%">1,091,911 </TD>
    <TD align=left width="2%" >&nbsp;</TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=right width="8%">906,936 </TD>
    <TD align=left width="2%" >&nbsp;</TD></TR>
  <TR>
    <TD bgColor=#e6efff>&nbsp; </TD>
    <TD width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD width="8%" bgColor=#e6efff>&nbsp; </TD>
    <TD width="2%"  bgColor=#e6efff>&nbsp;</TD>
    <TD width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD width="8%" bgColor=#e6efff>&nbsp; </TD>
    <TD width="2%"  bgColor=#e6efff>&nbsp;</TD>
    <TD width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD width="8%" bgColor=#e6efff>&nbsp; </TD>
    <TD width="2%"  bgColor=#e6efff>&nbsp;</TD>
    <TD width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD width="8%" bgColor=#e6efff>&nbsp; </TD>
    <TD width="2%"  bgColor=#e6efff>&nbsp;</TD>
    <TD width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD width="8%" bgColor=#e6efff>&nbsp; </TD>
    <TD width="2%"  bgColor=#e6efff>&nbsp;</TD>
    <TD width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD width="8%" bgColor=#e6efff>&nbsp; </TD>
    <TD width="2%"  bgColor=#e6efff>&nbsp;</TD>
    <TD width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD width="8%" bgColor=#e6efff>&nbsp; </TD>
    <TD width="2%"  bgColor=#e6efff>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left>Average realized silver price ($/oz) </TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=right width="8%">39.88 </TD>
    <TD align=left width="2%" >&nbsp;</TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=right width="8%">38.54 </TD>
    <TD align=left width="2%" >&nbsp;</TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=right width="8%">30.44 </TD>
    <TD align=left width="2%" >&nbsp;</TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=right width="8%">26.93 </TD>
    <TD align=left width="2%" >&nbsp;</TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=right width="8%">19.43 </TD>
    <TD align=left width="2%" >&nbsp;</TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=right width="8%">18.12 </TD>
    <TD align=left width="2%" >&nbsp;</TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=right width="8%">17.43 </TD>
    <TD align=left width="2%" >&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left nowrap bgColor=#e6efff>Average London spot silver price ($/oz) </TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="8%" bgColor=#e6efff>38.79 </TD>
    <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="8%" bgColor=#e6efff>38.17 </TD>
    <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="8%" bgColor=#e6efff>31.66 </TD>
    <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="8%" bgColor=#e6efff>26.43 </TD>
    <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="8%" bgColor=#e6efff>18.96 </TD>
    <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="8%" bgColor=#e6efff>18.32 </TD>
    <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="8%" bgColor=#e6efff>16.76 </TD>
    <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD></TR>
  <TR>
    <TD>&nbsp; </TD>
    <TD width="1%" >&nbsp;</TD>
    <TD width="8%">&nbsp; </TD>
    <TD width="2%" >&nbsp;</TD>
    <TD width="1%" >&nbsp;</TD>
    <TD width="8%">&nbsp; </TD>
    <TD width="2%" >&nbsp;</TD>
    <TD width="1%" >&nbsp;</TD>
    <TD width="8%">&nbsp; </TD>
    <TD width="2%" >&nbsp;</TD>
    <TD width="1%" >&nbsp;</TD>
    <TD width="8%">&nbsp; </TD>
    <TD width="2%" >&nbsp;</TD>
    <TD width="1%" >&nbsp;</TD>
    <TD width="8%">&nbsp; </TD>
    <TD width="2%" >&nbsp;</TD>
    <TD width="1%" >&nbsp;</TD>
    <TD width="8%">&nbsp; </TD>
    <TD width="2%" >&nbsp;</TD>
    <TD width="1%" >&nbsp;</TD>
    <TD width="8%">&nbsp; </TD>
    <TD width="2%" >&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left bgColor=#e6efff>Direct mining cost ($/oz) <SUP>(1)</SUP>
</TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="8%" bgColor=#e6efff>16.20 </TD>
    <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="8%" bgColor=#e6efff>11.57 </TD>
    <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="8%" bgColor=#e6efff>12.26 </TD>
    <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="8%" bgColor=#e6efff>9.55 </TD>
    <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="8%" bgColor=#e6efff>10.43 </TD>
    <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="8%" bgColor=#e6efff>11.27 </TD>
    <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="8%" bgColor=#e6efff>29.32 </TD>
    <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left>Total cash cost ($/oz) <SUP>(1)</SUP> </TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=right width="8%">20.60 </TD>
    <TD align=left width="2%" >&nbsp;</TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=right width="8%">22.06 </TD>
    <TD align=left width="2%" >&nbsp;</TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=right width="8%">23.23 </TD>
    <TD align=left width="2%" >&nbsp;</TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=right width="8%">16.06 </TD>
    <TD align=left width="2%" >&nbsp;</TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=right width="8%">16.95 </TD>
    <TD align=left width="2%" >&nbsp;</TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=right width="8%">14.98 </TD>
    <TD align=left width="2%" >&nbsp;</TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=right width="8%">36.62 </TD>
    <TD align=left width="2%" >&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left bgColor=#e6efff>Total production cost ($/oz) <SUP>(1)</SUP>
    </TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="8%" bgColor=#e6efff>24.55 </TD>
    <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="8%" bgColor=#e6efff>25.26 </TD>
    <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="8%" bgColor=#e6efff>26.99 </TD>
    <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="8%" bgColor=#e6efff>19.00 </TD>
    <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="8%" bgColor=#e6efff>19.89 </TD>
    <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="8%" bgColor=#e6efff>18.22 </TD>
    <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="8%" bgColor=#e6efff>46.13 </TD>
    <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD></TR>
  <TR>
    <TD>&nbsp; </TD>
    <TD width="1%" >&nbsp;</TD>
    <TD width="8%">&nbsp; </TD>
    <TD width="2%" >&nbsp;</TD>
    <TD width="1%" >&nbsp;</TD>
    <TD width="8%">&nbsp; </TD>
    <TD width="2%" >&nbsp;</TD>
    <TD width="1%" >&nbsp;</TD>
    <TD width="8%">&nbsp; </TD>
    <TD width="2%" >&nbsp;</TD>
    <TD width="1%" >&nbsp;</TD>
    <TD width="8%">&nbsp; </TD>
    <TD width="2%" >&nbsp;</TD>
    <TD width="1%" >&nbsp;</TD>
    <TD width="8%">&nbsp; </TD>
    <TD width="2%" >&nbsp;</TD>
    <TD width="1%" >&nbsp;</TD>
    <TD width="8%">&nbsp; </TD>
    <TD width="2%" >&nbsp;</TD>
    <TD width="1%" >&nbsp;</TD>
    <TD width="8%">&nbsp; </TD>
    <TD width="2%" >&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left
      bgColor=#e6efff><B>Financial Data ($000s)</B> </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
     bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="8%"
    bgColor=#e6efff>&nbsp; </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="2%"
     bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
     bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="8%"
    bgColor=#e6efff>&nbsp; </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="2%"
     bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
     bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="8%"
    bgColor=#e6efff>&nbsp; </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="2%"
     bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
     bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="8%"
    bgColor=#e6efff>&nbsp; </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="2%"
     bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
     bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="8%"
    bgColor=#e6efff>&nbsp; </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="2%"
     bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
     bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="8%"
    bgColor=#e6efff>&nbsp; </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="2%"
     bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
     bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="8%"
    bgColor=#e6efff>&nbsp; </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="2%"
     bgColor=#e6efff>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left>Revenue </TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=right width="8%">26,152 </TD>
    <TD align=left width="2%" >&nbsp;</TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=right width="8%">47,271 </TD>
    <TD align=left width="2%" >&nbsp;</TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=right width="8%">60,053 </TD>
    <TD align=left width="2%" >&nbsp;</TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=right width="8%">45,077 </TD>
    <TD align=left width="2%" >&nbsp;</TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=right width="8%">41,557 </TD>
    <TD align=left width="2%" >&nbsp;</TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=right width="8%">14,091 </TD>
    <TD align=left width="2%" >&nbsp;</TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=right width="8%">11,531 </TD>
    <TD align=left width="2%" >&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left bgColor=#e6efff>Earnings (loss) from mine operations </TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="8%" bgColor=#e6efff>11,492 </TD>
    <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="8%" bgColor=#e6efff>15,838 </TD>
    <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="8%" bgColor=#e6efff>27,859 </TD>
    <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="8%" bgColor=#e6efff>24,975 </TD>
    <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="8%" bgColor=#e6efff>7,426 </TD>
    <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="8%" bgColor=#e6efff>(1,673</TD>
    <TD align=left width="2%"  bgColor=#e6efff>) </TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="8%" bgColor=#e6efff>(16,594</TD>
    <TD align=left width="2%"  bgColor=#e6efff>) </TD></TR>
  <TR vAlign=top>
    <TD align=left>Exploration expenditures </TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=right width="8%">3,682 </TD>
    <TD align=left width="2%" >&nbsp;</TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=right width="8%">7,992 </TD>
    <TD align=left width="2%" >&nbsp;</TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=right width="8%">12,857 </TD>
    <TD align=left width="2%" >&nbsp;</TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=right width="8%">11,496 </TD>
    <TD align=left width="2%" >&nbsp;</TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=right width="8%">26,357 </TD>
    <TD align=left width="2%" >&nbsp;</TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=right width="8%">10,199 </TD>
    <TD align=left width="2%" >&nbsp;</TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=right width="8%">4,860 </TD>
    <TD align=left width="2%" >&nbsp;</TD></TR></TABLE><BR>
<TABLE
style="BORDER-COLOR: black; FONT-SIZE: 10pt; BORDER-COLLAPSE: collapse; "
cellSpacing=0 cellPadding=0 width="100%" border=0 BCLLIST>

  <TR>
    <TD vAlign=top width="5%">(1) </TD>
    <TD>
  <P align=justify>The Company reports non-GAAP cost per ounce of silver produced to manage and evaluate operating performance at the Pirquitas mine. For a better understanding and a reconciliation of these measures to cost of sales, as shown in our Consolidated Interim Statement of Income (loss) please refer to the non-GAAP measures section of this MD&amp;A.</P></TD></TR></TABLE>
<P align=justify><U>Mine production</U></P>
<P align=justify>The Pirquitas mine produced 1.6 million ounces of silver during
the third quarter of 2011 compared with 2.0 million ounces in the second quarter
of 2011 and 1.9 million ounces in the third quarter of 2010. The lower
production in the current quarter, as compared to the second quarter of 2011,
resulted from a 17 day ball mill shutdown in July 2011 and a further 7 day
shutdown in September 2011 to refurbish the gearbox. In the period between these
two shutdowns the plant was achieving design rates with daily average production
of 26,000 ounces of silver and recovery rates of 83%. The gearbox has now been
completely rebuilt with new parts and recommenced operating in early November.
This rebuild put the gearbox in near-new condition. Shipping of a replacement
gearbox from Europe is also scheduled for November with arrival on site in
January 2012. </P>
<P align=justify>Operations were also impacted by import restrictions which were
imposed by the Argentine government on all industries. Most significantly
impacted was the operation of the jig circuit where a lack of spare parts shut
down the plant for several days and in the mine, where loading, drilling and
haulage equipment availability was lower as units were idled awaiting spare or
replacement parts. </P>
<P align=justify>During the third quarter 245,127 tonnes of ore were processed
at an average milling rate of 2,664 tonnes per day, compared to 295,004 tonnes
at an average of 3,241 tonnes per day achieved in the second quarter of 2011 and
320,174 tonnes at an average milling rate of 3,480 tonnes per day in the third
quarter of 2010. The reduced tonnage processed during the third quarter of 2011
resulted from the aforementioned ball mill shutdowns to refurbish the gearbox.
However, the average milling rate in the third quarter of 2011 per operating day
was in excess of 3,600 tonnes per day.</P>
<P align=right>4</P>
<HR style="PAGE-BREAK-AFTER: always" align=center width="100%" color=black
noShade SIZE=5>
<!--$$/page=--><A name=page_5></A>
<p align="justify">The ore milled during the third quarter of 2011 contained an average silver grade of 250 g/t and achieved average silver recovery of 83%, a significant improvement compared to a silver grade of 261 g/t and recovery of 80% in the second quarter of 2011 and a silver grade of 283 g/t and recovery of 66% in the third quarter of 2010. The strong recovery achieved during the third quarter of 2011 was due principally to consistent feed and continuous improvements to the crushing and flotation circuits.</p>
<P align=justify>The mine produced a total of 3.3 million pounds of zinc in the third quarter of 2011 compared to 2.8 million pounds in the second quarter of 2011. The increase in zinc production, despite the reduced operating days, is due to higher grades being processed and better recoveries being achieved. The total zinc production for the year stands at 9.3 million pounds, 93 per cent of full year guidance.</P>
<P align=justify><U>Mine operating costs</U></P>
<P align=justify>During the second quarter of 2011 the Company adopted The
Silver Institute&#146;s presentation guidance for production costs. This disclosure
guidance differed from the Company&#146;s previous methodology, therefore previous
disclosures have been restated to conform to the amended presentation.</P>
<P align=justify>Direct mining costs in the third quarter were $16.20 per ounce of silver compared to $11.57 per ounce in the second quarter of 2011 and $10.43 per ounce in the third quarter of 2010. As discussed previously under the &lsquo;Outlook&rsquo; section the increase in the third quarter unit cost versus the second quarter was primarily driven by the lower number of ounces produced in the third quarter compared to the second quarter. Operating costs were also higher in the third quarter as a result of additional repairs and maintenance costs associated with the refurbishment of the ball mill gearbox, and additional maintenance costs and external costs associated with the import restrictions that affected the ability to obtain quality spare parts.</P>
<P align=justify>Total cash cost, which includes by-product credits, treatment
and refining costs, royalties and production taxes, was $20.60 per ounce
compared to $22.06 per ounce of silver in the second quarter of 2011 and $16.95
per ounce in the third quarter of 2010. Treatment and refining costs, as well as
royalties and production taxes are all a function of sales prices and are
recorded for the actual ounces sold during the quarter. Consequently, on a per
ounce basis, the variability from quarter to quarter is due to sales prices and
the difference between production and sale volumes. The lower incremental per
ounce impact of these costs in the third quarter of 2011 compared with the
second quarter of 2011 and the third quarter of 2010 is due to a lower volume of
sales in the current quarter. Higher prices achieved on sales in the current
quarter partially offset the volume impact compared to the third quarter of
2010.</P>
<P align=justify>Total production cost, which includes depreciation and amortization, was $24.55 per ounce in the third quarter of 2011 compared to $25.26 in the second quarter of 2011 and $19.89 in the third quarter of 2010. The depreciation and amortization costs are largely fixed, and are higher on a per ounce basis in the current quarter due to lower production volumes.</P>
<P align=justify><B>Pirquitas Mineral Resources and Reserve</B></P>
<P align=justify>As part of the Company&rsquo;s ongoing production-reserve reconciliation and mine planning, and to delineate the deposit in greater detail for the mine&rsquo;s mineral resources and reserve estimates, the Company undertook a comprehensive drilling campaign between the fourth quarter of 2010 and September 2011.  Assay results from these drill-holes have been utilized by the Company&rsquo;s Qualified Persons (&ldquo;QPs&rdquo;) to complete advanced modeling of the deposit&rsquo;s current mineral resource and reserve. Model validation included detailed reconciliation with grade control and mine production data.  The outcome of this modeling work is shown below in the following two tables. </P>
<P align=right>5</P>
<HR style="PAGE-BREAK-AFTER: always" align=center width="100%" color=black
noShade SIZE=5>
<!--$$/page=--><A name=page_6></A>
<P align=justify>Pirquitas Mineral Resources Estimate as of September 30, 2011
<I>(Total Measured and Indicated Resources are </I><I><U>Inclusive </U></I><I>of
Total Reserve).</I></P>
<DIV>
<TABLE
style="BORDER-COLOR: black; FONT-SIZE: 8pt; BORDER-COLLAPSE: collapse; "
borderColor=#000000 cellSpacing=0 cellPadding=3 width="100%" border=1>

  <TR vAlign=top>
    <TD align=left valign="middle"><b>Classification <BR>
    </b></TD>
    <TD width="11%" align=center valign="middle" nowrap><b>Tonnage <BR>
      (Mt) </b></TD>
    <TD width="11%" align=center valign="middle" nowrap><b>Silver <BR>
      Grade <BR>
      (g/t) </b></TD>
    <TD width="11%" align=center valign="middle" nowrap><b>Zinc <BR>
      Grade <BR>
      (%) </b></TD>
    <TD width="11%" align=center valign="middle" nowrap><b>Contained <BR>
      Silver <BR>
      (Moz.) </b></TD>
    <TD width="11%" align=center valign="middle" nowrap><b>Contained <BR>
    Zinc <BR>
    (Mlbs) </b></TD>
  </TR>
  <TR vAlign=top>
    <TD align=left>Measured </TD>
    <TD align=center width="11%">13.5 </TD>
    <TD align=center width="11%">156.2 </TD>
    <TD align=center width="11%">0.49 </TD>
    <TD align=center width="11%">68.0 </TD>
    <TD align=center width="11%">144.9 </TD></TR>
  <TR vAlign=top>
    <TD align=left>Indicated </TD>
    <TD align=center width="11%">16.3 </TD>
    <TD align=center width="11%">142.3 </TD>
    <TD align=center width="11%">0.91 </TD>
    <TD align=center width="11%">74.6 </TD>
    <TD align=center width="11%">328.4 </TD></TR>
  <TR vAlign=top>
    <TD align=left>Stockpiles (Indicated) </TD>
    <TD align=center width="11%">3.0 </TD>
    <TD align=center width="11%">78.5 </TD>
    <TD align=center width="11%">1.50 </TD>
    <TD align=center width="11%">7.5 </TD>
    <TD align=center width="11%">98.1 </TD></TR>
  <TR vAlign=top>
    <TD align=left><B>Total Measured and</B> <B>Indicated</B> </TD>
    <TD align=center width="11%"><B>32.8</B> </TD>
    <TD align=center width="11%"><B>142.2</B> </TD>
    <TD align=center width="11%"><B>0.79</B> </TD>
    <TD align=center width="11%"><B>150.1</B> </TD>
    <TD align=center width="11%"><B>571.4</B> </TD></TR>
  <TR vAlign=top>
    <TD align=left>Cortaderas Breccia Inferred </TD>
    <TD align=center width="11%">2.0 </TD>
    <TD align=center width="11%">152.0 </TD>
    <TD align=center width="11%">5.4 </TD>
    <TD align=center width="11%">9.9 </TD>
    <TD align=center width="11%">239.3 </TD></TR>
  <TR vAlign=top>
    <TD align=left>Cortaderas Valley Inferred </TD>
    <TD align=center width="11%">5.0 </TD>
    <TD align=center width="11%">78.6 </TD>
    <TD align=center width="11%">1.1 </TD>
    <TD align=center width="11%">12.6 </TD>
    <TD align=center width="11%">120.8 </TD></TR>
  <TR vAlign=top>
    <TD align=left><B>Total Inferred</B> </TD>
    <TD align=center width="11%"><B>7.0</B> </TD>
    <TD align=center width="11%"><B>99.8</B> </TD>
    <TD align=center width="11%">&nbsp;<B>2.3</B> </TD>
    <TD align=center width="11%"><B>22.5</B> </TD>
    <TD align=center width="11%"><B>360.1</B> </TD></TR></TABLE>
</DIV>
<P align=justify>Notes to table above:</P>
<TABLE
style="BORDER-COLOR: black; FONT-SIZE: 10pt; BORDER-COLLAPSE: collapse; "
cellSpacing=0 cellPadding=0 width="100%" border=0 BCLLIST>

  <TR>
    <TD vAlign=top width="5%">1. </TD>
    <TD>
  <P align=justify>	Dr. Warwick Board, Ph.D. (Geology), P.Geo., is the Qualified Person (QP) for the reported mineral resource estimates.</P></TD></TR>
  <TR>
    <TD vAlign=top width="5%">2. </TD>
    <TD>
      <P align=justify>All mineral resources have been classified in accordance
      with current CIM definition standards.</P></TD></TR>
  <TR>
    <TD vAlign=top width="5%">3. </TD>
    <TD>
      <P align=justify>The reported Measured and Indicated Resources represent
      resources estimated to exist below the as- mined surface as of September
      30, 2011.</P></TD></TR>
  <TR>
    <TD vAlign=top width="5%">4. </TD>
    <TD>
      <P align=justify>The multiple-indicator kriging (MIK) modeling methodology
      was employed for estimates of the Measured and Indicated Resources,
      whereas ordinary kriging was used to estimate the Cortaderas Breccia
      Inferred Resource and single-indicator kriging was utilized for the
      Cortaderas Valley Inferred Resource.</P></TD></TR>
  <TR>
    <TD vAlign=top width="5%">5. </TD>
    <TD>
      <P align=justify>A silver cut-off grade of 50 g/t Ag was used for all of
      the reported resource estimates.</P></TD></TR>
  <TR>
    <TD vAlign=top width="5%">6. </TD>
    <TD>
      <P align=justify>A capping grade of 1,600 g/t Ag was utilized for the
      Cortaderas Breccia mineral resource estimate, while capping grades of 235
      g/t Ag and 10% Zn were used for the Cortaderas Valley mineral resource
      estimate. Due to the nature of the MIK modeling technique, no grade
      capping was required for the Measured and Indicated resource estimates for
      the mine.</P></TD></TR>
  <TR>
    <TD vAlign=top width="5%">7. </TD>
    <TD>
  <P align=justify>	Detailed bulk density modeling, taking into account voids created by historical underground mining and differential rock densities, resulted in an average bulk density value of 2.60 tonnes per cubic meter for the Measured and Indicated resource estimates and 2.71 for the Cortaderas area combined resource.</P></TD></TR>
  <TR>
    <TD vAlign=top width="5%">8. </TD>
    <TD>
      <P align=justify>Sums may not equal reported totals due to
  rounding.</P></TD></TR></TABLE>
<P align=left>Dr. Warwick Board, Ph.D. (Geology), P. Geo., the QP who completed the mineral resource estimates reported here has been employed by the Company as Senior Resource Geologist since August 2009, and before joining the Company was Principal Consultant with Snowden Mining Industry Consultants.   The NI 43-101 Technical Report supporting these resource estimates will be filed on SEDAR within 45 days from the date of this document. </P>
<P align=right>6</P>
<HR style="PAGE-BREAK-AFTER: always" align=center width="100%" color=black
noShade SIZE=5>
<!--$$/page=--><A name=page_7></A>
<P align=justify>Pirquitas Mineral Reserve Estimate as of September 30, 2011.</P>
<DIV>
<TABLE
style="BORDER-COLOR: black; FONT-SIZE: 8pt; BORDER-COLLAPSE: collapse; "
borderColor=#000000 cellSpacing=0 cellPadding=3 width="100%" border=1>

  <TR vAlign=top>
    <TD align=left valign="middle"><B>Classification</B> <BR></TD>
    <TD width="11%" align=center valign="middle" nowrap><B>Tonnage</B> <BR>
      <B>(Mt)</B> </TD>
    <TD width="11%" align=center valign="middle" nowrap><B>Silver</B> <BR>
      <B>Grade</B>
      <BR><B>(g/t)</B> </TD>
    <TD width="11%" align=center valign="middle" nowrap><B>Zinc</B> <BR>
      <B>Grade</B> <BR><B>(%)</B>
    </TD>
    <TD width="11%" align=center valign="middle" nowrap><B>Contained</B> <BR>
      <B>Silver</B>
      <BR><B>(Moz.)</B> </TD>
    <TD width="11%" align=center valign="middle" nowrap><B>Contained</B> <BR>
      <B>Zinc</B>
      <BR><B>(Mlbs)</B> </TD></TR>
  <TR vAlign=top>
    <TD align=left>Proven </TD>
    <TD align=center width="11%">10.4 </TD>
    <TD align=center width="11%">181.2 </TD>
    <TD align=center width="11%">0.52 </TD>
    <TD align=center width="11%">60.4 </TD>
    <TD align=center width="11%">117.9 </TD></TR>
  <TR vAlign=top>
    <TD align=left>Probable </TD>
    <TD align=center width="11%">5.1 </TD>
    <TD align=center width="11%">168.9 </TD>
    <TD align=center width="11%">1.04 </TD>
    <TD align=center width="11%">27.6 </TD>
    <TD align=center width="11%">117.1 </TD></TR>
  <TR vAlign=top>
    <TD align=left>Reserve Stockpiles </TD>
    <TD align=center width="11%">1.2 </TD>
    <TD align=center width="11%">129.2 </TD>
    <TD align=center width="11%">1.03 </TD>
    <TD align=center width="11%">5.0 </TD>
    <TD align=center width="11%">27.6 </TD></TR>
  <TR vAlign=top>
    <TD align=left><B>Total Reserve</B> </TD>
    <TD align=center width="11%"><B>16.7</B> </TD>
    <TD align=center width="11%"><B>173.7</B> </TD>
    <TD align=center width="11%"><B>0.71</B> </TD>
    <TD align=center width="11%"><B>93.1</B> </TD>
    <TD align=center width="11%"><B>262.6</B> </TD></TR></TABLE></DIV>
<P align=justify>Notes to table above:</P>
<TABLE
style="BORDER-COLOR: black; FONT-SIZE: 10pt; BORDER-COLLAPSE: collapse; "
cellSpacing=0 cellPadding=0 width="100%" border=0 BCLLIST>

  <TR>
    <TD vAlign=top width="5%">1. </TD>
    <TD>
  <P align=justify>	R. Bruce Kennedy, BS (Mining Engineering), P. E. is the Qualified Person for the reported mineral reserve estimates.</P></TD></TR>
  <TR>
    <TD vAlign=top width="5%">2. </TD>
    <TD>
      <P align=justify>Trevor Yeomans, B.Sc. (Mineral Processing), P. Eng., is
      the Qualified Person who provided metallurgical parameters that were
      incorporated in the reserve estimates.</P></TD></TR>
  <TR>
    <TD vAlign=top width="5%">3. </TD>
    <TD>
      <P align=justify>All mineral reserves have been classified in accordance
      with current CIM definition standards.</P></TD></TR>
  <TR>
    <TD vAlign=top width="5%">4. </TD>
    <TD>
  <P align=justify>	Reported mineral reserves were estimated using the Measured and Indicated Resources shown in the Mineral Resource table above, excluding 1.2 Mt Indicated Resource estimated for the Oploca Vein to contain approximately 8.2 Moz. silver.  The estimated Oploca mineral resource lies just beyond the southern limits of the current pit design.</P></TD></TR>
  <TR>
    <TD vAlign=top width="5%">5. </TD>
    <TD>
  <P align=justify>	Metal prices used in reserve estimates are $25.00 per ounce of silver and $2,403 per tonne of zinc.</P></TD></TR>
  <TR>
    <TD vAlign=top width="5%">6. </TD>
    <TD>
      <P align=justify>Mining costs are as per 2011 actual costs, with estimated
      productivity changes incorporated.</P></TD></TR>
  <TR>
    <TD vAlign=top width="5%">7. </TD>
    <TD>
      <P align=justify>Mill and general administrative costs were estimated on
      the basis of 2011 actual costs, incorporating projections to full and
      stable production.</P></TD></TR>
  <TR>
    <TD vAlign=top width="5%">8. </TD>
    <TD>
  <P align=justify>	The Mineral Reserve is quoted within a pit design that utilizes geotechnical parameters proven from actual performance.  The design was created using a geometry guideline from a Lerche-Grossman algorithm that maximizes the reserve cash flow.</P></TD></TR>
  <TR>
    <TD vAlign=top width="5%">9. </TD>
    <TD>
      <P align=justify>Average open-pit strip ratio of 4.89:1 total:ore was
      used.</P></TD></TR>
  <TR>
    <TD vAlign=top width="5%">10. </TD>
    <TD>
      <P align=justify>The cut-off grade was developed on a net smelter return
      (NSR) basis that uses a total operating cost of $35.52 per tonne of
      ore.</P></TD></TR>
  <TR>
    <TD vAlign=top width="5%">11. </TD>
    <TD>
      <P align=justify>Metallurgical recovery formulas were applied for silver
      and zinc concentrates that reflect increasing recovery with increasing
      head grade. Average metallurgical recovery for silver is 79.8 percent, and
      for zinc 42.9 percent.</P></TD></TR></TABLE>
<P align=justify>R. Bruce Kennedy, BS (Mining Engineering), P.E., the QP who has approved the estimated mineral reserve reported here, is the General Manager of the Pirquitas Mine, having joined the Company in March 2011.  Mr. Kennedy has extensive mine management experience and prior to joining the Company was a senior mining consultant with SRK Consulting. A NI 43-101 Technical Report supporting the tabulated Reserve estimates will be filed on SEDAR within 45 days from the date of this document.</P>
<P align=right>7</P>
<HR style="PAGE-BREAK-AFTER: always" align=center width="100%" color=black
noShade SIZE=5>
<!--$$/page=--><A name=page_8></A>
<P align=justify>Significant factors affecting the new mineral resources and
reserve estimates include the following:</P>
<UL style="TEXT-ALIGN: justify">
  <LI>the determination that silver mineralization which exists between high-grade veins in the upper parts of the deposit becomes less prevalent and of uneconomic grade in the lower parts of the deposit;
  <LI>increases in operating cost per tonne ore from $22.00 to $35.52, which include an increase in waste mining costs, general and country-specific inflation over three years and some incremental tailing storage costs;
  <LI>	depletion of 18.6 million ounces of silver since the start of production in 2009 until September 30, 2011;
  <LI>	understanding of processing and cost of production following mining through the pit to the sulphide ore which commenced in the third quarter of 2010; and
  <LI>	the decision to exclude at this time cost credits from the production of tin until an economically viable processing method has been designed and tested;
  </UL>
<p align="justify">The 2008 Mineral Resources estimate and the 2011 Mineral Resources estimate have been reported on different bases.  The former was reported on a silver-equivalent basis, including the economic benefit of tin. This mineral reserve estimate totaled 195.1 million ounces of silver and 550 million pounds of zinc contained as stated in a NI 43-101 Technical Report, dated September 29, 2008 and filed on SEDAR. The 2011 Mineral Resources estimate uses a 50 g/t silver only cut-off. The 2010 and 2011 drilling has enabled improvement in the Company&rsquo;s interpretation of geological controls on the mineralization and the 2011 mineral resources model has been validated through reconciliation of grade control and mine production data. </p>
<P align=justify>The Company is focused on opportunities for cost reduction, pursuing the option of dry-stacking of tailings and is investigating processes for tin recovery which together are expected to bring resources back into reserves. Extensive &lsquo;brownfield&rsquo; exploration is also being conducted on the property with encouraging results to date. In 2011, the Company&rsquo;s exploration team identified two significant silver and zinc-bearing breccia bodies; one that is currently being mined from the open-pit and another that is located approximately 200 meters 	north of the pit in a resource area referred to as Cortaderas (see the Mineral Reserve Estimate table above).</P>
<P align=justify>The Company&#146;s exploration efforts will continue in the pursuit
of delineating new resources and reserves on the Pirquitas property.
Metallurgical engineering work will also continue on the development and
implementation of a process to recover the significant tin mineralization found
in the Pirquitas ore.</P>
<p align="justify">Notwithstanding the Company estimates that the noted changes to the mine&rsquo;s mineral Resources and Reserve estimate, from 2012 onwards Pirquitas will continue operating for 6.5 years as an 8-10 million ounces per annum silver producer, with a further 2.5 years of production of approximately 3 million ounces of silver per annum coming from stockpiles.  This mine life estimate is based on $25.00 per ounce of silver and $2,403 per tonne of zinc and could be extended assuming the continuation of current market prices of approximately $35 per ounce of silver.</p>
<P align=justify><B>Exploration drilling program</B></P>
<p align="justify">In addition to the comprehensive in-fill drilling program that was completed in 2011 in the area of the San Miguel open-pit, the Company diamond drilled 1,837 meters at an exploration target located just 200 meters north of the pit in the Cortaderas Valley.  The main target at Cortaderas consists of a steeply plunging breccia body where the breccia matrix is composed of silver-bearing iron and zinc sulphide mineralization. To date, nine relatively closely spaced drill-holes have intersected the mineralized breccia body.  The results from this drilling are encouraging, with intercepts from a select number of the boreholes being highlighted in the table below. Based on the drilling completed to date, Dr Warwick Board, the Company&rsquo;s Senior Resource Geologist and QP has estimated an Inferred Resource for the breccia of 2.0 million tonnes averaging 152 g/t silver and 5.4% zinc, for approximately 9.9 million ounces of contained silver, at a 50 g/t Ag cut-off grade. Sulphide-rich, vein-hosted mineralization has been intersected by drill-holes in the vicinity of the above mentioned breccia body and is estimated to contain an additional 12.6 million ounces of silver in the Inferred Resource category (refer to the above Mineral Resources table for details).</p>
<P align=right>8</P>
<HR style="PAGE-BREAK-AFTER: always" align=center width="100%" color=black
noShade SIZE=5>
  <!--$$/page=-->
<A name=page_9></A>
<p>Select Drill-hole Intersections of the Cortaderas Breccia:</p>
<DIV align=center>
<TABLE width="90%" border=1 cellPadding=3 cellSpacing=0
borderColor=#000000
style="BORDER-COLOR: black; FONT-SIZE: 8pt; BORDER-COLLAPSE: collapse; ">
  <TR vAlign=top>
    <TD align=left>Drill-Hole </TD>
    <TD align=center>From (m) </TD>
    <TD align=center>To (m) </TD>
    <TD align=center>Length&#178; (m) </TD>
    <TD align=center>Ag (g/t) </TD>
    <TD align=center>Sn (%) </TD>
    <TD align=center>Zn (%) </TD>
  </TR>
  <TR vAlign=top>
    <TD align=left>DDH-099&#179; </TD>
    <TD align=right>145.0 </TD>
    <TD align=right>250.0 </TD>
    <TD align=right>105.0 </TD>
    <TD align=right>194.3 </TD>
    <TD align=right>0.17 </TD>
    <TD align=right>6.17 </TD>
  </TR>
  <TR vAlign=top>
    <TD align=right>&nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp;including </TD>
    <TD align=right>177.0 </TD>
    <TD align=right>219.0 </TD>
    <TD align=right>42.0 </TD>
    <TD align=right>371.4 </TD>
    <TD align=right>0.35 </TD>
    <TD align=right>9.91 </TD>
  </TR>
  <TR vAlign=top>
    <TD align=left>DDH-167&#185; </TD>
    <TD align=right>80.0 </TD>
    <TD align=right>312.0 </TD>
    <TD align=right>232.0 </TD>
    <TD align=right>183.2 </TD>
    <TD align=right>0.13 </TD>
    <TD align=right>5.40 </TD>
  </TR>
  <TR vAlign=top>
    <TD align=right>&nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp;including </TD>
    <TD align=right>117.0 </TD>
    <TD align=right>151.3 </TD>
    <TD align=right>34.3 </TD>
    <TD align=right>631.5 </TD>
    <TD align=right>0.17 </TD>
    <TD align=right>12.08 </TD>
  </TR>
  <TR vAlign=top>
    <TD align=right>&nbsp;and including </TD>
    <TD align=right>198.0 </TD>
    <TD align=right>234.0 </TD>
    <TD align=right>36.0 </TD>
    <TD align=right>386.1 </TD>
    <TD align=right>0.30 </TD>
    <TD align=right>9.02 </TD>
  </TR>
  <TR vAlign=top>
    <TD align=left>DDH-214&#185; </TD>
    <TD width="12%" align=right>156.0 </TD>
    <TD width="12%" align=right>374.0 </TD>
    <TD width="12%" align=right>218.0 </TD>
    <TD width="12%" align=right>477.3 </TD>
    <TD width="12%" align=right>0.38 </TD>
    <TD width="12%" align=right>7.97 </TD>
  </TR>
  <TR vAlign=top>
    <TD align=right>including </TD>
    <TD align=right>218.0 </TD>
    <TD align=right>276.0 </TD>
    <TD align=right>58.0 </TD>
    <TD align=right>1,007.7 </TD>
    <TD align=right>0.39 </TD>
    <TD align=right>12.83 </TD>
  </TR>
  <TR vAlign=top>
    <TD align=right>and including </TD>
    <TD align=right>282.0 </TD>
    <TD align=right>328.0 </TD>
    <TD align=right>46.0 </TD>
    <TD align=right>928.3 </TD>
    <TD align=right>1.03 </TD>
    <TD align=right>16.15 </TD>
  </TR>
  <TR vAlign=top>
    <TD align=left>DDH-216&#185; </TD>
    <TD align=right>257.0 </TD>
    <TD align=right>421.0 </TD>
    <TD align=right>164.0 </TD>
    <TD align=right>59.6 </TD>
    <TD align=right>0.11 </TD>
    <TD align=right>3.82 </TD>
  </TR>
  <TR vAlign=top>
    <TD align=right>including </TD>
    <TD align=right>337.7 </TD>
    <TD align=right>385.4 </TD>
    <TD align=right>47.7 </TD>
    <TD align=right>166.7 </TD>
    <TD align=right>0.18 </TD>
    <TD align=right>9.07 </TD>
  </TR>
  <TR vAlign=top>
    <TD align=left>DDH-217&#185; </TD>
    <TD align=right>91.0 </TD>
    <TD align=right>290.0 </TD>
    <TD align=right>199.0 </TD>
    <TD align=right>84.2 </TD>
    <TD align=right>0.06 </TD>
    <TD align=right>3.19 </TD>
  </TR>
  <TR vAlign=top>
    <TD align=right>including </TD>
    <TD align=right>120.4 </TD>
    <TD align=right>128.0 </TD>
    <TD align=right>7.6 </TD>
    <TD align=right>552.8 </TD>
    <TD align=right>0.22 </TD>
    <TD align=right>4.31 </TD>
  </TR></TABLE>
</DIV>
<P align=justify>Notes to the table above:</P>
<TABLE
style="BORDER-COLOR: black; FONT-SIZE: 10pt; BORDER-COLLAPSE: collapse; "
cellSpacing=0 cellPadding=0 width="100%" border=0 BCLLIST>

  <TR>
    <TD vAlign=top width="5%">1. </TD>
    <TD>
      <P align=justify>Holes are oriented at shallow angles to inferred plunge
      orientation of mineralized breccia body.</P></TD></TR>
  <TR>
    <TD vAlign=top width="5%">2. </TD>
    <TD>
      <P align=justify>Intercepts are not true thicknesses. These are to be
      determined by follow-up drilling.</P></TD></TR>
  <TR>
    <TD vAlign=top width="5%">3. </TD>
    <TD>
      <P align=justify>Hole intersected the breccia body at a high angle and
      ended in mineralization.</P></TD></TR>
  <TR>
    <TD vAlign=top width="5%">4. </TD>
    <TD>
      <P align=justify>All samples were submitted to ALS Chemex for preparation
      and analysis at its facilities in Mendoza, Argentina. Samples were
      analyzed using a 4-acid digestion and ICP-AES finish for a suite of 35
      elements. Additional tin analyses were performed using the XRF analytical
      technique. Samples containing greater than 200 ppm Ag and/or greater than
      100,000 ppm Zn were re- analyzed using a 4-acid digestion with AAS finish
      for both elements.</P></TD></TR>
  <TR>
    <TD vAlign=top width="5%">5. </TD>
    <TD>
      <P align=justify>Silver Standard&#146;s QA/QC protocol consists of the regular
      insertion of control standard and blank samples together with the analysis
      of field duplicate samples. Approximately 14% of all samples analyzed
      represent QA/QC samples.</P></TD></TR>
  <TR>
    <TD vAlign=top width="5%">6. </TD>
    <TD>
  <P align=justify>	Dr. Warwick Board, Ph.D. (Geology), P.Geo., is the Senior Resource Geologist at Silver Standard Resources Inc. and is the QP who has verified the data presented in the above table.</P></TD></TR></TABLE>
<P align=justify><B>Fiscal stability agreement</B></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 approximately 10% on
concentrates for projects with fiscal stability agreements predating 2002. The
Company has been advised that Pirquitas is subject to this export duty despite
contrary rights detailed under the 1998 fiscal stability agreement. The legality
of the export duty has been challenged and is currently under review by the
court in Argentina. In July 2010, the Company filed a claim in the provincial
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, and in April 2011 a government appeal
against this order was denied. </P>
<P align=justify>As of September 30, 2011 the Pirquitas mine has paid $6.6 million in duties, however, despite the order to cease payment, the Company has continued to accrue duties in full until the outcome of the claim is known with certainty. At September 30, 2011, the accrued liability totaled $12.3 million, of which $9.5 million has been included in cost of sales for the nine month period ended September 30, 2011. If these duties are recovered the benefit will be recognized in the statement of earnings for the full amount in the period recovery becomes virtually certain.</P>
<P align=justify>On October 26, 2011 the Argentina government announced a decree
that requires all funds from export sales to be repatriated to Argentina and
converted into Argentina Pesos within the Sole Foreign Exchange Market in
Argentina, and each transfer is subject to a 0.6% transfer tax. Although the
fiscal stability agreement also includes stability over foreign exchange
controls the government has removed such benefits. The Company will comply with
all laws and regulations, and is in the process of determining what impact this
has on the business.</P>
<P align=right>9</P>
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noShade SIZE=5>
<!--$$/page=--><A name=page_10></A>
<P align=justify><B>5. REVIEW OF PROJECTS</B></P>
<P align=justify><B>Pitarrilla, Mexico</B></P>
<P align=justify>A total of $2.7 million was spent during the quarter at the
wholly-owned Pitarrilla project located in the state of Durango, Mexico compared
to $9.8 million in the same quarter of the prior year.</P>
<P align=justify>On August 10, 2011 the Company committed a total of $25.0
million to accelerate the advancement of the Pitarrilla mining complex. A
feasibility study is scheduled to be completed in the first half of 2012 and if
approved, detailed design and construction will commence thereafter leading to
production in approximately two years. The $25.0 million allows for the purchase
of critical path process equipment and to date work has commenced on access
roads, water wells, and constructing the workers&#146; camp. The Company also
continues to build the management team, notably with the recruitment of a new
general manager. </P>
<P align=justify>A campaign of diamond drilling was also conducted during the
second and third quarters, with 83 boreholes and a total of 13,867 meters being
drilled. This drilling program was designed to provide in-fill assay data for an
enhanced estimate of the project&#146;s &#145;oxide&#146; silver resource as well as
geotechnical and metallurgical information that will be used for mine design and
optimization.</P>
<P align=justify>The Pitarrilla project currently comprises Probable Mineral
Reserves of 91.7 million ounces of silver, Measured and Indicated Resources
containing 551.6 million ounces of silver and Inferred Resources containing 82.2
million ounces of silver.</P>
<P align=justify><B>San Luis, Peru</B></P>
<P align=justify>A total of $1.3 million was spent during the quarter at the now wholly owned San Luis project in Peru compared to $1.2 million in the same quarter of the prior year. On July 28, 2011, the Company completed the previously announced agreement, and acquired the remaining 30% interest in the San Luis project from the Company&rsquo;s former joint venture partner, Esperanza Resources Corp. (&ldquo;Esperanza&rdquo;). Under the terms of the agreement, the Company paid $17.9 million in cash, transferred to Esperanza the 6.459 million shares of Esperanza that the Company owned, and granted to Esperanza a 1% net smelter return royalty on future revenues earned from the project. </P>
<P align=justify>Long-term land access negotiations advanced with two local
communities and work also continued on completing the required Environmental
Impact Study (&#147;EIS&#148;). The completion of the land access agreements and the EIS
will enable a construction decision to be made, which is expected to happen
during 2012.</P>
<P align=justify>During the quarter mineral prospecting on the property resulted
in the discovery of a set of northwesterly trending quartz veins which were
tested for their precious metal content with the collection of 265 rock-chip
samples. Assay results for these samples indicate sections of these veins are
significantly mineralized with gold and require further assessment by diamond
drilling. In addition the Company contracted an external consultant in porphyry
copper deposits to examine and assess the potential of the BP Zone. This zone of
widespread hydrothermal alteration and base metal mineralization is centered
about 4 kilometers southwest of the Ayelen vein-hosted gold-silver deposit. It
was concluded that the alteration and mineralization found at the BP Zone is
most likely related to a porphyry intrusion and warrants additional drill-testing. Exploration programs to further evaluate the
epithermal gold and porphyry copper targets are being planned. </P>
<P align=right>10</P>
<HR style="PAGE-BREAK-AFTER: always" align=center width="100%" color=black
noShade SIZE=5>
<!--$$/page=--><A name=page_11></A>
<P align=justify>The San Luis project comprises Proven and Probable Mineral
Reserves of 7.2 million ounces of silver and 0.29 million ounces of gold. These
Reserves are 100% attributable to the Company as of July 28, 2011, following its
consolidation of ownership.</P>
<P align=justify><B>Nazas, Mexico</B></P>
<P align=justify>A total of $1.6 million was spent during the quarter at the
Company&#146;s Nazas project, compared to $0.2 million during the same quarter of the
prior year. </P>
<P align=justify>Nazas, which until recently comprised three contiguous mineral
properties covering approximately 236 square kilometers, is centered about 16
kilometers east of the Pitarrilla project and covers an extensive system of
gold- and silver-bearing quartz veins and related hydrothermal alteration.
Several of these vein targets have now been tested, with approximately 4,187
meters being drilled in the third quarter for a total of 12,587 meters coming
from 22 boreholes. Early in the campaign, drill-holes intersected gold
mineralization in epithermal quartz veining that prompted the addition of seven
holes to the original program. </P>
<P align=justify>Subsequent to the quarter end the Company elected not to
continue its option to purchase the Navidad claim group at the centre of the
Nazas project area due to the fact that assay results from boreholes drilled on
the claims were insufficiently positive to justify the costs to maintain the
option to purchase agreement with the owner of the claims. Notwithstanding our
decision on the Navidad property, the geological information provided by this
year&#146;s drilling campaign will be utilized in the planning of future drilling on
the other two Nazas properties which are wholly owned by the Company. Our goal
at Nazas continues to be the discovery of precious metal-rich polymetallic
mineralization.</P>
<P align=justify><B>Diablillos, Argentina</B></P>
<P align=justify>A total of $0.7 million was spent during the quarter at the
Company&#146;s wholly owned Diablillos project (which is located 275 kilometers south
of the Pirquitas Mine in northwestern Argentina) compared to $0.7 million in the
same quarter of the prior year. </P>
<P align=justify>Expenditures for the quarter include administrative, property
taxes and camp maintenance costs. Fieldwork in the quarter mainly comprised rock
sampling to identify satellite zones of near-surface oxidized gold
mineralization that would complement the resources defined in the main Oculto
silver-gold deposit. A number of prospects were identified for follow-up
mechanized trenching and additional sampling, and depending on the results of
this work which will be completed in the fourth quarter, several of these
targets are expected to be drilled next year with shallow boreholes.</P>
<P align=justify>The Oculto deposit at the Diablillos project has an Indicated
Mineral Resource that contains 77.1 million ounces of silver and 0.64 million
ounces of gold, with additional Inferred Resources containing 6.3 million ounces
of silver and 0.19 million ounces of gold. </P>
<P align=justify><B>San Agustin, Mexico</B></P>
<P align=justify>A total of $0.2 million was spent during the quarter at the
Company&#146;s wholly-owned San Agustin project located in Durango State, Mexico
compared to the $0.5 million spent in the same quarter of the prior year. Most
of the third quarter expenditure was incurred as property holding costs and
other administrative expenses.</P>
<P align=right>11</P>
<HR style="PAGE-BREAK-AFTER: always" align=center width="100%" color=black
noShade SIZE=5>
<!--$$/page=--><A name=page_12></A>
<P align=justify>Advanced negotiations were conducted during the quarter with
three parties that control the property surface rights. Once land access
agreements are in place a 5,000 meter-long diamond drilling program will be
initiated, likely in the first quarter of 2012. The objective of the drilling
program will be to expand the near surface oxidized gold resource that was
partially defined in 2008 by Geologix Explorations which comprehensively
explored the property under an option agreement with the Company. Geologix was
unable to fulfill its option commitments and therefore the option was terminated
in early 2009 with the Company regaining 100% of the mineral rights to the
property. In addition to the proposed program of infill drilling, detailed
metallurgical studies will also be undertaken and will focus on gold recovery
characteristics of the oxide gold mineralization.</P>
<P align=justify>The San Agustin project currently comprises an Indicated
Mineral Resource of 47.8 million ounces of silver and 1.59 million ounces of
gold, along with an Inferred Resource of 36.9 million ounces of silver and 1.06
million ounces of gold. </P>
<P align=justify><B>6. SUMMARIZED FINANCIAL RESULTS</B></P>
<P align=justify>The following table sets out selected quarterly results, which
are stated in thousands of U.S. dollars, except per share amounts.</P>
<DIV>
<TABLE
style="BORDER-COLOR: black; FONT-SIZE: 7pt; BORDER-COLLAPSE: collapse; "
cellSpacing=0 cellPadding=0 width="100%" border=0>

  <TR vAlign=top>
    <TD align=left >&nbsp; </TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD width="4%" align=left nowrap>&nbsp; </TD>
    <TD width="2%" align=left nowrap >&nbsp;</TD>
    <TD width="1%" align=left nowrap >&nbsp;</TD>
    <TD width="4%" align=right nowrap><B>2011</B> </TD>
    <TD width="2%" align=left nowrap >&nbsp;</TD>
    <TD width="1%" align=left nowrap >&nbsp;</TD>
    <TD width="4%" align=left nowrap>&nbsp; </TD>
    <TD width="2%" align=left nowrap >&nbsp;</TD>
    <TD width="1%" align=left nowrap >&nbsp;</TD>
    <TD width="4%" align=left nowrap>&nbsp; </TD>
    <TD width="2%" align=left nowrap >&nbsp;</TD>
    <TD width="1%" align=left nowrap >&nbsp;</TD>
    <TD width="4%" align=right nowrap><B>2010</B> </TD>
    <TD width="2%" align=left nowrap >&nbsp;</TD>
    <TD width="1%" align=left nowrap >&nbsp;</TD>
    <TD width="4%" align=left nowrap>&nbsp; </TD>
    <TD width="2%" align=left nowrap >&nbsp;</TD>
    <TD width="1%" align=left nowrap >&nbsp;</TD>
    <TD width="4%" align=left nowrap>&nbsp; </TD>
    <TD width="2%" align=left nowrap >&nbsp;</TD>
    <TD width="1%" align=left nowrap >&nbsp;</TD>
    <TD width="4%" align=left nowrap>&nbsp; </TD>
    <TD width="2%" align=left nowrap >&nbsp;</TD>
    <TD width="1%" align=left nowrap >&nbsp;</TD>
    <TD width="4%" align=right nowrap><B>2009</B></TD>
    <TD width="2%" align=left nowrap ><B><SUP>(1)</SUP></B> </TD>
    <TD width="1%" align=left nowrap >&nbsp;</TD>
    <TD width="4%" align=left nowrap>&nbsp; </TD>
    <TD width="2%" align=left nowrap >&nbsp;</TD>
    <TD width="1%" align=left nowrap >&nbsp;</TD>
    <TD width="4%" align=left nowrap>&nbsp; </TD>
    <TD align=left width="2%" >&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left
      >&nbsp; </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
    >&nbsp;</TD>
    <TD
      width="4%" align=right nowrap style="BORDER-BOTTOM: #000000 1px solid"><B>30-Sep </B></TD>
    <TD width="2%" align=left nowrap style="BORDER-BOTTOM: #000000 1px solid"
    >&nbsp;</TD>
    <TD width="1%" align=left nowrap style="BORDER-BOTTOM: #000000 1px solid"
    >&nbsp;</TD>
    <TD width="4%" align=right nowrap style="BORDER-BOTTOM: #000000 1px solid"
    ><STRONG>30-Jun </STRONG></TD>
    <TD width="2%" align=left nowrap style="BORDER-BOTTOM: #000000 1px solid"
    >&nbsp;</TD>
    <TD width="1%" align=left nowrap style="BORDER-BOTTOM: #000000 1px solid"
    >&nbsp;</TD>
    <TD width="4%" align=right nowrap style="BORDER-BOTTOM: #000000 1px solid"
    ><STRONG>31-Mar&nbsp;</STRONG>&nbsp;&nbsp;&nbsp;</TD>
    <TD width="2%" align=left nowrap style="BORDER-BOTTOM: #000000 1px solid"
    >&nbsp;</TD>
    <TD width="1%" align=left nowrap style="BORDER-BOTTOM: #000000 1px solid"
    >&nbsp;</TD>
    <TD width="4%" align=right nowrap style="BORDER-BOTTOM: #000000 1px solid"
    ><STRONG>31-Dec </STRONG></TD>
    <TD width="2%" align=left nowrap style="BORDER-BOTTOM: #000000 1px solid"
    >&nbsp;</TD>
    <TD width="1%" align=left nowrap style="BORDER-BOTTOM: #000000 1px solid"
    >&nbsp;</TD>
    <TD width="4%" align=right nowrap style="BORDER-BOTTOM: #000000 1px solid"
    ><STRONG>30-Sep</STRONG>&nbsp;&nbsp;</TD>
    <TD width="2%" align=left nowrap style="BORDER-BOTTOM: #000000 1px solid"
    >&nbsp;</TD>
    <TD width="1%" align=left nowrap style="BORDER-BOTTOM: #000000 1px solid"
    >&nbsp;</TD>
    <TD
      width="4%" align=right nowrap style="BORDER-BOTTOM: #000000 1px solid"><B>30-Jun</B> </TD>
    <TD width="2%" align=left nowrap style="BORDER-BOTTOM: #000000 1px solid"
    >&nbsp;</TD>
    <TD width="1%" align=left nowrap style="BORDER-BOTTOM: #000000 1px solid"
    >&nbsp;</TD>
    <TD
      width="4%" align=right nowrap style="BORDER-BOTTOM: #000000 1px solid"><B>31-Mar</B> </TD>
    <TD width="2%" align=left nowrap style="BORDER-BOTTOM: #000000 1px solid"
    >&nbsp;</TD>
    <TD width="1%" align=left nowrap style="BORDER-BOTTOM: #000000 1px solid"
    >&nbsp;</TD>
    <TD
      width="4%" align=right nowrap style="BORDER-BOTTOM: #000000 1px solid"><B>31-Dec</B> </TD>
    <TD width="2%" align=left nowrap style="BORDER-BOTTOM: #000000 1px solid"
    >&nbsp;</TD>
    <TD width="1%" align=left nowrap style="BORDER-BOTTOM: #000000 1px solid"
    >&nbsp;</TD>
    <TD
      width="4%" align=right nowrap style="BORDER-BOTTOM: #000000 1px solid"><B>30-Sep</B> </TD>
    <TD width="2%" align=left nowrap style="BORDER-BOTTOM: #000000 1px solid"
    >&nbsp;</TD>
    <TD width="1%" align=left nowrap style="BORDER-BOTTOM: #000000 1px solid"
    >&nbsp;</TD>
    <TD
      width="4%" align=right nowrap style="BORDER-BOTTOM: #000000 1px solid"><B>30-Jun</B> </TD>
    <TD width="2%" align=left nowrap style="BORDER-BOTTOM: #000000 1px solid"
    >&nbsp;</TD>
    <TD width="1%" align=left nowrap style="BORDER-BOTTOM: #000000 1px solid"
    >&nbsp;</TD>
    <TD
      width="4%" align=right nowrap style="BORDER-BOTTOM: #000000 1px solid"><B>31-Mar</B> </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="2%"
    >&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left bgColor=#e6efff >Revenue </TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="4%" bgColor=#e6efff>26,152 </TD>
    <TD vAlign=bottom align=left width="2%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="4%" bgColor=#e6efff>47,271 </TD>
    <TD vAlign=bottom align=left width="2%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="4%" bgColor=#e6efff>60,053 </TD>
    <TD vAlign=bottom align=left width="2%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="4%" bgColor=#e6efff>45,077 </TD>
    <TD vAlign=bottom align=left width="2%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="4%" bgColor=#e6efff>41,557 </TD>
    <TD vAlign=bottom align=left width="2%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="4%" bgColor=#e6efff>14,091 </TD>
    <TD vAlign=bottom align=left width="2%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="4%" bgColor=#e6efff>11,531 </TD>
    <TD vAlign=bottom align=left width="2%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="4%" bgColor=#e6efff>5,442 </TD>
    <TD vAlign=bottom align=left width="2%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="4%" bgColor=#e6efff>- </TD>
    <TD vAlign=bottom align=left width="2%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="4%" bgColor=#e6efff>- </TD>
    <TD vAlign=bottom align=left width="2%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="4%" bgColor=#e6efff>- </TD>
    <TD vAlign=bottom align=left width="2%"
    bgColor=#e6efff>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left >Income (loss) from mine operations </TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD vAlign=bottom align=right width="4%">11,492 </TD>
    <TD vAlign=bottom align=left width="2%" >&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%" >&nbsp;</TD>
    <TD vAlign=bottom align=right width="4%">15,838 </TD>
    <TD vAlign=bottom align=left width="2%" >&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%" >&nbsp;</TD>
    <TD vAlign=bottom align=right width="4%">27,859 </TD>
    <TD vAlign=bottom align=left width="2%" >&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%" >&nbsp;</TD>
    <TD vAlign=bottom align=right width="4%">24,975 </TD>
    <TD vAlign=bottom align=left width="2%" >&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%" >&nbsp;</TD>
    <TD vAlign=bottom align=right width="4%">7,426 </TD>
    <TD vAlign=bottom align=left width="2%" >&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%" >&nbsp;</TD>
    <TD vAlign=bottom align=right width="4%">(1,673</TD>
    <TD vAlign=bottom align=left width="2%" >) </TD>
    <TD vAlign=bottom align=left width="1%" >&nbsp;</TD>
    <TD vAlign=bottom align=right width="4%">(16,594</TD>
    <TD vAlign=bottom align=left width="2%" >) </TD>
    <TD vAlign=bottom align=left width="1%" >&nbsp;</TD>
    <TD vAlign=bottom align=right width="4%">(2,523</TD>
    <TD vAlign=bottom align=left width="2%" >) </TD>
    <TD vAlign=bottom align=left width="1%" >&nbsp;</TD>
    <TD vAlign=bottom align=right width="4%">- </TD>
    <TD vAlign=bottom align=left width="2%" >&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%" >&nbsp;</TD>
    <TD vAlign=bottom align=right width="4%">- </TD>
    <TD vAlign=bottom align=left width="2%" >&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%" >&nbsp;</TD>
    <TD vAlign=bottom align=right width="4%">- </TD>
    <TD vAlign=bottom align=left width="2%" >&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left bgColor=#e6efff >Net income (loss) </TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="4%" bgColor=#e6efff>21,836 </TD>
    <TD vAlign=bottom align=left width="2%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="4%" bgColor=#e6efff>45,765 </TD>
    <TD vAlign=bottom align=left width="2%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="4%" bgColor=#e6efff>9,943 </TD>
    <TD vAlign=bottom align=left width="2%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="4%" bgColor=#e6efff>367,164 </TD>
    <TD vAlign=bottom align=left width="2%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="4%" bgColor=#e6efff>(10,407</TD>
    <TD vAlign=bottom align=left width="2%"  bgColor=#e6efff>)
</TD>
    <TD vAlign=bottom align=left width="1%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="4%" bgColor=#e6efff>(9,385</TD>
    <TD vAlign=bottom align=left width="2%"  bgColor=#e6efff>)
</TD>
    <TD vAlign=bottom align=left width="1%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="4%" bgColor=#e6efff>(3,376</TD>
    <TD vAlign=bottom align=left width="2%"  bgColor=#e6efff>)
</TD>
    <TD vAlign=bottom align=left width="1%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="4%" bgColor=#e6efff>(9,126</TD>
    <TD vAlign=bottom align=left width="2%"  bgColor=#e6efff>)
</TD>
    <TD vAlign=bottom align=left width="1%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="4%" bgColor=#e6efff>(95</TD>
    <TD vAlign=bottom align=left width="2%"  bgColor=#e6efff>)
</TD>
    <TD vAlign=bottom align=left width="1%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="4%" bgColor=#e6efff>(1,374</TD>
    <TD vAlign=bottom align=left width="2%"  bgColor=#e6efff>)
</TD>
    <TD vAlign=bottom align=left width="1%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="4%" bgColor=#e6efff>(2,598</TD>
    <TD vAlign=bottom align=left width="2%"  bgColor=#e6efff>)
  </TD></TR>
  <TR>
    <TD >&nbsp; </TD>
    <TD width="1%" >&nbsp;</TD>
    <TD vAlign=bottom width="4%">&nbsp; </TD>
    <TD vAlign=bottom width="2%" >&nbsp;</TD>
    <TD vAlign=bottom width="1%" >&nbsp;</TD>
    <TD vAlign=bottom width="4%">&nbsp; </TD>
    <TD vAlign=bottom width="2%" >&nbsp;</TD>
    <TD vAlign=bottom width="1%" >&nbsp;</TD>
    <TD vAlign=bottom width="4%">&nbsp; </TD>
    <TD vAlign=bottom width="2%" >&nbsp;</TD>
    <TD vAlign=bottom width="1%" >&nbsp;</TD>
    <TD vAlign=bottom width="4%">&nbsp; </TD>
    <TD vAlign=bottom width="2%" >&nbsp;</TD>
    <TD vAlign=bottom width="1%" >&nbsp;</TD>
    <TD vAlign=bottom width="4%">&nbsp; </TD>
    <TD vAlign=bottom width="2%" >&nbsp;</TD>
    <TD vAlign=bottom width="1%" >&nbsp;</TD>
    <TD vAlign=bottom width="4%">&nbsp; </TD>
    <TD vAlign=bottom width="2%" >&nbsp;</TD>
    <TD vAlign=bottom width="1%" >&nbsp;</TD>
    <TD vAlign=bottom width="4%">&nbsp; </TD>
    <TD vAlign=bottom width="2%" >&nbsp;</TD>
    <TD vAlign=bottom width="1%" >&nbsp;</TD>
    <TD vAlign=bottom width="4%">&nbsp; </TD>
    <TD vAlign=bottom width="2%" >&nbsp;</TD>
    <TD vAlign=bottom width="1%" >&nbsp;</TD>
    <TD vAlign=bottom width="4%">&nbsp; </TD>
    <TD vAlign=bottom width="2%" >&nbsp;</TD>
    <TD vAlign=bottom width="1%" >&nbsp;</TD>
    <TD vAlign=bottom width="4%">&nbsp; </TD>
    <TD vAlign=bottom width="2%" >&nbsp;</TD>
    <TD vAlign=bottom width="1%" >&nbsp;</TD>
    <TD vAlign=bottom width="4%">&nbsp; </TD>
    <TD vAlign=bottom width="2%" >&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left bgColor=#e6efff >Basic earnings (loss) per
      share </TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="4%" bgColor=#e6efff>0.27 </TD>
    <TD vAlign=bottom align=left width="2%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="4%" bgColor=#e6efff>0.57 </TD>
    <TD vAlign=bottom align=left width="2%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="4%" bgColor=#e6efff>0.12 </TD>
    <TD vAlign=bottom align=left width="2%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="4%" bgColor=#e6efff>4.63 </TD>
    <TD vAlign=bottom align=left width="2%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="4%" bgColor=#e6efff>(0.13</TD>
    <TD vAlign=bottom align=left width="2%"  bgColor=#e6efff>)
</TD>
    <TD vAlign=bottom align=left width="1%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="4%" bgColor=#e6efff>(0.12</TD>
    <TD vAlign=bottom align=left width="2%"  bgColor=#e6efff>)
</TD>
    <TD vAlign=bottom align=left width="1%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="4%" bgColor=#e6efff>(0.04</TD>
    <TD vAlign=bottom align=left width="2%"  bgColor=#e6efff>)
</TD>
    <TD vAlign=bottom align=left width="1%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="4%" bgColor=#e6efff>(0.13</TD>
    <TD vAlign=bottom align=left width="2%"  bgColor=#e6efff>)
</TD>
    <TD vAlign=bottom align=left width="1%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="4%" bgColor=#e6efff>(0.00</TD>
    <TD vAlign=bottom align=left width="2%"  bgColor=#e6efff>)
</TD>
    <TD vAlign=bottom align=left width="1%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="4%" bgColor=#e6efff>(0.02</TD>
    <TD vAlign=bottom align=left width="2%"  bgColor=#e6efff>)
</TD>
    <TD vAlign=bottom align=left width="1%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="4%" bgColor=#e6efff>(0.04</TD>
    <TD vAlign=bottom align=left width="2%"  bgColor=#e6efff>)
  </TD></TR>
  <TR vAlign=top>
    <TD align=left >Dliuted earnings (loss) per share </TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD vAlign=bottom align=right width="4%">0.27 </TD>
    <TD vAlign=bottom align=left width="2%" >&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%" >&nbsp;</TD>
    <TD vAlign=bottom align=right width="4%">0.57 </TD>
    <TD vAlign=bottom align=left width="2%" >&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%" >&nbsp;</TD>
    <TD vAlign=bottom align=right width="4%">0.12 </TD>
    <TD vAlign=bottom align=left width="2%" >&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%" >&nbsp;</TD>
    <TD vAlign=bottom align=right width="4%">4.60 </TD>
    <TD vAlign=bottom align=left width="2%" >&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%" >&nbsp;</TD>
    <TD vAlign=bottom align=right width="4%">(0.13</TD>
    <TD vAlign=bottom align=left width="2%" >) </TD>
    <TD vAlign=bottom align=left width="1%" >&nbsp;</TD>
    <TD vAlign=bottom align=right width="4%">(0.12</TD>
    <TD vAlign=bottom align=left width="2%" >) </TD>
    <TD vAlign=bottom align=left width="1%" >&nbsp;</TD>
    <TD vAlign=bottom align=right width="4%">(0.04</TD>
    <TD vAlign=bottom align=left width="2%" >) </TD>
    <TD vAlign=bottom align=left width="1%" >&nbsp;</TD>
    <TD vAlign=bottom align=right width="4%">(0.13</TD>
    <TD vAlign=bottom align=left width="2%" >) </TD>
    <TD vAlign=bottom align=left width="1%" >&nbsp;</TD>
    <TD vAlign=bottom align=right width="4%">(0.00</TD>
    <TD vAlign=bottom align=left width="2%" >) </TD>
    <TD vAlign=bottom align=left width="1%" >&nbsp;</TD>
    <TD vAlign=bottom align=right width="4%">(0.02</TD>
    <TD vAlign=bottom align=left width="2%" >) </TD>
    <TD vAlign=bottom align=left width="1%" >&nbsp;</TD>
    <TD vAlign=bottom align=right width="4%">(0.04</TD>
    <TD vAlign=bottom align=left width="2%" >) </TD></TR>
  <TR>
    <TD bgColor=#e6efff >&nbsp; </TD>
    <TD width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom width="4%" bgColor=#e6efff>&nbsp; </TD>
    <TD vAlign=bottom width="2%"  bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom width="4%" bgColor=#e6efff>&nbsp; </TD>
    <TD vAlign=bottom width="2%"  bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom width="4%" bgColor=#e6efff>&nbsp; </TD>
    <TD vAlign=bottom width="2%"  bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom width="4%" bgColor=#e6efff>&nbsp; </TD>
    <TD vAlign=bottom width="2%"  bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom width="4%" bgColor=#e6efff>&nbsp; </TD>
    <TD vAlign=bottom width="2%"  bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom width="4%" bgColor=#e6efff>&nbsp; </TD>
    <TD vAlign=bottom width="2%"  bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom width="4%" bgColor=#e6efff>&nbsp; </TD>
    <TD vAlign=bottom width="2%"  bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom width="4%" bgColor=#e6efff>&nbsp; </TD>
    <TD vAlign=bottom width="2%"  bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom width="4%" bgColor=#e6efff>&nbsp; </TD>
    <TD vAlign=bottom width="2%"  bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom width="4%" bgColor=#e6efff>&nbsp; </TD>
    <TD vAlign=bottom width="2%"  bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom width="4%" bgColor=#e6efff>&nbsp; </TD>
    <TD vAlign=bottom width="2%"  bgColor=#e6efff>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left >Cash and cash equivalents </TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD vAlign=bottom align=right width="4%">355,903 </TD>
    <TD vAlign=bottom align=left width="2%" >&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%" >&nbsp;</TD>
    <TD vAlign=bottom align=right width="4%">368,759 </TD>
    <TD vAlign=bottom align=left width="2%" >&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%" >&nbsp;</TD>
    <TD vAlign=bottom align=right width="4%">260,733 </TD>
    <TD vAlign=bottom align=left width="2%" >&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%" >&nbsp;</TD>
    <TD vAlign=bottom align=right width="4%">232,311 </TD>
    <TD vAlign=bottom align=left width="2%" >&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%" >&nbsp;</TD>
    <TD vAlign=bottom align=right width="4%">35,839 </TD>
    <TD vAlign=bottom align=left width="2%" >&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%" >&nbsp;</TD>
    <TD vAlign=bottom align=right width="4%">57,719 </TD>
    <TD vAlign=bottom align=left width="2%" >&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%" >&nbsp;</TD>
    <TD vAlign=bottom align=right width="4%">102,995 </TD>
    <TD vAlign=bottom align=left width="2%" >&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%" >&nbsp;</TD>
    <TD vAlign=bottom align=right width="4%">26,659 </TD>
    <TD vAlign=bottom align=left width="2%" >&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%" >&nbsp;</TD>
    <TD vAlign=bottom align=right width="4%">42,886 </TD>
    <TD vAlign=bottom align=left width="2%" >&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%" >&nbsp;</TD>
    <TD vAlign=bottom align=right width="4%">52,835 </TD>
    <TD vAlign=bottom align=left width="2%" >&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%" >&nbsp;</TD>
    <TD vAlign=bottom align=right width="4%">107,723 </TD>
    <TD vAlign=bottom align=left width="2%" >&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left bgColor=#e6efff >Total assets </TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD width="4%" align=right vAlign=bottom nowrap bgColor=#e6efff>1,249,570 </TD>
    <TD width="2%" align=left vAlign=bottom nowrap
    bgColor=#e6efff>&nbsp;</TD>
    <TD width="1%" align=left vAlign=bottom nowrap
    bgColor=#e6efff>&nbsp;</TD>
    <TD width="4%" align=right vAlign=bottom nowrap bgColor=#e6efff>1,252,360 </TD>
    <TD width="2%" align=left vAlign=bottom nowrap
    bgColor=#e6efff>&nbsp;</TD>
    <TD width="1%" align=left vAlign=bottom nowrap
    bgColor=#e6efff>&nbsp;</TD>
    <TD width="4%" align=right vAlign=bottom nowrap bgColor=#e6efff>1,178,644 </TD>
    <TD width="2%" align=left vAlign=bottom nowrap
    bgColor=#e6efff>&nbsp;</TD>
    <TD width="1%" align=left vAlign=bottom nowrap
    bgColor=#e6efff>&nbsp;</TD>
    <TD width="4%" align=right vAlign=bottom nowrap bgColor=#e6efff>1,147,990 </TD>
    <TD width="2%" align=left vAlign=bottom nowrap
    bgColor=#e6efff>&nbsp;</TD>
    <TD width="1%" align=left vAlign=bottom nowrap
    bgColor=#e6efff>&nbsp;</TD>
    <TD width="4%" align=right vAlign=bottom nowrap bgColor=#e6efff>717,749 </TD>
    <TD width="2%" align=left vAlign=bottom nowrap
    bgColor=#e6efff>&nbsp;</TD>
    <TD width="1%" align=left vAlign=bottom nowrap
    bgColor=#e6efff>&nbsp;</TD>
    <TD width="4%" align=right vAlign=bottom nowrap bgColor=#e6efff>701,356 </TD>
    <TD width="2%" align=left vAlign=bottom nowrap
    bgColor=#e6efff>&nbsp;</TD>
    <TD width="1%" align=left vAlign=bottom nowrap
    bgColor=#e6efff>&nbsp;</TD>
    <TD width="4%" align=right vAlign=bottom nowrap bgColor=#e6efff>721,795 </TD>
    <TD width="2%" align=left vAlign=bottom nowrap
    bgColor=#e6efff>&nbsp;</TD>
    <TD width="1%" align=left vAlign=bottom nowrap
    bgColor=#e6efff>&nbsp;</TD>
    <TD width="4%" align=right vAlign=bottom nowrap bgColor=#e6efff>749,925 </TD>
    <TD width="2%" align=left vAlign=bottom nowrap
    bgColor=#e6efff>&nbsp;</TD>
    <TD width="1%" align=left vAlign=bottom nowrap
    bgColor=#e6efff>&nbsp;</TD>
    <TD width="4%" align=right vAlign=bottom nowrap bgColor=#e6efff>718,259 </TD>
    <TD width="2%" align=left vAlign=bottom nowrap
    bgColor=#e6efff>&nbsp;</TD>
    <TD width="1%" align=left vAlign=bottom nowrap
    bgColor=#e6efff>&nbsp;</TD>
    <TD width="4%" align=right vAlign=bottom nowrap bgColor=#e6efff>653,622 </TD>
    <TD width="2%" align=left vAlign=bottom nowrap
    bgColor=#e6efff>&nbsp;</TD>
    <TD width="1%" align=left vAlign=bottom nowrap
    bgColor=#e6efff>&nbsp;</TD>
    <TD width="4%" align=right vAlign=bottom nowrap bgColor=#e6efff>650,512 </TD>
    <TD vAlign=bottom align=left width="2%"
    bgColor=#e6efff>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left >Working capital </TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD vAlign=bottom align=right width="4%">428,627 </TD>
    <TD vAlign=bottom align=left width="2%" >&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%" >&nbsp;</TD>
    <TD vAlign=bottom align=right width="4%">418,812 </TD>
    <TD vAlign=bottom align=left width="2%" >&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%" >&nbsp;</TD>
    <TD vAlign=bottom align=right width="4%">335,764 </TD>
    <TD vAlign=bottom align=left width="2%" >&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%" >&nbsp;</TD>
    <TD vAlign=bottom align=right width="4%">306,891 </TD>
    <TD vAlign=bottom align=left width="2%" >&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%" >&nbsp;</TD>
    <TD vAlign=bottom align=right width="4%">65,201 </TD>
    <TD vAlign=bottom align=left width="2%" >&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%" >&nbsp;</TD>
    <TD vAlign=bottom align=right width="4%">89,429 </TD>
    <TD vAlign=bottom align=left width="2%" >&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%" >&nbsp;</TD>
    <TD vAlign=bottom align=right width="4%">117,441 </TD>
    <TD vAlign=bottom align=left width="2%" >&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%" >&nbsp;</TD>
    <TD vAlign=bottom align=right width="4%">24,515 </TD>
    <TD vAlign=bottom align=left width="2%" >&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%" >&nbsp;</TD>
    <TD vAlign=bottom align=right width="4%">27,036 </TD>
    <TD vAlign=bottom align=left width="2%" >&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%" >&nbsp;</TD>
    <TD vAlign=bottom align=right width="4%">37,890 </TD>
    <TD vAlign=bottom align=left width="2%" >&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%" >&nbsp;</TD>
    <TD vAlign=bottom align=right width="4%">92,440 </TD>
    <TD vAlign=bottom align=left width="2%" >&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left bgColor=#e6efff >Convertible notes </TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="4%" bgColor=#e6efff>123,418 </TD>
    <TD vAlign=bottom align=left width="2%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="4%" bgColor=#e6efff>122,612 </TD>
    <TD vAlign=bottom align=left width="2%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="4%" bgColor=#e6efff>118,924 </TD>
    <TD vAlign=bottom align=left width="2%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="4%" bgColor=#e6efff>118,201 </TD>
    <TD vAlign=bottom align=left width="2%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="4%" bgColor=#e6efff>114,517 </TD>
    <TD vAlign=bottom align=left width="2%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="4%" bgColor=#e6efff>113,981 </TD>
    <TD vAlign=bottom align=left width="2%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="4%" bgColor=#e6efff>110,429 </TD>
    <TD vAlign=bottom align=left width="2%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="4%" bgColor=#e6efff>112,815 </TD>
    <TD vAlign=bottom align=left width="2%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="4%" bgColor=#e6efff>109,563 </TD>
    <TD vAlign=bottom align=left width="2%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="4%" bgColor=#e6efff>109,396 </TD>
    <TD vAlign=bottom align=left width="2%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=left width="1%"
    bgColor=#e6efff>&nbsp;</TD>
    <TD vAlign=bottom align=right width="4%" bgColor=#e6efff>106,217 </TD>
    <TD vAlign=bottom align=left width="2%"
    bgColor=#e6efff>&nbsp;</TD></TR></TABLE></DIV><BR>
<TABLE
style="BORDER-COLOR: black; FONT-SIZE: 10pt; BORDER-COLLAPSE: collapse; "
cellSpacing=0 cellPadding=0 width="100%" border=0 BCLLIST>

  <TR>
    <TD vAlign=top width="5%">(1) </TD>
    <TD>
      <P align=justify>Information for 2009 is presented in accordance with
      Canadian GAAP and was not required to be restated to
  IFRS.</P></TD></TR></TABLE>
<P align=justify><B>Three months ended September 30, 2011 compared to the three
months ended September 30, 2010</B></P>
<P align=justify>Net income for the three months ended September 30, 2011 was
$21.8 million ($0.27 per share) compared to a net loss of $10.4 million ($0.13
per share) in the third quarter of 2010. The following is a summary and
discussion on significant components of income and expenses recorded during the
quarter compared to the same period in the prior year.</P>
<P align=justify>During the third quarter 2011 the Company recorded total
revenues from the Pirquitas Mine of $26.2 million from the sale of 0.7 million
ounces of silver. Shipments made in the period realized an average price of
$39.88 per ounce, excluding the impact of quarter end price adjustments, and 3.9
million pounds of zinc realized an average price of $1.01 per pound. This is
compared with the third quarter of 2010 which recorded revenues of $41.6 million
from the sale of 2.3 million ounces of silver at an average realized price of
$19.43, and no zinc sales. The reduction in sales recognised is reflective of
the volume of silver ounces sold, partially offset by the significant increase
in the price of silver. Zinc pounds sold in the third quarter of 2011
contributed $2.8 million to total revenues.</P>
<P align=justify>Since the mine&#146;s initial start-up silver concentrates have been
sold pursuant to a sales contract to a single customer. The contract was
terminated during the quarter and as a result volumes of silver concentrate sold
were significantly lower than prior quarters. Zinc concentrate sales were
unaffected. Subsequent to the quarter individual spot sales of silver concentrate have been
completed, and the Company is continuing negotiations to establish long-term
contracts with various counterparties.</P>
<P align=right>12</P>
<HR style="PAGE-BREAK-AFTER: always" align=center width="100%" color=black
noShade SIZE=5>
<!--$$/page=--><A name=page_13></A>
<P align=justify>Cost of sales for the third quarter 2011 was $14.7 million
compared to $34.1 million in the third quarter of 2010. This resulted in income
from mine operations of $11.5 million in the third quarter of 2011 compared to
$7.4 million in the third quarter of 2010. The reduction in cost of sales is
primarily due to the volume of product sold. Margins improved significantly,
primarily as a result of higher silver prices. </P>
<P align=justify>General and administration expenses for the three months ended September 30, 2011 were $6.7 million compared to $6.3 million in 2010. The increase recorded is primarily due to higher employee related costs related to growth in the Company&rsquo;s headcount through the last year, severance payments, higher travel and corporate administrative expenses, partially offset by lower valuations of certain share-based compensation arrangements which are closely aligned to the Company&rsquo;s share price.</P>
<P align=justify>Exploration costs of $1.7 million for the third quarter of 2011
relate primarily to the drilling program at the Pirquitas mine which primarily
occurred in 2011. Such costs at the operating property are expensed in line with
the Company&#146;s accounting policy.</P>
<P align=justify>During the quarter the Company completed the sale of the Bowdens project in Australia to Kingsgate Consolidated Limited (&ldquo;Kingsgate&rdquo;). The Company received $35.0 million in cash, 3.4 million shares of Kingsgate (with an approximate value of $25.6 million), and will receive two additional cash payments of AUD5 million on each of December 31, 2011 and June 30, 2012. Total consideration was approximately $70.5 million, and the Company recognised a gain on sale of $51.4 million (after tax gain of $36.4 million).</P>
<P align=justify>Other income (expenses) in the third quarter of 2011 was a net
gain of $7.4 million compared to net losses of $2.0 million in the third quarter
of 2010. The net gain in 2011 included: a gain of $5.4 million from the
re-measurement of financial instruments held at fair value through profit and
loss (&#147;FVTPL&#148;); a dilution gain of $1.8 million resulting from a private
placement made by Pretium Resources Inc. (&#147;Pretium&#148;), in which the Company did
not participate, which diluted the Company&#146;s interest from 28.86% to 28.39%; and
a $5.5 million gain recognised in the income statement following the disposal of
Esperanza shares as part of the acquisition of the non-controlling interest (any
unrecognised gains in relation to these securities had previously been recorded
in other comprehensive income). Also, in October 2011 the Company decided not to
continue with an option to purchase agreement for the Navidad claim group that
formed part of the Nazas property in Mexico, and as a result wrote off all $4.5
million costs associated with this specific mineral property. The net loss in
2010 primarily comprised a loss of $2.7 million from the re-measurement of
financial instruments held at FVTPL.</P>
<P align=justify>The Company recorded a foreign exchange loss for the three
months ended September 30, 2011 of $5.2 million compared to a loss of $6.2
million in the same period of 2010. The Company&#146;s main exposure to foreign
exchange risk is related to net monetary assets denominated in Canadian dollars
and Argentinean pesos. Canadian dollar assets generated losses due to the
weakening of the Canadian dollar against the U.S. dollar, and a weakening
Argentine Peso against the U.S. dollar, on a net Peso asset balance.</P>
<P align=justify>In the three months ended September 30, 2011 there was an
income tax expense of $30.9 million compared to a recovery of $0.8 million in
the third quarter of 2010. Of the total tax expense in the third quarter of
2011, $15.3 million reflects the tax expense following the sale of the Bowdens
property, and the balance relates to changes in deferred tax liabilities.</P>
<P align=justify><B>Nine months ended September 30, 2011 compared to the nine
months ended September 30, 2010</B></P>
<P align=justify>Net earnings for the nine months ended September 30, 2011 were
$77.5 million ($0.97 per share) compared to a net loss of $23.2 million ($0.30
per share) in the same period of 2010. The following is a summary and discussion on significant components of income and expenses
recorded during the nine month period compared to the same period in the prior
year.</P>
<P align=right>13</P>
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<P align=justify>During the nine months ended September 30, 2011 the Company
recorded total revenues from the Pirquitas mine of $133.5 million from the sale
of 4.3 million ounces of silver. Shipments made in the period realized and
average price of $36.29 per ounce, excluding the impact of quarter end price
adjustments, and 9.7 million pounds of zinc realized an average price of $1.04
per pound. This is compared with the first nine months of 2010 which recorded
revenues of $67.2 million from the sale of 4.3 million ounces of silver with an
average realized price of $18.32, with no zinc sales. The relative increase in
sales is reflective of the significant increase in the price of silver as well
as zinc pounds sold.</P>
<P align=justify>Cost of sales for the nine months ended September 30, 2011 was
$78.3 million compared to $78.0 million in the first nine months of 2010. This
resulted in earnings from mine operations of $55.2 million in 2011 compared to a
loss of $10.8 million in the first nine months of 2010. Cost of sales remained
consistent and margins improved ostensibly as a result of higher silver
prices.</P>
<P align=justify>General and administration expenses for the nine months ended
September 30, 2011 were $20.3 million compared to $19.6 million in 2010. There
was an increase in employee related costs related to growth in the Company&#146;s
headcount through 2011, higher travel and corporate administrative expenses,
partially offset by lower consulting costs.</P>
<P align=justify>Exploration costs of $5.1 million for the first nine months of
2011 relate primarily to the drilling program at the Pirquitas mine which
primarily occurred in 2011.</P>
<P align=justify>The gain on sale of mineral properties recorded in the nine
months ended September 30, 2011 was primarily from the aforementioned sale of
the Bowdens property in Australia for which a pre-tax gain of $51.4 million was
recorded. In the nine months ended September 30, 2010 the Company recorded a
pre-tax gain on sale of mineral properties of $13.1 million following the sale
of the Company&#146;s 100% interest in the Silvertip property located in British
Columbia, Canada. </P>
<P align=justify>In the nine months ended September 30, 2011 the Company partially disposed of its interest in its associate Pretium, by selling 11.5 million units (each unit comprised one common share of Pretium held by the Company and one half of a warrant to purchase an additional share of Pretium within a year for C$12.50) for gross proceeds of $120.1 million resulting in a pre-tax gain of $39.3 million.</P>
<P align=justify>Other income (expenses) in the nine months ended September 30, 2011 totalled a gain of $13.8 million compared to a gain of $12.4 million in the same period of 2010. The main constituents in 2011 were; a gain of $13.5 million from the re-measurement of financial instruments held at FVTPL; a gain of $2.4 million from the reversal of a previous impairment loss on the Aurcana Corporation (&ldquo;Aurcana&rdquo;) convertible debenture; the above noted dilution gain of $1.8 million; gain on disposals of marketable securities of $5.5 million; and offset by the Company&rsquo;s share of losses of its associate of $4.6 million. Also, in October 2011 the Company decided not to continue with an option to purchase agreement for the Navidad claim group that formed the central part of the Nazas property in Mexico, and as a result wrote off all $4.5 million costs associated with this specific mineral property. In the nine months ended September 30, 2010 there was a gain on the re-measurement of financial instruments held at FVTPL of $9.2 million and a gain on the sale of marketable securities of $3.1 million.</P>
<P align=justify>The Company recorded a foreign exchange loss for the nine
months ended September 30, 2011 of $3.1 million compared to a loss of $6.9
million in the same period of 2010. The Company&#146;s main exposure to foreign
exchange risk is related to net monetary assets denominated in Canadian dollars
and Argentinean pesos. Canadian dollar assets generated losses due to the
weakening of the Canadian dollar against the U.S. dollar, and a weakening
Argentine Peso against the U.S. dollar, on a net Peso asset balance.</P>
<P align=right>14</P>
<HR style="PAGE-BREAK-AFTER: always" align=center width="100%" color=black
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<P align=justify>In the nine months ended September 30, 2011 there was an income
tax expense of $41.7 million compared to a recovery of $0.2 million in the first
nine months of 2010. Of the total tax expense in 2011, $9.7 million is in
relation to the Pirquitas mining operations, $15.0 million at the corporate
level largely recognising the current tax on the sale of the Pretium shares, and
$15.3 million of taxes payable in relation to the disposition of the Bowdens
property.</P>
<P align=justify><B>7. LIQUIDITY</B></P>
<P align=justify>At September 30, 2011, the Company held $355.9 million in cash
and cash equivalents and $36.4 million in marketable securities compared to
$232.3 million and $33.5 million respectively at December 31, 2010. The increase
in cash for the nine months ended September 30, 2011 was the result of cash
inflows from operations of $12.9 million, $19.2 million generated from financing
activities, and $91.5 million from investing activities.</P>
<P align=justify><B>Operating Activities<BR></B>The Company recorded a net cash
inflow from operations of $12.9 million in the nine months ended September 30,
2011, compared to an outflow of $18.8 million in the same period in 2010.</P>
<p align="justify">The inflow in 2011 was partly from positive cash flows from the Pirquitas mine of approximately $39 million, offset by a net cash outflow from corporate activities. These involved general and administration cash payments of $15 million, interest payments of $6 million, tax installments of $14 million and the receipt of $8 million from Aurcana from repayment of part of the convertible debenture receivable.</p>
<P align=justify><B>Financing Activities<BR></B>The Company generated a total of
$19.2 million in the nine months ended September 30, 2011 through financing
activities as compared to $109.6 million in the corresponding period in 2010.
Proceeds in 2011 were received upon the exercise of stock options, and in 2010
$107.8 million was from a public share offering of 6.8 million shares at C$17.00
per share, and $1.8 million from the exercise of stock options.</P>
<P align=justify>In the nine months ended September 30, 2011, a total of 949,891
(2010 &#150; 125,263) shares were issued on the exercise of stock options for total
proceeds received of $19.2 million (2010 - $1.8 million). The weighted average
exercise price of options exercised was C$19.59 (2010 - C$15.20) per share.</P>
<P align=justify><B>Investing Activities<BR></B>The Company generated a total of
$91.5 million in the nine months ended September 30, 2011 through investing
activities as compared to an outflow of $81.6 million in the corresponding
period in 2010.</P>
<P align=justify>During the nine months ended September 30, 2011 the Company
spent $20.4 million compared to $42.9 million in the prior period for sustaining
capital at Pirquitas. Capital expenditure in 2011 was primarily to increase the
size of the tailings dam, and implementing a new tertiary crushing circuit,
while the large cash expenditure in the same period in 2010 was primarily
related to the payment of construction-related payables from 2009.</P>
<P align=right>15</P>
<HR style="PAGE-BREAK-AFTER: always" align=center width="100%" color=black
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<!--$$/page=--><A name=page_16></A>
<P align=justify>The Company spent the following on its mineral exploration
projects:</P>
<TABLE width="100%" border=0 cellPadding=0
cellSpacing=0
style="BORDER-COLOR: black; FONT-SIZE: 10pt; BORDER-COLLAPSE: collapse; ">

  <TR vAlign=top>
    <TD align=left>&nbsp; </TD>
    <TD align=left >&nbsp;</TD>
    <TD colSpan=4 align=right nowrap><B>Three months ended September
      30</B> </TD>
    <TD align=left >&nbsp;</TD>
    <TD align=left >&nbsp;</TD>
    <TD colSpan=4 align=right nowrap><B>Nine months ended September
      30</B> </TD>
    <TD align=left >&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left>&nbsp; </TD>
    <TD width="1%" align=left >&nbsp;</TD>
    <TD width="12%" align=right><B>2011</B> </TD>
    <TD width="2%" 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>2011</B> </TD>
    <TD width="2%" 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>
  </TR>
  <TR vAlign=top>
    <TD align=left>&nbsp; </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left
    ><B>$</B></TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><B>000's</B> </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left
    ><B>$</B></TD>
    <TD
      width="10%" align=right style="BORDER-BOTTOM: #000000 1px solid"><B>000's</B> </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left
    ><B>$</B></TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><B>000's</B> </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left
    ><B>$</B></TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><B>000's</B> </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left
    >&nbsp;</TD>
  </TR>
  <TR>
    <TD>&nbsp; </TD>
    <TD >&nbsp;</TD>
    <TD>&nbsp; </TD>
    <TD >&nbsp;</TD>
    <TD >&nbsp;</TD>
    <TD width="10%">&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 align=left bgColor=#e6efff>Berenguela </TD>
    <TD align=left  bgColor=#e6efff>&nbsp;</TD>
    <TD align=right bgColor=#e6efff><B>37</B> </TD>
    <TD align=left  bgColor=#e6efff>&nbsp;</TD>
    <TD align=left  bgColor=#e6efff>&nbsp;</TD>
    <TD width="10%" align=right bgColor=#e6efff>1,291 </TD>
    <TD align=left  bgColor=#e6efff>&nbsp;</TD>
    <TD align=left  bgColor=#e6efff>&nbsp;</TD>
    <TD align=right bgColor=#e6efff><B>276</B> </TD>
    <TD align=left  bgColor=#e6efff>&nbsp;</TD>
    <TD align=left  bgColor=#e6efff>&nbsp;</TD>
    <TD align=right bgColor=#e6efff>2,046 </TD>
    <TD align=left  bgColor=#e6efff>&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left>Diablillos </TD>
    <TD align=left >&nbsp;</TD>
    <TD align=right><B>692</B> </TD>
    <TD align=left >&nbsp;</TD>
    <TD align=left >&nbsp;</TD>
    <TD width="10%" align=right>727 </TD>
    <TD align=left >&nbsp;</TD>
    <TD align=left >&nbsp;</TD>
    <TD align=right><B>1,906</B> </TD>
    <TD align=left >&nbsp;</TD>
    <TD align=left >&nbsp;</TD>
    <TD align=right>1,436 </TD>
    <TD align=left >&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left bgColor=#e6efff>Pitarrilla </TD>
    <TD align=left  bgColor=#e6efff>&nbsp;</TD>
    <TD align=right bgColor=#e6efff><B>2,732</B> </TD>
    <TD align=left  bgColor=#e6efff>&nbsp;</TD>
    <TD align=left  bgColor=#e6efff>&nbsp;</TD>
    <TD width="10%" align=right bgColor=#e6efff>9,847 </TD>
    <TD align=left  bgColor=#e6efff>&nbsp;</TD>
    <TD align=left  bgColor=#e6efff>&nbsp;</TD>
    <TD align=right bgColor=#e6efff><B>14,385</B> </TD>
    <TD align=left  bgColor=#e6efff>&nbsp;</TD>
    <TD align=left  bgColor=#e6efff>&nbsp;</TD>
    <TD align=right bgColor=#e6efff>15,873 </TD>
    <TD align=left  bgColor=#e6efff>&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left>San Agustin </TD>
    <TD align=left >&nbsp;</TD>
    <TD align=right><B>248</B> </TD>
    <TD align=left >&nbsp;</TD>
    <TD align=left >&nbsp;</TD>
    <TD width="10%" align=right>479 </TD>
    <TD align=left >&nbsp;</TD>
    <TD align=left >&nbsp;</TD>
    <TD align=right><B>509</B> </TD>
    <TD align=left >&nbsp;</TD>
    <TD align=left >&nbsp;</TD>
    <TD align=right>946 </TD>
    <TD align=left >&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left bgColor=#e6efff>San Luis </TD>
    <TD align=left  bgColor=#e6efff>&nbsp;</TD>
    <TD align=right bgColor=#e6efff><B>1,267</B> </TD>
    <TD align=left  bgColor=#e6efff>&nbsp;</TD>
    <TD align=left  bgColor=#e6efff>&nbsp;</TD>
    <TD width="10%" align=right bgColor=#e6efff>1,175 </TD>
    <TD align=left  bgColor=#e6efff>&nbsp;</TD>
    <TD align=left  bgColor=#e6efff>&nbsp;</TD>
    <TD align=right bgColor=#e6efff><B>4,845</B> </TD>
    <TD align=left  bgColor=#e6efff>&nbsp;</TD>
    <TD align=left  bgColor=#e6efff>&nbsp;</TD>
    <TD align=right bgColor=#e6efff>5,633 </TD>
    <TD align=left  bgColor=#e6efff>&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left>Snowfield<SUP>(1)</SUP> </TD>
    <TD align=left >&nbsp;</TD>
    <TD align=right><B>-</B> </TD>
    <TD align=left >&nbsp;</TD>
    <TD align=left >&nbsp;</TD>
    <TD width="10%" align=right>5,637 </TD>
    <TD align=left >&nbsp;</TD>
    <TD align=left >&nbsp;</TD>
    <TD align=right><B>-</B> </TD>
    <TD align=left >&nbsp;</TD>
    <TD align=left >&nbsp;</TD>
    <TD align=right>9,373 </TD>
    <TD align=left >&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left bgColor=#e6efff>Brucejack<SUP>(1)</SUP> </TD>
    <TD align=left  bgColor=#e6efff>&nbsp;</TD>
    <TD align=right bgColor=#e6efff><B>-</B> </TD>
    <TD align=left  bgColor=#e6efff>&nbsp;</TD>
    <TD align=left  bgColor=#e6efff>&nbsp;</TD>
    <TD width="10%" align=right bgColor=#e6efff>6,673 </TD>
    <TD align=left  bgColor=#e6efff>&nbsp;</TD>
    <TD align=left  bgColor=#e6efff>&nbsp;</TD>
    <TD align=right bgColor=#e6efff><B>-</B> </TD>
    <TD align=left  bgColor=#e6efff>&nbsp;</TD>
    <TD align=left  bgColor=#e6efff>&nbsp;</TD>
    <TD align=right bgColor=#e6efff>10,658 </TD>
    <TD align=left  bgColor=#e6efff>&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left>Nazas </TD>
    <TD align=left >&nbsp;</TD>
    <TD align=right><B>1,636</B> </TD>
    <TD align=left >&nbsp;</TD>
    <TD align=left >&nbsp;</TD>
    <TD width="10%" align=right>203 </TD>
    <TD align=left >&nbsp;</TD>
    <TD align=left >&nbsp;</TD>
    <TD align=right><B>4,001</B> </TD>
    <TD align=left >&nbsp;</TD>
    <TD align=left >&nbsp;</TD>
    <TD align=right>799 </TD>
    <TD align=left >&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left bgColor=#e6efff>Other </TD>
    <TD align=left  bgColor=#e6efff>&nbsp;</TD>
    <TD align=right bgColor=#e6efff><B>386</B> </TD>
    <TD align=left  bgColor=#e6efff>&nbsp;</TD>
    <TD align=left  bgColor=#e6efff>&nbsp;</TD>
    <TD width="10%" align=right bgColor=#e6efff>746 </TD>
    <TD align=left  bgColor=#e6efff>&nbsp;</TD>
    <TD align=left  bgColor=#e6efff>&nbsp;</TD>
    <TD align=right bgColor=#e6efff><B>1,207</B> </TD>
    <TD align=left  bgColor=#e6efff>&nbsp;</TD>
    <TD align=left  bgColor=#e6efff>&nbsp;</TD>
    <TD align=right bgColor=#e6efff>1,576 </TD>
    <TD align=left  bgColor=#e6efff>&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left>Change in non-cash working capital </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><B>(3,316</B></TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left
    ><B>)</B> </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left
    >&nbsp;</TD>
    <TD
    width="10%" align=right style="BORDER-BOTTOM: #000000 1px solid">(421</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left
    >) </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right><B>(2,598</B></TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left
    ><B>)</B> </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right>(6,924</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left
    >) </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 width="10%" 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 nowrap>Cash spent on exploration and development properties </TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=left
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=right><B>3,682</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
      width="10%" align=right style="BORDER-BOTTOM: #000000 2px solid">26,357 </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><B>24,531</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>41,416 </TD>
<TD style="BORDER-BOTTOM: #000000 2px solid" align=left
    >&nbsp;</TD>
</TR></TABLE>
<P align=justify><SUP>(1) </SUP>The Snowfield and Brucejack properties were sold
in December 2010 and hence there were no expenditures in 2011.</P>
<P align=justify>The Company spent $10.3 million in value added tax (&#147;VAT&#148;)
primarily in Argentina related to the Pirquitas mine for the nine months ended
September 30, 2011 compared to $15.2 million in the prior year due to the lower
level of expenditure in the current period compared to the payment of
construction payables towards the beginning of 2010. The Company continues to
work with the fiscal authorities regarding the process of recovering the VAT,
which requires applications to be submitted as metal concentrates are
exported.</P>
<P align=justify>During the nine months ended September 30, 2011 the Company
received $112.9 million from the sale of 11.5 million units of Pretium, $52.0
million from the sale of mineral properties ($35.0 million from Bowdens and
$17.0 million from the final payment in relation to the sale of the Snowfield
and Brucejack properties completed in 2010), and paid $18.1 million to acquire
the 100% ownership interest in the San Luis project in Peru.</P>
<P align=justify><B>Marketable securities<BR></B>There was an increase in
marketable securities of $2.9 million in the nine month period ended September
30, 2011. This resulted from fair value increases of $10.6 million and the
receipt of 3.4 million shares of Kingsgate with a period-end value of $24.2
million, offset by the disposal of 6.5 million shares of Esperanza which had a
value of $10.5 million. There is a hold clause on the Kingsgate shares of six
months from the date that the transaction closed.</P>
<P align=justify><B>Working capital<BR></B>Working capital at September 30, 2011
was $428.6 million, an increase of $121.7 million from December 31, 2010. The
increase in working capital resulted primarily from a $123.6 million increase in
cash and cash equivalents as discussed above and an increase in inventory of
$38.6 million, which was partially offset by an increase in current taxes
payable of $28.9 million.</P>
<P align=justify>Inventory increased significantly due to large amounts of
finished goods being on hand as a result of the terminated sales contract, while
the increase in current taxes payable resulted from taxable gains on the
disposal of Pretium units and the Bowdens project in Australia.</P>
<P align=right>16</P>
<HR style="PAGE-BREAK-AFTER: always" align=center width="100%" color=black
noShade SIZE=5>
<!--$$/page=--><A name=page_17></A>
<P align=justify><B>8. CAPITAL RESOURCES</B></P>
<P align=justify>Shareholders&rsquo; equity at September 30, 2011 was $987.7 million, an increase of $50.0 million from $937.7 million at December 31, 2010. This was due in part to the exercise of 949,891 options, share-based compensation expense and comprehensive income reported for the period. The Company also completed a transaction to acquire the non-controlling interest in the San Luis project in Peru for total excess consideration of $28.2 million. This is considered to be a distribution to that non-controlling interest and as a result is recorded as a reduction to equity of that amount.</P>
<P align=justify>As at September 30, 2011 the Company had approximately 80.6
million common shares outstanding, with a share capital value of $704.3 million.
The Company also had 3.3 million stock options outstanding which are
exchangeable into common shares at exercise prices ranging between $11.50 and
$40.62.</P>
<P align=justify>The Company&#146;s financial position at September 30, 2011, and the
operating cash flows that are expected over the next twelve months, lead
management to believe that the Company&#146;s liquid assets are sufficient to fund
currently planned capital expenditures and to discharge liabilities as they come
due. In addition, the Company is positioned to take advantage of strategic
opportunities as they become available.</P>
<P align=justify><B>Outstanding share data</B></P>
<P align=justify>The authorized capital consists of an unlimited number of
common shares without par value. As at November 9, 2011, the following common
shares and options were outstanding:</P>
<TABLE
style="BORDER-COLOR: black; FONT-SIZE: 10pt; BORDER-COLLAPSE: collapse; "
cellSpacing=0 cellPadding=0 width="100%" border=0>

  <TR vAlign=top>
    <TD align=left>&nbsp; </TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD width="10%" align=right nowrap><B>Number of</B> </TD>
    <TD width="2%" align=left nowrap >&nbsp;</TD>
    <TD width="1%" align=left nowrap >&nbsp;</TD>
    <TD width="10%" align=right nowrap><B>Exercise</B> </TD>
    <TD width="2%" align=left nowrap >&nbsp;</TD>
    <TD width="1%" align=left nowrap >&nbsp;</TD>
    <TD width="10%" align=right nowrap><B>Remaining</B> </TD>
  <TD align=left width="2%" >&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left>&nbsp; </TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD width="10%" align=right nowrap><B>Shares</B> </TD>
    <TD width="2%" align=left nowrap >&nbsp;</TD>
    <TD width="1%" align=left nowrap >&nbsp;</TD>
    <TD width="10%" align=right nowrap><B>Price</B> </TD>
    <TD width="2%" align=left nowrap >&nbsp;</TD>
    <TD width="1%" align=left nowrap >&nbsp;</TD>
    <TD width="10%" align=right nowrap><B>Life</B> </TD>
  <TD align=left width="2%" >&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>&nbsp; </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
    >&nbsp;</TD>
    <TD width="10%" align=left nowrap style="BORDER-BOTTOM: #000000 1px solid">&nbsp;    </TD>
    <TD width="2%" align=left nowrap style="BORDER-BOTTOM: #000000 1px solid"
    >&nbsp;</TD>
    <TD width="1%" align=left nowrap style="BORDER-BOTTOM: #000000 1px solid"
    >&nbsp;</TD>
    <TD
      width="10%" align=right nowrap style="BORDER-BOTTOM: #000000 1px solid"><B>C$</B> </TD>
    <TD width="2%" align=left nowrap style="BORDER-BOTTOM: #000000 1px solid"
    >&nbsp;</TD>
    <TD width="1%" align=left nowrap style="BORDER-BOTTOM: #000000 1px solid"
    >&nbsp;</TD>
    <TD
      width="10%" align=right nowrap style="BORDER-BOTTOM: #000000 1px solid"><B>(years)</B> </TD>
  <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="2%"
    >&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left bgColor=#e6efff>Capital stock </TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="10%" bgColor=#e6efff>80,614,932 </TD>
    <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="10%" bgColor=#e6efff>&nbsp; </TD>
    <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="10%" bgColor=#e6efff>&nbsp; </TD>
    <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>Stock options </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right
      width="10%">3,283,971 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="2%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
    >$</TD>
    <TD width="10%" align=right nowrap style="BORDER-BOTTOM: #000000 1px solid">11.50
      - $40.62 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="2%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right width="10%">0.1 - 9.0 </TD>
  <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="2%"
    >&nbsp;</TD></TR>
  <TR>
    <TD bgColor=#e6efff>&nbsp; </TD>
    <TD width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD width="10%" bgColor=#e6efff>&nbsp; </TD>
    <TD width="2%"  bgColor=#e6efff>&nbsp;</TD>
    <TD width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD width="10%" bgColor=#e6efff>&nbsp; </TD>
    <TD width="2%"  bgColor=#e6efff>&nbsp;</TD>
    <TD width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD width="10%" bgColor=#e6efff>&nbsp; </TD>
    <TD width="2%"  bgColor=#e6efff>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=left>Fully diluted </TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=left width="1%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=right
      width="10%">83,903,903 </TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=left width="2%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=left width="1%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=left width="10%">&nbsp;
    </TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=left width="2%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=left width="1%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=left width="10%">&nbsp;
    </TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=left width="2%"
    >&nbsp;</TD></TR></TABLE>
<P align=justify><B>9. FINANCIAL INSTRUMENTS AND RELATED RISKS</B></P>
<P align=justify>The Company&#146;s financial instruments are exposed to a variety of
financial risks, including market risk, credit risk and liquidity risk. The
Company&#146;s overall risk management strategy seeks to minimize potential adverse
effects on the Company&#146;s financial performance. Risk management is carried out
under policies approved by the Board of Directors.</P>
<P align=justify>The Company may, from time to time, use foreign exchange
contracts, commodity price contracts and interest rate swaps to manage its
exposure to fluctuations in foreign exchange, metal prices and interest rates.
The Company does not have a practice of trading derivatives. In the past, the
Company&#146;s 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. The risks associated with the Company&#146;s financial
instruments, and the policies on how the Company mitigates those risks are set
out below.</P>
<P align=justify><B>a) Market Risk</B></P>
<P align=justify>This is the risk that the fair values of financial instruments
will fluctuate owing to changes in market prices. The significant market risks
to which the Company is exposed are commodity price risk, foreign exchange risk
and interest rate risk.</P>
<P align=right>17</P>
<HR style="PAGE-BREAK-AFTER: always" align=center width="100%" color=black
noShade SIZE=5>
<!--$$/page=--><A name=page_18></A>
<P align=justify><B>(i) Commodity Price Risk</B></P>
<P align=justify>Commodity price risk is the risk that the fair value or future
cash flows of the Company&#146;s financial instruments will fluctuate because of
changes in market prices. There has been no change in the Company&#146;s objectives
and policies for managing this risk and no significant change to the Company&#146;s
exposure to price risk during the nine months ended September 30, 2011.</P>
<P align=justify><B>(ii) Foreign Exchange Risk</B></P>
<P align=justify>Foreign exchange risk is the risk that the fair value or future
cash flows of the Company&#146;s financial instruments will fluctuate because of
changes in foreign currency exchange rates. The Company is exposed to foreign
exchange risk on its cash and cash equivalents, certain receivable balances, the
convertible debenture receivable, VAT receivable and certain accounts payable
and accrued liabilities.</P>
<P align=justify>The Company monitors and manages this risk closely with the
objective of ensuring its group wide exposure to negative fluctuations in
currencies against the USD is minimized. As at September 30, 2011 the Company
has not entered into any derivatives to mitigate this risk and there has been no
change in the Company&#146;s objectives and policies for managing this risk. The
Company&#146;s exposure to foreign exchange risk during the nine months ended
September 30, 2011 increased to the extent that additional Canadian dollar cash
was received from the sale of Pretium units which are exposed to foreign
exchange risk, however this was mitigated to an acceptable level through the
conversion into U.S. dollars based on corporate objectives.</P>
<P align=justify>Also, on October 26, 2011 the Argentina government announced a decree that requires all funds from export sales to be repatriated to Argentina and converted into Argentinean Pesos within the Sole Foreign Exchange Market in Argentina, and each transfer is subject to a 0.6% transfer tax. The Company will comply with all laws and regulations, and is in the process of considering the impact that this has on the business.</P>
<P align=justify><B>(iii) Interest Rate Risk</B></P>
<P align=justify>Interest rate risk mainly arises from the interest rate impact
on our cash and cash equivalents because they are the only financial instrument
the Company holds that earns interest based on variable market interest rates.
The convertible debenture receivable and long-term convertible notes have fixed
interest rates and are therefore not exposed to fluctuations in interest rates.
</P>
<P align=justify>The Company monitors its exposure to interest rates closely and
has not entered into any derivative contracts to manage its risk. There has been
no change in the Company&#146;s objectives and policies for managing this risk and no
significant change to the Company&#146;s exposure to interest rate risk during the
nine months ended September 30, 2011.</P>
<P align=justify><B>b) Credit Risk</B></P>
<P align=justify>Credit risk is the risk that a third party might fail to
discharge its obligations under the terms of a financial contract. The Company&#146;s
credit risk is limited to deposits with financial institutions, trade
receivables in the ordinary course of business, the recovery of the convertible
debenture and the recovery of value added taxes, and the quality of its
financial investments. There has been no change in the Company&#146;s objectives and
policies for managing this risk during the nine months ended September 30, 2011.
However, the credit risk associated with the convertible debenture from Aurcana
was considered to have reduced following the repayment of C$7 million on July
15, 2011, and additional principal repayment in October 2011.</P>
<P align=right>18</P>
<HR style="PAGE-BREAK-AFTER: always" align=center width="100%" color=black
noShade SIZE=5>
<!--$$/page=--><A name=page_19></A>
<P align=justify><B>c) Liquidity Risk</B></P>
<P align=justify>Liquidity risk is the risk that the Company will not be able to
meet its financial obligations as they fall due. The Company manages its
liquidity risk through a rigorous planning and budgeting process, which is
reviewed and updated on a regular basis, to help determine the funding
requirements to support the Company&#146;s current operations, expansion and
development plans, and by managing its capital structure. </P>
<P align=justify>The Company&#146;s objective is to ensure that there are sufficient
committed financial resources to meet its short-term business requirements for a
minimum of twelve months. There has been no change in the Company&#146;s objectives
and policies for managing this risk and the Company considers that during the
period the significant cash proceeds received from selling 11.5 million shares
of Pretium and the Bowdens property has further reduced the Company&#146;s exposure
to liquidity risk during the nine months ended September 30, 2011.</P>
<P align=justify><B>10. OTHER RISKS AND UNCERTAINTIES</B></P>
<P align=justify>There were no changes to the Company&#146;s exposure to risks and
uncertainties, including risks relating to the Company&#146;s foreign operations and
environmental regulation as described in the 2010 year end and June 30, 2011
interim MD&amp;A.</P>
<P align=justify>For further information regarding the Company&#146;s operational
risks, please refer to the section entitled &#145;Risk Factors&#146; in the &#145;Annual Report
on Form 20-F&#146; for the year ended December 31, 2010, which is available at
<U><font color="#0000FF">www.sedar.com</font></U>.</P>
<P align=justify><B>11. RELATED PARTY TRANSACTIONS</B></P>
<P align=justify>During the nine months ended September 30, 2011, the Company
recorded administrative, technical services and expense reimbursements of
$179,000 (December 31, 2010 - $19,000) from companies related by common
directors or officers including our equity accounted associate. At September 30,
2011, trade and other receivables include $257,000 (December 31, 2010 - $2,000)
and trade and other payables include $329,000 (December 31, 2010 - $nil) with
these related parties primarily due to transaction costs from the sale of the
Snowfield and Brucejack properties and the subsequent sale of Pretium shares.
Any amounts due from and payable to related parties are non-interest bearing and
without specific terms of repayment. Any transactions for expense reimbursement
with related parties are under normal business terms.</P>
<P align=right>19</P>
<HR style="PAGE-BREAK-AFTER: always" align=center width="100%" color=black
noShade SIZE=5>
<!--$$/page=--><A name=page_20></A>
<P align=justify><B>12. SIGNFICANT INVESTMENTS ACCOUNTED FOR BY THE EQUITY
METHOD</B></P>
<P align=justify>As at September 30, 2011 the Company retained an ownership
interest in Pretium of 28.39% . This investment is being accounted for under the
equity method. The following table is an estimation of the assets and
liabilities, and net loss of Pretium at:</P>
<DIV>
<TABLE
style="BORDER-COLOR: black; FONT-SIZE: 10pt; BORDER-COLLAPSE: collapse; "
cellSpacing=0 cellPadding=0 width="70%" border=0>

  <TR vAlign=top>
    <TD align=left>&nbsp; </TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD width="12%" align=right nowrap><B>September 30</B> </TD>
    <TD width="2%" align=left nowrap >&nbsp;</TD>
    <TD width="1%" align=left nowrap >&nbsp;</TD>
    <TD width="12%" align=right nowrap><B>December</B> </TD>
    <TD align=left width="2%" >&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left>&nbsp; </TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD width="12%" align=right nowrap><B>2011</B> </TD>
    <TD width="2%" align=left nowrap >&nbsp;</TD>
    <TD width="1%" align=left nowrap >&nbsp;</TD>
    <TD width="12%" align=right nowrap><B>2010</B> </TD>
    <TD align=left width="2%" >&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left>&nbsp; </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
    >&nbsp;</TD>
    <TD width="12%" align=right nowrap style="BORDER-BOTTOM: #000000 1px solid"><B>C$
      000s</B> </TD>
    <TD width="2%" align=left nowrap style="BORDER-BOTTOM: #000000 1px solid"
    >&nbsp;</TD>
    <TD width="1%" align=left nowrap style="BORDER-BOTTOM: #000000 1px solid"
    >&nbsp;</TD>
    <TD width="12%" align=right nowrap style="BORDER-BOTTOM: #000000 1px solid"><B>C$
      000s</B> </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="2%"
    >&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left bgColor=#e6efff>Cash and cash equivalents </TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD width="12%" align=right nowrap bgColor=#e6efff>31,793 </TD>
    <TD width="2%" align=left nowrap  bgColor=#e6efff>&nbsp;</TD>
    <TD width="1%" align=left nowrap  bgColor=#e6efff>&nbsp;</TD>
    <TD width="12%" align=right nowrap bgColor=#e6efff>48,534 </TD>
    <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left>Mineral properties </TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=right width="12%">476,169 </TD>
    <TD align=left width="2%" >&nbsp;</TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=right width="12%">450,000 </TD>
    <TD align=left width="2%" >&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left bgColor=#e6efff>Other fixed assets </TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="12%" bgColor=#e6efff>2,113 </TD>
    <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="12%" bgColor=#e6efff>- </TD>
    <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>Other receivables
      and payables </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right width="12%">1,161
    </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="2%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right
      width="12%">(40,146</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="2%"
    >) </TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=left
      bgColor=#e6efff>Net assets </TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=left width="1%"
     bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=right width="12%"
    bgColor=#e6efff>511,236 </TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=left width="2%"
     bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=left width="1%"
     bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=right width="12%"
    bgColor=#e6efff>458,388 </TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=left width="2%"
     bgColor=#e6efff>&nbsp;</TD></TR></TABLE></DIV><BR>
<DIV>
<TABLE
style="BORDER-COLOR: black; FONT-SIZE: 10pt; BORDER-COLLAPSE: collapse; "
cellSpacing=0 cellPadding=0 width="80%" border=0>

  <TR vAlign=top>
    <TD align=left>&nbsp; </TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=right width="23%" colSpan=4><B>Three months ended</B> </TD>
    <TD align=left width="2%" >&nbsp;</TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=right width="23%" colSpan=4><B>Nine months ended</B> </TD>
    <TD align=left width="2%" >&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left>&nbsp; </TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD width="10%" align=left nowrap>&nbsp; </TD>
    <TD width="2%" align=left nowrap >&nbsp;</TD>
    <TD width="1%" align=left nowrap >&nbsp;</TD>
    <TD width="10%" align=right nowrap><B>September 30</B> </TD>
    <TD width="2%" align=left nowrap >&nbsp;</TD>
    <TD width="1%" align=left nowrap >&nbsp;</TD>
    <TD width="23%" colSpan=4 align=right nowrap><B>September 30</B> </TD>
    <TD align=left width="2%" >&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left>&nbsp; </TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD width="10%" align=right nowrap><B>2011</B> </TD>
    <TD width="2%" align=left nowrap >&nbsp;</TD>
    <TD width="1%" align=left nowrap >&nbsp;</TD>
    <TD width="10%" align=right nowrap><B>2010</B> </TD>
    <TD width="2%" align=left nowrap >&nbsp;</TD>
    <TD width="1%" align=left nowrap >&nbsp;</TD>
    <TD width="10%" align=right nowrap><B>2011</B> </TD>
    <TD width="2%" align=left nowrap >&nbsp;</TD>
    <TD width="1%" align=left nowrap >&nbsp;</TD>
    <TD width="10%" align=right nowrap><B>2010</B> </TD>
    <TD align=left width="2%" >&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left>&nbsp; </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
    >&nbsp;</TD>
    <TD width="10%" align=right nowrap style="BORDER-BOTTOM: #000000 1px solid"><B>C$
      000s</B> </TD>
    <TD width="2%" align=left nowrap style="BORDER-BOTTOM: #000000 1px solid"
    >&nbsp;</TD>
    <TD width="1%" align=left nowrap style="BORDER-BOTTOM: #000000 1px solid"
    >&nbsp;</TD>
    <TD width="10%" align=right nowrap style="BORDER-BOTTOM: #000000 1px solid"><B>C$
      000s</B> </TD>
    <TD width="2%" align=left nowrap style="BORDER-BOTTOM: #000000 1px solid"
    >&nbsp;</TD>
    <TD width="1%" align=left nowrap style="BORDER-BOTTOM: #000000 1px solid"
    >&nbsp;</TD>
    <TD width="10%" align=right nowrap style="BORDER-BOTTOM: #000000 1px solid"><B>C$
      000s</B> </TD>
    <TD width="2%" align=left nowrap style="BORDER-BOTTOM: #000000 1px solid"
    >&nbsp;</TD>
    <TD width="1%" align=left nowrap style="BORDER-BOTTOM: #000000 1px solid"
    >&nbsp;</TD>
    <TD width="10%" align=right nowrap style="BORDER-BOTTOM: #000000 1px solid"><B>C$
      000s</B> </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="2%"
    >&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left bgColor=#e6efff>Stock-based compensation </TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="10%" bgColor=#e6efff>1,969 </TD>
    <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="10%" bgColor=#e6efff>- </TD>
    <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="10%" bgColor=#e6efff>10,555 </TD>
    <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="10%" bgColor=#e6efff>- </TD>
    <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>Other </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right width="10%">897
    </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="2%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right width="10%">- </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="2%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right width="10%">2,129
    </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="2%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right width="10%">- </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="2%"
    >&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=left
      bgColor=#e6efff>Net Loss </TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=left width="1%"
     bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=right width="10%"
    bgColor=#e6efff>2,866 </TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=left width="2%"
     bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=left width="1%"
     bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=right width="10%"
    bgColor=#e6efff>- </TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=left width="2%"
     bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=left width="1%"
     bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=right width="10%"
    bgColor=#e6efff>12,684 </TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=left width="2%"
     bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=left width="1%"
     bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=right width="10%"
    bgColor=#e6efff>- </TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=left width="2%"
     bgColor=#e6efff>&nbsp;</TD>
  </TR></TABLE></DIV>
<P align=justify><B>13. NON-GAAP MEASURES</B></P>
<P align=justify><B>Non-GAAP measures &#150; Cash cost per ounce of silver</B></P>
<P align=justify>The Company uses the non-GAAP measures of direct mining cost,
total cash cost and total production cost per ounce of silver to manage and
evaluate operating performance. The Company believes that, in addition to
conventional measures prepared in accordance with GAAP, certain investors use
this information to evaluate the Company&#146;s performance and ability to generate
cash flows. Accordingly, it is intended to provide additional information and
should not be considered in isolation or as a substitute for measures of
performance prepared in accordance with GAAP.</P>
<P align=justify>This classification is based upon The Silver Institute&#146;s
production cost standard as endorsed on June 16, 2011. Previous to this the
Company reported cash production cost, cash operating cost and total production
cost, and moved to The Silver Institute&#146;s production cost standard in its
disclosures from June 30, 2011 in order to disclose a more standardized meaning
within the industry. The key differences between this presentation and the
Company&#146;s previous disclosure is that cash production costs included by-product
credits whereas direct mining costs per The Silver Institute guidance only
include costs incurred at the mine site. Total cash costs and cash operating
costs remain consistent. Total production costs are consistent except that the
Company had previously included reclamation costs which are excluded from The
Silver Institute&#146;s guidance. </P>
<P align=right>20</P>
<HR style="PAGE-BREAK-AFTER: always" align=center width="100%" color=black
noShade SIZE=5>
<!--$$/page=--><A name=page_21></A>
<P align=justify>The following table provides a reconciliation of direct mining
costs, total cash costs and total production costs to cost of sales, as reported
in our Consolidated Interim Statement of Income (Loss):</P>
<DIV>
<TABLE width="100%" border=0 cellPadding=0
cellSpacing=0
style="BORDER-COLOR: black; FONT-SIZE: 10pt; BORDER-COLLAPSE: collapse; ">

  <TR vAlign=top>
    <TD align=left>&nbsp; </TD>
    <TD align=left>&nbsp;</TD>
    <TD colSpan=4 align=right nowrap><B>3 months ended September 30</B>    </TD>
    <TD align=left>&nbsp;</TD>
    <TD align=left>&nbsp;</TD>
    <TD colSpan=4 align=right nowrap><B>9 months ended September 30</B>    </TD>
    <TD align=left>&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left>&nbsp; </TD>
    <TD align=left>&nbsp;</TD>
    <TD align=right nowrap><B>2011</B> </TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=right nowrap><B>2010</B> </TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=right nowrap><B>2011</B> </TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=right nowrap><B>2010</B> </TD>
    <TD align=left>&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>&nbsp; </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left><B></B></TD>
    <TD align=right nowrap style="BORDER-BOTTOM: #000000 1px solid"><B>$000s</B> </TD>
    <TD align=left nowrap style="BORDER-BOTTOM: #000000 1px solid">&nbsp;</TD>
    <TD align=left nowrap style="BORDER-BOTTOM: #000000 1px solid"><B></B></TD>
    <TD align=right nowrap style="BORDER-BOTTOM: #000000 1px solid"><B>$000s</B> </TD>
    <TD align=left nowrap style="BORDER-BOTTOM: #000000 1px solid">&nbsp;</TD>
    <TD align=left nowrap style="BORDER-BOTTOM: #000000 1px solid"><B></B></TD>
    <TD align=right nowrap style="BORDER-BOTTOM: #000000 1px solid"><B>$000s</B> </TD>
    <TD align=left nowrap style="BORDER-BOTTOM: #000000 1px solid">&nbsp;</TD>
    <TD align=left nowrap style="BORDER-BOTTOM: #000000 1px solid"><B></B></TD>
    <TD align=right nowrap style="BORDER-BOTTOM: #000000 1px solid"><B>$000s</B> </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>&nbsp;</TD>
  </TR>
  <TR>
    <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>
    <TD>&nbsp;</TD>
    <TD>&nbsp; </TD>
    <TD>&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left bgColor=#e6efff>Cost of inventory per income statement </TD>
    <TD align=left bgColor=#e6efff>&nbsp;</TD>
    <TD align=right bgColor=#e6efff>11,532 </TD>
    <TD align=left bgColor=#e6efff>&nbsp;</TD>
    <TD align=left bgColor=#e6efff>&nbsp;</TD>
    <TD align=right bgColor=#e6efff>25,013 </TD>
    <TD align=left bgColor=#e6efff>&nbsp;</TD>
    <TD align=left bgColor=#e6efff>&nbsp;</TD>
    <TD align=right bgColor=#e6efff>53,436 </TD>
    <TD align=left bgColor=#e6efff>&nbsp;</TD>
    <TD align=left bgColor=#e6efff>&nbsp;</TD>
    <TD align=right bgColor=#e6efff>56,067 </TD>
    <TD align=left bgColor=#e6efff>&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left>Movement in inventory </TD>
    <TD align=left>&nbsp;</TD>
    <TD align=right>14,891 </TD>
    <TD align=left>&nbsp;</TD>
    <TD align=left>&nbsp;</TD>
    <TD align=right>(4,845</TD>
    <TD align=left>) </TD>
    <TD align=left>&nbsp;</TD>
    <TD align=right>16,790 </TD>
    <TD align=left>&nbsp;</TD>
    <TD align=left>&nbsp;</TD>
    <TD align=right>1,033 </TD>
    <TD align=left>&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left
      bgColor=#e6efff>Other adjustments </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left
    bgColor=#e6efff>&nbsp;</TD>
    <TD align=left
    bgColor=#e6efff style="BORDER-BOTTOM: #000000 1px solid">&nbsp; </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left
    bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left
    bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right
    bgColor=#e6efff>- </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left
    bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left
    bgColor=#e6efff>&nbsp;</TD>
    <TD align=left
    bgColor=#e6efff style="BORDER-BOTTOM: #000000 1px solid">&nbsp; </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left
    bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left
    bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right
    bgColor=#e6efff>- </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left
    bgColor=#e6efff>&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left>Direct mining expenses </TD>
    <TD align=left>&nbsp;</TD>
    <TD align=right>26,423 </TD>
    <TD align=left>&nbsp;</TD>
    <TD align=left>&nbsp;</TD>
    <TD align=right>20,168 </TD>
    <TD align=left>&nbsp;</TD>
    <TD align=left>&nbsp;</TD>
    <TD align=right>70,226 </TD>
    <TD align=left>&nbsp;</TD>
    <TD align=left>&nbsp;</TD>
    <TD align=right>57,100 </TD>
    <TD align=left>&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left bgColor=#e6efff>Third party smelting, refining and </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>
    <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>transportation costs </TD>
    <TD align=left>&nbsp;</TD>
    <TD align=right>8,620 </TD>
    <TD align=left>&nbsp;</TD>
    <TD align=left>&nbsp;</TD>
    <TD align=right>8,957 </TD>
    <TD align=left>&nbsp;</TD>
    <TD align=left>&nbsp;</TD>
    <TD align=right>38,000 </TD>
    <TD align=left>&nbsp;</TD>
    <TD align=left>&nbsp;</TD>
    <TD align=right>17,302 </TD>
    <TD align=left>&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left bgColor=#e6efff>By-product credits </TD>
    <TD align=left bgColor=#e6efff>&nbsp;</TD>
    <TD align=right bgColor=#e6efff>(1,645</TD>
    <TD align=left bgColor=#e6efff>) </TD>
    <TD align=left bgColor=#e6efff>&nbsp;</TD>
    <TD align=right bgColor=#e6efff>- </TD>
    <TD align=left bgColor=#e6efff>&nbsp;</TD>
    <TD align=left bgColor=#e6efff>&nbsp;</TD>
    <TD align=right bgColor=#e6efff>(4,628</TD>
    <TD align=left bgColor=#e6efff>) </TD>
    <TD align=left bgColor=#e6efff>&nbsp;</TD>
    <TD align=right bgColor=#e6efff>- </TD>
    <TD align=left bgColor=#e6efff>&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>Royalties &amp;
      production taxes </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>&nbsp;</TD>
    <TD align=right style="BORDER-BOTTOM: #000000 1px solid">204    </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>3,639    </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>&nbsp;</TD>
    <TD align=right style="BORDER-BOTTOM: #000000 1px solid">13,017 </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>6,025    </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>
    <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 style="BORDER-BOTTOM: #000000 1px solid" align=left>Total cash costs
    </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>&nbsp;</TD>
    <TD align=right style="BORDER-BOTTOM: #000000 1px solid">33,602 </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>32,764 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>&nbsp;</TD>
    <TD align=right style="BORDER-BOTTOM: #000000 1px solid">116,615 </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>80,427 </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>
    <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>Depletion, depreciation and amortization per </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>
    <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 align=left bgColor=#e6efff>income statement </TD>
    <TD align=left bgColor=#e6efff>&nbsp;</TD>
    <TD align=right bgColor=#e6efff>2,410 </TD>
    <TD align=left bgColor=#e6efff>&nbsp;</TD>
    <TD align=left bgColor=#e6efff>&nbsp;</TD>
    <TD align=right bgColor=#e6efff>5,554 </TD>
    <TD align=left bgColor=#e6efff>&nbsp;</TD>
    <TD align=left bgColor=#e6efff>&nbsp;</TD>
    <TD align=right bgColor=#e6efff>13,439 </TD>
    <TD align=left bgColor=#e6efff>&nbsp;</TD>
    <TD align=left bgColor=#e6efff>&nbsp;</TD>
    <TD align=right bgColor=#e6efff>16,291 </TD>
    <TD align=left bgColor=#e6efff>&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>Movement in
      inventory </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>&nbsp;</TD>
    <TD align=right style="BORDER-BOTTOM: #000000 1px solid">4,031    </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>123    </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>&nbsp;</TD>
    <TD align=right style="BORDER-BOTTOM: #000000 1px solid">4,972    </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>662    </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left
      bgColor=#e6efff>Total production costs </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left
    bgColor=#e6efff>&nbsp;</TD>
    <TD align=right
    bgColor=#e6efff style="BORDER-BOTTOM: #000000 1px solid">40,043 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left
    bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left
    bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right
    bgColor=#e6efff>38,441 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left
    bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left
    bgColor=#e6efff>&nbsp;</TD>
    <TD align=right
    bgColor=#e6efff style="BORDER-BOTTOM: #000000 1px solid">135,026 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left
    bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left
    bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right
    bgColor=#e6efff>97,380 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left
    bgColor=#e6efff>&nbsp;</TD>
  </TR>
  <TR>
    <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>
    <TD>&nbsp;</TD>
    <TD>&nbsp; </TD>
    <TD>&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left bgColor=#e6efff>Production (ounces) </TD>
    <TD align=left bgColor=#e6efff>&nbsp;</TD>
    <TD align=right bgColor=#e6efff>1,631,281 </TD>
    <TD align=left bgColor=#e6efff>&nbsp;</TD>
    <TD align=left bgColor=#e6efff>&nbsp;</TD>
    <TD align=right bgColor=#e6efff>1,932,978 </TD>
    <TD align=left bgColor=#e6efff>&nbsp;</TD>
    <TD align=left bgColor=#e6efff>&nbsp;</TD>
    <TD align=right bgColor=#e6efff>5,304,191 </TD>
    <TD align=left bgColor=#e6efff>&nbsp;</TD>
    <TD align=left bgColor=#e6efff>&nbsp;</TD>
    <TD align=right bgColor=#e6efff>4,234,702 </TD>
    <TD align=left bgColor=#e6efff>&nbsp;</TD>
  </TR>
  <TR>
    <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>
    <TD>&nbsp;</TD>
    <TD>&nbsp; </TD>
    <TD>&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left bgColor=#e6efff>Direct mining expenses (per ounce) </TD>
    <TD align=left bgColor=#e6efff>&nbsp;</TD>
    <TD align=right bgColor=#e6efff>16.20 </TD>
    <TD align=left bgColor=#e6efff>&nbsp;</TD>
    <TD align=left bgColor=#e6efff>&nbsp;</TD>
    <TD align=right bgColor=#e6efff>10.43 </TD>
    <TD align=left bgColor=#e6efff>&nbsp;</TD>
    <TD align=left bgColor=#e6efff>&nbsp;</TD>
    <TD align=right bgColor=#e6efff>13.24 </TD>
    <TD align=left bgColor=#e6efff>&nbsp;</TD>
    <TD align=left bgColor=#e6efff>&nbsp;</TD>
    <TD align=right bgColor=#e6efff>13.48 </TD>
    <TD align=left bgColor=#e6efff>&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left>Total cash cost (per ounce) </TD>
    <TD align=left>&nbsp;</TD>
    <TD align=right>20.60 </TD>
    <TD align=left>&nbsp;</TD>
    <TD align=left>&nbsp;</TD>
    <TD align=right>16.95 </TD>
    <TD align=left>&nbsp;</TD>
    <TD align=left>&nbsp;</TD>
    <TD align=right>21.99 </TD>
    <TD align=left>&nbsp;</TD>
    <TD align=left>&nbsp;</TD>
    <TD align=right>18.99 </TD>
    <TD align=left>&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left bgColor=#e6efff>Total production cost (per ounce) </TD>
    <TD align=left bgColor=#e6efff>&nbsp;</TD>
    <TD align=right bgColor=#e6efff>24.55 </TD>
    <TD align=left bgColor=#e6efff>&nbsp;</TD>
    <TD align=left bgColor=#e6efff>&nbsp;</TD>
    <TD align=right bgColor=#e6efff>19.89 </TD>
    <TD align=left bgColor=#e6efff>&nbsp;</TD>
    <TD align=left bgColor=#e6efff>&nbsp;</TD>
    <TD align=right bgColor=#e6efff>25.46 </TD>
    <TD align=left bgColor=#e6efff>&nbsp;</TD>
    <TD align=left bgColor=#e6efff>&nbsp;</TD>
    <TD align=right bgColor=#e6efff>23.00 </TD>
    <TD align=left bgColor=#e6efff>&nbsp;</TD>
  </TR></TABLE></DIV>
<P align=justify><B>Non-GAAP measures &#150; adjusted income (loss)</B></P>
<P align=justify>The Company has included the non-GAAP performance measure of
adjusted net income (loss) and adjusted basic earnings (loss) per share. The
Company believes that, in addition to conventional measures prepared in
accordance with GAAP, certain investors may want to use this information to
evaluate the Company&#146;s performance and ability to generate cash flow.
Accordingly, it is intended to provide additional information and should not be
considered in isolation or as a substitute for measures of performance prepared
in accordance with GAAP. </P>
<P align=justify>The following table provides a reconciliation of adjusted net
loss to the consolidated financial statements:</P>
<DIV>
<TABLE width="90%" border=0 cellPadding=0
cellSpacing=0
style="BORDER-COLOR: black; FONT-SIZE: 10pt; BORDER-COLLAPSE: collapse; ">

  <TR vAlign=top>
    <TD align=left>&nbsp; </TD>
    <TD align=left >&nbsp;</TD>
    <TD colSpan=4 align=right nowrap><B>Three months ended September
      30</B> </TD>
    <TD align=left >&nbsp;</TD>
    <TD align=left >&nbsp;</TD>
    <TD colSpan=4 align=right nowrap><B>Nine months ended September
      30</B> </TD>
    <TD align=left >&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left>&nbsp; </TD>
    <TD align=left >&nbsp;</TD>
    <TD align=right><B>2011</B> </TD>
    <TD align=left >&nbsp;</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>2011</B> </TD>
    <TD align=left >&nbsp;</TD>
    <TD align=left >&nbsp;</TD>
    <TD align=right><B>2010</B> </TD>
    <TD align=left >&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>&nbsp; </TD>
    <TD width="1%" align=left style="BORDER-BOTTOM: #000000 1px solid"
    ><B></B></TD>
    <TD
      width="10%" align=right style="BORDER-BOTTOM: #000000 1px solid"><B>$000's</B> </TD>
    <TD width="2%" align=left style="BORDER-BOTTOM: #000000 1px solid"
    >&nbsp;</TD>
    <TD width="1%" align=left style="BORDER-BOTTOM: #000000 1px solid"
    ><B></B></TD>
    <TD
      width="10%" align=right style="BORDER-BOTTOM: #000000 1px solid"><B>$000's</B> </TD>
    <TD width="2%" align=left style="BORDER-BOTTOM: #000000 1px solid"
    >&nbsp;</TD>
    <TD width="1%" align=left style="BORDER-BOTTOM: #000000 1px solid"
    ><B></B></TD>
    <TD
      width="10%" align=right style="BORDER-BOTTOM: #000000 1px solid"><B>$000's</B> </TD>
    <TD width="2%" align=left style="BORDER-BOTTOM: #000000 1px solid"
    >&nbsp;</TD>
    <TD width="1%" align=left style="BORDER-BOTTOM: #000000 1px solid"
    ></TD>
    <TD
      width="10%" align=right style="BORDER-BOTTOM: #000000 1px solid"><B>$000's</B> </TD>
    <TD width="2%" align=left style="BORDER-BOTTOM: #000000 1px solid"
    >&nbsp;</TD>
  </TR>
  <TR>
    <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>
    <TD >&nbsp;</TD>
    <TD>&nbsp; </TD>
    <TD >&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left bgColor=#e6efff>Net income (loss) attributable to
      shareholders </TD>
    <TD align=left  bgColor=#e6efff>&nbsp;</TD>
    <TD align=right bgColor=#e6efff>21,836 </TD>
    <TD align=left  bgColor=#e6efff>&nbsp;</TD>
    <TD align=left  bgColor=#e6efff>&nbsp;</TD>
    <TD align=right bgColor=#e6efff>(10,407</TD>
    <TD align=left  bgColor=#e6efff>) </TD>
    <TD align=left  bgColor=#e6efff>&nbsp;</TD>
    <TD align=right bgColor=#e6efff>77,545 </TD>
    <TD align=left  bgColor=#e6efff>&nbsp;</TD>
    <TD align=left  bgColor=#e6efff>&nbsp;</TD>
    <TD align=right bgColor=#e6efff>(23,169</TD>
    <TD align=left  bgColor=#e6efff>) </TD>
  </TR>
  <TR>
    <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>
    <TD >&nbsp;</TD>
    <TD>&nbsp; </TD>
    <TD >&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left bgColor=#e6efff>Adjusted for: </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>
    <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>&nbsp;Loss (gain) on sale and write off of mineral
      properties </TD>
    <TD align=left >&nbsp;</TD>
    <TD align=right>(46,845</TD>
    <TD align=left >) </TD>
    <TD align=left >&nbsp;</TD>
    <TD align=right>65 </TD>
    <TD align=left >&nbsp;</TD>
    <TD align=left >&nbsp;</TD>
    <TD align=right>(46,022</TD>
    <TD align=left >) </TD>
    <TD align=left >&nbsp;</TD>
    <TD align=right>(13,073</TD>
    <TD align=left >) </TD>
  </TR>
  <TR vAlign=top>
    <TD align=left bgColor=#e6efff>&nbsp;Gain on partial disposal of associate
    </TD>
    <TD align=left  bgColor=#e6efff>&nbsp;</TD>
    <TD align=right bgColor=#e6efff>- </TD>
    <TD align=left  bgColor=#e6efff>&nbsp;</TD>
    <TD align=left  bgColor=#e6efff>&nbsp;</TD>
    <TD align=right bgColor=#e6efff>- </TD>
    <TD align=left  bgColor=#e6efff>&nbsp;</TD>
    <TD align=left  bgColor=#e6efff>&nbsp;</TD>
    <TD align=right bgColor=#e6efff>(39,266</TD>
    <TD align=left  bgColor=#e6efff>) </TD>
    <TD align=left  bgColor=#e6efff>&nbsp;</TD>
    <TD align=right bgColor=#e6efff>- </TD>
    <TD align=left  bgColor=#e6efff>&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left>&nbsp;Unrealised (gain) loss on financial instruments at
      FVTPL </TD>
    <TD align=left >&nbsp;</TD>
    <TD align=right>(5,362</TD>
    <TD align=left >) </TD>
    <TD align=left >&nbsp;</TD>
    <TD align=right>2,766 </TD>
    <TD align=left >&nbsp;</TD>
    <TD align=left >&nbsp;</TD>
    <TD align=right>(13,477</TD>
    <TD align=left >) </TD>
    <TD align=left >&nbsp;</TD>
    <TD align=right>(9,237</TD>
    <TD align=left >) </TD>
  </TR>
  <TR vAlign=top>
    <TD align=left bgColor=#e6efff>&nbsp;(Gain) on dilution of associate </TD>
    <TD align=left  bgColor=#e6efff>&nbsp;</TD>
    <TD align=right bgColor=#e6efff>(1,803</TD>
    <TD align=left  bgColor=#e6efff>) </TD>
    <TD align=left  bgColor=#e6efff>&nbsp;</TD>
    <TD align=right bgColor=#e6efff>- </TD>
    <TD align=left  bgColor=#e6efff>&nbsp;</TD>
    <TD align=left  bgColor=#e6efff>&nbsp;</TD>
    <TD align=right bgColor=#e6efff>(1,803</TD>
    <TD align=left  bgColor=#e6efff>) </TD>
    <TD align=left  bgColor=#e6efff>&nbsp;</TD>
    <TD align=right bgColor=#e6efff>- </TD>
    <TD align=left  bgColor=#e6efff>&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>&nbsp;Share of
      loss of associate </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right>624    </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>- </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>4,616    </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>- </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>
    <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 style="BORDER-BOTTOM: #000000 1px solid" align=left>Adjusted net
      (loss) </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right>(31,550</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left
    >) </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right>(7,576</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left
    >) </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right>(18,406</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left
    >) </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right>(45,479</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left
    >) </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>
    <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 style="BORDER-BOTTOM: #000000 1px solid" align=left>Weighted average
      shares outstanding (000's) </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right>80,549 </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>78,767 </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>80,223 </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>77,531 </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>
    <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 style="BORDER-BOTTOM: #000000 2px solid" align=left>Adjusted basic
      (loss) per share (cents) </TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=left
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=right>(0.39</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=left
    >) </TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=left
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=right>(0.10</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=left
    >) </TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=left
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=right>(0.23</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=left
    >) </TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=left
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=right>(0.59</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=left
    >) </TD>
  </TR></TABLE></DIV>
<P align=right>21</P>
<HR style="PAGE-BREAK-AFTER: always" align=center width="100%" color=black
noShade SIZE=5>
<!--$$/page=--><A name=page_22></A>
<P align=justify><B>14. CRITICAL ACCOUNTING POLICIES AND ESTIMATES</B></P>
<P align=justify><B>Critical Accounting Estimates</B></P>
<P align=justify>The preparation of 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. </P>
<P align=justify>There has been no change to the Company&#146;s critical accounting
estimates since June 30, 2011 except for the impairment assessment and the
determination of ore resources and mineral reserves at the Pirquitas mine that
are discussed below. Readers are encouraged to read the critical accounting
policies and estimates as described in the Company&#146;s unaudited interim
consolidated financial statements (note 2) and in the MD&amp;A for the three
months ended March 31, 2011.</P>
<P align=justify><B>Review of asset carrying values and impairment assessment
</B>In accordance with the Company&#146;s accounting policy, each asset or cash
generating unit is evaluated every reporting period to determine whether there
are any indications of impairment. If any such indication exists, a formal
estimate of recoverable amount is performed and an impairment loss is recognised
to the extent that the carrying amount exceeds the recoverable amount. The
recoverable amount of an asset or cash generating group of assets is measured at
the higher of fair value less costs to sell and value in use.</P>
<P align=justify>The determination of fair value and value in use requires
management to make estimates and assumptions about expected production, sales
volumes, commodity prices, reserves, operating costs, closure and
rehabilitiation costs and future capital expenditures. The estimates and
assumptions are subject to risk and uncertainty, hence there is the possibility
that changes in circumstances will alter these projections, which may impact the
recoverable amount of the assets. In such circumstances some or all of the
carrying value of the assets may be further impaired or the impairment charge
reduced with the impact recorded in the income statement.</P>
<P align=justify><B>Determination of ore reserve and mineral resource estimates
</B>The Company estimates its ore reserves and mineral resources based on
information compiled by Qualified Persons as defined by NI 43-101. Reserves
determined in this way are used in the calculation of depreciation, amortization
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 reserve estimates being revised. 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=justify>As at September 30, 2011, the Company determined that there
were impairment indicators for the Company&#146;s wholly-owned operating Pirquitas
mine as a result of revised mineral Resources and Reserve estimates. Management
performed an impairment assessment to determine fair value based on estimates of
discounted future after-tax cash flows expected to be derived from the Pirqutias
mine using a discount rate of 9% and forecasted silver prices that reflect
market consensus. The Company&#146;s assessment concluded that the carrying value of
the Pirquitas&#146; mine assets are not impaired at this time.</P>
<P align=right>22</P>
<HR style="PAGE-BREAK-AFTER: always" align=center width="100%" color=black
noShade SIZE=5>
<!--$$/page=--><A name=page_23></A>
<P align=justify><B>International Financial Reporting Standards (&#147;IFRS&#148;)</B></P>
<P align=justify>Effective January 1, 2011 Canadian publicly-listed entities
were required to prepare their financial statements in accordance with IFRS. Due
to the requirement to present comparative financial information, the effective
transition date is January 1, 2010. The three months ended March 31, 2011 was
the Company&#146;s first reporting period under IFRS.</P>
<P align=justify>The Company has now substantially completed its IFRS changeover
plan, with just the post-implementation phase remaining. </P>
<P align=justify>The following outlines the Company&#146;s transition project, IFRS
transitional impacts and the on-going impact of IFRS on our financial results.
</P>
<P align=justify>Notes 2 and 25 to the consolidated interim financial statements
for the three months ended March 31, 2011 provide more detail on key Canadian
GAAP to IFRS differences, accounting policy decisions and IFRS 1, First-Time
Adoption of International Financial Reporting Standards (&#147;IFRS 1&#148;), optional
exemptions for significant or potentially significant areas that have had an
impact on the Company&#146;s financial statements on transition to IFRS or may have
an impact in future periods.</P>
<P align=justify><I>Shareholders&#146; Equity Impact </I></P>
<P align=justify>As a result of accounting policy choices selected and changes
that were required to be made under IFRS, the Company recorded a reduction in
shareholders&#146; equity of $97.3 million as at January 1, 2010. A full
reconciliation of this adjustment is included in the interim consolidated
financial statements for the three months ended March 31, 2011. The table below
outlines adjustments to shareholders&#146; equity from the adoption of IFRS at
September 30, 2010 for comparative purposes. In accordance with IFRS 1, the
Company was required to maintain all previous estimates and assumptions in
existence including but not limited to metal prices, discount rates, capital and
operating costs, reserves and resources.</P>
<P align=justify>The following is a summary of the adjustments to shareholders&#146;
equity as at September 30, 2010 under IFRS (all of which are outlined in the
notes to the consolidated interim financial statements), expressed in thousands
of USD:</P>
<DIV>
<TABLE
style="BORDER-COLOR: black; FONT-SIZE: 10pt; BORDER-COLLAPSE: collapse; "
cellSpacing=0 cellPadding=0 width="70%" border=0>

  <TR vAlign=top>
    <TD colSpan=3 align=right nowrap><B>September 30</B> </TD>
    <TD align=right width="2%" >&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left nowrap>&nbsp; </TD>
    <TD width="1%" align=left nowrap >&nbsp;</TD>
    <TD width="12%" align=right nowrap><B>2010</B> </TD>
    <TD align=left width="2%" >&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left nowrap style="BORDER-BOTTOM: #000000 1px solid">&nbsp; </TD>
    <TD width="1%" align=left nowrap style="BORDER-BOTTOM: #000000 1px solid"
    ><B></B></TD>
    <TD
      width="12%" align=right nowrap style="BORDER-BOTTOM: #000000 1px solid"><STRONG>$</STRONG>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="2%"
    >&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left bgColor=#e6efff>Total shareholders' equity reported under
      Canadian GAAP </TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="12%" bgColor=#e6efff>624,460 </TD>
    <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD></TR>
  <TR>
    <TD>&nbsp; </TD>
    <TD width="1%" >&nbsp;</TD>
    <TD width="12%">&nbsp; </TD>
    <TD width="2%" >&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left bgColor=#e6efff>Increase (decrease) net of tax in respect
      of: </TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=left width="12%" bgColor=#e6efff>&nbsp; </TD>
    <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD></TR>
  <TR>
    <TD>&nbsp; </TD>
    <TD width="1%" >&nbsp;</TD>
    <TD width="12%">&nbsp; </TD>
    <TD width="2%" >&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left bgColor=#e6efff>Valuation of Pirquitas mine </TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="12%" bgColor=#e6efff>(80,868</TD>
    <TD align=left width="2%"  bgColor=#e6efff>) </TD></TR>
  <TR vAlign=top>
    <TD align=left>Share-based payments </TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=right width="12%">(52</TD>
    <TD align=left width="2%" >) </TD></TR>
  <TR vAlign=top>
    <TD align=left bgColor=#e6efff>Functional currency </TD>
    <TD align=left width="1%"  bgColor=#e6efff>&nbsp;</TD>
    <TD align=right width="12%" bgColor=#e6efff>6,667 </TD>
    <TD align=left width="2%"  bgColor=#e6efff>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left>Convertible notes </TD>
    <TD align=left width="1%" >&nbsp;</TD>
    <TD align=right width="12%">(7,945</TD>
    <TD align=left width="2%" >) </TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left
      bgColor=#e6efff>Deferred tax liabilities </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="1%"
     bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right width="12%"
    bgColor=#e6efff>(6,721</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left width="2%"
     bgColor=#e6efff>) </TD></TR>
  <TR>
    <TD>&nbsp; </TD>
    <TD width="1%" >&nbsp;</TD>
    <TD width="12%">&nbsp; </TD>
    <TD width="2%" >&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=left
      bgColor=#e6efff>Total shareholders' equity reported under IFRS </TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=left width="1%"
     bgColor=#e6efff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=right width="12%"
    bgColor=#e6efff>535,541 </TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=left width="2%"
     bgColor=#e6efff>&nbsp;</TD></TR></TABLE></DIV>
<P align=right>23</P>
<HR style="PAGE-BREAK-AFTER: always" align=center width="100%" color=black
noShade SIZE=5>
<!--$$/page=--><A name=page_24></A>
<P align=justify><I>Comprehensive Income Impact </I></P>
<P align=justify>As a result of accounting policy choices selected and changes
that were required to be made under IFRS, the Company has recorded an increase
in total comprehensive income of $2.6 million and $9.2 million for the three and
nine months ended September, 2010 respectively. </P>
<P align=justify>The following is a summary of the adjustments to comprehensive
income for the three and nine months ended September 30, 2010 under IFRS (all of
which are outlined in the notes to the consolidated interim financial
statements), expressed in thousands of USD:</P>
<DIV>
<TABLE width="90%" border=0 cellPadding=0
cellSpacing=0
style="BORDER-COLOR: black; FONT-SIZE: 10pt; BORDER-COLLAPSE: collapse; ">

  <TR vAlign=top>
    <TD align=left>&nbsp; </TD>
    <TD align=left >&nbsp;</TD>
    <TD align=right nowrap><B>3 months ended</B>    </TD>
    <TD align=right nowrap>&nbsp;</TD>
    <TD align=right nowrap>&nbsp;</TD>
    <TD align=right nowrap><B> 9 months ended</B></TD>
    <TD align=left >&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left>&nbsp; </TD>
    <TD align=left >&nbsp;</TD>
    <TD width="15%" align=right nowrap><B>September 30</B> </TD>
    <TD align=left nowrap >&nbsp;</TD>
    <TD align=left nowrap >&nbsp;</TD>
    <TD width="15%" align=right nowrap><B>September 30</B> </TD>
    <TD align=left >&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left>&nbsp; </TD>
    <TD align=left >&nbsp;</TD>
    <TD align=right nowrap><B>2010</B> </TD>
    <TD align=left nowrap >&nbsp;</TD>
    <TD align=left nowrap >&nbsp;</TD>
    <TD align=right nowrap><B>2010</B> </TD>
    <TD align=left >&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>&nbsp; </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left
    ><B></B></TD>
    <TD align=right nowrap style="BORDER-BOTTOM: #000000 1px solid"><STRONG>$</STRONG>&nbsp;</TD>
    <TD align=left nowrap style="BORDER-BOTTOM: #000000 1px solid"
    >&nbsp;</TD>
    <TD align=left nowrap style="BORDER-BOTTOM: #000000 1px solid"
    ><B></B></TD>
    <TD align=right nowrap style="BORDER-BOTTOM: #000000 1px solid"><STRONG>$</STRONG>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left
    >&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left bgColor=#e6efff>Total comprehensive loss as
      reported under Canadian GAAP </TD>
    <TD width="1%" align=left  bgColor=#e6efff>&nbsp;</TD>
    <TD align=right bgColor=#e6efff>(2,722</TD>
    <TD width="2%" align=left  bgColor=#e6efff>) </TD>
    <TD width="1%" align=left  bgColor=#e6efff>&nbsp;</TD>
    <TD align=right bgColor=#e6efff>(28,932</TD>
    <TD width="2%" align=left  bgColor=#e6efff>) </TD>
  </TR>
  <TR>
    <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 align=left bgColor=#e6efff>Increase (decrease) net of tax in respect
      of: </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>Valuation of Pirquitas mine </TD>
    <TD align=left >&nbsp;</TD>
    <TD align=right>1,040 </TD>
    <TD align=left >&nbsp;</TD>
    <TD align=left >&nbsp;</TD>
    <TD align=right>3,150 </TD>
    <TD align=left >&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left bgColor=#e6efff>Share-based payments </TD>
    <TD align=left  bgColor=#e6efff>&nbsp;</TD>
    <TD align=right bgColor=#e6efff>238 </TD>
    <TD align=left  bgColor=#e6efff>&nbsp;</TD>
    <TD align=left  bgColor=#e6efff>&nbsp;</TD>
    <TD align=right bgColor=#e6efff>824 </TD>
    <TD align=left  bgColor=#e6efff>&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left>Functional currency </TD>
    <TD align=left >&nbsp;</TD>
    <TD align=right>2,973 </TD>
    <TD align=left >&nbsp;</TD>
    <TD align=left >&nbsp;</TD>
    <TD align=right>1,634 </TD>
    <TD align=left >&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left bgColor=#e6efff>Convertible notes </TD>
    <TD align=left  bgColor=#e6efff>&nbsp;</TD>
    <TD align=right bgColor=#e6efff>(2,892</TD>
    <TD align=left  bgColor=#e6efff>) </TD>
    <TD align=left  bgColor=#e6efff>&nbsp;</TD>
    <TD align=right bgColor=#e6efff>9,140 </TD>
    <TD align=left  bgColor=#e6efff>&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>Deferred tax
      liabilities </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=right>1,300    </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>(5,520</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left
    >) </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>
  </TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=left>Total
      comprehensive loss as reported under IFRS </TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=left
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=right>(63</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=left
    >) </TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=left
    >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=right>(19,704</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=left
    >) </TD>
  </TR></TABLE>
</DIV>
<P align=justify><i>Cash Flow Impact</i></P>
<P align=justify>The transition from Canadian GAAP to IFRS had no significant
impact on cash flows generated by the Company.</P>
<P align=justify><I>Control Activities </I></P>
<P align=justify>For all changes to policies and procedures that have been
identified, the effectiveness of internal controls over financial reporting and
disclosure controls and procedures have been assessed and any changes have been
implemented. In addition, controls over the IFRS changeover process have been
implemented, as necessary. The Company has identified and implemented the
required accounting process changes that resulted from the application of IFRS
accounting policies and these changes were not significant. The Company is in
the final stages of completing the design, implementation and documentation of
the internal controls over accounting process changes resulting from the
application of IFRS accounting policies. The existing control framework has been
applied to the IFRS changeover process. All accounting policy changes,
transitional exemption elections and transitional financial position impacts
were subject to review by senior management and the Audit Committee of the Board
of Directors. </P>
<P align=justify><I>Business Activities and Key Performance Measures </I></P>
<P align=justify>The Company is in the process of reviewing the impacts of the
IFRS transition project on its compensation arrangements, in particular those
that are calculated based on indicators in the financial statements. </P>
<P align=justify><I>Information Technology and Systems </I></P>
<P align=justify>The IFRS transition project did not have a significant impact
on information systems for the convergence periods, nor is it expected that
significant changes are required in the post-convergence periods. </P>
<P align=right>24</P>
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<!--$$/page=--><A name=page_25></A>
<P align=justify><I>Post-Implementation </I></P>
<P align=justify>The post-implementation phase will involve continuous
monitoring of changes in IFRS in future periods. It has been noted that the
standard-setting bodies that determine IFRS have significant ongoing projects
that could impact the IFRS accounting policies that the Company has selected. In
particular, there may be additional new or revised IFRSs or Interpretations
issued by the International Financial Reporting Interpretations Committee
(&#147;IFRIC&#148;) in relation to consolidation, financial instruments, leases, revenue
recognition and stripping costs in the production phase of a surface mine. The
International Accounting Standards Board (&#147;IASB&#148;) is also currently working on
an extractive industries project, which could significantly impact the financial
statements of the Company primarily in the areas of capitalization of
exploration costs and disclosures. Processes are in place to ensure that
potential changes are monitored and evaluated. The impact of any new IFRSs and
IFRIC Interpretations will be evaluated as they are drafted and published.</P>
<P align=justify><B>15. FUTURE ACCOUNTING CHANGES</B></P>
<P align=justify>IFRS 9, <I>Financial Instruments </I>(&#147;IFRS 9&#148;) was issued in
November 2009 and contained requirements for financial assets. This standard
addresses classification and measurement of financial assets and replaces
mulitiple category and measurement models in IAS 39 for debt instruments with a
new mixed measurement model having only two categories: amortized cost and
FVTPL. IFRS 9 also replaces the models for measuring equity instruments, and
such investments are either recognised at FVTPL or at fair value through other
comprehensive income. Where such equity instruments are measured at fair value
through other comprehensive income, dividends are recognised in profit or loss
to the extent not clearly representing a return of investment; however, other
gains and losses (including impairments) associated with such instruments remain
in accumulated comprehensive income indefinitely.</P>
<P align=justify>Requirements for financial liabilities were added in October
2010 and they largely carried forward existing requirements in IAS 39, Financial
Instruments &#150; Recognition and Measurement, except that fair value changes due to
credit risk for liabilities designated at fair value through profit and loss
would generally be recorded in other comprehensive income.</P>
<P align=justify>This standard is required to be applied for accounting periods
beginning on or after January 1, 2013, with earlier adoption permitted. The
Company has not yet assessed the impact of the standard or determined whether it
will adopt the standard early.</P>
<P style="MARGIN-LEFT: 5%" align=justify>On May 12, 2011 the IASB issued the
following statements:</P>
<TABLE
style="BORDER-COLOR: black; FONT-SIZE: 10pt; BORDER-COLLAPSE: collapse; "
cellSpacing=0 cellPadding=0 width="100%" border=0 BCLLIST>

  <TR>
    <TD width="5%"  >&nbsp;</TD>
    <TD vAlign=top align=left width="5%">i. </TD>
    <TD>
      <P align=justify>IFRS 10, <I>Consolidation </I>(&#147;IFRS 10&#148;) (see further
      details below)</P></TD></TR>
  <TR>
    <TD width="5%" >&nbsp;</TD>
    <TD align=left width="5%">&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
  <TR>
    <TD width="5%" >&nbsp;</TD>
    <TD vAlign=top align=left width="5%">ii. </TD>
    <TD>
      <P align=justify>IFRS 11 <I>Joint Venture </I>(&#147;IFRS 11&#148;) ( see further
      details below)</P></TD></TR>
  <TR>
    <TD width="5%" >&nbsp;</TD>
    <TD align=left width="5%">&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
  <TR>
    <TD width="5%" >&nbsp;</TD>
    <TD vAlign=top align=left width="5%">iii. </TD>
    <TD>
      <P align=justify>IFRS 12 <I>Disclosures of Involvement with Other Entities
      </I>(&#147;IFRS 12&#148;) (see further details below)</P></TD></TR>
  <TR>
    <TD width="5%" >&nbsp;</TD>
    <TD align=left width="5%">&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
  <TR>
    <TD width="5%" >&nbsp;</TD>
    <TD vAlign=top align=left width="5%">iv. </TD>
    <TD>
      <P align=justify>IAS 27 <I>Separate Financial Statement </I>(revised 2011)
      (&#147;IAS 27&#148;), has been amended for issuance of IFRS 10 while maintaining the
      current guidance for separate financial statements</P></TD></TR>
  <TR>
    <TD width="5%" >&nbsp;</TD>
    <TD align=left width="5%">&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
  <TR>
    <TD width="5%" >&nbsp;</TD>
    <TD vAlign=top align=left width="5%">v. </TD>
    <TD>
      <P align=justify>IAS 28 <I>Investments in Associates and Joint Ventures
      </I>(revised 2011) (&#147;IAS 28&#148;), has been amended for conforming changes
      based on the issuance of IFRS 10 and IFRS 11.</P></TD></TR></TABLE>
<P style="MARGIN-LEFT: 5%" align=justify>Each of these standards has an effective date for annual periods beginning on or after January 1, 2013. Early adoption of any of these standards is permitted only if the other standards are also adopted early. </P>
<TABLE
style="BORDER-COLOR: black; FONT-SIZE: 10pt; BORDER-COLLAPSE: collapse; "
cellSpacing=0 cellPadding=0 width="100%" border=0 BCLLIST>

  <TR>
    <TD width="5%"  >&nbsp;</TD>
    <TD vAlign=top width="5%">i. </TD>
    <TD>
      <P align=justify>IFRS 10 establishes control as the single basis for
      consolidation of entities, regardless of the nature of the investee. An
      entity has control over an investee when it has power over it; it is
      exposed, or has the rights, to variable returns from its involvement with
      the investee; and has the ability to use its power over the investee to
      affect those returns. IFRS 10 replaces IAS 27&#146;s guidance that addresses when and how an investor should
      prepare consolidated financial statements and replaces all of SIC-12. The
      Company has not yet assessed the impact of the standard or determined
  whether it will adopt the standard early.</P></TD></TR></TABLE>
<P align=right>25</P>
<HR style="PAGE-BREAK-AFTER: always" align=center width="100%" color=black
noShade SIZE=5>
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<TABLE
style="BORDER-COLOR: black; FONT-SIZE: 10pt; BORDER-COLLAPSE: collapse; "
cellSpacing=0 cellPadding=0 width="100%" border=0 BCLLIST>
  <TR>
    <TD width="5%" >&nbsp;</TD>
    <TD vAlign=top width="5%">ii. </TD>
    <TD>
      <P align=justify>IFRS 11 requires a venturer to classify its interest in a
      joint arrangement as a joint venture or joint operation. A joint operation
      is a joint arrangement whereby the parties that have joint control have
      rights to the assets and the obligations for the liabilities. A joint
      venture is a joint arrangement whereby the parties that have joint control
      of the arrangement have rights to the net assets of the arrangement. The
      determination whether a joint arrangement constitutes a joint operation or
      a joint venture is based on the parties&#146; rights and responsibilities under
      the arrangement and thus the existence of a separate legal vehicle is no
      longer the main factor in making such determination. Joint ventures will
      be accounted for using the equity method of accounting thereby eliminating
      the option available under existing IFRS to use either the proportionate
      consolidation method or the equity method. Joint operations are accounted
      for by a venturer by recognizing its share of the assets, liabilities,
      revenues and expenses of the joint operation. The Company has not yet
      assessed the impact of the standard or determined whether it will adopt
      the standard early.</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%">iii. </TD>
    <TD>
      <P align=justify>IFRS 12 sets out the required disclosures relating to an
      entity&#146;s interest in subsidiaries, joint arrangements, associates and
      unconsolidated structured entities. An entity is required to disclose
      information that enable users of its financial statements to assess the
      nature of, and risks associated with, its interests in other entities and
      the effects of those interests on its financial statements. The Company
      has not yet assessed the impact of the standard or determined whether it
      will adopt the standard early.</P></TD></TR></TABLE>
<P align=justify>IFRS 13 <I>Fair Value Measurement </I>(&#147;IFRS 13&#148;) was issued on
May 12, 2011 and establishes a single framework for measuring fair value where
it is required by other standards. IFRS 13 applies to all transactions (whether
financial or non-financial) for which IFRS requires or permits fair value
measurements, with the exception of share-based payment transactions accounted
for under IFRS 2 <I>Share-based Payment </I>and leasing transactions within the
scope of IAS 12 <I>Leases</I>, and measurements that have some similarities to
fair value but are not fair value such as net realisable value under IAS 2
<I>Inventories </I>or value in use under IAS 36 <I>Impairment of assets</I>.
Fair value is defined as the price that would be received to sell an asset or
paid to transfer a liability in an orderly transaction between market
participants at the measurement date (i.e. an exit price).</P>
<P align=justify>This standard is required to be applied for accounting periods
beginning on or after January 1, 2013, with earlier adoption permitted. The
Company has not yet assessed the impact of the standard or determined whether it
will adopt the standard early.</P>
<P align=justify>On June 16, 2011 the IASB issued <I>Presentation of Items of
Other Comprehensive Income </I>(amendments to IAS 1, Presentation of Financial
statements). The amendments require the grouping of items presented in other
comprehensive income into items that might be reclassified to profit or loss in
subsequent periods and items that will not be reclassified to profit or loss in
subsequent periods. The amendments are effective for annual periods beginning on
or after July 1, 2012, with full retrospective application. The Company has not
yet assessed the impact of the standard or determined whether it will adopt the
standard early.</P>
<P align=justify>In October 2011 the IASB issued IFRIC 20 <I>Stripping Costs in
the Production Phase of a Mine </I>(&#147;IFRIC 20&#148;). This interpretation provides
guidance on the accounting for the costs of stripping activity in the production
phase when two benefits accrue to the entity: usable ore that can be used to
produce inventory and improved access to further quantities of material that
will be mined in future periods. IFRIC 20 is applicable for annual periods
beginning on or after January 1, 2013 with early adoption permitted. The Company
has not yet assessed the impact of the standard or determined whether it will
adopt the standard early.</P>
<P align=right>26</P>
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<P align=justify><B>16. 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. On August 31, 2011 the Chief
Financial Officer left the Company, appropriate actions were implemented to
ensure that this would not have a material effect on internal control over
financial reporting. There have been no other changes in internal control over
financial reporting during the quarter ended September 30, 2011 that have
materially affected, or are reasonably likely to affect internal control over
financial reporting.</P>
<P align=justify><B>17. CAUTIONARY NOTE REGARDING FORWARD-LOOKING
STATEMENTS</B></P>
<p align="justify">The MD&amp;A contains &ldquo;forward-looking statements&rdquo; within the meaning of the United States Private Securities Litigation Reform Act of 1995 and &ldquo;forward looking information&rdquo; within Canadian securities laws (collectively &ldquo;forward looking statements&rdquo;) related to the Company and its operations, and in particular, 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. 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 and when the property is developed or further developed. 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.  These forward looking statements relate to, among other things:  future production of silver and other metals; future cash costs per ounce of silver; the price of silver and other metals; the effects of laws, regulations and government policies affecting our operations or potential future operations; future successful development of our San Luis and Pitarrilla projects and other development projects; the sufficiency of the Company&rsquo;s current working capital, anticipated operating cash flow or our ability to raise necessary funds; estimated production rates for silver and other payable metal produced by the Company; timing of production and the cash and total costs of production at our Pirquitas mine; the estimated cost of sustaining capital; ongoing or future development plans and capital replacement, improvement or remediation programs; the estimates of expected or anticipated economic returns from the Company&rsquo;s mining projects including; future sales of the metals, concentrates or other products produced by the Company; and the Company&rsquo;s plans and expectations for its properties and operations. </p>
<p align="justify">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 &ldquo;expects&rdquo;, &ldquo;anticipates&rdquo;, &ldquo;plans&rdquo;, &ldquo;projects&rdquo;, &ldquo;estimates&rdquo;, &ldquo;assumes&rdquo;, &ldquo;intends&rdquo;, &ldquo;strategy&rdquo;, &ldquo;goals&rdquo;, &ldquo;objectives&rdquo;, &ldquo;potential&rdquo; or variations thereof, or stating that certain actions, events or results &ldquo;may&rdquo;, &ldquo;could&rdquo;, &ldquo;would&rdquo;, &ldquo;might&rdquo; or &ldquo;will&rdquo; 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:  uncertainty of production and cost estimates for the Pirquitas Mine; uncertainty of production at our mineral exploration properties; risks and uncertainties associated with new mining operations, development or including start-up delays and operational issues; risks and hazards associated with the business of mineral exploration, development and mining (including environmental hazards, industrial accidents, unusual or unexpected geological or structure formations, pressures, cave-ins and flooding); risks and uncertainties relating to the interpretation of drill results and the geology, grade and continuity of our mineral deposits; unpredictable risks and hazards related to the development and operation of a mine or mine property that are beyond our control;  risks related to our ability to obtain adequate financing for our planned development activities and to complete further exploration programs; fluctuations in spot and forward markets for silver, gold and base metals and certain other commodities; our history of losses and the potential for future losses; risks related to general economic conditions, including recent market and world events and conditions; inadequate insurance, or inability to obtain insurance, to cover these risks and hazards; relationships with and claims by local communities and indigenous populations; diminishing quantities or grades of mineral reserves as properties are mined;  challenges to, or difficulty maintaining, the Company&rsquo;s title to properties and continued ownership thereof; risks related to our covenants given with respect to our 4.5% convertible senior notes due 2028; differences in U.S. and Canadian practices for reporting mineral resources and reserves; changes in national and local legislation, taxation, controls or regulations and political or economic developments or changes in Canada, the United States, Argentina, Mexico, Peru or other countries where the Company holds assets or may carry on business; risks related to the delay in obtaining or failure to obtain required permits, or non-compliance with permits we have obtained; increased costs and restrictions on operations due to compliance with environmental laws and regulations; regulations and pending legislation governing issues involving climate change, as well as the physical impacts of climate change; risks related to reclamation activities on our properties; uncertainties related to title to our mineral properties and the surface rights thereon; our ability to successfully acquire additional commercially mineable mineral rights; risks related to currency fluctuations (such as the Argentine peso, Peruvian sol and Mexican peso); increased costs affecting the mining industry, including the current high rate of inflation in Argentina; increased competition in the mining industry for properties, qualified personnel and management; risks related to some of our directors&rsquo; and officers&rsquo; involvement with other natural resource companies; our ability to attract and retain qualified management to grow our business; risks related to estimates of future income tax assets and liabilities; risks related to claims and legal proceedings; our ability to maintain adequate internal control over financial reporting; our ability to monetize the full value of our interest in Pretium; and those factors identified under the heading &ldquo;Risk Factors&rdquo; in the Company&rsquo;s most recent Form 20-F and Annual Information Form filed with the United States Securities and Exchange Commission (the &ldquo;SEC&rdquo;) and Canadian and Provincial securities regulatory authorities.</p>
<P align=right>27</P>
<HR style="PAGE-BREAK-AFTER: always" align=center width="100%" color=black
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<!--$$/page=--><A name=page_28></A>
<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>Cautionary note to U.S. investors: </B>The terms &#147;measured
mineral resource&#148;, &#147;indicated mineral resource&#148;, and &#147;inferred mineral resource&#148;
used in this MD&amp;A are Canadian geological and mining terms as defined in
accordance with National Instrument 43-101, Standards of Disclosure for Mineral
Projects (&#147;NI 43-101&#148;) under the guidelines set out in the Canadian Institute of
Mining, Metallurgy and Petroleum (the &#147;CIM&#148;) Standards on Mineral Resources and
Mineral Reserves. We advise U.S. investors that while such terms are recognized
and required under Canadian regulations, the SEC does not recognize these terms.
&#147;Inferred mineral resources&#148; in particular have a great amount of uncertainty as
to their economic feasibility. It cannot be assumed that all or any part of an
inferred mineral resource will ever be upgraded to a higher category. Under
Canadian rules estimates of inferred mineral resources may not generally form
the basis of feasibility or other economic studies. U.S. investors are cautioned
not to assume that any part or all of an inferred mineral resource exists, or is
economically or legally mineable. Disclosure of contained metal expressed in
ounces is in compliance with NI 43-101, but does not meet the requirements of
Industry Guide 7 of the SEC, which will only accept the disclosure of tonnage
and grade estimates for non-reserve mineralization.</P>
<P align=right>28</P>
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</DOCUMENT>
<DOCUMENT>
<TYPE>EX-99.3
<SEQUENCE>4
<FILENAME>exhibit99-3.htm
<DESCRIPTION>CERTIFICATION
<TEXT>
<HTML>
<HEAD>
   <TITLE>Silver Standard Resources Inc.: Exhibit 99.3 - 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">
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<TABLE
style="BORDER-COLOR: black; FONT-SIZE: 10pt; BORDER-COLLAPSE: collapse; "
cellSpacing=0 cellPadding=0 width="100%" border=0>

  <TR vAlign=bottom>
    <TD align=center><B>Form 52-109F2</B> </TD></TR>
  <TR vAlign=top>
    <TD align=center><B>Certification of Interim Filings</B> </TD></TR>
  <TR vAlign=bottom>
    <TD align=center><B>Full Certificate</B> </TD></TR></TABLE>
<P align=justify>I, John Smith, Chief Executive Officer of Silver Standard
Resources Inc., certify the following: </P>
<TABLE
style="BORDER-COLOR: black; FONT-SIZE: 10pt; BORDER-COLLAPSE: collapse; "
cellSpacing=0 cellPadding=0 width="100%" border=0 BCLLIST>

  <TR>
    <TD vAlign=top width="5%">1. </TD>
    <TD colSpan=3>
      <P align=justify>I have reviewed the interim financial report and interim
      MD&amp;A (together, the &#147;interim filings&#148;) of Silver Standard Resources
      Inc. (the &#147;issuer&#148;) for the interim period ended September 30,
  2011.</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 vAlign=top width="5%">2. </TD>
    <TD colSpan=3>
      <P align=justify>Based on my knowledge, having exercised reasonable
      diligence, the interim filings do not contain any untrue statement of a
      material fact or omit to state a material fact required to be stated or
      that is necessary to make a statement not misleading in light of the
      circumstances under which it was made, with respect to the period covered
      by the interim filings.</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 vAlign=top width="5%">3. </TD>
    <TD colSpan=3>
      <P align=justify>Based on my knowledge, having exercised reasonable
      diligence, the interim financial report together with the other financial
      information included in the interim filings fairly present in all material
      respects the financial condition, results of performance and cash flows of
      the issuer, as of the date of and for the periods presented in the interim
      filings.</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 vAlign=top width="5%">4. </TD>
    <TD colSpan=3>
      <P align=justify>The issuer&#146;s other certifying officer and I are
      responsible for establishing and maintaining disclosure controls and
      procedures (DC&amp;P) and internal control over financial reporting
      (ICFR), as those terms are defined in National Instrument 52-109.</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%"></TD>
    <TD colSpan=3>
      <P align=justify><I>Certification of Disclosure in Issuers&#146; Annual and
      Interim Filings</I>, for the issuer.</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 vAlign=top width="5%">5. </TD>
    <TD colSpan=3>
      <P align=justify>Subject to the limitations, if any, described in
      paragraphs 5.2 and 5.3, the issuer&#146;s other certifying officer and I have,
      as at the end of the period covered by the interim filings</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%"></TD>
    <TD vAlign=top width="5%">(a) </TD>
    <TD colSpan=2>
      <P align=justify>designed DC&amp;P, or caused it to be designed under our
      supervision, to provide reasonable assurance that</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%"></TD>
    <TD width="5%"></TD>
    <TD vAlign=top width="5%">(i) </TD>
    <TD>
      <P align=justify>material information relating to the issuer is made known
      to us by others, particularly during the period in which the interim
      filings are being prepared; and</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%"></TD>
    <TD width="5%"></TD>
    <TD vAlign=top width="5%">(ii) </TD>
    <TD>
      <P align=justify>information required to be disclosed by the issuer in its
      annual filings, interim filings or other reports filed or submitted by it
      under securities legislation is recorded, processed, summarized and
      reported within the time periods specified in securities legislation;
      and</P></TD></TR>
  <TR>
    <TD width="5%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD>&nbsp;</TD>
  <TR>
    <TD width="5%"></TD>
    <TD vAlign=top width="5%">(b) </TD>
    <TD colSpan=2>
      <P align=justify>designed ICFR, or caused it to be designed under our
      supervision, to provide reasonable assurance regarding the reliability of
      financial reporting and the preparation of financial statements for
      external purposes in accordance with the issuer&#146;s GAAP.</P></TD></TR>
  <TR>
    <TD width="5%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD>&nbsp;</TD>
  <TR>
    <TD vAlign=top width="5%">5.1 </TD>
    <TD colSpan=3>
      <P align=justify>The control framework the issuer&#146;s other certifying
      officer and I used to design the issuer&#146;s ICFR is based on criteria
      established in &#147;Internal Control - Integrated Framework&#148; issued by The
      Committee of Sponsoring Organizations of the Treadway Commission
      (COSO).</P></TD></TR></TABLE><BR>
<!--$$/page=-->
<TABLE
style="BORDER-COLOR: black; FONT-SIZE: 10pt; BORDER-COLLAPSE: collapse; "
cellSpacing=0 cellPadding=0 width="100%" border=0 BCLLIST>

  <TR>
    <TD vAlign=top width="5%">5.2 </TD>
    <TD>
      <P align=justify>N/A</P></TD></TR>
  <TR>
    <TD width="5%">&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
  <TR>
    <TD vAlign=top width="5%">5.3 </TD>
    <TD>
      <P align=justify>N/A</P></TD></TR>
  <TR>
    <TD width="5%">&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
  <TR>
    <TD vAlign=top width="5%">6. </TD>
    <TD>
      <P align=justify>The issuer has disclosed in its interim MD&amp;A any
      change in the issuer&#146;s ICFR that occurred during the period beginning on
      July 1, 2011 and ended on September 30, 2011 that has materially affected,
      or is reasonably likely to materially affect, the issuer&#146;s
  ICFR.</P></TD></TR></TABLE>
<P align=justify>Date: November 9, 2011 </P>
<TABLE
style="BORDER-COLOR: black; FONT-SIZE: 10pt; BORDER-COLLAPSE: collapse; "
cellSpacing=0 cellPadding=0 width="100%" border=0>

  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>Signed: <I>&#147;John
      Smith&#148;</I> </TD>
    <TD align=left width="50%" >&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left>John Smith </TD>
    <TD align=left width="50%" >&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left>Chief Executive Officer </TD>
    <TD align=left width="50%" >&nbsp;</TD></TR></TABLE>
<P align=center>1</P>
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</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-99.4
<SEQUENCE>5
<FILENAME>exhibit99-4.htm
<DESCRIPTION>CERTIFICATION
<TEXT>
<HTML>
<HEAD>
   <TITLE>Silver Standard Resources Inc.: Exhibit 99.4 - Filed by newsfilecorp.com</TITLE>
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<A name="page_1"></A>

<BR>
<TABLE style="font-size:10pt;border-color:black;border-collapse:collapse;" cellpadding="0" cellspacing="0" width="100%" border="0"><TR valign="bottom">
	<TD align=center>
<B>Form 52-109F2</B>
	</TD>
</TR>
<TR valign="top">
	<TD align=center>
<B>Certification of Interim Filings</B>
	</TD>
</TR>
<TR valign="bottom">
	<TD align=center>
<B>Full Certificate</B>
	</TD>
</TR>
</TABLE>
<P align="justify">
I, Matthew Freeman, Interim Chief Financial Officer of Silver Standard Resources Inc., certify the following: </P>
<TABLE BCLLIST style="font-size:10pt;border-color:black;border-collapse:collapse;" cellpadding="0" cellspacing="0" width="100%" border="0">
<TR>
	<TD width=5% valign=top>
1. 	</TD>
	<TD colspan=3>
<P align="justify">I have reviewed the interim financial report and interim MD&amp;A (together, the &#147;interim filings&#148;) of Silver Standard Resources Inc. (the &#147;issuer&#148;) for the interim period ended September 30, 2011.</P>
	</TD>
</TR>
<TR><TD>&nbsp;</TD><TD>&nbsp;</TD><TD>&nbsp;</TD><TD>&nbsp;</TD></TR><TR>
	<TD width=5% valign=top>
2. 	</TD>
	<TD colspan=3>
<P align="justify">Based on my knowledge, having exercised reasonable diligence, the interim filings do not contain any untrue statement of a material fact or omit to state a material fact required to be stated or that is necessary to make a
statement not misleading in light of the circumstances under which it was made, with respect to the period covered by the interim filings.</P>
	</TD>
</TR>
<TR><TD>&nbsp;</TD><TD>&nbsp;</TD><TD>&nbsp;</TD><TD>&nbsp;</TD></TR><TR>
	<TD width=5% valign=top>
3. 	</TD>
	<TD colspan=3>
<P align="justify">Based on my knowledge, having exercised reasonable diligence, the interim financial report together with the other financial information included in the interim filings fairly present in all material respects the financial
condition, results of performance and cash flows of the issuer, as of the date of and for the periods presented in the interim filings.</P>
	</TD>
</TR>
<TR><TD>&nbsp;</TD><TD>&nbsp;</TD><TD>&nbsp;</TD><TD>&nbsp;</TD></TR><TR>
	<TD width=5% valign=top>
4. 	</TD>
	<TD colspan=3>
<P align="justify">The issuer&#146;s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (DC&amp;P) and internal control over financial reporting (ICFR), as those terms are defined in
National Instrument 52-109.</P>
	</TD>
</TR>
<TR><TD>&nbsp;</TD><TD>&nbsp;</TD><TD>&nbsp;</TD><TD>&nbsp;</TD></TR><TR>
<TD width=5%></TD>	<TD colspan=3>
<P align="justify"><I>Certification of Disclosure in Issuers&#146; Annual and Interim Filings</I>, for the issuer.</P>
	</TD>
</TR>
<TR><TD>&nbsp;</TD><TD>&nbsp;</TD><TD>&nbsp;</TD><TD>&nbsp;</TD></TR><TR>
	<TD width=5% valign=top>
5. 	</TD>
	<TD colspan=3>
<P align="justify">Subject to the limitations, if any, described in paragraphs 5.2 and 5.3, the issuer&#146;s other certifying officer and I have, as at the end of the period covered by the interim filings</P>
	</TD>
</TR>
<TR><TD>&nbsp;</TD><TD>&nbsp;</TD><TD>&nbsp;</TD><TD>&nbsp;</TD></TR><TR>
<TD width=5%></TD>	<TD width=5% valign=top>
(a) 	</TD>
	<TD colspan=2>
<P align="justify">designed DC&amp;P, or caused it to be designed under our supervision, to provide reasonable assurance that</P>
	</TD>
</TR>
<TR><TD>&nbsp;</TD><TD>&nbsp;</TD><TD>&nbsp;</TD><TD>&nbsp;</TD></TR><TR>
<TD width=5%></TD><TD width=5%></TD>	<TD width=5% valign=top>
(i) 	</TD>
	<TD>
<P align="justify">material information relating to the issuer is made known to us by others, particularly during the period in which the interim filings are being prepared; and</P>
	</TD>
</TR>
<TR><TD>&nbsp;</TD><TD>&nbsp;</TD><TD>&nbsp;</TD><TD>&nbsp;</TD></TR><TR>
<TD width=5%></TD><TD width=5%></TD>	<TD width=5% valign=top>
(ii) 	</TD>
	<TD>
<P align="justify">information required to be disclosed by the issuer in its annual filings, interim filings or other reports filed or submitted by it under securities legislation is recorded, processed, summarized and reported within the time
periods specified in securities legislation; and</P>
	</TD>
</TR>
<TD>&nbsp;</TD><TD>&nbsp;</TD><TD>&nbsp;</TD><TD>&nbsp;</TD><TR>
<TD width=5%></TD>	<TD width=5% valign=top>
(b) 	</TD>
	<TD colspan=2>
<P align="justify">designed ICFR, or caused it to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance
with the issuer&#146;s GAAP.</P>
	</TD>
</TR>
<TD>&nbsp;</TD><TD>&nbsp;</TD><TD>&nbsp;</TD><TD>&nbsp;</TD><TR>
	<TD width=5% valign=top>
5.1 	</TD>
	<TD colspan=3>
<P align="justify">The control framework the issuer&#146;s other certifying officer and I used to design the issuer&#146;s ICFR is based on criteria established in &#147;Internal Control - Integrated Framework&#148; issued by The Committee of Sponsoring
      Organizations of the Treadway Commission (COSO).</P>
	</TD>
</TR>
</TABLE>
<BR>
<TABLE
style="BORDER-COLOR: black; FONT-SIZE: 10pt; BORDER-COLLAPSE: collapse; "
cellSpacing=0 cellPadding=0 width="100%" border=0 BCLLIST>
  <TR>
    <TD vAlign=top width="5%">5.2 </TD>
    <TD>
      <P align=justify>N/A</P></TD></TR>
  <TR>
    <TD width="5%">&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
  <TR>
    <TD vAlign=top width="5%">5.3 </TD>
    <TD>
      <P align=justify>N/A</P></TD></TR>
  <TR>
    <TD width="5%">&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
  <TR>
    <TD vAlign=top width="5%">6. </TD>
    <TD>
      <P align=justify>The issuer has disclosed in its interim MD&amp;A any
      change in the issuer&#146;s ICFR that occurred during the period beginning on
      July 1, 2011 and ended on September 30, 2011 that has materially affected,
      or is reasonably likely to materially affect, the issuer&#146;s
  ICFR.</P></TD></TR></TABLE>
<P align=justify>Date: November 9, 2011 </P>
<TABLE
style="BORDER-COLOR: black; FONT-SIZE: 10pt; BORDER-COLLAPSE: collapse; "
cellSpacing=0 cellPadding=0 width="100%" border=0>

  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>Signed:
      <I>&#147;Matthew Freeman&#148; </I></TD>
    <TD align=left width="50%" >&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left>Matthew Freeman </TD>
    <TD align=left width="50%" >&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left>Interim Chief Financial Officer </TD>
    <TD align=left width="50%" >&nbsp;</TD></TR></TABLE>
<P align=center>1</P>
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</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-99.5
<SEQUENCE>6
<FILENAME>exhibit99-5.htm
<DESCRIPTION>MATERIAL CHANGE REPORT
<TEXT>
<HTML>
<HEAD>
   <TITLE>Silver Standard Resources Inc.: Exhibit 99.5 - Filed by newsfilecorp.com</TITLE>
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<BODY style="font-size:10pt;">

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<P align=right><B>Form 51-102F3</B></P>
<P align=center><B><I>Material Change Report</I></B></P>
<TABLE
style="BORDER-COLOR: black; FONT-SIZE: 10pt; BORDER-COLLAPSE: collapse; "
cellSpacing=0 cellPadding=0 width="100%" border=0>

  <TR vAlign=top>
    <TD align=left ><B>Item 1</B> </TD>
    <TD align=left width="90%"><B>Name and Address of Company</B> </TD></TR>
  <TR>
    <TD align=left >&nbsp;</TD>
    <TD align=left width="90%" >&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left >&nbsp; </TD>
    <TD align=left width="90%">Silver Standard Resources Inc. </TD></TR>
  <TR vAlign=top>
    <TD align=left >&nbsp; </TD>
    <TD align=left width="90%">1400 - 999 West Hastings Street </TD></TR>
  <TR vAlign=top>
    <TD align=left >&nbsp; </TD>
    <TD align=left width="90%">Vancouver, BC V6C 2W2 </TD></TR>
  <TR>
    <TD align=left >&nbsp;</TD>
    <TD align=left width="90%" >&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left ><B>Item 2</B> </TD>
    <TD align=left width="90%"><B>Date of Material Change</B> </TD></TR>
  <TR>
    <TD align=left >&nbsp;</TD>
    <TD align=left width="90%" >&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left >&nbsp; </TD>
    <TD align=left width="90%">November 9, 2011 </TD></TR>
  <TR>
    <TD align=left >&nbsp;</TD>
    <TD align=left width="90%" >&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left ><B>Item 3</B> </TD>
    <TD align=left width="90%"><B>News Release</B> </TD></TR>
  <TR>
    <TD align=left >&nbsp;</TD>
    <TD align=left width="90%" >&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left ></TD>
    <TD align=left width="90%">
      <P align=justify>The news release dated November 9, 2011 was disseminated
      through Marketwire&#146;s Combined Canadian Timely Disclosure Network.
  </P></TD></TR>
  <TR>
    <TD align=left >&nbsp;</TD>
    <TD align=left width="90%" >&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left ><B>Item 4</B> </TD>
    <TD align=left width="90%"><B>Summary of Material Change</B> </TD></TR>
  <TR>
    <TD align=left >&nbsp;</TD>
    <TD align=left width="90%" >&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left ></TD>
    <TD align=left width="90%">
      <P align=justify><B>The </B>Company announced its unaudited financial and
      operating results for the quarter ended September 30, 2011. The Company
      also disclosed a reduction of its mineral resources and reserve at the
      Pirquitas mine in Argentina. </P></TD></TR>
  <TR>
    <TD align=left >&nbsp;</TD>
    <TD align=left width="90%" >&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left ><B>Item 5</B> </TD>
    <TD align=left width="90%"><B>Full Description of Material Change</B>
  </TD></TR>
  <TR>
    <TD align=left >&nbsp;</TD>
    <TD align=left width="90%" >&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left >&nbsp; </TD>
    <TD align=left width="90%">Please see attached news release. </TD></TR>
  <TR>
    <TD align=left >&nbsp;</TD>
    <TD align=left width="90%" >&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left >&nbsp; </TD>
    <TD align=left width="90%"><B>5.1 Full Description of Material Change</B>
    </TD></TR>
  <TR>
    <TD align=left >&nbsp;</TD>
    <TD align=left width="90%" >&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left >&nbsp; </TD>
    <TD align=left width="90%">See news release dated November 9, 2011. </TD></TR>
  <TR>
    <TD align=left >&nbsp;</TD>
    <TD align=left width="90%" >&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left >&nbsp; </TD>
    <TD align=left width="90%"><B>5.2 Disclosure for Restructuring
      Transactions</B> </TD></TR>
  <TR>
    <TD align=left >&nbsp;</TD>
    <TD align=left width="90%" >&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left >&nbsp; </TD>
    <TD align=left width="90%">Not applicable. </TD></TR>
  <TR>
    <TD align=left >&nbsp;</TD>
    <TD align=left width="90%" >&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left ><B>Item 6</B> </TD>
    <TD align=left width="90%"><B>Reliance on subsection 7.1(2) of National
      Instrument 51-102</B> </TD></TR>
  <TR>
    <TD align=left >&nbsp;</TD>
    <TD align=left width="90%" >&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left >&nbsp; </TD>
    <TD align=left width="90%">Not applicable. </TD></TR>
  <TR>
    <TD align=left >&nbsp;</TD>
    <TD align=left width="90%" >&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left ><B>Item 7</B> </TD>
    <TD align=left width="90%"><B>Omitted Information</B> </TD></TR>
  <TR>
    <TD align=left >&nbsp;</TD>
    <TD align=left width="90%" >&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left >&nbsp; </TD>
    <TD align=left width="90%">Not applicable. </TD></TR>
  <TR>
    <TD align=left >&nbsp;</TD>
    <TD align=left width="90%" >&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left ><B>Item 8</B> </TD>
    <TD align=left width="90%"><B>Executive Officer</B> </TD></TR>
  <TR>
    <TD align=left >&nbsp;</TD>
    <TD align=left width="90%" >&nbsp;</TD></TR>
  <TR vAlign=bottom>
    <TD align=center>&nbsp;</TD>
    <TD align=left width="90%" >Kristen Riddell, Vice President,
      General Counsel and Corporate Secretary&nbsp;&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left >&nbsp; </TD>
    <TD align=left width="90%">604.689.3846 </TD></TR>
  <TR>
    <TD align=left >&nbsp;</TD>
    <TD align=left width="90%" >&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left ><B>Item 9</B> </TD>
    <TD align=left width="90%"><B>Date of Report</B> </TD></TR>
  <TR>
    <TD align=left >&nbsp;</TD>
    <TD align=left width="90%" >&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left >&nbsp; </TD>
    <TD align=left width="90%">Dated at Vancouver, BC, this 9<SUP>th </SUP>day
      of November, 2011 </TD></TR></TABLE><BR>
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<BR>
<TABLE
style="BORDER-COLOR: black; FONT-SIZE: 10pt; BORDER-COLLAPSE: collapse; "
cellSpacing=0 cellPadding=0 width="100%" border=0>

  <TR vAlign=top>
    <TD align=left>November 9, 2011 </TD>
    <TD align=right width="50%">News Release 11-25 </TD></TR></TABLE>
<P align=center><B>SILVER STANDARD REPORTS THIRD QUARTER 2011 RESULTS AND LOWERS
<BR>PIRQUITAS MINERAL RESOURCES &amp; RESERVE ESTIMATE</B></P>
<P align=justify>VANCOUVER, B.C. -- Silver Standard Resources Inc. (NASDAQ:
SSRI, TSX: SSO) (&#147;Silver Standard&#148; or the &#147;Company&#148;) reported unaudited
financial and operating results for the third quarter ended September 30, 2011.
The Company also disclosed a reduction of its mineral resources and reserve at
the Pirquitas mine in Argentina.</P>
<P align=justify>&#147;Third quarter production was lower than a year ago, but now
that we have addressed the issues at our Pirquitas mine we can look forward to
strong, continuous production from the mine,&#148; said John Smith, President and CEO
of Silver Standard. &#147;While we have taken a prudent approach to Pirquitas&#146;
reserves, we have a great exploration team who are focused on finding more
ounces. We also will continue advancing our combined Pitarrilla oxide and
sulphide mining complex in Mexico.&#148;</P>
<P align=justify><B>Third Quarter 2011 Summary<BR></B>(All figures are in U.S.
dollars unless otherwise noted)</P>
<UL style="TEXT-ALIGN: justify">
  <LI>Reached 1 million man hours free of any loss time injuries at Pirquitas
  <LI>Net earnings of $21.8 million or $0.27 per share versus a loss last year
  <LI>Cash balance of $356 million or $639 million in cash and equity
  investments
  <LI>Completed Bowdens sale for $70 million, recording a $51 million gain
  <LI>Approved $25 million budget to advance the schedule and feasibility of the
  Pitarrilla complex </LI></UL>
<P align=justify>Subsequent to the quarter;</P>
<UL style="TEXT-ALIGN: justify">
  <LI>Rebuilt the ball mill gearbox with all new internal parts
  <LI>Resumed production at Pirquitas, November 5, 2011
  <LI>Commenced spot sales of silver concentrate
  <LI>Completed a Pirquitas mineral resources and reserve estimate resulting in
  a reduction of ounces in both categories </LI></UL>
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<P align=justify><B>Pirquitas Mine, Argentina</B></P>
<P align=justify><B>Table 1. Summary of Mine Operating Statistics</B></P>
<DIV>
<TABLE
style="BORDER-COLOR: black; FONT-SIZE: 8pt; BORDER-COLLAPSE: collapse; "
borderColor=#000000 cellSpacing=0 cellPadding=3 width="100%" border=1>

  <TR vAlign=top>
    <TD align=left bgColor=#ffffff>&nbsp; </TD>
    <TD align=center width="14%" bgColor=#ffffff>&nbsp; </TD>
    <TD align=center width="14%" bgColor=#eeeeee><B>Q3 2011</B> </TD>
    <TD align=center width="14%" bgColor=#ffffff><B>Q2 2011</B> </TD>
    <TD align=center width="14%" bgColor=#ffffff><B>Q1 2011</B> </TD>
    <TD align=center width="14%" bgColor=#ffffff><B>Q4 2010</B> </TD>
    <TD align=center width="14%" bgColor=#ffffff><B>Q3 2010</B> </TD>
  </TR>
  <TR vAlign=top>
    <TD align=left bgColor=#ffffff>Total Material Mined </TD>
    <TD align=center width="14%" bgColor=#ffffff>Kt </TD>
    <TD align=center width="14%" bgColor=#eeeeee><B>4,185</B> </TD>
    <TD align=center width="14%" bgColor=#ffffff><B>4,483</B> </TD>
    <TD align=center width="14%" bgColor=#ffffff><B>4,172</B> </TD>
    <TD align=center width="14%" bgColor=#ffffff>4,360 </TD>
    <TD align=center width="14%" bgColor=#ffffff>3,920 </TD>
  </TR>
  <TR vAlign=top>
    <TD align=left bgColor=#ffffff>Ore Processed </TD>
    <TD align=center width="14%" bgColor=#ffffff>Kt </TD>
    <TD align=center width="14%" bgColor=#eeeeee><B>245</B> </TD>
    <TD align=center width="14%" bgColor=#ffffff><B>295</B> </TD>
    <TD align=center width="14%" bgColor=#ffffff><B>308</B> </TD>
    <TD align=center width="14%" bgColor=#ffffff>313 </TD>
    <TD align=center width="14%" bgColor=#ffffff>320 </TD>
  </TR>
  <TR vAlign=top>
    <TD align=left bgColor=#ffffff>Silver Grade </TD>
    <TD align=center width="14%" bgColor=#ffffff>g/t </TD>
    <TD align=center width="14%" bgColor=#eeeeee><B>250</B> </TD>
    <TD align=center width="14%" bgColor=#ffffff><B>261</B> </TD>
    <TD align=center width="14%" bgColor=#ffffff><B>233</B> </TD>
    <TD align=center width="14%" bgColor=#ffffff>267 </TD>
    <TD align=center width="14%" bgColor=#ffffff>283 </TD>
  </TR>
  <TR vAlign=top>
    <TD align=left bgColor=#ffffff>Recoveries </TD>
    <TD align=center width="14%" bgColor=#ffffff>% </TD>
    <TD align=center width="14%" bgColor=#eeeeee><B>82.9</B> </TD>
    <TD align=center width="14%" bgColor=#ffffff><B>80.0</B> </TD>
    <TD align=center width="14%" bgColor=#ffffff><B>73.6</B> </TD>
    <TD align=center width="14%" bgColor=#ffffff>76.3 </TD>
    <TD align=center width="14%" bgColor=#ffffff>66.3 </TD>
  </TR>
  <TR vAlign=top>
    <TD align=left bgColor=#ffffff>Silver Produced </TD>
    <TD align=center width="14%" bgColor=#ffffff>&#145;000 oz. </TD>
    <TD align=center width="14%" bgColor=#eeeeee><B>1,631</B> </TD>
    <TD align=center width="14%" bgColor=#ffffff><B>1,976</B> </TD>
    <TD align=center width="14%" bgColor=#ffffff><B>1,697</B> </TD>
    <TD align=center width="14%" bgColor=#ffffff>2,067 </TD>
    <TD align=center width="14%" bgColor=#ffffff>1,933 </TD>
  </TR>
  <TR vAlign=top>
    <TD align=left bgColor=#ffffff>Direct Mining Cost<SUP>(1)</SUP> </TD>
    <TD align=center width="14%" bgColor=#ffffff>US$/oz. </TD>
    <TD align=center width="14%" bgColor=#eeeeee><B>16.20</B> </TD>
    <TD align=center width="14%" bgColor=#ffffff><B>11.57</B> </TD>
    <TD align=center width="14%" bgColor=#ffffff><B>12.26</B> </TD>
    <TD align=center width="14%" bgColor=#ffffff>9.55 </TD>
    <TD align=center width="14%" bgColor=#ffffff>10.43 </TD>
  </TR>
  <TR vAlign=top>
    <TD align=left bgColor=#ffffff>Total Cash Cost<SUP>(1)</SUP> </TD>
    <TD align=center width="14%" bgColor=#ffffff>US$/oz. </TD>
    <TD align=center width="14%" bgColor=#eeeeee><B>20.60</B> </TD>
    <TD align=center width="14%" bgColor=#ffffff><B>22.06</B> </TD>
    <TD align=center width="14%" bgColor=#ffffff><B>23.23</B> </TD>
    <TD align=center width="14%" bgColor=#ffffff>16.06 </TD>
    <TD align=center width="14%" bgColor=#ffffff>16.95</TD>
  </TR></TABLE></DIV>
<P align=justify><I>(1) The Company changed its presentation of cash costs per
ounce during the second quarter of 2011 in line with the newly endorsed
production cost guidance provided by The Silver Institute. Direct mining cost
per ounce and total cash cost per ounce are Non-GAAP measures discussed under
non-GAAP financial performance measures contained in the Management Discussion
and Analysis (&#147;MD&amp;A&#148;) for the quarter ended September 30, 2011 and year end
December 31, 2010.</I></P>
<P align=justify><B>Mine Production</B></P>
<P align=justify>The Pirquitas mine produced 1.6 million ounces of silver during
the third quarter of 2011 compared with 1.9 million ounces in the third quarter
of 2010. The lower production in the current quarter, as compared to the second
quarter of 2011, resulted from a 17-day ball mill shutdown in July 2011 and a
further 7-day shutdown in September 2011 to refurbish the gearbox. In the period
between these two shutdowns the plant was achieving design rates with daily
average production of 26,000 ounces and recovery rates of 83%. The gearbox has
been completely rebuilt with new parts and recommenced operating in
early-November. This rebuild put the gearbox in near-new condition. Shipping of
a replacement gearbox from Europe is also scheduled for November with arrival on
site in January 2012.</P>
<P align=justify>The Company revised its production guidance to produce between
7.3 and 7.6 million ounces of silver in 2011 as a result of the three
performance issues with the ball mill gearbox. Unanticipated plant downtime in
October and November after the revised guidance was issued on September 24,
2011, means achieving the low end of production guidance will be a successful
outcome in the Company&#146;s view. </P>
<P align=justify>During the third quarter 245,127 tonnes of ore were processed
at an average milling rate of 2,664 tonnes per day, compared to 295,004 tonnes
at an average of 3,241 tonnes per day achieved in the second quarter of 2011 and 320,174 tonnes at an average
milling rate of 3,480 tonnes per day in the third quarter of 2010. However, the
average milling rate in the third quarter of 2011 per operating day was in
excess of 3,600 tonnes per day.</P>
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<P align=justify>The ore milled during the third quarter of 2011 contained
average silver grade of 250 g/t and achieved average silver recovery of 83%,
compared to a silver grade of 283 g/t and recovery of 66% in the third quarter
of 2010. The strong silver recovery achieved during the third quarter of 2011
was due principally to consistent feed and continuous improvements to the
crushing and flotation circuits.</P>
<P align=justify>The mine produced a total of 3.3 million pounds of zinc in the
third quarter of 2011 compared to 2.8 million pounds in the second quarter of
2011. </P>
<P align=justify><B>Mine Operating Costs</B></P>
<P align=justify>Direct mining cost in the third quarter was $16.20 per ounce
silver compared to $10.43 per ounce in the third quarter of 2010. Operating
costs were higher in the third quarter as a result of additional repairs and
maintenance costs associated with the refurbishment of the ball mill gearbox,
and additional maintenance costs and external costs associated with the import
restrictions that affected the ability to obtain quality spare parts. Operations
were also impacted by import restrictions which were imposed by the Argentine
government on all industries.</P>
<P align=justify>Total cash cost, which includes by-product credits, treatment
and refining costs, royalties and production taxes, was $20.60 per ounce silver
compared to $16.95 per ounce in the third quarter of 2010. Treatment and
refining costs, as well as royalties and production taxes are all a function of
sales prices and are recorded for the actual ounces sold during the quarter. The
incremental per ounce impact of these costs in the third quarter of 2011
compared with the third quarter of 2010 is due to lower sales in the current
quarter. Higher prices achieved on sales in the current quarter partially offset
the volume impact compared to the third quarter of 2010.</P>
<P align=justify>Total production cost, which includes depreciation and
amortization, was $24.55 per ounce in the third quarter of 2011 compared to
$19.89 in the third quarter of 2010. The depreciation and amortization costs are
largely fixed, and are higher on a per ounce basis in the current quarter due to
lower production volumes.</P>
<P align=right>Page 4 of 15</P>
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<P align=justify><B>Pirquitas Mineral Resources and Reserve Estimates</B></P>
<P align=justify>As part of the Company&#146;s ongoing production-reserve
reconciliation and mine planning, and to delineate the deposit in greater detail
for the mine&#146;s mineral resources and reserve estimates, the Company undertook a
comprehensive drilling campaign between the fourth quarter of 2010 and
September, 2011. Assay results from these drill-holes have been utilized by the
Company&#146;s Qualified Persons (QPs) to complete advanced modeling of the deposit&#146;s
current mineral resources and reserve. Model validation included detailed
reconciliation with grade control and mine production data. The outcome of this
modeling work is shown below in Tables 2 and 3.</P>
<P style="MARGIN-LEFT: 5%" align=justify><B>Table 2. Pirquitas Mineral Resources
Estimate, as of September 30, 2011 <BR></B><I>(Total Measured and Indicated
Resources are </I><I><U>Inclusive </U></I><I>of Total Reserve) </I></P>
<DIV align=center>
<TABLE
style="BORDER-COLOR: black; FONT-SIZE: 8pt; BORDER-COLLAPSE: collapse; "
borderColor=#000000 cellSpacing=0 cellPadding=3 width="90%" border=1>

  <TR vAlign=top>
    <TD align=center valign="middle" ><B>Classification</B> </TD>
    <TD width="14%" align=center valign="middle"><B>Tonnage</B> <BR>
      <B>(Mt)</B> </TD>
    <TD width="14%" align=center valign="middle"><B>Silver</B> <BR>
      <B>Grade</B>
      <BR><B>(g/t)</B> </TD>
    <TD width="14%" align=center valign="middle"><B>Zinc Grade</B> <BR>
      <B>(%)</B> </TD>
    <TD width="14%" align=center valign="middle"><B>Contained</B> <BR>
      <B>Silver</B>
      <BR><B>(Moz)</B> </TD>
    <TD width="14%" align=center valign="middle"><B>Contained</B> <BR>
      <B>Zinc</B>
    <BR><B>(Mlbs)</B> </TD></TR>
  <TR vAlign=top>
    <TD align=left >&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Measured </TD>
    <TD align=center width="14%">13.5 </TD>
    <TD align=center width="14%">156.2 </TD>
    <TD align=center width="14%">0.49 </TD>
    <TD align=center width="14%">68.0 </TD>
    <TD align=center width="14%">144.9 </TD></TR>
  <TR vAlign=top>
    <TD align=left >&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Indicated </TD>
    <TD align=center width="14%">16.3 </TD>
    <TD align=center width="14%">142.3 </TD>
    <TD align=center width="14%">0.91 </TD>
    <TD align=center width="14%">74.6 </TD>
    <TD align=center width="14%">328.4 </TD></TR>
  <TR vAlign=top>
    <TD align=left >&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Stockpiles (Indicated) </TD>
    <TD align=center width="14%">3.0 </TD>
    <TD align=center width="14%">78.5 </TD>
    <TD align=center width="14%">1.50 </TD>
    <TD align=center width="14%">7.5 </TD>
    <TD align=center width="14%">98.1 </TD></TR>
  <TR vAlign=top>
    <TD align=left ><B>Total Measured and</B> <B>Indicated</B>
</TD>
    <TD align=center width="14%"><B>32.8</B> </TD>
    <TD align=center width="14%"><B>142.2</B> </TD>
    <TD align=center width="14%"><B>0.79</B> </TD>
    <TD align=center width="14%"><B>150.1</B> </TD>
    <TD align=center width="14%"><B>571.4</B> </TD></TR>
  <TR vAlign=top>
    <TD align=left >&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Cortaderas Breccia Inferred </TD>
    <TD align=center width="14%">2.0 </TD>
    <TD align=center width="14%">152.0 </TD>
    <TD align=center width="14%">5.4 </TD>
    <TD align=center width="14%">9.9 </TD>
    <TD align=center width="14%">239.3 </TD></TR>
  <TR vAlign=top>
    <TD align=left >&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Cortaderas Valley Inferred </TD>
    <TD align=center width="14%">5.0 </TD>
    <TD align=center width="14%">78.6 </TD>
    <TD align=center width="14%">1.1 </TD>
    <TD align=center width="14%">12.6 </TD>
    <TD align=center width="14%">120.8 </TD></TR>
  <TR vAlign=top>
    <TD align=left ><B>Total Inferred</B> </TD>
    <TD align=center width="14%"><B>7.0</B> </TD>
    <TD align=center width="14%"><B>98.4</B> </TD>
    <TD align=center width="14%"><B>2.3</B> </TD>
    <TD align=center width="14%"><B>22.5</B> </TD>
    <TD align=center width="14%"><B>360.1</B> </TD></TR></TABLE></DIV>
<P style="MARGIN-LEFT: 5%" align=justify>Notes to Table 2:</P>
<TABLE
style="BORDER-COLOR: black; FONT-SIZE: 10pt; BORDER-COLLAPSE: collapse; "
cellSpacing=0 cellPadding=0 width="100%" border=0 BCLLIST>

  <TR>
    <TD width="5%"  >&nbsp;</TD>
    <TD vAlign=top width="5%">1. </TD>
    <TD>
      <P align=justify>Dr. Warwick Board, Ph.D. (Geology), P.Geo., is the
      Qualified Person (QP) for the reported mineral resource
estimate.</P></TD></TR>
  <TR>
    <TD width="5%" >&nbsp;</TD>
    <TD vAlign=top width="5%">2. </TD>
    <TD>
      <P align=justify>All mineral resources have been classified in accordance
      with current CIM definition standards.</P></TD></TR>
  <TR>
    <TD width="5%" >&nbsp;</TD>
    <TD vAlign=top width="5%">3. </TD>
    <TD>
      <P align=justify>The reported measured and indicated resources represent
      resources estimated to exist below the as-mined surface as of September
      30, 2011.</P></TD></TR>
  <TR>
    <TD width="5%" >&nbsp;</TD>
    <TD vAlign=top width="5%">4. </TD>
    <TD>
      <P align=justify>The multiple-indicator kriging (MIK) modeling methodology
      was employed for estimates of the Measured and Indicated Resources,
      whereas ordinary kriging was used to estimate the Cortaderas Breccia
      Resource and single-indicator kriging was utilized for the Cortaderas
      Valley Inferred Resource.</P></TD></TR>
  <TR>
    <TD width="5%" >&nbsp;</TD>
    <TD vAlign=top width="5%">5. </TD>
    <TD>
      <P align=justify>A silver cut-off grade of 50 g/t Ag was used for all of
      the reported resource estimates.</P></TD></TR>
  <TR>
    <TD width="5%" >&nbsp;</TD>
    <TD vAlign=top width="5%">6. </TD>
    <TD>
      <P align=justify>A capping grade of 1,600 g/t Ag was utilized for the
      Cortaderas Breccia mineral resource estimate, while capping grades of 235
      g/t Ag and 10% Zn were used for the Cortaderas Valley mineral resource
      estimate. Due to the nature of the MIK modeling technique, no grade
      capping was required for the Measured and Indicated resource estimates for
  the mine.</P></TD></TR></TABLE>
<P align=right>Page 5 of 15</P>
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<TABLE
style="BORDER-COLOR: black; FONT-SIZE: 10pt; BORDER-COLLAPSE: collapse; "
cellSpacing=0 cellPadding=0 width="100%" border=0 BCLLIST>
  <TR>
    <TD width="5%" >&nbsp;</TD>
    <TD vAlign=top width="5%">7. </TD>
    <TD>
      <P align=justify>Detailed bulk density modeling, taking into account voids
      created by historical underground mining and differential rock densities,
      resulted in an average bulk density value of 2.60 tonnes per cubic meter
      for the resource estimates.</P></TD></TR>
  <TR>
    <TD width="5%" >&nbsp;</TD>
    <TD vAlign=top width="5%">8. </TD>
    <TD>
      <P align=justify>Sums may not equal reported totals due to
  rounding.</P></TD></TR></TABLE>
<P align=justify>Dr. Warwick Board, Ph.D. (Geology), P. Geo., the QP who
completed the mineral resource estimates reported here has been employed by the
Company as Senior Resource Geologist since August 2009, and before joining the
Company was Principal Consultant with Snowden Mining Industry Consultants. The
NI 43-101 Technical Report supporting these resource estimates will be filed on
SEDAR within 45 days from the release date of this document.</P>
<P style="MARGIN-LEFT: 5%" align=justify><B>Table 3. Pirquitas Mineral Reserve
Estimate, as of September 30, 2011</B></P>
<DIV align=center>
<TABLE
style="BORDER-COLOR: black; FONT-SIZE: 8pt; BORDER-COLLAPSE: collapse; "
borderColor=#000000 cellSpacing=0 cellPadding=3 width="90%" border=1>

  <TR vAlign=top>
    <TD align=left valign="middle"><B>Classification</B> </TD>
    <TD align=center valign="middle"><B>Tonnage</B> <BR>
        <B>(Mt)</B> </TD>
    <TD align=center valign="middle"><B>Silver</B> <BR>
        <B>Grade</B> <br>
        <B>(g/t)</B> </TD>
    <TD align=center valign="middle"><B>Zinc</B> <BR>
        <B>Grade</B><br>
        <B>(%)</B> </TD>
    <TD align=center valign="middle"><B>Contained</B> <BR>
        <B>Silver</B> <br>
        <B>(Moz)</B> </TD>
    <TD align=center valign="middle"><B>Contained</B> <BR>
        <B>Zinc</B><br>
        <B>(Mlbs)</B> </TD>
  </TR>
  <TR vAlign=top>
    <TD align=left>Proven </TD>
    <TD align=center width="16%">10.4 </TD>
    <TD align=center width="16%">181.2 </TD>
    <TD align=center width="16%">0.52 </TD>
    <TD align=center width="16%">60.4 </TD>
    <TD align=center width="16%">117.9 </TD></TR>
  <TR vAlign=top>
    <TD align=left>Probable </TD>
    <TD align=center width="16%">5.1 </TD>
    <TD align=center width="16%">168.9 </TD>
    <TD align=center width="16%">1.04 </TD>
    <TD align=center width="16%">27.6 </TD>
    <TD align=center width="16%">117.1 </TD></TR>
  <TR vAlign=top>
    <TD align=left>Reserve Stockpiles </TD>
    <TD align=center width="16%">1.2 </TD>
    <TD align=center width="16%">129.2 </TD>
    <TD align=center width="16%">1.03 </TD>
    <TD align=center width="16%">5.0 </TD>
    <TD align=center width="16%">27.6 </TD></TR>
  <TR vAlign=top>
    <TD align=left><B>Total Reserve</B> </TD>
    <TD align=center width="16%"><B>16.7</B> </TD>
    <TD align=center width="16%"><B>173.7</B> </TD>
    <TD align=center width="16%"><B>0.71</B> </TD>
    <TD align=center width="16%">&nbsp; &nbsp; &nbsp;<B>93.1</B> </TD>
    <TD align=center width="16%"><B>262.6</B> </TD></TR></TABLE>
</DIV>
<P style="MARGIN-LEFT: 5%" align=justify>Notes to Table 3:</P>
<TABLE
style="BORDER-COLOR: black; FONT-SIZE: 10pt; BORDER-COLLAPSE: collapse; "
cellSpacing=0 cellPadding=0 width="100%" border=0 BCLLIST>

  <TR>
    <TD width="5%"  >&nbsp;</TD>
    <TD vAlign=top width="5%">1. </TD>
    <TD>
      <P align=justify>R. Bruce Kennedy, BS (Mining Engineering), P. E. is the
      Qualified Person for the reported mineral reserve estimate.</P></TD></TR>
  <TR>
    <TD width="5%" >&nbsp;</TD>
    <TD vAlign=top width="5%">2. </TD>
    <TD>
      <P align=justify>Trevor Yeomans, B.Sc. (Mineral Processing), P. Eng., is
      the Qualified Person who provided metallurgical parameters that were
      incorporated in the reserve estimates.</P></TD></TR>
  <TR>
    <TD width="5%" >&nbsp;</TD>
    <TD vAlign=top width="5%">3. </TD>
    <TD>
      <P align=justify>All mineral reserves have been classified in accordance
      with current CIM definition standards.</P></TD></TR>
  <TR>
    <TD width="5%" >&nbsp;</TD>
    <TD vAlign=top width="5%">4. </TD>
    <TD>
      <P align=justify>Reported mineral reserves were estimated using the
      Measured and Indicated resources shown in Table 2, excluding 1.2 Mt
      Indicated resource estimated for the Oploca Vein to contain approximately
      8.2 Moz. silver. The estimated Oploca mineral resource lies just beyond
      the southern limits of the current pit design.</P></TD></TR>
  <TR>
    <TD width="5%" >&nbsp;</TD>
    <TD vAlign=top width="5%">5. </TD>
    <TD>
      <P align=justify>Metal prices used in reserve estimates are $25.00 per
      ounce of silver and $2,403 per tonne of zinc.</P></TD></TR>
  <TR>
    <TD width="5%" >&nbsp;</TD>
    <TD vAlign=top width="5%">6. </TD>
    <TD>
      <P align=justify>Mining costs are as per 2011 actual costs, with estimated
      productivity changes incorporated.</P></TD></TR>
  <TR>
    <TD width="5%" >&nbsp;</TD>
    <TD vAlign=top width="5%">7. </TD>
    <TD>
      <P align=justify>Mill and general administrative costs were estimated on
      the basis of 2011 actual costs, incorporating projections to full and
      stable production.</P></TD></TR>
  <TR>
    <TD width="5%" >&nbsp;</TD>
    <TD vAlign=top width="5%">8. </TD>
    <TD>
      <P align=justify>The mineral reserve is quoted within a pit design that
      utilizes geotechnical parameters proven from actual performance. The
      design was created using a geometry guideline from a Lerche-Grossman
      algorithm that maximizes the reserve cash flow.</P></TD></TR>
  <TR>
    <TD width="5%" >&nbsp;</TD>
    <TD vAlign=top width="5%">9. </TD>
    <TD>
      <P align=justify>Average open-pit strip ratio of 4.89:1 total:ore was
      used.</P></TD></TR>
  <TR>
    <TD width="5%" >&nbsp;</TD>
    <TD vAlign=top width="5%">10. </TD>
    <TD>
      <P align=justify>The cut-off grade was developed on a net smelter return
      (NSR) basis that uses a total operating cost of $35.52 per tonne of
      ore.</P></TD></TR>
  <TR>
    <TD width="5%" >&nbsp;</TD>
    <TD vAlign=top width="5%">11. </TD>
    <TD>
      <P align=justify>Metallurgical recovery formulas were applied for silver
      and zinc concentrates that reflect increasing recovery with increasing
      head grade. Average metallurgical recovery for silver is 79.8 percent, and
      for zinc 42.9 percent.</P></TD></TR></TABLE>
<P align=right>Page 6 of 15</P>
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<P align=justify>R. Bruce Kennedy, BS (Mining Engineering), P.E. , the QP who
has approved the estimated mineral reserve reported here, is the General Manager
of the Pirquitas Mine, having joined the Company in March 2011. Mr. Kennedy has
extensive mine management experience and prior to joining the Company was a
senior mining consultant with SRK Consulting. A NI 43-101 Technical Report
supporting the tabulated reserve estimates will be filed on SEDAR within 45 days
from the date of this news release.</P>
<P align=justify>Significant factors affecting the new mineral resource and
reserve estimates include the following:</P>
<UL style="TEXT-ALIGN: justify">
  <LI>the determination that silver mineralization which exists between
  high-grade veins in the upper parts of the deposit becomes less prevalent and
  of uneconomic grade in the lower parts of the deposit;
  <LI>increases in operating cost per tonne of ore from $22.00 to $35.52, which
  include additional waste mining costs, general and country-specific inflation
  over three years and some incremental tailing storage costs.
  <LI>depletion of 18.6 million ounces of silver since the start of production
  in 2009 until September 30, 2011; understanding of processing and cost of
  production following mining through the pit to the sulphide ore which
  commenced in Q3 2010; and
  <LI>the decision to exclude at this time cost credits from the production of
  tin until an economically viable processing method has been designed and
  tested. </LI></UL>
<P align=justify>The 2008 Mineral Resources estimate and the 2011 Mineral Resources estimate have been reported on different bases. The former was reported on a silver-equivalent basis, including the economic benefit of tin. This mineral reserve estimate totaled 195.1 million ounces of silver and 550 million pounds of zinc contained as stated in a NI 43-101 Technical Report, dated September 29, 2008 and filed on SEDAR. The 2011 Mineral Resources estimate uses a 50 g/t silver only cut-off. The 2010 and 2011 drilling has enabled improvement in the Company&rsquo;s interpretation of geological controls on the mineralization and the 2011 mineral resources model has been validated through reconciliation of grade control and mine production data.</P>
<P align=justify>The Company is focused on opportunities for cost reduction,
pursuing the option of dry-stacking of tailings and is investigating processes
for tin recovery which together are expected to bring resources back into
reserves. Extensive &#145;brownfield&#146; exploration is also being conducted on the
property with encouraging results to date. In 2011, the Company&#146;s exploration
team identified two significant silver and zinc-bearing breccia bodies, one that
is currently being mined from the open-pit and another that is located
approximately 200 meters north of the pit in a resource area referred to as
Cortaderas (see Table 2).</P>
<P align=justify>The Company&#146;s exploration efforts will continue in the pursuit
of delineating new mineral resources and reserve on the Pirquitas property.
Metallurgical engineering work will also continue on the development and
implementation of a process to recover the significant tin mineralization found
in the Pirquitas ore.</P>
<P align=right>Page 7 of 15</P>
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<P align=justify>Notwithstanding, the Company estimates that the noted changes
to the mine&#146;s mineral resources and reserve estimate, from 2012 onwards
Pirquitas will continue operating for 6.5 years as an 8-10 million ounces per
annum silver producer, with a further 2.5 years of production of approximately 3
million ounces of silver per annum coming from stockpiles. This mine life
estimate is based on $25.00 per ounce silver and $2,403 per tonne of zinc and
could be extended assuming the continuation of current market prices of
approximately $35 per ounce silver.</P>
<P align=justify><B>Exploration Drilling Program</B></P>
<P align=justify>In addition to the comprehensive in-fill drilling program that
was completed in 2011 in the area of the San Miguel open-pit, the Company
diamond drilled 1,837 meters at an exploration target located just 200 meters
north of the pit in the Cortaderas Valley. The main target at Cortaderas
consists of a steeply plunging breccia body where the breccia matrix is composed
of silver-bearing iron and zinc sulphide mineralization. To date, nine
relatively closely spaced drill-holes have intersected the mineralized breccia
body. The results from this drilling are encouraging, with intercepts from a
select number of the boreholes being highlighted below in Table 4. Based on the
drilling completed to date, Dr. Warwick Board, the Company&#146;s Senior Resource
Geologist and QP, has estimated an Inferred resource for the breccia of 2.0
million tonnes averaging 152 g/t silver and 5.4% zinc, for approximately 9.9
million ounces of contained silver, at a 50 g/t silver cut-off grade.
Sulphide-rich, vein-hosted mineralization has been intersected by drill-holes in
the vicinity of the above mentioned breccia body and is estimated to contain an
additional 12.6 million ounces of silver in the Inferred resource category
(refer to Table 2 for details).</P>
<P style="MARGIN-LEFT: 5%" align=justify>Table 4. Select Drill-hole
Intersections of the Cortaderas Breccia</P>
<DIV align=center>
<TABLE
style="BORDER-COLOR: black; FONT-SIZE: 8pt; BORDER-COLLAPSE: collapse; "
borderColor=#000000 cellSpacing=0 cellPadding=3 width="90%" border=1>

  <TR vAlign=top>
    <TD align=left>Drill-Hole </TD>
    <TD align=center width="14%">From (m) </TD>
    <TD align=center width="14%">To (m) </TD>
    <TD align=center width="14%">Length&#178; (m) </TD>
    <TD align=center width="14%">Ag (g/t) </TD>
    <TD align=center width="14%">Sn (%) </TD>
    <TD align=center width="14%">Zn (%) </TD>
  </TR>
  <TR vAlign=top>
    <TD align=left>&nbsp;</TD>
    <TD align=right>&nbsp;</TD>
    <TD align=right>&nbsp;</TD>
    <TD align=right>&nbsp;</TD>
    <TD align=right>&nbsp;</TD>
    <TD align=right>&nbsp;</TD>
    <TD align=right>&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left>DDH-099 &#179; </TD>
    <TD align=right width="14%">145.0 </TD>
    <TD align=right width="14%">250.0 </TD>
    <TD align=right width="14%">105.0 </TD>
    <TD align=right width="14%">194.3 </TD>
    <TD align=right width="14%">0.17 </TD>
    <TD align=right width="14%">6.17 </TD></TR>
  <TR vAlign=top>
    <TD align=right>including </TD>
    <TD align=right width="14%">177.0 </TD>
    <TD align=right width="14%">219.0 </TD>
    <TD align=right width="14%">42.0 </TD>
    <TD align=right width="14%">371.4 </TD>
    <TD align=right width="14%">0.35 </TD>
    <TD align=right width="14%">9.91 </TD></TR>
  <TR vAlign=top>
    <TD align=left>DDH-167 &#185; </TD>
    <TD align=right width="14%">80.0 </TD>
    <TD align=right width="14%">312.0 </TD>
    <TD align=right width="14%">232.0 </TD>
    <TD align=right width="14%">183.2 </TD>
    <TD align=right width="14%">0.13 </TD>
    <TD align=right width="14%">5.40 </TD></TR>
  <TR vAlign=top>
    <TD align=right>including </TD>
    <TD align=right width="14%">117.0 </TD>
    <TD align=right width="14%">151.3 </TD>
    <TD align=right width="14%">34.3 </TD>
    <TD align=right width="14%">631.5 </TD>
    <TD align=right width="14%">0.17 </TD>
    <TD align=right width="14%">12.08 </TD></TR>
  <TR vAlign=top>
    <TD align=right>and including </TD>
    <TD align=right width="14%">198.0 </TD>
    <TD align=right width="14%">234.0 </TD>
    <TD align=right width="14%">36.0 </TD>
    <TD align=right width="14%">386.1 </TD>
    <TD align=right width="14%">0.30 </TD>
    <TD align=right width="14%">9.02 </TD></TR>
  <TR vAlign=top>
    <TD align=left>DDH-214 &#185; </TD>
    <TD align=right width="14%">156.0 </TD>
    <TD align=right width="14%">374.0 </TD>
    <TD align=right width="14%">218.0 </TD>
    <TD align=right width="14%">477.3 </TD>
    <TD align=right width="14%">0.38 </TD>
    <TD align=right width="14%">7.97 </TD></TR>
  <TR vAlign=top>
    <TD align=right>including </TD>
    <TD align=right width="14%">218.0 </TD>
    <TD align=right width="14%">276.0 </TD>
    <TD align=right width="14%">58.0 </TD>
    <TD align=right width="14%">1,007.7 </TD>
    <TD align=right width="14%">0.39 </TD>
    <TD align=right width="14%">12.83 </TD></TR>
  <TR vAlign=top>
    <TD align=right>and including </TD>
    <TD align=right width="14%">282.0 </TD>
    <TD align=right width="14%">328.0 </TD>
    <TD align=right width="14%">46.0 </TD>
    <TD align=right width="14%">928.3 </TD>
    <TD align=right width="14%">1.03 </TD>
    <TD align=right width="14%">16.15 </TD></TR>
  <TR vAlign=top>
    <TD align=left>DDH-216 &#185; </TD>
    <TD align=right width="14%">257.0 </TD>
    <TD align=right width="14%">421.0 </TD>
    <TD align=right width="14%">164.0 </TD>
    <TD align=right width="14%">59.6 </TD>
    <TD align=right width="14%">0.11 </TD>
    <TD align=right width="14%">3.82 </TD></TR>
  <TR vAlign=top>
    <TD align=right>including </TD>
    <TD align=right width="14%">337.7 </TD>
    <TD align=right width="14%">385.4 </TD>
    <TD align=right width="14%">47.7 </TD>
    <TD align=right width="14%">166.7 </TD>
    <TD align=right width="14%">0.18 </TD>
    <TD align=right width="14%">9.07 </TD></TR>
  <TR vAlign=top>
    <TD align=left>DDH-217 &#185; </TD>
    <TD align=right width="14%">91.0 </TD>
    <TD align=right width="14%">290.0 </TD>
    <TD align=right width="14%">199.0 </TD>
    <TD align=right width="14%">84.2 </TD>
    <TD align=right width="14%">0.06 </TD>
    <TD align=right width="14%">3.19 </TD></TR>
  <TR vAlign=top>
    <TD align=right>including </TD>
    <TD align=right width="14%">120.4 </TD>
    <TD align=right width="14%">128.0 </TD>
    <TD align=right width="14%">7.6 </TD>
    <TD align=right width="14%">552.8 </TD>
    <TD align=right width="14%">0.22 </TD>
    <TD align=right width="14%">4.31 </TD></TR></TABLE>
</DIV>
<P style="MARGIN-LEFT: 5%" align=justify>Notes to Table 4:</P>
<TABLE
style="BORDER-COLOR: black; FONT-SIZE: 10pt; BORDER-COLLAPSE: collapse; "
cellSpacing=0 cellPadding=0 width="100%" border=0 BCLLIST>

  <TR>
    <TD width="5%"  >&nbsp;</TD>
    <TD vAlign=top width="5%">1. </TD>
    <TD>
      <P align=justify>Holes are oriented at shallow angles to inferred plunge
      orientation of mineralized breccia body.</P></TD></TR>
  <TR>
    <TD width="5%" >&nbsp;</TD>
    <TD vAlign=top width="5%">2. </TD>
    <TD>
      <P align=justify>Intercepts are not true thicknesses. These are to be
      determined by follow-up drilling.</P></TD></TR></TABLE>
<P align=right>Page 8 of 15</P>
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<TABLE
style="BORDER-COLOR: black; FONT-SIZE: 10pt; BORDER-COLLAPSE: collapse; "
cellSpacing=0 cellPadding=0 width="100%" border=0 BCLLIST>

  <TR>
    <TD width="5%"  >&nbsp;</TD>
    <TD vAlign=top width="5%">3. </TD>
    <TD>
      <P align=justify>Hole DDH-099 intersected the breccia body at a high angle
      and ended in mineralization.</P></TD></TR>
  <TR>
    <TD width="5%" >&nbsp;</TD>
    <TD vAlign=top width="5%">4. </TD>
    <TD>
      <P align=justify>All samples were submitted to ALS Chemex for preparation
      and analysis at its facilities in Mendoza, Argentina. Samples were
      analyzed using a 4-acid digestion and ICP-AES finish for a suite of 35
      elements. Additional tin analyses were performed using the XRF analytical
      technique. Samples containing greater than 200 ppm Ag and/or greater than
      100,000 ppm Zn were re-analyzed using a 4- acid digestion with AAS finish
      for both elements.</P></TD></TR>
  <TR>
    <TD width="5%" >&nbsp;</TD>
    <TD vAlign=top width="5%">5. </TD>
    <TD>
      <P align=justify>Silver Standard&#146;s QA/QC protocol consists of the regular
      insertion of control standard and blank samples together with the analysis
      of field duplicate samples. Approximately 14% of all samples analyzed
      represent QA/QC samples.</P></TD></TR>
  <TR>
    <TD width="5%" >&nbsp;</TD>
    <TD vAlign=top width="5%">6. </TD>
    <TD>
      <P align=justify>Dr. Warwick Board, Ph.D. (Geology), P.Geo., is the Senior
      Resource Geologist at Silver Standard Resources Inc. and is the QP who has
      verified the data presented in Table 4.</P></TD></TR></TABLE>
<P align=justify><B>Financial Results</B></P>
<P align=justify>Our financial results are now reported under International
Financial Reporting Standards (IFRS) and the 2010 comparative results have been
restated to IFRS in the current period financial statements. Refer to Note 2 in
the unaudited September 30, 2011 and March 31, 2011 financial statements for a
detailed description of our accounting policies under IFRS and for disclosures
and reconciliation of the impact of IFRS on previously reported results. See
Notes 17 and 25 in the Financial Statements for the nine months ended September
30, 2011 and year ended December 31, 2010, respectively.</P>
<P align=justify><B>Mine Operations</B></P>
<P align=justify>During the third quarter 2011 the Company recorded total
revenues from the Pirquitas mine of $26.2 million from the sale of 0.7 million
ounces of silver at a realized price of $39.88 per ounce, and 3.9 million pounds
of zinc at a realized price of $1.01 per pound excluding the impact of quarter
end price adjustment. This is compared with the third quarter of 2010 which
recorded revenues of $41.6 million from the sale of 2.3 million ounces of silver
at a realized price of $19.43, and no zinc sales. The reduction in sales
recognized is reflective of the volume of silver ounces sold, partially offset
by the significant increase in the price of silver. Zinc pounds sold in the
third quarter of 2011 contributed $2.8 million to total revenues.</P>
<P align=justify>Since the mine&#146;s initial start-up silver concentrates have been
sold pursuant to a sales contract to a single customer. The contract was
terminated during the third quarter 2011 and as a result volumes of silver
concentrate sold were significantly lower than prior quarters. Zinc concentrate
sales were unaffected. Subsequent to the quarter individual spot sales have been
completed, and the Company is continuing negotiations to establish long-term
contracts with various counterparties.</P>
<P align=justify>Cost of sales for the third quarter 2011 was $14.7 million
compared to $34.1 million in the third quarter of 2010. This resulted in income
from mine operations of $11.5 million in the third quarter of 2011 compared to
$7.4 million in the third quarter of 2010. The reduction in cost of sales is
primarily due to the volume of product sold. Margins improved significantly,
primarily as a result of higher silver prices. </P>
<P align=justify>On October 26, 2011 the Argentina government announced a decree
that requires all funds from export sales to be repatriated to Argentina and
converted into Argentina Pesos within the Sole Foreign Exchange Market in
Argentina, and each transfer is subject to a 0.6% transfer tax. </P>
<P align=right>Page 9 of 15</P>
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<P align=justify>Although the fiscal stability agreement also includes stability
over foreign exchange controls the government has removed such benefits. The
Company will comply with all laws and regulations, and is in the process of
determining what impact this has on the business.</P>
<P align=justify><B>Net Earnings</B></P>
<P align=justify>Net income for the three months ended September 30, 2011 were
$21.8 million ($0.27 per share) compared to a net loss of $10.4 million ($0.13
per share) in the third quarter of 2010. </P>
<P align=justify><B>Liquidity</B></P>
<P align=justify>At September 30, 2011, the Company held $355.9 million in cash
and cash equivalents and $36.4 million in marketable securities compared to
$232.3 million and $33.5 million respectively at December 31, 2010. The increase
in cash for the nine months ended September 30, 2011 was the result of cash
inflows from operations of $12.9 million, $19.2 million generated from financing
activities, and $91.5 million from investing activities.</P>
<TABLE width="100%" border=0 cellPadding=2
cellSpacing=0
style="BORDER-COLOR: black; FONT-SIZE: 10pt; BORDER-COLLAPSE: collapse; ">
  <TR vAlign=bottom>
    <TD
    align=center
    style="BORDER-LEFT: #000000 1px solid; BORDER-top: #000000 1px solid"><u></u></TD>
    <TD
    align=center style="BORDER-top: #000000 1px solid"><B><U>Selected Financial Data</U></B>&nbsp; </TD>
    <TD
    align=center
    style="BORDER-right: #000000 1px solid; BORDER-top: #000000 1px solid"><u></u></TD>
  </TR>
  <TR vAlign=bottom>
    <TD
    align=center style="BORDER-left: #000000 1px solid"><u></u></TD>
    <TD
    align=center>(US$000&#146;s, except per share amounts)&nbsp; </TD>
    <TD
    align=center style="BORDER-right: #000000 1px solid"><u></u></TD>
  </TR>
  <TR>
    <TD style="BORDER-left: #000000 1px solid"><u></u></TD>
    <TD>&nbsp;</TD>
    <TD style="BORDER-right: #000000 1px solid"><u></u></TD>
  </TR>
  <TR vAlign=top>
    <TD
    align=left bordercolor="#000000" style="BORDER-left: #000000 1px solid"><u></u></TD>
    <TD
    align=left bordercolor="#000000"><P align=justify><I>The Company is now reporting under International
      Financial Reporting Standards (&#147;IFRS&#148;) and the 2010 comparative</I> <I>results have been restated to IFRS in the current period financial
        statements. Refer to Note 2 in the unaudited September 30,</I> <I>2011
          financial statements for a detailed description of our accounting policies
          under IFRS and Note 17 for disclosures and</I> <I>reconciliation of the
            impact of IFRS on previously reported results.</I> </P></TD>
    <TD
    align=left bordercolor="#000000" style="BORDER-right: #000000 1px solid"><u></u></TD>
  </TR>
  <TR>
    <TD
    align=left style="BORDER-left: #000000 1px solid"><u></u></TD>
    <TD
    align=left><P align=justify>&nbsp;</P></TD>
    <TD
    align=left style="BORDER-right: #000000 1px solid"><u></u></TD>
  </TR>
  <TR vAlign=top>
    <TD
    align=left
    style="BORDER-BOTTOM: #000000 1px solid; BORDER-left: #000000 1px solid"><u></u></TD>
    <TD
    align=left style="BORDER-BOTTOM: #000000 1px solid"><P align=justify><I>This summary of selected financial data should be read
      in conjunction with the MD&amp;A of the audited consolidated operating</I> <I>results and financial condition of the Company for the three and nine
        months ended September 30, 2011.</I> </P></TD>
    <TD
    align=left
    style="BORDER-BOTTOM: #000000 1px solid; BORDER-right: #000000 1px solid"><u></u></TD>
  </TR>
</TABLE>
<TABLE
style="BORDER-COLOR: black; FONT-SIZE: 10pt; BORDER-COLLAPSE: collapse; "
cellSpacing=0 cellPadding=0 width="100%" border=0>
  <TR vAlign=top>
    <TD style="BORDER-RIGHT: #000000 1px solid; BORDER-LEFT: #000000 1px solid"
    align=left>&nbsp; </TD>
    <TD width="20%" align=center nowrap><B>Three Months</B> </TD>
    <TD width="20%"
    align=center nowrap style="BORDER-RIGHT: #000000 1px solid; BORDER-LEFT: #000000 1px solid"><B>Three Months</B> </TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-RIGHT: #000000 1px solid; BORDER-LEFT: #000000 1px solid"
    align=left>&nbsp; </TD>
    <TD width="15%" align=center nowrap><B>Ended September</B> </TD>
    <TD width="15%"
    align=center nowrap style="BORDER-RIGHT: #000000 1px solid; BORDER-LEFT: #000000 1px solid"><B>Ended September</B> </TD></TR>
  <TR vAlign=top>
    <TD
    style="BORDER-RIGHT: #000000 1px solid; BORDER-LEFT: #000000 1px solid; BORDER-BOTTOM: #000000 1px solid"
    align=left>&nbsp; </TD>
    <TD width="15%" align=left nowrap style="BORDER-BOTTOM: #000000 1px solid">&nbsp;
      &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp;<B>30, 2011</B> </TD>
    <TD width="15%"
    align=left nowrap
    style="BORDER-RIGHT: #000000 1px solid; BORDER-LEFT: #000000 1px solid; BORDER-BOTTOM: #000000 1px solid">&nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp;
      &nbsp;<B>30, 2010</B> </TD></TR>
  <TR vAlign=top>
    <TD
    style="BORDER-RIGHT: #000000 1px solid; BORDER-LEFT: #000000 1px solid; BORDER-BOTTOM: #000000 1px solid"
    align=left bgColor=#ffffff>Earnings from mine operations </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=center width="15%"
    bgColor=#eeeeee>11,492 </TD>
    <TD
    style="BORDER-RIGHT: #000000 1px solid; BORDER-LEFT: #000000 1px solid; BORDER-BOTTOM: #000000 1px solid"
    align=center width="15%" bgColor=#ffffff>7,426 </TD></TR>
  <TR vAlign=top>
    <TD
    style="BORDER-RIGHT: #000000 1px solid; BORDER-LEFT: #000000 1px solid; BORDER-BOTTOM: #000000 1px solid"
    align=left bgColor=#ffffff>Earnings from operations </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=center width="15%"
    bgColor=#eeeeee>3,066 </TD>
    <TD
    style="BORDER-RIGHT: #000000 1px solid; BORDER-LEFT: #000000 1px solid; BORDER-BOTTOM: #000000 1px solid"
    align=center width="15%" bgColor=#ffffff>1,066 </TD></TR>
  <TR vAlign=top>
    <TD
    style="BORDER-RIGHT: #000000 1px solid; BORDER-LEFT: #000000 1px solid; BORDER-BOTTOM: #000000 1px solid"
    align=left bgColor=#ffffff>Net earnings (loss) for the period </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=center width="15%"
    bgColor=#eeeeee>21,836 </TD>
    <TD
    style="BORDER-RIGHT: #000000 1px solid; BORDER-LEFT: #000000 1px solid; BORDER-BOTTOM: #000000 1px solid"
    align=center width="15%" bgColor=#ffffff>(10,407) </TD></TR>
  <TR vAlign=top>
    <TD
    style="BORDER-RIGHT: #000000 1px solid; BORDER-LEFT: #000000 1px solid; BORDER-BOTTOM: #000000 1px solid"
    align=left bgColor=#ffffff>Basic earnings (loss) per share </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=center width="15%"
    bgColor=#eeeeee>0.27 </TD>
    <TD
    style="BORDER-RIGHT: #000000 1px solid; BORDER-LEFT: #000000 1px solid; BORDER-BOTTOM: #000000 1px solid"
    align=center width="15%" bgColor=#ffffff>(0.13) </TD></TR>
  <TR vAlign=top>
    <TD
    style="BORDER-RIGHT: #000000 1px solid; BORDER-LEFT: #000000 1px solid; BORDER-BOTTOM: #000000 1px solid"
    align=left bgColor=#ffffff>Cash generated (used) in operating activities    </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=center width="15%"
    bgColor=#eeeeee>(15,835) </TD>
    <TD
    style="BORDER-RIGHT: #000000 1px solid; BORDER-LEFT: #000000 1px solid; BORDER-BOTTOM: #000000 1px solid"
    align=center width="15%" bgColor=#ffffff>4,918 </TD></TR>
  <TR vAlign=top>
    <TD
    style="BORDER-RIGHT: #000000 1px solid; BORDER-LEFT: #000000 1px solid; BORDER-BOTTOM: #000000 1px solid"
    align=left bgColor=#ffffff>Cash generated by financing activities </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=center width="15%"
    bgColor=#eeeeee>5,760 </TD>
    <TD
    style="BORDER-RIGHT: #000000 1px solid; BORDER-LEFT: #000000 1px solid; BORDER-BOTTOM: #000000 1px solid"
    align=center width="15%" bgColor=#ffffff>915 </TD></TR>
  <TR vAlign=top>
    <TD
    style="BORDER-RIGHT: #000000 1px solid; BORDER-LEFT: #000000 1px solid; BORDER-BOTTOM: #000000 1px solid"
    align=left bgColor=#ffffff>Cash generated by (used in) investing
      activities </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=center width="15%"
    bgColor=#eeeeee>(2,782) </TD>
    <TD
    style="BORDER-RIGHT: #000000 1px solid; BORDER-LEFT: #000000 1px solid; BORDER-BOTTOM: #000000 1px solid"
    align=center width="15%" bgColor=#ffffff>(27,713) </TD></TR>
  <TR>
    <TD style="BORDER-LEFT: #000000 1px solid; BORDER-BOTTOM: #000000 1px solid"
    bgColor=#ffffff>&nbsp; </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="15%"
      bgColor=#ffffff>&nbsp; </TD>
    <TD
    style="BORDER-RIGHT: #000000 1px solid; BORDER-BOTTOM: #000000 1px solid"
    width="15%" bgColor=#ffffff>&nbsp; </TD></TR>
  <TR vAlign=top>
    <TD
    style="BORDER-RIGHT: #000000 1px solid; BORDER-LEFT: #000000 1px solid; BORDER-BOTTOM: #000000 1px solid"
    align=left bgColor=#ffffff><B>Financial Position</B> </TD>
    <TD width="15%"
    align=center nowrap bgColor=#eeeeee
    style="BORDER-RIGHT: #000000 1px solid; BORDER-LEFT: #000000 1px solid; BORDER-BOTTOM: #000000 1px solid"><B>September 30, 2011</B> </TD>
    <TD width="15%"
    align=center nowrap bgColor=#ffffff
    style="BORDER-RIGHT: #000000 1px solid; BORDER-LEFT: #000000 1px solid; BORDER-BOTTOM: #000000 1px solid"><B>Dec 31, 2010</B> </TD></TR>
  <TR vAlign=top>
    <TD
    style="BORDER-RIGHT: #000000 1px solid; BORDER-LEFT: #000000 1px solid; BORDER-BOTTOM: #000000 1px solid"
    align=left bgColor=#ffffff>Cash and cash equivalents </TD>
    <TD
    style="BORDER-RIGHT: #000000 1px solid; BORDER-LEFT: #000000 1px solid; BORDER-BOTTOM: #000000 1px solid"
    align=center width="15%" bgColor=#eeeeee>355,903 </TD>
    <TD
    style="BORDER-RIGHT: #000000 1px solid; BORDER-LEFT: #000000 1px solid; BORDER-BOTTOM: #000000 1px solid"
    align=center width="15%" bgColor=#ffffff>232,311 </TD></TR>
  <TR vAlign=top>
    <TD
    style="BORDER-RIGHT: #000000 1px solid; BORDER-LEFT: #000000 1px solid; BORDER-BOTTOM: #000000 1px solid"
    align=left bgColor=#ffffff>Current assets &#150; total </TD>
    <TD
    style="BORDER-RIGHT: #000000 1px solid; BORDER-LEFT: #000000 1px solid; BORDER-BOTTOM: #000000 1px solid"
    align=center width="15%" bgColor=#eeeeee>508,455 </TD>
    <TD
    style="BORDER-RIGHT: #000000 1px solid; BORDER-LEFT: #000000 1px solid; BORDER-BOTTOM: #000000 1px solid"
    align=center width="15%" bgColor=#ffffff>342,054 </TD></TR>
  <TR vAlign=top>
    <TD
    style="BORDER-RIGHT: #000000 1px solid; BORDER-LEFT: #000000 1px solid; BORDER-BOTTOM: #000000 1px solid"
    align=left bgColor=#ffffff>Current liabilities &#150; total </TD>
    <TD
    style="BORDER-RIGHT: #000000 1px solid; BORDER-LEFT: #000000 1px solid; BORDER-BOTTOM: #000000 1px solid"
    align=center width="15%" bgColor=#eeeeee>79,828 </TD>
    <TD
    style="BORDER-RIGHT: #000000 1px solid; BORDER-LEFT: #000000 1px solid; BORDER-BOTTOM: #000000 1px solid"
    align=center width="15%" bgColor=#ffffff>35,163 </TD></TR>
  <TR vAlign=top>
    <TD
    style="BORDER-RIGHT: #000000 1px solid; BORDER-LEFT: #000000 1px solid; BORDER-BOTTOM: #000000 1px solid"
    align=left bgColor=#ffffff>Working capital </TD>
    <TD
    style="BORDER-RIGHT: #000000 1px solid; BORDER-LEFT: #000000 1px solid; BORDER-BOTTOM: #000000 1px solid"
    align=center width="15%" bgColor=#eeeeee>428,627 </TD>
    <TD
    style="BORDER-RIGHT: #000000 1px solid; BORDER-LEFT: #000000 1px solid; BORDER-BOTTOM: #000000 1px solid"
    align=center width="15%" bgColor=#ffffff>306,891 </TD></TR>
  <TR vAlign=top>
    <TD
    style="BORDER-RIGHT: #000000 1px solid; BORDER-LEFT: #000000 1px solid; BORDER-BOTTOM: #000000 1px solid"
    align=left bgColor=#ffffff>Total assets </TD>
    <TD
    style="BORDER-RIGHT: #000000 1px solid; BORDER-LEFT: #000000 1px solid; BORDER-BOTTOM: #000000 1px solid"
    align=center width="15%" bgColor=#eeeeee>1,249,570 </TD>
<TD
    style="BORDER-RIGHT: #000000 1px solid; BORDER-LEFT: #000000 1px solid; BORDER-BOTTOM: #000000 1px solid"
    align=center width="15%" bgColor=#ffffff>1,147,990 </TD></TR></TABLE>
<P align=right>Page 10 of 15</P>
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<DIV>
<TABLE
style="BORDER-COLOR: black; FONT-SIZE: 10pt; BORDER-COLLAPSE: collapse; "
borderColor=#000000 cellSpacing=0 cellPadding=0 width="100%" border=1>

  <TR vAlign=top>
    <TD align=center bgColor=#ffffff><BR><BR></TD>
    <TD width="20%" align=center nowrap bgColor=#eeeeee><B>Nine Months</B>
      <BR>
      <B>Ended September</B> <BR><B>30, 2011</B> </TD>
    <TD width="20%" align=center nowrap bgColor=#ffffff><B>Nine Months</B>
      <BR>
    <B>Ended September</B> <BR><B>30, 2010</B> </TD></TR>
  <TR vAlign=top>
    <TD align=left bgColor=#ffffff>Earnings (loss) from mine operations </TD>
    <TD align=center width="15%" bgColor=#eeeeee>55,189 </TD>
    <TD align=center width="15%" bgColor=#ffffff>(10,841) </TD></TR>
  <TR vAlign=top>
    <TD align=left bgColor=#ffffff>Earnings (loss) from operations </TD>
    <TD align=center width="15%" bgColor=#eeeeee>29,702 </TD>
    <TD align=center width="15%" bgColor=#ffffff>(30,907) </TD></TR>
  <TR vAlign=top>
    <TD align=left bgColor=#ffffff>Net earnings (loss) for the period </TD>
    <TD align=center width="15%" bgColor=#eeeeee>77,545 </TD>
    <TD align=center width="15%" bgColor=#ffffff>(23,169) </TD></TR>
  <TR vAlign=top>
    <TD align=left bgColor=#ffffff>Basic earnings (loss) per share </TD>
    <TD align=center width="15%" bgColor=#eeeeee>0.97 </TD>
    <TD align=center width="15%" bgColor=#ffffff>(0.30) </TD></TR>
  <TR vAlign=top>
    <TD align=left bgColor=#ffffff>Cash generated (used) in operating
      activities </TD>
    <TD align=center width="15%" bgColor=#eeeeee>12,903 </TD>
    <TD align=center width="15%" bgColor=#ffffff>(18,788) </TD></TR>
  <TR vAlign=top>
    <TD align=left bgColor=#ffffff>Cash generated by financing activities </TD>
    <TD align=center width="15%" bgColor=#eeeeee>19,202 </TD>
    <TD align=center width="15%" bgColor=#ffffff>109,589 </TD></TR>
  <TR vAlign=top>
    <TD align=left bgColor=#ffffff>Cash generated by (used in) investing
      activities </TD>
    <TD align=center width="15%" bgColor=#eeeeee>91,487 </TD>
    <TD align=center width="15%" bgColor=#ffffff>(81,621)
</TD></TR></TABLE></DIV>
<P align=justify><B>Principal Projects</B></P>
<P align=justify>Pitarrilla, Mexico</P>
<P align=justify>A total of $2.7 million was spent during the quarter at the
wholly-owned Pitarrilla project located in the state of Durango, Mexico compared
to $9.8 million in the same quarter of the prior year.</P>
<P align=justify>On August 10, 2011 the Company committed a total of $25.0
million to accelerate the advancement of the Pitarrilla mining complex. A
feasibility study is scheduled to be completed in the first half of 2012 and if
approved, detailed design and construction will commence thereafter leading to
production in approximately two years. The $25.0 million allows for the purchase
of critical path process equipment and to date work has commenced on access
roads, water wells, and constructing the workers&#146; camp. The Company also
continues to build the management team, notably with the recruitment of a new
general manager. </P>
<P align=justify>A campaign of diamond drilling was also conducted during the
second and third quarters, with 83 boreholes and a total of 13,867 meters being
drilled. This drilling program was designed to provide in-fill assay data for an
enhanced estimate of the project&#146;s &#145;oxide&#146; silver resource as well as
geotechnical and metallurgical information that will be used for mine design and
optimization.</P>
<P align=justify>The Pitarrilla project currently comprises Probable mineral
reserves of 91.7 million ounces of silver, Measured and Indicated resources of
551.6 million ounces of silver and Inferred resources of 82.2 million ounces of
silver. </P>
<P align=justify>San Luis, Peru</P>
<P align=justify>A total of $1.3 million was spent during the quarter at the now
wholly-owned San Luis project in Peru compared to $1.2 million in the same
quarter of the prior year. On July 28, 2011, the Company completed the
previously announced agreement, and acquired the remaining 30% interest in the
San Luis project from the Company&#146;s former joint venture partner, Esperanza
Resources Corp. (&#147;Esperanza&#148;). Under the terms of the agreement, the Company
paid $17.9 million in cash, transferred to Esperanza the 6.459 million shares of
Esperanza that the Company owned, and granted to Esperanza a 1% net smelter
return royalty on future revenues earned from the project. </P>
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<P align=justify>Long-term land access negotiations advanced with two local
communities and work also continued on completing the required Environmental
Impact Study (&#147;EIS&#148;). The completion of the land access agreements and the EIS
will enable a construction decision to be made, which is expected to happen
during 2012. </P>
<P align=justify>During the quarter mineral prospecting on the property resulted
in the discovery of a set of northwesterly trending quartz veins which were
tested for their precious metal content with the collection of 265 rock-chip
samples. Assay results for these samples indicate sections of these veins are
significantly mineralized with gold and require further assessment by diamond
drilling.</P>
<P align=justify>The San Luis project comprises Proven and Probable mineral
reserves of 7.2 million ounces of silver and 0.29 million ounces of gold. These
reserves are 100% attributable to the Company as of July 28, 2011, following its
consolidation of ownership. </P>
<P align=justify>Nazas, Mexico</P>
<P align=justify>A total of $1.6 million was spent during the quarter at the
Company&#146;s Nazas project, compared to $0.2 million during the same quarter of the
prior year. </P>
<P align=justify>Nazas, which until recently comprised three contiguous mineral
properties covering approximately 236 square kilometers, is centered about 16
kilometers east of the Pitarrilla project and covers an extensive system of
gold- and silver-bearing quartz veins and related hydrothermal alteration.
Several of these vein targets have now been tested, with approximately 4,187
meters being drilled in the third quarter for a total of 12,587 meters coming
from 22 boreholes. </P>
<P align=justify>Subsequent to the quarter end, the Company elected not to
continue its option to purchase the Navidad claim group at the center of the
Nazas project area due to the fact that assay results from boreholes drilled on
the claims were insufficiently positive to justify the costs to maintain the
option to purchase agreement with the owner of the claims. Notwithstanding our
decision on the Navidad property, the geological information provided by this
year&#146;s drilling campaign will be utilized in the planning of future drilling on
the other two Nazas properties which are wholly owned by the Company. Our goal
at Nazas continues to be the discovery of precious metal-rich polymetallic
mineralization.</P>
<P align=justify>Diablillos, Argentina</P>
<P align=justify>A total of $0.7 million was spent during the quarter at the
Company&#146;s wholly-owned Diablillos project (which is located 275 kilometers south
of the Pirquitas mine in northwestern Argentina) compared to $0.7 million in the
same quarter of the prior year. </P>
<P align=justify>Expenditures for the quarter include administrative, property
taxes and camp maintenance costs. Fieldwork in the quarter mainly comprised rock
sampling to identify satellite zones of near-surface oxidized gold
mineralization that would complement the resources defined in the main Oculto
silver-gold deposit. A number of prospects were identified for follow-up
mechanized trenching and additional sampling, and depending on the results of
this work which will be completed in the fourth quarter, several of these
targets are expected to be drilled next year with shallow boreholes.</P>
<P align=right>Page 12 of 15</P>
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<P align=justify>The Oculto deposit at the Diablillos project has a Indicated
mineral resource that contains 77.1 million ounces of silver and 0.64 million
ounces of gold, with additional Inferred resources containing 6.3 million ounces
of silver and 0.19 million ounces of gold. </P>
<P align=justify>San Agustin, Mexico</P>
<P align=justify>A total of $0.2 million was spent during the quarter at the
Company&#146;s wholly-owned San Agustin project located in Durango State, Mexico
compared to the $0.5 million spent in the same quarter of the prior year. Most
of the third quarter expenditure was incurred as property holding costs and
other administrative expenses.</P>
<P align=justify>Advanced negotiations were conducted during the quarter with
three parties that control the property surface rights. Once land access
agreements are in place, a 5,000 meter-long diamond drilling program will be
initiated, likely in the first quarter of 2012. The objective of the drilling
program will be to expand the near-surface oxidized gold resource. In addition
to the proposed program of in-fill drilling, detailed metallurgical studies will
also be undertaken and will focus on gold recovery characteristics of the oxide
gold mineralization. </P>
<P align=justify>The San Agustin project currently comprises an Indicated
mineral resource of 47.8 million ounces of silver and 1.59 million ounces of
gold, along with an Inferred resource of 36.9 million ounces of silver and 1.06
million ounces of gold. </P>
<P align=justify><B>Management&#146;s Discussion &amp; Analysis and Conference
Call</B></P>
<P align=justify>This news release should be read in conjunction with Silver
Standard&#146;s third quarter 2011 Financial Statements and Management&#146;s Discussion
and Analysis filed with Canadian securities regulators available at
<U><font color="#0000FF">www.sedar.com</font></U>, with United States Securities Regulators available at
<U><font color="#0000FF">www.sec.gov</font></U>, and the company&#146;s web site at <U><font color="#0000FF">www.silverstandard.com</font></U>.</P>
<ul>
  <li>Conference Call and Webcast: Thursday, November 10, 2011, at
    11:00 p.m. Eastern Time.</li>
</ul>
<TABLE
style="BORDER-COLOR: black; FONT-SIZE: 10pt; BORDER-COLLAPSE: collapse; "
cellSpacing=0 cellPadding=0 width="100%" border=0>

  <TR vAlign=top>
    <TD width="5%" align=left >&nbsp;</TD>
    <TD align=left >Toll-free in North America: </TD>
    <TD align=left width="75%">(888) 429-4600 </TD></TR>
  <TR vAlign=top>
    <TD align=left >&nbsp;</TD>
    <TD align=left >All other callers: </TD>
    <TD align=left width="75%">(970) 315-0481 </TD></TR>
  <TR vAlign=top>
    <TD align=left >&nbsp;</TD>
    <TD align=left >Webcast: </TD>
    <TD align=left width="75%"><U><font color="#0000FF">http://ir.silverstandard.com/events.cfm</font></U>    </TD>
  </TR></TABLE>
<ul>
  <li>The call will be archived and available at
    <U><font color="#0000FF">www.silverstandard.com</font> </U>after November 11, 2011. Audio replay will be
    available for one week by calling:</li>
</ul>
<TABLE
style="BORDER-COLOR: black; FONT-SIZE: 10pt; BORDER-COLLAPSE: collapse; "
cellSpacing=0 cellPadding=0 width="100%" border=0>

  <TR vAlign=top>
    <TD width="5%" align=left >&nbsp;</TD>
    <TD align=left >Toll-free in North America: </TD>
    <TD align=left width="75%">(855) 859-2056, replay conference ID 20937226    </TD></TR>
  <TR vAlign=top>
    <TD align=left >&nbsp;</TD>
    <TD align=left >All other callers: </TD>
    <TD align=left width="75%">(404) 537-3406, replay conference ID 20937226    </TD></TR></TABLE>
<BR>
<TABLE
style="BORDER-COLOR: black; FONT-SIZE: 10pt; BORDER-COLLAPSE: collapse; "
cellSpacing=0 cellPadding=0 width="100%" border=0>

  <TR vAlign=top>
    <TD align=left>For further information contact: </TD></TR>
  <TR>
    <TD>&nbsp; </TD></TR>
  <TR vAlign=top>
    <TD align=left>Ian Chadsey </TD></TR>
  <TR vAlign=top>
    <TD align=left>Director Investor Relations </TD></TR>
  <TR vAlign=top>
    <TD align=left>N.A. toll-free: (888) 338-0046 </TD></TR>
  <TR vAlign=top>
    <TD align=left>Telephone: (604) 484-8216 </TD></TR>
  <TR vAlign=top>
    <TD align=left>E-Mail: <U><font color="#0000FF">invest@silverstandard.com</font></U> </TD>
  </TR></TABLE>
<P align=right>Page 13 of 15</P>
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<P align=justify><B><I>Cautionary Statements on Forward Looking
Information:</I></B></P>
<P align=justify>The news release contains &#147;forward-looking statements&#148; within
  the meaning of the United States Private Securities Litigation Reform Act of
  1995 and &#147;forward looking information&#148; within Canadian securities laws
  (collectively &#147;forward looking statements&#148;) related to the Company and its
  operations, and in particular, 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.
  Statements concerning mineral resources and reserve 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 and when the
  property is developed or further developed. 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. These forward
  looking statements relate to, among other things: future production of silver
  and other metals; future cash costs per ounce of silver; the price of silver and
  other metals; the effects of laws, regulations and government policies affecting
  our operations or potential future operations; future successful development of
  our San Luis and Pitarrilla projects and other development projects; the
  sufficiency of the Company&#146;s current working capital, anticipated operating cash
  flow or our ability to raise necessary funds; estimated production rates for
  silver and other payable metal produced by the Company; timing of production and
  the cash and total costs of production at our Pirquitas mine; the estimated cost
  of sustaining capital; ongoing or future development plans and capital
  replacement, improvement or remediation programs; the estimates of expected or
  anticipated economic returns from the Company&#146;s mining projects including:
  future sales of the metals, concentrates or other products produced by the
  Company; and the Company&#146;s plans and expectations for its properties and
  operations</P>
<P align=justify>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: uncertainty of production and cost estimates for the Pirquitas Mine;
uncertainty of development or production at our mineral exploration properties;
risks and uncertainties associated with new mining operations, including
start-up delays and operational issues; risks and hazards associated with the
business of mineral exploration, development and mining (including environmental
hazards, industrial accidents, unusual or unexpected geological or structure
formations, pressures, cave-ins and flooding); risks and uncertainties relating
to the mineral resources and reserve estimates and related assumptions and the
interpretation of drill results and the geology, grade and continuity of our
mineral deposits; unpredictable risks and hazards related to the development and
operation of a mine or mine property that are beyond our control; risks related
to our ability to obtain adequate financing for our planned development
activities and to complete further exploration programs; fluctuations in spot
and forward markets for silver, gold and base metals and certain other
commodities; our history of losses and the potential for future losses; risks
related to general economic conditions, including recent market and world events
and conditions; inadequate insurance, or inability to obtain insurance, to cover
these risks and hazards; relationships with and claims by local communities and
indigenous populations; diminishing quantities or grades of mineral reserves as
properties are mined; challenges to, or difficulty maintaining, the Company&#146;s
title to properties and continued ownership thereof; risks related to our
covenants given with respect to our 4.5% convertible senior notes due 2028;
differences in U.S. and Canadian practices for reporting mineral resources and
reserve; changes in national and local legislation, taxation, controls or
regulations and political or economic developments or changes in Canada, the
United States, Argentina, Mexico, Peru or other countries where the Company
holds assets or may carry on business; risks related to the delay in obtaining
or failure to obtain required permits, or non-compliance with permits we have
obtained; increased costs and restrictions on operations due to compliance with
environmental laws and regulations; regulations and pending legislation
governing issues involving climate change, as well as the physical impacts of
climate change; risks related to reclamation activities on our properties;
uncertainties related to title to our mineral properties and the surface rights
thereon; our ability to successfully acquire additional commercially mineable
mineral rights; risks related to currency fluctuations (such as the Argentine
peso, Peruvian sol and Mexican peso); increased costs affecting the mining
industry, including the current high rate of inflation in Argentina; increased
competition in the mining industry for properties, qualified personnel and
management; risks related to some of our directors&#146; and officers&#146; involvement
with other natural resource companies; our ability to attract and retain
qualified management to grow our business; risks related to estimates of future
income tax assets and liabilities; risks related to claims and legal
proceedings; our ability to maintain adequate internal control over financial
reporting; our ability to monetize the full value of our interest in Pretium
Resources and those factors identified under the heading &#147;Risk Factors&#148; in the
Company&#146;s most recent Form 20-F and Annual Information Form filed with the
United States Securities and Exchange Commission (the &#147;SEC&#148;) and Canadian and
Provincial securities regulatory authorities.</P>
<P align=right>Page 14 of 15</P>
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<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 news
release. 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>Cautionary note to U.S. investors: The terms &#147;measured mineral
resource&#148;, &#147;indicated mineral resource&#148;, and &#147;inferred mineral resource&#148; used in
this news release are Canadian geological and mining terms as defined in
accordance with National Instrument 43-101, Standards of Disclosure for Mineral
Projects (&#147;NI 43-101&#148;) under the guidelines set out in the Canadian Institute of
Mining, Metallurgy and Petroleum (the &#147;CIM&#148;) Standards on Mineral Resources and
Mineral Reserves. We advise U.S. investors that while such terms are recognized
and required under Canadian regulations, the SEC does not recognize these terms.
&#147;Inferred mineral resources&#148; in particular have a great amount of uncertainty as
to their economic feasibility. It cannot be assumed that all or any part of an
inferred mineral resource will ever be upgraded to a higher category. Under
Canadian rules estimates of inferred mineral resources may not generally form
the basis of feasibility or other economic studies. U.S. investors are cautioned
not to assume that any part or all of an inferred mineral resource exists, or is
economically or legally mineable. Disclosure of contained metal expressed in
ounces is in compliance with NI 43-101, but does not meet the requirements of
Industry Guide 7 of the SEC, which will only accept the disclosure of tonnage
and grade estimates for non-reserve mineralization.</P>
<P align=right>Page 15 of 15</P>
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<TYPE>EX-99.6
<SEQUENCE>7
<FILENAME>exhibit99-6.htm
<DESCRIPTION>NEWS RELEASE
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  <TR vAlign=top>
    <TD align=left>November 9, 2011 </TD>
    <TD align=right width="50%">News Release 11-25 </TD></TR></TABLE>
<P align=center><B>SILVER STANDARD REPORTS THIRD QUARTER 2011 RESULTS AND LOWERS
<BR>PIRQUITAS MINERAL RESOURCES &amp; RESERVE ESTIMATE</B></P>
<P align=justify>VANCOUVER, B.C. -- Silver Standard Resources Inc. (NASDAQ:
SSRI, TSX: SSO) (&#147;Silver Standard&#148; or the &#147;Company&#148;) reported unaudited
financial and operating results for the third quarter ended September 30, 2011.
The Company also disclosed a reduction of its mineral resources and reserve at
the Pirquitas mine in Argentina.</P>
<P align=justify>&#147;Third quarter production was lower than a year ago, but now
that we have addressed the issues at our Pirquitas mine we can look forward to
strong, continuous production from the mine,&#148; said John Smith, President and CEO
of Silver Standard. &#147;While we have taken a prudent approach to Pirquitas&#146;
reserves, we have a great exploration team who are focused on finding more
ounces. We also will continue advancing our combined Pitarrilla oxide and
sulphide mining complex in Mexico.&#148;</P>
<P align=justify><B>Third Quarter 2011 Summary<BR></B>(All figures are in U.S.
dollars unless otherwise noted)</P>
<UL style="TEXT-ALIGN: justify">
  <LI>Reached 1 million man hours free of any loss time injuries at Pirquitas
  <LI>Net earnings of $21.8 million or $0.27 per share versus a loss last year
  <LI>Cash balance of $356 million or $639 million in cash and equity
  investments
  <LI>Completed Bowdens sale for $70 million, recording a $51 million gain
  <LI>Approved $25 million budget to advance the schedule and feasibility of the
  Pitarrilla complex </LI></UL>
<P align=justify>Subsequent to the quarter;</P>
<UL style="TEXT-ALIGN: justify">
  <LI>Rebuilt the ball mill gearbox with all new internal parts
  <LI>Resumed production at Pirquitas, November 5, 2011
  <LI>Commenced spot sales of silver concentrate
  <LI>Completed a Pirquitas mineral resources and reserve estimate resulting in
  a reduction of ounces in both categories </LI></UL>
<P align=center>1</P>
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<P align=justify><B>Pirquitas Mine, Argentina</B></P>
<P align=justify><B>Table 1. Summary of Mine Operating Statistics</B></P>
<DIV>
<TABLE
style="BORDER-COLOR: black; FONT-SIZE: 8pt; BORDER-COLLAPSE: collapse; "
borderColor=#000000 cellSpacing=0 cellPadding=3 width="100%" border=1>

  <TR vAlign=top>
    <TD align=left bgColor=#ffffff>&nbsp; </TD>
    <TD align=center width="14%" bgColor=#ffffff>&nbsp; </TD>
    <TD align=center width="14%" bgColor=#eeeeee><B>Q3 2011</B> </TD>
    <TD align=center width="14%" bgColor=#ffffff><B>Q2 2011</B> </TD>
    <TD align=center width="14%" bgColor=#ffffff><B>Q1 2011</B> </TD>
    <TD align=center width="14%" bgColor=#ffffff><B>Q4 2010</B> </TD>
    <TD align=center width="14%" bgColor=#ffffff><B>Q3 2010</B> </TD>
  </TR>
  <TR vAlign=top>
    <TD align=left bgColor=#ffffff>Total Material Mined </TD>
    <TD align=center width="14%" bgColor=#ffffff>Kt </TD>
    <TD align=center width="14%" bgColor=#eeeeee><B>4,185</B> </TD>
    <TD align=center width="14%" bgColor=#ffffff><B>4,483</B> </TD>
    <TD align=center width="14%" bgColor=#ffffff><B>4,172</B> </TD>
    <TD align=center width="14%" bgColor=#ffffff>4,360 </TD>
    <TD align=center width="14%" bgColor=#ffffff>3,920 </TD>
  </TR>
  <TR vAlign=top>
    <TD align=left bgColor=#ffffff>Ore Processed </TD>
    <TD align=center width="14%" bgColor=#ffffff>Kt </TD>
    <TD align=center width="14%" bgColor=#eeeeee><B>245</B> </TD>
    <TD align=center width="14%" bgColor=#ffffff><B>295</B> </TD>
    <TD align=center width="14%" bgColor=#ffffff><B>308</B> </TD>
    <TD align=center width="14%" bgColor=#ffffff>313 </TD>
    <TD align=center width="14%" bgColor=#ffffff>320 </TD>
  </TR>
  <TR vAlign=top>
    <TD align=left bgColor=#ffffff>Silver Grade </TD>
    <TD align=center width="14%" bgColor=#ffffff>g/t </TD>
    <TD align=center width="14%" bgColor=#eeeeee><B>250</B> </TD>
    <TD align=center width="14%" bgColor=#ffffff><B>261</B> </TD>
    <TD align=center width="14%" bgColor=#ffffff><B>233</B> </TD>
    <TD align=center width="14%" bgColor=#ffffff>267 </TD>
    <TD align=center width="14%" bgColor=#ffffff>283 </TD>
  </TR>
  <TR vAlign=top>
    <TD align=left bgColor=#ffffff>Recoveries </TD>
    <TD align=center width="14%" bgColor=#ffffff>% </TD>
    <TD align=center width="14%" bgColor=#eeeeee><B>82.9</B> </TD>
    <TD align=center width="14%" bgColor=#ffffff><B>80.0</B> </TD>
    <TD align=center width="14%" bgColor=#ffffff><B>73.6</B> </TD>
    <TD align=center width="14%" bgColor=#ffffff>76.3 </TD>
    <TD align=center width="14%" bgColor=#ffffff>66.3 </TD>
  </TR>
  <TR vAlign=top>
    <TD align=left bgColor=#ffffff>Silver Produced </TD>
    <TD align=center width="14%" bgColor=#ffffff>&#145;000 oz. </TD>
    <TD align=center width="14%" bgColor=#eeeeee><B>1,631</B> </TD>
    <TD align=center width="14%" bgColor=#ffffff><B>1,976</B> </TD>
    <TD align=center width="14%" bgColor=#ffffff><B>1,697</B> </TD>
    <TD align=center width="14%" bgColor=#ffffff>2,067 </TD>
    <TD align=center width="14%" bgColor=#ffffff>1,933 </TD>
  </TR>
  <TR vAlign=top>
    <TD align=left bgColor=#ffffff>Direct Mining Cost<SUP>(1)</SUP> </TD>
    <TD align=center width="14%" bgColor=#ffffff>US$/oz. </TD>
    <TD align=center width="14%" bgColor=#eeeeee><B>16.20</B> </TD>
    <TD align=center width="14%" bgColor=#ffffff><B>11.57</B> </TD>
    <TD align=center width="14%" bgColor=#ffffff><B>12.26</B> </TD>
    <TD align=center width="14%" bgColor=#ffffff>9.55 </TD>
    <TD align=center width="14%" bgColor=#ffffff>10.43 </TD>
  </TR>
  <TR vAlign=top>
    <TD align=left bgColor=#ffffff>Total Cash Cost<SUP>(1)</SUP> </TD>
    <TD align=center width="14%" bgColor=#ffffff>US$/oz. </TD>
    <TD align=center width="14%" bgColor=#eeeeee><B>20.60</B> </TD>
    <TD align=center width="14%" bgColor=#ffffff><B>22.06</B> </TD>
    <TD align=center width="14%" bgColor=#ffffff><B>23.23</B> </TD>
    <TD align=center width="14%" bgColor=#ffffff>16.06 </TD>
    <TD align=center width="14%" bgColor=#ffffff>16.95</TD>
  </TR></TABLE></DIV>
<P align=justify><I>(1) The Company changed its presentation of cash costs per
ounce during the second quarter of 2011 in line with the newly endorsed
production cost guidance provided by The Silver Institute. Direct mining cost
per ounce and total cash cost per ounce are Non-GAAP measures discussed under
non-GAAP financial performance measures contained in the Management Discussion
and Analysis (&#147;MD&amp;A&#148;) for the quarter ended September 30, 2011 and year end
December 31, 2010.</I></P>
<P align=justify><B>Mine Production</B></P>
<P align=justify>The Pirquitas mine produced 1.6 million ounces of silver during
the third quarter of 2011 compared with 1.9 million ounces in the third quarter
of 2010. The lower production in the current quarter, as compared to the second
quarter of 2011, resulted from a 17-day ball mill shutdown in July 2011 and a
further 7-day shutdown in September 2011 to refurbish the gearbox. In the period
between these two shutdowns the plant was achieving design rates with daily
average production of 26,000 ounces and recovery rates of 83%. The gearbox has
been completely rebuilt with new parts and recommenced operating in
early-November. This rebuild put the gearbox in near-new condition. Shipping of
a replacement gearbox from Europe is also scheduled for November with arrival on
site in January 2012.</P>
<P align=justify>The Company revised its production guidance to produce between
7.3 and 7.6 million ounces of silver in 2011 as a result of the three
performance issues with the ball mill gearbox. Unanticipated plant downtime in
October and November after the revised guidance was issued on September 24,
2011, means achieving the low end of production guidance will be a successful
outcome in the Company&#146;s view. </P>
<P align=justify>During the third quarter 245,127 tonnes of ore were processed
at an average milling rate of 2,664 tonnes per day, compared to 295,004 tonnes
at an average of 3,241 tonnes per day achieved in the second quarter of 2011 and 320,174 tonnes at an average
milling rate of 3,480 tonnes per day in the third quarter of 2010. However, the
average milling rate in the third quarter of 2011 per operating day was in
excess of 3,600 tonnes per day.</P>
<P align=justify>The ore milled during the third quarter of 2011 contained
  average silver grade of 250 g/t and achieved average silver recovery of 83%,
  compared to a silver grade of 283 g/t and recovery of 66% in the third quarter
  of 2010. The strong silver recovery achieved during the third quarter of 2011
  was due principally to consistent feed and continuous improvements to the
  crushing and flotation circuits.</P>
<P align=center>2</P>
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<P align=justify>The mine produced a total of 3.3 million pounds of zinc in the
third quarter of 2011 compared to 2.8 million pounds in the second quarter of
2011. </P>
<P align=justify><B>Mine Operating Costs</B></P>
<P align=justify>Direct mining cost in the third quarter was $16.20 per ounce
silver compared to $10.43 per ounce in the third quarter of 2010. Operating
costs were higher in the third quarter as a result of additional repairs and
maintenance costs associated with the refurbishment of the ball mill gearbox,
and additional maintenance costs and external costs associated with the import
restrictions that affected the ability to obtain quality spare parts. Operations
were also impacted by import restrictions which were imposed by the Argentine
government on all industries.</P>
<P align=justify>Total cash cost, which includes by-product credits, treatment
and refining costs, royalties and production taxes, was $20.60 per ounce silver
compared to $16.95 per ounce in the third quarter of 2010. Treatment and
refining costs, as well as royalties and production taxes are all a function of
sales prices and are recorded for the actual ounces sold during the quarter. The
incremental per ounce impact of these costs in the third quarter of 2011
compared with the third quarter of 2010 is due to lower sales in the current
quarter. Higher prices achieved on sales in the current quarter partially offset
the volume impact compared to the third quarter of 2010.</P>
<P align=justify>Total production cost, which includes depreciation and
amortization, was $24.55 per ounce in the third quarter of 2011 compared to
$19.89 in the third quarter of 2010. The depreciation and amortization costs are
largely fixed, and are higher on a per ounce basis in the current quarter due to
lower production volumes.</P>
<P align=justify><b>Pirquitas Mineral Resources and Reserve Estimates</b></P>
<p align=justify>As part of the Company&#146;s ongoing production-reserve
  reconciliation and mine planning, and to delineate the deposit in greater detail
  for the mine&#146;s mineral resources and reserve estimates, the Company undertook a
  comprehensive drilling campaign between the fourth quarter of 2010 and
  September, 2011. Assay results from these drill-holes have been utilized by the
  Company&#146;s Qualified Persons (QPs) to complete advanced modeling of the deposit&#146;s
  current mineral resources and reserve. Model validation included detailed
  reconciliation with grade control and mine production data. The outcome of this
  modeling work is shown below in Tables 2 and 3.</p>
<P align=center>3</P>
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<P style="MARGIN-LEFT: 5%" align=justify><B>Table 2. Pirquitas Mineral Resources
Estimate, as of September 30, 2011 <BR></B><I>(Total Measured and Indicated
Resources are </I><I><U>Inclusive </U></I><I>of Total Reserve) </I></P>
<DIV align=center>
<TABLE
style="BORDER-COLOR: black; FONT-SIZE: 8pt; BORDER-COLLAPSE: collapse; "
borderColor=#000000 cellSpacing=0 cellPadding=3 width="90%" border=1>

  <TR vAlign=top>
    <TD align=center valign="middle" ><B>Classification</B> </TD>
    <TD align=center valign="middle"><B>Tonnage</B> <BR>
        <B>(Mt)</B> </TD>
    <TD align=center valign="middle"><B>Silver</B> <BR>
        <B>Grade</B> <BR>
      <B>(g/t)</B> </TD>
    <TD align=center valign="middle"><B>Zinc Grade</B> <BR>
        <B>(%)</B> </TD>
    <TD align=center valign="middle"><B>Contained</B> <BR>
        <B>Silver</B> <BR>
      <B>(Moz)</B> </TD>
    <TD align=center valign="middle"><B>Contained</B> <BR>
        <B>Zinc</B> <BR>
      <B>(Mlbs)</B> </TD>
  </TR>
  <TR vAlign=top>
    <TD align=left >&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Measured </TD>
    <TD align=center width="14%">13.5 </TD>
    <TD align=center width="14%">156.2 </TD>
    <TD align=center width="14%">0.49 </TD>
    <TD align=center width="14%">68.0 </TD>
    <TD align=center width="14%">144.9 </TD></TR>
  <TR vAlign=top>
    <TD align=left >&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Indicated </TD>
    <TD align=center width="14%">16.3 </TD>
    <TD align=center width="14%">142.3 </TD>
    <TD align=center width="14%">0.91 </TD>
    <TD align=center width="14%">74.6 </TD>
    <TD align=center width="14%">328.4 </TD></TR>
  <TR vAlign=top>
    <TD align=left >&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Stockpiles (Indicated) </TD>
    <TD align=center width="14%">3.0 </TD>
    <TD align=center width="14%">78.5 </TD>
    <TD align=center width="14%">1.50 </TD>
    <TD align=center width="14%">7.5 </TD>
    <TD align=center width="14%">98.1 </TD></TR>
  <TR vAlign=top>
    <TD align=left ><B>Total Measured and</B> <B>Indicated</B> </TD>
    <TD align=center width="14%"><B>32.8</B> </TD>
    <TD align=center width="14%"><B>142.2</B> </TD>
    <TD align=center width="14%"><B>0.79</B> </TD>
    <TD align=center width="14%"><B>150.1</B> </TD>
    <TD align=center width="14%"><B>571.4</B> </TD></TR>
  <TR vAlign=top>
    <TD align=left >&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Cortaderas Breccia Inferred </TD>
    <TD align=center width="14%">2.0 </TD>
    <TD align=center width="14%">152.0 </TD>
    <TD align=center width="14%">5.4 </TD>
    <TD align=center width="14%">9.9 </TD>
    <TD align=center width="14%">239.3 </TD></TR>
  <TR vAlign=top>
    <TD align=left >&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Cortaderas Valley Inferred </TD>
    <TD align=center width="14%">5.0 </TD>
    <TD align=center width="14%">78.6 </TD>
    <TD align=center width="14%">1.1 </TD>
    <TD align=center width="14%">12.6 </TD>
    <TD align=center width="14%">120.8 </TD></TR>
  <TR vAlign=top>
    <TD align=left ><B>Total Inferred</B> </TD>
    <TD align=center width="14%"><B>7.0</B> </TD>
    <TD align=center width="14%"><B>98.4</B> </TD>
    <TD align=center width="14%"><B>2.3</B> </TD>
    <TD align=center width="14%"><B>22.5</B> </TD>
    <TD align=center width="14%"><B>360.1</B> </TD></TR></TABLE>
</DIV>
<P style="MARGIN-LEFT: 5%" align=justify>Notes to Table 2:</P>
<TABLE
style="BORDER-COLOR: black; FONT-SIZE: 10pt; BORDER-COLLAPSE: collapse; "
cellSpacing=0 cellPadding=0 width="100%" border=0 BCLLIST>

  <TR>
    <TD width="5%"  >&nbsp;</TD>
    <TD vAlign=top width="5%">1. </TD>
    <TD>
      <P align=justify>Dr. Warwick Board, Ph.D. (Geology), P.Geo., is the
      Qualified Person (QP) for the reported mineral resource
estimate.</P></TD></TR>
  <TR>
    <TD width="5%" >&nbsp;</TD>
    <TD vAlign=top width="5%">2. </TD>
    <TD>
      <P align=justify>All mineral resources have been classified in accordance
      with current CIM definition standards.</P></TD></TR>
  <TR>
    <TD width="5%" >&nbsp;</TD>
    <TD vAlign=top width="5%">3. </TD>
    <TD>
      <P align=justify>The reported measured and indicated resources represent
      resources estimated to exist below the as-mined surface as of September
      30, 2011.</P></TD></TR>
  <TR>
    <TD width="5%" >&nbsp;</TD>
    <TD vAlign=top width="5%">4. </TD>
    <TD>
      <P align=justify>The multiple-indicator kriging (MIK) modeling methodology
      was employed for estimates of the Measured and Indicated Resources,
      whereas ordinary kriging was used to estimate the Cortaderas Breccia
      Resource and single-indicator kriging was utilized for the Cortaderas
      Valley Inferred Resource.</P></TD></TR>
  <TR>
    <TD width="5%" >&nbsp;</TD>
    <TD vAlign=top width="5%">5. </TD>
    <TD>
      <P align=justify>A silver cut-off grade of 50 g/t Ag was used for all of
      the reported resource estimates.</P></TD></TR>
  <TR>
    <TD width="5%" >&nbsp;</TD>
    <TD vAlign=top width="5%">6. </TD>
    <TD>
      <P align=justify>A capping grade of 1,600 g/t Ag was utilized for the
      Cortaderas Breccia mineral resource estimate, while capping grades of 235
      g/t Ag and 10% Zn were used for the Cortaderas Valley mineral resource
      estimate.<br>
      Due to the nature of the MIK modeling technique, no grade
      capping was required for the Measured and Indicated resource estimates for
  the mine.</P></TD></TR>
  <TR>
    <TD >&nbsp;</TD>
    <TD vAlign=top>7.</TD>
    <TD>Detailed bulk density modeling, taking into account voids
      created by historical underground mining and differential rock densities,
      resulted in an average bulk density value of 2.60 tonnes per cubic meter
    for the resource estimates.</TD>
  </TR>
  <TR>
    <TD >&nbsp;</TD>
    <TD vAlign=top>8. </TD>
    <TD>Sums may not equal reported totals due to
  rounding.</TD>
  </TR>
</TABLE>
<P align=justify>Dr. Warwick Board, Ph.D. (Geology), P. Geo., the QP who
completed the mineral resource estimates reported here has been employed by the
Company as Senior Resource Geologist since August 2009, and before joining the
Company was Principal Consultant with Snowden Mining Industry Consultants. The
NI 43-101 Technical Report supporting these resource estimates will be filed on
SEDAR within 45 days from the release date of this document.</P>
<P align=center>4</P>
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<P style="MARGIN-LEFT: 5%" align=justify><B>Table 3. Pirquitas Mineral Reserve
Estimate, as of September 30, 2011</B></P>
<DIV align=center>
<TABLE
style="BORDER-COLOR: black; FONT-SIZE: 8pt; BORDER-COLLAPSE: collapse; "
borderColor=#000000 cellSpacing=0 cellPadding=3 width="90%" border=1>

  <TR vAlign=top>
    <TD align=left valign="middle"><B>Classification</B>  </TD>
    <TD width="16%" align=center valign="middle"><B>Tonnage</B> <BR>      <B>(Mt)</B> </TD>
    <TD width="16%" align=center valign="middle"><B>Silver</B> <BR><B>Grade</B> <br>
      <B>(g/t)</B> </TD>
    <TD width="16%" align=center valign="middle"><B>Zinc</B> <BR><B>Grade</B><br>      <B>(%)</B> </TD>
    <TD width="16%" align=center valign="middle"><B>Contained</B> <BR><B>Silver</B> <br>
      <B>(Moz)</B> </TD>
    <TD width="16%" align=center valign="middle"><B>Contained</B> <BR><B>Zinc</B><br>      <B>(Mlbs)</B> </TD></TR>

  <TR vAlign=top>
    <TD align=left>Proven </TD>
    <TD align=center width="16%">10.4 </TD>
    <TD align=center width="16%">181.2 </TD>
    <TD align=center width="16%">0.52 </TD>
    <TD align=center width="16%">60.4 </TD>
    <TD align=center width="16%">117.9 </TD></TR>
  <TR vAlign=top>
    <TD align=left>Probable </TD>
    <TD align=center width="16%">5.1 </TD>
    <TD align=center width="16%">168.9 </TD>
    <TD align=center width="16%">1.04 </TD>
    <TD align=center width="16%">27.6 </TD>
    <TD align=center width="16%">117.1 </TD></TR>
  <TR vAlign=top>
    <TD align=left>Reserve Stockpiles </TD>
    <TD align=center width="16%">1.2 </TD>
    <TD align=center width="16%">129.2 </TD>
    <TD align=center width="16%">1.03 </TD>
    <TD align=center width="16%">5.0 </TD>
    <TD align=center width="16%">27.6 </TD></TR>
  <TR vAlign=top>
    <TD align=left><B>Total Reserve</B> </TD>
    <TD align=center width="16%"><B>16.7</B> </TD>
    <TD align=center width="16%"><B>173.7</B> </TD>
    <TD align=center width="16%"><B>0.71</B> </TD>
    <TD align=center width="16%">&nbsp; &nbsp; &nbsp;<B>93.1</B> </TD>
    <TD align=center width="16%"><B>262.6</B> </TD></TR></TABLE>
</DIV>
<P style="MARGIN-LEFT: 5%" align=justify>Notes to Table 3:</P>
<TABLE
style="BORDER-COLOR: black; FONT-SIZE: 10pt; BORDER-COLLAPSE: collapse; "
cellSpacing=0 cellPadding=0 width="100%" border=0 BCLLIST>

  <TR>
    <TD width="5%"  >&nbsp;</TD>
    <TD vAlign=top width="5%">1. </TD>
    <TD>
      <P align=justify>R. Bruce Kennedy, BS (Mining Engineering), P. E. is the
      Qualified Person for the reported mineral reserve estimate.</P></TD></TR>
  <TR>
    <TD width="5%" >&nbsp;</TD>
    <TD vAlign=top width="5%">2. </TD>
    <TD>
      <P align=justify>Trevor Yeomans, B.Sc. (Mineral Processing), P. Eng., is
      the Qualified Person who provided metallurgical parameters that were
      incorporated in the reserve estimates.</P></TD></TR>
  <TR>
    <TD width="5%" >&nbsp;</TD>
    <TD vAlign=top width="5%">3. </TD>
    <TD>
      <P align=justify>All mineral reserves have been classified in accordance
      with current CIM definition standards.</P></TD></TR>
  <TR>
    <TD width="5%" >&nbsp;</TD>
    <TD vAlign=top width="5%">4. </TD>
    <TD>
      <P align=justify>Reported mineral reserves were estimated using the
      Measured and Indicated resources shown in Table 2, excluding 1.2 Mt
      Indicated resource estimated for the Oploca Vein to contain approximately
      8.2 Moz. silver. The estimated Oploca mineral resource lies just beyond
      the southern limits of the current pit design.</P></TD></TR>
  <TR>
    <TD width="5%" >&nbsp;</TD>
    <TD vAlign=top width="5%">5. </TD>
    <TD>
      <P align=justify>Metal prices used in reserve estimates are $25.00 per
      ounce of silver and $2,403 per tonne of zinc.</P></TD></TR>
  <TR>
    <TD width="5%" >&nbsp;</TD>
    <TD vAlign=top width="5%">6. </TD>
    <TD>
      <P align=justify>Mining costs are as per 2011 actual costs, with estimated
      productivity changes incorporated.</P></TD></TR>
  <TR>
    <TD width="5%" >&nbsp;</TD>
    <TD vAlign=top width="5%">7. </TD>
    <TD>
      <P align=justify>Mill and general administrative costs were estimated on
      the basis of 2011 actual costs, incorporating projections to full and
      stable production.</P></TD></TR>
  <TR>
    <TD width="5%" >&nbsp;</TD>
    <TD vAlign=top width="5%">8. </TD>
    <TD>
      <P align=justify>The mineral reserve is quoted within a pit design that
      utilizes geotechnical parameters proven from actual performance. The
      design was created using a geometry guideline from a Lerche-Grossman
      algorithm that maximizes the reserve cash flow.</P></TD></TR>
  <TR>
    <TD width="5%" >&nbsp;</TD>
    <TD vAlign=top width="5%">9. </TD>
    <TD>
      <P align=justify>Average open-pit strip ratio of 4.89:1 total:ore was
      used.</P></TD></TR>
  <TR>
    <TD width="5%" >&nbsp;</TD>
    <TD vAlign=top width="5%">10. </TD>
    <TD>
      <P align=justify>The cut-off grade was developed on a net smelter return
      (NSR) basis that uses a total operating cost of $35.52 per tonne of
      ore.</P></TD></TR>
  <TR>
    <TD width="5%" >&nbsp;</TD>
    <TD vAlign=top width="5%">11. </TD>
    <TD>
      <P align=justify>Metallurgical recovery formulas were applied for silver
      and zinc concentrates that reflect increasing recovery with increasing
      head grade. Average metallurgical recovery for silver is 79.8 percent, and
      for zinc 42.9 percent.</P></TD></TR></TABLE>
<P align=justify>R. Bruce Kennedy, BS (Mining Engineering), P.E. , the QP who
has approved the estimated mineral reserve reported here, is the General Manager
of the Pirquitas Mine, having joined the Company in March 2011. Mr. Kennedy has
extensive mine management experience and prior to joining the Company was a
senior mining consultant with SRK Consulting. A NI 43-101 Technical Report
supporting the tabulated reserve estimates will be filed on SEDAR within 45 days
from the date of this news release.</P>
<P align=center>5</P>
<HR style="PAGE-BREAK-AFTER: always" align=center width="100%" color=black
noShade SIZE=5>
<p>
  <!--$$/page=-->
  <A name=page_7></A></p>
<p>Significant factors affecting the new mineral resource and
reserve estimates include the following:</p>
<UL style="TEXT-ALIGN: justify">
  <LI>the determination that silver mineralization which exists between
  high-grade veins in the upper parts of the deposit becomes less prevalent and
  of uneconomic grade in the lower parts of the deposit;
  <LI>increases in operating cost per tonne of ore from $22.00 to $35.52, which
  include additional waste mining costs, general and country-specific inflation
  over three years and some incremental tailing storage costs.
  <LI>depletion of 18.6 million ounces of silver since the start of production
  in 2009 until September 30, 2011; understanding of processing and cost of
  production following mining through the pit to the sulphide ore which
  commenced in Q3 2010; and
  <LI>the decision to exclude at this time cost credits from the production of
  tin until an economically viable processing method has been designed and
  tested. </LI></UL>
<P align=justify>The 2008 Mineral Resources estimate and the 2011 Mineral Resources estimate have been reported on different bases. The former was reported on a silver-equivalent basis, including the economic benefit of tin. This mineral reserve estimate totaled 195.1 million ounces of silver and 550 million pounds of zinc contained as stated in a NI 43-101 Technical Report, dated September 29, 2008 and filed on SEDAR. The 2011 Mineral Resources estimate uses a 50 g/t silver only cut-off. The 2010 and 2011 drilling has enabled improvement in the Company&rsquo;s interpretation of geological controls on the mineralization and the 2011 mineral resources model has been validated through reconciliation of grade control and mine production data.</P>
<P align=justify>The Company is focused on opportunities for cost reduction,
pursuing the option of dry-stacking of tailings and is investigating processes
for tin recovery which together are expected to bring resources back into
reserves. Extensive &#145;brownfield&#146; exploration is also being conducted on the
property with encouraging results to date. In 2011, the Company&#146;s exploration
team identified two significant silver and zinc-bearing breccia bodies, one that
is currently being mined from the open-pit and another that is located
approximately 200 meters north of the pit in a resource area referred to as
Cortaderas (see Table 2).</P>
<P align=justify>The Company&#146;s exploration efforts will continue in the pursuit
of delineating new mineral resources and reserve on the Pirquitas property.
Metallurgical engineering work will also continue on the development and
implementation of a process to recover the significant tin mineralization found
in the Pirquitas ore.</P>
<P align=justify>Notwithstanding, the Company estimates that the noted changes
to the mine&#146;s mineral resources and reserve estimate, from 2012 onwards
Pirquitas will continue operating for 6.5 years as an 8-10 million ounces per
annum silver producer, with a further 2.5 years of production of approximately 3
million ounces of silver per annum coming from stockpiles. This mine life
estimate is based on $25.00 per ounce silver and $2,403 per tonne of zinc and
could be extended assuming the continuation of current market prices of
approximately $35 per ounce silver.</P>
<P align=justify><b>Exploration Drilling Program</b></P>
<p align=justify>In addition to the comprehensive in-fill drilling program that
  was completed in 2011 in the area of the San Miguel open-pit, the Company
  diamond drilled 1,837 meters at an exploration target located just 200 meters
  north of the pit in the Cortaderas Valley. The main target at Cortaderas
  consists of a steeply plunging breccia body where the breccia matrix is composed
  of silver-bearing iron and zinc sulphide mineralization. To date, nine
  relatively closely spaced drill-holes have intersected the mineralized breccia
  body. The results from this drilling are encouraging, with intercepts from a
  select number of the boreholes being highlighted below in Table 4. Based on the
  drilling completed to date, Dr. Warwick Board, the Company&#146;s Senior Resource
  Geologist and QP, has estimated an Inferred resource for the breccia of 2.0
  million tonnes averaging 152 g/t silver and 5.4% zinc, for approximately 9.9
  million ounces of contained silver, at a 50 g/t silver cut-off grade.
  Sulphide-rich, vein-hosted mineralization has been intersected by drill-holes in
  the vicinity of the above mentioned breccia body and is estimated to contain an
  additional 12.6 million ounces of silver in the Inferred resource category
  (refer to Table 2 for details).</p>
<P align=center>6</P>
<HR style="PAGE-BREAK-AFTER: always" align=center width="100%" color=black
noShade SIZE=5>
<!--$$/page=--><A name=page_8></A>
<P align=justify>&nbsp;</P>
<P style="MARGIN-LEFT: 5%" align=justify>Table 4. Select Drill-hole
Intersections of the Cortaderas Breccia</P>
<DIV align=center>
<TABLE
style="BORDER-COLOR: black; FONT-SIZE: 8pt; BORDER-COLLAPSE: collapse; "
borderColor=#000000 cellSpacing=0 cellPadding=3 width="90%" border=1>

  <TR vAlign=top>
    <TD align=left>Drill-Hole </TD>
    <TD align=center>From (m) </TD>
    <TD align=center>To (m) </TD>
    <TD align=center>Length&#178; (m) </TD>
    <TD align=center>Ag (g/t) </TD>
    <TD align=center>Sn (%) </TD>
    <TD align=center>Zn (%) </TD>
  </TR>
  <TR vAlign=top>
    <TD align=left>&nbsp;</TD>
    <TD align=right>&nbsp;</TD>
    <TD align=right>&nbsp;</TD>
    <TD align=right>&nbsp;</TD>
    <TD align=right>&nbsp;</TD>
    <TD align=right>&nbsp;</TD>
    <TD align=right>&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left>DDH-099 &#179; </TD>
    <TD align=right width="14%">145.0 </TD>
    <TD align=right width="14%">250.0 </TD>
    <TD align=right width="14%">105.0 </TD>
    <TD align=right width="14%">194.3 </TD>
    <TD align=right width="14%">0.17 </TD>
    <TD align=right width="14%">6.17 </TD></TR>
  <TR vAlign=top>
    <TD align=right>including </TD>
    <TD align=right width="14%">177.0 </TD>
    <TD align=right width="14%">219.0 </TD>
    <TD align=right width="14%">42.0 </TD>
    <TD align=right width="14%">371.4 </TD>
    <TD align=right width="14%">0.35 </TD>
    <TD align=right width="14%">9.91 </TD></TR>
  <TR vAlign=top>
    <TD align=left>DDH-167 &#185; </TD>
    <TD align=right width="14%">80.0 </TD>
    <TD align=right width="14%">312.0 </TD>
    <TD align=right width="14%">232.0 </TD>
    <TD align=right width="14%">183.2 </TD>
    <TD align=right width="14%">0.13 </TD>
    <TD align=right width="14%">5.40 </TD></TR>
  <TR vAlign=top>
    <TD align=right>including </TD>
    <TD align=right width="14%">117.0 </TD>
    <TD align=right width="14%">151.3 </TD>
    <TD align=right width="14%">34.3 </TD>
    <TD align=right width="14%">631.5 </TD>
    <TD align=right width="14%">0.17 </TD>
    <TD align=right width="14%">12.08 </TD></TR>
  <TR vAlign=top>
    <TD align=right>and including </TD>
    <TD align=right width="14%">198.0 </TD>
    <TD align=right width="14%">234.0 </TD>
    <TD align=right width="14%">36.0 </TD>
    <TD align=right width="14%">386.1 </TD>
    <TD align=right width="14%">0.30 </TD>
    <TD align=right width="14%">9.02 </TD></TR>
  <TR vAlign=top>
    <TD align=left>DDH-214 &#185; </TD>
    <TD align=right width="14%">156.0 </TD>
    <TD align=right width="14%">374.0 </TD>
    <TD align=right width="14%">218.0 </TD>
    <TD align=right width="14%">477.3 </TD>
    <TD align=right width="14%">0.38 </TD>
    <TD align=right width="14%">7.97 </TD></TR>
  <TR vAlign=top>
    <TD align=right>including </TD>
    <TD align=right width="14%">218.0 </TD>
    <TD align=right width="14%">276.0 </TD>
    <TD align=right width="14%">58.0 </TD>
    <TD align=right width="14%">1,007.7 </TD>
    <TD align=right width="14%">0.39 </TD>
    <TD align=right width="14%">12.83 </TD></TR>
  <TR vAlign=top>
    <TD align=right>and including </TD>
    <TD align=right width="14%">282.0 </TD>
    <TD align=right width="14%">328.0 </TD>
    <TD align=right width="14%">46.0 </TD>
    <TD align=right width="14%">928.3 </TD>
    <TD align=right width="14%">1.03 </TD>
    <TD align=right width="14%">16.15 </TD></TR>
  <TR vAlign=top>
    <TD align=left>DDH-216 &#185; </TD>
    <TD align=right width="14%">257.0 </TD>
    <TD align=right width="14%">421.0 </TD>
    <TD align=right width="14%">164.0 </TD>
    <TD align=right width="14%">59.6 </TD>
    <TD align=right width="14%">0.11 </TD>
    <TD align=right width="14%">3.82 </TD></TR>
  <TR vAlign=top>
    <TD align=right>including </TD>
    <TD align=right width="14%">337.7 </TD>
    <TD align=right width="14%">385.4 </TD>
    <TD align=right width="14%">47.7 </TD>
    <TD align=right width="14%">166.7 </TD>
    <TD align=right width="14%">0.18 </TD>
    <TD align=right width="14%">9.07 </TD></TR>
  <TR vAlign=top>
    <TD align=left>DDH-217 &#185; </TD>
    <TD align=right width="14%">91.0 </TD>
    <TD align=right width="14%">290.0 </TD>
    <TD align=right width="14%">199.0 </TD>
    <TD align=right width="14%">84.2 </TD>
    <TD align=right width="14%">0.06 </TD>
    <TD align=right width="14%">3.19 </TD></TR>
  <TR vAlign=top>
    <TD align=right>including </TD>
    <TD align=right width="14%">120.4 </TD>
    <TD align=right width="14%">128.0 </TD>
    <TD align=right width="14%">7.6 </TD>
    <TD align=right width="14%">552.8 </TD>
    <TD align=right width="14%">0.22 </TD>
    <TD align=right width="14%">4.31 </TD></TR></TABLE>
</DIV>
<P style="MARGIN-LEFT: 5%" align=justify>Notes to Table 4:</P>
<table
style="BORDER-COLOR: black; FONT-SIZE: 10pt; BORDER-COLLAPSE: collapse; "
cellspacing=0 cellpadding=0 width="100%" border=0 bcllist>
  <tr>
    <td  >&nbsp;</td>
    <td valign=top>1.</td>
    <td>Holes are oriented at shallow angles to inferred plunge
      orientation of mineralized breccia body.</td>
  </tr>
  <tr>
    <td  >&nbsp;</td>
    <td valign=top>2. </td>
    <td>Intercepts are not true thicknesses. These are to be
      determined by follow-up drilling.</td>
  </tr>
  <tr>
    <td width="5%"  >&nbsp;</td>
    <td valign=top width="5%">3. </td>
    <td><p align=justify>Hole DDH-099 intersected the breccia body at a high angle
      and ended in mineralization.</p></td>
  </tr>
  <tr>
    <td width="5%" >&nbsp;</td>
    <td valign=top width="5%">4. </td>
    <td><p align=justify>All samples were submitted to ALS Chemex for preparation
      and analysis at its facilities in Mendoza, Argentina. Samples were
      analyzed using a 4-acid digestion and ICP-AES finish for a suite of 35
      elements. Additional tin analyses were performed using the XRF analytical
      technique. Samples containing greater than 200 ppm Ag and/or greater than
      100,000 ppm Zn were re-analyzed using a 4- acid digestion with AAS finish
      for both elements.</p></td>
  </tr>
  <tr>
    <td width="5%" >&nbsp;</td>
    <td valign=top width="5%">5. </td>
    <td><p align=justify>Silver Standard&#146;s QA/QC protocol consists of the regular
      insertion of control standard and blank samples together with the analysis
      of field duplicate samples. Approximately 14% of all samples analyzed
      represent QA/QC samples.</p></td>
  </tr>
  <tr>
    <td width="5%" >&nbsp;</td>
    <td valign=top width="5%">6. </td>
    <td><p align=justify>Dr. Warwick Board, Ph.D. (Geology), P.Geo., is the Senior
      Resource Geologist at Silver Standard Resources Inc. and is the QP who has
      verified the data presented in Table 4.</p></td>
  </tr>
</table>
<p align=justify><b>Financial Results</b></p>
<p align=justify>Our financial results are now reported under International
  Financial Reporting Standards (IFRS) and the 2010 comparative results have been
  restated to IFRS in the current period financial statements. Refer to Note 2 in
  the unaudited September 30, 2011 and March 31, 2011 financial statements for a
  detailed description of our accounting policies under IFRS and for disclosures
  and reconciliation of the impact of IFRS on previously reported results. See
  Notes 17 and 25 in the Financial Statements for the nine months ended September
  30, 2011 and year ended December 31, 2010, respectively.</p>
<P align=center>7</P>
<HR style="PAGE-BREAK-AFTER: always" align=center width="100%" color=black
noShade SIZE=5>
<!--$$/page=--><A name=page_9></A><BR>
<P align=justify><B>Mine Operations</B></P>
<P align=justify>During the third quarter 2011 the Company recorded total
revenues from the Pirquitas mine of $26.2 million from the sale of 0.7 million
ounces of silver at a realized price of $39.88 per ounce, and 3.9 million pounds
of zinc at a realized price of $1.01 per pound excluding the impact of quarter
end price adjustment. This is compared with the third quarter of 2010 which
recorded revenues of $41.6 million from the sale of 2.3 million ounces of silver
at a realized price of $19.43, and no zinc sales. The reduction in sales
recognized is reflective of the volume of silver ounces sold, partially offset
by the significant increase in the price of silver. Zinc pounds sold in the
third quarter of 2011 contributed $2.8 million to total revenues.</P>
<P align=justify>Since the mine&#146;s initial start-up silver concentrates have been
sold pursuant to a sales contract to a single customer. The contract was
terminated during the third quarter 2011 and as a result volumes of silver
concentrate sold were significantly lower than prior quarters. Zinc concentrate
sales were unaffected. Subsequent to the quarter individual spot sales have been
completed, and the Company is continuing negotiations to establish long-term
contracts with various counterparties.</P>
<P align=justify>Cost of sales for the third quarter 2011 was $14.7 million
compared to $34.1 million in the third quarter of 2010. This resulted in income
from mine operations of $11.5 million in the third quarter of 2011 compared to
$7.4 million in the third quarter of 2010. The reduction in cost of sales is
primarily due to the volume of product sold. Margins improved significantly,
primarily as a result of higher silver prices. </P>
<P align=justify>On October 26, 2011 the Argentina government announced a decree
that requires all funds from export sales to be repatriated to Argentina and
converted into Argentina Pesos within the Sole Foreign Exchange Market in
Argentina, and each transfer is subject to a 0.6% transfer tax. </P>
<P align=justify>Although the fiscal stability agreement also includes stability
over foreign exchange controls the government has removed such benefits. The
Company will comply with all laws and regulations, and is in the process of
determining what impact this has on the business.</P>
<p align=justify><b>Net Earnings</b></p>
<p align=justify>Net income for the three months ended September 30, 2011 were
  $21.8 million ($0.27 per share) compared to a net loss of $10.4 million ($0.13
  per share) in the third quarter of 2010. </p>
<p align=justify><b>Liquidity</b></p>
<p align=justify>At September 30, 2011, the Company held $355.9 million in cash
  and cash equivalents and $36.4 million in marketable securities compared to
  $232.3 million and $33.5 million respectively at December 31, 2010. The increase
  in cash for the nine months ended September 30, 2011 was the result of cash
  inflows from operations of $12.9 million, $19.2 million generated from financing
  activities, and $91.5 million from investing activities.</p>
<P align=center>8</P>
<HR style="PAGE-BREAK-AFTER: always" align=center width="100%" color=black
noShade SIZE=5>
<!--$$/page=--><A name=page_10></A>
<P align=justify></P>
<TABLE width="100%" border=0 cellPadding=2
cellSpacing=0
style="BORDER-COLOR: black; FONT-SIZE: 10pt; BORDER-COLLAPSE: collapse; ">
  <TR vAlign=bottom>
    <TD
    align=center
    style="BORDER-LEFT: #000000 1px solid; BORDER-top: #000000 1px solid"><u></u></TD>
    <TD
    align=center style="BORDER-top: #000000 1px solid"><B><U>Selected Financial Data</U></B>&nbsp; </TD>
    <TD
    align=center
    style="BORDER-right: #000000 1px solid; BORDER-top: #000000 1px solid"><u></u></TD>
  </TR>
  <TR vAlign=bottom>
    <TD
    align=center style="BORDER-left: #000000 1px solid"><u></u></TD>
    <TD
    align=center>(US$000&#146;s, except per share amounts)&nbsp; </TD>
    <TD
    align=center style="BORDER-right: #000000 1px solid"><u></u></TD>
  </TR>
  <TR>
    <TD style="BORDER-left: #000000 1px solid"><u></u></TD>
    <TD>&nbsp;</TD>
    <TD style="BORDER-right: #000000 1px solid"><u></u></TD>
  </TR>
  <TR vAlign=top>
    <TD
    align=left bordercolor="#000000" style="BORDER-left: #000000 1px solid"><u></u></TD>
    <TD
    align=left bordercolor="#000000"><P align=justify><I>The Company is now reporting under International
      Financial Reporting Standards (&#147;IFRS&#148;) and the 2010 comparative</I> <I>results have been restated to IFRS in the current period financial
        statements. Refer to Note 2 in the unaudited September 30,</I> <I>2011
          financial statements for a detailed description of our accounting policies
          under IFRS and Note 17 for disclosures and</I> <I>reconciliation of the
            impact of IFRS on previously reported results.</I> </P></TD>
    <TD
    align=left bordercolor="#000000" style="BORDER-right: #000000 1px solid"><u></u></TD>
  </TR>
  <TR>
    <TD
    align=left style="BORDER-left: #000000 1px solid"><u></u></TD>
    <TD
    align=left><P align=justify>&nbsp;</P></TD>
    <TD
    align=left style="BORDER-right: #000000 1px solid"><u></u></TD>
  </TR>
  <TR vAlign=top>
    <TD
    align=left
    style="BORDER-BOTTOM: #000000 1px solid; BORDER-left: #000000 1px solid"><u></u></TD>
    <TD
    align=left style="BORDER-BOTTOM: #000000 1px solid"><P align=justify><I>This summary of selected financial data should be read
      in conjunction with the MD&amp;A of the audited consolidated operating</I> <I>results and financial condition of the Company for the three and nine
        months ended September 30, 2011.</I> </P></TD>
    <TD
    align=left
    style="BORDER-BOTTOM: #000000 1px solid; BORDER-right: #000000 1px solid"><u></u></TD>
  </TR>
</TABLE>
<TABLE
style="BORDER-COLOR: black; FONT-SIZE: 10pt; BORDER-COLLAPSE: collapse; "
cellSpacing=0 cellPadding=0 width="100%" border=0>
  <TR vAlign=top>
    <TD style="BORDER-RIGHT: #000000 1px solid; BORDER-LEFT: #000000 1px solid"
    align=left>&nbsp;</TD>
    <TD width="20%" align=center nowrap><B>Three Months</B> </TD>
    <TD width="20%"
    align=center nowrap style="BORDER-RIGHT: #000000 1px solid; BORDER-LEFT: #000000 1px solid"><B>Three Months</B> </TD>
  </TR>
  <TR vAlign=top>
    <TD style="BORDER-RIGHT: #000000 1px solid; BORDER-LEFT: #000000 1px solid"
    align=left>&nbsp;</TD>
    <TD width="15%" align=center nowrap><B>Ended September</B> </TD>
    <TD width="15%"
    align=center nowrap style="BORDER-RIGHT: #000000 1px solid; BORDER-LEFT: #000000 1px solid"><B>Ended September</B> </TD>
  </TR>
  <TR vAlign=top>
    <TD
    style="BORDER-RIGHT: #000000 1px solid; BORDER-LEFT: #000000 1px solid; BORDER-BOTTOM: #000000 1px solid"
    align=left>&nbsp;</TD>
    <TD width="15%" align=left nowrap style="BORDER-BOTTOM: #000000 1px solid">&nbsp;
      &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp;<B>30, 2011</B> </TD>
    <TD width="15%"
    align=left nowrap
    style="BORDER-RIGHT: #000000 1px solid; BORDER-LEFT: #000000 1px solid; BORDER-BOTTOM: #000000 1px solid">&nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp;
      &nbsp;<B>30, 2010</B> </TD>
  </TR>
  <TR vAlign=top>
    <TD
    style="BORDER-RIGHT: #000000 1px solid; BORDER-LEFT: #000000 1px solid; BORDER-BOTTOM: #000000 1px solid"
    align=left bgColor=#ffffff>Earnings from mine operations </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=center width="15%"
    bgColor=#eeeeee>11,492 </TD>
    <TD
    style="BORDER-RIGHT: #000000 1px solid; BORDER-LEFT: #000000 1px solid; BORDER-BOTTOM: #000000 1px solid"
    align=center width="15%" bgColor=#ffffff>7,426 </TD>
  </TR>
  <TR vAlign=top>
    <TD
    style="BORDER-RIGHT: #000000 1px solid; BORDER-LEFT: #000000 1px solid; BORDER-BOTTOM: #000000 1px solid"
    align=left bgColor=#ffffff>Earnings from operations </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=center width="15%"
    bgColor=#eeeeee>3,066 </TD>
    <TD
    style="BORDER-RIGHT: #000000 1px solid; BORDER-LEFT: #000000 1px solid; BORDER-BOTTOM: #000000 1px solid"
    align=center width="15%" bgColor=#ffffff>1,066 </TD>
  </TR>
  <TR vAlign=top>
    <TD
    style="BORDER-RIGHT: #000000 1px solid; BORDER-LEFT: #000000 1px solid; BORDER-BOTTOM: #000000 1px solid"
    align=left bgColor=#ffffff>Net earnings (loss) for the period </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=center width="15%"
    bgColor=#eeeeee>21,836 </TD>
    <TD
    style="BORDER-RIGHT: #000000 1px solid; BORDER-LEFT: #000000 1px solid; BORDER-BOTTOM: #000000 1px solid"
    align=center width="15%" bgColor=#ffffff>(10,407) </TD>
  </TR>
  <TR vAlign=top>
    <TD
    style="BORDER-RIGHT: #000000 1px solid; BORDER-LEFT: #000000 1px solid; BORDER-BOTTOM: #000000 1px solid"
    align=left bgColor=#ffffff>Basic earnings (loss) per share </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=center width="15%"
    bgColor=#eeeeee>0.27 </TD>
    <TD
    style="BORDER-RIGHT: #000000 1px solid; BORDER-LEFT: #000000 1px solid; BORDER-BOTTOM: #000000 1px solid"
    align=center width="15%" bgColor=#ffffff>(0.13) </TD>
  </TR>
  <TR vAlign=top>
    <TD
    style="BORDER-RIGHT: #000000 1px solid; BORDER-LEFT: #000000 1px solid; BORDER-BOTTOM: #000000 1px solid"
    align=left bgColor=#ffffff>Cash generated (used) in operating activities </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=center width="15%"
    bgColor=#eeeeee>(15,835) </TD>
    <TD
    style="BORDER-RIGHT: #000000 1px solid; BORDER-LEFT: #000000 1px solid; BORDER-BOTTOM: #000000 1px solid"
    align=center width="15%" bgColor=#ffffff>4,918 </TD>
  </TR>
  <TR vAlign=top>
    <TD
    style="BORDER-RIGHT: #000000 1px solid; BORDER-LEFT: #000000 1px solid; BORDER-BOTTOM: #000000 1px solid"
    align=left bgColor=#ffffff>Cash generated by financing activities </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=center width="15%"
    bgColor=#eeeeee>5,760 </TD>
    <TD
    style="BORDER-RIGHT: #000000 1px solid; BORDER-LEFT: #000000 1px solid; BORDER-BOTTOM: #000000 1px solid"
    align=center width="15%" bgColor=#ffffff>915 </TD>
  </TR>
  <TR vAlign=top>
    <TD
    style="BORDER-RIGHT: #000000 1px solid; BORDER-LEFT: #000000 1px solid; BORDER-BOTTOM: #000000 1px solid"
    align=left bgColor=#ffffff>Cash generated by (used in) investing
      activities </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=center width="15%"
    bgColor=#eeeeee>(2,782) </TD>
    <TD
    style="BORDER-RIGHT: #000000 1px solid; BORDER-LEFT: #000000 1px solid; BORDER-BOTTOM: #000000 1px solid"
    align=center width="15%" bgColor=#ffffff>(27,713) </TD>
  </TR>
  <TR>
    <TD style="BORDER-LEFT: #000000 1px solid; BORDER-BOTTOM: #000000 1px solid"
    bgColor=#ffffff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="15%"
      bgColor=#ffffff>&nbsp;</TD>
    <TD
    style="BORDER-RIGHT: #000000 1px solid; BORDER-BOTTOM: #000000 1px solid"
    width="15%" bgColor=#ffffff>&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD
    style="BORDER-RIGHT: #000000 1px solid; BORDER-LEFT: #000000 1px solid; BORDER-BOTTOM: #000000 1px solid"
    align=left bgColor=#ffffff><B>Financial Position</B> </TD>
    <TD width="15%"
    align=center nowrap bgColor=#eeeeee
    style="BORDER-RIGHT: #000000 1px solid; BORDER-LEFT: #000000 1px solid; BORDER-BOTTOM: #000000 1px solid"><B>September 30, 2011</B> </TD>
    <TD width="15%"
    align=center nowrap bgColor=#ffffff
    style="BORDER-RIGHT: #000000 1px solid; BORDER-LEFT: #000000 1px solid; BORDER-BOTTOM: #000000 1px solid"><B>Dec 31, 2010</B> </TD>
  </TR>
  <TR vAlign=top>
    <TD
    style="BORDER-RIGHT: #000000 1px solid; BORDER-LEFT: #000000 1px solid; BORDER-BOTTOM: #000000 1px solid"
    align=left bgColor=#ffffff>Cash and cash equivalents </TD>
    <TD
    style="BORDER-RIGHT: #000000 1px solid; BORDER-LEFT: #000000 1px solid; BORDER-BOTTOM: #000000 1px solid"
    align=center width="15%" bgColor=#eeeeee>355,903 </TD>
    <TD
    style="BORDER-RIGHT: #000000 1px solid; BORDER-LEFT: #000000 1px solid; BORDER-BOTTOM: #000000 1px solid"
    align=center width="15%" bgColor=#ffffff>232,311 </TD>
  </TR>
  <TR vAlign=top>
    <TD
    style="BORDER-RIGHT: #000000 1px solid; BORDER-LEFT: #000000 1px solid; BORDER-BOTTOM: #000000 1px solid"
    align=left bgColor=#ffffff>Current assets &#150; total </TD>
    <TD
    style="BORDER-RIGHT: #000000 1px solid; BORDER-LEFT: #000000 1px solid; BORDER-BOTTOM: #000000 1px solid"
    align=center width="15%" bgColor=#eeeeee>508,455 </TD>
    <TD
    style="BORDER-RIGHT: #000000 1px solid; BORDER-LEFT: #000000 1px solid; BORDER-BOTTOM: #000000 1px solid"
    align=center width="15%" bgColor=#ffffff>342,054 </TD>
  </TR>
  <TR vAlign=top>
    <TD
    style="BORDER-RIGHT: #000000 1px solid; BORDER-LEFT: #000000 1px solid; BORDER-BOTTOM: #000000 1px solid"
    align=left bgColor=#ffffff>Current liabilities &#150; total </TD>
    <TD
    style="BORDER-RIGHT: #000000 1px solid; BORDER-LEFT: #000000 1px solid; BORDER-BOTTOM: #000000 1px solid"
    align=center width="15%" bgColor=#eeeeee>79,828 </TD>
    <TD
    style="BORDER-RIGHT: #000000 1px solid; BORDER-LEFT: #000000 1px solid; BORDER-BOTTOM: #000000 1px solid"
    align=center width="15%" bgColor=#ffffff>35,163 </TD>
  </TR>
  <TR vAlign=top>
    <TD
    style="BORDER-RIGHT: #000000 1px solid; BORDER-LEFT: #000000 1px solid; BORDER-BOTTOM: #000000 1px solid"
    align=left bgColor=#ffffff>Working capital </TD>
    <TD
    style="BORDER-RIGHT: #000000 1px solid; BORDER-LEFT: #000000 1px solid; BORDER-BOTTOM: #000000 1px solid"
    align=center width="15%" bgColor=#eeeeee>428,627 </TD>
    <TD
    style="BORDER-RIGHT: #000000 1px solid; BORDER-LEFT: #000000 1px solid; BORDER-BOTTOM: #000000 1px solid"
    align=center width="15%" bgColor=#ffffff>306,891 </TD>
  </TR>
  <TR vAlign=top>
    <TD
    style="BORDER-RIGHT: #000000 1px solid; BORDER-LEFT: #000000 1px solid; BORDER-BOTTOM: #000000 1px solid"
    align=left bgColor=#ffffff>Total assets </TD>
    <TD
    style="BORDER-RIGHT: #000000 1px solid; BORDER-LEFT: #000000 1px solid; BORDER-BOTTOM: #000000 1px solid"
    align=center width="15%" bgColor=#eeeeee>1,249,570 </TD>
    <TD
    style="BORDER-RIGHT: #000000 1px solid; BORDER-LEFT: #000000 1px solid; BORDER-BOTTOM: #000000 1px solid"
    align=center width="15%" bgColor=#ffffff>1,147,990 </TD>
  </TR>
</TABLE>
<P align=center>&nbsp;</P>
<div>
  <TABLE
style="BORDER-COLOR: black; FONT-SIZE: 10pt; BORDER-COLLAPSE: collapse; "
borderColor=#000000 cellSpacing=0 cellPadding=0 width="100%" border=1>
    <TR vAlign=top>
      <TD align=center bgColor=#ffffff><BR>
          <BR></TD>
      <TD width="20%" align=center nowrap bgColor=#eeeeee><B>Nine Months</B> <BR>
          <B>Ended September</B> <BR>
        <B>30, 2011</B> </TD>
      <TD width="20%" align=center nowrap bgColor=#ffffff><B>Nine Months</B> <BR>
          <B>Ended September</B> <BR>
        <B>30, 2010</B> </TD>
    </TR>
    <TR vAlign=top>
      <TD align=left bgColor=#ffffff>Earnings (loss) from mine operations </TD>
      <TD align=center width="15%" bgColor=#eeeeee>55,189 </TD>
      <TD align=center width="15%" bgColor=#ffffff>(10,841) </TD>
    </TR>
    <TR vAlign=top>
      <TD align=left bgColor=#ffffff>Earnings (loss) from operations </TD>
      <TD align=center width="15%" bgColor=#eeeeee>29,702 </TD>
      <TD align=center width="15%" bgColor=#ffffff>(30,907) </TD>
    </TR>
    <TR vAlign=top>
      <TD align=left bgColor=#ffffff>Net earnings (loss) for the period </TD>
      <TD align=center width="15%" bgColor=#eeeeee>77,545 </TD>
      <TD align=center width="15%" bgColor=#ffffff>(23,169) </TD>
    </TR>
    <TR vAlign=top>
      <TD align=left bgColor=#ffffff>Basic earnings (loss) per share </TD>
      <TD align=center width="15%" bgColor=#eeeeee>0.97 </TD>
      <TD align=center width="15%" bgColor=#ffffff>(0.30) </TD>
    </TR>
    <TR vAlign=top>
      <TD align=left bgColor=#ffffff>Cash generated (used) in operating
        activities </TD>
      <TD align=center width="15%" bgColor=#eeeeee>12,903 </TD>
      <TD align=center width="15%" bgColor=#ffffff>(18,788) </TD>
    </TR>
    <TR vAlign=top>
      <TD align=left bgColor=#ffffff>Cash generated by financing activities </TD>
      <TD align=center width="15%" bgColor=#eeeeee>19,202 </TD>
      <TD align=center width="15%" bgColor=#ffffff>109,589 </TD>
    </TR>
    <TR vAlign=top>
      <TD align=left bgColor=#ffffff>Cash generated by (used in) investing
        activities </TD>
      <TD align=center width="15%" bgColor=#eeeeee>91,487 </TD>
      <TD align=center width="15%" bgColor=#ffffff>(81,621) </TD>
    </TR>
  </TABLE>
</div>
<p align=justify><b>Principal Projects</b></p>
<p align=justify>Pitarrilla, Mexico</p>
<p align=justify>A total of $2.7 million was spent during the quarter at the
  wholly-owned Pitarrilla project located in the state of Durango, Mexico compared
  to $9.8 million in the same quarter of the prior year.</p>
<p align=center>9</p>
<HR style="PAGE-BREAK-AFTER: always" align=center width="100%" color=black
noShade SIZE=5>
<!--$$/page=--><A name=page_11></A><BR>
<P align=justify>On August 10, 2011 the Company committed a total of $25.0
million to accelerate the advancement of the Pitarrilla mining complex. A
feasibility study is scheduled to be completed in the first half of 2012 and if
approved, detailed design and construction will commence thereafter leading to
production in approximately two years. The $25.0 million allows for the purchase
of critical path process equipment and to date work has commenced on access
roads, water wells, and constructing the workers&#146; camp. The Company also
continues to build the management team, notably with the recruitment of a new
general manager. </P>
<P align=justify>A campaign of diamond drilling was also conducted during the
second and third quarters, with 83 boreholes and a total of 13,867 meters being
drilled. This drilling program was designed to provide in-fill assay data for an
enhanced estimate of the project&#146;s &#145;oxide&#146; silver resource as well as
geotechnical and metallurgical information that will be used for mine design and
optimization.</P>
<P align=justify>The Pitarrilla project currently comprises Probable mineral
reserves of 91.7 million ounces of silver, Measured and Indicated resources of
551.6 million ounces of silver and Inferred resources of 82.2 million ounces of
silver. </P>
<P align=justify>San Luis, Peru</P>
<P align=justify>A total of $1.3 million was spent during the quarter at the now
wholly-owned San Luis project in Peru compared to $1.2 million in the same
quarter of the prior year. On July 28, 2011, the Company completed the
previously announced agreement, and acquired the remaining 30% interest in the
San Luis project from the Company&#146;s former joint venture partner, Esperanza
Resources Corp. (&#147;Esperanza&#148;). Under the terms of the agreement, the Company
paid $17.9 million in cash, transferred to Esperanza the 6.459 million shares of
Esperanza that the Company owned, and granted to Esperanza a 1% net smelter
return royalty on future revenues earned from the project.</P>
<P align=justify> Long-term land access negotiations advanced with two local
  communities and work also continued on completing the required Environmental
  Impact Study (&#147;EIS&#148;). The completion of the land access agreements and the EIS
  will enable a construction decision to be made, which is expected to happen
  during 2012. </P>
<p align=justify>During the quarter mineral prospecting on the property resulted
  in the discovery of a set of northwesterly trending quartz veins which were
  tested for their precious metal content with the collection of 265 rock-chip
  samples. Assay results for these samples indicate sections of these veins are
  significantly mineralized with gold and require further assessment by diamond
  drilling.</p>
<p align=justify>The San Luis project comprises Proven and Probable mineral
  reserves of 7.2 million ounces of silver and 0.29 million ounces of gold. These
  reserves are 100% attributable to the Company as of July 28, 2011, following its
  consolidation of ownership. </p>
<p align=justify>Nazas, Mexico</p>
<p align=justify>A total of $1.6 million was spent during the quarter at the
  Company&#146;s Nazas project, compared to $0.2 million during the same quarter of the
prior year. </p>
<p align=justify>Nazas, which until recently comprised three contiguous mineral
  properties covering approximately 236 square kilometers, is centered about 16
  kilometers east of the Pitarrilla project and covers an extensive system of
  gold- and silver-bearing quartz veins and related hydrothermal alteration.
  Several of these vein targets have now been tested, with approximately 4,187
  meters being drilled in the third quarter for a total of 12,587 meters coming
  from 22 boreholes. </p>
<P align=center>10</P>
<HR style="PAGE-BREAK-AFTER: always" align=center width="100%" color=black
noShade SIZE=5>
<!--$$/page=--><A name=page_12></A>
<P align=justify>Subsequent to the quarter end, the Company elected not to
continue its option to purchase the Navidad claim group at the center of the
Nazas project area due to the fact that assay results from boreholes drilled on
the claims were insufficiently positive to justify the costs to maintain the
option to purchase agreement with the owner of the claims. Notwithstanding our
decision on the Navidad property, the geological information provided by this
year&#146;s drilling campaign will be utilized in the planning of future drilling on
the other two Nazas properties which are wholly owned by the Company. Our goal
at Nazas continues to be the discovery of precious metal-rich polymetallic
mineralization.</P>
<P align=justify>Diablillos, Argentina</P>
<P align=justify>A total of $0.7 million was spent during the quarter at the
Company&#146;s wholly-owned Diablillos project (which is located 275 kilometers south
of the Pirquitas mine in northwestern Argentina) compared to $0.7 million in the
same quarter of the prior year. </P>
<P align=justify>Expenditures for the quarter include administrative, property
taxes and camp maintenance costs. Fieldwork in the quarter mainly comprised rock
sampling to identify satellite zones of near-surface oxidized gold
mineralization that would complement the resources defined in the main Oculto
silver-gold deposit. A number of prospects were identified for follow-up
mechanized trenching and additional sampling, and depending on the results of
this work which will be completed in the fourth quarter, several of these
targets are expected to be drilled next year with shallow boreholes.</P>
<P align=justify>The Oculto deposit at the Diablillos project has a Indicated
  mineral resource that contains 77.1 million ounces of silver and 0.64 million
  ounces of gold, with additional Inferred resources containing 6.3 million ounces
  of silver and 0.19 million ounces of gold. </P>
<p align=justify>San Agustin, Mexico</p>
<p align=justify>A total of $0.2 million was spent during the quarter at the
  Company&#146;s wholly-owned San Agustin project located in Durango State, Mexico
  compared to the $0.5 million spent in the same quarter of the prior year. Most
  of the third quarter expenditure was incurred as property holding costs and
  other administrative expenses.</p>
<p align=justify>Advanced negotiations were conducted during the quarter with
  three parties that control the property surface rights. Once land access
  agreements are in place, a 5,000 meter-long diamond drilling program will be
  initiated, likely in the first quarter of 2012. The objective of the drilling
  program will be to expand the near-surface oxidized gold resource. In addition
  to the proposed program of in-fill drilling, detailed metallurgical studies will
  also be undertaken and will focus on gold recovery characteristics of the oxide
  gold mineralization. </p>
<p align=justify>The San Agustin project currently comprises an Indicated
  mineral resource of 47.8 million ounces of silver and 1.59 million ounces of
  gold, along with an Inferred resource of 36.9 million ounces of silver and 1.06
  million ounces of gold. </p>
<P align=center>11</P>
<HR style="PAGE-BREAK-AFTER: always" align=center width="100%" color=black
noShade SIZE=5>
<!--$$/page=--><A name=page_13></A>
<P align=justify><B>Management&#146;s Discussion &amp; Analysis and Conference
Call</B></P>
<P align=justify>This news release should be read in conjunction with Silver
Standard&#146;s third quarter 2011 Financial Statements and Management&#146;s Discussion
and Analysis filed with Canadian securities regulators available at <U><font color="#0000FF">www.sedar.com</font></U>, with United States Securities Regulators available at <U><font color="#0000FF">www.sec.gov</font></U>, and the company&#146;s web site at <U><font color="#0000FF">www.silverstandard.com</font></U>.</P>
<ul>
  <li>Conference Call and Webcast: Thursday, November 10, 2011, at
    11:00 p.m. Eastern Time.</li>
</ul>
<TABLE
style="BORDER-COLOR: black; FONT-SIZE: 10pt; BORDER-COLLAPSE: collapse; "
cellSpacing=0 cellPadding=0 width="100%" border=0>
  <TR vAlign=top>
    <TD width="5%" align=left >&nbsp;</TD>
    <TD align=left >Toll-free in North America: </TD>
    <TD align=left width="75%">(888) 429-4600 </TD>
  </TR>
  <TR vAlign=top>
    <TD align=left >&nbsp;</TD>
    <TD align=left >All other callers: </TD>
    <TD align=left width="75%">(970) 315-0481 </TD>
  </TR>
  <TR vAlign=top>
    <TD align=left >&nbsp;</TD>
    <TD align=left >Webcast: </TD>
    <TD align=left width="75%"><U><font color="#0000FF">http://ir.silverstandard.com/events.cfm</font></U> </TD>
  </TR>
</TABLE>
<ul>
  <li>The call will be archived and available at <U><font color="#0000FF">www.silverstandard.com</font> </U>after November 11, 2011. Audio replay will be
    available for one week by calling:</li>
</ul>
<TABLE
style="BORDER-COLOR: black; FONT-SIZE: 10pt; BORDER-COLLAPSE: collapse; "
cellSpacing=0 cellPadding=0 width="100%" border=0>
  <TR vAlign=top>
    <TD width="5%" align=left >&nbsp;</TD>
    <TD align=left >Toll-free in North America: </TD>
    <TD align=left width="75%">(855) 859-2056, replay conference ID 20937226 </TD>
  </TR>
  <TR vAlign=top>
    <TD align=left >&nbsp;</TD>
    <TD align=left >All other callers: </TD>
    <TD align=left width="75%">(404) 537-3406, replay conference ID 20937226 </TD>
  </TR>
</TABLE>
<BR>
<TABLE
style="BORDER-COLOR: black; FONT-SIZE: 10pt; BORDER-COLLAPSE: collapse; "
cellSpacing=0 cellPadding=0 width="100%" border=0>
  <TR vAlign=top>
    <TD align=left>For further information contact: </TD>
  </TR>
  <TR>
    <TD>&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left>Ian Chadsey </TD>
  </TR>
  <TR vAlign=top>
    <TD align=left>Director Investor Relations </TD>
  </TR>
  <TR vAlign=top>
    <TD align=left>N.A. toll-free: (888) 338-0046 </TD>
  </TR>
  <TR vAlign=top>
    <TD align=left>Telephone: (604) 484-8216 </TD>
  </TR>
  <TR vAlign=top>
    <TD align=left>E-Mail: <U><font color="#0000FF">invest@silverstandard.com</font></U> </TD>
  </TR>
</TABLE>
<P align=left><B><I>Cautionary Statements on Forward Looking
Information:</I></B></P>
<p align=justify>The news release contains &#147;forward-looking statements&#148; within
  the meaning of the United States Private Securities Litigation Reform Act of
  1995 and &#147;forward looking information&#148; within Canadian securities laws
  (collectively &#147;forward looking statements&#148;) related to the Company and its
  operations, and in particular, 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.
  Statements concerning mineral resources and reserve 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 and when the
  property is developed or further developed. 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. These forward
  looking statements relate to, among other things: future production of silver
  and other metals; future cash costs per ounce of silver; the price of silver and
  other metals; the effects of laws, regulations and government policies affecting
  our operations or potential future operations; future successful development of
  our San Luis and Pitarrilla projects and other development projects; the
  sufficiency of the Company&#146;s current working capital, anticipated operating cash
  flow or our ability to raise necessary funds; estimated production rates for
  silver and other payable metal produced by the Company; timing of production and
  the cash and total costs of production at our Pirquitas mine; the estimated cost
  of sustaining capital; ongoing or future development plans and capital
  replacement, improvement or remediation programs; the estimates of expected or
  anticipated economic returns from the Company&#146;s mining projects including:
  future sales of the metals, concentrates or other products produced by the
  Company; and the Company&#146;s plans and expectations for its properties and
  operations</p>
<P align=center>12</P>
<HR style="PAGE-BREAK-AFTER: always" align=center width="100%" color=black
noShade SIZE=5>
<!--$$/page=--><A name=page_14></A>
<P align=justify>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: uncertainty of production and cost estimates for the Pirquitas Mine;
uncertainty of development or production at our mineral exploration properties;
risks and uncertainties associated with new mining operations, including
start-up delays and operational issues; risks and hazards associated with the
business of mineral exploration, development and mining (including environmental
hazards, industrial accidents, unusual or unexpected geological or structure
formations, pressures, cave-ins and flooding); risks and uncertainties relating
to the mineral resources and reserve estimates and related assumptions and the
interpretation of drill results and the geology, grade and continuity of our
mineral deposits; unpredictable risks and hazards related to the development and
operation of a mine or mine property that are beyond our control; risks related
to our ability to obtain adequate financing for our planned development
activities and to complete further exploration programs; fluctuations in spot
and forward markets for silver, gold and base metals and certain other
commodities; our history of losses and the potential for future losses; risks
related to general economic conditions, including recent market and world events
and conditions; inadequate insurance, or inability to obtain insurance, to cover
these risks and hazards; relationships with and claims by local communities and
indigenous populations; diminishing quantities or grades of mineral reserves as
properties are mined; challenges to, or difficulty maintaining, the Company&#146;s
title to properties and continued ownership thereof; risks related to our
covenants given with respect to our 4.5% convertible senior notes due 2028;
differences in U.S. and Canadian practices for reporting mineral resources and
reserve; changes in national and local legislation, taxation, controls or
regulations and political or economic developments or changes in Canada, the
United States, Argentina, Mexico, Peru or other countries where the Company
holds assets or may carry on business; risks related to the delay in obtaining
or failure to obtain required permits, or non-compliance with permits we have
obtained; increased costs and restrictions on operations due to compliance with
environmental laws and regulations; regulations and pending legislation
governing issues involving climate change, as well as the physical impacts of
climate change; risks related to reclamation activities on our properties;
uncertainties related to title to our mineral properties and the surface rights
thereon; our ability to successfully acquire additional commercially mineable
mineral rights; risks related to currency fluctuations (such as the Argentine
peso, Peruvian sol and Mexican peso); increased costs affecting the mining
industry, including the current high rate of inflation in Argentina; increased
competition in the mining industry for properties, qualified personnel and
management; risks related to some of our directors&#146; and officers&#146; involvement
with other natural resource companies; our ability to attract and retain
qualified management to grow our business; risks related to estimates of future
income tax assets and liabilities; risks related to claims and legal
proceedings; our ability to maintain adequate internal control over financial
reporting; our ability to monetize the full value of our interest in Pretium
Resources and those factors identified under the heading &#147;Risk Factors&#148; in the
Company&#146;s most recent Form 20-F and Annual Information Form filed with the
United States Securities and Exchange Commission (the &#147;SEC&#148;) and Canadian and
Provincial securities regulatory authorities.</P>
<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 news
release. 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>Cautionary note to U.S. investors: The terms &#147;measured mineral
resource&#148;, &#147;indicated mineral resource&#148;, and &#147;inferred mineral resource&#148; used in
this news release are Canadian geological and mining terms as defined in
accordance with National Instrument 43-101, Standards of Disclosure for Mineral
Projects (&#147;NI 43-101&#148;) under the guidelines set out in the Canadian Institute of
Mining, Metallurgy and Petroleum (the &#147;CIM&#148;) Standards on Mineral Resources and
Mineral Reserves. We advise U.S. investors that while such terms are recognized
and required under Canadian regulations, the SEC does not recognize these terms.
&#147;Inferred mineral resources&#148; in particular have a great amount of uncertainty as
to their economic feasibility. It cannot be assumed that all or any part of an
inferred mineral resource will ever be upgraded to a higher category. Under
Canadian rules estimates of inferred mineral resources may not generally form
the basis of feasibility or other economic studies. U.S. investors are cautioned
not to assume that any part or all of an inferred mineral resource exists, or is
economically or legally mineable. Disclosure of contained metal expressed in
ounces is in compliance with NI 43-101, but does not meet the requirements of
Industry Guide 7 of the SEC, which will only accept the disclosure of tonnage
and grade estimates for non-reserve mineralization.</P>
<P align=center>13</P>
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