<SEC-DOCUMENT>0001062993-12-000827.txt : 20120312
<SEC-HEADER>0001062993-12-000827.hdr.sgml : 20120310
<ACCEPTANCE-DATETIME>20120312171916
ACCESSION NUMBER:		0001062993-12-000827
CONFORMED SUBMISSION TYPE:	6-K
PUBLIC DOCUMENT COUNT:		8
CONFORMED PERIOD OF REPORT:	20111231
FILED AS OF DATE:		20120312
DATE AS OF CHANGE:		20120312

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:	001-35455
		FILM NUMBER:		12684961

	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>March 12, 2012</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">Annual Consolidated financial
      statements for the Year Ended December 31, 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="exhibit99-2.htm">99.2</a></td>
    <td bgcolor="#EEEEEE"><a href="exhibit99-2.htm">Management&#146;s Discussion
      and Analysis for the Year Ended December 31, 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="exhibit99-3.htm">99.3</a></td>
    <td bgcolor="#EEEEEE"><a href="exhibit99-3.htm">Form 13-502F1 - Class 1 Reporting
      Issuers - Participation Fee</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">News Release Dated March 12,
      2012 </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 Dated March
      9, 2012</a></td>
  </tr>
</table>
<p>&nbsp;</p>

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

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

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

<table style="font-size: 10pt;" width="100%" border="0" cellspacing="0" cellpadding="0">
  <tr>
    <td width="50%" valign="top">&nbsp;</td>
    <td colspan="2" valign="top"><b>Silver Standard Resources Inc.</b></td>
  </tr>
  <tr>
    <td valign="top">&nbsp;</td>
    <td colspan="2" valign="top">(Registrant)</td>
  </tr>
  <tr>
    <td valign="top">&nbsp;</td>
    <td valign="top">&nbsp;</td>
    <td>&nbsp;</td>
  </tr>
  <tr>
    <td valign="top">Date: March 12, 2012</td>
    <td valign="top">By:</td>
    <td style="BORDER-BOTTOM: #000000 1px solid"><I>/s/ Kristen Riddell</I></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>

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</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-99.1
<SEQUENCE>2
<FILENAME>exhibit99-1.htm
<DESCRIPTION>ANNUAL CONSOLIDATED 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">
<A name=page_1></A>
<P align=justify><B><FONT size=5>Silver Standard Resources Inc. </FONT></B></P>
<P align=justify><FONT size=3>Consolidated Financial Statements
</FONT><BR><B><FONT size=3>December 31, 2011 and 2010 and January 1, 2010
</FONT></B></P>
<P align=justify>&nbsp;</P>
<P align=justify>&nbsp;</P>
<P align=justify>&nbsp;</P>
<HR style="PAGE-BREAK-AFTER: always" align=center color=black SIZE=5
width="100%" noShade>
<A name=page_2></A>
<P align=justify><B>Management&#146;s Responsibility for the Financial
Statements</B></P>
<P align=justify>The preparation and presentation of the accompanying
consolidated financial statements and Management&#146;s Discussion and Analysis
(&#147;MD&amp;A&#148;) are the responsibility of management and have been approved by the
Board of Directors.</P>
<P align=justify>The consolidated financial statements have been prepared in
accordance with International Financial Reporting Standards as issued by the
International Accounting Standards Board. Financial statements, by nature, are
not precise since they include certain amounts based upon estimates and
judgements. When alternative methods exist, management has chosen those it deems
to be the most appropriate in the circumstances.</P>
<P align=justify>Management, under the supervision of and the participation of
the President and Chief Executive Officer and the Chief Financial Officer, has a
process in place to evaluate disclosure controls and procedures and internal
control over financial reporting as required by Canadian and U.S. securities
regulations. We, as President and Chief Executive Officer and as Chief Financial
Officer, will certify our annual filings with the CSA and SEC as required in
Canada by National Instrument 52-109 and in the United States as required by the
Sarbanes-Oxley Act of 2002.</P>
<P align=justify>The Board of Directors is responsible for ensuring that
management fulfills its responsibilities for financial reporting and is
ultimately responsible for reviewing and approving the consolidated financial
statements. The Board carries out this responsibility principally through its
Audit Committee which is independent from management.</P>
<P align=justify>The Audit Committee is appointed by the Board of Directors and
reviews the consolidated financial statements and MD&amp;A; considers the report
of the external auditors; assesses the adequacy of our internal controls,
including management&#146;s assessment described below; examines the fees and
expenses for audit services; and recommends to the Board the independent
auditors for appointment by the shareholders. The independent auditors have full
and free access to the Audit Committee and meet with it to discuss their audit
work, our internal control over financial reporting and financial reporting
matters. The Audit Committee reports its findings to the Board for consideration
when approving the consolidated financial statements for issuance to the
shareholders and management&#146;s assessment of the internal control over financial
reporting.</P>
<P align=justify><B>Management&#146;s Report on Internal Control over Financial
Reporting</B></P>
<P align=justify>Management is responsible for establishing and maintaining
adequate internal control over financial reporting. Management has assessed the
effectiveness of our internal control over financial reporting as of December
31, 2011 using criteria established in <I>Internal Control &#150; Integrated
Framework</I> issued by the Committee of Sponsoring Organizations of the
Treadway Commission. Based on this evaluation, management concluded that our
internal control over financial reporting was effective as of December 31,
2011.</P>
<P align=justify>PricewaterhouseCoopers LLP, our auditor, has audited the
effectiveness of our internal control over financial reporting as of December
31, 2011, as stated in their report which appears herein.</P>
<TABLE
style="BORDER-COLOR: black; BORDER-COLLAPSE: collapse; FONT-SIZE: 10pt; "
border=0 cellSpacing=0 cellPadding=0 width="100%">

  <TR vAlign=top>
    <TD align=left><I>&#147;John Smith&#148;</I> </TD>
    <TD width="30%" align=left ><I>&#147;Gregory Martin&#148;</I> </TD></TR>
  <TR vAlign=top>
    <TD align=left>John Smith </TD>
    <TD width="30%" align=left >Gregory Martin </TD></TR>
  <TR vAlign=top>
    <TD align=left>President and Chief Executive Officer </TD>
    <TD width="30%" align=left >Chief Financial Officer </TD></TR>
  <TR>
    <TD>&nbsp; </TD>
    <TD width="30%" >&nbsp; </TD></TR>
  <TR vAlign=top>
    <TD align=left>March 11, 2012 </TD>
    <TD width="30%" align=left >&nbsp; </TD></TR></TABLE><BR>
<TABLE
style="BORDER-COLOR: black; BORDER-COLLAPSE: collapse; FONT-SIZE: 10pt; "
border=0 cellSpacing=0 cellPadding=0 width="100%">

  <TR vAlign=top>
    <TD style="BORDER-TOP: #000000 1px solid" align=right>2 | <FONT
      color=#7e7e7e>P a g e</FONT> </TD></TR></TABLE><BR>
<HR style="PAGE-BREAK-AFTER: always" align=center color=black SIZE=5
width="100%" noShade>
<A name=page_3></A>
<P align=justify>March 11, 2012 </P>
<P align=justify><B>Independent Auditor&#146;s Report </B></P>
<P align=justify><B>To the Shareholders of Silver Standard Resources Inc.
</B></P>
<P align=justify>We have completed an integrated audit of Silver Standard
Resources Inc.&#146;s and its subsidiaries (the &#147;Company&#148;) December 31, 2011
consolidated financial statements and their internal control over financial
reporting as at December 31, 2011 and an audit of their December 31, 2010
consolidated financial statements. Our opinions, based on our audits, are
presented below. </P>
<P align=justify><B>Report on the consolidated financial statements<BR></B>We
have audited the accompanying consolidated financial statements of Silver
Standard Resources Inc. and its subsidiaries, which comprise the consolidated
statement of financial position as at December 31, 2011, 2010 and January 1,
2010 and the consolidated statements of income, comprehensive income, changes in
shareholders&#146; equity and cash flows and for the years ended December 31, 2011
and 2010, and the related notes, which comprise a summary of significant
accounting policies and other explanatory information.</P>
<P align=justify><B>Management&#146;s responsibility for the consolidated financial
statements <BR></B>Management is responsible for the preparation and fair
presentation of these consolidated financial statements in accordance with
International Financial Reporting Standards as issued by the International
Accounting Standards Board<B> </B>and for such internal control as management
determines is necessary to enable the preparation of consolidated financial
statements that are free from material misstatement, whether due to fraud or
error. </P>
<P align=justify><B>Auditor&#146;s responsibility <BR></B>Our responsibility is to
express an opinion on these consolidated financial statements based on our
audits. We conducted our audits in accordance with Canadian generally accepted
auditing standards and the standards of the Public Company Accounting Oversight
Board (United States). Those standards require that we plan and perform an audit
to obtain reasonable assurance about whether the consolidated financial
statements are free from material misstatement. Canadian generally accepted
auditing standards require that we comply with ethical requirements. </P>
<P align=justify>An audit involves performing procedures to obtain audit
evidence, on a test basis, about the amounts and disclosures in the consolidated
financial statements. The procedures selected depend on the auditor&#146;s judgment,
including the assessment of the risks of material misstatement of the
consolidated financial statements, whether due to fraud or error. In making
those risk assessments, the auditor considers internal control relevant to the
Company&#146;s preparation and fair presentation of the consolidated financial
statements in order to design audit procedures that are appropriate in the
circumstances. An audit also includes evaluating the appropriateness of
accounting principles and policies used and the reasonableness of accounting
estimates made by management, as well as evaluating the overall presentation of
the consolidated financial statements. </P>
<P align=justify>We believe that the audit evidence we have obtained in our
audits is sufficient and appropriate to provide a basis for our audit opinion on
the consolidated financial statements. </P>
<P align=justify><B>Opinion <BR></B>In our opinion, the consolidated financial
statements present fairly, in all material respects, the financial position of
Silver Standard Resources Inc. and its subsidiaries as at December 31, 2011,
2010 and January 1, 2010 and their financial performance and their cash flows
for the years ended December 31, 2011 and 2010 in accordance with International
Financial Reporting Standards as issued by the International Accounting
Standards Board. </P>
<P align=justify><B>Report on internal control over financial reporting <BR>
  </B>We have also audited Silver Standard Resources Inc.&#146;s and its subsidiaries&#146;
  internal control over financial reporting as at December 31, 2011, based on
  criteria established in Internal Control - Integrated Framework, issued by the
  Committee of Sponsoring Organizations of the Treadway Commission (COSO). <BR>
</P>
<TABLE
style="BORDER-COLOR: black; BORDER-COLLAPSE: collapse; FONT-SIZE: 10pt; "
border=0 cellSpacing=0 cellPadding=0 width="100%">
  <TR vAlign=top>
    <TD style="BORDER-TOP: #000000 1px solid" align=right>3 | <FONT
      color=#7e7e7e>P a g e</FONT> </TD>
  </TR>
</TABLE>
<HR style="PAGE-BREAK-AFTER: always" align=center color=black SIZE=5
width="100%" noShade>
<A name=page_4></A>
<P align=justify><B>Management&#146;s responsibility for internal control over
financial reporting <BR></B>Management is responsible for maintaining effective
internal control over financial reporting and for its assessment of the
effectiveness of internal control over financial reporting included in
Management&#146;s Report on Internal Control over Financial Reporting.</P>
<P align=justify><B>Auditor&#146;s responsibility <BR></B>Our responsibility is to
express an opinion on the Company&#146;s internal control over financial reporting
based on our audit. We conducted our audit of internal control over financial
reporting in accordance with the standards of the Public Company Accounting
Oversight Board (United States). Those standards require that we plan and
perform the audit to obtain reasonable assurance about whether effective
internal control over financial reporting was maintained in all material
respects. </P>
<P align=justify>An audit of internal control over financial reporting includes
obtaining an understanding of internal control over financial reporting,
assessing the risk that a material weakness exists, testing and evaluating the
design and operating effectiveness of internal control, based on the assessed
risk, and performing such other procedures as we consider necessary in the
circumstances. </P>
<P align=justify>We believe that our audit provides a reasonable basis for our
audit opinion on the Company&#146;s internal control over financial reporting. </P>
<P align=justify><B>Definition of internal control over financial reporting
<BR></B>A company&#146;s internal control over financial reporting is a process
designed to provide reasonable assurance regarding the reliability of financial
reporting and the preparation of financial statements for external purposes in
accordance with generally accepted accounting principles. A company&#146;s internal
control over financial reporting includes those policies and procedures that:
(i) pertain to the maintenance of records that, in reasonable detail, accurately
and fairly reflect the transactions and dispositions of the assets of the
Company; (ii) provide reasonable assurance that transactions are recorded as
necessary to permit preparation of financial statements in accordance with
generally accepted accounting principles, and that receipts and expenditures of
the Company are being made only in accordance with authorizations of management
and directors of the Company; and (iii) provide reasonable assurance regarding
prevention or timely detection of unauthorized acquisition, use, or disposition
of the Company&#146;s assets that could have a material effect on the financial
statements. </P>
<P align=justify><B>Inherent limitations <BR></B>Because of its inherent
limitations, internal control over financial reporting may not prevent or detect
misstatements. Also, projections of any evaluation of effectiveness to future
periods are subject to the risk that controls may become inadequate because of
changes in conditions or that the degree of compliance with the policies or
procedures may deteriorate. </P>
<P align=justify><B>Opinion <BR></B>In our opinion, Silver Standard Resources
Inc. and its subsidiaries maintained, in all material respects, effective
internal control over financial reporting as at December 31, 2011, based on
criteria established in Internal Control - Integrated Framework issued by COSO.
</P>
<P align=justify><I>Signed &#147;PricewaterhouseCoopers LLP&#148; <BR></I></P>
<P align=justify><B>Chartered Accountants</B> </P>
<P align=justify>Vancouver, Canada</P>
<TABLE
style="BORDER-COLOR: black; BORDER-COLLAPSE: collapse; FONT-SIZE: 10pt; "
border=0 cellSpacing=0 cellPadding=0 width="100%">
  <TR vAlign=top>
    <TD style="BORDER-TOP: #000000 1px solid" align=right>4 | <FONT
      color=#7e7e7e>P a g e</FONT> </TD>
  </TR>
</TABLE>
<HR style="PAGE-BREAK-AFTER: always" align=center color=black SIZE=5
width="100%" noShade>
<A name=page_5></A><BR>
<TABLE
style="BORDER-COLOR: black; BORDER-COLLAPSE: collapse; FONT-SIZE: 10pt; "
border=0 cellSpacing=0 cellPadding=0 width="100%">

  <TR vAlign=top>
    <TD align=left><B><FONT size=4>Silver Standard Resources Inc.
    </FONT></B></TD></TR>
  <TR vAlign=top>
    <TD align=left><FONT size=3>Consolidated Financial Statements
</FONT></TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left><FONT
      size=3>December 31, 2011 and 2010 and January 1, 2010
</FONT></TD></TR></TABLE>
<P align=justify>CONTENTS </P>
<TABLE
style="BORDER-COLOR: black; BORDER-COLLAPSE: collapse; FONT-SIZE: 10pt; "
border=0 cellSpacing=0 cellPadding=0 width="100%">

  <TR vAlign=top>
    <TD width="5%" >&nbsp;</TD>
    <TD bgColor=#eeeeee align=left><B>Primary financial statements </B></TD></TR>
  <TR>
    <TD width="5%">&nbsp;</TD>
    <TD>&nbsp; </TD></TR>
  <TR vAlign=top>
    <TD width="5%">&nbsp;</TD>
    <TD bgColor=#eeeeee align=left><A href="#page_6">Consolidated Statements
      of Financial Position </A></TD></TR>
  <TR vAlign=top>
    <TD width="5%">&nbsp;</TD>
    <TD align=left><A href="#page_7">Consolidated Statements of Income
  </A></TD></TR>
  <TR vAlign=top>
    <TD width="5%">&nbsp;</TD>
    <TD bgColor=#eeeeee align=left><A href="#page_8">Consolidated Statements
      of Comprehensive Income </A></TD></TR>
  <TR vAlign=top>
    <TD width="5%">&nbsp;</TD>
    <TD align=left><A href="#page_9">Consolidated Statements of Changes in
      Shareholders&#146; Equity </A></TD></TR>
  <TR vAlign=top>
    <TD width="5%">&nbsp;</TD>
    <TD bgColor=#eeeeee align=left><A href="#page_10">Consolidated Statements
      of Cash Flows </A></TD></TR>
  <TR>
    <TD width="5%">&nbsp;</TD>
    <TD>&nbsp; </TD></TR>
  <TR>
    <TD width="5%">&nbsp;</TD>
    <TD bgColor=#eeeeee><A href="#page_11"><B>Notes to consolidated financial
      statements </B></A></TD></TR>
  <TR>
    <TD width="5%">&nbsp;</TD>
    <TD>&nbsp; </TD></TR>
  <TR vAlign=top>
    <TD width="5%">&nbsp;</TD>
    <TD bgColor=#eeeeee align=left><A href="#page_11">Note 1 &#150; Nature of
      operations </A></TD></TR>
  <TR vAlign=top>
    <TD width="5%">&nbsp;</TD>
    <TD align=left><A href="#page_11">Note 2 &#150; Summary of significant
      accounting policies </A></TD></TR>
  <TR>
    <TD width="5%">&nbsp;</TD>
    <TD bgColor=#eeeeee>&nbsp; </TD></TR>
  <TR vAlign=top>
    <TD width="5%">&nbsp;</TD>
    <TD align=left><B>Statement of Financial Position </B></TD></TR>
  <TR vAlign=top>
    <TD width="5%">&nbsp;</TD>
    <TD bgColor=#eeeeee align=left><A href="#page_27">Note 3 &#150; Cash and cash
      equivalents </A></TD></TR>
  <TR vAlign=top>
    <TD width="5%">&nbsp;</TD>
    <TD align=left><A href="#page_27">Note 4 &#150; Trade and other receivables
    </A></TD></TR>
  <TR vAlign=top>
    <TD width="5%">&nbsp;</TD>
    <TD bgColor=#eeeeee align=left><A href="#page_28">Note 5 &#150; Other assets
      </A></TD></TR>
  <TR vAlign=top>
    <TD width="5%">&nbsp;</TD>
    <TD align=left><A href="#page_30">Note 6 &#150; Inventory </A></TD></TR>
  <TR vAlign=top>
    <TD width="5%">&nbsp;</TD>
    <TD bgColor=#eeeeee align=left><A href="#page_31">Note 7 &#150; Property, plant
      and equipment </A></TD></TR>
  <TR vAlign=top>
    <TD width="5%">&nbsp;</TD>
    <TD align=left><A href="#page_33">Note 8 &#150; Investment in associate
  </A></TD></TR>
  <TR vAlign=top>
    <TD width="5%">&nbsp;</TD>
    <TD bgColor=#eeeeee align=left><A href="#page_35">Note 9 &#150; Current and
      deferred income tax </A></TD></TR>
  <TR vAlign=top>
    <TD width="5%">&nbsp;</TD>
    <TD align=left><A href="#page_38">Note 10 &#150; Value added tax receivable
    </A></TD></TR></TABLE>
<TABLE
style="BORDER-COLOR: black; BORDER-COLLAPSE: collapse; FONT-SIZE: 10pt; "
border=0 cellSpacing=0 cellPadding=0 width="100%">

  <TR vAlign=top>
    <TD width="5%" >&nbsp;</TD>
    <TD bgColor=#eeeeee align=left><A href="#page_39">Note 11 &#150; Trade and
      other payables </A></TD></TR>
  <TR vAlign=top>
    <TD width="5%">&nbsp;</TD>
    <TD align=left><A href="#page_39">Note 12 &#150; Warrant liability </A></TD></TR>
  <TR vAlign=top>
    <TD width="5%">&nbsp;</TD>
    <TD bgColor=#eeeeee align=left><A href="#page_39">Note 13 &#150; Close down and
      restoration provision </A></TD></TR>
  <TR vAlign=top>
    <TD width="5%">&nbsp;</TD>
    <TD align=left><A href="#page_40">Note 14 &#150; Convertible notes </A></TD></TR>
  <TR>
    <TD width="5%">&nbsp;</TD>
    <TD bgColor=#eeeeee>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD width="5%">&nbsp;</TD>
    <TD align=left><B>Shareholders&#146; Equity </B></TD></TR>
  <TR vAlign=top>
    <TD width="5%">&nbsp;</TD>
    <TD bgColor=#eeeeee align=left><A href="#page_42">Note 15 &#150; Share capital
      and share-based payments </A></TD></TR>
  <TR vAlign=top>
    <TD width="5%">&nbsp;</TD>
    <TD align=left><A href="#page_46">Note 16 &#150; Other reserves </A></TD></TR>
  <TR>
    <TD width="5%">&nbsp;</TD>
    <TD bgColor=#eeeeee>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD width="5%">&nbsp;</TD>
    <TD align=left><B>Statement of Income </B></TD></TR>
  <TR vAlign=top>
    <TD width="5%">&nbsp;</TD>
    <TD bgColor=#eeeeee align=left><A href="#page_47">Note 17 &#150; Operating
      costs by nature </A></TD></TR>
  <TR vAlign=top>
    <TD width="5%">&nbsp;</TD>
    <TD align=left><A href="#page_48">Note 18 &#150; Finance income and expenses
      </A></TD></TR>
  <TR vAlign=top>
    <TD width="5%">&nbsp;</TD>
    <TD bgColor=#eeeeee align=left><A href="#page_49">Note 19 &#150; Other income
      (other expenses) </A></TD></TR>
  <TR vAlign=top>
    <TD width="5%">&nbsp;</TD>
    <TD align=left><A href="#page_49">Note 20 &#150; Earnings per share </A></TD></TR>
  <TR>
    <TD width="5%">&nbsp;</TD>
    <TD bgColor=#eeeeee>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD width="5%">&nbsp;</TD>
    <TD align=left><B>Additional disclosures </B></TD></TR>
  <TR vAlign=top>
    <TD width="5%">&nbsp;</TD>
    <TD bgColor=#eeeeee align=left><A href="#page_50">Note 21 &#150; Operating
      segments </A></TD></TR>
  <TR vAlign=top>
    <TD width="5%">&nbsp;</TD>
    <TD align=left><A href="#page_52">Note 22 &#150; Financial instruments
  </A></TD></TR>
  <TR vAlign=top>
    <TD width="5%">&nbsp;</TD>
    <TD bgColor=#eeeeee align=left><A href="#page_56">Note 23 &#150; Financial risk
      management </A></TD></TR>
  <TR vAlign=top>
    <TD width="5%">&nbsp;</TD>
    <TD align=left><A href="#page_61">Note 24 &#150; Related party transactions
    </A></TD></TR>
  <TR vAlign=top>
    <TD width="5%">&nbsp;</TD>
    <TD bgColor=#eeeeee align=left><A href="#page_62">Note 25 &#150; Supplemental
      cash flow information </A></TD></TR>
  <TR vAlign=top>
    <TD width="5%">&nbsp;</TD>
    <TD align=left><A href="#page_63">Note 26 &#150; Transition to International
      Financial Reporting Standards </A></TD></TR></TABLE><BR>
<TABLE
style="BORDER-COLOR: black; BORDER-COLLAPSE: collapse; FONT-SIZE: 10pt; "
border=0 cellSpacing=0 cellPadding=0 width="100%">
  <TR vAlign=top>
    <TD style="BORDER-TOP: #000000 1px solid" align=right>5 | <FONT
      color=#7e7e7e>P a g e</FONT> </TD>
  </TR>
</TABLE>
<HR style="PAGE-BREAK-AFTER: always" align=center color=black SIZE=5
width="100%" noShade>
<A name=page_6></A><BR>
<TABLE
style="BORDER-COLOR: black; BORDER-COLLAPSE: collapse; FONT-SIZE: 10pt; "
border=0 cellSpacing=0 cellPadding=0 width="100%">

  <TR vAlign=top>
    <TD align=left><B><FONT size=4>Silver Standard Resources Inc.
    </FONT></B></TD></TR>
  <TR vAlign=top>
    <TD align=left><FONT size=3>Consolidated Statements of Financial Position
      </FONT></TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left><FONT size=3>As at
      December 31, 2011 and 2010 and January 1, 2010 </FONT></TD></TR>
  <TR vAlign=top>
    <TD align=left>(expressed in thousands of United States dollars)
  </TD></TR></TABLE><BR>
<TABLE
style="BORDER-COLOR: black; BORDER-COLLAPSE: collapse; FONT-SIZE: 10pt; "
border=0 cellSpacing=0 cellPadding=0 width="100%">

  <TR vAlign=top>
    <TD align=left>&nbsp; </TD>
    <TD width="7%" align=center>&nbsp;</TD>
    <TD width="1%" align=left>&nbsp;</TD>
    <TD width="12%" 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="12%" 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="12%" align=right nowrap><B>January 1 </B></TD>
  <TD width="2%" align=left>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left>&nbsp; </TD>
    <TD width="7%" align=center><B>Note </B></TD>
    <TD width="1%" align=left>&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 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 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" width="7%"
    align=center>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="1%"
    align=right>&nbsp;</TD>
    <TD width="12%"
      align=right nowrap style="BORDER-BOTTOM: #000000 1px solid"><B>$&nbsp;</B></TD>
    <TD width="2%"
    align=right nowrap style="BORDER-BOTTOM: #000000 1px solid">&nbsp;</TD>
    <TD width="1%"
    align=right nowrap style="BORDER-BOTTOM: #000000 1px solid">&nbsp;</TD>
    <TD width="12%"
      align=right nowrap style="BORDER-BOTTOM: #000000 1px solid"><B>$</B></TD>
    <TD width="2%"
    align=right nowrap style="BORDER-BOTTOM: #000000 1px solid">&nbsp;</TD>
    <TD width="1%"
    align=right 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" width="2%"
    align=right>&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left><B>Current assets </B></TD>
    <TD vAlign=bottom width="7%" align=center>&nbsp;</TD>
    <TD vAlign=bottom width="1%" align=left>&nbsp;</TD>
    <TD vAlign=bottom width="12%" align=left>&nbsp; </TD>
    <TD vAlign=bottom width="2%" align=left>&nbsp;</TD>
    <TD vAlign=bottom width="1%" align=left>&nbsp;</TD>
    <TD vAlign=bottom width="12%" align=left>&nbsp; </TD>
    <TD vAlign=bottom width="2%" align=left>&nbsp;</TD>
    <TD vAlign=bottom width="1%" align=left>&nbsp;</TD>
    <TD vAlign=bottom width="12%" align=left>&nbsp; </TD>
    <TD vAlign=bottom width="2%" align=left>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD bgColor=#e6efff align=left>Cash and cash equivalents </TD>
    <TD bgColor=#e6efff vAlign=bottom width="7%" align=center>3 </TD>
    <TD bgColor=#e6efff vAlign=bottom width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff vAlign=bottom width="12%" align=right><B>329,055
    </B></TD>
    <TD bgColor=#e6efff vAlign=bottom width="2%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff vAlign=bottom width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff vAlign=bottom width="12%" align=right>232,311 </TD>
    <TD bgColor=#e6efff vAlign=bottom width="2%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff vAlign=bottom width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff vAlign=bottom width="12%" align=right>26,659 </TD>
    <TD bgColor=#e6efff vAlign=bottom width="2%" align=left>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left>Trade and other receivables </TD>
    <TD vAlign=bottom width="7%" align=center>4 </TD>
    <TD vAlign=bottom width="1%" align=left>&nbsp;</TD>
    <TD vAlign=bottom width="12%" align=right><B>19,401 </B></TD>
    <TD vAlign=bottom width="2%" align=left>&nbsp;</TD>
    <TD vAlign=bottom width="1%" align=left>&nbsp;</TD>
    <TD vAlign=bottom width="12%" align=right>35,916 </TD>
    <TD vAlign=bottom width="2%" align=left>&nbsp;</TD>
    <TD vAlign=bottom width="1%" align=left>&nbsp;</TD>
    <TD vAlign=bottom width="12%" align=right>8,251 </TD>
    <TD vAlign=bottom width="2%" align=left>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD bgColor=#e6efff align=left>Other current assets </TD>
    <TD bgColor=#e6efff vAlign=bottom width="7%" align=center>5 </TD>
    <TD bgColor=#e6efff vAlign=bottom width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff vAlign=bottom width="12%" align=right><B>33,539
</B></TD>
    <TD bgColor=#e6efff vAlign=bottom width="2%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff vAlign=bottom width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff vAlign=bottom width="12%" align=right>33,651 </TD>
    <TD bgColor=#e6efff vAlign=bottom width="2%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff vAlign=bottom width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff vAlign=bottom width="12%" align=right>19,722 </TD>
    <TD bgColor=#e6efff vAlign=bottom width="2%" align=left>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>Inventory </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom width="7%"
    align=center>6 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom width="1%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom width="12%"
    align=right><B>94,681 </B></TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom width="2%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom width="1%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom width="12%"
    align=right>40,176 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom width="2%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom width="1%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom width="12%"
    align=right>20,565 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom width="2%"
    align=left>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD bgColor=#e6efff align=left>&nbsp; </TD>
    <TD bgColor=#e6efff vAlign=bottom width="7%" align=center>&nbsp;</TD>
    <TD bgColor=#e6efff vAlign=bottom width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff vAlign=bottom width="12%" align=right><B>476,676
    </B></TD>
    <TD bgColor=#e6efff vAlign=bottom width="2%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff vAlign=bottom width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff vAlign=bottom width="12%" align=right>342,054 </TD>
    <TD bgColor=#e6efff vAlign=bottom width="2%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff vAlign=bottom width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff vAlign=bottom width="12%" align=right>75,197 </TD>
    <TD bgColor=#e6efff vAlign=bottom width="2%" align=left>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left><B>Non-current assets </B></TD>
    <TD vAlign=bottom width="7%" align=center>&nbsp;</TD>
    <TD vAlign=bottom width="1%" align=left>&nbsp;</TD>
    <TD vAlign=bottom width="12%" align=left>&nbsp; </TD>
    <TD vAlign=bottom width="2%" align=left>&nbsp;</TD>
    <TD vAlign=bottom width="1%" align=left>&nbsp;</TD>
    <TD vAlign=bottom width="12%" align=left>&nbsp; </TD>
    <TD vAlign=bottom width="2%" align=left>&nbsp;</TD>
    <TD vAlign=bottom width="1%" align=left>&nbsp;</TD>
    <TD vAlign=bottom width="12%" align=left>&nbsp; </TD>
    <TD vAlign=bottom width="2%" align=left>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD bgColor=#e6efff align=left>Property, plant and equipment </TD>
    <TD bgColor=#e6efff vAlign=bottom width="7%" align=center>7 </TD>
    <TD bgColor=#e6efff vAlign=bottom width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff vAlign=bottom width="12%" align=right><B>544,111
    </B></TD>
    <TD bgColor=#e6efff vAlign=bottom width="2%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff vAlign=bottom width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff vAlign=bottom width="12%" align=right>499,632 </TD>
    <TD bgColor=#e6efff vAlign=bottom width="2%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff vAlign=bottom width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff vAlign=bottom width="12%" align=right>496,824 </TD>
    <TD bgColor=#e6efff vAlign=bottom width="2%" align=left>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left>Investment in associate </TD>
    <TD vAlign=bottom width="7%" align=center>8 </TD>
    <TD vAlign=bottom width="1%" align=left>&nbsp;</TD>
    <TD vAlign=bottom width="12%" align=right><B>136,342 </B></TD>
    <TD vAlign=bottom width="2%" align=left>&nbsp;</TD>
    <TD vAlign=bottom width="1%" align=left>&nbsp;</TD>
    <TD vAlign=bottom width="12%" align=right>226,271 </TD>
    <TD vAlign=bottom width="2%" align=left>&nbsp;</TD>
    <TD vAlign=bottom width="1%" align=left>&nbsp;</TD>
    <TD vAlign=bottom width="12%" align=right>- </TD>
    <TD vAlign=bottom width="2%" align=left>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD bgColor=#e6efff align=left>Deferred income tax assets </TD>
    <TD bgColor=#e6efff vAlign=bottom width="7%" align=center>9 </TD>
    <TD bgColor=#e6efff vAlign=bottom width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff vAlign=bottom width="12%" align=right><B>21,591
</B></TD>
    <TD bgColor=#e6efff vAlign=bottom width="2%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff vAlign=bottom width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff vAlign=bottom width="12%" align=right>- </TD>
    <TD bgColor=#e6efff vAlign=bottom width="2%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff vAlign=bottom width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff vAlign=bottom width="12%" align=right>- </TD>
    <TD bgColor=#e6efff vAlign=bottom width="2%" align=left>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left>Value added tax receivable </TD>
    <TD vAlign=bottom width="7%" align=center>10 </TD>
    <TD vAlign=bottom width="1%" align=left>&nbsp;</TD>
    <TD vAlign=bottom width="12%" align=right><B>89,160 </B></TD>
    <TD vAlign=bottom width="2%" align=left>&nbsp;</TD>
    <TD vAlign=bottom width="1%" align=left>&nbsp;</TD>
    <TD vAlign=bottom width="12%" align=right>70,782 </TD>
    <TD vAlign=bottom width="2%" align=left>&nbsp;</TD>
    <TD vAlign=bottom width="1%" align=left>&nbsp;</TD>
    <TD vAlign=bottom width="12%" align=right>54,094 </TD>
    <TD vAlign=bottom width="2%" align=left>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff
      align=left>Other non-current assets </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff vAlign=bottom
    width="7%" align=center>5 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff vAlign=bottom
    width="1%" align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff vAlign=bottom
    width="12%" align=right><B>8,222 </B></TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff vAlign=bottom
    width="2%" align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff vAlign=bottom
    width="1%" align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff vAlign=bottom
    width="12%" align=right>9,251 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff vAlign=bottom
    width="2%" align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff vAlign=bottom
    width="1%" align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff vAlign=bottom
    width="12%" align=right>8,015 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff vAlign=bottom
    width="2%" align=left>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=left><B>Total assets
      </B></TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" vAlign=bottom width="7%"
    align=center>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" vAlign=bottom width="1%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" vAlign=bottom width="12%"
    align=right><B>1,276,102 </B></TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" vAlign=bottom width="2%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" vAlign=bottom width="1%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" vAlign=bottom width="12%"
    align=right>1,147,990 </TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" vAlign=bottom width="2%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" vAlign=bottom width="1%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" vAlign=bottom width="12%"
    align=right>634,130 </TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" vAlign=bottom width="2%"
    align=left>&nbsp;</TD></TR>
  <TR>
    <TD bgColor=#e6efff>&nbsp; </TD>
    <TD bgColor=#e6efff vAlign=bottom width="7%" align=center>&nbsp;</TD>
    <TD bgColor=#e6efff vAlign=bottom width="1%">&nbsp;</TD>
    <TD bgColor=#e6efff vAlign=bottom width="12%">&nbsp; </TD>
    <TD bgColor=#e6efff vAlign=bottom width="2%">&nbsp;</TD>
    <TD bgColor=#e6efff vAlign=bottom width="1%">&nbsp;</TD>
    <TD bgColor=#e6efff vAlign=bottom width="12%">&nbsp; </TD>
    <TD bgColor=#e6efff vAlign=bottom width="2%">&nbsp;</TD>
    <TD bgColor=#e6efff vAlign=bottom width="1%">&nbsp;</TD>
    <TD bgColor=#e6efff vAlign=bottom width="12%">&nbsp; </TD>
    <TD bgColor=#e6efff vAlign=bottom width="2%">&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left><B>Current liabilities </B></TD>
    <TD vAlign=bottom width="7%" align=center>&nbsp;</TD>
    <TD vAlign=bottom width="1%" align=left>&nbsp;</TD>
    <TD vAlign=bottom width="12%" align=left>&nbsp; </TD>
    <TD vAlign=bottom width="2%" align=left>&nbsp;</TD>
    <TD vAlign=bottom width="1%" align=left>&nbsp;</TD>
    <TD vAlign=bottom width="12%" align=left>&nbsp; </TD>
    <TD vAlign=bottom width="2%" align=left>&nbsp;</TD>
    <TD vAlign=bottom width="1%" align=left>&nbsp;</TD>
    <TD vAlign=bottom width="12%" align=left>&nbsp; </TD>
    <TD vAlign=bottom width="2%" align=left>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD bgColor=#e6efff align=left>Trade and other payables </TD>
    <TD bgColor=#e6efff vAlign=bottom width="7%" align=center>11 </TD>
    <TD bgColor=#e6efff vAlign=bottom width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff vAlign=bottom width="12%" align=right><B>48,023
</B></TD>
    <TD bgColor=#e6efff vAlign=bottom width="2%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff vAlign=bottom width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff vAlign=bottom width="12%" align=right>35,163 </TD>
    <TD bgColor=#e6efff vAlign=bottom width="2%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff vAlign=bottom width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff vAlign=bottom width="12%" align=right>50,682 </TD>
    <TD bgColor=#e6efff vAlign=bottom width="2%" align=left>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left>Taxes payable </TD>
    <TD vAlign=bottom width="7%" align=center>&nbsp;</TD>
    <TD vAlign=bottom width="1%" align=left>&nbsp;</TD>
    <TD vAlign=bottom width="12%" align=right><B>22,498 </B></TD>
    <TD vAlign=bottom width="2%" align=left>&nbsp;</TD>
    <TD vAlign=bottom width="1%" align=left>&nbsp;</TD>
    <TD vAlign=bottom width="12%" align=right>- </TD>
    <TD vAlign=bottom width="2%" align=left>&nbsp;</TD>
    <TD vAlign=bottom width="1%" align=left>&nbsp;</TD>
    <TD vAlign=bottom width="12%" align=right>- </TD>
    <TD vAlign=bottom width="2%" align=left>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff
      align=left>Warrant liability </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff vAlign=bottom
    width="7%" align=center>12 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff vAlign=bottom
    width="1%" align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff vAlign=bottom
    width="12%" align=right><B>7,067 </B></TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff vAlign=bottom
    width="2%" align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff vAlign=bottom
    width="1%" align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff vAlign=bottom
    width="12%" align=right>- </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff vAlign=bottom
    width="2%" align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff vAlign=bottom
    width="1%" align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff vAlign=bottom
    width="12%" align=right>- </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff vAlign=bottom
    width="2%" align=left>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left>&nbsp; </TD>
    <TD vAlign=bottom width="7%" align=center>&nbsp;</TD>
    <TD vAlign=bottom width="1%" align=left>&nbsp;</TD>
    <TD vAlign=bottom width="12%" align=right><B>77,588 </B></TD>
    <TD vAlign=bottom width="2%" align=left>&nbsp;</TD>
    <TD vAlign=bottom width="1%" align=left>&nbsp;</TD>
    <TD vAlign=bottom width="12%" align=right>35,163 </TD>
    <TD vAlign=bottom width="2%" align=left>&nbsp;</TD>
    <TD vAlign=bottom width="1%" align=left>&nbsp;</TD>
    <TD vAlign=bottom width="12%" align=right>50,682 </TD>
    <TD vAlign=bottom width="2%" align=left>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD bgColor=#e6efff align=left><B>Non-current liabilities </B></TD>
    <TD bgColor=#e6efff vAlign=bottom width="7%" align=center>&nbsp;</TD>
    <TD bgColor=#e6efff vAlign=bottom width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff vAlign=bottom width="12%" align=left>&nbsp; </TD>
    <TD bgColor=#e6efff vAlign=bottom width="2%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff vAlign=bottom width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff vAlign=bottom width="12%" align=left>&nbsp; </TD>
    <TD bgColor=#e6efff vAlign=bottom width="2%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff vAlign=bottom width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff vAlign=bottom width="12%" align=left>&nbsp; </TD>
    <TD bgColor=#e6efff vAlign=bottom width="2%" align=left>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left>Deferred income tax liabilities </TD>
    <TD vAlign=bottom width="7%" align=center>9 </TD>
    <TD vAlign=bottom width="1%" align=left>&nbsp;</TD>
    <TD vAlign=bottom width="12%" align=right><B>41,331 </B></TD>
    <TD vAlign=bottom width="2%" align=left>&nbsp;</TD>
    <TD vAlign=bottom width="1%" align=left>&nbsp;</TD>
    <TD vAlign=bottom width="12%" align=right>26,765 </TD>
    <TD vAlign=bottom width="2%" align=left>&nbsp;</TD>
    <TD vAlign=bottom width="1%" align=left>&nbsp;</TD>
    <TD vAlign=bottom width="12%" align=right>1,949 </TD>
    <TD vAlign=bottom width="2%" align=left>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD bgColor=#e6efff align=left>Non-current taxes payable </TD>
    <TD bgColor=#e6efff vAlign=bottom width="7%" align=center>&nbsp;</TD>
    <TD bgColor=#e6efff vAlign=bottom width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff vAlign=bottom width="12%" align=right><B>- </B></TD>
    <TD bgColor=#e6efff vAlign=bottom width="2%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff vAlign=bottom width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff vAlign=bottom width="12%" align=right>3,671 </TD>
    <TD bgColor=#e6efff vAlign=bottom width="2%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff vAlign=bottom width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff vAlign=bottom width="12%" align=right>3,373 </TD>
    <TD bgColor=#e6efff vAlign=bottom width="2%" align=left>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left>Close down and restoration provision </TD>
    <TD vAlign=bottom width="7%" align=center>13 </TD>
    <TD vAlign=bottom width="1%" align=left>&nbsp;</TD>
    <TD vAlign=bottom width="12%" align=right><B>46,653 </B></TD>
    <TD vAlign=bottom width="2%" align=left>&nbsp;</TD>
    <TD vAlign=bottom width="1%" align=left>&nbsp;</TD>
    <TD vAlign=bottom width="12%" align=right>12,671 </TD>
    <TD vAlign=bottom width="2%" align=left>&nbsp;</TD>
    <TD vAlign=bottom width="1%" align=left>&nbsp;</TD>
    <TD vAlign=bottom width="12%" align=right>10,340 </TD>
    <TD vAlign=bottom width="2%" align=left>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD bgColor=#e6efff align=left>Convertible notes </TD>
    <TD bgColor=#e6efff vAlign=bottom width="7%" align=center>14 </TD>
    <TD bgColor=#e6efff vAlign=bottom width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff vAlign=bottom width="12%" align=right><B>125,313
    </B></TD>
    <TD bgColor=#e6efff vAlign=bottom width="2%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff vAlign=bottom width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff vAlign=bottom width="12%" align=right>116,125 </TD>
    <TD bgColor=#e6efff vAlign=bottom width="2%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff vAlign=bottom width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff vAlign=bottom width="12%" align=right>107,895 </TD>
    <TD bgColor=#e6efff vAlign=bottom width="2%" align=left>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>Derivative
      liability </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom width="7%"
    align=center>14 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom width="1%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom width="12%"
    align=right><B>1,242 </B></TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom width="2%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom width="1%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom width="12%"
    align=right>21,735 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom width="2%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom width="1%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom width="12%"
    align=right>20,728 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom width="2%"
    align=left>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 2px solid" bgColor=#e6efff
      align=left><B>Total liabilities </B></TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" bgColor=#e6efff vAlign=bottom
    width="7%" align=center>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" bgColor=#e6efff vAlign=bottom
    width="1%" align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" bgColor=#e6efff vAlign=bottom
    width="12%" align=right><B>292,127 </B></TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" bgColor=#e6efff vAlign=bottom
    width="2%" align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" bgColor=#e6efff vAlign=bottom
    width="1%" align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" bgColor=#e6efff vAlign=bottom
    width="12%" align=right>216,130 </TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" bgColor=#e6efff vAlign=bottom
    width="2%" align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" bgColor=#e6efff vAlign=bottom
    width="1%" align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" bgColor=#e6efff vAlign=bottom
    width="12%" align=right>194,967 </TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" bgColor=#e6efff vAlign=bottom
    width="2%" align=left>&nbsp;</TD></TR>
  <TR>
    <TD>&nbsp; </TD>
    <TD vAlign=bottom width="7%" align=center>&nbsp;</TD>
    <TD vAlign=bottom width="1%">&nbsp;</TD>
    <TD vAlign=bottom width="12%">&nbsp; </TD>
    <TD vAlign=bottom width="2%">&nbsp;</TD>
    <TD vAlign=bottom width="1%">&nbsp;</TD>
    <TD vAlign=bottom width="12%">&nbsp; </TD>
    <TD vAlign=bottom width="2%">&nbsp;</TD>
    <TD vAlign=bottom width="1%">&nbsp;</TD>
    <TD vAlign=bottom width="12%">&nbsp; </TD>
    <TD vAlign=bottom width="2%">&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD bgColor=#e6efff align=left><B>Shareholders' equity </B></TD>
    <TD bgColor=#e6efff vAlign=bottom width="7%" align=center>&nbsp;</TD>
    <TD bgColor=#e6efff vAlign=bottom width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff vAlign=bottom width="12%" align=left>&nbsp; </TD>
    <TD bgColor=#e6efff vAlign=bottom width="2%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff vAlign=bottom width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff vAlign=bottom width="12%" align=left>&nbsp; </TD>
    <TD bgColor=#e6efff vAlign=bottom width="2%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff vAlign=bottom width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff vAlign=bottom width="12%" align=left>&nbsp; </TD>
    <TD bgColor=#e6efff vAlign=bottom width="2%" align=left>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left>Share capital </TD>
    <TD vAlign=bottom width="7%" align=center>15 </TD>
    <TD vAlign=bottom width="1%" align=left>&nbsp;</TD>
    <TD vAlign=bottom width="12%" align=right><B>705,876 </B></TD>
    <TD vAlign=bottom width="2%" align=left>&nbsp;</TD>
    <TD vAlign=bottom width="1%" align=left>&nbsp;</TD>
    <TD vAlign=bottom width="12%" align=right>676,651 </TD>
    <TD vAlign=bottom width="2%" align=left>&nbsp;</TD>
    <TD vAlign=bottom width="1%" align=left>&nbsp;</TD>
    <TD vAlign=bottom width="12%" align=right>538,700 </TD>
    <TD vAlign=bottom width="2%" align=left>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD bgColor=#e6efff align=left>Other reserves </TD>
    <TD bgColor=#e6efff vAlign=bottom width="7%" align=center>16 </TD>
    <TD bgColor=#e6efff vAlign=bottom width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff vAlign=bottom width="12%" align=right><B>6,515 </B></TD>
    <TD bgColor=#e6efff vAlign=bottom width="2%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff vAlign=bottom width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff vAlign=bottom width="12%" align=right>63,257 </TD>
    <TD bgColor=#e6efff vAlign=bottom width="2%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff vAlign=bottom width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff vAlign=bottom width="12%" align=right>46,966 </TD>
    <TD bgColor=#e6efff vAlign=bottom width="2%" align=left>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>Retained earnings
      (accumulated deficit) </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom width="7%"
    align=center>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom width="1%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom width="12%"
    align=right><B>271,584 </B></TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom width="2%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom width="1%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom width="12%"
    align=right>191,456 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom width="2%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom width="1%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom width="12%"
    align=right>(146,999</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom width="2%"
    align=left>) </TD></TR>
  <TR vAlign=top>
    <TD bgColor=#e6efff align=left><B>Total shareholders' equity attributable
      to shareholders of the Company </B></TD>
    <TD bgColor=#e6efff vAlign=bottom width="7%" align=center>&nbsp;</TD>
    <TD bgColor=#e6efff vAlign=bottom width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff vAlign=bottom width="12%" align=right><B>983,975
    </B></TD>
    <TD bgColor=#e6efff vAlign=bottom width="2%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff vAlign=bottom width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff vAlign=bottom width="12%" align=right>931,364 </TD>
    <TD bgColor=#e6efff vAlign=bottom width="2%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff vAlign=bottom width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff vAlign=bottom width="12%" align=right>438,667 </TD>
    <TD bgColor=#e6efff vAlign=bottom width="2%" align=left>&nbsp;</TD></TR>
  <TR>
    <TD>&nbsp; </TD>
    <TD vAlign=bottom width="7%" align=center>&nbsp;</TD>
    <TD vAlign=bottom width="1%">&nbsp;</TD>
    <TD vAlign=bottom width="12%">&nbsp; </TD>
    <TD vAlign=bottom width="2%">&nbsp;</TD>
    <TD vAlign=bottom width="1%">&nbsp;</TD>
    <TD vAlign=bottom width="12%">&nbsp; </TD>
    <TD vAlign=bottom width="2%">&nbsp;</TD>
    <TD vAlign=bottom width="1%">&nbsp;</TD>
    <TD vAlign=bottom width="12%">&nbsp; </TD>
    <TD vAlign=bottom width="2%">&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff
      align=left>Non-controlling interest </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff vAlign=bottom
    width="7%" align=center>7 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff vAlign=bottom
    width="1%" align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff vAlign=bottom
    width="12%" align=right><B>- </B></TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff vAlign=bottom
    width="2%" align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff vAlign=bottom
    width="1%" align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff vAlign=bottom
    width="12%" align=right>496 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff vAlign=bottom
    width="2%" align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff vAlign=bottom
    width="1%" align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff vAlign=bottom
    width="12%" align=right>496 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff vAlign=bottom
    width="2%" align=left>&nbsp;</TD></TR>
  <TR>
    <TD>&nbsp; </TD>
    <TD vAlign=bottom width="7%" align=center>&nbsp;</TD>
    <TD vAlign=bottom width="1%">&nbsp;</TD>
    <TD vAlign=bottom width="12%">&nbsp; </TD>
    <TD vAlign=bottom width="2%">&nbsp;</TD>
    <TD vAlign=bottom width="1%">&nbsp;</TD>
    <TD vAlign=bottom width="12%">&nbsp; </TD>
    <TD vAlign=bottom width="2%">&nbsp;</TD>
    <TD vAlign=bottom width="1%">&nbsp;</TD>
    <TD vAlign=bottom width="12%">&nbsp; </TD>
    <TD vAlign=bottom width="2%">&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 2px solid" bgColor=#e6efff
      align=left><B>Total liabilities and equity </B></TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" bgColor=#e6efff vAlign=bottom
    width="7%" align=center>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" bgColor=#e6efff vAlign=bottom
    width="1%" align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" bgColor=#e6efff vAlign=bottom
    width="12%" align=right><B>1,276,102 </B></TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" bgColor=#e6efff vAlign=bottom
    width="2%" align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" bgColor=#e6efff vAlign=bottom
    width="1%" align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" bgColor=#e6efff vAlign=bottom
    width="12%" align=right>1,147,990 </TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" bgColor=#e6efff vAlign=bottom
    width="2%" align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" bgColor=#e6efff vAlign=bottom
    width="1%" align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" bgColor=#e6efff vAlign=bottom
    width="12%" align=right>634,130 </TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" bgColor=#e6efff vAlign=bottom
    width="2%" align=left>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left>Events after the reporting date (note 8) </TD>
    <TD vAlign=bottom width="7%" align=center>&nbsp;</TD>
    <TD vAlign=bottom width="1%" align=left>&nbsp;</TD>
    <TD vAlign=bottom width="12%" align=left>&nbsp; </TD>
    <TD vAlign=bottom width="2%" align=left>&nbsp;</TD>
    <TD vAlign=bottom width="1%" align=left>&nbsp;</TD>
    <TD vAlign=bottom width="12%" align=left>&nbsp; </TD>
    <TD vAlign=bottom width="2%" align=left>&nbsp;</TD>
    <TD vAlign=bottom width="1%" align=left>&nbsp;</TD>
    <TD vAlign=bottom width="12%" align=left>&nbsp; </TD>
    <TD vAlign=bottom width="2%" align=left>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD bgColor=#e6efff align=left>Commitments (note 23 (c)) </TD>
    <TD bgColor=#e6efff vAlign=bottom width="7%" align=center>&nbsp;</TD>
    <TD bgColor=#e6efff vAlign=bottom width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff vAlign=bottom width="12%" align=left>&nbsp; </TD>
    <TD bgColor=#e6efff vAlign=bottom width="2%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff vAlign=bottom width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff vAlign=bottom width="12%" align=left>&nbsp; </TD>
    <TD bgColor=#e6efff vAlign=bottom width="2%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff vAlign=bottom width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff vAlign=bottom width="12%" align=left>&nbsp; </TD>
    <TD bgColor=#e6efff vAlign=bottom width="2%"
  align=left>&nbsp;</TD></TR></TABLE>
<P align=center>The accompanying notes are an integral part of the consolidated
financial statements </P>
<P align=justify><B>Approved by the Board of Directors and authorized for issue
on March 11, 2012 </B></P>
<TABLE
style="BORDER-COLOR: black; BORDER-COLLAPSE: collapse; FONT-SIZE: 10pt; "
border=0 cellSpacing=0 cellPadding=0 width="100%">

  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left><I>&#147;John R.
      Brodie&#148; </I></TD>
    <TD width="4%" align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="48%"
      align=left><I>&#147;John Smith&#148; </I></TD></TR>
  <TR vAlign=top>
    <TD align=left>John R. Brodie, FCA, Director </TD>
    <TD width="4%" align=left>&nbsp;</TD>
    <TD width="48%" align=left>John Smith, Director </TD></TR></TABLE><BR>
<TABLE
style="BORDER-COLOR: black; BORDER-COLLAPSE: collapse; FONT-SIZE: 10pt; "
border=0 cellSpacing=0 cellPadding=0 width="100%">
  <TR vAlign=top>
    <TD style="BORDER-TOP: #000000 1px solid" align=right>6 | <FONT
      color=#7e7e7e>P a g e</FONT> </TD>
  </TR>
</TABLE>
<HR style="PAGE-BREAK-AFTER: always" align=center color=black SIZE=5
width="100%" noShade>
<A name=page_7></A><BR>
<TABLE
style="BORDER-COLOR: black; BORDER-COLLAPSE: collapse; FONT-SIZE: 10pt; "
border=0 cellSpacing=0 cellPadding=0 width="100%">

  <TR vAlign=top>
    <TD align=left><B><FONT size=4>Silver Standard Resources Inc.
    </FONT></B></TD></TR>
  <TR vAlign=top>
    <TD align=left><FONT size=3>Consolidated Statements of Income
</FONT></TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left><FONT size=3>For
      the years ended December 31, 2011 and 2010 </FONT></TD></TR>
  <TR vAlign=top>
    <TD align=left>(expressed in thousands of United States dollars, except
      per share amounts) </TD></TR></TABLE><BR>
<TABLE
style="BORDER-COLOR: black; BORDER-COLLAPSE: collapse; FONT-SIZE: 10pt; "
border=0 cellSpacing=0 cellPadding=0 width="100%">

  <TR vAlign=top>
    <TD align=left>&nbsp; </TD>
    <TD width="15%" align=center><B>Note </B></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 style="BORDER-BOTTOM: #000000 1px solid" align=left>&nbsp; </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="15%"
    align=center>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="1%"
    align=right>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="12%"
      align=right><B>$</B></TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="2%"
    align=right>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="1%"
    align=right>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="12%"
      align=right><B>$</B></TD>
  <TD style="BORDER-BOTTOM: #000000 1px solid" width="2%"
    align=right>&nbsp;</TD>
  </TR>
  <TR>
    <TD>&nbsp; </TD>
    <TD vAlign=bottom width="15%" align=center>&nbsp;</TD>
    <TD vAlign=bottom width="1%">&nbsp;</TD>
    <TD vAlign=bottom width="12%">&nbsp; </TD>
    <TD vAlign=bottom width="2%">&nbsp;</TD>
    <TD vAlign=bottom width="1%">&nbsp;</TD>
    <TD vAlign=bottom width="12%">&nbsp; </TD>
    <TD vAlign=bottom width="2%">&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD bgColor=#e6efff align=left><B>Revenue </B></TD>
    <TD bgColor=#e6efff vAlign=bottom width="15%" align=center>&nbsp;</TD>
    <TD bgColor=#e6efff vAlign=bottom width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff vAlign=bottom width="12%" align=right><B>147,845
    </B></TD>
    <TD bgColor=#e6efff vAlign=bottom width="2%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff vAlign=bottom width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff vAlign=bottom width="12%" align=right>112,256 </TD>
    <TD bgColor=#e6efff vAlign=bottom width="2%" align=left>&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" vAlign=bottom width="15%"
    align=center>17 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom width="1%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom width="12%"
    align=right><B>(95,926</B></TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom width="2%"
    align=left>) </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom width="1%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom width="12%"
    align=right>(98,122</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom width="2%"
    align=left>) </TD></TR>
  <TR vAlign=top>
    <TD bgColor=#e6efff align=left><B>Income from mine operations </B></TD>
    <TD bgColor=#e6efff vAlign=bottom width="15%" align=center>&nbsp;</TD>
    <TD bgColor=#e6efff vAlign=bottom width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff vAlign=bottom width="12%" align=right><B>51,919
</B></TD>
    <TD bgColor=#e6efff vAlign=bottom width="2%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff vAlign=bottom width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff vAlign=bottom width="12%" align=right>14,134 </TD>
    <TD bgColor=#e6efff vAlign=bottom width="2%" align=left>&nbsp;</TD></TR>
  <TR>
    <TD>&nbsp; </TD>
    <TD vAlign=bottom width="15%" align=center>&nbsp;</TD>
    <TD vAlign=bottom width="1%">&nbsp;</TD>
    <TD vAlign=bottom width="12%">&nbsp; </TD>
    <TD vAlign=bottom width="2%">&nbsp;</TD>
    <TD vAlign=bottom width="1%">&nbsp;</TD>
    <TD vAlign=bottom width="12%">&nbsp; </TD>
    <TD vAlign=bottom width="2%">&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD bgColor=#e6efff align=left>General and administrative expenses </TD>
    <TD bgColor=#e6efff vAlign=bottom width="15%" align=center>17 </TD>
    <TD bgColor=#e6efff vAlign=bottom width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff vAlign=bottom width="12%"
align=right><B>(23,651</B></TD>
    <TD bgColor=#e6efff vAlign=bottom width="2%" align=left>) </TD>
    <TD bgColor=#e6efff vAlign=bottom width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff vAlign=bottom width="12%" align=right>(28,896</TD>
    <TD bgColor=#e6efff vAlign=bottom width="2%" align=left>) </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" vAlign=bottom width="15%"
    align=center>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom width="1%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom width="12%"
    align=right><B>(5,703</B></TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom width="2%"
    align=left>) </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom width="1%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom width="12%"
    align=right>(2,400</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom width="2%"
    align=left>) </TD></TR>
  <TR vAlign=top>
    <TD bgColor=#e6efff align=left><B>Operating income (loss) </B></TD>
    <TD bgColor=#e6efff vAlign=bottom width="15%" align=center>&nbsp;</TD>
    <TD bgColor=#e6efff vAlign=bottom width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff vAlign=bottom width="12%" align=right><B>22,565
</B></TD>
    <TD bgColor=#e6efff vAlign=bottom width="2%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff vAlign=bottom width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff vAlign=bottom width="12%" align=right>(17,162</TD>
    <TD bgColor=#e6efff vAlign=bottom width="2%" align=left>) </TD></TR>
  <TR>
    <TD>&nbsp; </TD>
    <TD vAlign=bottom width="15%" align=center>&nbsp;</TD>
    <TD vAlign=bottom width="1%">&nbsp;</TD>
    <TD vAlign=bottom width="12%">&nbsp; </TD>
    <TD vAlign=bottom width="2%">&nbsp;</TD>
    <TD vAlign=bottom width="1%">&nbsp;</TD>
    <TD vAlign=bottom width="12%">&nbsp; </TD>
    <TD vAlign=bottom width="2%">&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD bgColor=#e6efff align=left>Gain on sale of mineral property </TD>
    <TD bgColor=#e6efff vAlign=bottom width="15%" align=center>7 </TD>
    <TD bgColor=#e6efff vAlign=bottom width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff vAlign=bottom width="12%" align=right><B>49,856
</B></TD>
    <TD bgColor=#e6efff vAlign=bottom width="2%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff vAlign=bottom width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff vAlign=bottom width="12%" align=right>402,009 </TD>
    <TD bgColor=#e6efff vAlign=bottom width="2%" align=left>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left>Gain on partial disposal of associate </TD>
    <TD vAlign=bottom width="15%" align=center>8 </TD>
    <TD vAlign=bottom width="1%" align=left>&nbsp;</TD>
    <TD vAlign=bottom width="12%" align=right><B>38,776 </B></TD>
    <TD vAlign=bottom width="2%" align=left>&nbsp;</TD>
    <TD vAlign=bottom width="1%" align=left>&nbsp;</TD>
    <TD vAlign=bottom width="12%" align=right>- </TD>
    <TD vAlign=bottom width="2%" align=left>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD bgColor=#e6efff align=left>Interest earned and other finance income
</TD>
    <TD bgColor=#e6efff vAlign=bottom width="15%" align=center>18 </TD>
    <TD bgColor=#e6efff vAlign=bottom width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff vAlign=bottom width="12%" align=right><B>2,291 </B></TD>
    <TD bgColor=#e6efff vAlign=bottom width="2%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff vAlign=bottom width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff vAlign=bottom width="12%" align=right>1,400 </TD>
    <TD bgColor=#e6efff vAlign=bottom width="2%" align=left>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left>Interest expense and other finance costs </TD>
    <TD vAlign=bottom width="15%" align=center>18 </TD>
    <TD vAlign=bottom width="1%" align=left>&nbsp;</TD>
    <TD vAlign=bottom width="12%" align=right><B>(17,392</B></TD>
    <TD vAlign=bottom width="2%" align=left>) </TD>
    <TD vAlign=bottom width="1%" align=left>&nbsp;</TD>
    <TD vAlign=bottom width="12%" align=right>(16,363</TD>
    <TD vAlign=bottom width="2%" align=left>) </TD></TR>
  <TR vAlign=top>
    <TD bgColor=#e6efff align=left>Other income (other expenses) </TD>
    <TD bgColor=#e6efff vAlign=bottom width="15%" align=center>19 </TD>
    <TD bgColor=#e6efff vAlign=bottom width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff vAlign=bottom width="12%" align=right><B>18,080
</B></TD>
    <TD bgColor=#e6efff vAlign=bottom width="2%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff vAlign=bottom width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff vAlign=bottom width="12%" align=right>1,706 </TD>
    <TD bgColor=#e6efff vAlign=bottom width="2%" align=left>&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" vAlign=bottom width="15%"
    align=center>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom width="1%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom width="12%"
    align=right><B>(2,651</B></TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom width="2%"
    align=left>) </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom width="1%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom width="12%"
    align=right>(942</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom width="2%"
    align=left>) </TD></TR>
  <TR vAlign=top>
    <TD bgColor=#e6efff align=left><B>Income before tax </B></TD>
    <TD bgColor=#e6efff vAlign=bottom width="15%" align=center>&nbsp;</TD>
    <TD bgColor=#e6efff vAlign=bottom width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff vAlign=bottom width="12%" align=right><B>111,525
    </B></TD>
    <TD bgColor=#e6efff vAlign=bottom width="2%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff vAlign=bottom width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff vAlign=bottom width="12%" align=right>370,648 </TD>
    <TD bgColor=#e6efff vAlign=bottom width="2%" align=left>&nbsp;</TD></TR>
  <TR>
    <TD>&nbsp; </TD>
    <TD vAlign=bottom width="15%" align=center>&nbsp;</TD>
    <TD vAlign=bottom width="1%">&nbsp;</TD>
    <TD vAlign=bottom width="12%">&nbsp; </TD>
    <TD vAlign=bottom width="2%">&nbsp;</TD>
    <TD vAlign=bottom width="1%">&nbsp;</TD>
    <TD vAlign=bottom width="12%">&nbsp; </TD>
    <TD vAlign=bottom width="2%">&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff
      align=left>Income tax expense </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff vAlign=bottom
    width="15%" align=center>9 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff vAlign=bottom
    width="1%" align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff vAlign=bottom
    width="12%" align=right><B>(31,397</B></TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff vAlign=bottom
    width="2%" align=left>) </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff vAlign=bottom
    width="1%" align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff vAlign=bottom
    width="12%" align=right>(32,193</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff vAlign=bottom
    width="2%" align=left>) </TD></TR>
  <TR>
    <TD>&nbsp; </TD>
    <TD vAlign=bottom width="15%" align=center>&nbsp;</TD>
    <TD vAlign=bottom width="1%">&nbsp;</TD>
    <TD vAlign=bottom width="12%">&nbsp; </TD>
    <TD vAlign=bottom width="2%">&nbsp;</TD>
    <TD vAlign=bottom width="1%">&nbsp;</TD>
    <TD vAlign=bottom width="12%">&nbsp; </TD>
    <TD vAlign=bottom width="2%">&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 2px solid" bgColor=#e6efff
      align=left><B>Net income and net income </B><B>attributable to
      shareholders </B></TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" bgColor=#e6efff vAlign=bottom
    width="15%" align=center>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" bgColor=#e6efff vAlign=bottom
    width="1%" align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" bgColor=#e6efff vAlign=bottom
    width="12%" align=right><B>80,128 </B></TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" bgColor=#e6efff vAlign=bottom
    width="2%" align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" bgColor=#e6efff vAlign=bottom
    width="1%" align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" bgColor=#e6efff vAlign=bottom
    width="12%" align=right>338,455 </TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" bgColor=#e6efff vAlign=bottom
    width="2%" align=left>&nbsp;</TD></TR>
  <TR>
    <TD>&nbsp; </TD>
    <TD vAlign=bottom width="15%" align=center>&nbsp;</TD>
    <TD vAlign=bottom width="1%">&nbsp;</TD>
    <TD vAlign=bottom width="12%">&nbsp; </TD>
    <TD vAlign=bottom width="2%">&nbsp;</TD>
    <TD vAlign=bottom width="1%">&nbsp;</TD>
    <TD vAlign=bottom width="12%">&nbsp; </TD>
    <TD vAlign=bottom width="2%">&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD bgColor=#e6efff align=left><B>Weighted average shares outstanding
      (thousands) </B></TD>
    <TD bgColor=#e6efff vAlign=bottom width="15%" align=center>&nbsp;</TD>
    <TD bgColor=#e6efff vAlign=bottom width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff vAlign=bottom width="12%" align=left>&nbsp; </TD>
    <TD bgColor=#e6efff vAlign=bottom width="2%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff vAlign=bottom width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff vAlign=bottom width="12%" align=left>&nbsp; </TD>
    <TD bgColor=#e6efff vAlign=bottom width="2%" align=left>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left>&nbsp;Basic </TD>
    <TD vAlign=bottom width="15%" align=center>20 </TD>
    <TD vAlign=bottom width="1%" align=left>&nbsp;</TD>
    <TD vAlign=bottom width="12%" align=right><B>80,324 </B></TD>
    <TD vAlign=bottom width="2%" align=left>&nbsp;</TD>
    <TD vAlign=bottom width="1%" align=left>&nbsp;</TD>
    <TD vAlign=bottom width="12%" align=right>77,972 </TD>
    <TD vAlign=bottom width="2%" align=left>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD bgColor=#e6efff align=left>&nbsp;Diluted </TD>
    <TD bgColor=#e6efff vAlign=bottom width="15%" align=center>20 </TD>
    <TD bgColor=#e6efff vAlign=bottom width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff vAlign=bottom width="12%" align=right><B>80,660
</B></TD>
    <TD bgColor=#e6efff vAlign=bottom width="2%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff vAlign=bottom width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff vAlign=bottom width="12%" align=right>78,356 </TD>
    <TD bgColor=#e6efff vAlign=bottom width="2%" align=left>&nbsp;</TD></TR>
  <TR>
    <TD>&nbsp; </TD>
    <TD vAlign=bottom width="15%" align=center>&nbsp;</TD>
    <TD vAlign=bottom width="1%">&nbsp;</TD>
    <TD vAlign=bottom width="12%">&nbsp; </TD>
    <TD vAlign=bottom width="2%">&nbsp;</TD>
    <TD vAlign=bottom width="1%">&nbsp;</TD>
    <TD vAlign=bottom width="12%">&nbsp; </TD>
    <TD vAlign=bottom width="2%">&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD bgColor=#e6efff align=left><B>Earnings per share </B></TD>
    <TD bgColor=#e6efff vAlign=bottom width="15%" align=center>&nbsp;</TD>
    <TD bgColor=#e6efff vAlign=bottom width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff vAlign=bottom width="12%" align=left>&nbsp; </TD>
    <TD bgColor=#e6efff vAlign=bottom width="2%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff vAlign=bottom width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff vAlign=bottom width="12%" align=left>&nbsp; </TD>
    <TD bgColor=#e6efff vAlign=bottom width="2%" align=left>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left>&nbsp;Basic </TD>
    <TD vAlign=bottom width="15%" align=center>20 </TD>
    <TD vAlign=bottom width="1%" align=left><B>$</B></TD>
    <TD vAlign=bottom width="12%" align=right><B>&nbsp;1.00 </B></TD>
    <TD vAlign=bottom width="2%" align=left>&nbsp;</TD>
    <TD vAlign=bottom width="1%" align=left>$</TD>
    <TD vAlign=bottom width="12%" align=right>&nbsp;4.34 </TD>
    <TD vAlign=bottom width="2%" align=left>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD bgColor=#e6efff align=left>&nbsp;Diluted </TD>
    <TD bgColor=#e6efff vAlign=bottom width="15%" align=center>20 </TD>
    <TD bgColor=#e6efff vAlign=bottom width="1%" align=left><B>$</B></TD>
    <TD bgColor=#e6efff vAlign=bottom width="12%" align=right><B>&nbsp;0.99
      </B></TD>
    <TD bgColor=#e6efff vAlign=bottom width="2%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff vAlign=bottom width="1%" align=left>$</TD>
    <TD bgColor=#e6efff vAlign=bottom width="12%" align=right>&nbsp;4.32 </TD>
    <TD bgColor=#e6efff vAlign=bottom width="2%"
  align=left>&nbsp;</TD></TR></TABLE>
<P align=center>The accompanying notes are an integral part of the consolidated
financial statements </P>
<TABLE
style="BORDER-COLOR: black; BORDER-COLLAPSE: collapse; FONT-SIZE: 10pt; "
border=0 cellSpacing=0 cellPadding=0 width="100%">
  <TR vAlign=top>
    <TD style="BORDER-TOP: #000000 1px solid" align=right>7 | <FONT
      color=#7e7e7e>P a g e</FONT> </TD>
  </TR>
</TABLE>
<HR style="PAGE-BREAK-AFTER: always" align=center color=black SIZE=5
width="100%" noShade>
<A name=page_8></A><BR>
<TABLE
style="BORDER-COLOR: black; BORDER-COLLAPSE: collapse; FONT-SIZE: 10pt; "
border=0 cellSpacing=0 cellPadding=0 width="100%">

  <TR vAlign=top>
    <TD align=left><FONT size=4><B>Silver Standard Resources Inc. </B></FONT></TD>
  </TR>
  <TR vAlign=top>
    <TD align=left><FONT size=3>Consolidated Statements of Comprehensive
      Income </FONT></TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left><FONT size=3>For
      the years ended December 31, 2011 and 2010 </FONT></TD></TR>
  <TR vAlign=top>
    <TD align=left>(expressed in thousands of United States dollars)
  </TD></TR></TABLE><BR>
<TABLE
style="BORDER-COLOR: black; BORDER-COLLAPSE: collapse; FONT-SIZE: 10pt; "
border=0 cellSpacing=0 cellPadding=0 width="100%">
  <TR vAlign=top>
    <TD align=left></TD>
    <TD  width="8%" align=center><STRONG>Note</STRONG> </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 style="BORDER-BOTTOM: #000000 1px solid" align=left>&nbsp; </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="8%"
    align=center>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="1%"
    align=right>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="12%" align=right>$</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="2%"
    align=right>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="1%"
    align=right>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="12%" align=right>$</TD>
  <TD style="BORDER-BOTTOM: #000000 1px solid"  width="2%"
    align=right>&nbsp;</TD>
  </TR>
  <TR>
    <TD>&nbsp; </TD>
    <TD  width="8%" align=center>&nbsp;</TD>
    <TD  width="1%" align=right>&nbsp;</TD>
    <TD width="12%" align=right>&nbsp; </TD>
    <TD  width="2%" align=right>&nbsp;</TD>
    <TD  width="1%" align=right>&nbsp;</TD>
    <TD width="12%" align=right>&nbsp; </TD>
    <TD  width="2%" align=right>&nbsp;</TD></TR>
  <TR>
    <TD>&nbsp; </TD>
    <TD  width="8%" align=center>&nbsp;</TD>
    <TD  width="1%" align=right>&nbsp;</TD>
    <TD width="12%" align=right>&nbsp; </TD>
    <TD  width="2%" align=right>&nbsp;</TD>
    <TD  width="1%" align=right>&nbsp;</TD>
    <TD width="12%" align=right>&nbsp; </TD>
    <TD  width="2%" align=right>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff
      align=left>Net income for the period attributable to shareholders </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff vAlign=bottom
     width="8%" align=center>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff vAlign=bottom
     width="1%" align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff vAlign=bottom
    width="12%" align=right><B>80,128 </B></TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff vAlign=bottom
     width="2%" align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff vAlign=bottom
     width="1%" align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff vAlign=bottom
    width="12%" align=right>338,455 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff vAlign=bottom
     width="2%" align=left>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left>Other comprehensive income (loss): </TD>
    <TD vAlign=bottom  width="8%" align=center>&nbsp;</TD>
    <TD vAlign=bottom  width="1%" align=right>&nbsp;</TD>
    <TD vAlign=bottom width="12%" align=right>&nbsp; </TD>
    <TD vAlign=bottom  width="2%" align=right>&nbsp;</TD>
    <TD vAlign=bottom  width="1%" align=right>&nbsp;</TD>
    <TD vAlign=bottom width="12%" align=right>&nbsp; </TD>
    <TD vAlign=bottom  width="2%" align=right>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD bgColor=#e6efff align=left>&nbsp; &nbsp; &nbsp;Unrealized gain (loss)
      on marketable securities, net of tax </TD>
    <TD bgColor=#e6efff vAlign=bottom  width="8%"
    align=center>&nbsp;</TD>
    <TD bgColor=#e6efff vAlign=bottom  width="1%"
    align=left>&nbsp;</TD>
    <TD bgColor=#e6efff vAlign=bottom width="12%"
align=right><B>(13,820</B></TD>
    <TD bgColor=#e6efff vAlign=bottom  width="2%" align=left>)
</TD>
    <TD bgColor=#e6efff vAlign=bottom  width="1%"
    align=left>&nbsp;</TD>
    <TD bgColor=#e6efff vAlign=bottom width="12%" align=right>15,907 </TD>
    <TD bgColor=#e6efff vAlign=bottom  width="2%"
    align=left>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left>&nbsp;&nbsp;&nbsp;&nbsp; Realized gain on the disposal of
      marketable securities <BR>&nbsp;&nbsp;&nbsp;&nbsp; recycled to net income,
      net of tax </TD>
    <TD vAlign=bottom  width="8%" align=center>&nbsp;</TD>
    <TD vAlign=bottom  width="1%" align=left>&nbsp;</TD>
    <TD vAlign=bottom width="12%" align=right><B>(4,731</B></TD>
    <TD vAlign=bottom  width="2%" align=left>) </TD>
    <TD vAlign=bottom  width="1%" align=left>&nbsp;</TD>
    <TD vAlign=bottom width="12%" align=right>(2,645</TD>
    <TD vAlign=bottom  width="2%" align=left>) </TD></TR>
  <TR vAlign=top>
    <TD bgColor=#e6efff align=left>&nbsp; &nbsp; &nbsp;Share of other
      comprehensive loss of associate </TD>
    <TD bgColor=#e6efff vAlign=bottom  width="8%" align=center>8 </TD>
    <TD bgColor=#e6efff vAlign=bottom  width="1%"
    align=left>&nbsp;</TD>
    <TD bgColor=#e6efff vAlign=bottom width="12%" align=right><B>(3,516</B></TD>
    <TD bgColor=#e6efff vAlign=bottom  width="2%" align=left>)
</TD>
    <TD bgColor=#e6efff vAlign=bottom  width="1%"
    align=left>&nbsp;</TD>
    <TD bgColor=#e6efff vAlign=bottom width="12%" align=right>- </TD>
    <TD bgColor=#e6efff vAlign=bottom  width="2%"
    align=left>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>&nbsp; &nbsp;
      &nbsp;Cumulative translation adjustment </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom
    width="8%" align=center>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom
    width="1%" align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom width="12%"
    align=right><B>(2,163</B></TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom
    width="2%" align=left>) </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom
    width="1%" align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom width="12%"
    align=right>1,832 </TD>
  <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom
    width="2%" align=left>&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD bgColor=#e6efff align=left>Other comprehensive income (loss) </TD>
    <TD bgColor=#e6efff vAlign=bottom  width="8%"
    align=center>&nbsp;</TD>
    <TD bgColor=#e6efff vAlign=bottom  width="1%"
    align=left>&nbsp;</TD>
    <TD bgColor=#e6efff vAlign=bottom width="12%"
align=right><B>(24,230</B></TD>
    <TD bgColor=#e6efff vAlign=bottom  width="2%" align=left>)
</TD>
    <TD bgColor=#e6efff vAlign=bottom  width="1%"
    align=left>&nbsp;</TD>
    <TD bgColor=#e6efff vAlign=bottom width="12%" align=right>15,094 </TD>
    <TD bgColor=#e6efff vAlign=bottom  width="2%"
    align=left>&nbsp;</TD></TR>
  <TR>
    <TD>&nbsp; </TD>
    <TD vAlign=bottom  width="8%" align=center>&nbsp;</TD>
    <TD vAlign=bottom  width="1%" align=right>&nbsp;</TD>
    <TD vAlign=bottom width="12%" align=right>&nbsp; </TD>
    <TD vAlign=bottom  width="2%" align=right>&nbsp;</TD>
    <TD vAlign=bottom  width="1%" align=right>&nbsp;</TD>
    <TD vAlign=bottom width="12%" align=right>&nbsp; </TD>
    <TD vAlign=bottom  width="2%" align=right>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD bgColor=#e6efff align=left>Total comprehensive income attributable to
      shareholders </TD>
    <TD bgColor=#e6efff vAlign=bottom  width="8%"
    align=center>&nbsp;</TD>
    <TD bgColor=#e6efff vAlign=bottom  width="1%"
    align=left>&nbsp;</TD>
    <TD bgColor=#e6efff vAlign=bottom width="12%" align=right><B>55,898
</B></TD>
    <TD bgColor=#e6efff vAlign=bottom  width="2%"
    align=left>&nbsp;</TD>
    <TD bgColor=#e6efff vAlign=bottom  width="1%"
    align=left>&nbsp;</TD>
    <TD bgColor=#e6efff vAlign=bottom width="12%" align=right>353,549 </TD>
    <TD bgColor=#e6efff vAlign=bottom  width="2%"
    align=left>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>Non-controlling
      interests </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom
    width="8%" align=center>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom
    width="1%" align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom width="12%"
    align=right><B>- </B></TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom
    width="2%" align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom
    width="1%" align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom width="12%"
    align=right>- </TD>
  <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom
    width="2%" align=left>&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 2px solid" bgColor=#e6efff
      align=left><B>Total comprehensive income </B></TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" bgColor=#e6efff vAlign=bottom
     width="8%" align=center>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" bgColor=#e6efff vAlign=bottom
     width="1%" align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" bgColor=#e6efff vAlign=bottom
    width="12%" align=right><B>55,898 </B></TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" bgColor=#e6efff vAlign=bottom
     width="2%" align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" bgColor=#e6efff vAlign=bottom
     width="1%" align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" bgColor=#e6efff vAlign=bottom
    width="12%" align=right>353,549 </TD>
  <TD style="BORDER-BOTTOM: #000000 2px solid" bgColor=#e6efff vAlign=bottom
     width="2%" align=left>&nbsp;</TD>
  </TR></TABLE>
<P align=center>The accompanying notes are an integral part of the consolidated
financial statements </P>
<TABLE
style="BORDER-COLOR: black; BORDER-COLLAPSE: collapse; FONT-SIZE: 10pt; "
border=0 cellSpacing=0 cellPadding=0 width="100%">
  <TR vAlign=top>
    <TD style="BORDER-TOP: #000000 1px solid" align=right>8 | <FONT
      color=#7e7e7e>P a g e</FONT> </TD>
  </TR>
</TABLE>
<HR style="PAGE-BREAK-AFTER: always" align=center color=black SIZE=5
width="100%" noShade>
<A name=page_9></A><BR>
<TABLE
style="BORDER-COLOR: black; BORDER-COLLAPSE: collapse; FONT-SIZE: 10pt; "
border=0 cellSpacing=0 cellPadding=0 width="100%">

  <TR vAlign=top>
    <TD align=left><B><FONT size=4>Silver Standard Resources Inc.
    </FONT></B></TD></TR>
  <TR vAlign=top>
    <TD align=left><FONT size=3>Consolidated Statements of Changes in
      Shareholders&#146; Equity </FONT></TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left><FONT size=3>For
      the years ended December 31, 2011 and 2010 </FONT></TD></TR>
  <TR vAlign=top>
    <TD align=left>(expressed in thousands of United States dollars)
  </TD></TR></TABLE><BR>
<TABLE
style="BORDER-COLOR: black; BORDER-COLLAPSE: collapse; FONT-SIZE: 9pt; "
border=0 cellSpacing=0 cellPadding=0 width="100%">
  <TR vAlign=top>
    <TD align=left >&nbsp; </TD>
    <TD  width="6%" align=center vAlign=bottom nowrap><B>Note </B></TD>
    <TD
    width="1%" align=left vAlign=bottom nowrap style="BORDER-BOTTOM: #000000 1px solid">&nbsp;</TD>
    <TD colspan="4"
    align=center vAlign=bottom nowrap style="BORDER-BOTTOM: #000000 1px solid"><B>Common Shares </B></TD>
    <TD
    width="2%" align=left vAlign=bottom nowrap style="BORDER-BOTTOM: #000000 1px solid">&nbsp;</TD>
    <TD  width="1%" align=left vAlign=bottom nowrap>&nbsp;</TD>
    <TD width="6%" align=right vAlign=bottom nowrap><B>Other </B></TD>
    <TD  width="2%" align=left vAlign=bottom nowrap>&nbsp;</TD>
    <TD  width="1%" align=left vAlign=bottom nowrap>&nbsp;</TD>
    <TD width="10%" align=right vAlign=bottom nowrap><B>Retained earnings </B></TD>
    <TD  width="2%" align=left vAlign=bottom nowrap>&nbsp;</TD>
    <TD  width="1%" align=left vAlign=bottom nowrap>&nbsp;</TD>
    <TD width="8%" align=right vAlign=bottom nowrap><B>Total </B></TD>
    <TD  width="2%" align=left vAlign=bottom nowrap>&nbsp;</TD>
    <TD  width="1%" align=left vAlign=bottom nowrap>&nbsp;</TD>
    <TD width="6%" align=right vAlign=bottom nowrap><B>Non- </B></TD>
    <TD  width="2%" align=left vAlign=bottom nowrap>&nbsp;</TD>
    <TD  width="1%" align=left vAlign=bottom nowrap>&nbsp;</TD>
    <TD width="6%" align=right vAlign=bottom nowrap><B>Total </B></TD>
    <TD vAlign=bottom  width="2%" align=left>&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left >&nbsp; </TD>
    <TD  width="6%" align=center vAlign=bottom nowrap>&nbsp;</TD>
    <TD  width="1%" align=left vAlign=bottom nowrap>&nbsp;</TD>
    <TD width="6%" align=right vAlign=bottom nowrap><B>Shares </B></TD>
    <TD  width="2%" align=right vAlign=bottom nowrap>&nbsp;</TD>
    <TD  width="1%" align=right vAlign=bottom nowrap>&nbsp;</TD>
    <TD width="6%" align=right vAlign=bottom nowrap><B>Amount </B></TD>
    <TD  width="2%" align=right vAlign=bottom nowrap>&nbsp;</TD>
    <TD  width="1%" align=right vAlign=bottom nowrap>&nbsp;</TD>
    <TD width="6%" align=right vAlign=bottom nowrap><B>reserves </B></TD>
    <TD  width="2%" align=right vAlign=bottom nowrap>&nbsp;</TD>
    <TD  width="1%" align=right vAlign=bottom nowrap>&nbsp;</TD>
    <TD width="10%" align=right vAlign=bottom nowrap><B>(accumulated </B></TD>
    <TD  width="2%" align=right vAlign=bottom nowrap>&nbsp;</TD>
    <TD  width="1%" align=right vAlign=bottom nowrap>&nbsp;</TD>
    <TD  width="8%"
      align=right vAlign=bottom nowrap><STRONG>attributable to </STRONG></TD>
    <TD  width="2%" align=right vAlign=bottom nowrap>&nbsp;</TD>
    <TD  width="1%" align=right vAlign=bottom nowrap>&nbsp;</TD>
    <TD  width="6%"
      align=right vAlign=bottom nowrap><STRONG>controlling</STRONG></TD>
    <TD  width="2%" align=right vAlign=bottom nowrap>&nbsp;</TD>
    <TD  width="1%" align=right vAlign=bottom nowrap>&nbsp;</TD>
    <TD width="6%" align=right vAlign=bottom nowrap><B>equity </B></TD>
    <TD vAlign=bottom  width="2%" align=left>&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left >&nbsp; </TD>
    <TD  width="6%" align=center vAlign=bottom nowrap>&nbsp;</TD>
    <TD  width="1%" align=left vAlign=bottom nowrap>&nbsp;</TD>
    <TD width="6%" align=right vAlign=bottom nowrap>&nbsp; </TD>
    <TD  width="2%" align=right vAlign=bottom nowrap>&nbsp;</TD>
    <TD  width="1%" align=right vAlign=bottom nowrap>&nbsp;</TD>
    <TD width="6%" align=right vAlign=bottom nowrap>&nbsp; </TD>
    <TD  width="2%" align=right vAlign=bottom nowrap>&nbsp;</TD>
    <TD  width="1%" align=right vAlign=bottom nowrap>&nbsp;</TD>
    <TD width="6%" align=right vAlign=bottom nowrap><B>(note 16</B></TD>
    <TD  width="2%" align=left vAlign=bottom nowrap>) </TD>
    <TD  width="1%" align=right vAlign=bottom nowrap>&nbsp;</TD>
    <TD width="10%" align=right vAlign=bottom nowrap><B>deficit) </B></TD>
    <TD  width="2%" align=right vAlign=bottom nowrap>&nbsp;</TD>
    <TD  width="1%" align=right vAlign=bottom nowrap>&nbsp;</TD>
    <TD width="8%" align=right vAlign=bottom nowrap><B>shareholders </B></TD>
    <TD  width="2%" align=right vAlign=bottom nowrap>&nbsp;</TD>
    <TD  width="1%" align=right vAlign=bottom nowrap>&nbsp;</TD>
    <TD width="6%" align=right vAlign=bottom nowrap><B>Interest </B></TD>
    <TD  width="2%" align=right vAlign=bottom nowrap>&nbsp;</TD>
    <TD  width="1%" align=right vAlign=bottom nowrap>&nbsp;</TD>
    <TD width="6%" align=right vAlign=bottom nowrap>&nbsp; </TD>
    <TD vAlign=bottom  width="2%" align=left>&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left
      >&nbsp; </TD>
    <TD
    width="6%" align=center vAlign=bottom nowrap style="BORDER-BOTTOM: #000000 1px solid">&nbsp;</TD>
    <TD
    width="1%" align=left vAlign=bottom nowrap style="BORDER-BOTTOM: #000000 1px solid">&nbsp;</TD>
    <TD width="6%"
    align=right vAlign=bottom nowrap style="BORDER-BOTTOM: #000000 1px solid"><B>000's </B></TD>
    <TD
    width="2%" align=right vAlign=bottom nowrap style="BORDER-BOTTOM: #000000 1px solid">&nbsp;</TD>
    <TD
    width="1%" align=right vAlign=bottom nowrap style="BORDER-BOTTOM: #000000 1px solid">&nbsp;</TD>
    <TD width="6%"
    align=right vAlign=bottom nowrap style="BORDER-BOTTOM: #000000 1px solid"><B>$</B></TD>
    <TD
    width="2%" align=right vAlign=bottom nowrap style="BORDER-BOTTOM: #000000 1px solid">&nbsp;</TD>
    <TD
    width="1%" align=right vAlign=bottom nowrap style="BORDER-BOTTOM: #000000 1px solid">&nbsp;</TD>
    <TD width="6%"
    align=right vAlign=bottom nowrap style="BORDER-BOTTOM: #000000 1px solid"><B>$</B></TD>
    <TD
    width="2%" align=right vAlign=bottom nowrap style="BORDER-BOTTOM: #000000 1px solid">&nbsp;</TD>
    <TD
    width="1%" align=right vAlign=bottom nowrap style="BORDER-BOTTOM: #000000 1px solid">&nbsp;</TD>
    <TD width="10%"
    align=right vAlign=bottom nowrap style="BORDER-BOTTOM: #000000 1px solid"><B>$</B></TD>
    <TD
    width="2%" align=right vAlign=bottom nowrap style="BORDER-BOTTOM: #000000 1px solid">&nbsp;</TD>
    <TD
    width="1%" align=right vAlign=bottom nowrap style="BORDER-BOTTOM: #000000 1px solid">&nbsp;</TD>
    <TD width="8%"
    align=right vAlign=bottom nowrap style="BORDER-BOTTOM: #000000 1px solid"><B>$</B></TD>
    <TD
    width="2%" align=right vAlign=bottom nowrap style="BORDER-BOTTOM: #000000 1px solid">&nbsp;</TD>
    <TD
    width="1%" align=right vAlign=bottom nowrap style="BORDER-BOTTOM: #000000 1px solid">&nbsp;</TD>
    <TD width="6%"
    align=right vAlign=bottom nowrap style="BORDER-BOTTOM: #000000 1px solid">$</TD>
    <TD
    width="2%" align=right vAlign=bottom nowrap style="BORDER-BOTTOM: #000000 1px solid">&nbsp;</TD>
    <TD
    width="1%" align=right vAlign=bottom nowrap style="BORDER-BOTTOM: #000000 1px solid">&nbsp;</TD>
    <TD width="6%"
    align=right vAlign=bottom nowrap style="BORDER-BOTTOM: #000000 1px solid"><B>$</B></TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom
    width="2%" align=right>&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD bgColor=#e6efff align=left ><B>Balance, January 1, 2010 </B></TD>
    <TD bgColor=#e6efff vAlign=bottom  width="6%"
    align=center>&nbsp;</TD>
    <TD bgColor=#e6efff vAlign=bottom  width="1%"
    align=left>&nbsp;</TD>
    <TD bgColor=#e6efff vAlign=bottom width="6%" align=right>71,965 </TD>
    <TD bgColor=#e6efff vAlign=bottom  width="2%"
    align=left>&nbsp;</TD>
    <TD bgColor=#e6efff vAlign=bottom  width="1%"
    align=left>&nbsp;</TD>
    <TD bgColor=#e6efff vAlign=bottom width="6%" align=right>538,700 </TD>
    <TD bgColor=#e6efff vAlign=bottom  width="2%"
    align=left>&nbsp;</TD>
    <TD bgColor=#e6efff vAlign=bottom  width="1%"
    align=left>&nbsp;</TD>
    <TD bgColor=#e6efff vAlign=bottom width="6%" align=right>46,966 </TD>
    <TD bgColor=#e6efff vAlign=bottom  width="2%"
    align=left>&nbsp;</TD>
    <TD bgColor=#e6efff vAlign=bottom  width="1%"
    align=left>&nbsp;</TD>
    <TD bgColor=#e6efff vAlign=bottom width="10%" align=right>(146,999</TD>
    <TD bgColor=#e6efff vAlign=bottom  width="2%" align=left>) </TD>
    <TD bgColor=#e6efff vAlign=bottom  width="1%"
    align=left>&nbsp;</TD>
    <TD bgColor=#e6efff vAlign=bottom width="8%" align=right>438,667 </TD>
    <TD bgColor=#e6efff vAlign=bottom  width="2%"
    align=left>&nbsp;</TD>
    <TD bgColor=#e6efff vAlign=bottom  width="1%"
    align=left>&nbsp;</TD>
    <TD bgColor=#e6efff vAlign=bottom width="6%" align=right>496 </TD>
    <TD bgColor=#e6efff vAlign=bottom  width="2%"
    align=left>&nbsp;</TD>
    <TD bgColor=#e6efff vAlign=bottom  width="1%"
    align=left>&nbsp;</TD>
    <TD bgColor=#e6efff vAlign=bottom width="6%" align=right>439,163 </TD>
    <TD bgColor=#e6efff vAlign=bottom  width="2%"
    align=left>&nbsp;</TD>
  </TR>
  <TR>
    <TD >&nbsp; </TD>
    <TD vAlign=bottom  width="6%" align=center>&nbsp;</TD>
    <TD vAlign=bottom  width="1%">&nbsp;</TD>
    <TD vAlign=bottom width="6%">&nbsp; </TD>
    <TD vAlign=bottom  width="2%">&nbsp;</TD>
    <TD vAlign=bottom  width="1%">&nbsp;</TD>
    <TD vAlign=bottom width="6%">&nbsp; </TD>
    <TD vAlign=bottom  width="2%">&nbsp;</TD>
    <TD vAlign=bottom  width="1%">&nbsp;</TD>
    <TD vAlign=bottom width="6%">&nbsp; </TD>
    <TD vAlign=bottom  width="2%">&nbsp;</TD>
    <TD vAlign=bottom  width="1%">&nbsp;</TD>
    <TD vAlign=bottom width="10%">&nbsp; </TD>
    <TD vAlign=bottom  width="2%">&nbsp;</TD>
    <TD vAlign=bottom  width="1%">&nbsp;</TD>
    <TD vAlign=bottom width="8%">&nbsp; </TD>
    <TD vAlign=bottom  width="2%">&nbsp;</TD>
    <TD vAlign=bottom  width="1%">&nbsp;</TD>
    <TD vAlign=bottom width="6%">&nbsp; </TD>
    <TD vAlign=bottom  width="2%">&nbsp;</TD>
    <TD vAlign=bottom  width="1%">&nbsp;</TD>
    <TD vAlign=bottom width="6%">&nbsp; </TD>
    <TD vAlign=bottom  width="2%">&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD bgColor=#e6efff align=left >&nbsp; &nbsp; &nbsp;Issue of ordinary shares,
      net of costs </TD>
    <TD bgColor=#e6efff vAlign=bottom  width="6%"
    align=center>&nbsp;</TD>
    <TD bgColor=#e6efff vAlign=bottom  width="1%"
    align=left>&nbsp;</TD>
    <TD bgColor=#e6efff vAlign=bottom width="6%" align=right>6,729 </TD>
    <TD bgColor=#e6efff vAlign=bottom  width="2%"
    align=left>&nbsp;</TD>
    <TD bgColor=#e6efff vAlign=bottom  width="1%"
    align=left>&nbsp;</TD>
    <TD bgColor=#e6efff vAlign=bottom width="6%" align=right>114,677 </TD>
    <TD bgColor=#e6efff vAlign=bottom  width="2%"
    align=left>&nbsp;</TD>
    <TD bgColor=#e6efff vAlign=bottom  width="1%"
    align=left>&nbsp;</TD>
    <TD bgColor=#e6efff vAlign=bottom width="6%" align=right>- </TD>
    <TD bgColor=#e6efff vAlign=bottom  width="2%"
    align=left>&nbsp;</TD>
    <TD bgColor=#e6efff vAlign=bottom  width="1%"
    align=left>&nbsp;</TD>
    <TD bgColor=#e6efff vAlign=bottom width="10%" align=right>- </TD>
    <TD bgColor=#e6efff vAlign=bottom  width="2%"
    align=left>&nbsp;</TD>
    <TD bgColor=#e6efff vAlign=bottom  width="1%"
    align=left>&nbsp;</TD>
    <TD bgColor=#e6efff vAlign=bottom width="8%" align=right>114,677 </TD>
    <TD bgColor=#e6efff vAlign=bottom  width="2%"
    align=left>&nbsp;</TD>
    <TD bgColor=#e6efff vAlign=bottom  width="1%"
    align=left>&nbsp;</TD>
    <TD bgColor=#e6efff vAlign=bottom width="6%" align=right>- </TD>
    <TD bgColor=#e6efff vAlign=bottom  width="2%"
    align=left>&nbsp;</TD>
    <TD bgColor=#e6efff vAlign=bottom  width="1%"
    align=left>&nbsp;</TD>
    <TD bgColor=#e6efff vAlign=bottom width="6%" align=right>114,677 </TD>
    <TD bgColor=#e6efff vAlign=bottom  width="2%"
    align=left>&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left >&nbsp; &nbsp; &nbsp;Exercise of stock options </TD>
    <TD vAlign=bottom  width="6%" align=center>&nbsp;</TD>
    <TD vAlign=bottom  width="1%" align=left>&nbsp;</TD>
    <TD vAlign=bottom width="6%" align=right>971 </TD>
    <TD vAlign=bottom  width="2%" align=left>&nbsp;</TD>
    <TD vAlign=bottom  width="1%" align=left>&nbsp;</TD>
    <TD vAlign=bottom width="6%" align=right>23,274 </TD>
    <TD vAlign=bottom  width="2%" align=left>&nbsp;</TD>
    <TD vAlign=bottom  width="1%" align=left>&nbsp;</TD>
    <TD vAlign=bottom width="6%" align=right>(6,956</TD>
    <TD vAlign=bottom  width="2%" align=left>) </TD>
    <TD vAlign=bottom  width="1%" align=left>&nbsp;</TD>
    <TD vAlign=bottom width="10%" align=right>- </TD>
    <TD vAlign=bottom  width="2%" align=left>&nbsp;</TD>
    <TD vAlign=bottom  width="1%" align=left>&nbsp;</TD>
    <TD vAlign=bottom width="8%" align=right>16,318 </TD>
    <TD vAlign=bottom  width="2%" align=left>&nbsp;</TD>
    <TD vAlign=bottom  width="1%" align=left>&nbsp;</TD>
    <TD vAlign=bottom width="6%" align=right>- </TD>
    <TD vAlign=bottom  width="2%" align=left>&nbsp;</TD>
    <TD vAlign=bottom  width="1%" align=left>&nbsp;</TD>
    <TD vAlign=bottom width="6%" align=right>16,318 </TD>
    <TD vAlign=bottom  width="2%" align=left>&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD bgColor=#e6efff align=left >&nbsp; &nbsp; &nbsp;Share-based compensation
    </TD>
    <TD bgColor=#e6efff vAlign=bottom  width="6%"
    align=center>&nbsp;</TD>
    <TD bgColor=#e6efff vAlign=bottom  width="1%"
    align=left>&nbsp;</TD>
    <TD bgColor=#e6efff vAlign=bottom width="6%" align=right>- </TD>
    <TD bgColor=#e6efff vAlign=bottom  width="2%"
    align=left>&nbsp;</TD>
    <TD bgColor=#e6efff vAlign=bottom  width="1%"
    align=left>&nbsp;</TD>
    <TD bgColor=#e6efff vAlign=bottom width="6%" align=right>- </TD>
    <TD bgColor=#e6efff vAlign=bottom  width="2%"
    align=left>&nbsp;</TD>
    <TD bgColor=#e6efff vAlign=bottom  width="1%"
    align=left>&nbsp;</TD>
    <TD bgColor=#e6efff vAlign=bottom width="6%" align=right>8,153 </TD>
    <TD bgColor=#e6efff vAlign=bottom  width="2%"
    align=left>&nbsp;</TD>
    <TD bgColor=#e6efff vAlign=bottom  width="1%"
    align=left>&nbsp;</TD>
    <TD bgColor=#e6efff vAlign=bottom width="10%" align=right>- </TD>
    <TD bgColor=#e6efff vAlign=bottom  width="2%"
    align=left>&nbsp;</TD>
    <TD bgColor=#e6efff vAlign=bottom  width="1%"
    align=left>&nbsp;</TD>
    <TD bgColor=#e6efff vAlign=bottom width="8%" align=right>8,153 </TD>
    <TD bgColor=#e6efff vAlign=bottom  width="2%"
    align=left>&nbsp;</TD>
    <TD bgColor=#e6efff vAlign=bottom  width="1%"
    align=left>&nbsp;</TD>
    <TD bgColor=#e6efff vAlign=bottom width="6%" align=right>- </TD>
    <TD bgColor=#e6efff vAlign=bottom  width="2%"
    align=left>&nbsp;</TD>
    <TD bgColor=#e6efff vAlign=bottom  width="1%"
    align=left>&nbsp;</TD>
    <TD bgColor=#e6efff vAlign=bottom width="6%" align=right>8,153 </TD>
    <TD bgColor=#e6efff vAlign=bottom  width="2%"
    align=left>&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left nowrap style="BORDER-BOTTOM: #000000 1px solid"
      >&nbsp;&nbsp;&nbsp;&nbsp; Total comprehensive income for the<BR>
      &nbsp;&nbsp;&nbsp;&nbsp;
    &nbsp;year </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom
    width="6%" align=center>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom
    width="1%" align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom width="6%"
    align=right>- </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom
    width="2%" align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom
    width="1%" align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom width="6%"
    align=right>- </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom
    width="2%" align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom
    width="1%" align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom width="6%"
    align=right>15,094 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom
    width="2%" align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom
    width="1%" align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom width="10%"
    align=right>338,455 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom
    width="2%" align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom
    width="1%" align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom width="8%"
    align=right>353,549 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom
    width="2%" align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom
    width="1%" align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom width="6%"
    align=right>- </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom
    width="2%" align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom
    width="1%" align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom width="6%"
    align=right>353,549 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom
    width="2%" align=left>&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 2px solid" bgColor=#e6efff align=left
    ><B>Balance, December 31, 2010 </B></TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" bgColor=#e6efff vAlign=bottom
     width="6%" align=center>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" bgColor=#e6efff vAlign=bottom
     width="1%" align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" bgColor=#e6efff vAlign=bottom
    width="6%" align=right>79,665 </TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" bgColor=#e6efff vAlign=bottom
     width="2%" align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" bgColor=#e6efff vAlign=bottom
     width="1%" align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" bgColor=#e6efff vAlign=bottom
    width="6%" align=right>676,651 </TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" bgColor=#e6efff vAlign=bottom
     width="2%" align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" bgColor=#e6efff vAlign=bottom
     width="1%" align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" bgColor=#e6efff vAlign=bottom
    width="6%" align=right>63,257 </TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" bgColor=#e6efff vAlign=bottom
     width="2%" align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" bgColor=#e6efff vAlign=bottom
     width="1%" align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" bgColor=#e6efff vAlign=bottom
    width="10%" align=right>191,456 </TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" bgColor=#e6efff vAlign=bottom
     width="2%" align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" bgColor=#e6efff vAlign=bottom
     width="1%" align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" bgColor=#e6efff vAlign=bottom
    width="8%" align=right>931,364 </TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" bgColor=#e6efff vAlign=bottom
     width="2%" align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" bgColor=#e6efff vAlign=bottom
     width="1%" align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" bgColor=#e6efff vAlign=bottom
    width="6%" align=right>496 </TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" bgColor=#e6efff vAlign=bottom
     width="2%" align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" bgColor=#e6efff vAlign=bottom
     width="1%" align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" bgColor=#e6efff vAlign=bottom
    width="6%" align=right>931,860 </TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" bgColor=#e6efff vAlign=bottom
     width="2%" align=left>&nbsp;</TD>
  </TR>
  <TR>
    <TD >&nbsp; </TD>
    <TD vAlign=bottom  width="6%" align=center>&nbsp;</TD>
    <TD vAlign=bottom  width="1%">&nbsp;</TD>
    <TD vAlign=bottom width="6%">&nbsp; </TD>
    <TD vAlign=bottom  width="2%">&nbsp;</TD>
    <TD vAlign=bottom  width="1%">&nbsp;</TD>
    <TD vAlign=bottom width="6%">&nbsp; </TD>
    <TD vAlign=bottom  width="2%">&nbsp;</TD>
    <TD vAlign=bottom  width="1%">&nbsp;</TD>
    <TD vAlign=bottom width="6%">&nbsp; </TD>
    <TD vAlign=bottom  width="2%">&nbsp;</TD>
    <TD vAlign=bottom  width="1%">&nbsp;</TD>
    <TD vAlign=bottom width="10%">&nbsp; </TD>
    <TD vAlign=bottom  width="2%">&nbsp;</TD>
    <TD vAlign=bottom  width="1%">&nbsp;</TD>
    <TD vAlign=bottom width="8%">&nbsp; </TD>
    <TD vAlign=bottom  width="2%">&nbsp;</TD>
    <TD vAlign=bottom  width="1%">&nbsp;</TD>
    <TD vAlign=bottom width="6%">&nbsp; </TD>
    <TD vAlign=bottom  width="2%">&nbsp;</TD>
    <TD vAlign=bottom  width="1%">&nbsp;</TD>
    <TD vAlign=bottom width="6%">&nbsp; </TD>
    <TD vAlign=bottom  width="2%">&nbsp;</TD>
  </TR>
  <TR>
    <TD bgColor=#e6efff >&nbsp; </TD>
    <TD bgColor=#e6efff vAlign=bottom  width="6%"
    align=center>&nbsp;</TD>
    <TD bgColor=#e6efff vAlign=bottom  width="1%">&nbsp;</TD>
    <TD bgColor=#e6efff vAlign=bottom width="6%">&nbsp; </TD>
    <TD bgColor=#e6efff vAlign=bottom  width="2%">&nbsp;</TD>
    <TD bgColor=#e6efff vAlign=bottom  width="1%">&nbsp;</TD>
    <TD bgColor=#e6efff vAlign=bottom width="6%">&nbsp; </TD>
    <TD bgColor=#e6efff vAlign=bottom  width="2%">&nbsp;</TD>
    <TD bgColor=#e6efff vAlign=bottom  width="1%">&nbsp;</TD>
    <TD bgColor=#e6efff vAlign=bottom width="6%">&nbsp; </TD>
    <TD bgColor=#e6efff vAlign=bottom  width="2%">&nbsp;</TD>
    <TD bgColor=#e6efff vAlign=bottom  width="1%">&nbsp;</TD>
    <TD bgColor=#e6efff vAlign=bottom width="10%">&nbsp; </TD>
    <TD bgColor=#e6efff vAlign=bottom  width="2%">&nbsp;</TD>
    <TD bgColor=#e6efff vAlign=bottom  width="1%">&nbsp;</TD>
    <TD bgColor=#e6efff vAlign=bottom width="8%">&nbsp; </TD>
    <TD bgColor=#e6efff vAlign=bottom  width="2%">&nbsp;</TD>
    <TD bgColor=#e6efff vAlign=bottom  width="1%">&nbsp;</TD>
    <TD bgColor=#e6efff vAlign=bottom width="6%">&nbsp; </TD>
    <TD bgColor=#e6efff vAlign=bottom  width="2%">&nbsp;</TD>
    <TD bgColor=#e6efff vAlign=bottom  width="1%">&nbsp;</TD>
    <TD bgColor=#e6efff vAlign=bottom width="6%">&nbsp; </TD>
    <TD bgColor=#e6efff vAlign=bottom  width="2%">&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left ><B>Balance, January 1, 2011 </B></TD>
    <TD vAlign=bottom  width="6%" align=center>&nbsp;</TD>
    <TD vAlign=bottom  width="1%" align=left>&nbsp;</TD>
    <TD vAlign=bottom width="6%" align=right>79,665 </TD>
    <TD vAlign=bottom  width="2%" align=left>&nbsp;</TD>
    <TD vAlign=bottom  width="1%" align=left>&nbsp;</TD>
    <TD vAlign=bottom width="6%" align=right>676,651 </TD>
    <TD vAlign=bottom  width="2%" align=left>&nbsp;</TD>
    <TD vAlign=bottom  width="1%" align=left>&nbsp;</TD>
    <TD vAlign=bottom width="6%" align=right>63,257 </TD>
    <TD vAlign=bottom  width="2%" align=left>&nbsp;</TD>
    <TD vAlign=bottom  width="1%" align=left>&nbsp;</TD>
    <TD vAlign=bottom width="10%" align=right>191,456 </TD>
    <TD vAlign=bottom  width="2%" align=left>&nbsp;</TD>
    <TD vAlign=bottom  width="1%" align=left>&nbsp;</TD>
    <TD vAlign=bottom width="8%" align=right>931,364 </TD>
    <TD vAlign=bottom  width="2%" align=left>&nbsp;</TD>
    <TD vAlign=bottom  width="1%" align=left>&nbsp;</TD>
    <TD vAlign=bottom width="6%" align=right>496 </TD>
    <TD vAlign=bottom  width="2%" align=left>&nbsp;</TD>
    <TD vAlign=bottom  width="1%" align=left>&nbsp;</TD>
    <TD vAlign=bottom width="6%" align=right>931,860 </TD>
    <TD vAlign=bottom  width="2%" align=left>&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD bgColor=#e6efff align=left >&nbsp; &nbsp; &nbsp;Exercise of stock options
    </TD>
    <TD bgColor=#e6efff vAlign=bottom  width="6%"
    align=center>&nbsp;</TD>
    <TD bgColor=#e6efff vAlign=bottom  width="1%"
    align=left>&nbsp;</TD>
    <TD bgColor=#e6efff vAlign=bottom width="6%" align=right>1,028 </TD>
    <TD bgColor=#e6efff vAlign=bottom  width="2%"
    align=left>&nbsp;</TD>
    <TD bgColor=#e6efff vAlign=bottom  width="1%"
    align=left>&nbsp;</TD>
    <TD bgColor=#e6efff vAlign=bottom width="6%" align=right>29,225 </TD>
    <TD bgColor=#e6efff vAlign=bottom  width="2%"
    align=left>&nbsp;</TD>
    <TD bgColor=#e6efff vAlign=bottom  width="1%"
    align=left>&nbsp;</TD>
    <TD bgColor=#e6efff vAlign=bottom width="6%" align=right>(8,990</TD>
    <TD bgColor=#e6efff vAlign=bottom  width="2%" align=left>) </TD>
    <TD bgColor=#e6efff vAlign=bottom  width="1%"
    align=left>&nbsp;</TD>
    <TD bgColor=#e6efff vAlign=bottom width="10%" align=right>- </TD>
    <TD bgColor=#e6efff vAlign=bottom  width="2%"
    align=left>&nbsp;</TD>
    <TD bgColor=#e6efff vAlign=bottom  width="1%"
    align=left>&nbsp;</TD>
    <TD bgColor=#e6efff vAlign=bottom width="8%" align=right>20,235 </TD>
    <TD bgColor=#e6efff vAlign=bottom  width="2%"
    align=left>&nbsp;</TD>
    <TD bgColor=#e6efff vAlign=bottom  width="1%"
    align=left>&nbsp;</TD>
    <TD bgColor=#e6efff vAlign=bottom width="6%" align=right>- </TD>
    <TD bgColor=#e6efff vAlign=bottom  width="2%"
    align=left>&nbsp;</TD>
    <TD bgColor=#e6efff vAlign=bottom  width="1%"
    align=left>&nbsp;</TD>
    <TD bgColor=#e6efff vAlign=bottom width="6%" align=right>20,235 </TD>
    <TD bgColor=#e6efff vAlign=bottom  width="2%"
    align=left>&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left >&nbsp; &nbsp; &nbsp;Share-based compensation </TD>
    <TD vAlign=bottom  width="6%" align=center>&nbsp;</TD>
    <TD vAlign=bottom  width="1%" align=left>&nbsp;</TD>
    <TD vAlign=bottom width="6%" align=right>- </TD>
    <TD vAlign=bottom  width="2%" align=left>&nbsp;</TD>
    <TD vAlign=bottom  width="1%" align=left>&nbsp;</TD>
    <TD vAlign=bottom width="6%" align=right>- </TD>
    <TD vAlign=bottom  width="2%" align=left>&nbsp;</TD>
    <TD vAlign=bottom  width="1%" align=left>&nbsp;</TD>
    <TD vAlign=bottom width="6%" align=right>4,676 </TD>
    <TD vAlign=bottom  width="2%" align=left>&nbsp;</TD>
    <TD vAlign=bottom  width="1%" align=left>&nbsp;</TD>
    <TD vAlign=bottom width="10%" align=right>- </TD>
    <TD vAlign=bottom  width="2%" align=left>&nbsp;</TD>
    <TD vAlign=bottom  width="1%" align=left>&nbsp;</TD>
    <TD vAlign=bottom width="8%" align=right>4,676 </TD>
    <TD vAlign=bottom  width="2%" align=left>&nbsp;</TD>
    <TD vAlign=bottom  width="1%" align=left>&nbsp;</TD>
    <TD vAlign=bottom width="6%" align=right>- </TD>
    <TD vAlign=bottom  width="2%" align=left>&nbsp;</TD>
    <TD vAlign=bottom  width="1%" align=left>&nbsp;</TD>
    <TD vAlign=bottom width="6%" align=right>4,676 </TD>
    <TD vAlign=bottom  width="2%" align=left>&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD bgColor=#e6efff align=left >&nbsp;&nbsp;&nbsp;&nbsp; Transactions with
      non-controlling <BR> &nbsp;&nbsp;&nbsp;&nbsp; interests </TD>
    <TD bgColor=#e6efff vAlign=bottom  width="6%" align=center>7 </TD>
    <TD bgColor=#e6efff vAlign=bottom  width="1%"
    align=left>&nbsp;</TD>
    <TD bgColor=#e6efff vAlign=bottom width="6%" align=right>- </TD>
    <TD bgColor=#e6efff vAlign=bottom  width="2%"
    align=left>&nbsp;</TD>
    <TD bgColor=#e6efff vAlign=bottom  width="1%"
    align=left>&nbsp;</TD>
    <TD bgColor=#e6efff vAlign=bottom width="6%" align=right>- </TD>
    <TD bgColor=#e6efff vAlign=bottom  width="2%"
    align=left>&nbsp;</TD>
    <TD bgColor=#e6efff vAlign=bottom  width="1%"
    align=left>&nbsp;</TD>
    <TD bgColor=#e6efff vAlign=bottom width="6%" align=right>(28,198</TD>
    <TD bgColor=#e6efff vAlign=bottom  width="2%" align=left>) </TD>
    <TD bgColor=#e6efff vAlign=bottom  width="1%"
    align=left>&nbsp;</TD>
    <TD bgColor=#e6efff vAlign=bottom width="10%" align=right>- </TD>
    <TD bgColor=#e6efff vAlign=bottom  width="2%"
    align=left>&nbsp;</TD>
    <TD bgColor=#e6efff vAlign=bottom  width="1%"
    align=left>&nbsp;</TD>
    <TD bgColor=#e6efff vAlign=bottom width="8%" align=right>(28,198</TD>
    <TD bgColor=#e6efff vAlign=bottom  width="2%" align=left>) </TD>
    <TD bgColor=#e6efff vAlign=bottom  width="1%"
    align=left>&nbsp;</TD>
    <TD bgColor=#e6efff vAlign=bottom width="6%" align=right>(496</TD>
    <TD bgColor=#e6efff vAlign=bottom  width="2%" align=left>) </TD>
    <TD bgColor=#e6efff vAlign=bottom  width="1%"
    align=left>&nbsp;</TD>
    <TD bgColor=#e6efff vAlign=bottom width="6%" align=right>(28,694</TD>
    <TD bgColor=#e6efff vAlign=bottom  width="2%" align=left>) </TD>
  </TR>
  <TR vAlign=top>
    <TD align=left nowrap style="BORDER-BOTTOM: #000000 1px solid"
      >&nbsp;&nbsp;&nbsp;&nbsp; Total comprehensive income (loss) for <BR>
      &nbsp;&nbsp;&nbsp;&nbsp;
    the period </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom
    width="6%" align=center>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom
    width="1%" align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom width="6%"
    align=right>- </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom
    width="2%" align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom
    width="1%" align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom width="6%"
    align=right>- </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom
    width="2%" align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom
    width="1%" align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom width="6%"
    align=right>(24,230</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom
    width="2%" align=left>) </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom
    width="1%" align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom width="10%"
    align=right>80,128 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom
    width="2%" align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom
    width="1%" align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom width="8%"
    align=right>55,898 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom
    width="2%" align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom
    width="1%" align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom width="6%"
    align=right>- </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom
    width="2%" align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom
    width="1%" align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom width="6%"
    align=right>55,898 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom
    width="2%" align=left>&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 2px solid" bgColor=#e6efff align=left
    ><B>Balance, December 31, 2011 </B></TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" bgColor=#e6efff vAlign=bottom
     width="6%" align=center>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" bgColor=#e6efff vAlign=bottom
     width="1%" align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" bgColor=#e6efff vAlign=bottom
    width="6%" align=right><B>80,693 </B></TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" bgColor=#e6efff vAlign=bottom
     width="2%" align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" bgColor=#e6efff vAlign=bottom
     width="1%" align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" bgColor=#e6efff vAlign=bottom
    width="6%" align=right><B>705,876 </B></TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" bgColor=#e6efff vAlign=bottom
     width="2%" align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" bgColor=#e6efff vAlign=bottom
     width="1%" align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" bgColor=#e6efff vAlign=bottom
    width="6%" align=right><B>6,515 </B></TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" bgColor=#e6efff vAlign=bottom
     width="2%" align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" bgColor=#e6efff vAlign=bottom
     width="1%" align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" bgColor=#e6efff vAlign=bottom
    width="10%" align=right><B>271,584 </B></TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" bgColor=#e6efff vAlign=bottom
     width="2%" align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" bgColor=#e6efff vAlign=bottom
     width="1%" align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" bgColor=#e6efff vAlign=bottom
    width="8%" align=right><B>983,975 </B></TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" bgColor=#e6efff vAlign=bottom
     width="2%" align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" bgColor=#e6efff vAlign=bottom
     width="1%" align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" bgColor=#e6efff vAlign=bottom
    width="6%" align=right><B>- </B></TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" bgColor=#e6efff vAlign=bottom
     width="2%" align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" bgColor=#e6efff vAlign=bottom
     width="1%" align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" bgColor=#e6efff vAlign=bottom
    width="6%" align=right><B>983,975 </B></TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" bgColor=#e6efff vAlign=bottom
     width="2%" align=left>&nbsp;</TD>
  </TR>
</TABLE>
<P align=center>The accompanying notes are an integral part of the consolidated
financial statements </P>
<TABLE
style="BORDER-COLOR: black; BORDER-COLLAPSE: collapse; FONT-SIZE: 10pt; "
border=0 cellSpacing=0 cellPadding=0 width="100%">
  <TR vAlign=top>
    <TD style="BORDER-TOP: #000000 1px solid" align=right>9 | <FONT
      color=#7e7e7e>P a g e</FONT> </TD>
  </TR>
</TABLE>
<HR style="PAGE-BREAK-AFTER: always" align=center color=black SIZE=5
width="100%" noShade>
<A name=page_10></A><BR>
<TABLE
style="BORDER-COLOR: black; BORDER-COLLAPSE: collapse; FONT-SIZE: 10pt; "
border=0 cellSpacing=0 cellPadding=0 width="100%">

  <TR vAlign=top>
    <TD align=left><FONT size=4><B>Silver Standard Resources Inc.</B>
    </FONT></TD></TR>
  <TR vAlign=top>
    <TD align=left><FONT size=3>Consolidated Statements of Cash Flows
    </FONT></TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left><FONT size=3>For
      the years ended December 31, 2011 and 2010 </FONT></TD></TR>
  <TR vAlign=top>
    <TD align=left>(expressed in thousands of United States dollars)
  </TD></TR></TABLE><BR>
<TABLE
style="BORDER-COLOR: black; BORDER-COLLAPSE: collapse; FONT-SIZE: 10pt; "
border=0 cellSpacing=0 cellPadding=0 width="100%">

  <TR vAlign=top>
    <TD align=left>&nbsp; </TD>
    <TD  width="7%" align=center><B>Note</B> </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 style="BORDER-BOTTOM: #000000 1px solid">&nbsp; </TD>
    <TD  width="7%"
    align=center style="BORDER-BOTTOM: #000000 1px solid">&nbsp;</TD>
    <TD  width="1%"
    align=right style="BORDER-BOTTOM: #000000 1px solid">&nbsp;</TD>
    <TD width="12%" align=right style="BORDER-BOTTOM: #000000 1px solid"
    >$</TD>
    <TD  width="2%"
    align=right style="BORDER-BOTTOM: #000000 1px solid">&nbsp;</TD>
    <TD  width="1%"
    align=right style="BORDER-BOTTOM: #000000 1px solid">&nbsp;</TD>
    <TD width="12%" align=right style="BORDER-BOTTOM: #000000 1px solid"
    >$</TD>
  <TD  width="2%"
    align=right style="BORDER-BOTTOM: #000000 1px solid">&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD bgColor=#e6efff align=left><B>Cash flows from operating activities</B>
    </TD>
    <TD bgColor=#e6efff  width="7%" align=center>&nbsp;</TD>
    <TD bgColor=#e6efff  width="1%" align=right>&nbsp;</TD>
    <TD bgColor=#e6efff width="12%" align=right >&nbsp; </TD>
    <TD bgColor=#e6efff  width="2%" align=right>&nbsp;</TD>
    <TD bgColor=#e6efff  width="1%" align=right>&nbsp;</TD>
    <TD bgColor=#e6efff width="12%" align=right >&nbsp; </TD>
    <TD bgColor=#e6efff  width="2%" align=right>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left>Net income for the year </TD>
    <TD  width="7%" align=center>&nbsp;</TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="12%" align=right ><B>80,128</B> </TD>
    <TD  width="2%" align=left>&nbsp;</TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="12%" align=right >338,455 </TD>
    <TD  width="2%" align=left>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD bgColor=#e6efff align=left>Adjustments for: </TD>
    <TD bgColor=#e6efff  width="7%" align=center>&nbsp;</TD>
    <TD bgColor=#e6efff  width="1%" align=right>&nbsp;</TD>
    <TD bgColor=#e6efff width="12%" align=right >&nbsp; </TD>
    <TD bgColor=#e6efff  width="2%" align=right>&nbsp;</TD>
    <TD bgColor=#e6efff  width="1%" align=right>&nbsp;</TD>
    <TD bgColor=#e6efff width="12%" align=right >&nbsp; </TD>
    <TD bgColor=#e6efff  width="2%" align=right>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left>&nbsp; &nbsp;Depletion, depreciation and amortization </TD>
    <TD  width="7%" align=center>&nbsp;</TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="12%" align=right ><B>16,832</B> </TD>
    <TD  width="2%" align=left>&nbsp;</TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="12%" align=right >22,436 </TD>
    <TD  width="2%" align=left>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD bgColor=#e6efff align=left>&nbsp; &nbsp;Share-based payments </TD>
    <TD bgColor=#e6efff  width="7%" align=center>&nbsp;</TD>
    <TD bgColor=#e6efff  width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="12%" align=right ><B>4,754</B> </TD>
    <TD bgColor=#e6efff  width="2%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff  width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="12%" align=right >7,877 </TD>
    <TD bgColor=#e6efff  width="2%" align=left>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left>&nbsp; &nbsp;Close down and restoration provision </TD>
    <TD  width="7%" align=center>&nbsp;</TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="12%" align=right ><B>1,596</B> </TD>
    <TD  width="2%" align=left>&nbsp;</TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="12%" align=right >1,798 </TD>
    <TD  width="2%" align=left>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD bgColor=#e6efff align=left>&nbsp; &nbsp;Gain on sale of mineral
      property and property plant and equipment </TD>
    <TD bgColor=#e6efff  width="7%" align=center>&nbsp;</TD>
    <TD bgColor=#e6efff  width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="12%" align=right
><B>(49,856</B></TD>
    <TD bgColor=#e6efff  width="2%" align=left><B>)</B> </TD>
    <TD bgColor=#e6efff  width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="12%" align=right >(402,009</TD>
    <TD bgColor=#e6efff  width="2%" align=left>) </TD></TR>
  <TR vAlign=top>
    <TD align=left>&nbsp; &nbsp;Write-down of inventory to net realizable
      value </TD>
    <TD  width="7%" align=center>&nbsp;</TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="12%" align=right ><B>1,625</B> </TD>
    <TD  width="2%" align=left>&nbsp;</TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="12%" align=right >6,700 </TD>
    <TD  width="2%" align=left>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD bgColor=#e6efff align=left>&nbsp; &nbsp;Accretion expense on
      convertible notes </TD>
    <TD bgColor=#e6efff  width="7%" align=center>&nbsp;</TD>
    <TD bgColor=#e6efff  width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="12%" align=right ><B>9,188</B> </TD>
    <TD bgColor=#e6efff  width="2%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff  width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="12%" align=right >8,230 </TD>
    <TD bgColor=#e6efff  width="2%" align=left>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left>&nbsp; &nbsp;Accretion income on convertible debenture </TD>
    <TD  width="7%" align=center>&nbsp;</TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="12%" align=right ><B>(691</B></TD>
    <TD  width="2%" align=left><B>)</B> </TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="12%" align=right >(865</TD>
    <TD  width="2%" align=left>) </TD></TR>
  <TR vAlign=top>
    <TD bgColor=#e6efff align=left>&nbsp; &nbsp;Other income </TD>
    <TD bgColor=#e6efff  width="7%" align=center>&nbsp;</TD>
    <TD bgColor=#e6efff  width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="12%" align=right
><B>(19,136</B></TD>
    <TD bgColor=#e6efff  width="2%" align=left><B>)</B> </TD>
    <TD bgColor=#e6efff  width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="12%" align=right >(1,690</TD>
    <TD bgColor=#e6efff  width="2%" align=left>) </TD></TR>
  <TR vAlign=top>
    <TD align=left>&nbsp; &nbsp;Gain on partial disposal of associate </TD>
    <TD  width="7%" align=center>&nbsp;</TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="12%" align=right ><B>(38,776</B></TD>
    <TD  width="2%" align=left><B>)</B> </TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="12%" align=right >- </TD>
    <TD  width="2%" align=left>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD bgColor=#e6efff align=left>&nbsp; &nbsp;Deferred income tax expense
      (recovery) </TD>
    <TD bgColor=#e6efff  width="7%" align=center>&nbsp;</TD>
    <TD bgColor=#e6efff  width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="12%" align=right ><B>(4,950</B></TD>
    <TD bgColor=#e6efff  width="2%" align=left><B>)</B> </TD>
    <TD bgColor=#e6efff  width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="12%" align=right >29,594 </TD>
    <TD bgColor=#e6efff  width="2%" align=left>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left>&nbsp; &nbsp;Foreign exchange loss (gain) </TD>
    <TD  width="7%" align=center>&nbsp;</TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="12%" align=right ><B>6,618</B> </TD>
    <TD  width="2%" align=left>&nbsp;</TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="12%" align=right >4,309 </TD>
    <TD  width="2%" align=left>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff
      align=left>Net changes in non-cash working capital items </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff
    width="7%" align=center>25 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff
    width="1%" align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff width="12%"
    align=right ><B>(1,653</B></TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff
    width="2%" align=left><B>)</B> </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff
    width="1%" align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff width="12%"
    align=right >(25,944</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff
    width="2%" align=left>) </TD></TR>
  <TR>
    <TD>&nbsp; </TD>
    <TD  width="7%" align=center>&nbsp;</TD>
    <TD  width="1%" align=right>&nbsp;</TD>
    <TD width="12%" align=right >&nbsp; </TD>
    <TD  width="2%" align=right>&nbsp;</TD>
    <TD  width="1%" align=right>&nbsp;</TD>
    <TD width="12%" align=right >&nbsp; </TD>
    <TD  width="2%" align=right>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff
      align=left><B>Cash used in operating activities</B> </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff
    width="7%" align=center>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff
    width="1%" align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff width="12%"
    align=right ><B>5,679</B> </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff
    width="2%" align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff
    width="1%" align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff width="12%"
    align=right >(11,110</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff
    width="2%" align=left>) </TD></TR>
  <TR>
    <TD>&nbsp; </TD>
    <TD  width="7%" align=center>&nbsp;</TD>
    <TD  width="1%" align=right>&nbsp;</TD>
    <TD width="12%" align=right >&nbsp; </TD>
    <TD  width="2%" align=right>&nbsp;</TD>
    <TD  width="1%" align=right>&nbsp;</TD>
    <TD width="12%" align=right >&nbsp; </TD>
    <TD  width="2%" align=right>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD bgColor=#e6efff align=left><B>Cash flows from investing activities</B>
    </TD>
    <TD bgColor=#e6efff  width="7%" align=center>&nbsp;</TD>
    <TD bgColor=#e6efff  width="1%" align=right>&nbsp;</TD>
    <TD bgColor=#e6efff width="12%" align=right >&nbsp; </TD>
    <TD bgColor=#e6efff  width="2%" align=right>&nbsp;</TD>
    <TD bgColor=#e6efff  width="1%" align=right>&nbsp;</TD>
    <TD bgColor=#e6efff width="12%" align=right >&nbsp; </TD>
    <TD bgColor=#e6efff  width="2%" align=right>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left>Purchase of property, plant and equipment </TD>
    <TD  width="7%" align=center>&nbsp;</TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="12%" align=right ><B>(29,055</B></TD>
    <TD  width="2%" align=left><B>)</B> </TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="12%" align=right >(50,564</TD>
    <TD  width="2%" align=left>) </TD></TR>
  <TR vAlign=top>
    <TD bgColor=#e6efff align=left>Mineral property expenditures </TD>
    <TD bgColor=#e6efff  width="7%" align=center>&nbsp;</TD>
    <TD bgColor=#e6efff  width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="12%" align=right
><B>(36,379</B></TD>
    <TD bgColor=#e6efff  width="2%" align=left><B>)</B> </TD>
    <TD bgColor=#e6efff  width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="12%" align=right >(52,912</TD>
    <TD bgColor=#e6efff  width="2%" align=left>) </TD></TR>
  <TR vAlign=top>
    <TD align=left>Value added tax recoverable </TD>
    <TD  width="7%" align=center>&nbsp;</TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="12%" align=right ><B>(24,302</B></TD>
    <TD  width="2%" align=left><B>)</B> </TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="12%" align=right >(19,344</TD>
    <TD  width="2%" align=left>) </TD></TR>
  <TR vAlign=top>
    <TD bgColor=#e6efff align=left>Proceeds from sale of marketable securities
    </TD>
    <TD bgColor=#e6efff  width="7%" align=center>&nbsp;</TD>
    <TD bgColor=#e6efff  width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="12%" align=right ><B>-</B> </TD>
    <TD bgColor=#e6efff  width="2%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff  width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="12%" align=right >11,015 </TD>
    <TD bgColor=#e6efff  width="2%" align=left>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left>Acquisition of non-controlling interest </TD>
    <TD  width="7%" align=center>&nbsp;</TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="12%" align=right ><B>(18,172</B></TD>
    <TD  width="2%" align=left><B>)</B> </TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="12%" align=right >- </TD>
    <TD  width="2%" align=left>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD bgColor=#e6efff align=left>Proceeds from repayment of convertible
      debenture receivable </TD>
    <TD bgColor=#e6efff  width="7%" align=center>&nbsp;</TD>
    <TD bgColor=#e6efff  width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="12%" align=right ><B>10,060</B>
</TD>
    <TD bgColor=#e6efff  width="2%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff  width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="12%" align=right >- </TD>
    <TD bgColor=#e6efff  width="2%" align=left>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left>Net proceeds from partial disposal of associate </TD>
    <TD  width="7%" align=center>&nbsp;</TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="12%" align=right ><B>112,381</B> </TD>
    <TD  width="2%" align=left>&nbsp;</TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="12%" align=right >- </TD>
    <TD  width="2%" align=left>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff
      align=left>Net proceeds from sale of mineral properties </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff
    width="7%" align=center>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff
    width="1%" align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff width="12%"
    align=right ><B>56,447</B> </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff
    width="2%" align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff
    width="1%" align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff width="12%"
    align=right >204,491 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff
    width="2%" align=left>&nbsp;</TD></TR>
  <TR>
    <TD>&nbsp; </TD>
    <TD  width="7%" align=center>&nbsp;</TD>
    <TD  width="1%" align=right>&nbsp;</TD>
    <TD width="12%" align=right >&nbsp; </TD>
    <TD  width="2%" align=right>&nbsp;</TD>
    <TD  width="1%" align=right>&nbsp;</TD>
    <TD width="12%" align=right >&nbsp; </TD>
    <TD  width="2%" align=right>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff
      align=left><B>Cash generated by investing activities</B> </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff
    width="7%" align=center>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff
    width="1%" align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff width="12%"
    align=right ><B>70,980</B> </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff
    width="2%" align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff
    width="1%" align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff width="12%"
    align=right >92,686 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff
    width="2%" align=left>&nbsp;</TD></TR>
  <TR>
    <TD>&nbsp; </TD>
    <TD  width="7%" align=center>&nbsp;</TD>
    <TD  width="1%" align=right>&nbsp;</TD>
    <TD width="12%" align=right >&nbsp; </TD>
    <TD  width="2%" align=right>&nbsp;</TD>
    <TD  width="1%" align=right>&nbsp;</TD>
    <TD width="12%" align=right >&nbsp; </TD>
    <TD  width="2%" align=right>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD bgColor=#e6efff align=left><B>Cash flows from financing activities</B>
    </TD>
    <TD bgColor=#e6efff  width="7%" align=center>&nbsp;</TD>
    <TD bgColor=#e6efff  width="1%" align=right>&nbsp;</TD>
    <TD bgColor=#e6efff width="12%" align=right >&nbsp; </TD>
    <TD bgColor=#e6efff  width="2%" align=right>&nbsp;</TD>
    <TD bgColor=#e6efff  width="1%" align=right>&nbsp;</TD>
    <TD bgColor=#e6efff width="12%" align=right >&nbsp; </TD>
    <TD bgColor=#e6efff  width="2%" align=right>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left>Proceeds from issuance of common shares (net of costs) </TD>
    <TD  width="7%" align=center>&nbsp;</TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="12%" align=right ><B>-</B> </TD>
    <TD  width="2%" align=left>&nbsp;</TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="12%" align=right >107,758 </TD>
    <TD  width="2%" align=left>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff
      align=left>Proceeds from exercise of stock options </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff
    width="7%" align=center>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff
    width="1%" align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff width="12%"
    align=right ><B>20,085</B> </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff
    width="2%" align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff
    width="1%" align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff width="12%"
    align=right >16,318 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff
    width="2%" align=left>&nbsp;</TD></TR>
  <TR>
    <TD>&nbsp; </TD>
    <TD  width="7%" align=center>&nbsp;</TD>
    <TD  width="1%" align=right>&nbsp;</TD>
    <TD width="12%" align=right >&nbsp; </TD>
    <TD  width="2%" align=right>&nbsp;</TD>
    <TD  width="1%" align=right>&nbsp;</TD>
    <TD width="12%" align=right >&nbsp; </TD>
    <TD  width="2%" align=right>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff
      align=left><B>Cash generated by financing activities</B> </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff
    width="7%" align=center>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff
    width="1%" align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff width="12%"
    align=right ><B>20,085</B> </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff
    width="2%" align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff
    width="1%" align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff width="12%"
    align=right >124,076 </TD>
  <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff
    width="2%" align=left>&nbsp;</TD>
  </TR>
  <TR>
    <TD>&nbsp; </TD>
    <TD  width="7%" align=center>&nbsp;</TD>
    <TD  width="1%" align=right>&nbsp;</TD>
    <TD width="12%" align=right >&nbsp; </TD>
    <TD  width="2%" align=right>&nbsp;</TD>
    <TD  width="1%" align=right>&nbsp;</TD>
    <TD width="12%" align=right >&nbsp; </TD>
    <TD  width="2%" align=right>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD bgColor=#e6efff align=left><B>Increase in cash and cash
      equivalents</B> </TD>
    <TD bgColor=#e6efff  width="7%" align=center>&nbsp;</TD>
    <TD bgColor=#e6efff  width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="12%" align=right ><B>96,744</B>
</TD>
    <TD bgColor=#e6efff  width="2%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff  width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="12%" align=right >205,652 </TD>
    <TD bgColor=#e6efff  width="2%" align=left>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>Cash and cash
      equivalents, beginning of period </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="7%"
    align=center>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="1%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="12%" align=right
    ><B>232,311</B> </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="2%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="1%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="12%" align=right
    >26,659 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="2%"
    align=left>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 2px solid" bgColor=#e6efff
      align=left><B>Cash and cash equivalents, end of period</B> </TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" bgColor=#e6efff
    width="7%" align=center>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" bgColor=#e6efff
    width="1%" align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" bgColor=#e6efff width="12%"
    align=right ><B>329,055</B> </TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" bgColor=#e6efff
    width="2%" align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" bgColor=#e6efff
    width="1%" align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" bgColor=#e6efff width="12%"
    align=right >232,311 </TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" bgColor=#e6efff
    width="2%" align=left>&nbsp;</TD></TR>
  <TR>
    <TD bgcolor="#FFFFFF">&nbsp; </TD>
    <TD  width="7%" align=center bgcolor="#FFFFFF">&nbsp;</TD>
    <TD  width="1%" align=right bgcolor="#FFFFFF">&nbsp;</TD>
    <TD width="12%" align=right bgcolor="#FFFFFF" >&nbsp; </TD>
    <TD  width="2%" align=right bgcolor="#FFFFFF">&nbsp;</TD>
    <TD  width="1%" align=right bgcolor="#FFFFFF">&nbsp;</TD>
    <TD width="12%" align=right bgcolor="#FFFFFF" >&nbsp; </TD>
  <TD  width="2%" align=right bgcolor="#FFFFFF">&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD bgColor=#FFFFFF align=left>Supplemental cash flow information (note
      25) </TD>
    <TD bgColor=#FFFFFF  width="7%" align=center>&nbsp;</TD>
    <TD bgColor=#FFFFFF  width="1%" align=right>&nbsp;</TD>
    <TD bgColor=#FFFFFF width="12%" align=right >&nbsp; </TD>
    <TD bgColor=#FFFFFF  width="2%" align=right>&nbsp;</TD>
    <TD bgColor=#FFFFFF  width="1%" align=right>&nbsp;</TD>
    <TD bgColor=#FFFFFF width="12%" align=right >&nbsp; </TD>
  <TD bgColor=#FFFFFF  width="2%"
  align=right>&nbsp;</TD>
  </TR></TABLE>
<P align=center>The accompanying notes are an integral part of the consolidated
financial statements </P>
<TABLE
style="BORDER-COLOR: black; BORDER-COLLAPSE: collapse; FONT-SIZE: 10pt; "
border=0 cellSpacing=0 cellPadding=0 width="100%">
  <TR vAlign=top>
    <TD style="BORDER-TOP: #000000 1px solid" align=right>10 | <FONT
      color=#7e7e7e>P a g e</FONT> </TD>
  </TR>
</TABLE>
<HR style="PAGE-BREAK-AFTER: always" align=center color=black SIZE=5
width="100%" noShade>
<A name=page_11></A><BR>
<TABLE
style="BORDER-COLOR: black; BORDER-COLLAPSE: collapse; FONT-SIZE: 10pt; "
border=0 cellSpacing=0 cellPadding=0 width="100%">

  <TR vAlign=top>
    <TD align=left><FONT size=4><B>Silver Standard Resources Inc.</B>
    </FONT></TD></TR>
  <TR vAlign=top>
    <TD align=left><FONT size=3>Notes to the Consolidated Financial Statements
      </FONT></TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left><FONT
      size=3>December 31, 2011 and 2010 and January 1, 2010 </FONT></TD></TR>
  <TR vAlign=top>
    <TD align=left>(tabular amounts expressed in thousands of United States
      dollars unless otherwise stated) </TD></TR></TABLE><BR>
<TABLE
style="BORDER-COLOR: black; BORDER-COLLAPSE: collapse; FONT-SIZE: 10pt; "
border=0 cellSpacing=0 cellPadding=0 width="100%" BCLLIST>

  <TR>
    <TD vAlign=top width="5%"><B>1.</B> </TD>
    <TD>
      <P align=justify><B>NATURE OF OPERATIONS</B></P></TD></TR>
  <TR>
    <TD width="5%">&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
  <TR>
    <TD width="5%"></TD>
    <TD>
      <P align=justify>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 acquisition, exploration, development and operation 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 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%"><STRONG>2. </STRONG></TD>
    <TD>
      <P align=justify><B>SUMMARY OF 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>
<P style="MARGIN-LEFT: 5%" align=justify><B>a)</B><B>&nbsp;&nbsp;&nbsp;
</B><B>Basis of preparation and first time adoption of International Financial
Reporting Standards</B></P>
<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 to
require publicly accountable enterprises to apply such standards effective for
years beginning on or after January 1, 2011. Accordingly, these are the
Company&#146;s first annual consolidated financial statements prepared in accordance
with IFRS. In the financial statements, the term &#145;Canadian GAAP&#146; refers to
Canadian GAAP before the adoption of IFRS. </P>
<P style="MARGIN-LEFT: 5%" align=justify>These consolidated financial statements
have been prepared in accordance 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
comparative information has also been prepared on this basis, with the exception
of certain items, details of which are given below, for which comparative
information has not been restated. </P>
<P style="MARGIN-LEFT: 5%" align=justify>The basis of preparation of these annual
  consolidated financial statements is different to that of the most recent
  comparative year&#146;s annual consolidated financial statements due to the first
  time adoption of IFRS. An explanation of how the transition to IFRS has affected
  the reported statement of income and statement of financial position is provided
  in note 26. This note includes reconciliations of equity and of income for the
  period ended December 31, 2010 previously reported under Canadian GAAP to those
  amounts reported under IFRS. </P>
<P style="MARGIN-LEFT: 5%" align=justify>The policies applied in these
consolidated financial statements are based on IFRS issued and outstanding as of
March 11, 2012, the date the statements were issued. </P>
<TABLE
style="BORDER-COLOR: black; BORDER-COLLAPSE: collapse; FONT-SIZE: 10pt; "
border=0 cellSpacing=0 cellPadding=0 width="100%">
  <TR vAlign=top>
    <TD style="BORDER-TOP: #000000 1px solid" align=right>11 | <FONT
      color=#7e7e7e>P a g e</FONT> </TD>
  </TR>
</TABLE>
<HR style="PAGE-BREAK-AFTER: always" align=center color=black SIZE=5
width="100%" noShade>
<A name=page_12></A><BR>
<TABLE
style="BORDER-COLOR: black; BORDER-COLLAPSE: collapse; FONT-SIZE: 10pt; "
border=0 cellSpacing=0 cellPadding=0 width="100%">
  <TR vAlign=top>
    <TD align=left><FONT size=4><B>Silver Standard Resources Inc.</B> </FONT></TD>
  </TR>
  <TR vAlign=top>
    <TD align=left><FONT size=3>Notes to the Consolidated Financial Statements
      </FONT></TD>
  </TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left><FONT
      size=3>December 31, 2011 and 2010 and January 1, 2010 </FONT></TD>
  </TR>
  <TR vAlign=top>
    <TD align=left>(tabular amounts expressed in thousands of United States dollars
      unless otherwise stated) </TD>
  </TR>
</TABLE>
<BR>
<TABLE
style="BORDER-COLOR: black; BORDER-COLLAPSE: collapse; FONT-SIZE: 10pt; "
border=0 cellSpacing=0 cellPadding=0 width="100%" BCLLIST>

  <TR>
    <TD vAlign=top width="5%"><B>2.</B> </TD>
    <TD>
      <P align=justify><B>SUMMARY OF 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 Company&#146;s transition date to IFRS is January 1, 2010.
      The rules for first-time adoption of IFRS are set out in IFRS 1,
      &#147;First-time adoption of International Financial Reporting Standards&#148;. In
      preparing the Company&#146;s first IFRS financial statements these transition
      rules have been applied to the amounts previously reported under Canadian
      GAAP. In general IFRS 1 requires accounting policies to be applied
      retrospectively, however it allows certain exemptions in order to assist
      companies with the transition process. The Company has applied the
      following optional exemptions:</P></TD></TR></TABLE><BR>
<TABLE
style="BORDER-COLOR: black; BORDER-COLLAPSE: collapse; FONT-SIZE: 10pt; "
border=0 cellSpacing=0 cellPadding=0 width="100%">

  <TR vAlign=top>
    <TD width="5%"  >&nbsp;</TD>
    <TD  align=center>-</TD>
    <TD width="90%" align=left >
      <P align=justify>IFRS 3 &#147;Business combinations&#148; has not been applied to
      business combinations that occurred before the date of transition.
  </P></TD></TR>
  <TR>
    <TD width="5%" >&nbsp;</TD>
    <TD  align=center>&nbsp;</TD>
    <TD  width="90%" align=left >
      <P align=justify>&nbsp;</P></TD></TR>
  <TR vAlign=top>
    <TD width="5%" >&nbsp;</TD>
    <TD  align=center>-</TD>
    <TD width="90%" align=left >
      <P align=justify>The Company has deemed cumulative translation differences
      for foreign operations to be zero at the date of transition, transferring
      any balances to the opening accumulated deficit at that date. Any gains or
      losses on subsequent disposals of foreign operations will not therefore
      include translation differences arising prior to the transition date.
    </P></TD></TR>
  <TR>
    <TD width="5%" >&nbsp;</TD>
    <TD  align=center>&nbsp;</TD>
    <TD  width="90%" align=left >
      <P align=justify>&nbsp;</P></TD></TR>
  <TR vAlign=top>
    <TD width="5%" >&nbsp;</TD>
    <TD  align=center>-</TD>
    <TD width="90%" align=left >
      <P align=justify>IFRS 2 &#147;Share-based payment&#148; has only been applied to
      share-based payments which had not vested at January 1, 2010. </P></TD></TR>
  <TR>
    <TD width="5%" >&nbsp;</TD>
    <TD  align=center>&nbsp;</TD>
    <TD  width="90%" align=left >
      <P align=justify>&nbsp;</P></TD></TR>
  <TR vAlign=top>
    <TD width="5%" >&nbsp;</TD>
    <TD  align=center>-</TD>
    <TD width="90%" align=left >
      <P align=justify>Full retrospective application of IFRIC 1, &#147;Changes in
      existing decommissioning, restoration and similar liabilities&#148; has not
      been applied to the Company&#146;s close down and restoration provision that
      existed prior to the transition to IFRS. </P></TD></TR>
  <TR>
    <TD width="5%" >&nbsp;</TD>
    <TD  align=center>&nbsp;</TD>
    <TD  width="90%" align=left >
      <P align=justify>&nbsp;</P></TD></TR>
  <TR vAlign=top>
    <TD width="5%" >&nbsp;</TD>
    <TD  align=center>-</TD>
    <TD width="90%" align=left >
      <P align=justify>The Company has elected to deem the fair value of the
      Pirquitas mine at the date of transition to IFRS to be its cost as of that
      date. </P></TD></TR></TABLE>
<P style="MARGIN-LEFT: 5%" align=justify>IFRS 1 also requires that estimates
made under IFRS must be consistent with estimates made for the same date under
Canadian GAAP except where adjustments are required to reflect any differences
in accounting policies. </P>
<P style="MARGIN-LEFT: 5%" align=justify>The preparation of financial statements
in conformity with IFRS requires the use of certain critical accounting
estimates. It also requires management to exercise its judgement in the process
of applying the Company&#146;s accounting policies. The areas involving judgement or
complexity, or areas where assumptions and estimates are significant and could
affect the reported amounts of assets and liabilities and disclosure of
contingent liabilities at the date of the consolidated financial statements and
the reported amounts of revenues and expenses during the period, are discussed
in note 2 (u). </P>
<P style="MARGIN-LEFT: 5%" align=justify><B>b)&nbsp;&nbsp;
</B><B>&nbsp;</B><B>Accounting convention </B></P>
<P style="MARGIN-LEFT: 5%" align=justify>These consolidated financial statements
have been prepared on the historical cost basis, except for the revaluation of
certain financial instruments, which are measured at fair value as described in
note 2 (r). </P>
<P style="MARGIN-LEFT: 5%" align=justify><B>c)</B><B>&nbsp;&nbsp;&nbsp;
</B><B>Basis of consolidation </B></P>
<P style="MARGIN-LEFT: 5%" align=justify>These consolidated financial statements
incorporate the financial statements of the Company, its associate (note 8), and
its controlled subsidiaries (note 24(c)).</P>
<TABLE
style="BORDER-COLOR: black; BORDER-COLLAPSE: collapse; FONT-SIZE: 10pt; "
border=0 cellSpacing=0 cellPadding=0 width="100%">
  <TR vAlign=top>
    <TD style="BORDER-TOP: #000000 1px solid" align=right>12 | <FONT
      color=#7e7e7e>P a g e</FONT> </TD>
  </TR>
</TABLE>
<HR style="PAGE-BREAK-AFTER: always" align=center color=black SIZE=5
width="100%" noShade>
<A name=page_13></A><BR>
<TABLE
style="BORDER-COLOR: black; BORDER-COLLAPSE: collapse; FONT-SIZE: 10pt; "
border=0 cellSpacing=0 cellPadding=0 width="100%">
  <TR vAlign=top>
    <TD align=left><FONT size=4><B>Silver Standard Resources Inc.</B> </FONT></TD>
  </TR>
  <TR vAlign=top>
    <TD align=left><FONT size=3>Notes to the Consolidated Financial Statements
      </FONT></TD>
  </TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left><FONT
      size=3>December 31, 2011 and 2010 and January 1, 2010 </FONT></TD>
  </TR>
  <TR vAlign=top>
    <TD align=left>(tabular amounts expressed in thousands of United States dollars
      unless otherwise stated) </TD>
  </TR>
</TABLE>
<BR>
<TABLE
style="BORDER-COLOR: black; BORDER-COLLAPSE: collapse; FONT-SIZE: 10pt; "
border=0 cellSpacing=0 cellPadding=0 width="100%" BCLLIST>

  <TR>
    <TD vAlign=top width="5%"><B>2.</B> </TD>
    <TD>
      <P align=justify><B>SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
      (Cont&#146;d)</B></P></TD></TR>
  <TR>
    <TD width="5%">&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
  <TR>
    <TD width="5%"></TD>
    <TD>
      <P align=justify><B>Subsidiaries</B></P></TD></TR>
  <TR>
    <TD width="5%">&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
  <TR>
    <TD width="5%"></TD>
    <TD>
      <P align=justify>Control exists when the Company has the power, directly
      or indirectly, to govern the financial and operating policies of an entity
      so as to obtain benefits from its activities, generally accompanying a
      shareholding of more than one half of the voting rights. The existence and
      effect of potential voting rights that are currently exercisable or
      convertible are considered when assessing whether the Company controls
      another entity.</P></TD></TR>
  <TR>
    <TD width="5%">&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
  <TR>
    <TD width="5%"></TD>
    <TD>
      <P align=justify>The financial statements of subsidiaries are included in
      the consolidated financial statements from the date that control commences
      until the date that control ceases.</P></TD></TR>
  <TR>
    <TD width="5%">&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
  <TR>
    <TD width="5%"></TD>
    <TD>
      <P align=justify>All inter-company transactions and balances have been
      eliminated on consolidation.</P></TD></TR>
  <TR>
    <TD width="5%">&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
  <TR>
    <TD width="5%"></TD>
    <TD>
      <P align=justify>Where the Company&#146;s interest is less than 100%, the
      interest attributable to outside shareholders is reflected in non-
      controlling interest. Non-controlling interests in the net assets of
      consolidated subsidiaries are identified separately from the Company&#146;s
      equity therein. Non-controlling interests consist of the amount of those
      interests at the date of the original business combination and the
      non-controlling interests&#146; share of changes in equity since the date of
      the combination.</P></TD></TR>
  <TR>
    <TD width="5%">&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
  <TR>
    <TD width="5%"></TD>
    <TD>
      <P align=justify><B>Associates</B></P></TD></TR>
  <TR>
    <TD width="5%">&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
  <TR>
    <TD width="5%"></TD>
    <TD>
      <P align=justify>An associate is an entity over whose operating and
      financial policies the Company exercises significant influence.
      Significant influence is presumed to exist where the Company has between
      20 per cent and 50 per cent of the voting rights, but can also arise where
      the Company holds less than 20 per cent of the voting rights, but it has
      power to be actively involved and influential in policy decisions
      affecting the entity. The Company&#146;s share of the net assets, post tax
      results and reserves of the associate are included in the financial
      statements using the equity accounting method. This involves recording the
      investment initially at cost to the Company, and then, in subsequent
      periods, adjusting the carrying amount of the investment to reflect the
      Company&#146;s share of the associate&#146;s results. Unrealized gains on
      transactions between the Company and its associate are eliminated to the
      extent of the Company&#146;s interest in the associate.</P></TD></TR></TABLE>
<P style="MARGIN-LEFT: 5%" align=justify><B>d)</B><B>&nbsp;&nbsp;&nbsp;
</B><B>Foreign currency translation </B></P>
<P style="MARGIN-LEFT: 5%" align=justify><B>&nbsp;&nbsp;
(i)</B><B>&nbsp;&nbsp;&nbsp; </B><B>Functional and presentation currency
</B></P>
<P style="MARGIN-LEFT: 5%" align=justify>Items included in the financial
statements of each of the Company&#146;s subsidiaries are measured using the currency
of the primary economic environment in which the entity operates (&#147;the
functional currency&#148;).</P>
<P style="MARGIN-LEFT: 5%" align=justify>The consolidated financial statements
are presented in United States dollars. </P>
<P style="MARGIN-LEFT: 5%" align=justify><B>&nbsp;&nbsp; (ii)</B><B>&nbsp;&nbsp;
</B><B>Transactions and balances </B></P>
<P style="MARGIN-LEFT: 5%" align=justify>Foreign currency transactions are
translated into the functional currency using the exchange rates prevailing at
the date of the transaction. Foreign currency gains and losses resulting from
the settlement of such transactions and from the translation at period-end
exchange rates of monetary assets and liabilities denominated in foreign
currencies are recognized in the statement of income. </P>
<TABLE
style="BORDER-COLOR: black; BORDER-COLLAPSE: collapse; FONT-SIZE: 10pt; "
border=0 cellSpacing=0 cellPadding=0 width="100%">
  <TR vAlign=top>
    <TD style="BORDER-TOP: #000000 1px solid" align=right>13 | <FONT
      color=#7e7e7e>P a g e</FONT> </TD>
  </TR>
</TABLE>
<HR style="PAGE-BREAK-AFTER: always" align=center color=black SIZE=5
width="100%" noShade>
<A name=page_14></A><BR>
<TABLE
style="BORDER-COLOR: black; BORDER-COLLAPSE: collapse; FONT-SIZE: 10pt; "
border=0 cellSpacing=0 cellPadding=0 width="100%">
  <TR vAlign=top>
    <TD align=left><FONT size=4><B>Silver Standard Resources Inc.</B> </FONT></TD>
  </TR>
  <TR vAlign=top>
    <TD align=left><FONT size=3>Notes to the Consolidated Financial Statements
      </FONT></TD>
  </TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left><FONT
      size=3>December 31, 2011 and 2010 and January 1, 2010 </FONT></TD>
  </TR>
  <TR vAlign=top>
    <TD align=left>(tabular amounts expressed in thousands of United States dollars
      unless otherwise stated) </TD>
  </TR>
</TABLE>
<BR>
<TABLE
style="BORDER-COLOR: black; BORDER-COLLAPSE: collapse; FONT-SIZE: 10pt; "
border=0 cellSpacing=0 cellPadding=0 width="100%" BCLLIST>

  <TR>
    <TD vAlign=top width="5%"><B>2.</B> </TD>
    <TD>
      <P align=justify><B>SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
      (Cont&#146;d)</B></P></TD></TR></TABLE>
<P style="MARGIN-LEFT: 5%" align=justify><B>&nbsp;&nbsp; (iii)</B><B>&nbsp;
</B><B>Subsidiaries </B></P>
<P style="MARGIN-LEFT: 5%" align=justify>The results and financial position of
subsidiaries and of the associate that have a functional currency different from
the presentation currency are translated into the presentation currency as
follows: </P>
<TABLE
style="BORDER-COLOR: black; BORDER-COLLAPSE: collapse; FONT-SIZE: 10pt; "
border=0 cellSpacing=0 cellPadding=0 width="100%">

  <TR vAlign=top>
    <TD width="5%"  >&nbsp;</TD>
    <TD  align=center>-</TD>
    <TD width="90%" align=left >
      <P align=justify>Assets and liabilities are translated at the period-end
      exchange rate; </P></TD></TR>
  <TR vAlign=top>
    <TD width="5%" >&nbsp;</TD>
    <TD  align=center>-</TD>
    <TD width="90%" align=left >
      <P align=justify>Income and expenses for each statement of income are
      translated at average exchange rates for the period; and </P></TD></TR>
  <TR vAlign=top>
    <TD width="5%" >&nbsp;</TD>
    <TD  align=center>-</TD>
    <TD width="90%" align=left >
      <P align=justify>All resulting exchange differences are recognized in
      other comprehensive income as cumulative translation adjustments.
  </P></TD></TR></TABLE>
<P style="MARGIN-LEFT: 5%" align=justify>On consolidation, exchange differences
arising from the translation of the net investment in foreign entities are taken
to the foreign currency translation reserve. When a foreign operation is sold,
such exchange differences are recognized in the statement of income as part of
the gain or loss on sale. </P>
<P style="MARGIN-LEFT: 5%" align=justify><B>e)&nbsp;&nbsp;
</B><B>&nbsp;</B><B>Revenue recognition </B></P>
<P style="MARGIN-LEFT: 5%" align=justify>The Company&#146;s primary source of revenue
is from the sale of metal-bearing concentrate. Revenue from the sale of
concentrate is recognized in the financial statements when the following
criteria have been met: </P>
<TABLE
style="BORDER-COLOR: black; BORDER-COLLAPSE: collapse; FONT-SIZE: 10pt; "
border=0 cellSpacing=0 cellPadding=0 width="100%">

  <TR vAlign=top>
    <TD width="5%"  >&nbsp;</TD>
    <TD  align=center>-</TD>
    <TD width="90%" align=left >
      <P align=justify>the significant risks and rewards of ownership have
      passed to the customer; </P></TD></TR>
  <TR vAlign=top>
    <TD width="5%" >&nbsp;</TD>
    <TD  align=center>-</TD>
    <TD width="90%" align=left >
      <P align=justify>neither continuing managerial involvement, to the degree
      usually associated with ownership, nor effective control over the good
      sold, has been retained; </P></TD></TR>
  <TR vAlign=top>
    <TD width="5%" >&nbsp;</TD>
    <TD  align=center>-</TD>
    <TD width="90%" align=left >
      <P align=justify>the amount of revenue can be measured reliably;
</P></TD></TR>
  <TR vAlign=top>
    <TD width="5%" >&nbsp;</TD>
    <TD  align=center>-</TD>
    <TD width="90%" align=left >
      <P align=justify>it is probable that economic benefits associated with the
      sale will flow to the Company; and </P></TD></TR>
  <TR vAlign=top>
    <TD width="5%" >&nbsp;</TD>
    <TD  align=center>-</TD>
    <TD width="90%" align=left >
      <P align=justify>the costs incurred or to be incurred in respect of the
      sale can be measured reliably. </P></TD></TR></TABLE>
<P style="MARGIN-LEFT: 5%" align=justify>Revenue from the sale of concentrate is
recorded in the statement of income net of charges for shipping, refining and
smelting. Revenues from the sale of significant by-products are included within
revenue. Where a by-product is not regarded as significant, sales proceeds may
be credited against cost of sales. </P>
<P style="MARGIN-LEFT: 5%" align=justify>Concentrate sales typically are
provisionally valued upon shipment, with the final value of the concentrate sale
determined after receipt of final weights and assays and after the
contractually-agreed metal pricing period, which typically occurs two to six
months after shipment. Once the recognition criteria are met, fair value is
estimated and revenues are recorded, based on metal spot prices at that date,
provisionally-estimated amounts of metals contained, and processing charges. As
a result of this process, the value of concentrate receivables changes during
the period between initial recognition and final pricing. This component of the
contract is an embedded derivative, which is recognized at fair value based on
the forward sales price at the end of the reporting period with changes in value
recorded in revenue. Such adjustments to revenue for metal prices are recorded
at each reporting date, until the final sales price has been determined. </P>
<TABLE
style="BORDER-COLOR: black; BORDER-COLLAPSE: collapse; FONT-SIZE: 10pt; "
border=0 cellSpacing=0 cellPadding=0 width="100%">
  <TR vAlign=top>
    <TD style="BORDER-TOP: #000000 1px solid" align=right>14 | <FONT
      color=#7e7e7e>P a g e</FONT> </TD>
  </TR>
</TABLE>
<HR style="PAGE-BREAK-AFTER: always" align=center color=black SIZE=5
width="100%" noShade>
<A name=page_15></A><BR>
<TABLE
style="BORDER-COLOR: black; BORDER-COLLAPSE: collapse; FONT-SIZE: 10pt; "
border=0 cellSpacing=0 cellPadding=0 width="100%">
  <TR vAlign=top>
    <TD align=left><FONT size=4><B>Silver Standard Resources Inc.</B> </FONT></TD>
  </TR>
  <TR vAlign=top>
    <TD align=left><FONT size=3>Notes to the Consolidated Financial Statements
      </FONT></TD>
  </TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left><FONT
      size=3>December 31, 2011 and 2010 and January 1, 2010 </FONT></TD>
  </TR>
  <TR vAlign=top>
    <TD align=left>(tabular amounts expressed in thousands of United States dollars
      unless otherwise stated) </TD>
  </TR>
</TABLE>
<BR>
<TABLE
style="BORDER-COLOR: black; BORDER-COLLAPSE: collapse; FONT-SIZE: 10pt; "
border=0 cellSpacing=0 cellPadding=0 width="100%" BCLLIST>

  <TR>
    <TD vAlign=top width="5%"><B>2.</B> </TD>
    <TD>
      <P align=justify><B>SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
      (Cont&#146;d)</B></P></TD></TR></TABLE>
<P style="MARGIN-LEFT: 5%" align=justify><B>f)</B><B>&nbsp;&nbsp;&nbsp;
</B><B>Cash and cash equivalents </B></P>
<P style="MARGIN-LEFT: 5%" align=justify>Cash and cash equivalents include cash
on hand and held at banks and short-term investments with an original maturity
of three months or less. Short-term investments consist of treasury bills issued
by the governments of Canada and the United States of America. </P>
<P style="MARGIN-LEFT: 5%" align=justify><B>g)</B><B>&nbsp;&nbsp;&nbsp;
</B><B>Inventory </B></P>
<P style="MARGIN-LEFT: 5%" align=justify>Stockpiled ore, work in process and
finished goods inventory are valued at the lower of cost and estimated net
realizable value (&#147;NRV&#148;). Cost includes all direct costs incurred in production
including direct labour and materials, freight, depreciation and amortization
and directly attributable overhead costs. Production stripping costs are
included in inventory as incurred. NRV is calculated using the estimated price
at the time of sale based on prevailing and future metal prices less estimated
future production costs to convert the inventory into saleable form and all
associated selling costs.</P>
<P style="MARGIN-LEFT: 5%" align=justify>Any write-downs of inventory to NRV are
recorded as cost of sales in the statement of income. If there is a subsequent
increase in the value of inventory, the previous write-downs to NRV are reversed
up to cost to the extent that the related inventory has not been sold.</P>
<P style="MARGIN-LEFT: 5%" align=justify>Stockpiled ore inventory represents ore
that has been extracted from the mine and is available for further processing.
Low-grade resources which are not scheduled for processing within the next
twelve months are classified as long-term inventory. Costs added to stockpiled
ore inventory are derived from the current mining costs incurred up to the point
of stockpiling the ore and are removed at average cost. Quantities of stockpiled
ore are verified by periodic surveys. </P>
<P style="MARGIN-LEFT: 5%" align=justify>Work in process inventory includes the
fine ore stockpile and in-circuit inventories in the milling process. Finished
goods inventory includes metal concentrates at our operations and in
transit.</P>
<P style="MARGIN-LEFT: 5%" align=justify>Materials and supplies inventories are
valued at the lower of average cost and NRV. Costs include acquisition, freight
and other directly attributable costs. </P>
<P style="MARGIN-LEFT: 5%" align=justify><B>h)&nbsp;&nbsp;
</B><B>&nbsp;</B><B>Exploration and evaluation expenditure </B></P>
<P style="MARGIN-LEFT: 5%" align=justify>Exploration and evaluation activity
involves the search for mineral resources, the determination of technical
feasibility and the assessment of commercial viability of an identified mineral
resource. Exploration and evaluation activity includes:</P>
<TABLE
style="BORDER-COLOR: black; BORDER-COLLAPSE: collapse; FONT-SIZE: 10pt; "
border=0 cellSpacing=0 cellPadding=0 width="100%">

  <TR vAlign=top>
    <TD width="5%"  >&nbsp;</TD>
    <TD  align=center>-</TD>
    <TD width="90%" align=left >acquiring the rights to explore;
    </TD></TR>
  <TR vAlign=top>
    <TD width="5%" >&nbsp;</TD>
    <TD  align=center>-</TD>
    <TD width="90%" align=left >researching and analyzing
      historical exploration data; </TD></TR>
  <TR vAlign=top>
    <TD width="5%" >&nbsp;</TD>
    <TD  align=center>-</TD>
    <TD width="90%" align=left >gathering exploration data
      through topographical, geochemical and geophysical studies; </TD></TR>
  <TR vAlign=top>
    <TD width="5%" >&nbsp;</TD>
    <TD  align=center>-</TD>
    <TD width="90%" align=left >exploratory drilling, trenching
      and sampling; </TD></TR>
  <TR vAlign=top>
    <TD width="5%" >&nbsp;</TD>
    <TD  align=center>-</TD>
    <TD width="90%" align=left >determining and examining the
      volume and grade of the resource; </TD></TR>
  <TR vAlign=top>
    <TD width="5%" >&nbsp;</TD>
    <TD  align=center>-</TD>
    <TD width="90%" align=left >surveying transportation and
      infrastructure requirements; and </TD></TR>
  <TR vAlign=top>
    <TD width="5%" >&nbsp;</TD>
    <TD  align=center>-</TD>
    <TD width="90%" align=left >compiling pre-feasibility and
      feasibility studies. </TD></TR></TABLE><BR>
<TABLE
style="BORDER-COLOR: black; BORDER-COLLAPSE: collapse; FONT-SIZE: 10pt; "
border=0 cellSpacing=0 cellPadding=0 width="100%">
  <TR vAlign=top>
    <TD style="BORDER-TOP: #000000 1px solid" align=right>15 | <FONT
      color=#7e7e7e>P a g e</FONT> </TD>
  </TR>
</TABLE>
<HR style="PAGE-BREAK-AFTER: always" align=center color=black SIZE=5
width="100%" noShade>
<A name=page_16></A><BR>
<TABLE
style="BORDER-COLOR: black; BORDER-COLLAPSE: collapse; FONT-SIZE: 10pt; "
border=0 cellSpacing=0 cellPadding=0 width="100%">
  <TR vAlign=top>
    <TD align=left><FONT size=4><B>Silver Standard Resources Inc.</B> </FONT></TD>
  </TR>
  <TR vAlign=top>
    <TD align=left><FONT size=3>Notes to the Consolidated Financial Statements
      </FONT></TD>
  </TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left><FONT
      size=3>December 31, 2011 and 2010 and January 1, 2010 </FONT></TD>
  </TR>
  <TR vAlign=top>
    <TD align=left>(tabular amounts expressed in thousands of United States dollars
      unless otherwise stated) </TD>
  </TR>
</TABLE>
<BR>
<TABLE
style="BORDER-COLOR: black; BORDER-COLLAPSE: collapse; FONT-SIZE: 10pt; "
border=0 cellSpacing=0 cellPadding=0 width="100%" BCLLIST>

  <TR>
    <TD vAlign=top width="5%"><B>2.</B> </TD>
    <TD>
      <P align=justify><B>SUMMARY OF 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>General exploration costs are expensed in the period
      incurred.</P></TD></TR>
  <TR>
    <TD width="5%">&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
  <TR>
    <TD width="5%"></TD>
    <TD>
      <P align=justify>Exploration and evaluation expenditures on identifiable
      non-operating properties are capitalized. Capitalized costs are considered
      to be tangible assets as they form part of the underlying mineral property
      and are recorded within &#145;exploration and development expenditure&#146;, a
      separate component of property, plant and equipment, at cost less
      impairment charges, if applicable. No amortization is charged during the
      exploration and evaluation phase as the asset is not available for
    use.</P></TD></TR>
  <TR>
    <TD width="5%">&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
  <TR>
    <TD width="5%"></TD>
    <TD>
      <P align=justify>All exploration costs at operating properties are
      expensed as incurred until a proven economically recoverable reserve is
      identified.</P></TD></TR>
  <TR>
    <TD width="5%">&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
  <TR>
    <TD width="5%"></TD>
    <TD>
      <P align=justify>Once a mining project has been established as
      commercially viable, expenditures other than those on land, buildings,
      plant and equipment are capitalized as &#145;mineral properties&#146; together with
      any amount transferred from &#145;exploration and development
    expenditure&#146;.</P></TD></TR></TABLE>
<P style="MARGIN-LEFT: 5%" align=justify><B>i)</B><B>&nbsp;&nbsp;&nbsp;
</B><B>Property, plant and equipment </B></P>
<P style="MARGIN-LEFT: 5%" align=justify>Property, plant and equipment is stated
at cost less accumulated depreciation and accumulated impairment losses.</P>
<P style="MARGIN-LEFT: 5%" align=justify>The cost of an item of property, plant
and equipment includes the purchase price or construction cost, any costs
directly attributable to bringing the asset to the location and condition
necessary for its intended use, an initial estimate of the costs of dismantling
and removing the item and restoring the site on which it is located, and for
qualifying assets, the associated borrowing costs. </P>
<P style="MARGIN-LEFT: 5%" align=justify>Where an item of property, plant and
equipment is comprised of major components with different useful lives, the
components are accounted for as separate items of property, plant and equipment.
</P>
<P style="MARGIN-LEFT: 5%" align=justify>Costs incurred for new construction,
mine development, the major overhaul of existing equipment, and sustaining
capital are capitalized as property, plant and equipment on the statement of
financial position and are subject to depreciation once they are put into use.
The costs of routine maintenance and repairs are expensed as incurred. </P>
<P style="MARGIN-LEFT: 5%" align=justify><B>j)&nbsp;&nbsp;
</B><B>&nbsp;</B><B>Depreciation of property, plant and equipment </B></P>
<P style="MARGIN-LEFT: 5%" align=justify>The carrying amounts of property, plant
and equipment are depreciated to their estimated residual value over the
estimated useful lives of the specific assets concerned, or the estimated life
of mine or lease, if shorter. Depreciation starts on the date of commissioning.
The major categories of property, plant and equipment are depreciated on a
units-of-production or straight-line basis using the estimated lives indicated
below: </P>
<DIV align=center>
<TABLE
style="BORDER-COLOR: black; BORDER-COLLAPSE: collapse; FONT-SIZE: 10pt; "
border=0 cellSpacing=0 cellPadding=0 width="40%">

  <TR vAlign=top>
    <TD bgColor=#e6efff align=left>Computer equipment </TD>
    <TD bgColor=#e6efff width="50%" align=right>3 - 5 years </TD></TR>
  <TR vAlign=top>
    <TD align=left>Furniture and fixtures </TD>
    <TD width="50%" align=right>7 years </TD></TR>
  <TR vAlign=top>
    <TD bgColor=#e6efff align=left>Vehicles </TD>
    <TD bgColor=#e6efff width="50%" align=right>3 years </TD></TR>
  <TR vAlign=top>
    <TD align=left>Mining equipment </TD>
    <TD width="50%" align=right>3 - 10 years </TD></TR>
  <TR vAlign=top>
    <TD bgColor=#e6efff align=left>Mine plant equipment </TD>
    <TD bgColor=#e6efff width="50%" align=right>11 years </TD></TR>
  <TR vAlign=top>
    <TD align=left>Leasehold improvements </TD>
    <TD width="50%" align=right>Lease term </TD></TR></TABLE></DIV><BR>
<TABLE
style="BORDER-COLOR: black; BORDER-COLLAPSE: collapse; FONT-SIZE: 10pt; "
border=0 cellSpacing=0 cellPadding=0 width="100%">
  <TR vAlign=top>
    <TD style="BORDER-TOP: #000000 1px solid" align=right>16 | <FONT
      color=#7e7e7e>P a g e</FONT> </TD>
  </TR>
</TABLE>
<HR style="PAGE-BREAK-AFTER: always" align=center color=black SIZE=5
width="100%" noShade>
<A name=page_17></A><BR>
<TABLE
style="BORDER-COLOR: black; BORDER-COLLAPSE: collapse; FONT-SIZE: 10pt; "
border=0 cellSpacing=0 cellPadding=0 width="100%">
  <TR vAlign=top>
    <TD align=left><FONT size=4><B>Silver Standard Resources Inc.</B> </FONT></TD>
  </TR>
  <TR vAlign=top>
    <TD align=left><FONT size=3>Notes to the Consolidated Financial Statements
      </FONT></TD>
  </TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left><FONT
      size=3>December 31, 2011 and 2010 and January 1, 2010 </FONT></TD>
  </TR>
  <TR vAlign=top>
    <TD align=left>(tabular amounts expressed in thousands of United States dollars
      unless otherwise stated) </TD>
  </TR>
</TABLE>
<BR>
<TABLE
style="BORDER-COLOR: black; BORDER-COLLAPSE: collapse; FONT-SIZE: 10pt; "
border=0 cellSpacing=0 cellPadding=0 width="100%" BCLLIST>

  <TR>
    <TD vAlign=top width="5%"><B>2.</B> </TD>
    <TD>
      <P align=justify><B>SUMMARY OF 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>Land is not depreciated.</P></TD></TR>
  <TR>
    <TD width="5%">&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
  <TR>
    <TD width="5%"></TD>
    <TD>
      <P align=justify>&#145;Mineral properties&#146; are depreciated using the
      units-of-production method. In applying the units-of-production method
      depreciation is calculated using the quantity of material extracted from
      the mine in the period as a percentage of the total quantity of material
      expected to be extracted in current and future periods based on proven and
      probable mineral reserves.</P></TD></TR>
  <TR>
    <TD width="5%">&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
  <TR>
    <TD width="5%"></TD>
    <TD>
      <P align=justify>The Company conducts an annual review of residual values,
      useful lives and depreciation methods employed for property, plant and
      equipment. Any changes in estimate that arise from this review are
      accounted for prospectively.</P></TD></TR></TABLE>
<P style="MARGIN-LEFT: 5%" align=justify><B>k)</B><B>&nbsp;&nbsp;&nbsp;
</B><B>Stripping costs </B></P>
<P style="MARGIN-LEFT: 5%" align=justify>Stripping costs comprise the removal of
overburden and other waste material from the mine. Stripping costs incurred
during the development of a mine are capitalized and recorded within mineral
properties and subsequently amortized over the life of the mine on a
units-of-production basis. </P>
<P style="MARGIN-LEFT: 5%" align=justify>Stripping costs incurred during the
production phase are variable production costs that are included in the costs of
inventory produced during the period that the stripping costs are incurred.
Stripping costs resulting in a future benefit of the mineral property by
providing access to additional sources of ore are capitalized and amortized over
the relevant mineral reserves. </P>
<P style="MARGIN-LEFT: 5%" align=justify><B>l)&nbsp;&nbsp;
</B><B>&nbsp;</B><B>Borrowing costs </B></P>
<P style="MARGIN-LEFT: 5%" align=justify>Borrowing costs directly attributable
to the acquisition, construction or production of qualifying assets are
capitalized as part of the cost of the asset until the asset is substantially
ready for its intended use. Other borrowing costs are recognized as an expense
in the period incurred. </P>
<P style="MARGIN-LEFT: 5%" align=justify><B>m)&nbsp;&nbsp;
</B><B>&nbsp;</B><B>Impairment of long-lived assets </B></P>
<P style="MARGIN-LEFT: 5%" align=justify>Assets that have an indefinite useful
life are not subject to amortization and are tested annually for impairment or
at any time if an indicator of impairment is considered to exist. Assets that
are subject to amortization or depreciation are reviewed for impairment whenever
events or changes in circumstances indicate that the carrying amount may not be
recoverable.</P>
<P style="MARGIN-LEFT: 5%" align=justify>The Company conducts internal reviews
of asset values which are used to assess for any indications of impairment.
External factors such as changes in expected future prices, costs and other
market factors are also monitored to assess for indications of impairment.</P>
<P style="MARGIN-LEFT: 5%" align=justify>If any such indication exists an
estimate of the recoverable amount is undertaken, being the higher of an asset&#146;s
fair value less costs to sell and value in use. If the asset&#146;s carrying amount
exceeds its recoverable amount then an impairment loss is recognized in the
statement of income. </P>
<TABLE
style="BORDER-COLOR: black; BORDER-COLLAPSE: collapse; FONT-SIZE: 10pt; "
border=0 cellSpacing=0 cellPadding=0 width="100%">
  <TR vAlign=top>
    <TD style="BORDER-TOP: #000000 1px solid" align=right>17 | <FONT
      color=#7e7e7e>P a g e</FONT> </TD>
  </TR>
</TABLE>
<HR style="PAGE-BREAK-AFTER: always" align=center color=black SIZE=5
width="100%" noShade>
<A name=page_18></A><BR>
<TABLE
style="BORDER-COLOR: black; BORDER-COLLAPSE: collapse; FONT-SIZE: 10pt; "
border=0 cellSpacing=0 cellPadding=0 width="100%">
  <TR vAlign=top>
    <TD align=left><FONT size=4><B>Silver Standard Resources Inc.</B> </FONT></TD>
  </TR>
  <TR vAlign=top>
    <TD align=left><FONT size=3>Notes to the Consolidated Financial Statements
      </FONT></TD>
  </TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left><FONT
      size=3>December 31, 2011 and 2010 and January 1, 2010 </FONT></TD>
  </TR>
  <TR vAlign=top>
    <TD align=left>(tabular amounts expressed in thousands of United States dollars
      unless otherwise stated) </TD>
  </TR>
</TABLE>
<BR>
<TABLE
style="BORDER-COLOR: black; BORDER-COLLAPSE: collapse; FONT-SIZE: 10pt; "
border=0 cellSpacing=0 cellPadding=0 width="100%" BCLLIST>

  <TR>
    <TD vAlign=top width="5%"><B>2.</B> </TD>
    <TD>
      <P align=justify><B>SUMMARY OF 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>Fair value is determined as the amount that would be
      obtained from the sale of the asset in an arm&#146;s length transaction between
      knowledgeable and willing parties. Fair value of mineral assets is
      generally determined as the present value of the estimated future cash
      flows expected to arise from the continued use of the asset, including any
      expansion prospects.</P></TD></TR>
  <TR>
    <TD width="5%">&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
  <TR>
    <TD width="5%"></TD>
    <TD>
      <P align=justify>Value in use is determined as the present value of the
      estimated future cash flows expected to arise from the continued use of
      the asset in its present form and from its ultimate disposal.</P></TD></TR>
  <TR>
    <TD width="5%">&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
  <TR>
    <TD width="5%"></TD>
    <TD>
      <P align=justify>Impairment is normally assessed at the level of
      cash-generating units (&#147;CGUs&#148;), which are identified as the smallest
      identifiable group of assets that generates cash inflows that are largely
      independent of the cash inflows from other assets.</P></TD></TR>
  <TR>
    <TD width="5%">&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
  <TR>
    <TD width="5%"></TD>
    <TD>
      <P align=justify>Non-financial assets other than goodwill that have
      suffered impairment are tested for possible reversal of the impairment
      whenever events or changes in circumstances indicate that the impairment
      may have reversed. When a reversal of a previous impairment is recorded,
      the reversal amount is adjusted for depreciation that would have been
      recorded had the impairment not taken place.</P></TD></TR></TABLE>
<P style="MARGIN-LEFT: 5%" align=justify><B>n)&nbsp;&nbsp;
</B><B>&nbsp;</B><B>Share capital </B></P>
<P style="MARGIN-LEFT: 5%" align=justify>Common shares issued by the Company are
  recorded at the net proceeds received which is the fair value of the consideration
  received less costs incurred in connection with the issue. </P>
<P style="MARGIN-LEFT: 5%" align=justify><B>o)</B><B>&nbsp;&nbsp;&nbsp;
</B><B>Share-based payments </B></P>
<P style="MARGIN-LEFT: 5%" align=justify>Equity-settled share-based payment
arrangements such as the Company&#146;s stock option plan are initially measured at
fair value at the date of grant and recorded within shareholders&#146; equity.
Cash-settled arrangements such as the Non-employee Directors&#146; Deferred Share
Unit plan (&#147;DSU Plan&#148;), the Restricted Share Unit Plan (&#147;RSU Plan&#148;) and the
Performance Share Unit Plan (&#147;PSU Plan&#148;) are initially recorded at fair value
and classified as accrued liabilities and subsequently remeasured at fair value
at each reporting date. </P>
<P style="MARGIN-LEFT: 5%" align=justify>The fair value at grant date of all
share-based payments is recognized as compensation expense over the period for
which benefits of services are expected to be derived, with a corresponding
credit to shareholders&#146; equity or other payables depending on whether they are
share-settled or cash-settled. The Company estimates the fair value of stock
options granted using the Black-Scholes option pricing model and estimates the
expected forfeiture rate at the date of grant. The fair value of DSU&#146;s and RSU&#146;s
is based on the quoted market price of the Company&#146;s common shares, and the
PSU&#146;s are valued using a Monte Carlo simulation. When awards are forfeited
because non-market based vesting conditions are not satisfied, the expense
previously recognized is proportionately reversed. </P>
<P style="MARGIN-LEFT: 5%" align=justify>Where share-based payments are granted
in exchange for services directly related to specific exploration, development
or producing properties, the expense is capitalized against that asset. </P>
<P style="MARGIN-LEFT: 5%" align=justify><B>p)</B><B>&nbsp;&nbsp;&nbsp;
</B><B>Taxation </B></P>
<P style="MARGIN-LEFT: 5%" align=justify>The tax expense for the period is
comprised of current and deferred tax. Taxation is recognized in the statement
of income except to the extent that it relates to items recognized directly in
shareholders&#146; equity, in which case the tax is recognized in equity. </P>
<TABLE
style="BORDER-COLOR: black; BORDER-COLLAPSE: collapse; FONT-SIZE: 10pt; "
border=0 cellSpacing=0 cellPadding=0 width="100%">
  <TR vAlign=top>
    <TD style="BORDER-TOP: #000000 1px solid" align=right>18 | <FONT
      color=#7e7e7e>P a g e</FONT> </TD>
  </TR>
</TABLE>
<HR style="PAGE-BREAK-AFTER: always" align=center color=black SIZE=5
width="100%" noShade>
<A name=page_19></A><BR>
<TABLE
style="BORDER-COLOR: black; BORDER-COLLAPSE: collapse; FONT-SIZE: 10pt; "
border=0 cellSpacing=0 cellPadding=0 width="100%">
  <TR vAlign=top>
    <TD align=left><FONT size=4><B>Silver Standard Resources Inc.</B> </FONT></TD>
  </TR>
  <TR vAlign=top>
    <TD align=left><FONT size=3>Notes to the Consolidated Financial Statements
      </FONT></TD>
  </TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left><FONT
      size=3>December 31, 2011 and 2010 and January 1, 2010 </FONT></TD>
  </TR>
  <TR vAlign=top>
    <TD align=left>(tabular amounts expressed in thousands of United States dollars
      unless otherwise stated) </TD>
  </TR>
</TABLE>
<BR>
<TABLE
style="BORDER-COLOR: black; BORDER-COLLAPSE: collapse; FONT-SIZE: 10pt; "
border=0 cellSpacing=0 cellPadding=0 width="100%" BCLLIST>

  <TR>
    <TD vAlign=top width="5%"><B>2.</B> </TD>
    <TD>
      <P align=justify><B>SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
      (Cont&#146;d)</B></P></TD></TR></TABLE>
<P style="MARGIN-LEFT: 5%" align=justify><B>(i)</B><B>&nbsp; &nbsp;
</B><B>Current income tax </B></P>
<P style="MARGIN-LEFT: 5%" align=justify>Current tax for each taxable entity in
the Company is based on the local taxable profit for the period at the local
statutory tax rates enacted or substantively enacted at the date of the
statement of financial position. </P>
<P style="MARGIN-LEFT: 5%" align=justify><B>(ii)&nbsp;
</B><B>&nbsp;</B><B>Deferred tax </B></P>
<P style="MARGIN-LEFT: 5%" align=justify>Deferred tax is recognized, using the
liability method, on temporary differences between the carrying value of assets
and liabilities in the statement of financial position and the corresponding tax
bases used in the computation of taxable profit. Deferred tax is determined
using tax rates and tax laws that are enacted or substantively enacted at the
date of the statement of financial position and are expected to apply when the
related deferred tax asset is realized or the deferred tax liability is settled.
</P>
<P style="MARGIN-LEFT: 5%" align=justify>Deferred tax assets and liabilities are
not recognized if the temporary difference arises on the initial recognition of
assets and liabilities in a transaction other than a business combination, that
at the time of the transaction, affects neither the taxable nor the accounting
profit or loss.</P>
<P style="MARGIN-LEFT: 5%" align=justify>Deferred tax liabilities are recognized
for taxable temporary differences associated with investments in subsidiaries
and associates, and interests in joint ventures, except where the timing of the
reversal of the temporary difference is controlled by the Company and it is
probable that the temporary difference will not reverse in the foreseeable
future. </P>
<P style="MARGIN-LEFT: 5%" align=justify>Deferred tax assets are recognized for
all deductible temporary differences to the extent that it is probable that
taxable profits will be available against which those deductible temporary
differences can be utilized. Deferred tax assets are reviewed at each reporting
date and amended to the extent that it is no longer probable that the related
tax benefit will be realized. Deferred tax assets and liabilities are offset
when there is a legally enforceable right to set off the current tax assets
against the current tax liabilities and when they relate to income taxes levied
by the same taxation authority and the Company intends to settle its current tax
assets and liabilities on a net basis. </P>
<P style="MARGIN-LEFT: 5%" align=justify><B>(iii)&nbsp; Royalties and other tax
arrangements </B></P>
<P style="MARGIN-LEFT: 5%" align=justify>Royalties and other arrangements are
treated as taxation arrangements when they have the characteristics of tax. This
is considered to be the case when they are imposed under government authority
and the amount payable is calculated by reference to an income measure.
Obligations arising from royalty arrangements that do not satisfy these criteria
are recognized as current provisions and included within the cost of sales. </P>
<P style="MARGIN-LEFT: 5%" align=justify><B>q)&nbsp;&nbsp;
</B><B>&nbsp;</B><B>Earnings per share </B></P>
<P style="MARGIN-LEFT: 5%" align=justify>Basic earnings per share for the year
is calculated by dividing the profit attributable to shareholders of the Company
by the weighted average number of shares outstanding during the reporting
period. </P>
<P style="MARGIN-LEFT: 5%" align=justify>Diluted earnings per share is
calculated by adjusting the weighted average number of shares outstanding to
assume conversion of all potentially dilutive share equivalents, such as stock
options and convertible notes. The &#147;treasury stock method&#148; is used for the
assumed proceeds upon exercise of the dilutive instruments to determine the
number of shares assumed to be purchased at the average market price during the
period.</P>
<P style="MARGIN-LEFT: 5%" align=justify>A portion of the convertible notes may
be converted into common shares and hence the maximum dilution impact of these
is determined. </P>
<TABLE
style="BORDER-COLOR: black; BORDER-COLLAPSE: collapse; FONT-SIZE: 10pt; "
border=0 cellSpacing=0 cellPadding=0 width="100%">
  <TR vAlign=top>
    <TD style="BORDER-TOP: #000000 1px solid" align=right>19 | <FONT
      color=#7e7e7e>P a g e</FONT> </TD>
  </TR>
</TABLE>
<HR style="PAGE-BREAK-AFTER: always" align=center color=black SIZE=5
width="100%" noShade>
<A name=page_20></A><BR>
<TABLE
style="BORDER-COLOR: black; BORDER-COLLAPSE: collapse; FONT-SIZE: 10pt; "
border=0 cellSpacing=0 cellPadding=0 width="100%">
  <TR vAlign=top>
    <TD align=left><FONT size=4><B>Silver Standard Resources Inc.</B> </FONT></TD>
  </TR>
  <TR vAlign=top>
    <TD align=left><FONT size=3>Notes to the Consolidated Financial Statements
      </FONT></TD>
  </TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left><FONT
      size=3>December 31, 2011 and 2010 and January 1, 2010 </FONT></TD>
  </TR>
  <TR vAlign=top>
    <TD align=left>(tabular amounts expressed in thousands of United States dollars
      unless otherwise stated) </TD>
  </TR>
</TABLE>
<BR>
<TABLE
style="BORDER-COLOR: black; BORDER-COLLAPSE: collapse; FONT-SIZE: 10pt; "
border=0 cellSpacing=0 cellPadding=0 width="100%" BCLLIST>

  <TR>
    <TD vAlign=top width="5%"><B>2.</B> </TD>
    <TD>
      <P align=justify><B>SUMMARY OF 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>When a loss is incurred during the year, basic and
      diluted loss per share are the same because the exercise of options and
      convertible notes are considered to be
anti-dilutive.</P></TD></TR></TABLE>
<P style="MARGIN-LEFT: 5%" align=justify><B>r)&nbsp;&nbsp;
</B><B>&nbsp;</B><B>Financial instruments </B></P>
<P style="MARGIN-LEFT: 5%" align=justify><B>(i)</B><B>&nbsp;&nbsp;&nbsp;
</B><B>Financial assets and liabilities </B></P>
<P style="MARGIN-LEFT: 5%" align=justify>The Company classifies its financial
instruments in the following categories: at fair value through profit and loss
(&#147;FVTPL&#148;), loans and receivables, available-for-sale, held to maturity, and
other financial liabilities. The classification depends on the purpose for which
the financial assets or liabilities were obtained. Management determines the
classification of financial assets and liabilities at initial recognition. </P>
<P style="MARGIN-LEFT: 5%" align=justify>The Company has not classified any
financial instruments as held to maturity. The accounting policy for each of the
other categories is as follows:</P>
<P style="MARGIN-LEFT: 5%" align=justify> <B>Financial assets and liabilities at FVTPL
  </B>Financial assets and liabilities carried at FVTPL are recorded at fair value
  and transaction costs are expensed in the statement of income. Realized and
  unrealized gains and losses arising from changes in the fair value of the
  financial assets or liabilities held at FVTPL are included in the statement of
  income in the period in which they arise. Derivatives are included in this
  category unless they are designated as hedges. Generally, the Company does not
  acquire financial assets for the purpose of selling in the short term. </P>
<P style="MARGIN-LEFT: 5%" align=justify><B>Loans and receivables </B>Loans and
receivables are non-derivative financial assets with fixed or determinable
payments that are not quoted in an active market. They are classified as current
assets or non-current assets based on their maturity date. Loans and receivables
are initially recognized at fair value and subsequently carried at amortized
cost less any impairment. </P>
<P style="MARGIN-LEFT: 5%" align=justify><B>Available-for-sale financial assets
</B>Available-for-sale financial assets are non-derivatives that are either
designated as available for sale or not classified in any of the other
categories. </P>
<P style="MARGIN-LEFT: 5%" align=justify>Available-for-sale assets are initially
recorded at fair value plus transaction costs, and are subsequently carried at
fair value. All unrealized gains and losses arising from changes in the fair
value of assets classified as available-for-sale are recognized directly in
other comprehensive income, except for unrealized foreign exchange gains or
losses on monetary financial assets and impairment losses which are recognized
in the statement of income. Any reversal of a previously recognized impairment
loss on a non-monetary asset is recognized directly in other comprehensive
income. Realized gains and losses from the derecognition of available for sale
assets are recognized in the statement of income in the period derecognized with
any unrealized gains or losses being recycled from other comprehensive income.
</P>
<P style="MARGIN-LEFT: 5%" align=justify><B>Other financial liabilities
</B>Other financial liabilities are recognized initially at fair value, net of
transaction costs incurred and are subsequently stated at amortized cost. Any
difference between the initial cost and the redemption value is recognized in
the statement of income over the period to maturity using the effective interest
method. </P>
<P style="MARGIN-LEFT: 5%" align=justify><B>Derivative financial instruments
</B>The Company&#146;s policy with regard to &#145;Financial Risk Management&#146; is set out
in note 23. When the Company enters into derivative contracts these are designed
to reduce the exposures related to assets and liabilities, or anticipated
transactions. </P>
<TABLE
style="BORDER-COLOR: black; BORDER-COLLAPSE: collapse; FONT-SIZE: 10pt; "
border=0 cellSpacing=0 cellPadding=0 width="100%">
  <TR vAlign=top>
    <TD style="BORDER-TOP: #000000 1px solid" align=right>20 | <FONT
      color=#7e7e7e>P a g e</FONT> </TD>
  </TR>
</TABLE>
<HR style="PAGE-BREAK-AFTER: always" align=center color=black SIZE=5
width="100%" noShade>
<A name=page_21></A><BR>
<TABLE
style="BORDER-COLOR: black; BORDER-COLLAPSE: collapse; FONT-SIZE: 10pt; "
border=0 cellSpacing=0 cellPadding=0 width="100%">
  <TR vAlign=top>
    <TD align=left><FONT size=4><B>Silver Standard Resources Inc.</B> </FONT></TD>
  </TR>
  <TR vAlign=top>
    <TD align=left><FONT size=3>Notes to the Consolidated Financial Statements
      </FONT></TD>
  </TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left><FONT
      size=3>December 31, 2011 and 2010 and January 1, 2010 </FONT></TD>
  </TR>
  <TR vAlign=top>
    <TD align=left>(tabular amounts expressed in thousands of United States dollars
      unless otherwise stated) </TD>
  </TR>
</TABLE>
<BR>
<TABLE
style="BORDER-COLOR: black; BORDER-COLLAPSE: collapse; FONT-SIZE: 10pt; "
border=0 cellSpacing=0 cellPadding=0 width="100%" BCLLIST>

  <TR>
    <TD vAlign=top width="5%"><B>2.</B> </TD>
    <TD>
      <P align=justify><B>SUMMARY OF 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>Derivatives embedded in other financial instruments or
      other host contracts are treated as separate derivatives when their risks
      and characteristics are not closely related to their host contracts.
      Commodity-based embedded derivatives resulting from provisional sales
      prices of metals in concentrate are recognized in revenue as described in
      note 2 (e). Embedded derivatives in the convertible debenture receivable
      and the convertible notes are described in notes 5 and 14
    respectively.</P></TD></TR></TABLE>
<P style="MARGIN-LEFT: 5%" align=justify><B>(ii)</B><B>&nbsp;&nbsp; </B><B>Fair
value of financial instruments </B></P>
<P style="MARGIN-LEFT: 5%" align=justify>The fair values of quoted investments
are based on current bid prices. If the market for a financial asset is not
active (and for unlisted securities), the Company establishes fair value by
using valuation techniques. These include the use of recent arm&#146;s length
transactions, reference to other instruments that are substantially the same,
discounted cash flow analysis, and option pricing models refined to reflect the
issuer&#146;s specific circumstances. </P>
<P style="MARGIN-LEFT: 5%" align=justify><B>(iii) </B><B>&nbsp;</B><B>Impairment
of financial assets </B></P>
<P style="MARGIN-LEFT: 5%" align=justify>The Company assesses at each reporting
date whether there is objective evidence that a financial asset or a group of
financial assets is impaired. An evaluation is made as to whether a decline in
fair value is &#145;significant&#146; or &#145;prolonged&#146; based on indicators such as
significant adverse changes in the market, economic or legal environment. </P>
<P style="MARGIN-LEFT: 5%" align=justify>Impairment losses on financial assets
carried at amortized cost are reversed in subsequent periods if the amount of
the loss decreases and the decrease can be related objectively to an event
occurring after the impairment was recognized. </P>
<P style="MARGIN-LEFT: 5%" align=justify><B>(iv)&nbsp; &nbsp;Derecognition of
financial assets and liabilities </B></P>
<P style="MARGIN-LEFT: 5%" align=justify>Financial assets are derecognized when
the investments mature or are sold, and substantially all the risks and rewards
of ownership have been transferred. A financial liability is derecognized when
the obligation under the liability is discharged, cancelled or expired. Gains
and losses on derecognition are recognized within other income and finance costs
respectively. </P>
<P style="MARGIN-LEFT: 5%" align=justify><B>s)</B><B>&nbsp;&nbsp;&nbsp;
</B><B>Provisions for close down and restoration and for environmental clean-up
costs </B></P>
<P style="MARGIN-LEFT: 5%" align=justify>Close down and restoration costs
include dismantling and demolition of infrastructure and the removal of residual
materials and remediation of disturbed areas. Estimated close down and
restoration costs are provided for in the accounting period when the obligation
arising from the related disturbance occurs, based on the net present value of
estimated future costs. The cost estimates are updated during the life of the
operation to reflect known development, e.g. revisions to cost estimates and to
the estimated lives of the operations, and are subject to formal reviews at
regular intervals. </P>
<P style="MARGIN-LEFT: 5%" align=justify>The initial closure provision together
with changes resulting from changes in estimated cash flows or discount rates
are capitalized within property, plant and equipment. These costs are then
depreciated over the lives of the asset to which they relate, typically using
the units-of-production method. The amortization or unwinding of the discount
applied in establishing the net present value of provisions is charged to the
statement of income as a financing cost. </P>
<P style="MARGIN-LEFT: 5%" align=justify>Provision is made for the estimated
present value of the costs of environmental clean-up obligations outstanding at
the statement of financial position date. These costs are charged to the
statement of income as an operating cost.</P>
<TABLE
style="BORDER-COLOR: black; BORDER-COLLAPSE: collapse; FONT-SIZE: 10pt; "
border=0 cellSpacing=0 cellPadding=0 width="100%">
  <TR vAlign=top>
    <TD style="BORDER-TOP: #000000 1px solid" align=right>21 | <FONT
      color=#7e7e7e>P a g e</FONT> </TD>
  </TR>
</TABLE>
<HR style="PAGE-BREAK-AFTER: always" align=center color=black SIZE=5
width="100%" noShade>
<A name=page_22></A><BR>
<TABLE
style="BORDER-COLOR: black; BORDER-COLLAPSE: collapse; FONT-SIZE: 10pt; "
border=0 cellSpacing=0 cellPadding=0 width="100%">
  <TR vAlign=top>
    <TD align=left><FONT size=4><B>Silver Standard Resources Inc.</B> </FONT></TD>
  </TR>
  <TR vAlign=top>
    <TD align=left><FONT size=3>Notes to the Consolidated Financial Statements
      </FONT></TD>
  </TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left><FONT
      size=3>December 31, 2011 and 2010 and January 1, 2010 </FONT></TD>
  </TR>
  <TR vAlign=top>
    <TD align=left>(tabular amounts expressed in thousands of United States dollars
      unless otherwise stated) </TD>
  </TR>
</TABLE>
<BR>
<TABLE
style="BORDER-COLOR: black; BORDER-COLLAPSE: collapse; FONT-SIZE: 10pt; "
border=0 cellSpacing=0 cellPadding=0 width="100%" BCLLIST>

  <TR>
    <TD vAlign=top width="5%"><B>2.</B> </TD>
    <TD>
      <P align=justify><B>SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
      (Cont&#146;d)</B></P></TD></TR></TABLE>
<P style="MARGIN-LEFT: 5%" align=justify><B>t)&nbsp;&nbsp;
</B><B>&nbsp;</B><B>Leases </B></P>
<P style="MARGIN-LEFT: 5%" align=justify>Leases which transfer substantially all
of the benefits and risks incidental to the ownership of property are accounted
for as finance leases. Finance leases are capitalized at the lease commencement
at the lower of the fair market value of the leased property and the net present
value of the minimum lease payments. Each lease payment is allocated between the
liability and finance charge. The property, plant and equipment acquired under
finance leases is depreciated over the shorter of the asset&#146;s useful life and
the lease term. </P>
<P style="MARGIN-LEFT: 5%" align=justify>All other leases are accounted for as
operating leases wherein rental payments are expensed as incurred.</P>
<P style="MARGIN-LEFT: 5%" align=justify><B>u)</B><B>&nbsp;&nbsp;&nbsp;
</B><B>Significant accounting judgements and estimates</B></P>
<P style="MARGIN-LEFT: 5%" 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 consolidated financial
statements and related notes. These judgments and estimates are based on
management&#146;s best knowledge of the relevant facts and circumstances, having
regard to previous experience, but actual results may differ materially from the
amounts included in the financial statements. Information about such judgements
and estimation is contained in the accounting policies and/or notes to the
financial statements, and the key areas are summarized below. </P>
<P style="MARGIN-LEFT: 5%" align=justify>Areas of judgement that have the most
significant effect on the amounts recognized in these consolidated financial
statements are:</P>
<TABLE
style="BORDER-COLOR: black; BORDER-COLLAPSE: collapse; FONT-SIZE: 10pt; "
border=0 cellSpacing=0 cellPadding=0 width="100%">

  <TR vAlign=top>
    <TD width="5%"  >&nbsp;</TD>
    <TD align=center>- </TD>
    <TD width="90%" align=left >Review of asset carrying values
      and impairment assessment; </TD></TR>
  <TR>
    <TD  width="5%">&nbsp;</TD>
    <TD  align=center>&nbsp;</TD>
    <TD  width="90%" align=left>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD width="5%" >&nbsp;</TD>
    <TD align=center>- </TD>
    <TD width="90%" align=left >Mineral reserve and mineral
      resource estimates; </TD></TR>
  <TR>
    <TD  width="5%">&nbsp;</TD>
    <TD  align=center>&nbsp;</TD>
    <TD  width="90%" align=left>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD width="5%" >&nbsp;</TD>
    <TD align=center>- </TD>
    <TD width="90%" align=left >Determination of useful lives of
      property, plant and equipment; </TD></TR>
  <TR>
    <TD  width="5%">&nbsp;</TD>
    <TD  align=center>&nbsp;</TD>
    <TD  width="90%" align=left>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD width="5%" >&nbsp;</TD>
    <TD align=center>- </TD>
    <TD width="90%" align=left >Valuation of inventory; </TD></TR>
  <TR>
    <TD  width="5%">&nbsp;</TD>
    <TD  align=center>&nbsp;</TD>
    <TD  width="90%" align=left>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD width="5%" >&nbsp;</TD>
    <TD align=center>- </TD>
    <TD width="90%" align=left >Close down and restoration
      provision; </TD></TR>
  <TR>
    <TD  width="5%">&nbsp;</TD>
    <TD  align=center>&nbsp;</TD>
    <TD  width="90%" align=left>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD width="5%" >&nbsp;</TD>
    <TD align=center>- </TD>
    <TD width="90%" align=left >Deferred tax assets and
      liabilities; and </TD></TR>
  <TR>
    <TD  width="5%">&nbsp;</TD>
    <TD  align=center>&nbsp;</TD>
    <TD  width="90%" align=left>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD width="5%" >&nbsp;</TD>
    <TD align=center>- </TD>
    <TD width="90%" align=left >Functional currency.
  </TD></TR></TABLE>
<P style="MARGIN-LEFT: 5%" align=justify>Key sources of estimation uncertainty
that have the most significant effect on the amounts recognized in these
consolidated financial statements are: </P>
<TABLE
style="BORDER-COLOR: black; BORDER-COLLAPSE: collapse; FONT-SIZE: 10pt; "
border=0 cellSpacing=0 cellPadding=0 width="100%">

  <TR vAlign=top>
    <TD width="5%"  >&nbsp;</TD>
    <TD  align=center>-</TD>
    <TD width="90%" align=left >Review of asset carrying values
      and impairment assessment; </TD></TR>
  <TR>
    <TD  width="5%">&nbsp;</TD>
    <TD  align=center>&nbsp;</TD>
    <TD  width="90%" align=left>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD width="5%" >&nbsp;</TD>
    <TD  align=center>-</TD>
    <TD width="90%" align=left >Mineral reserve and mineral
      resource estimates; </TD></TR>
  <TR>
    <TD  width="5%">&nbsp;</TD>
    <TD  align=center>&nbsp;</TD>
    <TD  width="90%" align=left>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD width="5%" >&nbsp;</TD>
    <TD  align=center>-</TD>
    <TD width="90%" align=left >Valuation of inventory; </TD></TR>
  <TR>
    <TD  width="5%">&nbsp;</TD>
    <TD  align=center>&nbsp;</TD>
    <TD  width="90%" align=left>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD width="5%" >&nbsp;</TD>
    <TD  align=center>-</TD>
    <TD width="90%" align=left >Close down and restoration
      provision; </TD></TR>
  <TR>
    <TD  width="5%">&nbsp;</TD>
    <TD  align=center>&nbsp;</TD>
    <TD  width="90%" align=left>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD width="5%" >&nbsp;</TD>
    <TD  align=center>-</TD>
    <TD width="90%" align=left >Determination of the fair values
      of share-based compensation and of financial instruments; and </TD></TR>
  <TR>
    <TD  width="5%">&nbsp;</TD>
    <TD  align=center>&nbsp;</TD>
    <TD  width="90%" align=left>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD width="5%" >&nbsp;</TD>
    <TD  align=center>-</TD>
    <TD width="90%" align=left >Deferred tax assets and
      liabilities. </TD></TR></TABLE>
<P style="MARGIN-LEFT: 5%" align=justify>Each of these judgements and estimates
is considered in more detail below. </P>
<TABLE
style="BORDER-COLOR: black; BORDER-COLLAPSE: collapse; FONT-SIZE: 10pt; "
border=0 cellSpacing=0 cellPadding=0 width="100%">
  <TR vAlign=top>
    <TD style="BORDER-TOP: #000000 1px solid" align=right>22 | <FONT
      color=#7e7e7e>P a g e</FONT> </TD>
  </TR>
</TABLE>
<HR style="PAGE-BREAK-AFTER: always" align=center color=black SIZE=5
width="100%" noShade>
<A name="page_23"></A> <BR>
<TABLE
style="BORDER-COLOR: black; BORDER-COLLAPSE: collapse; FONT-SIZE: 10pt; "
border=0 cellSpacing=0 cellPadding=0 width="100%">
  <TR vAlign=top>
    <TD align=left><FONT size=4><B>Silver Standard Resources Inc.</B> </FONT></TD>
  </TR>
  <TR vAlign=top>
    <TD align=left><FONT size=3>Notes to the Consolidated Financial Statements
      </FONT></TD>
  </TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left><FONT
      size=3>December 31, 2011 and 2010 and January 1, 2010 </FONT></TD>
  </TR>
  <TR vAlign=top>
    <TD align=left>(tabular amounts expressed in thousands of United States dollars
      unless otherwise stated) </TD>
  </TR>
</TABLE>
<BR><TABLE 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>
<B>2.</B> 	</TD>
	<TD>
<P align="justify"><B>SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Cont&rsquo;d)</B></P>
	</TD>
</TR>
<TR><TD>&nbsp;</TD><TD>&nbsp;</TD></TR><TR>
<TD width=5%></TD>	<TD>
<P align="justify"><B>Review of asset carrying values and impairment assessment </B>In accordance with the Company&rsquo;s accounting policy (note 2 (m)), 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, which is often judgmental, a formal estimate of recoverable amount is performed and an impairment loss is recognized 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>&nbsp;</TD><TD>&nbsp;</TD></TR><TR>
<TD width=5%></TD>	<TD>
<P align="justify">The evaluation of asset carrying values for indications of impairment includes consideration of both external and internal sources of information, including such factors as market and economic conditions, production budgets and
forecasts, and life-of-mine estimates.</P>
	</TD>
</TR>
<TR><TD>&nbsp;</TD><TD>&nbsp;</TD></TR><TR>
<TD width=5%></TD>	<TD>
<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, mineral reserves, operating costs, closure and rehabilitation 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 statement of income.</P>
	</TD>
</TR>
<TR><TD>&nbsp;</TD><TD>&nbsp;</TD></TR><TR>
<TD width=5%></TD>	<TD>
<P align="justify"><B>Mineral reserve and mineral resource estimates </B>The Company estimates its mineral reserves and mineral resources based on information compiled by qualified persons as defined by National Instrument (&ldquo;NI&rdquo;) 43-101.
Mineral 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 mineral 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 mineral reserves and may,
ultimately, result in mineral reserve estimates being revised. Such changes in mineral reserves could impact on depreciation and amortization rates, asset carrying values and the provision for close down and restoration costs.</P>
	</TD>
</TR>
<TR><TD>&nbsp;</TD><TD>&nbsp;</TD></TR><TR>
<TD width=5%></TD>	<TD>
<P align="justify"><B>Determination of useful lives of property, plant and equipment </B>The Company uses the units-of-production method to depreciate mineral property expenditures, whereby depreciation is calculated using the tonnage of ore
extracted from the mine in the period as a percentage of the total tonnage of ore expected to be extracted in current and future periods based on proven and probable mineral reserves. As noted above there are numerous uncertainties inherent in
estimating ore reserves which are fundamental to this calculation. Other assets are depreciated using the straight-line method, which includes significant management judgement to determine useful lives.</P>
	</TD>
</TR>
<TR><TD>&nbsp;</TD><TD>&nbsp;</TD></TR><TR>
<TD width=5%></TD>	<TD>
<P align="justify"><B>Valuation of inventory </B>Stockpiled ore, work in process and finished goods are valued at the lower of cost and NRV. NRV is calculated as the estimated price at the time of sale based on prevailing and future metal prices
less estimated future production costs to convert the inventory into saleable form and associated selling costs. The determination of estimated future sales price, production and selling costs requires significant assumptions that may significantly
impact the stated value of the Company&rsquo;s inventory.</P>
	</TD>
</TR>
</TABLE>
<BR>
<TABLE
style="BORDER-COLOR: black; BORDER-COLLAPSE: collapse; FONT-SIZE: 10pt; "
border=0 cellSpacing=0 cellPadding=0 width="100%">
  <TR vAlign=top>
    <TD style="BORDER-TOP: #000000 1px solid" align=right>23 | <FONT
      color=#7e7e7e>P a g e</FONT> </TD>
  </TR>
</TABLE>
<HR noshade align="center" width="100%" size=5 color="black" style="page-break-after:always;">
<A name="page_24"></A> <BR>
<TABLE
style="BORDER-COLOR: black; BORDER-COLLAPSE: collapse; FONT-SIZE: 10pt; "
border=0 cellSpacing=0 cellPadding=0 width="100%">
  <TR vAlign=top>
    <TD align=left><FONT size=4><B>Silver Standard Resources Inc.</B> </FONT></TD>
  </TR>
  <TR vAlign=top>
    <TD align=left><FONT size=3>Notes to the Consolidated Financial Statements
      </FONT></TD>
  </TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left><FONT
      size=3>December 31, 2011 and 2010 and January 1, 2010 </FONT></TD>
  </TR>
  <TR vAlign=top>
    <TD align=left>(tabular amounts expressed in thousands of United States dollars
      unless otherwise stated) </TD>
  </TR>
</TABLE>
<BR><TABLE 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>
<B>2.</B> 	</TD>
	<TD>
<P align="justify"><B>SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Cont&rsquo;d)</B></P>
	</TD>
</TR>
<TR><TD>&nbsp;</TD><TD>&nbsp;</TD></TR><TR>
<TD width=5%></TD>	<TD>
<P align="justify"><B>Close down and restoration provision </B>Close down and restoration costs are a normal consequence of mining, and the majority of close down and restoration expenditures are incurred near the end of the life of the mine. The
Company&rsquo;s accounting policy requires the recognition of such provisions when the obligation occurs. The initial provisions are periodically reviewed during the life of the operation to reflect known developments, e.g. updated cost estimates
and revisions to the estimated lives of operations. Although the ultimate cost to be incurred is uncertain, the Company estimates its costs based on studies using current restoration standards and techniques. The initial closure provisions together
with changes, other than those arising from the unwinding of the discount applied in establishing the net present value of the provision, are capitalized within property plant and equipment and depreciated over the lives of the assets to which they
relate.</P>
	</TD>
</TR>
<TR><TD>&nbsp;</TD><TD>&nbsp;</TD></TR><TR>
<TD width=5%></TD>	<TD>
<P align="justify">The ultimate magnitude of these costs is uncertain, and cost estimates can vary in response to many factors including changes to the relevant legal requirements, the emergence of new restoration techniques or experience at other
mine sites, local inflation rates and exchange rates when liabilities are anticipated to be settled in a currency other than the United States dollar. The expected timing of expenditure can also change, for example, in response to changes in mineral
reserves or production rates or economic conditions. As a result there could be significant adjustments to the provision for close down and restoration, which would affect future financial results.</P>
	</TD>
</TR>
<TR><TD>&nbsp;</TD><TD>&nbsp;</TD></TR><TR>
<TD width=5%></TD>	<TD>
<P align="justify"><B>Determination of the fair value of share-based compensation </B>The fair value of share options and other forms of share-based compensation granted is computed to determine the relevant charge to the statement of income. In
order to compute this fair value the Company uses option pricing models that require management to make various estimates and assumptions in relation to the expected life of the awards, volatility, risk-free interest rates, and forfeiture rates.</P>
<P align="justify"><B>Valuation of financial instruments </B>The Company is required to determine the valuation of its convertible debenture receivable, convertible notes (at inception), and the embedded derivatives within sales contracts. The convertible debenture
  and notes required discounted cash flow analyses and option pricing models that involved various estimates and assumptions, whilst the valuation of the revenue derivatives requires estimates of settlement dates.</P></TD>
</TR>
<TR><TD>&nbsp;</TD><TD>&nbsp;</TD></TR><TR>
<TD width=5%></TD>	<TD>
<P align="justify"><B>Deferred tax assets and liabilities </B>The determination of the Company&rsquo;s tax expense for the period and deferred tax assets and liabilities involves significant estimation and judgement by management. In determining
these amounts, management interprets tax legislation in a variety of jurisdictions and makes estimates of the expected timing of the reversal of deferred tax assets and liabilities. Management also makes estimates of future earnings which affect the
extent to which potential future tax benefits may be used. The Company is subject to assessments by various taxation authorities, which may interpret legislation differently. These differences may affect the final amount or the timing of the payment
of taxes. The Company provides for such differences where known based on management&rsquo;s best estimate of the probable outcome of these matters.</P>
	</TD>
</TR>
<TR><TD>&nbsp;</TD><TD>&nbsp;</TD></TR><TR>
<TD width=5%></TD>	<TD>
<P align="justify"><B>Functional currency </B>The determination of a subsidiary&rsquo;s functional currency often requires significant judgement where the primary economic environment in which they operate may not be clear. This can have a
significant impact on the consolidated results of the Company based on the foreign currency translation methods described in note 2(d).</P>
	</TD>
</TR>
</TABLE>
<BR>
<TABLE
style="BORDER-COLOR: black; BORDER-COLLAPSE: collapse; FONT-SIZE: 10pt; "
border=0 cellSpacing=0 cellPadding=0 width="100%">
  <TR vAlign=top>
    <TD style="BORDER-TOP: #000000 1px solid" align=right>24 | <FONT
      color=#7e7e7e>P a g e</FONT> </TD>
  </TR>
</TABLE>
<HR noshade align="center" width="100%" size=5 color="black" style="page-break-after:always;">
<A name=page_25></A><BR>
<TABLE
style="BORDER-COLOR: black; BORDER-COLLAPSE: collapse; FONT-SIZE: 10pt; "
border=0 cellSpacing=0 cellPadding=0 width="100%">
  <TR vAlign=top>
    <TD align=left><FONT size=4><B>Silver Standard Resources Inc.</B> </FONT></TD>
  </TR>
  <TR vAlign=top>
    <TD align=left><FONT size=3>Notes to the Consolidated Financial Statements
      </FONT></TD>
  </TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left><FONT
      size=3>December 31, 2011 and 2010 and January 1, 2010 </FONT></TD>
  </TR>
  <TR vAlign=top>
    <TD align=left>(tabular amounts expressed in thousands of United States dollars
      unless otherwise stated) </TD>
  </TR>
</TABLE>
<BR>
<TABLE
style="BORDER-COLOR: black; BORDER-COLLAPSE: collapse; FONT-SIZE: 10pt; "
border=0 cellSpacing=0 cellPadding=0 width="100%" BCLLIST>

  <TR>
    <TD vAlign=top width="5%"><B>2.</B> </TD>
    <TD>
      <P align=justify><B>SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
      (Cont&#146;d)</B></P></TD></TR></TABLE>
<P style="MARGIN-LEFT: 5%" align=justify><B>v)</B><B>&nbsp;&nbsp;&nbsp;
</B><B>Future accounting changes </B></P>
<P style="MARGIN-LEFT: 5%" 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 multiple 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 recognized 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
recognized 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 style="MARGIN-LEFT: 5%" 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 style="MARGIN-LEFT: 5%" align=justify>This standard is required to be applied
for accounting periods beginning on or after January 1, 2015, 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; BORDER-COLLAPSE: collapse; FONT-SIZE: 10pt; "
border=0 cellSpacing=0 cellPadding=0 width="100%" BCLLIST>

  <TR>
    <TD width="10%"  >&nbsp;</TD>
    <TD vAlign=top width="5%" align=left>i. </TD>
    <TD>
      <P align=justify>IFRS 10, <I>Consolidated Financial Statements </I>(&#147;IFRS
      10&#148;) (see further details below)</P></TD></TR>
  <TR>
    <TD width="10%" >&nbsp;</TD>
    <TD width="5%" align=left>&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
  <TR>
    <TD width="10%" >&nbsp;</TD>
    <TD vAlign=top width="5%" align=left>ii. </TD>
    <TD>
      <P align=justify>IFRS 11, <I>Joint Arrangements </I>(&#147;IFRS 11&#148;) ( see
      further details below)</P></TD></TR>
  <TR>
    <TD width="10%" >&nbsp;</TD>
    <TD width="5%" align=left>&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
  <TR>
    <TD width="10%" >&nbsp;</TD>
    <TD vAlign=top width="5%" align=left>iii. </TD>
    <TD>
      <P align=justify>IFRS 12, <I>Disclosure of Interests in Other Entities
      </I>(&#147;IFRS 12&#148;) (see further details below)</P></TD></TR>
  <TR>
    <TD width="10%" >&nbsp;</TD>
    <TD width="5%" align=left>&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
  <TR>
    <TD width="10%" >&nbsp;</TD>
    <TD vAlign=top width="5%" align=left>iv. </TD>
    <TD>
      <P align=justify>IAS 27, <I>Separate Financial Statements </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="10%" >&nbsp;</TD>
    <TD width="5%" align=left>&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
  <TR>
    <TD width="10%" >&nbsp;</TD>
    <TD vAlign=top width="5%" align=left>v. </TD>
    <TD>
      <P align=justify>IAS 28, <I>Investments in Associates </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; BORDER-COLLAPSE: collapse; FONT-SIZE: 10pt; "
border=0 cellSpacing=0 cellPadding=0 width="100%" BCLLIST>

  <TR>
    <TD width="10%"  >&nbsp;</TD>
    <TD vAlign=top width="5%">i. </TD>
    <TD>
      <P align=justify>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><BR>
<TABLE
style="BORDER-COLOR: black; BORDER-COLLAPSE: collapse; FONT-SIZE: 10pt; "
border=0 cellSpacing=0 cellPadding=0 width="100%">
  <TR vAlign=top>
    <TD style="BORDER-TOP: #000000 1px solid" align=right>25 | <FONT
      color=#7e7e7e>P a g e</FONT> </TD>
  </TR>
</TABLE>
<HR style="PAGE-BREAK-AFTER: always" align=center color=black SIZE=5
width="100%" noShade>
<A name=page_26></A><BR>
<TABLE
style="BORDER-COLOR: black; BORDER-COLLAPSE: collapse; FONT-SIZE: 10pt; "
border=0 cellSpacing=0 cellPadding=0 width="100%">
  <TR vAlign=top>
    <TD align=left><FONT size=4><B>Silver Standard Resources Inc.</B> </FONT></TD>
  </TR>
  <TR vAlign=top>
    <TD align=left><FONT size=3>Notes to the Consolidated Financial Statements
      </FONT></TD>
  </TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left><FONT
      size=3>December 31, 2011 and 2010 and January 1, 2010 </FONT></TD>
  </TR>
  <TR vAlign=top>
    <TD align=left>(tabular amounts expressed in thousands of United States dollars
      unless otherwise stated) </TD>
  </TR>
</TABLE>
<BR>
<TABLE
style="BORDER-COLOR: black; BORDER-COLLAPSE: collapse; FONT-SIZE: 10pt; "
border=0 cellSpacing=0 cellPadding=0 width="100%" BCLLIST>

  <TR>
    <TD vAlign=top width="5%"><B>2.</B> </TD>
    <TD>
      <P align=justify><B>SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
      (Cont&#146;d)</B></P></TD></TR></TABLE><BR>
<TABLE
style="BORDER-COLOR: black; BORDER-COLLAPSE: collapse; FONT-SIZE: 10pt; "
border=0 cellSpacing=0 cellPadding=0 width="100%" BCLLIST>

  <TR>
    <TD width="10%"  >&nbsp;</TD>
    <TD vAlign=top width="5%">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="10%" >&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
  <TR>
    <TD width="10%" >&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 style="MARGIN-LEFT: 5%" 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 style="MARGIN-LEFT: 5%" 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 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 from the date of
adoption; the Company has not determined whether it will adopt the standard
early. </P>
<TABLE
style="BORDER-COLOR: black; BORDER-COLLAPSE: collapse; FONT-SIZE: 10pt; "
border=0 cellSpacing=0 cellPadding=0 width="100%">
  <TR vAlign=top>
    <TD style="BORDER-TOP: #000000 1px solid" align=right>26 | <FONT
      color=#7e7e7e>P a g e</FONT> </TD>
  </TR>
</TABLE>
<HR style="PAGE-BREAK-AFTER: always" align=center color=black SIZE=5
width="100%" noShade>
<A name=page_27></A><BR>
<TABLE
style="BORDER-COLOR: black; BORDER-COLLAPSE: collapse; FONT-SIZE: 10pt; "
border=0 cellSpacing=0 cellPadding=0 width="100%">
  <TR vAlign=top>
    <TD align=left><FONT size=4><B>Silver Standard Resources Inc.</B> </FONT></TD>
  </TR>
  <TR vAlign=top>
    <TD align=left><FONT size=3>Notes to the Consolidated Financial Statements
      </FONT></TD>
  </TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left><FONT
      size=3>December 31, 2011 and 2010 and January 1, 2010 </FONT></TD>
  </TR>
  <TR vAlign=top>
    <TD align=left>(tabular amounts expressed in thousands of United States dollars
      unless otherwise stated) </TD>
  </TR>
</TABLE>
<BR>
<TABLE
style="BORDER-COLOR: black; BORDER-COLLAPSE: collapse; FONT-SIZE: 10pt; "
border=0 cellSpacing=0 cellPadding=0 width="100%" BCLLIST>

  <TR>
    <TD vAlign=top width="5%"><B>2.</B> </TD>
    <TD>
      <P align=justify><B>SUMMARY OF 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>In October 2011 the IASB issued IFRIC 20 <I>Stripping
      Costs in the Production Phase of a Surface 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></TD></TR>
  <TR>
    <TD width="5%">&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
  <TR>
    <TD vAlign=top width="5%"><B>3.</B> </TD>
    <TD>
      <P align=justify><B>CASH AND CASH
EQUIVALENTS</B></P></TD></TR></TABLE><BR>
<TABLE
style="BORDER-COLOR: black; BORDER-COLLAPSE: collapse; FONT-SIZE: 10pt; "
border=0 cellSpacing=0 cellPadding=0 width="100%">

  <TR vAlign=top>
    <TD width="5%"  >&nbsp;</TD>
    <TD align=left>&nbsp; </TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="12%" align=right nowrap><B>December 31,</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  width="2%" align=left nowrap>&nbsp;</TD>
    <TD  width="1%" align=left nowrap>&nbsp;</TD>
    <TD width="12%" align=right nowrap><B>January 1,</B> </TD>
  <TD  width="2%" 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 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>2010</B> </TD>
    <TD  width="2%" 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 style="BORDER-BOTTOM: #000000 1px solid"  width="1%"
    align=right>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="12%" align=right>$</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="2%"
    align=right>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="1%"
    align=right>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="12%" align=right>$</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="2%"
    align=right>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="1%"
    align=right>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="12%" align=right>$</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="2%"
    align=right>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD width="5%" >&nbsp;</TD>
    <TD bgColor=#e6efff align=left>Cash and bank balances </TD>
    <TD bgColor=#e6efff  width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="12%" align=right><B>94,711</B> </TD>
    <TD bgColor=#e6efff  width="2%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff  width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="12%" align=right>61,663 </TD>
    <TD bgColor=#e6efff  width="2%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff  width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="12%" align=right>21,659 </TD>
    <TD bgColor=#e6efff  width="2%" align=left>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD width="5%" >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>Short-term
      investments </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="1%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="12%"
      align=right><B>234,344</B> </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="2%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="1%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="12%"
      align=right>170,648 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="2%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="1%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="12%" align=right>5,000
    </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="2%"
    align=left>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD width="5%" >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" bgColor=#e6efff
      align=left>&nbsp; </TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" bgColor=#e6efff
    width="1%" align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" bgColor=#e6efff width="12%"
    align=right><B>329,055</B> </TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" bgColor=#e6efff
    width="2%" align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" bgColor=#e6efff
    width="1%" align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" bgColor=#e6efff width="12%"
    align=right>232,311 </TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" bgColor=#e6efff
    width="2%" align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" bgColor=#e6efff
    width="1%" align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" bgColor=#e6efff width="12%"
    align=right>26,659 </TD>
  <TD style="BORDER-BOTTOM: #000000 2px solid" bgColor=#e6efff
    width="2%" align=left>&nbsp;</TD>
  </TR></TABLE><BR>
<TABLE
style="BORDER-COLOR: black; BORDER-COLLAPSE: collapse; FONT-SIZE: 10pt; "
border=0 cellSpacing=0 cellPadding=0 width="100%" BCLLIST>

  <TR>
    <TD vAlign=top width="5%"><B>4.</B> </TD>
    <TD>
      <P align=justify><B>TRADE AND OTHER
RECEIVABLES</B></P></TD></TR></TABLE><BR>
<TABLE
style="BORDER-COLOR: black; BORDER-COLLAPSE: collapse; FONT-SIZE: 10pt; "
border=0 cellSpacing=0 cellPadding=0 width="100%">

  <TR vAlign=top>
    <TD width="5%"  >&nbsp;</TD>
    <TD align=left>&nbsp; </TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="12%" align=right nowrap><B>December 31,</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  width="2%" align=left nowrap>&nbsp;</TD>
    <TD  width="1%" align=left nowrap>&nbsp;</TD>
    <TD width="12%" align=right nowrap><B>January 1,</B> </TD>
  <TD  width="2%" 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 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>2010</B> </TD>
    <TD  width="2%" 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 style="BORDER-BOTTOM: #000000 1px solid"  width="1%"
    align=right>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="12%" align=right>$</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="2%"
    align=right>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="1%"
    align=right>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="12%" align=right>$</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="2%"
    align=right>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="1%"
    align=right>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="12%" align=right>$</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="2%"
    align=right>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD width="5%" >&nbsp;</TD>
    <TD bgColor=#e6efff align=left>Trade receivables </TD>
    <TD bgColor=#e6efff  width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="12%" align=right><B>-</B> </TD>
    <TD bgColor=#e6efff  width="2%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff  width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="12%" align=right>15,409 </TD>
    <TD bgColor=#e6efff  width="2%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff  width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="12%" align=right>3,335 </TD>
    <TD bgColor=#e6efff  width="2%" align=left>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD width="5%" >&nbsp;</TD>
    <TD align=left>Tax receivables </TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="12%" align=right><B>7,040</B> </TD>
    <TD  width="2%" align=left>&nbsp;</TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="12%" align=right>10,989 </TD>
    <TD  width="2%" align=left>&nbsp;</TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="12%" align=right>1,018 </TD>
    <TD  width="2%" align=left>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD width="5%" >&nbsp;</TD>
    <TD bgColor=#e6efff align=left>Prepayments and deposits </TD>
    <TD bgColor=#e6efff  width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="12%" align=right><B>6,656</B> </TD>
    <TD bgColor=#e6efff  width="2%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff  width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="12%" align=right>5,779 </TD>
    <TD bgColor=#e6efff  width="2%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff  width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="12%" align=right>2,013 </TD>
    <TD bgColor=#e6efff  width="2%" align=left>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD width="5%" >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>Other receivables
    </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="1%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="12%"
      align=right><B>5,705</B> </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="2%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="1%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="12%" align=right>3,739
    </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="2%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="1%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="12%" align=right>1,885
    </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="2%"
    align=left>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD width="5%" >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" bgColor=#e6efff
      align=left>&nbsp; </TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" bgColor=#e6efff
    width="1%" align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" bgColor=#e6efff width="12%"
    align=right><B>19,401</B> </TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" bgColor=#e6efff
    width="2%" align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" bgColor=#e6efff
    width="1%" align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" bgColor=#e6efff width="12%"
    align=right>35,916 </TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" bgColor=#e6efff
    width="2%" align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" bgColor=#e6efff
    width="1%" align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" bgColor=#e6efff width="12%"
    align=right>8,251 </TD>
  <TD style="BORDER-BOTTOM: #000000 2px solid" bgColor=#e6efff
    width="2%" align=left>&nbsp;</TD>
  </TR></TABLE>
<P style="MARGIN-LEFT: 5%" align=justify>The Company expects full recovery of
the amounts outstanding and therefore no allowance has been recorded against
these receivables. No receivables are past due and all are expected to be
settled within twelve months.</P>
<P style="MARGIN-LEFT: 5%" align=justify>Credit risk has been further discussed
in note 23(b). The Company did not hold any collateral for any receivable
amounts outstanding at December 31, 2011, December 31, 2010, or January 1, 2010.
</P>
<TABLE
style="BORDER-COLOR: black; BORDER-COLLAPSE: collapse; FONT-SIZE: 10pt; "
border=0 cellSpacing=0 cellPadding=0 width="100%">
  <TR vAlign=top>
    <TD style="BORDER-TOP: #000000 1px solid" align=right>27 | <FONT
      color=#7e7e7e>P a g e</FONT> </TD>
  </TR>
</TABLE>
<HR style="PAGE-BREAK-AFTER: always" align=center color=black SIZE=5
width="100%" noShade>
<A name=page_28></A><BR>
<TABLE
style="BORDER-COLOR: black; BORDER-COLLAPSE: collapse; FONT-SIZE: 10pt; "
border=0 cellSpacing=0 cellPadding=0 width="100%">
  <TR vAlign=top>
    <TD align=left><FONT size=4><B>Silver Standard Resources Inc.</B> </FONT></TD>
  </TR>
  <TR vAlign=top>
    <TD align=left><FONT size=3>Notes to the Consolidated Financial Statements
      </FONT></TD>
  </TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left><FONT
      size=3>December 31, 2011 and 2010 and January 1, 2010 </FONT></TD>
  </TR>
  <TR vAlign=top>
    <TD align=left>(tabular amounts expressed in thousands of United States dollars
      unless otherwise stated) </TD>
  </TR>
</TABLE>
<BR>
<TABLE
style="BORDER-COLOR: black; BORDER-COLLAPSE: collapse; FONT-SIZE: 10pt; "
border=0 cellSpacing=0 cellPadding=0 width="100%" BCLLIST>

  <TR>
    <TD vAlign=top width="5%"><B>5.</B> </TD>
    <TD>
      <P align=justify><B>OTHER ASSETS</B></P></TD></TR></TABLE><BR>
<TABLE
style="BORDER-COLOR: black; BORDER-COLLAPSE: collapse; FONT-SIZE: 9pt; "
border=0 cellSpacing=0 cellPadding=0 width="100%">
  <TR vAlign=top>
    <TD width="5%" >&nbsp;</TD>
    <TD align=left>&nbsp; </TD>
    <TD width="1%" align=left>&nbsp;</TD>
    <TD colspan="4" align=center><B>December 31, 2011</B> </TD>
    <TD width="2%" align=center>&nbsp;</TD>
    <TD width="1%" align=center>&nbsp;</TD>
    <TD colspan="4" align=center><B>December 31, 2010</B> </TD>
    <TD width="2%" align=center>&nbsp;</TD>
    <TD width="1%" align=center>&nbsp;</TD>
    <TD colspan="4" align=center><B>January 1, 2010</B> </TD>
    <TD width="2%" 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 width="9%" align=right><B>Non-current</B> </TD>
    <TD width="2%" align=left>&nbsp;</TD>
    <TD width="1%" align=left>&nbsp;</TD>
    <TD width="9%" align=right><B>Current </B></TD>
    <TD width="2%" align=left>&nbsp;</TD>
    <TD width="1%" align=left>&nbsp;</TD>
    <TD width="9%" align=right><STRONG>Non-current</STRONG> </TD>
    <TD width="2%" align=left>&nbsp;</TD>
    <TD width="1%" align=left>&nbsp;</TD>
    <TD width="9%" align=right><B>Current</B> </TD>
    <TD width="2%" align=left>&nbsp;</TD>
    <TD width="1%" align=left>&nbsp;</TD>
    <TD width="9%" align=right><STRONG>Non-current</STRONG> </TD>
    <TD width="2%" align=left>&nbsp;</TD>
    <TD width="1%" align=left>&nbsp;</TD>
    <TD width="9%" align=right><B>Current</B> </TD>
    <TD width="2%" 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 style="BORDER-BOTTOM: #000000 1px solid" width="1%"
    align=right>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="9%" align=right>$</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="2%"
    align=right>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="1%"
    align=right>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="9%" align=right>$</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="2%"
    align=right>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="1%"
    align=right>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="9%" align=right>$</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="2%"
    align=right>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="1%"
    align=right>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="9%" align=right>$</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="2%"
    align=right>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="1%"
    align=right>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="9%" align=right>$</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="2%"
    align=right>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="1%"
    align=right>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="9%" align=right>$</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="2%"
    align=right>&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD width="5%">&nbsp;</TD>
    <TD align=left><B>Financial assets:</B> </TD>
    <TD vAlign=bottom width="1%" align=left>&nbsp;</TD>
    <TD vAlign=bottom width="9%" align=left>&nbsp; </TD>
    <TD vAlign=bottom width="2%" align=left>&nbsp;</TD>
    <TD vAlign=bottom width="1%" align=left>&nbsp;</TD>
    <TD vAlign=bottom width="9%" align=left>&nbsp; </TD>
    <TD vAlign=bottom width="2%" align=left>&nbsp;</TD>
    <TD vAlign=bottom width="1%" align=left>&nbsp;</TD>
    <TD vAlign=bottom width="9%" align=left>&nbsp; </TD>
    <TD vAlign=bottom width="2%" align=left>&nbsp;</TD>
    <TD vAlign=bottom width="1%" align=left>&nbsp;</TD>
    <TD vAlign=bottom width="9%" align=left>&nbsp; </TD>
    <TD vAlign=bottom width="2%" align=left>&nbsp;</TD>
    <TD vAlign=bottom width="1%" align=left>&nbsp;</TD>
    <TD vAlign=bottom width="9%" align=left>&nbsp; </TD>
    <TD vAlign=bottom width="2%" align=left>&nbsp;</TD>
    <TD vAlign=bottom width="1%" align=left>&nbsp;</TD>
    <TD vAlign=bottom width="9%" align=left>&nbsp; </TD>
    <TD vAlign=bottom width="2%" align=left>&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD width="5%">&nbsp;</TD>
    <TD bgColor=#e6efff align=left>Restricted cash <SUP>(a)</SUP> </TD>
    <TD bgColor=#e6efff vAlign=bottom width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff vAlign=bottom width="9%" align=right><B>1,768</B> </TD>
    <TD bgColor=#e6efff vAlign=bottom width="2%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff vAlign=bottom width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff vAlign=bottom width="9%" align=right><B>-</B> </TD>
    <TD bgColor=#e6efff vAlign=bottom width="2%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff vAlign=bottom width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff vAlign=bottom width="9%" align=right>2,071 </TD>
    <TD bgColor=#e6efff vAlign=bottom width="2%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff vAlign=bottom width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff vAlign=bottom width="9%" align=right>- </TD>
    <TD bgColor=#e6efff vAlign=bottom width="2%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff vAlign=bottom width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff vAlign=bottom width="9%" align=right>1,934 </TD>
    <TD bgColor=#e6efff vAlign=bottom width="2%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff vAlign=bottom width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff vAlign=bottom width="9%" align=right>- </TD>
    <TD bgColor=#e6efff vAlign=bottom width="2%" align=left>&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD width="5%">&nbsp;</TD>
    <TD align=left>Marketable securities <SUP>(b)</SUP> </TD>
    <TD vAlign=bottom width="1%" align=left>&nbsp;</TD>
    <TD vAlign=bottom width="9%" align=right><B>-</B> </TD>
    <TD vAlign=bottom width="2%" align=left>&nbsp;</TD>
    <TD vAlign=bottom width="1%" align=left>&nbsp;</TD>
    <TD vAlign=bottom width="9%" align=right><B>33,539</B> </TD>
    <TD vAlign=bottom width="2%" align=left>&nbsp;</TD>
    <TD vAlign=bottom width="1%" align=left>&nbsp;</TD>
    <TD vAlign=bottom width="9%" align=right>- </TD>
    <TD vAlign=bottom width="2%" align=left>&nbsp;</TD>
    <TD vAlign=bottom width="1%" align=left>&nbsp;</TD>
    <TD vAlign=bottom width="9%" align=right>33,465 </TD>
    <TD vAlign=bottom width="2%" align=left>&nbsp;</TD>
    <TD vAlign=bottom width="1%" align=left>&nbsp;</TD>
    <TD vAlign=bottom width="9%" align=right>- </TD>
    <TD vAlign=bottom width="2%" align=left>&nbsp;</TD>
    <TD vAlign=bottom width="1%" align=left>&nbsp;</TD>
    <TD vAlign=bottom width="9%" align=right>17,863 </TD>
    <TD vAlign=bottom width="2%" align=left>&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD width="5%">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff
      align=left>Convertible debenture receivable <SUP>(c)</SUP> </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff vAlign=bottom
    width="1%" align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff vAlign=bottom
    width="9%" align=right><B>-</B> </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff vAlign=bottom
    width="2%" align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff vAlign=bottom
    width="1%" align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff vAlign=bottom
    width="9%" align=right><B>-</B> </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff vAlign=bottom
    width="2%" align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff vAlign=bottom
    width="1%" align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff vAlign=bottom
    width="9%" align=right>7,180 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff vAlign=bottom
    width="2%" align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff vAlign=bottom
    width="1%" align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff vAlign=bottom
    width="9%" align=right>186 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff vAlign=bottom
    width="2%" align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff vAlign=bottom
    width="1%" align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff vAlign=bottom
    width="9%" align=right>6,081 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff vAlign=bottom
    width="2%" align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff vAlign=bottom
    width="1%" align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff vAlign=bottom
    width="9%" align=right>1,859 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff vAlign=bottom
    width="2%" 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 style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom width="1%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom width="9%"
    align=right><B>1,768</B> </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom width="2%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom width="1%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom width="9%"
    align=right><B>33,539</B> </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom width="2%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom width="1%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom width="9%"
    align=right>9,251 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom width="2%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom width="1%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom width="9%"
    align=right>33,651 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom width="2%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom width="1%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom width="9%"
    align=right>8,015 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom width="2%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom width="1%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom width="9%"
    align=right>19,722 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom width="2%"
    align=left>&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD width="5%">&nbsp;</TD>
    <TD bgColor=#e6efff align=left><B>Other assets:</B> </TD>
    <TD bgColor=#e6efff vAlign=bottom width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff vAlign=bottom width="9%" align=left>&nbsp; </TD>
    <TD bgColor=#e6efff vAlign=bottom width="2%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff vAlign=bottom width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff vAlign=bottom width="9%" align=left>&nbsp; </TD>
    <TD bgColor=#e6efff vAlign=bottom width="2%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff vAlign=bottom width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff vAlign=bottom width="9%" align=left>&nbsp; </TD>
    <TD bgColor=#e6efff vAlign=bottom width="2%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff vAlign=bottom width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff vAlign=bottom width="9%" align=left>&nbsp; </TD>
    <TD bgColor=#e6efff vAlign=bottom width="2%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff vAlign=bottom width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff vAlign=bottom width="9%" align=left>&nbsp; </TD>
    <TD bgColor=#e6efff vAlign=bottom width="2%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff vAlign=bottom width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff vAlign=bottom width="9%" align=left>&nbsp; </TD>
    <TD bgColor=#e6efff vAlign=bottom width="2%" align=left>&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD width="5%">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>Long-term inventory
      (note 6) </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom width="1%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom width="9%"
    align=right><B>6,454</B> </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom width="2%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom width="1%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom width="9%"
    align=right><B>-</B> </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom width="2%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom width="1%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom width="9%"
    align=right>- </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom width="2%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom width="1%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom width="9%"
    align=right>- </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom width="2%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom width="1%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom width="9%"
    align=right>- </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom width="2%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom width="1%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom width="9%"
    align=right>- </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom width="2%"
    align=left>&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD width="5%">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" bgColor=#e6efff
      align=left>&nbsp; </TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" bgColor=#e6efff vAlign=bottom
    width="1%" align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" bgColor=#e6efff vAlign=bottom
    width="9%" align=right><B>8,222</B> </TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" bgColor=#e6efff vAlign=bottom
    width="2%" align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" bgColor=#e6efff vAlign=bottom
    width="1%" align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" bgColor=#e6efff vAlign=bottom
    width="9%" align=right><B>33,539</B> </TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" bgColor=#e6efff vAlign=bottom
    width="2%" align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" bgColor=#e6efff vAlign=bottom
    width="1%" align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" bgColor=#e6efff vAlign=bottom
    width="9%" align=right>9,251 </TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" bgColor=#e6efff vAlign=bottom
    width="2%" align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" bgColor=#e6efff vAlign=bottom
    width="1%" align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" bgColor=#e6efff vAlign=bottom
    width="9%" align=right>33,651 </TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" bgColor=#e6efff vAlign=bottom
    width="2%" align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" bgColor=#e6efff vAlign=bottom
    width="1%" align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" bgColor=#e6efff vAlign=bottom
    width="9%" align=right>8,015 </TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" bgColor=#e6efff vAlign=bottom
    width="2%" align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" bgColor=#e6efff vAlign=bottom
    width="1%" align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" bgColor=#e6efff vAlign=bottom
    width="9%" align=right>19,722 </TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" bgColor=#e6efff vAlign=bottom
    width="2%" align=left>&nbsp;</TD>
  </TR>
</TABLE>
<BR>
<TABLE
style="BORDER-COLOR: black; BORDER-COLLAPSE: collapse; FONT-SIZE: 10pt; "
border=0 cellSpacing=0 cellPadding=0 width="100%" BCLLIST>

  <TR>
    <TD width="5%" >&nbsp;</TD>
    <TD vAlign=top width="5%">(a) </TD>
    <TD>
      <P align=justify>The Company has security deposits with various government
      agencies in relation to its close down and restoration provisions. $25,000
      (December 31, 2010 - $328,000; January 1, 2010 - $191,000) is in the form
      of cash deposits and $1,743,000 (December 31, 2010 - $1,743,000; January
      1, 2010 - $1,743,000) is security for a reclamation bond.</P></TD></TR>
  <TR>
    <TD width="5%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
  <TR>
    <TD width="5%">&nbsp;</TD>
    <TD vAlign=top width="5%">(b) </TD>
    <TD>
      <P align=justify>Marketable securities&#146; cost at December 31, 2011 was
      $29,793,000 (December 31, 2010 - $8,604,000; January 1, 2010 -
      $7,732,000).</P></TD></TR>
  <TR>
    <TD width="5%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
  <TR>
    <TD width="5%">&nbsp;</TD>
    <TD vAlign=top width="5%">(c) </TD>
    <TD>
      <P align=justify>The Company received a $10,060,000 (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, and the Company had the option to convert any
      portion of the principal amount into Aurcana common shares at a deemed
      conversion price of C$1.52 per share (up to 6,600,000 shares) until that
      date. 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 for the year ended December 31,
  2009.</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>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, recorded within other income (note 19).
      The Company retained the option to convert any portion of the remaining
      principal amount into Aurcana common shares at the deemed conversion price
      of C$1.52 per share (up to 1,980,000 shares) until July 15,
2012.</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 settled the debenture receivable in full on
      December 22, 2011.</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>Prior to being settled the Company presented the note
      receivable separately from the conversion feature. The Company estimated
      the carrying value of the note receivable component using a discounted
      cash flow model, and estimated the fair value of the conversion feature
      using the Black-Scholes model. The value of the conversion feature was
      remeasured at each reporting date until settlement, with changes in the
      fair value recorded in other income (other expenses) (note
  19).</P></TD></TR></TABLE><BR>
<TABLE
style="BORDER-COLOR: black; BORDER-COLLAPSE: collapse; FONT-SIZE: 10pt; "
border=0 cellSpacing=0 cellPadding=0 width="100%">
  <TR vAlign=top>
    <TD style="BORDER-TOP: #000000 1px solid" align=right>28 | <FONT
      color=#7e7e7e>P a g e</FONT> </TD>
  </TR>
</TABLE>
<HR style="PAGE-BREAK-AFTER: always" align=center color=black SIZE=5
width="100%" noShade>
<A name=page_29></A><BR>
<TABLE
style="BORDER-COLOR: black; BORDER-COLLAPSE: collapse; FONT-SIZE: 10pt; "
border=0 cellSpacing=0 cellPadding=0 width="100%">
  <TR vAlign=top>
    <TD align=left><FONT size=4><B>Silver Standard Resources Inc.</B> </FONT></TD>
  </TR>
  <TR vAlign=top>
    <TD align=left><FONT size=3>Notes to the Consolidated Financial Statements
      </FONT></TD>
  </TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left><FONT
      size=3>December 31, 2011 and 2010 and January 1, 2010 </FONT></TD>
  </TR>
  <TR vAlign=top>
    <TD align=left>(tabular amounts expressed in thousands of United States dollars
      unless otherwise stated) </TD>
  </TR>
</TABLE>
<BR>
<TABLE
style="BORDER-COLOR: black; BORDER-COLLAPSE: collapse; FONT-SIZE: 10pt; "
border=0 cellSpacing=0 cellPadding=0 width="100%" BCLLIST>

  <TR>
    <TD vAlign=top width="5%"><B>5.</B> </TD>
    <TD>
      <P align=justify><B>OTHER ASSETS (Cont&#146;d)</B></P></TD></TR></TABLE>
<P style="MARGIN-LEFT: 10%" align=justify>Movement in the convertible debenture
receivable was as follows: </P>
<DIV align=center>
<TABLE
style="BORDER-COLOR: black; BORDER-COLLAPSE: collapse; FONT-SIZE: 10pt; "
border=0 cellSpacing=0 cellPadding=0 width="80%">

  <TR vAlign=top>
    <TD align=left>&nbsp; </TD>
    <TD width="1%" align=left>&nbsp;</TD>
    <TD width="15%" 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="15%" align=right nowrap><B>December 31,</B> </TD>
    <TD width="2%" align=left>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left>&nbsp; </TD>
    <TD width="1%" align=left>&nbsp;</TD>
    <TD width="15%" align=right><B>2011</B> </TD>
    <TD width="2%" align=left>&nbsp;</TD>
    <TD width="1%" align=left>&nbsp;</TD>
    <TD width="15%" align=right><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" width="1%"
    align=right>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="15%" align=right>$</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="2%"
    align=right>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="1%"
    align=right>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="15%" align=right>$</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="2%"
    align=right>&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD bgColor=#e6efff align=left>Balance, beginning of year </TD>
    <TD bgColor=#e6efff width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="15%" align=right><B>7,366</B> </TD>
    <TD bgColor=#e6efff width="2%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="15%" align=right>6,258 </TD>
    <TD bgColor=#e6efff width="2%" align=left>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left>Interest accrued </TD>
    <TD width="1%" align=left>&nbsp;</TD>
    <TD width="15%" align=right><B>1,158</B> </TD>
    <TD width="2%" align=left>&nbsp;</TD>
    <TD width="1%" align=left>&nbsp;</TD>
    <TD width="15%" align=right>1,253 </TD>
    <TD width="2%" align=left>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD bgColor=#e6efff align=left>Interest received </TD>
    <TD bgColor=#e6efff width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="15%" align=right><B>(658</B></TD>
    <TD bgColor=#e6efff width="2%" align=left><B>)</B> </TD>
    <TD bgColor=#e6efff width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="15%" align=right>(412</TD>
    <TD bgColor=#e6efff width="2%" align=left>) </TD></TR>
  <TR vAlign=top>
    <TD align=left>Principal received </TD>
    <TD width="1%" align=left>&nbsp;</TD>
    <TD width="15%" align=right><B>(10,060</B></TD>
    <TD width="2%" align=left><B>)</B> </TD>
    <TD width="1%" align=left>&nbsp;</TD>
    <TD width="15%" align=right>- </TD>
    <TD width="2%" align=left>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD bgColor=#e6efff align=left>Fair value of conversion feature adjustment
    </TD>
    <TD bgColor=#e6efff width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="15%" align=right><B>(386</B></TD>
    <TD bgColor=#e6efff width="2%" align=left><B>)</B> </TD>
    <TD bgColor=#e6efff width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="15%" align=right>(102</TD>
    <TD bgColor=#e6efff width="2%" align=left>) </TD></TR>
  <TR vAlign=top>
    <TD align=left>Impairment reversal </TD>
    <TD width="1%" align=left>&nbsp;</TD>
    <TD width="15%" align=right><B>2,400</B> </TD>
    <TD width="2%" align=left>&nbsp;</TD>
    <TD width="1%" align=left>&nbsp;</TD>
    <TD width="15%" align=right>- </TD>
    <TD width="2%" align=left>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff
      align=left>Foreign exchange impact </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff width="1%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff width="15%"
    align=right><B>180</B> </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff width="2%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff width="1%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff width="15%"
    align=right>369 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff width="2%"
    align=left>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=left>Balance, end of
      year </TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" width="1%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" width="15%" align=right>- </TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" width="2%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" width="1%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" width="15%" align=right>7,366
    </TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" width="2%"
    align=left>&nbsp;</TD></TR></TABLE></DIV>
<P style="MARGIN-LEFT: 10%" align=justify>The components of the convertible
debenture receivable were as follows: </P>
<TABLE
style="BORDER-COLOR: black; BORDER-COLLAPSE: collapse; FONT-SIZE: 10pt; "
border=0 cellSpacing=0 cellPadding=0 width="100%">

  <TR vAlign=top>
    <TD width="10%" >&nbsp;</TD>
    <TD align=left>&nbsp; </TD>
    <TD width="1%" align=left>&nbsp;</TD>
    <TD width="12%" align=right><B>December 31,</B> </TD>
    <TD width="2%" align=left>&nbsp;</TD>
    <TD width="1%" align=left>&nbsp;</TD>
    <TD width="12%" align=right><B>December 31,</B> </TD>
    <TD width="2%" align=left>&nbsp;</TD>
    <TD width="1%" align=left>&nbsp;</TD>
    <TD width="12%" align=right><B>January 1,</B> </TD>
    <TD width="2%" align=left>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD width="10%">&nbsp;</TD>
    <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>2010</B> </TD>
    <TD width="2%" align=left>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD width="10%">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>&nbsp; </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="1%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="12%" align=right>$</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="2%"
    align=right>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="1%"
    align=right>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="12%" align=right>$</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="2%"
    align=right>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="1%"
    align=right>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="12%" align=right>$</TD>
  <TD style="BORDER-BOTTOM: #000000 1px solid" width="2%"
    align=right>&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD width="10%">&nbsp;</TD>
    <TD bgColor=#e6efff align=left>Accrued interest </TD>
    <TD bgColor=#e6efff width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="12%" align=right><B>-</B> </TD>
    <TD bgColor=#e6efff width="2%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="12%" align=right>186 </TD>
    <TD bgColor=#e6efff width="2%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="12%" align=right>177 </TD>
    <TD bgColor=#e6efff width="2%" align=left>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD width="10%">&nbsp;</TD>
    <TD align=left>Fair value of conversion feature </TD>
    <TD width="1%" align=left>&nbsp;</TD>
    <TD width="12%" align=right><B>-</B> </TD>
    <TD width="2%" align=left>&nbsp;</TD>
    <TD width="1%" align=left>&nbsp;</TD>
    <TD width="12%" align=right>386 </TD>
    <TD width="2%" align=left>&nbsp;</TD>
    <TD width="1%" align=left>&nbsp;</TD>
    <TD width="12%" align=right>475 </TD>
    <TD width="2%" align=left>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD width="10%">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff
      align=left>Debt portion </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff width="1%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff width="12%"
    align=right><B>-</B> </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff width="2%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff width="1%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff width="12%"
    align=right>6,794 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff width="2%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff width="1%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff width="12%"
    align=right>5,606 </TD>
  <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff width="2%"
    align=left>&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" width="1%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" width="12%"
      align=right><B>-</B> </TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" width="2%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" width="1%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" width="12%" align=right>7,366
    </TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" width="2%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" width="1%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" width="12%" align=right>6,258
    </TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" width="2%"
    align=left>&nbsp;</TD></TR></TABLE>
<P style="MARGIN-LEFT: 10%" align=justify>For the year ended December 31, 2010
and as at January 1, 2010, the fair value of the conversion feature was
determined using the Black-Scholes valuation model under the following
assumptions: </P>
<DIV align=center>
<TABLE
style="BORDER-COLOR: black; BORDER-COLLAPSE: collapse; FONT-SIZE: 10pt; "
border=0 cellSpacing=0 cellPadding=0 width="80%">

  <TR vAlign=top>
    <TD align=left>&nbsp; </TD>
    <TD width="1%" align=left>&nbsp;</TD>
    <TD width="15%" align=right><B>December 31,</B> </TD>
    <TD width="2%" align=left>&nbsp;</TD>
    <TD width="1%" align=left>&nbsp;</TD>
    <TD width="15%" align=right><B>January 1,</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" width="1%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="15%"
      align=right><B>2010</B> </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="2%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="1%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="15%"
      align=right><B>2010</B> </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="2%"
    align=left>&nbsp;</TD>
  </TR>
  <TR>
    <TD>&nbsp; </TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="15%">&nbsp; </TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="15%">&nbsp; </TD>
    <TD width="2%">&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD bgColor=#e6efff align=left>Expected dividend yield (%) </TD>
    <TD bgColor=#e6efff width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="15%" align=right>- </TD>
    <TD bgColor=#e6efff width="2%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="15%" align=right>- </TD>
    <TD bgColor=#e6efff width="2%" align=left>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left>Average risk-free interest rate (%) </TD>
    <TD width="1%" align=left>&nbsp;</TD>
    <TD width="15%" align=right>1.68 </TD>
    <TD width="2%" align=left>&nbsp;</TD>
    <TD width="1%" align=left>&nbsp;</TD>
    <TD width="15%" align=right>1.43 </TD>
    <TD width="2%" align=left>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD bgColor=#e6efff align=left>Expected life (years) </TD>
    <TD bgColor=#e6efff width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="15%" align=right>0.5 </TD>
    <TD bgColor=#e6efff width="2%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="15%" align=right>1.5 </TD>
    <TD bgColor=#e6efff width="2%" align=left>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left>Expected volatility (%) </TD>
    <TD width="1%" align=left>&nbsp;</TD>
    <TD width="15%" align=right>89.7 </TD>
    <TD width="2%" align=left>&nbsp;</TD>
    <TD width="1%" align=left>&nbsp;</TD>
    <TD width="15%" align=right>119.8 </TD>
    <TD width="2%" align=left>&nbsp;</TD></TR></TABLE></DIV><BR>
<TABLE
style="BORDER-COLOR: black; BORDER-COLLAPSE: collapse; FONT-SIZE: 10pt; "
border=0 cellSpacing=0 cellPadding=0 width="100%">
  <TR vAlign=top>
    <TD style="BORDER-TOP: #000000 1px solid" align=right>29 | <FONT
      color=#7e7e7e>P a g e</FONT> </TD>
  </TR>
</TABLE>
<HR style="PAGE-BREAK-AFTER: always" align=center color=black SIZE=5
width="100%" noShade>
<A name=page_30></A><BR>
<TABLE
style="BORDER-COLOR: black; BORDER-COLLAPSE: collapse; FONT-SIZE: 10pt; "
border=0 cellSpacing=0 cellPadding=0 width="100%">
  <TR vAlign=top>
    <TD align=left><FONT size=4><B>Silver Standard Resources Inc.</B> </FONT></TD>
  </TR>
  <TR vAlign=top>
    <TD align=left><FONT size=3>Notes to the Consolidated Financial Statements
      </FONT></TD>
  </TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left><FONT
      size=3>December 31, 2011 and 2010 and January 1, 2010 </FONT></TD>
  </TR>
  <TR vAlign=top>
    <TD align=left>(tabular amounts expressed in thousands of United States dollars
      unless otherwise stated) </TD>
  </TR>
</TABLE>
<BR>
<TABLE
style="BORDER-COLOR: black; BORDER-COLLAPSE: collapse; FONT-SIZE: 10pt; "
border=0 cellSpacing=0 cellPadding=0 width="100%" BCLLIST>

  <TR>
    <TD vAlign=top width="5%"><B>6.</B> </TD>
    <TD>
      <P align=justify><B>INVENTORY</B></P></TD></TR></TABLE><BR>
<TABLE
style="BORDER-COLOR: black; BORDER-COLLAPSE: collapse; FONT-SIZE: 10pt; "
border=0 cellSpacing=0 cellPadding=0 width="100%">

  <TR vAlign=top>
    <TD width="5%"  >&nbsp;</TD>
    <TD align=left>&nbsp; </TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="12%" align=right><B>December 31,</B> </TD>
    <TD  width="2%" align=left>&nbsp;</TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="12%" align=right><B>December 31,</B> </TD>
    <TD  width="2%" align=left>&nbsp;</TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="12%" align=right><B>January 1,</B> </TD>
    <TD  width="2%" 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 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>2010</B> </TD>
    <TD  width="2%" 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 style="BORDER-BOTTOM: #000000 1px solid"  width="1%"
    align=right>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="12%"
    align=right>$&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="2%"
    align=right>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="1%"
    align=right>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="12%" align=right>$</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="2%"
    align=right>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="1%"
    align=right>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="12%" align=right>$</TD>
  <TD style="BORDER-BOTTOM: #000000 1px solid"  width="2%"
    align=right>&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD width="5%" >&nbsp;</TD>
    <TD bgColor=#e6efff align=left><B>Current:</B> </TD>
    <TD bgColor=#e6efff  width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="12%" align=left>&nbsp; </TD>
    <TD bgColor=#e6efff  width="2%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff  width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="12%" align=left>&nbsp; </TD>
    <TD bgColor=#e6efff  width="2%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff  width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="12%" align=left>&nbsp; </TD>
    <TD bgColor=#e6efff  width="2%" align=left>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD width="5%" >&nbsp;</TD>
    <TD align=left>Finished goods </TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="12%" align=right><B>44,524</B> </TD>
    <TD  width="2%" align=left>&nbsp;</TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="12%" align=right>6,919 </TD>
    <TD  width="2%" align=left>&nbsp;</TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="12%" align=right>6,141 </TD>
    <TD  width="2%" align=left>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD width="5%" >&nbsp;</TD>
    <TD bgColor=#e6efff align=left>Stockpiled ore </TD>
    <TD bgColor=#e6efff  width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="12%" align=right><B>36,414</B> </TD>
    <TD bgColor=#e6efff  width="2%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff  width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="12%" align=right>26,327 </TD>
    <TD bgColor=#e6efff  width="2%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff  width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="12%" align=right>9,310 </TD>
    <TD bgColor=#e6efff  width="2%" align=left>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD width="5%" >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>Materials and
      supplies </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="1%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="12%"
      align=right><B>13,743</B> </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="2%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="1%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="12%" align=right>6,930
    </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="2%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="1%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="12%" align=right>5,114
    </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="2%"
    align=left>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD width="5%" >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff
      align=left>&nbsp; </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff
    width="1%" align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff width="12%"
    align=right><B>94,681</B> </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff
    width="2%" align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff
    width="1%" align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff width="12%"
    align=right>40,176 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff
    width="2%" align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff
    width="1%" align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff width="12%"
    align=right>20,565 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff
    width="2%" align=left>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD width="5%" >&nbsp;</TD>
    <TD align=left><B>Non-current:</B> </TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="12%" align=left>&nbsp; </TD>
    <TD  width="2%" align=left>&nbsp;</TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="12%" align=left>&nbsp; </TD>
    <TD  width="2%" align=left>&nbsp;</TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="12%" align=left>&nbsp; </TD>
    <TD  width="2%" align=left>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD width="5%" >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff
      align=left>Stockpiled ore </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff
    width="1%" align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff width="12%"
    align=right><B>6,454</B> </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff
    width="2%" align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff
    width="1%" align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff width="12%"
    align=right>- </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff
    width="2%" align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff
    width="1%" align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff width="12%"
    align=right>- </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff
    width="2%" align=left>&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"  width="1%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" width="12%"
      align=right><B>101,135</B> </TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid"  width="2%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid"  width="1%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" width="12%"
      align=right>40,176 </TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid"  width="2%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid"  width="1%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" width="12%"
      align=right>20,565 </TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid"  width="2%"
    align=left>&nbsp;</TD></TR></TABLE>
<P style="MARGIN-LEFT: 5%" align=justify>The Company holds low grade stockpiled
ore that will be processed at the end of the life of the mine. The NRV is
computed using long term metal prices and in 2011 this resulted in the write
down in value noted below. Inventory held at NRV at December 31, 2011 was
$6,454,000 (December 31, 2010 - nil; January 1, 2010 - $9,115,000). </P>
<P style="MARGIN-LEFT: 5%" align=justify>For the year ended December 31, 2011, a
NRV write-down of inventory of $1,625,000 (2010 - $6,700,000) was included in
the statement of income as a cost of sale. </P>
<TABLE
style="BORDER-COLOR: black; BORDER-COLLAPSE: collapse; FONT-SIZE: 10pt; "
border=0 cellSpacing=0 cellPadding=0 width="100%">
  <TR vAlign=top>
    <TD style="BORDER-TOP: #000000 1px solid" align=right>30 | <FONT
      color=#7e7e7e>P a g e</FONT> </TD>
  </TR>
</TABLE>
<HR style="PAGE-BREAK-AFTER: always" align=center color=black SIZE=5
width="100%" noShade>
<A name=page_31></A><BR>
<TABLE
style="BORDER-COLOR: black; BORDER-COLLAPSE: collapse; FONT-SIZE: 10pt; "
border=0 cellSpacing=0 cellPadding=0 width="100%">
  <TR vAlign=top>
    <TD align=left><FONT size=4><B>Silver Standard Resources Inc.</B> </FONT></TD>
  </TR>
  <TR vAlign=top>
    <TD align=left><FONT size=3>Notes to the Consolidated Financial Statements
      </FONT></TD>
  </TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left><FONT
      size=3>December 31, 2011 and 2010 and January 1, 2010 </FONT></TD>
  </TR>
  <TR vAlign=top>
    <TD align=left>(tabular amounts expressed in thousands of United States dollars
      unless otherwise stated) </TD>
  </TR>
</TABLE>
<BR>
<TABLE
style="BORDER-COLOR: black; BORDER-COLLAPSE: collapse; FONT-SIZE: 10pt; "
border=0 cellSpacing=0 cellPadding=0 width="100%" BCLLIST>

  <TR>
    <TD vAlign=top width="5%"><B>7.</B> </TD>
    <TD>
      <P align=justify><B>PROPERTY, PLANT AND EQUIPMENT</B></P></TD></TR>
  <TR>
    <TD width="5%">&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
  <TR>
    <TD width="5%"></TD>
    <TD>
      <P align=justify>Property, plant and equipment comprise the
    following:</P></TD></TR></TABLE><BR>
<DIV>
  <TABLE
style="BORDER-COLOR: black; BORDER-COLLAPSE: collapse; FONT-SIZE: 10pt; "
border=0 cellSpacing=0 cellPadding=0 width="100%">
    <TR vAlign=top>
      <TD width="5%"  >&nbsp;</TD>
      <TD align=left >&nbsp; </TD>
      <TD style="BORDER-BOTTOM: #000000 1px solid"  width="1%"
    align=left>&nbsp;</TD>
      <TD colspan="13"
      align=center style="BORDER-BOTTOM: #000000 1px solid"> <B>December 31, 2011</B> </TD>
      <TD style="BORDER-BOTTOM: #000000 1px solid"  width="2%"
    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 width="11%" align=right><B>Plant and</B> </TD>
      <TD  width="2%" align=left>&nbsp;</TD>
      <TD  width="1%" align=left>&nbsp;</TD>
      <TD width="11%" align=right><B>Mineral</B> </TD>
      <TD  width="2%" align=left>&nbsp;</TD>
      <TD  width="1%" align=left>&nbsp;</TD>
      <TD width="11%" align=right><B>Assets </B></TD>
      <TD  width="2%" align=left>&nbsp;</TD>
      <TD  width="1%" align=left>&nbsp;</TD>
      <TD  width="11%" align=right><STRONG>Exploration and</STRONG> </TD>
      <TD  width="2%" align=left>&nbsp;</TD>
      <TD  width="1%" align=left>&nbsp;</TD>
      <TD width="11%" align=right><B>Total</B> </TD>
      <TD  width="2%" 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 width="11%" align=right><B>equipment</B> </TD>
      <TD  width="2%" align=left>&nbsp;</TD>
      <TD  width="1%" align=left>&nbsp;</TD>
      <TD width="11%" align=right><B>properties</B> </TD>
      <TD  width="2%" align=left>&nbsp;</TD>
      <TD  width="1%" align=left>&nbsp;</TD>
      <TD width="11%" align=right><B>under</B> </TD>
      <TD  width="2%" align=left>&nbsp;</TD>
      <TD  width="1%" align=left>&nbsp;</TD>
      <TD width="11%" align=right><B>development</B> </TD>
      <TD  width="2%" align=left>&nbsp;</TD>
      <TD  width="1%" align=left>&nbsp;</TD>
      <TD width="11%" align=left>&nbsp; </TD>
      <TD  width="2%" 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 width="11%" align=left>&nbsp; </TD>
      <TD  width="2%" align=left>&nbsp;</TD>
      <TD  width="1%" align=left>&nbsp;</TD>
      <TD width="11%" align=left>&nbsp; </TD>
      <TD  width="2%" align=left>&nbsp;</TD>
      <TD  width="1%" align=left>&nbsp;</TD>
      <TD width="11%" align=right><B>construction</B> </TD>
      <TD  width="2%" align=left>&nbsp;</TD>
      <TD  width="1%" align=left>&nbsp;</TD>
      <TD width="11%" align=right><B>expenditure</B> </TD>
      <TD  width="2%" align=left>&nbsp;</TD>
      <TD  width="1%" align=left>&nbsp;</TD>
      <TD width="11%" align=left>&nbsp; </TD>
      <TD  width="2%" 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 width="11%" align=left>&nbsp; </TD>
      <TD  width="2%" align=left>&nbsp;</TD>
      <TD  width="1%" align=left>&nbsp;</TD>
      <TD width="11%" align=left>&nbsp; </TD>
      <TD  width="2%" align=left>&nbsp;</TD>
      <TD  width="1%" align=left>&nbsp;</TD>
      <TD width="11%" align=left>&nbsp; </TD>
      <TD  width="2%" align=left>&nbsp;</TD>
      <TD  width="1%" align=left>&nbsp;</TD>
      <TD width="11%" align=right><B>(note 7(a))</B></TD>
      <TD  width="2%" align=left><B></B> </TD>
      <TD  width="1%" align=left>&nbsp;</TD>
      <TD width="11%" align=left>&nbsp; </TD>
      <TD  width="2%" 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 style="BORDER-BOTTOM: #000000 1px solid"  width="1%"
    align=right>&nbsp;</TD>
      <TD style="BORDER-BOTTOM: #000000 1px solid" width="11%"
    align=right>&nbsp;</TD>
      <TD style="BORDER-BOTTOM: #000000 1px solid"  width="2%"
    align=right>&nbsp;</TD>
      <TD style="BORDER-BOTTOM: #000000 1px solid"  width="1%"
    align=right>&nbsp;</TD>
      <TD style="BORDER-BOTTOM: #000000 1px solid" width="11%" align=right>&nbsp;</TD>
      <TD style="BORDER-BOTTOM: #000000 1px solid"  width="2%"
    align=right>&nbsp;</TD>
      <TD style="BORDER-BOTTOM: #000000 1px solid"  width="1%"
    align=right>&nbsp;</TD>
      <TD style="BORDER-BOTTOM: #000000 1px solid" width="11%" align=right>&nbsp;</TD>
      <TD style="BORDER-BOTTOM: #000000 1px solid"  width="2%"
    align=right>&nbsp;</TD>
      <TD style="BORDER-BOTTOM: #000000 1px solid"  width="1%"
    align=right>&nbsp;</TD>
      <TD style="BORDER-BOTTOM: #000000 1px solid" width="11%" align=right>&nbsp;</TD>
      <TD style="BORDER-BOTTOM: #000000 1px solid"  width="2%"
    align=right>&nbsp;</TD>
      <TD style="BORDER-BOTTOM: #000000 1px solid"  width="1%"
    align=right>&nbsp;</TD>
      <TD style="BORDER-BOTTOM: #000000 1px solid" width="11%" align=right>&nbsp;</TD>
      <TD style="BORDER-BOTTOM: #000000 1px solid"  width="2%"
    align=right>&nbsp;</TD>
    </TR>
    <TR vAlign=top>
      <TD width="5%" >&nbsp;</TD>
      <TD align=left ><B>Cost</B> </TD>
      <TD  width="1%" align=left>&nbsp;</TD>
      <TD width="11%" align=left>&nbsp; </TD>
      <TD  width="2%" align=left>&nbsp;</TD>
      <TD  width="1%" align=left>&nbsp;</TD>
      <TD width="11%" align=left>&nbsp; </TD>
      <TD  width="2%" align=left>&nbsp;</TD>
      <TD  width="1%" align=left>&nbsp;</TD>
      <TD width="11%" align=left>&nbsp; </TD>
      <TD  width="2%" align=left>&nbsp;</TD>
      <TD  width="1%" align=left>&nbsp;</TD>
      <TD width="11%" align=left>&nbsp; </TD>
      <TD  width="2%" align=left>&nbsp;</TD>
      <TD  width="1%" align=left>&nbsp;</TD>
      <TD width="11%" align=left>&nbsp; </TD>
      <TD  width="2%" align=left>&nbsp;</TD>
    </TR>
    <TR vAlign=top>
      <TD width="5%" >&nbsp;</TD>
      <TD bgColor=#e6efff align=left >Balance, January 1, 2011 </TD>
      <TD bgColor=#e6efff  width="1%" align=left>&nbsp;</TD>
      <TD bgColor=#e6efff width="11%" align=right>263,305 </TD>
      <TD bgColor=#e6efff  width="2%" align=left>&nbsp;</TD>
      <TD bgColor=#e6efff  width="1%" align=left>&nbsp;</TD>
      <TD bgColor=#e6efff width="11%" align=right>76,209 </TD>
      <TD bgColor=#e6efff  width="2%" align=left>&nbsp;</TD>
      <TD bgColor=#e6efff  width="1%" align=left>&nbsp;</TD>
      <TD bgColor=#e6efff width="11%" align=right>8,695 </TD>
      <TD bgColor=#e6efff  width="2%" align=left>&nbsp;</TD>
      <TD bgColor=#e6efff  width="1%" align=left>&nbsp;</TD>
      <TD bgColor=#e6efff width="11%" align=right>190,909 </TD>
      <TD bgColor=#e6efff  width="2%" align=left>&nbsp;</TD>
      <TD bgColor=#e6efff  width="1%" align=left>&nbsp;</TD>
      <TD bgColor=#e6efff width="11%" align=right><B>539,118</B> </TD>
      <TD bgColor=#e6efff  width="2%" align=left>&nbsp;</TD>
    </TR>
    <TR vAlign=top>
      <TD width="5%" >&nbsp;</TD>
      <TD align=left >Additions </TD>
      <TD  width="1%" align=left>&nbsp;</TD>
      <TD width="11%" align=right>3,611 </TD>
      <TD  width="2%" align=left>&nbsp;</TD>
      <TD  width="1%" align=left>&nbsp;</TD>
      <TD width="11%" align=right>33,827 </TD>
      <TD  width="2%" align=left>&nbsp;</TD>
      <TD  width="1%" align=left>&nbsp;</TD>
      <TD width="11%" align=right>27,751 </TD>
      <TD  width="2%" align=left>&nbsp;</TD>
      <TD  width="1%" align=left>&nbsp;</TD>
      <TD width="11%" align=right>33,494 </TD>
      <TD  width="2%" align=left>&nbsp;</TD>
      <TD  width="1%" align=left>&nbsp;</TD>
      <TD width="11%" align=right><B>98,683</B> </TD>
      <TD  width="2%" align=left>&nbsp;</TD>
    </TR>
    <TR vAlign=top>
      <TD width="5%" >&nbsp;</TD>
      <TD bgColor=#e6efff align=left >Disposals </TD>
      <TD bgColor=#e6efff  width="1%" align=left>&nbsp;</TD>
      <TD bgColor=#e6efff width="11%" align=right>(4,569</TD>
      <TD bgColor=#e6efff  width="2%" align=left>) </TD>
      <TD bgColor=#e6efff  width="1%" align=left>&nbsp;</TD>
      <TD bgColor=#e6efff width="11%" align=right>(256</TD>
      <TD bgColor=#e6efff  width="2%" align=left>) </TD>
      <TD bgColor=#e6efff  width="1%" align=left>&nbsp;</TD>
      <TD bgColor=#e6efff width="11%" align=right>- </TD>
      <TD bgColor=#e6efff  width="2%" align=left>&nbsp;</TD>
      <TD bgColor=#e6efff  width="1%" align=left>&nbsp;</TD>
      <TD bgColor=#e6efff width="11%" align=right>(19,623</TD>
      <TD bgColor=#e6efff  width="2%" align=left>) </TD>
      <TD bgColor=#e6efff  width="1%" align=left>&nbsp;</TD>
      <TD bgColor=#e6efff width="11%" align=right><B>(24,448</B></TD>
      <TD bgColor=#e6efff  width="2%" align=left><B>)</B> </TD>
    </TR>
    <TR vAlign=top>
      <TD width="5%" >&nbsp;</TD>
      <TD align=left >Costs written off </TD>
      <TD  width="1%" align=left>&nbsp;</TD>
      <TD width="11%" align=right>- </TD>
      <TD  width="2%" align=left>&nbsp;</TD>
      <TD  width="1%" align=left>&nbsp;</TD>
      <TD width="11%" align=right>- </TD>
      <TD  width="2%" align=left>&nbsp;</TD>
      <TD  width="1%" align=left>&nbsp;</TD>
      <TD width="11%" align=right>- </TD>
      <TD  width="2%" align=left>&nbsp;</TD>
      <TD  width="1%" align=left>&nbsp;</TD>
      <TD width="11%" align=right>(4,624</TD>
      <TD  width="2%" align=left>) </TD>
      <TD  width="1%" align=left>&nbsp;</TD>
      <TD width="11%" align=right><B>(4,624</B></TD>
      <TD  width="2%" align=left><B>)</B> </TD>
    </TR>
    <TR vAlign=top>
      <TD width="5%" >&nbsp;</TD>
      <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff align=left
    >Transfers </TD>
      <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff
    width="1%" align=left>&nbsp;</TD>
      <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff width="11%"
    align=right>18,333 </TD>
      <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff
    width="2%" align=left>&nbsp;</TD>
      <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff
    width="1%" align=left>&nbsp;</TD>
      <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff width="11%"
    align=right>- </TD>
      <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff
    width="2%" align=left>&nbsp;</TD>
      <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff
    width="1%" align=left>&nbsp;</TD>
      <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff width="11%"
    align=right>(18,333</TD>
      <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff
    width="2%" align=left>) </TD>
      <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff
    width="1%" align=left>&nbsp;</TD>
      <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff width="11%"
    align=right>- </TD>
      <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff
    width="2%" align=left>&nbsp;</TD>
      <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff
    width="1%" align=left>&nbsp;</TD>
      <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff width="11%"
    align=right><B>-</B> </TD>
      <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff
    width="2%" align=left>&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"  width="1%"
    align=left>&nbsp;</TD>
      <TD style="BORDER-BOTTOM: #000000 1px solid" width="11%"
      align=right>280,680 </TD>
      <TD style="BORDER-BOTTOM: #000000 1px solid"  width="2%"
    align=left>&nbsp;</TD>
      <TD style="BORDER-BOTTOM: #000000 1px solid"  width="1%"
    align=left>&nbsp;</TD>
      <TD style="BORDER-BOTTOM: #000000 1px solid" width="11%"
      align=right>109,780 </TD>
      <TD style="BORDER-BOTTOM: #000000 1px solid"  width="2%"
    align=left>&nbsp;</TD>
      <TD style="BORDER-BOTTOM: #000000 1px solid"  width="1%"
    align=left>&nbsp;</TD>
      <TD style="BORDER-BOTTOM: #000000 1px solid" width="11%"
      align=right>18,113 </TD>
      <TD style="BORDER-BOTTOM: #000000 1px solid"  width="2%"
    align=left>&nbsp;</TD>
      <TD style="BORDER-BOTTOM: #000000 1px solid"  width="1%"
    align=left>&nbsp;</TD>
      <TD style="BORDER-BOTTOM: #000000 1px solid" width="11%"
      align=right>200,156 </TD>
      <TD style="BORDER-BOTTOM: #000000 1px solid"  width="2%"
    align=left>&nbsp;</TD>
      <TD style="BORDER-BOTTOM: #000000 1px solid"  width="1%"
    align=left>&nbsp;</TD>
      <TD style="BORDER-BOTTOM: #000000 1px solid" width="11%"
      align=right><B>608,729</B> </TD>
      <TD style="BORDER-BOTTOM: #000000 1px solid"  width="2%"
    align=left>&nbsp;</TD>
    </TR>
    <TR>
      <TD width="5%" >&nbsp;</TD>
      <TD bgColor=#e6efff >&nbsp; </TD>
      <TD bgColor=#e6efff  width="1%">&nbsp;</TD>
      <TD bgColor=#e6efff width="11%">&nbsp; </TD>
      <TD bgColor=#e6efff  width="2%">&nbsp;</TD>
      <TD bgColor=#e6efff  width="1%">&nbsp;</TD>
      <TD bgColor=#e6efff width="11%">&nbsp; </TD>
      <TD bgColor=#e6efff  width="2%">&nbsp;</TD>
      <TD bgColor=#e6efff  width="1%">&nbsp;</TD>
      <TD bgColor=#e6efff width="11%">&nbsp; </TD>
      <TD bgColor=#e6efff  width="2%">&nbsp;</TD>
      <TD bgColor=#e6efff  width="1%">&nbsp;</TD>
      <TD bgColor=#e6efff width="11%">&nbsp; </TD>
      <TD bgColor=#e6efff  width="2%">&nbsp;</TD>
      <TD bgColor=#e6efff  width="1%">&nbsp;</TD>
      <TD bgColor=#e6efff width="11%">&nbsp; </TD>
      <TD bgColor=#e6efff  width="2%">&nbsp;</TD>
    </TR>
    <TR>
      <TD width="5%" >&nbsp;</TD>
      <TD >&nbsp; </TD>
      <TD  width="1%">&nbsp;</TD>
      <TD width="11%">&nbsp; </TD>
      <TD  width="2%">&nbsp;</TD>
      <TD  width="1%">&nbsp;</TD>
      <TD width="11%">&nbsp; </TD>
      <TD  width="2%">&nbsp;</TD>
      <TD  width="1%">&nbsp;</TD>
      <TD width="11%">&nbsp; </TD>
      <TD  width="2%">&nbsp;</TD>
      <TD  width="1%">&nbsp;</TD>
      <TD width="11%">&nbsp; </TD>
      <TD  width="2%">&nbsp;</TD>
      <TD  width="1%">&nbsp;</TD>
      <TD width="11%">&nbsp; </TD>
      <TD  width="2%">&nbsp;</TD>
    </TR>
    <TR vAlign=top>
      <TD width="5%" >&nbsp;</TD>
      <TD bgColor=#e6efff align=left ><B>Accumulated depreciation</B> </TD>
      <TD bgColor=#e6efff  width="1%" align=left>&nbsp;</TD>
      <TD bgColor=#e6efff width="11%" align=left>&nbsp; </TD>
      <TD bgColor=#e6efff  width="2%" align=left>&nbsp;</TD>
      <TD bgColor=#e6efff  width="1%" align=left>&nbsp;</TD>
      <TD bgColor=#e6efff width="11%" align=left>&nbsp; </TD>
      <TD bgColor=#e6efff  width="2%" align=left>&nbsp;</TD>
      <TD bgColor=#e6efff  width="1%" align=left>&nbsp;</TD>
      <TD bgColor=#e6efff width="11%" align=left>&nbsp; </TD>
      <TD bgColor=#e6efff  width="2%" align=left>&nbsp;</TD>
      <TD bgColor=#e6efff  width="1%" align=left>&nbsp;</TD>
      <TD bgColor=#e6efff width="11%" align=left>&nbsp; </TD>
      <TD bgColor=#e6efff  width="2%" align=left>&nbsp;</TD>
      <TD bgColor=#e6efff  width="1%" align=left>&nbsp;</TD>
      <TD bgColor=#e6efff width="11%" align=left>&nbsp; </TD>
      <TD bgColor=#e6efff  width="2%" align=left>&nbsp;</TD>
    </TR>
    <TR vAlign=top>
      <TD width="5%" >&nbsp;</TD>
      <TD align=left >Balance, January 1, 2011 </TD>
      <TD  width="1%" align=left>&nbsp;</TD>
      <TD width="11%" align=right>(35,450</TD>
      <TD  width="2%" align=left>) </TD>
      <TD  width="1%" align=left>&nbsp;</TD>
      <TD width="11%" align=right>(4,036</TD>
      <TD  width="2%" align=left>) </TD>
      <TD  width="1%" align=left>&nbsp;</TD>
      <TD width="11%" align=right>- </TD>
      <TD  width="2%" align=left>&nbsp;</TD>
      <TD  width="1%" align=left>&nbsp;</TD>
      <TD width="11%" align=right>- </TD>
      <TD  width="2%" align=left>&nbsp;</TD>
      <TD  width="1%" align=left>&nbsp;</TD>
      <TD width="11%" align=right><B>(39,486</B></TD>
      <TD  width="2%" align=left><B>)</B> </TD>
    </TR>
    <TR vAlign=top>
      <TD width="5%" >&nbsp;</TD>
      <TD bgColor=#e6efff align=left >Charge for the year </TD>
      <TD bgColor=#e6efff  width="1%" align=left>&nbsp;</TD>
      <TD bgColor=#e6efff width="11%" align=right>(25,869</TD>
      <TD bgColor=#e6efff  width="2%" align=left>) </TD>
      <TD bgColor=#e6efff  width="1%" align=left>&nbsp;</TD>
      <TD bgColor=#e6efff width="11%" align=right>(3,513</TD>
      <TD bgColor=#e6efff  width="2%" align=left>) </TD>
      <TD bgColor=#e6efff  width="1%" align=left>&nbsp;</TD>
      <TD bgColor=#e6efff width="11%" align=right>- </TD>
      <TD bgColor=#e6efff  width="2%" align=left>&nbsp;</TD>
      <TD bgColor=#e6efff  width="1%" align=left>&nbsp;</TD>
      <TD bgColor=#e6efff width="11%" align=right>- </TD>
      <TD bgColor=#e6efff  width="2%" align=left>&nbsp;</TD>
      <TD bgColor=#e6efff  width="1%" align=left>&nbsp;</TD>
      <TD bgColor=#e6efff width="11%" align=right><B>(29,382</B></TD>
      <TD bgColor=#e6efff  width="2%" align=left><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"  width="1%"
    align=left>&nbsp;</TD>
      <TD style="BORDER-BOTTOM: #000000 1px solid" width="11%" align=right>4,250
      </TD>
      <TD style="BORDER-BOTTOM: #000000 1px solid"  width="2%"
    align=left>&nbsp;</TD>
      <TD style="BORDER-BOTTOM: #000000 1px solid"  width="1%"
    align=left>&nbsp;</TD>
      <TD style="BORDER-BOTTOM: #000000 1px solid" width="11%" align=right>- </TD>
      <TD style="BORDER-BOTTOM: #000000 1px solid"  width="2%"
    align=left>&nbsp;</TD>
      <TD style="BORDER-BOTTOM: #000000 1px solid"  width="1%"
    align=left>&nbsp;</TD>
      <TD style="BORDER-BOTTOM: #000000 1px solid" width="11%" align=right>- </TD>
      <TD style="BORDER-BOTTOM: #000000 1px solid"  width="2%"
    align=left>&nbsp;</TD>
      <TD style="BORDER-BOTTOM: #000000 1px solid"  width="1%"
    align=left>&nbsp;</TD>
      <TD style="BORDER-BOTTOM: #000000 1px solid" width="11%" align=right>- </TD>
      <TD style="BORDER-BOTTOM: #000000 1px solid"  width="2%"
    align=left>&nbsp;</TD>
      <TD style="BORDER-BOTTOM: #000000 1px solid"  width="1%"
    align=left>&nbsp;</TD>
      <TD style="BORDER-BOTTOM: #000000 1px solid" width="11%"
      align=right><B>4,250</B> </TD>
      <TD style="BORDER-BOTTOM: #000000 1px solid"  width="2%"
    align=left>&nbsp;</TD>
    </TR>
    <TR vAlign=top>
      <TD width="5%" >&nbsp;</TD>
      <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff align=left
    >Balance, end of period </TD>
      <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff
    width="1%" align=left>&nbsp;</TD>
      <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff width="11%"
    align=right>(57,069</TD>
      <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff
    width="2%" align=left>) </TD>
      <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff
    width="1%" align=left>&nbsp;</TD>
      <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff width="11%"
    align=right>(7,549</TD>
      <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff
    width="2%" align=left>) </TD>
      <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff
    width="1%" align=left>&nbsp;</TD>
      <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff width="11%"
    align=right>- </TD>
      <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff
    width="2%" align=left>&nbsp;</TD>
      <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff
    width="1%" align=left>&nbsp;</TD>
      <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff width="11%"
    align=right>- </TD>
      <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff
    width="2%" align=left>&nbsp;</TD>
      <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff
    width="1%" align=left>&nbsp;</TD>
      <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff width="11%"
    align=right><B>(64,618</B></TD>
      <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff
    width="2%" align=left><B>)</B> </TD>
    </TR>
    <TR>
      <TD width="5%" >&nbsp;</TD>
      <TD >&nbsp; </TD>
      <TD  width="1%">&nbsp;</TD>
      <TD width="11%">&nbsp; </TD>
      <TD  width="2%">&nbsp;</TD>
      <TD  width="1%">&nbsp;</TD>
      <TD width="11%">&nbsp; </TD>
      <TD  width="2%">&nbsp;</TD>
      <TD  width="1%">&nbsp;</TD>
      <TD width="11%">&nbsp; </TD>
      <TD  width="2%">&nbsp;</TD>
      <TD  width="1%">&nbsp;</TD>
      <TD width="11%">&nbsp; </TD>
      <TD  width="2%">&nbsp;</TD>
      <TD  width="1%">&nbsp;</TD>
      <TD width="11%">&nbsp; </TD>
      <TD  width="2%">&nbsp;</TD>
    </TR>
    <TR vAlign=top>
      <TD width="5%" >&nbsp;</TD>
      <TD style="BORDER-BOTTOM: #000000 2px solid" bgColor=#e6efff align=left
    ><B>Net book value at December 31, 2011</B> </TD>
      <TD style="BORDER-BOTTOM: #000000 2px solid" bgColor=#e6efff
    width="1%" align=left>&nbsp;</TD>
      <TD style="BORDER-BOTTOM: #000000 2px solid" bgColor=#e6efff width="11%"
    align=right><B>223,611</B> </TD>
      <TD style="BORDER-BOTTOM: #000000 2px solid" bgColor=#e6efff
    width="2%" align=left>&nbsp;</TD>
      <TD style="BORDER-BOTTOM: #000000 2px solid" bgColor=#e6efff
    width="1%" align=left>&nbsp;</TD>
      <TD style="BORDER-BOTTOM: #000000 2px solid" bgColor=#e6efff width="11%"
    align=right><B>102,231</B> </TD>
      <TD style="BORDER-BOTTOM: #000000 2px solid" bgColor=#e6efff
    width="2%" align=left>&nbsp;</TD>
      <TD style="BORDER-BOTTOM: #000000 2px solid" bgColor=#e6efff
    width="1%" align=left>&nbsp;</TD>
      <TD style="BORDER-BOTTOM: #000000 2px solid" bgColor=#e6efff width="11%"
    align=right><B>18,113</B> </TD>
      <TD style="BORDER-BOTTOM: #000000 2px solid" bgColor=#e6efff
    width="2%" align=left>&nbsp;</TD>
      <TD style="BORDER-BOTTOM: #000000 2px solid" bgColor=#e6efff
    width="1%" align=left>&nbsp;</TD>
      <TD style="BORDER-BOTTOM: #000000 2px solid" bgColor=#e6efff width="11%"
    align=right><B>200,156</B> </TD>
      <TD style="BORDER-BOTTOM: #000000 2px solid" bgColor=#e6efff
    width="2%" align=left>&nbsp;</TD>
      <TD style="BORDER-BOTTOM: #000000 2px solid" bgColor=#e6efff
    width="1%" align=left>&nbsp;</TD>
      <TD style="BORDER-BOTTOM: #000000 2px solid" bgColor=#e6efff width="11%"
    align=right><B>544,111</B> </TD>
      <TD style="BORDER-BOTTOM: #000000 2px solid" bgColor=#e6efff
    width="2%" align=left>&nbsp;</TD>
    </TR>
  </TABLE>
</DIV><BR>
<DIV>
  <TABLE
style="BORDER-COLOR: black; BORDER-COLLAPSE: collapse; FONT-SIZE: 10pt; "
border=0 cellSpacing=0 cellPadding=0 width="100%">
    <TR vAlign=top>
      <TD width="5%"  >&nbsp;</TD>
      <TD align=left >&nbsp; </TD>
      <TD style="BORDER-BOTTOM: #000000 1px solid"  width="1%"
    align=left>&nbsp;</TD>
      <TD colspan="13"
      align=center style="BORDER-BOTTOM: #000000 1px solid"> <B>December 31, 2010</B> </TD>
      <TD style="BORDER-BOTTOM: #000000 1px solid"  width="2%"
    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 width="11%" align=right><B>Plant and</B> </TD>
      <TD  width="2%" align=left>&nbsp;</TD>
      <TD  width="1%" align=left>&nbsp;</TD>
      <TD width="11%" align=right><B>Mineral</B> </TD>
      <TD  width="2%" align=left>&nbsp;</TD>
      <TD  width="1%" align=left>&nbsp;</TD>
      <TD width="11%" align=right><B>Assets </B></TD>
      <TD  width="2%" align=left>&nbsp;</TD>
      <TD  width="1%" align=left>&nbsp;</TD>
      <TD  width="11%" align=right><STRONG>Exploration and</STRONG> </TD>
      <TD  width="2%" align=left>&nbsp;</TD>
      <TD  width="1%" align=left>&nbsp;</TD>
      <TD width="11%" align=right><B>Total</B> </TD>
      <TD  width="2%" 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 width="11%" align=right><B>equipment</B> </TD>
      <TD  width="2%" align=left>&nbsp;</TD>
      <TD  width="1%" align=left>&nbsp;</TD>
      <TD width="11%" align=right><B>properties</B> </TD>
      <TD  width="2%" align=left>&nbsp;</TD>
      <TD  width="1%" align=left>&nbsp;</TD>
      <TD width="11%" align=right><B>under</B> </TD>
      <TD  width="2%" align=left>&nbsp;</TD>
      <TD  width="1%" align=left>&nbsp;</TD>
      <TD width="11%" align=right><B>development</B> </TD>
      <TD  width="2%" align=left>&nbsp;</TD>
      <TD  width="1%" align=left>&nbsp;</TD>
      <TD width="11%" align=left>&nbsp; </TD>
      <TD  width="2%" 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 width="11%" align=left>&nbsp; </TD>
      <TD  width="2%" align=left>&nbsp;</TD>
      <TD  width="1%" align=left>&nbsp;</TD>
      <TD width="11%" align=left>&nbsp; </TD>
      <TD  width="2%" align=left>&nbsp;</TD>
      <TD  width="1%" align=left>&nbsp;</TD>
      <TD width="11%" align=right><B>construction</B> </TD>
      <TD  width="2%" align=left>&nbsp;</TD>
      <TD  width="1%" align=left>&nbsp;</TD>
      <TD width="11%" align=right><B>expenditure</B> </TD>
      <TD  width="2%" align=left>&nbsp;</TD>
      <TD  width="1%" align=left>&nbsp;</TD>
      <TD width="11%" align=left>&nbsp; </TD>
      <TD  width="2%" 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 width="11%" align=left>&nbsp; </TD>
      <TD  width="2%" align=left>&nbsp;</TD>
      <TD  width="1%" align=left>&nbsp;</TD>
      <TD width="11%" align=left>&nbsp; </TD>
      <TD  width="2%" align=left>&nbsp;</TD>
      <TD  width="1%" align=left>&nbsp;</TD>
      <TD width="11%" align=left>&nbsp; </TD>
      <TD  width="2%" align=left>&nbsp;</TD>
      <TD  width="1%" align=left>&nbsp;</TD>
      <TD width="11%" align=right><B>(note 7(a))</B></TD>
      <TD  width="2%" align=left><B></B> </TD>
      <TD  width="1%" align=left>&nbsp;</TD>
      <TD width="11%" align=left>&nbsp; </TD>
      <TD  width="2%" 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 style="BORDER-BOTTOM: #000000 1px solid"  width="1%"
    align=right>&nbsp;</TD>
      <TD style="BORDER-BOTTOM: #000000 1px solid" width="11%" align=right>&nbsp;</TD>
      <TD style="BORDER-BOTTOM: #000000 1px solid"  width="2%"
    align=right>&nbsp;</TD>
      <TD style="BORDER-BOTTOM: #000000 1px solid"  width="1%"
    align=right>&nbsp;</TD>
      <TD style="BORDER-BOTTOM: #000000 1px solid" width="11%" align=right>&nbsp;</TD>
      <TD style="BORDER-BOTTOM: #000000 1px solid"  width="2%"
    align=right>&nbsp;</TD>
      <TD style="BORDER-BOTTOM: #000000 1px solid"  width="1%"
    align=right>&nbsp;</TD>
      <TD style="BORDER-BOTTOM: #000000 1px solid" width="11%" align=right>&nbsp;</TD>
      <TD style="BORDER-BOTTOM: #000000 1px solid"  width="2%"
    align=right>&nbsp;</TD>
      <TD style="BORDER-BOTTOM: #000000 1px solid"  width="1%"
    align=right>&nbsp;</TD>
      <TD style="BORDER-BOTTOM: #000000 1px solid" width="11%" align=right>&nbsp;</TD>
      <TD style="BORDER-BOTTOM: #000000 1px solid"  width="2%"
    align=right>&nbsp;</TD>
      <TD style="BORDER-BOTTOM: #000000 1px solid"  width="1%"
    align=right>&nbsp;</TD>
      <TD style="BORDER-BOTTOM: #000000 1px solid" width="11%" align=right>&nbsp;</TD>
      <TD style="BORDER-BOTTOM: #000000 1px solid"  width="2%"
    align=right>&nbsp;</TD>
    </TR>
    <TR vAlign=top>
      <TD width="5%" >&nbsp;</TD>
      <TD align=left ><B>Cost</B> </TD>
      <TD  width="1%" align=left>&nbsp;</TD>
      <TD width="11%" align=left>&nbsp; </TD>
      <TD  width="2%" align=left>&nbsp;</TD>
      <TD  width="1%" align=left>&nbsp;</TD>
      <TD width="11%" align=left>&nbsp; </TD>
      <TD  width="2%" align=left>&nbsp;</TD>
      <TD  width="1%" align=left>&nbsp;</TD>
      <TD width="11%" align=left>&nbsp; </TD>
      <TD  width="2%" align=left>&nbsp;</TD>
      <TD  width="1%" align=left>&nbsp;</TD>
      <TD width="11%" align=left>&nbsp; </TD>
      <TD  width="2%" align=left>&nbsp;</TD>
      <TD  width="1%" align=left>&nbsp;</TD>
      <TD width="11%" align=left>&nbsp; </TD>
      <TD  width="2%" align=left>&nbsp;</TD>
    </TR>
    <TR vAlign=top>
      <TD width="5%" >&nbsp;</TD>
      <TD bgColor=#e6efff align=left >Balance, January 1, 2010 </TD>
      <TD bgColor=#e6efff  width="1%" align=left>&nbsp;</TD>
      <TD bgColor=#e6efff width="11%" align=right>250,085 </TD>
      <TD bgColor=#e6efff  width="2%" align=left>&nbsp;</TD>
      <TD bgColor=#e6efff  width="1%" align=left>&nbsp;</TD>
      <TD bgColor=#e6efff width="11%" align=right>76,841 </TD>
      <TD bgColor=#e6efff  width="2%" align=left>&nbsp;</TD>
      <TD bgColor=#e6efff  width="1%" align=left>&nbsp;</TD>
      <TD bgColor=#e6efff width="11%" align=right>8,015 </TD>
      <TD bgColor=#e6efff  width="2%" align=left>&nbsp;</TD>
      <TD bgColor=#e6efff  width="1%" align=left>&nbsp;</TD>
      <TD bgColor=#e6efff width="11%" align=right>179,445 </TD>
      <TD bgColor=#e6efff  width="2%" align=left>&nbsp;</TD>
      <TD bgColor=#e6efff  width="1%" align=left>&nbsp;</TD>
      <TD bgColor=#e6efff width="11%" align=right>514,386 </TD>
      <TD bgColor=#e6efff  width="2%" align=left>&nbsp;</TD>
    </TR>
    <TR vAlign=top>
      <TD width="5%" >&nbsp;</TD>
      <TD align=left >Additions </TD>
      <TD  width="1%" align=left>&nbsp;</TD>
      <TD width="11%" align=right>7,644 </TD>
      <TD  width="2%" align=left>&nbsp;</TD>
      <TD  width="1%" align=left>&nbsp;</TD>
      <TD width="11%" align=right>5,017 </TD>
      <TD  width="2%" align=left>&nbsp;</TD>
      <TD  width="1%" align=left>&nbsp;</TD>
      <TD width="11%" align=right>15,806 </TD>
      <TD  width="2%" align=left>&nbsp;</TD>
      <TD  width="1%" align=left>&nbsp;</TD>
      <TD width="11%" align=right>55,942 </TD>
      <TD  width="2%" align=left>&nbsp;</TD>
      <TD  width="1%" align=left>&nbsp;</TD>
      <TD width="11%" align=right>84,409 </TD>
      <TD  width="2%" align=left>&nbsp;</TD>
    </TR>
    <TR vAlign=top>
      <TD width="5%" >&nbsp;</TD>
      <TD bgColor=#e6efff align=left >Disposals </TD>
      <TD bgColor=#e6efff  width="1%" align=left>&nbsp;</TD>
      <TD bgColor=#e6efff width="11%" align=right>(8,455</TD>
      <TD bgColor=#e6efff  width="2%" align=left>) </TD>
      <TD bgColor=#e6efff  width="1%" align=left>&nbsp;</TD>
      <TD bgColor=#e6efff width="11%" align=right>(5,649</TD>
      <TD bgColor=#e6efff  width="2%" align=left>) </TD>
      <TD bgColor=#e6efff  width="1%" align=left>&nbsp;</TD>
      <TD bgColor=#e6efff width="11%" align=right>(1,095</TD>
      <TD bgColor=#e6efff  width="2%" align=left>) </TD>
      <TD bgColor=#e6efff  width="1%" align=left>&nbsp;</TD>
      <TD bgColor=#e6efff width="11%" align=right>(44,478</TD>
      <TD bgColor=#e6efff  width="2%" align=left>) </TD>
      <TD bgColor=#e6efff  width="1%" align=left>&nbsp;</TD>
      <TD bgColor=#e6efff width="11%" align=right>(59,677</TD>
      <TD bgColor=#e6efff  width="2%" align=left>) </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"  width="1%"
    align=left>&nbsp;</TD>
      <TD style="BORDER-BOTTOM: #000000 1px solid" width="11%"
      align=right>14,031 </TD>
      <TD style="BORDER-BOTTOM: #000000 1px solid"  width="2%"
    align=left>&nbsp;</TD>
      <TD style="BORDER-BOTTOM: #000000 1px solid"  width="1%"
    align=left>&nbsp;</TD>
      <TD style="BORDER-BOTTOM: #000000 1px solid" width="11%" align=right>- </TD>
      <TD style="BORDER-BOTTOM: #000000 1px solid"  width="2%"
    align=left>&nbsp;</TD>
      <TD style="BORDER-BOTTOM: #000000 1px solid"  width="1%"
    align=left>&nbsp;</TD>
      <TD style="BORDER-BOTTOM: #000000 1px solid" width="11%"
      align=right>(14,031</TD>
      <TD style="BORDER-BOTTOM: #000000 1px solid"  width="2%"
    align=left>) </TD>
      <TD style="BORDER-BOTTOM: #000000 1px solid"  width="1%"
    align=left>&nbsp;</TD>
      <TD style="BORDER-BOTTOM: #000000 1px solid" width="11%" align=right>- </TD>
      <TD style="BORDER-BOTTOM: #000000 1px solid"  width="2%"
    align=left>&nbsp;</TD>
      <TD style="BORDER-BOTTOM: #000000 1px solid"  width="1%"
    align=left>&nbsp;</TD>
      <TD style="BORDER-BOTTOM: #000000 1px solid" width="11%" align=right>- </TD>
      <TD style="BORDER-BOTTOM: #000000 1px solid"  width="2%"
    align=left>&nbsp;</TD>
    </TR>
    <TR vAlign=top>
      <TD width="5%" >&nbsp;</TD>
      <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff align=left
    >Balance, end of period </TD>
      <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff
    width="1%" align=left>&nbsp;</TD>
      <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff width="11%"
    align=right>263,305 </TD>
      <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff
    width="2%" align=left>&nbsp;</TD>
      <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff
    width="1%" align=left>&nbsp;</TD>
      <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff width="11%"
    align=right>76,209 </TD>
      <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff
    width="2%" align=left>&nbsp;</TD>
      <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff
    width="1%" align=left>&nbsp;</TD>
      <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff width="11%"
    align=right>8,695 </TD>
      <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff
    width="2%" align=left>&nbsp;</TD>
      <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff
    width="1%" align=left>&nbsp;</TD>
      <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff width="11%"
    align=right>190,909 </TD>
      <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff
    width="2%" align=left>&nbsp;</TD>
      <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff
    width="1%" align=left>&nbsp;</TD>
      <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff width="11%"
    align=right>539,118 </TD>
      <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff
    width="2%" align=left>&nbsp;</TD>
    </TR>
    <TR>
      <TD width="5%" >&nbsp;</TD>
      <TD >&nbsp; </TD>
      <TD  width="1%">&nbsp;</TD>
      <TD width="11%">&nbsp; </TD>
      <TD  width="2%">&nbsp;</TD>
      <TD  width="1%">&nbsp;</TD>
      <TD width="11%">&nbsp; </TD>
      <TD  width="2%">&nbsp;</TD>
      <TD  width="1%">&nbsp;</TD>
      <TD width="11%">&nbsp; </TD>
      <TD  width="2%">&nbsp;</TD>
      <TD  width="1%">&nbsp;</TD>
      <TD width="11%">&nbsp; </TD>
      <TD  width="2%">&nbsp;</TD>
      <TD  width="1%">&nbsp;</TD>
      <TD width="11%">&nbsp; </TD>
      <TD  width="2%">&nbsp;</TD>
    </TR>
    <TR vAlign=top>
      <TD width="5%" >&nbsp;</TD>
      <TD bgColor=#e6efff align=left ><B>Accumulated depreciation</B> </TD>
      <TD bgColor=#e6efff  width="1%" align=left>&nbsp;</TD>
      <TD bgColor=#e6efff width="11%" align=left>&nbsp; </TD>
      <TD bgColor=#e6efff  width="2%" align=left>&nbsp;</TD>
      <TD bgColor=#e6efff  width="1%" align=left>&nbsp;</TD>
      <TD bgColor=#e6efff width="11%" align=left>&nbsp; </TD>
      <TD bgColor=#e6efff  width="2%" align=left>&nbsp;</TD>
      <TD bgColor=#e6efff  width="1%" align=left>&nbsp;</TD>
      <TD bgColor=#e6efff width="11%" align=left>&nbsp; </TD>
      <TD bgColor=#e6efff  width="2%" align=left>&nbsp;</TD>
      <TD bgColor=#e6efff  width="1%" align=left>&nbsp;</TD>
      <TD bgColor=#e6efff width="11%" align=left>&nbsp; </TD>
      <TD bgColor=#e6efff  width="2%" align=left>&nbsp;</TD>
      <TD bgColor=#e6efff  width="1%" align=left>&nbsp;</TD>
      <TD bgColor=#e6efff width="11%" align=left>&nbsp; </TD>
      <TD bgColor=#e6efff  width="2%" align=left>&nbsp;</TD>
    </TR>
    <TR vAlign=top>
      <TD width="5%" >&nbsp;</TD>
      <TD align=left >Balance, January 1, 2010 </TD>
      <TD  width="1%" align=left>&nbsp;</TD>
      <TD width="11%" align=right>(16,944</TD>
      <TD  width="2%" align=left>) </TD>
      <TD  width="1%" align=left>&nbsp;</TD>
      <TD width="11%" align=right>(618</TD>
      <TD  width="2%" align=left>) </TD>
      <TD  width="1%" align=left>&nbsp;</TD>
      <TD width="11%" align=right>- </TD>
      <TD  width="2%" align=left>&nbsp;</TD>
      <TD  width="1%" align=left>&nbsp;</TD>
      <TD width="11%" align=right>- </TD>
      <TD  width="2%" align=left>&nbsp;</TD>
      <TD  width="1%" align=left>&nbsp;</TD>
      <TD width="11%" align=right>(17,562</TD>
      <TD  width="2%" align=left>) </TD>
    </TR>
    <TR vAlign=top>
      <TD width="5%" >&nbsp;</TD>
      <TD bgColor=#e6efff align=left >Charge for the year </TD>
      <TD bgColor=#e6efff  width="1%" align=left>&nbsp;</TD>
      <TD bgColor=#e6efff width="11%" align=right>(19,370</TD>
      <TD bgColor=#e6efff  width="2%" align=left>) </TD>
      <TD bgColor=#e6efff  width="1%" align=left>&nbsp;</TD>
      <TD bgColor=#e6efff width="11%" align=right>(3,418</TD>
      <TD bgColor=#e6efff  width="2%" align=left>) </TD>
      <TD bgColor=#e6efff  width="1%" align=left>&nbsp;</TD>
      <TD bgColor=#e6efff width="11%" align=right>- </TD>
      <TD bgColor=#e6efff  width="2%" align=left>&nbsp;</TD>
      <TD bgColor=#e6efff  width="1%" align=left>&nbsp;</TD>
      <TD bgColor=#e6efff width="11%" align=right>- </TD>
      <TD bgColor=#e6efff  width="2%" align=left>&nbsp;</TD>
      <TD bgColor=#e6efff  width="1%" align=left>&nbsp;</TD>
      <TD bgColor=#e6efff width="11%" align=right>(22,788</TD>
      <TD bgColor=#e6efff  width="2%" align=left>) </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"  width="1%"
    align=left>&nbsp;</TD>
      <TD style="BORDER-BOTTOM: #000000 1px solid" width="11%" align=right>864
      </TD>
      <TD style="BORDER-BOTTOM: #000000 1px solid"  width="2%"
    align=left>&nbsp;</TD>
      <TD style="BORDER-BOTTOM: #000000 1px solid"  width="1%"
    align=left>&nbsp;</TD>
      <TD style="BORDER-BOTTOM: #000000 1px solid" width="11%" align=right>- </TD>
      <TD style="BORDER-BOTTOM: #000000 1px solid"  width="2%"
    align=left>&nbsp;</TD>
      <TD style="BORDER-BOTTOM: #000000 1px solid"  width="1%"
    align=left>&nbsp;</TD>
      <TD style="BORDER-BOTTOM: #000000 1px solid" width="11%" align=right>- </TD>
      <TD style="BORDER-BOTTOM: #000000 1px solid"  width="2%"
    align=left>&nbsp;</TD>
      <TD style="BORDER-BOTTOM: #000000 1px solid"  width="1%"
    align=left>&nbsp;</TD>
      <TD style="BORDER-BOTTOM: #000000 1px solid" width="11%" align=right>- </TD>
      <TD style="BORDER-BOTTOM: #000000 1px solid"  width="2%"
    align=left>&nbsp;</TD>
      <TD style="BORDER-BOTTOM: #000000 1px solid"  width="1%"
    align=left>&nbsp;</TD>
      <TD style="BORDER-BOTTOM: #000000 1px solid" width="11%" align=right>864
      </TD>
      <TD style="BORDER-BOTTOM: #000000 1px solid"  width="2%"
    align=left>&nbsp;</TD>
    </TR>
    <TR vAlign=top>
      <TD width="5%" >&nbsp;</TD>
      <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff align=left
    >Balance, end of period </TD>
      <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff
    width="1%" align=left>&nbsp;</TD>
      <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff width="11%"
    align=right>(35,450</TD>
      <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff
    width="2%" align=left>) </TD>
      <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff
    width="1%" align=left>&nbsp;</TD>
      <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff width="11%"
    align=right>(4,036</TD>
      <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff
    width="2%" align=left>) </TD>
      <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff
    width="1%" align=left>&nbsp;</TD>
      <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff width="11%"
    align=right>- </TD>
      <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff
    width="2%" align=left>&nbsp;</TD>
      <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff
    width="1%" align=left>&nbsp;</TD>
      <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff width="11%"
    align=right>- </TD>
      <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff
    width="2%" align=left>&nbsp;</TD>
      <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff
    width="1%" align=left>&nbsp;</TD>
      <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff width="11%"
    align=right>(39,486</TD>
      <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff
    width="2%" align=left>) </TD>
    </TR>
    <TR>
      <TD width="5%" >&nbsp;</TD>
      <TD >&nbsp; </TD>
      <TD  width="1%">&nbsp;</TD>
      <TD width="11%">&nbsp; </TD>
      <TD  width="2%">&nbsp;</TD>
      <TD  width="1%">&nbsp;</TD>
      <TD width="11%">&nbsp; </TD>
      <TD  width="2%">&nbsp;</TD>
      <TD  width="1%">&nbsp;</TD>
      <TD width="11%">&nbsp; </TD>
      <TD  width="2%">&nbsp;</TD>
      <TD  width="1%">&nbsp;</TD>
      <TD width="11%">&nbsp; </TD>
      <TD  width="2%">&nbsp;</TD>
      <TD  width="1%">&nbsp;</TD>
      <TD width="11%">&nbsp; </TD>
      <TD  width="2%">&nbsp;</TD>
    </TR>
    <TR vAlign=top>
      <TD width="5%" >&nbsp;</TD>
      <TD style="BORDER-BOTTOM: #000000 2px solid" bgColor=#e6efff align=left
    ><B>Net book value at December 31, 2010</B> </TD>
      <TD style="BORDER-BOTTOM: #000000 2px solid" bgColor=#e6efff
    width="1%" align=left>&nbsp;</TD>
      <TD style="BORDER-BOTTOM: #000000 2px solid" bgColor=#e6efff width="11%"
    align=right>227,855 </TD>
      <TD style="BORDER-BOTTOM: #000000 2px solid" bgColor=#e6efff
    width="2%" align=left>&nbsp;</TD>
      <TD style="BORDER-BOTTOM: #000000 2px solid" bgColor=#e6efff
    width="1%" align=left>&nbsp;</TD>
      <TD style="BORDER-BOTTOM: #000000 2px solid" bgColor=#e6efff width="11%"
    align=right>72,173 </TD>
      <TD style="BORDER-BOTTOM: #000000 2px solid" bgColor=#e6efff
    width="2%" align=left>&nbsp;</TD>
      <TD style="BORDER-BOTTOM: #000000 2px solid" bgColor=#e6efff
    width="1%" align=left>&nbsp;</TD>
      <TD style="BORDER-BOTTOM: #000000 2px solid" bgColor=#e6efff width="11%"
    align=right>8,695 </TD>
      <TD style="BORDER-BOTTOM: #000000 2px solid" bgColor=#e6efff
    width="2%" align=left>&nbsp;</TD>
      <TD style="BORDER-BOTTOM: #000000 2px solid" bgColor=#e6efff
    width="1%" align=left>&nbsp;</TD>
      <TD style="BORDER-BOTTOM: #000000 2px solid" bgColor=#e6efff width="11%"
    align=right>190,909 </TD>
      <TD style="BORDER-BOTTOM: #000000 2px solid" bgColor=#e6efff
    width="2%" align=left>&nbsp;</TD>
      <TD style="BORDER-BOTTOM: #000000 2px solid" bgColor=#e6efff
    width="1%" align=left>&nbsp;</TD>
      <TD style="BORDER-BOTTOM: #000000 2px solid" bgColor=#e6efff width="11%"
    align=right>499,632 </TD>
      <TD style="BORDER-BOTTOM: #000000 2px solid" bgColor=#e6efff
    width="2%" align=left>&nbsp;</TD>
    </TR>
  </TABLE>
</DIV>
<P style="MARGIN-LEFT: 5%" align=justify>No items of property, plant and
equipment have been pledged as security for liabilities. </P>
<P style="MARGIN-LEFT: 5%" align=justify>During the year ended December 31,
2011, the Company identified certain indicators that the mineral property asset
constituting the Pirquitas mine, the CGU, may have been impaired. The indicators
included a reduction in the mineral reserves and resources and an increase in
the close down and restoration provision (note 13) which resulted in an increase
to mineral properties. The Company therefore assessed the recoverable amount of
this CGU and concluded that it exceeded the carrying value, so no impairment was
recorded. The recoverable amount was estimated using a discounted cash flow
approach based upon the most recent life-of-mine plan, and an estimated silver
price based on market consensus, and a discount rate of 9%. </P>
<TABLE
style="BORDER-COLOR: black; BORDER-COLLAPSE: collapse; FONT-SIZE: 10pt; "
border=0 cellSpacing=0 cellPadding=0 width="100%">
  <TR vAlign=top>
    <TD style="BORDER-TOP: #000000 1px solid" align=right>31 | <FONT
      color=#7e7e7e>P a g e</FONT> </TD>
  </TR>
</TABLE>
<HR style="PAGE-BREAK-AFTER: always" align=center color=black SIZE=5
width="100%" noShade>
<A name=page_32></A><BR>
<TABLE
style="BORDER-COLOR: black; BORDER-COLLAPSE: collapse; FONT-SIZE: 10pt; "
border=0 cellSpacing=0 cellPadding=0 width="100%">
  <TR vAlign=top>
    <TD align=left><FONT size=4><B>Silver Standard Resources Inc.</B> </FONT></TD>
  </TR>
  <TR vAlign=top>
    <TD align=left><FONT size=3>Notes to the Consolidated Financial Statements
      </FONT></TD>
  </TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left><FONT
      size=3>December 31, 2011 and 2010 and January 1, 2010 </FONT></TD>
  </TR>
  <TR vAlign=top>
    <TD align=left>(tabular amounts expressed in thousands of United States dollars
      unless otherwise stated) </TD>
  </TR>
</TABLE>
<BR>
<TABLE
style="BORDER-COLOR: black; BORDER-COLLAPSE: collapse; FONT-SIZE: 10pt; "
border=0 cellSpacing=0 cellPadding=0 width="100%" BCLLIST>

  <TR>
    <TD vAlign=top width="5%"><B>7.</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; BORDER-COLLAPSE: collapse; FONT-SIZE: 10pt; "
border=0 cellSpacing=0 cellPadding=0 width="100%" BCLLIST>

  <TR>
    <TD vAlign=top width="5%">(a) </TD>
    <TD>
      <P align=justify>Exploration and development expenditures on mineral
      properties were as follows:</P></TD></TR></TABLE><BR>
<TABLE
style="BORDER-COLOR: black; BORDER-COLLAPSE: collapse; FONT-SIZE: 10pt; "
border=0 cellSpacing=0 cellPadding=0 width="100%">

  <TR vAlign=top>
    <TD width="5%"  >&nbsp;</TD>
    <TD align=left>&nbsp; </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="1%"
    align=left>&nbsp;</TD>
    <TD width="12%" 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="12%" 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="12%"
      align=right nowrap style="BORDER-BOTTOM: #000000 1px solid"><B>December 31, 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="12%"
      align=right nowrap style="BORDER-BOTTOM: #000000 1px solid"><B>December 31, 2010</B> </TD>
  <TD style="BORDER-BOTTOM: #000000 1px solid"  width="2%"
    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 width="12%" align=right nowrap><B>Acquisition </B></TD>
    <TD  width="2%" align=left nowrap>&nbsp;</TD>
    <TD  width="1%" align=left nowrap>&nbsp;</TD>
    <TD  width="12%" align=right nowrap><STRONG>Exploration</STRONG> </TD>
    <TD  width="2%" align=left nowrap>&nbsp;</TD>
    <TD  width="1%" align=left nowrap>&nbsp;</TD>
    <TD width="12%" 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="12%" align=right nowrap><B>Total</B> </TD>
  <TD  width="2%" 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 width="12%" align=right><B>costs</B> </TD>
    <TD  width="2%" align=left>&nbsp;</TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="12%" align=right><B>costs</B> </TD>
    <TD  width="2%" align=left>&nbsp;</TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="12%" align=left>&nbsp; </TD>
    <TD  width="2%" align=left>&nbsp;</TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="12%" align=left>&nbsp; </TD>
    <TD  width="2%" align=left>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD width="5%" >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>&nbsp; </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="1%"
    align=right>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="12%" align=right>$</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="2%"
    align=right>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="1%"
    align=right>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="12%" align=right>$</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="2%"
    align=right>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="1%"
    align=right>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="12%" align=right>$</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="2%"
    align=right>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="1%"
    align=right>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="12%" align=right>$</TD>
  <TD style="BORDER-BOTTOM: #000000 1px solid"  width="2%"
    align=right>&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD width="5%" >&nbsp;</TD>
    <TD align=left><B>Exploration projects</B> </TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="12%" align=left>&nbsp; </TD>
    <TD  width="2%" align=left>&nbsp;</TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="12%" align=left>&nbsp; </TD>
    <TD  width="2%" align=left>&nbsp;</TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="12%" align=left>&nbsp; </TD>
    <TD  width="2%" align=left>&nbsp;</TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="12%" align=left>&nbsp; </TD>
    <TD  width="2%" align=left>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD width="5%" >&nbsp;</TD>
    <TD bgColor=#e6efff align=left>Bowdens, Australia <SUP>(i)</SUP> </TD>
    <TD bgColor=#e6efff  width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="12%" align=right>- </TD>
    <TD bgColor=#e6efff  width="2%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff  width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="12%" align=right>- </TD>
    <TD bgColor=#e6efff  width="2%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff  width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="12%" align=right>- </TD>
    <TD bgColor=#e6efff  width="2%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff  width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="12%" align=right>19,685 </TD>
    <TD bgColor=#e6efff  width="2%" align=left>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD width="5%" >&nbsp;</TD>
    <TD align=left>Challacollo, Chile </TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="12%" align=right>2,990 </TD>
    <TD  width="2%" align=left>&nbsp;</TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="12%" align=right>5,668 </TD>
    <TD  width="2%" align=left>&nbsp;</TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="12%" align=right><B>8,658</B> </TD>
    <TD  width="2%" align=left>&nbsp;</TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="12%" align=right>9,206 </TD>
    <TD  width="2%" align=left>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD width="5%" >&nbsp;</TD>
    <TD bgColor=#e6efff align=left>San Agustin, Mexico </TD>
    <TD bgColor=#e6efff  width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="12%" align=right>101 </TD>
    <TD bgColor=#e6efff  width="2%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff  width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="12%" align=right>2,150 </TD>
    <TD bgColor=#e6efff  width="2%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff  width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="12%" align=right><B>2,251</B> </TD>
    <TD bgColor=#e6efff  width="2%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff  width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="12%" align=right>1,654 </TD>
    <TD bgColor=#e6efff  width="2%" align=left>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD width="5%" >&nbsp;</TD>
    <TD align=left>Veta Colorada, Mexico </TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="12%" align=right>3,851 </TD>
    <TD  width="2%" align=left>&nbsp;</TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="12%" align=right>1,025 </TD>
    <TD  width="2%" align=left>&nbsp;</TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="12%" align=right><B>4,876</B> </TD>
    <TD  width="2%" align=left>&nbsp;</TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="12%" align=right>4,845 </TD>
    <TD  width="2%" align=left>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD width="5%" >&nbsp;</TD>
    <TD bgColor=#e6efff align=left>Nazas, Mexico <SUP>(ii)</SUP> </TD>
    <TD bgColor=#e6efff  width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="12%" align=right>565 </TD>
    <TD bgColor=#e6efff  width="2%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff  width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="12%" align=right>511 </TD>
    <TD bgColor=#e6efff  width="2%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff  width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="12%" align=right><B>1,076</B> </TD>
    <TD bgColor=#e6efff  width="2%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff  width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="12%" align=right>1,423 </TD>
    <TD bgColor=#e6efff  width="2%" align=left>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD width="5%" >&nbsp;</TD>
    <TD align=left>Berenguela, Peru </TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="12%" align=right>10,645 </TD>
    <TD  width="2%" align=left>&nbsp;</TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="12%" align=right>6,167 </TD>
    <TD  width="2%" align=left>&nbsp;</TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="12%" align=right><B>16,812</B> </TD>
    <TD  width="2%" align=left>&nbsp;</TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="12%" align=right>16,480 </TD>
    <TD  width="2%" align=left>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD width="5%" >&nbsp;</TD>
    <TD bgColor=#e6efff align=left>Candelaria, United States </TD>
    <TD bgColor=#e6efff  width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="12%" align=right>2,434 </TD>
    <TD bgColor=#e6efff  width="2%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff  width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="12%" align=right>3,874 </TD>
    <TD bgColor=#e6efff  width="2%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff  width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="12%" align=right><B>6,308</B> </TD>
    <TD bgColor=#e6efff  width="2%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff  width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="12%" align=right>6,022 </TD>
    <TD bgColor=#e6efff  width="2%" align=left>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD width="5%" >&nbsp;</TD>
    <TD align=left>Maverick Springs, United States </TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="12%" align=right>565 </TD>
    <TD  width="2%" align=left>&nbsp;</TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="12%" align=right>2,125 </TD>
    <TD  width="2%" align=left>&nbsp;</TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="12%" align=right><B>2,690</B> </TD>
    <TD  width="2%" align=left>&nbsp;</TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="12%" align=right>2,628 </TD>
    <TD  width="2%" align=left>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD width="5%" >&nbsp;</TD>
    <TD bgColor=#e6efff align=left>Other exploration projects <SUP>(iv)</SUP>
    </TD>
    <TD bgColor=#e6efff  width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="12%" align=right>2,907 </TD>
    <TD bgColor=#e6efff  width="2%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff  width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="12%" align=right>3,405 </TD>
    <TD bgColor=#e6efff  width="2%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff  width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="12%" align=right><B>6,312</B> </TD>
    <TD bgColor=#e6efff  width="2%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff  width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="12%" align=right>5,743 </TD>
    <TD bgColor=#e6efff  width="2%" align=left>&nbsp;</TD></TR>
  <TR>
    <TD width="5%" >&nbsp;</TD>
    <TD>&nbsp; </TD>
    <TD  width="1%">&nbsp;</TD>
    <TD width="12%">&nbsp; </TD>
    <TD  width="2%">&nbsp;</TD>
    <TD  width="1%">&nbsp;</TD>
    <TD width="12%">&nbsp; </TD>
    <TD  width="2%">&nbsp;</TD>
    <TD  width="1%">&nbsp;</TD>
    <TD width="12%">&nbsp; </TD>
    <TD  width="2%">&nbsp;</TD>
    <TD  width="1%">&nbsp;</TD>
    <TD width="12%">&nbsp; </TD>
    <TD  width="2%">&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD width="5%" >&nbsp;</TD>
    <TD bgColor=#e6efff align=left><B>Development projects</B> </TD>
    <TD bgColor=#e6efff  width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="12%" align=left>&nbsp; </TD>
    <TD bgColor=#e6efff  width="2%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff  width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="12%" align=left>&nbsp; </TD>
    <TD bgColor=#e6efff  width="2%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff  width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="12%" align=left>&nbsp; </TD>
    <TD bgColor=#e6efff  width="2%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff  width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="12%" align=left>&nbsp; </TD>
    <TD bgColor=#e6efff  width="2%" align=left>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD width="5%" >&nbsp;</TD>
    <TD align=left>Diablillos, Argentina </TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="12%" align=right>4,530 </TD>
    <TD  width="2%" align=left>&nbsp;</TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="12%" align=right>16,836 </TD>
    <TD  width="2%" align=left>&nbsp;</TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="12%" align=right><B>21,366</B> </TD>
    <TD  width="2%" align=left>&nbsp;</TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="12%" align=right>18,765 </TD>
    <TD  width="2%" align=left>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD width="5%" >&nbsp;</TD>
    <TD bgColor=#e6efff align=left>Pitarrilla, Mexico </TD>
    <TD bgColor=#e6efff  width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="12%" align=right>17,806 </TD>
    <TD bgColor=#e6efff  width="2%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff  width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="12%" align=right>78,194 </TD>
    <TD bgColor=#e6efff  width="2%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff  width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="12%" align=right><B>96,000</B> </TD>
    <TD bgColor=#e6efff  width="2%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff  width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="12%" align=right>77,796 </TD>
    <TD bgColor=#e6efff  width="2%" align=left>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD width="5%" >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>San Luis, Peru
      <SUP>(iii)</SUP> </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="1%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="12%" align=right>668
    </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="2%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="1%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="12%"
      align=right>33,139 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="2%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="1%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="12%"
      align=right><B>33,807</B> </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="2%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="1%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="12%"
      align=right>26,662 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="2%"
    align=left>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD width="5%" >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" bgColor=#e6efff
      align=left>&nbsp; </TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" bgColor=#e6efff
    width="1%" align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" bgColor=#e6efff width="12%"
    align=right>47,062 </TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" bgColor=#e6efff
    width="2%" align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" bgColor=#e6efff
    width="1%" align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" bgColor=#e6efff width="12%"
    align=right>153,094 </TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" bgColor=#e6efff
    width="2%" align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" bgColor=#e6efff
    width="1%" align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" bgColor=#e6efff width="12%"
    align=right><B>200,156</B> </TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" bgColor=#e6efff
    width="2%" align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" bgColor=#e6efff
    width="1%" align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" bgColor=#e6efff width="12%"
    align=right>190,909 </TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" bgColor=#e6efff
    width="2%" align=left>&nbsp;</TD></TR></TABLE><BR>
<TABLE
style="BORDER-COLOR: black; BORDER-COLLAPSE: collapse; FONT-SIZE: 10pt; "
border=0 cellSpacing=0 cellPadding=0 width="100%" BCLLIST>

  <TR>
    <TD vAlign=top width="5%">(i) </TD>
    <TD>
      <P align=justify>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 $70,655,000. The consideration
      comprised cash payments of $45,090,000 (of which $40,045,000 was received
      during the year and $5,045,000 is due to be paid on 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 $16,058,000.</P></TD></TR>
  <TR>
    <TD width="5%">&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
  <TR>
    <TD vAlign=top width="5%">(ii) </TD>
    <TD>
      <P align=justify>During the year ended December 31, 2011, the Company
      elected not to continue its option on the Navidad claims group, which
      constitute one area of the Nazas property. As a result the Company wrote
      off accumulated costs of $4,514,000, reflected in other expenses (note
      19).</P></TD></TR>
  <TR>
    <TD width="5%">&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
  <TR>
    <TD vAlign=top width="5%">(iii) </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 6,459,000 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
      $28,694,000, 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 recognized a decrease in
      non-controlling interest of $496,000 and a decrease in other reserves of
      $28,198,000 (note 16).</P></TD></TR></TABLE><BR>
<TABLE
style="BORDER-COLOR: black; BORDER-COLLAPSE: collapse; FONT-SIZE: 10pt; "
border=0 cellSpacing=0 cellPadding=0 width="100%">
  <TR vAlign=top>
    <TD style="BORDER-TOP: #000000 1px solid" align=right>32 | <FONT
      color=#7e7e7e>P a g e</FONT> </TD>
  </TR>
</TABLE>
<HR style="PAGE-BREAK-AFTER: always" align=center color=black SIZE=5
width="100%" noShade>
<A name=page_33></A><BR>
<TABLE
style="BORDER-COLOR: black; BORDER-COLLAPSE: collapse; FONT-SIZE: 10pt; "
border=0 cellSpacing=0 cellPadding=0 width="100%">
  <TR vAlign=top>
    <TD align=left><FONT size=4><B>Silver Standard Resources Inc.</B> </FONT></TD>
  </TR>
  <TR vAlign=top>
    <TD align=left><FONT size=3>Notes to the Consolidated Financial Statements
      </FONT></TD>
  </TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left><FONT
      size=3>December 31, 2011 and 2010 and January 1, 2010 </FONT></TD>
  </TR>
  <TR vAlign=top>
    <TD align=left>(tabular amounts expressed in thousands of United States dollars
      unless otherwise stated) </TD>
  </TR>
</TABLE>
<BR>
<TABLE
style="BORDER-COLOR: black; BORDER-COLLAPSE: collapse; FONT-SIZE: 10pt; "
border=0 cellSpacing=0 cellPadding=0 width="100%" BCLLIST>

  <TR>
    <TD vAlign=top width="5%"><B>7.</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; BORDER-COLLAPSE: collapse; FONT-SIZE: 10pt; "
border=0 cellSpacing=0 cellPadding=0 width="100%" BCLLIST>

  <TR>
    <TD vAlign=top width="5%">(iv) </TD>
    <TD>
      <P 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></TD></TR></TABLE><BR>
<TABLE
style="BORDER-COLOR: black; BORDER-COLLAPSE: collapse; FONT-SIZE: 10pt; "
border=0 cellSpacing=0 cellPadding=0 width="100%" BCLLIST>

  <TR>
    <TD vAlign=top width="5%"><B>8.</B> </TD>
    <TD>
      <P align=justify><B>INVESTMENT IN ASSOCIATE</B></P></TD></TR>
  <TR>
    <TD width="5%">&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
  <TR>
    <TD width="5%"></TD>
    <TD>
      <P align=justify>Investment in associate comprises the
  following:</P></TD></TR></TABLE><BR>
<DIV align=center>
<TABLE
style="BORDER-COLOR: black; BORDER-COLLAPSE: collapse; FONT-SIZE: 10pt; "
border=0 cellSpacing=0 cellPadding=0 width="90%">

  <TR vAlign=top>
    <TD align=left >&nbsp; </TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="17%" align=right nowrap><B>December 31, 2011</B> </TD>
    <TD  width="2%" align=left nowrap>&nbsp;</TD>
    <TD  width="1%" align=left nowrap>&nbsp;</TD>
    <TD width="17%" align=right nowrap><B>December 31, 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"  width="1%"
    align=right>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="17%" align=right>$</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="2%"
    align=right>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="1%"
    align=right>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="17%" align=right>$</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="2%"
    align=right>&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD bgColor=#e6efff align=left >Common shares of Pretium
      Resources Inc. </TD>
    <TD bgColor=#e6efff  width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="17%" align=right><B>136,342</B> </TD>
    <TD bgColor=#e6efff  width="2%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff  width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="17%" align=right>187,202 </TD>
    <TD bgColor=#e6efff  width="2%" align=left>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left
      >Convertible note from Pretium Resources Inc. </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="1%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="17%"
      align=right><B>-</B> </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="2%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="1%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="17%"
      align=right>39,069 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="2%"
    align=left>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 2px solid" bgColor=#e6efff align=left
    >&nbsp; </TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" bgColor=#e6efff
    width="1%" align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" bgColor=#e6efff width="17%"
    align=right><B>136,342</B> </TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" bgColor=#e6efff
    width="2%" align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" bgColor=#e6efff
    width="1%" align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" bgColor=#e6efff width="17%"
    align=right>226,271 </TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" bgColor=#e6efff
    width="2%" align=left>&nbsp;</TD></TR></TABLE></DIV>
<P style="MARGIN-LEFT: 5%" align=justify>Investment in associate reflects
activity for the years as follows: </P>
<DIV align=center>
<TABLE
style="BORDER-COLOR: black; BORDER-COLLAPSE: collapse; FONT-SIZE: 10pt; "
border=0 cellSpacing=0 cellPadding=0 width="90%">

  <TR vAlign=top>
    <TD align=left >&nbsp; </TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="17%" align=right nowrap><B>December 31, 2011</B> </TD>
    <TD  width="2%" align=left nowrap>&nbsp;</TD>
    <TD  width="1%" align=left nowrap>&nbsp;</TD>
    <TD width="17%" align=right nowrap><B>December 31, 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"  width="1%"
    align=right>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="17%" align=right>$</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="2%"
    align=right>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="1%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="17%" align=right>$</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="2%"
    align=left>&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD bgColor=#e6efff align=left >Carrying amount, beginning of
      year </TD>
    <TD bgColor=#e6efff  width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="17%" align=right><B>226,271</B> </TD>
    <TD bgColor=#e6efff  width="2%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff  width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="17%" align=right>- </TD>
    <TD bgColor=#e6efff  width="2%" align=left>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left >Acquisition </TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="17%" align=right><B>-</B> </TD>
    <TD  width="2%" align=left>&nbsp;</TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="17%" align=right>226,348 </TD>
    <TD  width="2%" align=left>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD bgColor=#e6efff align=left >Partial disposition </TD>
    <TD bgColor=#e6efff  width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="17%" align=right><B>(82,138</B></TD>
    <TD bgColor=#e6efff  width="2%" align=left><B>)</B> </TD>
    <TD bgColor=#e6efff  width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="17%" align=right>- </TD>
    <TD bgColor=#e6efff  width="2%" align=left>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left >Dilution </TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="17%" align=right><B>1,803</B> </TD>
    <TD  width="2%" align=left>&nbsp;</TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="17%" align=right>- </TD>
    <TD  width="2%" align=left>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD bgColor=#e6efff align=left >Share of net loss </TD>
    <TD bgColor=#e6efff  width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="17%" align=right><B>(6,078</B></TD>
    <TD bgColor=#e6efff  width="2%" align=left><B>)</B> </TD>
    <TD bgColor=#e6efff  width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="17%" align=right>(77</TD>
    <TD bgColor=#e6efff  width="2%" align=left>) </TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left
      >Share of other comprehensive loss </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="1%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="17%"
      align=right><B>(3,516</B></TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="2%"
    align=left><B>)</B> </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="1%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="17%" align=right>- </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="2%"
    align=left>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 2px solid" bgColor=#e6efff align=left
    >Carrying amount, end of year </TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" bgColor=#e6efff
    width="1%" align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" bgColor=#e6efff width="17%"
    align=right><B>136,342</B> </TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" bgColor=#e6efff
    width="2%" align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" bgColor=#e6efff
    width="1%" align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" bgColor=#e6efff width="17%"
    align=right>226,271 </TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" bgColor=#e6efff
    width="2%" align=left>&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, which comprised 32,537,833
Pretium common shares at their fair value of $191,869,000, cash of $211,322,000
(before underwriters&#146; fees of $12,427,000), and a non-interest-bearing
convertible promissory note in the principal amount of $39,069,000. The Company
recognized a gain on sale of mineral properties from this transaction of
$388,761,000 net of selling costs of $5,922,000 (after-tax gain $360,612,000).
The Company&#146;s ownership interest in Pretium as a result of this transaction was
41.27% . </P>
<TABLE
style="BORDER-COLOR: black; BORDER-COLLAPSE: collapse; FONT-SIZE: 10pt; "
border=0 cellSpacing=0 cellPadding=0 width="100%">
  <TR vAlign=top>
    <TD style="BORDER-TOP: #000000 1px solid" align=right>33 | <FONT
      color=#7e7e7e>P a g e</FONT> </TD>
  </TR>
</TABLE>
<HR style="PAGE-BREAK-AFTER: always" align=center color=black SIZE=5
width="100%" noShade>
<A name=page_34></A><BR>
<TABLE
style="BORDER-COLOR: black; BORDER-COLLAPSE: collapse; FONT-SIZE: 10pt; "
border=0 cellSpacing=0 cellPadding=0 width="100%">
  <TR vAlign=top>
    <TD align=left><FONT size=4><B>Silver Standard Resources Inc.</B> </FONT></TD>
  </TR>
  <TR vAlign=top>
    <TD align=left><FONT size=3>Notes to the Consolidated Financial Statements
      </FONT></TD>
  </TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left><FONT
      size=3>December 31, 2011 and 2010 and January 1, 2010 </FONT></TD>
  </TR>
  <TR vAlign=top>
    <TD align=left>(tabular amounts expressed in thousands of United States dollars
      unless otherwise stated) </TD>
  </TR>
</TABLE>
<BR>
<TABLE
style="BORDER-COLOR: black; BORDER-COLLAPSE: collapse; FONT-SIZE: 10pt; "
border=0 cellSpacing=0 cellPadding=0 width="100%" BCLLIST>

  <TR>
    <TD vAlign=top width="5%"><B>8.</B> </TD>
    <TD>
      <P align=justify><B>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>At December 31, 2010, the convertible note was included
      in the 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 gross proceeds of
      $18,083,000. On January 31, 2011, the balance of the note in the amount of
      $20,986,000 was converted into 3,625,500 common shares of Pretium at their
      fair value of $22,946,000, resulting in a $1,092,000 gain on settlement.
      The Company recognized transaction costs of $1,631,000 in the statement of
      income for the year ended December 31, 2011. The transaction costs and the
      gain on settlement of the note are recognized within the gain on sale of
      mineral property in the statement of income, as they are interrelated with
      the original sale transaction for the Snowfield and Brucejack
      properties.</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 11,500,000 of its
      Pretium common shares by completing a secondary offering of 11,500,000
      units at C$10.00 per unit. Each unit consisted of one Pretium common share
      and half of a warrant to acquire an additional Pretium common share for
      C$12.50 within twelve months. The Company received cash proceeds from this
      offering of $120,117,000 before transaction costs of $7,734,000. As a
      result of this transaction, the Company recognized a gain on partial
      disposal of its associate of $38,776,000 (an after-tax gain of
      $34,687,000). The warrants issued in the unit offering were recognized as
      a liability and are recorded at fair value (note 12). Following the
      closing of the offering, the Company&#146;s ownership interest in Pretium was
      28.86%.</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 private placement
      of 1,390,000 flow-through common shares, in which the Company elected not
      to participate. This share issuance by Pretium resulted in a dilution of
      the Company&#146;s interest (to 28.39%) and a dilution gain of $1,803,000,
      which was recognized in other income (note 19).</P></TD></TR>
  <TR>
    <TD width="5%">&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
  <TR>
    <TD width="5%"></TD>
    <TD>
      <P align=justify>The fair value of Pretium's common shares at December 31,
      2011, excluding potential selling costs, according to published price
      quotations was $303,359,000 (December 31, 2010 - $209,040,000).</P></TD></TR>
  <TR>
    <TD width="5%">&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
  <TR>
    <TD width="5%"></TD>
    <TD>
      <P align=justify>Summarized financial information for Pretium is as
      follows:</P></TD></TR></TABLE><BR>
<DIV align=center>
<TABLE
style="BORDER-COLOR: black; BORDER-COLLAPSE: collapse; FONT-SIZE: 10pt; "
border=0 cellSpacing=0 cellPadding=0 width="60%">

  <TR vAlign=top>
    <TD align=left >&nbsp; </TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="22%" align=right><B>December 31, 2011</B> </TD>
    <TD  width="2%" align=left>&nbsp;</TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="22%" align=right><B>December 31, 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"  width="1%"
    align=right>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="22%" align=right>$</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="2%"
    align=right>&nbsp;</TD>
      <TD style="BORDER-BOTTOM: #000000 1px solid"  width="1%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="22%" align=right>$</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="2%"
    align=left>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD bgColor=#e6efff align=left >Assets </TD>
    <TD bgColor=#e6efff  width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="22%" align=right><B>506,167</B> </TD>
    <TD bgColor=#e6efff  width="2%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff  width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="22%" align=right>499,158 </TD>
    <TD bgColor=#e6efff  width="2%" align=left>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left >Liabilities </TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="22%" align=right><B>(7,350</B></TD>
    <TD  width="2%" align=left><B>)</B> </TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="22%" align=right>(40,876</TD>
    <TD  width="2%" align=left>) </TD></TR>
  <TR vAlign=top>
    <TD bgColor=#e6efff align=left >Revenues </TD>
    <TD bgColor=#e6efff  width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="22%" align=right><B>-</B> </TD>
    <TD bgColor=#e6efff  width="2%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff  width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="22%" align=right>- </TD>
    <TD bgColor=#e6efff  width="2%" align=left>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=left >Net
      loss </TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid"  width="1%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" width="22%"
      align=right><B>(17,573</B></TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid"  width="2%"
    align=left><B>)</B> </TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid"  width="1%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" width="22%"
      align=right>(14,127</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid"  width="2%"
    align=left>) </TD></TR></TABLE></DIV>
<P style="MARGIN-LEFT: 5%" align=justify>Subsequent to the reporting date, on
February 17, 2012, Pretium completed a private placement of 1,250,000
flow-through common shares, in which the Company elected not to participate.
This share issuance by Pretium resulted in a dilution of the Company&#146;s interest
to 27.99% and a dilution gain of $4,260,000. </P>
<TABLE
style="BORDER-COLOR: black; BORDER-COLLAPSE: collapse; FONT-SIZE: 10pt; "
border=0 cellSpacing=0 cellPadding=0 width="100%">
  <TR vAlign=top>
    <TD style="BORDER-TOP: #000000 1px solid" align=right>34 | <FONT
      color=#7e7e7e>P a g e</FONT> </TD>
  </TR>
</TABLE>
<HR style="PAGE-BREAK-AFTER: always" align=center color=black SIZE=5
width="100%" noShade>
<A name=page_35></A><BR>
<TABLE
style="BORDER-COLOR: black; BORDER-COLLAPSE: collapse; FONT-SIZE: 10pt; "
border=0 cellSpacing=0 cellPadding=0 width="100%">
  <TR vAlign=top>
    <TD align=left><FONT size=4><B>Silver Standard Resources Inc.</B> </FONT></TD>
  </TR>
  <TR vAlign=top>
    <TD align=left><FONT size=3>Notes to the Consolidated Financial Statements
      </FONT></TD>
  </TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left><FONT
      size=3>December 31, 2011 and 2010 and January 1, 2010 </FONT></TD>
  </TR>
  <TR vAlign=top>
    <TD align=left>(tabular amounts expressed in thousands of United States dollars
      unless otherwise stated) </TD>
  </TR>
</TABLE>
<BR>
<TABLE
style="BORDER-COLOR: black; BORDER-COLLAPSE: collapse; FONT-SIZE: 10pt; "
border=0 cellSpacing=0 cellPadding=0 width="100%" BCLLIST>

  <TR>
    <TD vAlign=top width="5%"><B>9.</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>Significant components of income tax expense recognized
      in the statements of income are as follows:</P></TD></TR></TABLE><BR>
<TABLE
style="BORDER-COLOR: black; BORDER-COLLAPSE: collapse; FONT-SIZE: 10pt; "
border=0 cellSpacing=0 cellPadding=0 width="100%">

  <TR vAlign=top>
    <TD width="5%"  >&nbsp;</TD>
    <TD align=left>&nbsp; </TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="12%" align=right><B>December 31,</B> </TD>
    <TD  width="2%" align=left>&nbsp;</TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="12%" align=right><B>December 31,</B> </TD>
    <TD  width="2%" 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 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 width="5%" >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>&nbsp; </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="1%"
    align=right>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="12%" align=right>$</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="2%"
    align=right>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="1%"
    align=right>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="12%" align=right>$</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="2%"
    align=right>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD width="5%" >&nbsp;</TD>
    <TD bgColor=#e6efff align=left><B>Current tax:</B> </TD>
    <TD bgColor=#e6efff  width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="12%" align=left>&nbsp; </TD>
    <TD bgColor=#e6efff  width="2%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff  width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="12%" align=left>&nbsp; </TD>
    <TD bgColor=#e6efff  width="2%" align=left>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD width="5%" >&nbsp;</TD>
    <TD align=left>&nbsp; &nbsp;Current tax on taxable income of the current
      year </TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="12%" align=right><B>36,347</B> </TD>
    <TD  width="2%" align=left>&nbsp;</TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="12%" align=right>2,599 </TD>
    <TD  width="2%" align=left>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD width="5%" >&nbsp;</TD>
    <TD bgColor=#e6efff align=left><B>Deferred tax:</B> </TD>
    <TD bgColor=#e6efff  width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="12%" align=left>&nbsp; </TD>
    <TD bgColor=#e6efff  width="2%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff  width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="12%" align=left>&nbsp; </TD>
    <TD bgColor=#e6efff  width="2%" align=left>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD width="5%" >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>&nbsp;
      &nbsp;Origination and reversal of temporary differences </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="1%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="12%"
      align=right><B>(4,950</B></TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="2%"
    align=left><B>)</B> </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="1%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="12%"
      align=right>29,594 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="2%"
    align=left>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD width="5%" >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff
      align=left>Total tax expense </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff
    width="1%" align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff width="12%"
    align=right><B>31,397</B> </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff
    width="2%" align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff
    width="1%" align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff width="12%"
    align=right>32,193 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff
    width="2%" align=left>&nbsp;</TD></TR></TABLE>
<P style="MARGIN-LEFT: 5%" align=justify>The tax expense on the Company&#146;s income
before tax is reconciled to the amount that would arise using the Canadian tax
rate applicable to income of the consolidated entities as follows: </P>
<TABLE
style="BORDER-COLOR: black; BORDER-COLLAPSE: collapse; FONT-SIZE: 10pt; "
border=0 cellSpacing=0 cellPadding=0 width="100%">

  <TR vAlign=top>
    <TD width="5%"  >&nbsp;</TD>
    <TD align=left>&nbsp; </TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="12%" align=right><B>December 31,</B> </TD>
    <TD  width="2%" align=left>&nbsp;</TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="12%" align=right><B>December 31,</B> </TD>
    <TD  width="2%" 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 style="BORDER-BOTTOM: #000000 1px solid"  width="1%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="12%"
      align=right><B>2011</B> </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="2%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="1%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="12%"
      align=right><B>2010</B> </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="2%"
    align=left>&nbsp;</TD></TR>
  <TR>
    <TD width="5%" >&nbsp;</TD>
    <TD>&nbsp; </TD>
    <TD  width="1%">&nbsp;</TD>
    <TD width="12%">&nbsp; </TD>
    <TD  width="2%">&nbsp;</TD>
    <TD  width="1%">&nbsp;</TD>
    <TD width="12%">&nbsp; </TD>
    <TD  width="2%">&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD width="5%" >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" bgColor=#e6efff
      align=left>Statutory tax rate </TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" bgColor=#e6efff
    width="1%" align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" bgColor=#e6efff width="12%"
    align=right><B>26.50%</B> </TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" bgColor=#e6efff
    width="2%" align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" bgColor=#e6efff
    width="1%" align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" bgColor=#e6efff width="12%"
    align=right>28.50% </TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" bgColor=#e6efff
    width="2%" align=left>&nbsp;</TD></TR>
  <TR>
    <TD width="5%" >&nbsp;</TD>
    <TD>&nbsp; </TD>
    <TD  width="1%">&nbsp;</TD>
    <TD width="12%">&nbsp; </TD>
    <TD  width="2%">&nbsp;</TD>
    <TD  width="1%">&nbsp;</TD>
    <TD width="12%">&nbsp; </TD>
    <TD  width="2%">&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD width="5%" >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#ffffff
      align=left>&nbsp; </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#ffffff
    width="1%" align=right>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#ffffff width="12%"
    align=right>$</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#ffffff
    width="2%" align=right>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#ffffff
    width="1%" align=right>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#ffffff width="12%"
    align=right>$</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#ffffff
    width="2%" align=right>&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 style="BORDER-BOTTOM: #000000 2px solid" bgColor=#e6efff
      align=left>Income for the year before taxes </TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" bgColor=#e6efff
    width="1%" align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" bgColor=#e6efff width="12%"
    align=right><B>111,525</B> </TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" bgColor=#e6efff
    width="2%" align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" bgColor=#e6efff
    width="1%" align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" bgColor=#e6efff width="12%"
    align=right>370,648 </TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" bgColor=#e6efff
    width="2%" align=left>&nbsp;</TD></TR>
  <TR>
    <TD width="5%" >&nbsp;</TD>
    <TD>&nbsp; </TD>
    <TD  width="1%">&nbsp;</TD>
    <TD width="12%">&nbsp; </TD>
    <TD  width="2%">&nbsp;</TD>
    <TD  width="1%">&nbsp;</TD>
    <TD width="12%">&nbsp; </TD>
    <TD  width="2%">&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD width="5%" >&nbsp;</TD>
    <TD bgColor=#e6efff align=left>Provision for income taxes based on
      statutory rates </TD>
    <TD bgColor=#e6efff  width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="12%" align=right><B>29,554</B> </TD>
    <TD bgColor=#e6efff  width="2%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff  width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="12%" align=right>105,634 </TD>
    <TD bgColor=#e6efff  width="2%" align=left>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD width="5%" >&nbsp;</TD>
    <TD align=left>Differences in foreign and future tax rates </TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="12%" align=right><B>5,844</B> </TD>
    <TD  width="2%" align=left>&nbsp;</TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="12%" align=right>(2,893</TD>
    <TD  width="2%" align=left>) </TD></TR>
  <TR vAlign=top>
    <TD width="5%" >&nbsp;</TD>
    <TD bgColor=#e6efff align=left>Foreign exchange </TD>
    <TD bgColor=#e6efff  width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="12%" align=right><B>4,349</B> </TD>
    <TD bgColor=#e6efff  width="2%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff  width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="12%" align=right>489 </TD>
    <TD bgColor=#e6efff  width="2%" align=left>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD width="5%" >&nbsp;</TD>
    <TD align=left>Partial sale of associate and sale of mineral properties
      taxed at </TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="12%" align=left>&nbsp; </TD>
    <TD  width="2%" align=left>&nbsp;</TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="12%" align=left>&nbsp; </TD>
    <TD  width="2%" align=left>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD width="5%" >&nbsp;</TD>
    <TD bgColor=#e6efff align=left>capital gains rates </TD>
    <TD bgColor=#e6efff  width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="12%" align=right><B>(4,522</B></TD>
    <TD bgColor=#e6efff  width="2%" align=left><B>)</B> </TD>
    <TD bgColor=#e6efff  width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="12%" align=right>(60,324</TD>
    <TD bgColor=#e6efff  width="2%" align=left>) </TD></TR>
  <TR vAlign=top>
    <TD width="5%" >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>Tax benefits (not
      recognized) and other </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="1%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="12%"
      align=right><B>(3,828</B></TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="2%"
    align=left><B>)</B> </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="1%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="12%"
      align=right>(10,713</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="2%"
    align=left>) </TD></TR>
  <TR vAlign=top>
    <TD width="5%" >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" bgColor=#e6efff
      align=left>&nbsp; </TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" bgColor=#e6efff
    width="1%" align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" bgColor=#e6efff width="12%"
    align=right><B>31,397</B> </TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" bgColor=#e6efff
    width="2%" align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" bgColor=#e6efff
    width="1%" align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" bgColor=#e6efff width="12%"
    align=right>32,193 </TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" bgColor=#e6efff
    width="2%" align=left>&nbsp;</TD></TR></TABLE>
<P style="MARGIN-LEFT: 5%" align=justify>The applicable tax rate in Canada for
the year ended December 31, 2011 was 26.5%, which reflects the legislated
provincial tax rate decrease from the prior year of 28.5% . </P>
<TABLE
style="BORDER-COLOR: black; BORDER-COLLAPSE: collapse; FONT-SIZE: 10pt; "
border=0 cellSpacing=0 cellPadding=0 width="100%">
  <TR vAlign=top>
    <TD style="BORDER-TOP: #000000 1px solid" align=right>35 | <FONT
      color=#7e7e7e>P a g e</FONT> </TD>
  </TR>
</TABLE>
<HR style="PAGE-BREAK-AFTER: always" align=center color=black SIZE=5
width="100%" noShade>
<A name=page_36></A><BR>
<TABLE
style="BORDER-COLOR: black; BORDER-COLLAPSE: collapse; FONT-SIZE: 10pt; "
border=0 cellSpacing=0 cellPadding=0 width="100%">
  <TR vAlign=top>
    <TD align=left><FONT size=4><B>Silver Standard Resources Inc.</B> </FONT></TD>
  </TR>
  <TR vAlign=top>
    <TD align=left><FONT size=3>Notes to the Consolidated Financial Statements
      </FONT></TD>
  </TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left><FONT
      size=3>December 31, 2011 and 2010 and January 1, 2010 </FONT></TD>
  </TR>
  <TR vAlign=top>
    <TD align=left>(tabular amounts expressed in thousands of United States dollars
      unless otherwise stated) </TD>
  </TR>
</TABLE>
<BR>
<TABLE
style="BORDER-COLOR: black; BORDER-COLLAPSE: collapse; FONT-SIZE: 10pt; "
border=0 cellSpacing=0 cellPadding=0 width="100%" BCLLIST>

  <TR>
    <TD vAlign=top width="5%"><B>9.</B> </TD>
    <TD>
      <P align=justify><B>CURRENT AND DEFERRED INCOME TAX (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 company recognizes certain deferred tax assets and
      liabilities relating to temporary differences as
follows:</P></TD></TR></TABLE><BR>
<TABLE
style="BORDER-COLOR: black; BORDER-COLLAPSE: collapse; FONT-SIZE: 10pt; "
border=0 cellSpacing=0 cellPadding=0 width="100%">

  <TR vAlign=top>
    <TD width="5%" >&nbsp;</TD>
    <TD align=left>&nbsp; </TD>
    <TD width="1%" align=left>&nbsp;</TD>
    <TD width="12%" align=right><B>December 31,</B> </TD>
    <TD width="2%" align=left>&nbsp;</TD>
    <TD width="1%" align=left>&nbsp;</TD>
    <TD width="12%" align=right><B>December 31,</B> </TD>
    <TD width="2%" align=left>&nbsp;</TD>
    <TD width="1%" align=left>&nbsp;</TD>
    <TD width="12%" align=right><B>January 1,</B> </TD>
    <TD width="2%" 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 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>2010</B> </TD>
    <TD width="2%" 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 style="BORDER-BOTTOM: #000000 1px solid" width="1%"
    align=right>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="12%" align=right>$</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="2%"
    align=right>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="1%"
    align=right>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="12%" align=right>$</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="2%"
    align=right>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="1%"
    align=right>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="12%" align=right>$</TD>
  <TD style="BORDER-BOTTOM: #000000 1px solid" width="2%"
    align=right>&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD width="5%">&nbsp;</TD>
    <TD bgColor=#e6efff align=left><B>Deferred tax assets</B> </TD>
    <TD bgColor=#e6efff width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="12%" align=left>&nbsp; </TD>
    <TD bgColor=#e6efff width="2%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="12%" align=left>&nbsp; </TD>
    <TD bgColor=#e6efff width="2%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="12%" align=left>&nbsp; </TD>
    <TD bgColor=#e6efff width="2%" align=left>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD width="5%">&nbsp;</TD>
    <TD align=left>Property, plant and equipment </TD>
    <TD width="1%" align=left>&nbsp;</TD>
    <TD width="12%" align=right><B>10,853</B> </TD>
    <TD width="2%" align=left>&nbsp;</TD>
    <TD width="1%" align=left>&nbsp;</TD>
    <TD width="12%" align=right>- </TD>
    <TD width="2%" align=left>&nbsp;</TD>
    <TD width="1%" align=left>&nbsp;</TD>
    <TD width="12%" align=right>- </TD>
    <TD width="2%" align=left>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD width="5%">&nbsp;</TD>
    <TD bgColor=#e6efff align=left>Foreign exchange losses </TD>
    <TD bgColor=#e6efff width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="12%" align=right><B>3,554</B> </TD>
    <TD bgColor=#e6efff width="2%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="12%" align=right>- </TD>
    <TD bgColor=#e6efff width="2%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="12%" align=right>- </TD>
    <TD bgColor=#e6efff width="2%" align=left>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD width="5%">&nbsp;</TD>
    <TD align=left>Inventory </TD>
    <TD width="1%" align=left>&nbsp;</TD>
    <TD width="12%" align=right><B>2,290</B> </TD>
    <TD width="2%" align=left>&nbsp;</TD>
    <TD width="1%" align=left>&nbsp;</TD>
    <TD width="12%" align=right>- </TD>
    <TD width="2%" align=left>&nbsp;</TD>
    <TD width="1%" align=left>&nbsp;</TD>
    <TD width="12%" align=right>- </TD>
    <TD width="2%" align=left>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD width="5%">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff
      align=left>Other </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff width="1%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff width="12%"
    align=right><B>4,894</B> </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff width="2%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff width="1%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff width="12%"
    align=right>- </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff width="2%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff width="1%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff width="12%"
    align=right>- </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff width="2%"
    align=left>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD width="5%">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>Total deferred tax
      assets </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="1%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="12%"
      align=right><B>21,591</B> </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="2%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="1%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="12%" align=right>- </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="2%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="1%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="12%" align=right>- </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="2%"
    align=left>&nbsp;</TD></TR>
  <TR>
    <TD width="5%">&nbsp;</TD>
    <TD bgColor=#e6efff>&nbsp; </TD>
    <TD bgColor=#e6efff width="1%">&nbsp;</TD>
    <TD bgColor=#e6efff width="12%">&nbsp; </TD>
    <TD bgColor=#e6efff width="2%">&nbsp;</TD>
    <TD bgColor=#e6efff width="1%">&nbsp;</TD>
    <TD bgColor=#e6efff width="12%">&nbsp; </TD>
    <TD bgColor=#e6efff width="2%">&nbsp;</TD>
    <TD bgColor=#e6efff width="1%">&nbsp;</TD>
    <TD bgColor=#e6efff width="12%">&nbsp; </TD>
    <TD bgColor=#e6efff width="2%">&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD width="5%">&nbsp;</TD>
    <TD align=left><B>Deferred tax liabilities</B> </TD>
    <TD width="1%" align=left>&nbsp;</TD>
    <TD width="12%" align=left>&nbsp; </TD>
    <TD width="2%" align=left>&nbsp;</TD>
    <TD width="1%" align=left>&nbsp;</TD>
    <TD width="12%" align=left>&nbsp; </TD>
    <TD width="2%" align=left>&nbsp;</TD>
    <TD width="1%" align=left>&nbsp;</TD>
    <TD width="12%" align=left>&nbsp; </TD>
    <TD width="2%" align=left>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD width="5%">&nbsp;</TD>
    <TD bgColor=#e6efff align=left>Mineral properties </TD>
    <TD bgColor=#e6efff width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="12%" align=right><B>(28,111</B></TD>
    <TD bgColor=#e6efff width="2%" align=left><B>)</B> </TD>
    <TD bgColor=#e6efff width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="12%" align=right>(7,037</TD>
    <TD bgColor=#e6efff width="2%" align=left>) </TD>
    <TD bgColor=#e6efff width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="12%" align=right>(1,949</TD>
    <TD bgColor=#e6efff width="2%" align=left>) </TD></TR>
  <TR vAlign=top>
    <TD width="5%">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>Marketable
      securities and investments </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="1%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="12%"
      align=right><B>(13,220</B></TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="2%"
      align=left><B>)</B> </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="1%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="12%"
      align=right>(19,728</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="2%" align=left>) </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="1%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="12%" align=right>- </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="2%"
    align=left>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD width="5%">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff
      align=left>Total deferred tax liabilities </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff width="1%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff width="12%"
    align=right><B>(41,331</B></TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff width="2%"
    align=left><B>)</B> </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff width="1%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff width="12%"
    align=right>(26,765</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff width="2%"
    align=left>) </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff width="1%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff width="12%"
    align=right>(1,949</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff width="2%"
    align=left>) </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>
    <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" bgColor=#e6efff
      align=left>Net deferred tax liabilities </TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" bgColor=#e6efff width="1%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" bgColor=#e6efff width="12%"
    align=right><B>(19,740</B></TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" bgColor=#e6efff width="2%"
    align=left><B>)</B> </TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" bgColor=#e6efff width="1%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" bgColor=#e6efff width="12%"
    align=right>(26,765</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" bgColor=#e6efff width="2%"
    align=left>) </TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" bgColor=#e6efff width="1%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" bgColor=#e6efff width="12%"
    align=right>(1,949</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" bgColor=#e6efff width="2%"
    align=left>) </TD></TR></TABLE>
<P style="MARGIN-LEFT: 5%" align=justify>The analysis of deferred tax assets and
deferred tax liabilities is as follows: </P>
<TABLE
style="BORDER-COLOR: black; BORDER-COLLAPSE: collapse; FONT-SIZE: 10pt; "
border=0 cellSpacing=0 cellPadding=0 width="100%">

  <TR vAlign=top>
    <TD width="5%" >&nbsp;</TD>
    <TD align=left>&nbsp; </TD>
    <TD width="1%" align=left>&nbsp;</TD>
    <TD width="12%" align=right><B>December 31,</B> </TD>
    <TD width="2%" align=left>&nbsp;</TD>
    <TD width="1%" align=left>&nbsp;</TD>
    <TD width="12%" align=right><B>December 31,</B> </TD>
    <TD width="2%" 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 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 width="5%">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>&nbsp; </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="1%"
    align=right>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="12%" align=right>$</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="2%"
    align=right>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="1%"
    align=right>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="12%" align=right>$</TD>
  <TD style="BORDER-BOTTOM: #000000 1px solid" width="2%"
    align=right>&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD width="5%">&nbsp;</TD>
    <TD bgColor=#e6efff align=left><B>Deferred tax assets</B> </TD>
    <TD bgColor=#e6efff width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="12%" align=left>&nbsp; </TD>
    <TD bgColor=#e6efff width="2%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="12%" align=left>&nbsp; </TD>
    <TD bgColor=#e6efff width="2%" align=left>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD width="5%">&nbsp;</TD>
    <TD align=left>Deferred tax assets to be recovered after more than 12
      months </TD>
    <TD width="1%" align=left>&nbsp;</TD>
    <TD width="12%" align=right><B>15,047</B> </TD>
    <TD width="2%" align=left>&nbsp;</TD>
    <TD width="1%" align=left>&nbsp;</TD>
    <TD width="12%" align=right>- </TD>
    <TD width="2%" align=left>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD width="5%">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff
      align=left>Deferred tax assets to be recovered within 12 months </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff width="1%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff width="12%"
    align=right><B>6,544</B> </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff width="2%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff width="1%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff width="12%"
    align=right>- </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff width="2%"
    align=left>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD width="5%">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>Total deferred tax
      assets </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="1%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="12%"
      align=right><B>21,591</B> </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="2%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="1%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="12%" align=right>- </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="2%"
    align=left>&nbsp;</TD></TR>
  <TR>
    <TD width="5%">&nbsp;</TD>
    <TD bgColor=#e6efff>&nbsp; </TD>
    <TD bgColor=#e6efff width="1%">&nbsp;</TD>
    <TD bgColor=#e6efff width="12%">&nbsp; </TD>
    <TD bgColor=#e6efff width="2%">&nbsp;</TD>
    <TD bgColor=#e6efff width="1%">&nbsp;</TD>
    <TD bgColor=#e6efff width="12%">&nbsp; </TD>
    <TD bgColor=#e6efff width="2%">&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD width="5%">&nbsp;</TD>
    <TD align=left><B>Deferred tax liabilities</B> </TD>
    <TD width="1%" align=left>&nbsp;</TD>
    <TD width="12%" align=left>&nbsp; </TD>
    <TD width="2%" align=left>&nbsp;</TD>
    <TD width="1%" align=left>&nbsp;</TD>
    <TD width="12%" align=left>&nbsp; </TD>
    <TD width="2%" align=left>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD width="5%">&nbsp;</TD>
    <TD bgColor=#e6efff align=left>Deferred tax liabilities to be discharged
      after more than 12 months </TD>
    <TD bgColor=#e6efff width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="12%" align=right><B>(36,547</B></TD>
    <TD bgColor=#e6efff width="2%" align=left><B>)</B> </TD>
    <TD bgColor=#e6efff width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="12%" align=right>(19,566</TD>
    <TD bgColor=#e6efff width="2%" align=left>) </TD></TR>
  <TR vAlign=top>
    <TD width="5%">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>Deferred tax
      liabilities to be discharged within 12 months </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="1%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="12%"
      align=right><B>(4,784</B></TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="2%"
      align=left><B>)</B> </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="1%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="12%"
    align=right>(7,199</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="2%" align=left>)
</TD></TR>
  <TR vAlign=top>
    <TD width="5%">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff
      align=left>Total deferred tax liabilities </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff width="1%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff width="12%"
    align=right><B>(41,331</B></TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff width="2%"
    align=left><B>)</B> </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff width="1%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff width="12%"
    align=right>(26,765</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff width="2%"
    align=left>) </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" bgColor=#e6efff
      align=left>Net deferred tax liabilities </TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" bgColor=#e6efff width="1%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" bgColor=#e6efff width="12%"
    align=right><B>(19,740</B></TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" bgColor=#e6efff width="2%"
    align=left><B>)</B> </TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" bgColor=#e6efff width="1%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" bgColor=#e6efff width="12%"
    align=right>(26,765</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" bgColor=#e6efff width="2%"
    align=left>) </TD></TR></TABLE><BR>
<TABLE
style="BORDER-COLOR: black; BORDER-COLLAPSE: collapse; FONT-SIZE: 10pt; "
border=0 cellSpacing=0 cellPadding=0 width="100%">
  <TR vAlign=top>
    <TD style="BORDER-TOP: #000000 1px solid" align=right>36 | <FONT
      color=#7e7e7e>P a g e</FONT> </TD>
  </TR>
</TABLE>
<HR style="PAGE-BREAK-AFTER: always" align=center color=black SIZE=5
width="100%" noShade>
<A name=page_37></A><BR>
<TABLE
style="BORDER-COLOR: black; BORDER-COLLAPSE: collapse; FONT-SIZE: 10pt; "
border=0 cellSpacing=0 cellPadding=0 width="100%">
  <TR vAlign=top>
    <TD align=left><FONT size=4><B>Silver Standard Resources Inc.</B> </FONT></TD>
  </TR>
  <TR vAlign=top>
    <TD align=left><FONT size=3>Notes to the Consolidated Financial Statements
      </FONT></TD>
  </TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left><FONT
      size=3>December 31, 2011 and 2010 and January 1, 2010 </FONT></TD>
  </TR>
  <TR vAlign=top>
    <TD align=left>(tabular amounts expressed in thousands of United States dollars
      unless otherwise stated) </TD>
  </TR>
</TABLE>
<BR>
<TABLE
style="BORDER-COLOR: black; BORDER-COLLAPSE: collapse; FONT-SIZE: 10pt; "
border=0 cellSpacing=0 cellPadding=0 width="100%" BCLLIST>

  <TR>
    <TD vAlign=top width="5%"><B>9.</B> </TD>
    <TD>
      <P align=justify><B>CURRENT AND DEFERRED INCOME TAX (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 movement in the net deferred income tax liability
      account was as follows:</P></TD></TR></TABLE><BR>
<TABLE
style="BORDER-COLOR: black; BORDER-COLLAPSE: collapse; FONT-SIZE: 10pt; "
border=0 cellSpacing=0 cellPadding=0 width="100%">

  <TR vAlign=top>
    <TD width="5%"  >&nbsp;</TD>
    <TD align=left>&nbsp; </TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="12%" align=right><B>December 31,</B> </TD>
    <TD  width="2%" align=left>&nbsp;</TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="12%" align=right><B>December 31,</B> </TD>
    <TD  width="2%" 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 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 width="5%" >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>&nbsp; </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="1%"
    align=right>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="12%" align=right>$</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="2%"
    align=right>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="1%"
    align=right>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="12%" align=right>$</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="2%"
    align=right>&nbsp;</TD></TR>
  <TR>
    <TD width="5%" >&nbsp;</TD>
    <TD>&nbsp; </TD>
    <TD  width="1%">&nbsp;</TD>
    <TD width="12%">&nbsp; </TD>
    <TD  width="2%">&nbsp;</TD>
    <TD  width="1%">&nbsp;</TD>
    <TD width="12%">&nbsp; </TD>
    <TD  width="2%">&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD width="5%" >&nbsp;</TD>
    <TD bgColor=#e6efff align=left>Balance, beginning of year </TD>
    <TD bgColor=#e6efff  width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="12%" align=right><B>(26,765</B></TD>
    <TD bgColor=#e6efff  width="2%" align=left><B>)</B> </TD>
    <TD bgColor=#e6efff  width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="12%" align=right>(1,949</TD>
    <TD bgColor=#e6efff  width="2%" align=left>) </TD></TR>
  <TR vAlign=top>
    <TD width="5%" >&nbsp;</TD>
    <TD align=left>Recovered from (charged to) the statement of income </TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="12%" align=right><B>4,950</B> </TD>
    <TD  width="2%" align=left>&nbsp;</TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="12%" align=right>(29,594</TD>
    <TD  width="2%" align=left>) </TD></TR>
  <TR vAlign=top>
    <TD width="5%" >&nbsp;</TD>
    <TD bgColor=#e6efff align=left>(Tax charge)/credit related to components
      of other comprehensive income </TD>
    <TD bgColor=#e6efff  width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="12%" align=right><B>1,982</B> </TD>
    <TD bgColor=#e6efff  width="2%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff  width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="12%" align=right>(1,833</TD>
    <TD bgColor=#e6efff  width="2%" align=left>) </TD></TR>
  <TR vAlign=top>
    <TD width="5%" >&nbsp;</TD>
    <TD align=left>Recovery to share capital </TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="12%" align=right><B>-</B> </TD>
    <TD  width="2%" align=left>&nbsp;</TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="12%" align=right>5,109 </TD>
    <TD  width="2%" align=left>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD width="5%" >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff
      align=left>Exchange differences </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff
    width="1%" align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff width="12%"
    align=right><B>93</B> </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff
    width="2%" align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff
    width="1%" align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff width="12%"
    align=right>1,502 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff
    width="2%" align=left>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD width="5%" >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=left>Balance, end of
      year </TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid"  width="1%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" width="12%"
      align=right><B>(19,740</B></TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid"  width="2%"
    align=left><B>)</B> </TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid"  width="1%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" width="12%"
      align=right>(26,765</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid"  width="2%"
    align=left>) </TD></TR></TABLE>
<P style="MARGIN-LEFT: 5%" align=justify>The following items were charged
(credited) to the statement of income during the year: </P>
<TABLE
style="BORDER-COLOR: black; BORDER-COLLAPSE: collapse; FONT-SIZE: 10pt; "
border=0 cellSpacing=0 cellPadding=0 width="100%">

  <TR vAlign=top>
    <TD width="5%"  >&nbsp;</TD>
    <TD align=left>&nbsp; </TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="12%" align=right><B>December 31,</B> </TD>
    <TD  width="2%" align=left>&nbsp;</TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="12%" align=right><B>December 31,</B> </TD>
    <TD  width="2%" 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 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 width="5%" >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>&nbsp; </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="1%"
    align=right>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="12%" align=right>$</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="2%"
    align=right>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="1%"
    align=right>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="12%" align=right>$</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="2%"
    align=right>&nbsp;</TD></TR>
  <TR>
    <TD width="5%" >&nbsp;</TD>
    <TD>&nbsp; </TD>
    <TD  width="1%">&nbsp;</TD>
    <TD width="12%">&nbsp; </TD>
    <TD  width="2%">&nbsp;</TD>
    <TD  width="1%">&nbsp;</TD>
    <TD width="12%">&nbsp; </TD>
    <TD  width="2%">&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD width="5%" >&nbsp;</TD>
    <TD bgColor=#e6efff align=left>Property plant and equipment </TD>
    <TD bgColor=#e6efff  width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="12%" align=right><B>(10,853</B></TD>
    <TD bgColor=#e6efff  width="2%" align=left><B>)</B> </TD>
    <TD bgColor=#e6efff  width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="12%" align=right>199 </TD>
    <TD bgColor=#e6efff  width="2%" align=left>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD width="5%" >&nbsp;</TD>
    <TD align=left>Capital and non capital losses </TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="12%" align=right><B>95</B> </TD>
    <TD  width="2%" align=left>&nbsp;</TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="12%" align=right>1,280 </TD>
    <TD  width="2%" align=left>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD width="5%" >&nbsp;</TD>
    <TD bgColor=#e6efff align=left>Foreign resource pools </TD>
    <TD bgColor=#e6efff  width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="12%" align=right><B>(283</B></TD>
    <TD bgColor=#e6efff  width="2%" align=left><B>)</B> </TD>
    <TD bgColor=#e6efff  width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="12%" align=right>- </TD>
    <TD bgColor=#e6efff  width="2%" align=left>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD width="5%" >&nbsp;</TD>
    <TD align=left>Share issuance costs </TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="12%" align=right><B>1,275</B> </TD>
    <TD  width="2%" align=left>&nbsp;</TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="12%" align=right>- </TD>
    <TD  width="2%" align=left>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD width="5%" >&nbsp;</TD>
    <TD bgColor=#e6efff align=left>Marketable securities and investments </TD>
    <TD bgColor=#e6efff  width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="12%" align=right><B>(12,571</B></TD>
    <TD bgColor=#e6efff  width="2%" align=left><B>)</B> </TD>
    <TD bgColor=#e6efff  width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="12%" align=right>31,753 </TD>
    <TD bgColor=#e6efff  width="2%" align=left>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD width="5%" >&nbsp;</TD>
    <TD align=left>Other </TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="12%" align=right><B>(3,688</B></TD>
    <TD  width="2%" align=left><B>)</B> </TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="12%" align=right>(8,526</TD>
    <TD  width="2%" align=left>) </TD></TR>
  <TR vAlign=top>
    <TD width="5%" >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff
      align=left>Mineral properties </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff
    width="1%" align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff width="12%"
    align=right><B>21,075</B> </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff
    width="2%" align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff
    width="1%" align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff width="12%"
    align=right>4,888 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff
    width="2%" align=left>&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"  width="1%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" width="12%"
      align=right><B>(4,950</B></TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid"  width="2%"
    align=left><B>)</B> </TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid"  width="1%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" width="12%"
      align=right>29,594 </TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid"  width="2%"
    align=left>&nbsp;</TD></TR></TABLE>
<P style="MARGIN-LEFT: 5%" align=justify>The Company also has the following
balances in respect of which no deferred tax asset was recognized: </P>
<TABLE
style="BORDER-COLOR: black; BORDER-COLLAPSE: collapse; FONT-SIZE: 10pt; "
border=0 cellSpacing=0 cellPadding=0 width="100%">

  <TR vAlign=top>
    <TD width="5%"  >&nbsp;</TD>
    <TD align=left>&nbsp; </TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="12%" align=right><B>December 31,</B> </TD>
    <TD  width="2%" align=left>&nbsp;</TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="12%" align=right><B>December 31,</B> </TD>
    <TD  width="2%" 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 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 width="5%" >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>&nbsp; </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="1%"
    align=right>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="12%"
    align=right>$&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="2%"
    align=right>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="1%"
    align=right>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="12%" align=right>$</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="2%"
    align=right>&nbsp;</TD></TR>
  <TR>
    <TD width="5%" >&nbsp;</TD>
    <TD>&nbsp; </TD>
    <TD  width="1%">&nbsp;</TD>
    <TD width="12%">&nbsp; </TD>
    <TD  width="2%">&nbsp;</TD>
    <TD  width="1%">&nbsp;</TD>
    <TD width="12%">&nbsp; </TD>
    <TD  width="2%">&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD width="5%" >&nbsp;</TD>
    <TD bgColor=#e6efff align=left>Property plant and equipment </TD>
    <TD bgColor=#e6efff  width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="12%" align=right><B>3,155</B> </TD>
    <TD bgColor=#e6efff  width="2%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff  width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="12%" align=right>21,898 </TD>
    <TD bgColor=#e6efff  width="2%" align=left>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD width="5%" >&nbsp;</TD>
    <TD align=left>Capital and non capital losses </TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="12%" align=right><B>60</B> </TD>
    <TD  width="2%" align=left>&nbsp;</TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="12%" align=right>373 </TD>
    <TD  width="2%" align=left>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD width="5%" >&nbsp;</TD>
    <TD bgColor=#e6efff align=left>Foreign resource pools </TD>
    <TD bgColor=#e6efff  width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="12%" align=right><B>316</B> </TD>
    <TD bgColor=#e6efff  width="2%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff  width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="12%" align=right>618 </TD>
    <TD bgColor=#e6efff  width="2%" align=left>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD width="5%" >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>Other </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="1%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="12%"
      align=right><B>1,875</B> </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="2%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="1%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="12%" align=right>3,572
    </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="2%"
    align=left>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD width="5%" >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" bgColor=#e6efff
      align=left>&nbsp; </TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" bgColor=#e6efff
    width="1%" align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" bgColor=#e6efff width="12%"
    align=right><B>5,406</B> </TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" bgColor=#e6efff
    width="2%" align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" bgColor=#e6efff
    width="1%" align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" bgColor=#e6efff width="12%"
    align=right>26,461 </TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" bgColor=#e6efff
    width="2%" align=left>&nbsp;</TD></TR></TABLE>
<P style="MARGIN-LEFT: 5%" align=justify>The company has an unrecognised
deferred tax asset in respect of potential foreign tax credits that may be used
to offset taxes paid in Argentina. These have not been recognised due to
measurement uncertainty over the extent and timing of any potential benefit. If
recognized this will create a recovery of income tax expense in that period.</P>
<TABLE
style="BORDER-COLOR: black; BORDER-COLLAPSE: collapse; FONT-SIZE: 10pt; "
border=0 cellSpacing=0 cellPadding=0 width="100%">
  <TR vAlign=top>
    <TD style="BORDER-TOP: #000000 1px solid" align=right>37 | <FONT
      color=#7e7e7e>P a g e</FONT> </TD>
  </TR>
</TABLE>
<HR style="PAGE-BREAK-AFTER: always" align=center color=black SIZE=5
width="100%" noShade>
<A name=page_38></A><BR>
<TABLE
style="BORDER-COLOR: black; BORDER-COLLAPSE: collapse; FONT-SIZE: 10pt; "
border=0 cellSpacing=0 cellPadding=0 width="100%">
  <TR vAlign=top>
    <TD align=left><FONT size=4><B>Silver Standard Resources Inc.</B> </FONT></TD>
  </TR>
  <TR vAlign=top>
    <TD align=left><FONT size=3>Notes to the Consolidated Financial Statements
      </FONT></TD>
  </TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left><FONT
      size=3>December 31, 2011 and 2010 and January 1, 2010 </FONT></TD>
  </TR>
  <TR vAlign=top>
    <TD align=left>(tabular amounts expressed in thousands of United States dollars
      unless otherwise stated) </TD>
  </TR>
</TABLE>
<BR>
<TABLE
style="BORDER-COLOR: black; BORDER-COLLAPSE: collapse; FONT-SIZE: 10pt; "
border=0 cellSpacing=0 cellPadding=0 width="100%" BCLLIST>

  <TR>
    <TD vAlign=top width="5%"><B>9.</B> </TD>
    <TD>
      <P align=justify><B>CURRENT AND DEFERRED INCOME TAX (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>At December 31, 2011, the Company had the following
      estimated tax operating losses available to reduce future taxable income.
      The losses expire at various dates and amounts between 2012 and 2031, with
      the exception of tax losses incurred in Chile which are available
      indefinitely:</P></TD></TR></TABLE><BR>
<DIV align=center>
<TABLE
style="BORDER-COLOR: black; BORDER-COLLAPSE: collapse; FONT-SIZE: 10pt; "
border=0 cellSpacing=0 cellPadding=0 width="30%">

  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>&nbsp; </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="1%"
    align=right>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="32%" align=right
    >$&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="2%"
    align=right>&nbsp;</TD>
  </TR>
  <TR>
    <TD>&nbsp; </TD>
    <TD  width="1%">&nbsp;</TD>
    <TD width="32%" >&nbsp; </TD>
    <TD  width="2%">&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD bgColor=#e6efff align=left>Argentina </TD>
    <TD bgColor=#e6efff  width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="32%" align=right ><B>7,153</B> </TD>
    <TD bgColor=#e6efff  width="2%" align=left>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left>Chile </TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="32%" align=right ><B>355</B> </TD>
    <TD  width="2%" align=left>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD bgColor=#e6efff align=left>Mexico </TD>
    <TD bgColor=#e6efff  width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="32%" align=right ><B>59,692</B>
</TD>
    <TD bgColor=#e6efff  width="2%" align=left>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left>Peru </TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="32%" align=right ><B>48</B> </TD>
    <TD  width="2%" align=left>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD bgColor=#e6efff align=left>U.S.A. </TD>
    <TD bgColor=#e6efff  width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="32%" align=right ><B>2,006</B> </TD>
    <TD bgColor=#e6efff  width="2%"
  align=left>&nbsp;</TD></TR></TABLE></DIV><BR>
<TABLE
style="BORDER-COLOR: black; BORDER-COLLAPSE: collapse; FONT-SIZE: 10pt; "
border=0 cellSpacing=0 cellPadding=0 width="100%" BCLLIST>

  <TR>
    <TD vAlign=top width="5%"><B>10.</B> </TD>
    <TD>
      <P align=justify><B>VALUE ADDED TAX
RECEIVABLE</B></P></TD></TR></TABLE><BR>
<DIV align=center>
<TABLE
style="BORDER-COLOR: black; BORDER-COLLAPSE: collapse; FONT-SIZE: 10pt; "
border=0 cellSpacing=0 cellPadding=0 width="80%">

  <TR vAlign=top>
    <TD align=left >&nbsp; </TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="15%" 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="15%" 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="15%" align=right nowrap><B>January 1,</B> </TD>
    <TD  width="2%" align=left>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left >&nbsp; </TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="15%" 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="15%" 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="15%" 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"  width="1%"
    align=right>&nbsp;</TD>
    <TD width="15%"
    align=right nowrap style="BORDER-BOTTOM: #000000 1px solid">$&nbsp;</TD>
    <TD  width="2%"
    align=right nowrap style="BORDER-BOTTOM: #000000 1px solid">&nbsp;</TD>
    <TD  width="1%"
    align=right nowrap style="BORDER-BOTTOM: #000000 1px solid">&nbsp;</TD>
    <TD width="15%" align=right nowrap style="BORDER-BOTTOM: #000000 1px solid">$</TD>
    <TD  width="2%"
    align=right nowrap style="BORDER-BOTTOM: #000000 1px solid">&nbsp;</TD>
    <TD  width="1%"
    align=right nowrap style="BORDER-BOTTOM: #000000 1px solid">&nbsp;</TD>
    <TD width="15%" align=right nowrap style="BORDER-BOTTOM: #000000 1px solid">$</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="2%"
    align=right>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD bgColor=#e6efff align=left >Current </TD>
    <TD bgColor=#e6efff  width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="15%" align=right><B>1,482</B> </TD>
    <TD bgColor=#e6efff  width="2%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff  width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="15%" align=right>901 </TD>
    <TD bgColor=#e6efff  width="2%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff  width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="15%" align=right>19 </TD>
    <TD bgColor=#e6efff  width="2%" align=left>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left
      >Non-current </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="1%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="15%"
      align=right><B>89,160</B> </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="2%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="1%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="15%"
      align=right>70,782 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="2%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="1%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="15%"
      align=right>54,094 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="2%"
    align=left>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 2px solid" bgColor=#e6efff align=left
    >&nbsp; </TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" bgColor=#e6efff
    width="1%" align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" bgColor=#e6efff width="15%"
    align=right><B>90,642</B> </TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" bgColor=#e6efff
    width="2%" align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" bgColor=#e6efff
    width="1%" align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" bgColor=#e6efff width="15%"
    align=right>71,683 </TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" bgColor=#e6efff
    width="2%" align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" bgColor=#e6efff
    width="1%" align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" bgColor=#e6efff width="15%"
    align=right>54,113 </TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" bgColor=#e6efff
    width="2%" align=left>&nbsp;</TD></TR></TABLE></DIV>
<P style="MARGIN-LEFT: 5%" align=justify>In countries where value added tax
(&#147;VAT&#148;) has been paid but recoverability is uncertain, the VAT payments have
either been deferred within mineral property costs, or expensed if related to
general mineral exploration. If the Company ultimately recovers the amounts that
have been deferred, the amount received will be applied to reduce mineral
property costs. Current VAT is presented within current tax receivables (note
4). </P>
<P style="MARGIN-LEFT: 5%" align=justify>VAT paid in Argentina in relation to
the Pirquitas mine is recoverable under Argentine law once the mine reaches the
production stage. Production commenced at the mine on December 1, 2009, and as a
result the Company has applied to the Argentine government to recover the
applicable VAT. The Company believes that the balance is fully recoverable and
has not provided an allowance. </P>
<TABLE
style="BORDER-COLOR: black; BORDER-COLLAPSE: collapse; FONT-SIZE: 10pt; "
border=0 cellSpacing=0 cellPadding=0 width="100%">
  <TR vAlign=top>
    <TD style="BORDER-TOP: #000000 1px solid" align=right>38 | <FONT
      color=#7e7e7e>P a g e</FONT> </TD>
  </TR>
</TABLE>
<HR style="PAGE-BREAK-AFTER: always" align=center color=black SIZE=5
width="100%" noShade>
<A name=page_39></A><BR>
<TABLE
style="BORDER-COLOR: black; BORDER-COLLAPSE: collapse; FONT-SIZE: 10pt; "
border=0 cellSpacing=0 cellPadding=0 width="100%">
  <TR vAlign=top>
    <TD align=left><FONT size=4><B>Silver Standard Resources Inc.</B> </FONT></TD>
  </TR>
  <TR vAlign=top>
    <TD align=left><FONT size=3>Notes to the Consolidated Financial Statements
      </FONT></TD>
  </TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left><FONT
      size=3>December 31, 2011 and 2010 and January 1, 2010 </FONT></TD>
  </TR>
  <TR vAlign=top>
    <TD align=left>(tabular amounts expressed in thousands of United States dollars
      unless otherwise stated) </TD>
  </TR>
</TABLE>
<BR>
<TABLE
style="BORDER-COLOR: black; BORDER-COLLAPSE: collapse; FONT-SIZE: 10pt; "
border=0 cellSpacing=0 cellPadding=0 width="100%" BCLLIST>

  <TR>
    <TD vAlign=top width="5%"><B>11.</B> </TD>
    <TD>
      <P align=justify><B>TRADE AND OTHER
PAYABLES</B></P></TD></TR></TABLE><BR>
<TABLE
style="BORDER-COLOR: black; BORDER-COLLAPSE: collapse; FONT-SIZE: 10pt; "
border=0 cellSpacing=0 cellPadding=0 width="100%">

  <TR vAlign=top>
    <TD width="5%"  >&nbsp;</TD>
    <TD align=left>&nbsp; </TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="12%" align=right nowrap><B>December 31</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  width="2%" align=left nowrap>&nbsp;</TD>
    <TD  width="1%" align=left nowrap>&nbsp;</TD>
    <TD width="12%" align=right nowrap><B>January 1</B> </TD>
  <TD  width="2%" 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 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  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  width="2%" 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 style="BORDER-BOTTOM: #000000 1px solid"  width="1%"
    align=right>&nbsp;</TD>
    <TD width="12%" align=right nowrap style="BORDER-BOTTOM: #000000 1px solid">$</TD>
    <TD  width="2%"
    align=right nowrap style="BORDER-BOTTOM: #000000 1px solid">&nbsp;</TD>
    <TD  width="1%"
    align=right nowrap style="BORDER-BOTTOM: #000000 1px solid">&nbsp;</TD>
    <TD width="12%" align=right nowrap style="BORDER-BOTTOM: #000000 1px solid">$</TD>
    <TD  width="2%"
    align=right nowrap style="BORDER-BOTTOM: #000000 1px solid">&nbsp;</TD>
    <TD  width="1%"
    align=right nowrap style="BORDER-BOTTOM: #000000 1px solid">&nbsp;</TD>
    <TD width="12%" align=right nowrap style="BORDER-BOTTOM: #000000 1px solid">$</TD>
  <TD style="BORDER-BOTTOM: #000000 1px solid"  width="2%"
    align=right>&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>
    <TD  width="1%">&nbsp;</TD>
    <TD width="12%">&nbsp; </TD>
    <TD  width="2%">&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD width="5%" >&nbsp;</TD>
    <TD bgColor=#e6efff align=left>Trade payables </TD>
    <TD bgColor=#e6efff  width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="12%" align=right><B>12,648</B> </TD>
    <TD bgColor=#e6efff  width="2%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff  width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="12%" align=right>9,683 </TD>
    <TD bgColor=#e6efff  width="2%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff  width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="12%" align=right>28,124 </TD>
    <TD bgColor=#e6efff  width="2%" align=left>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD width="5%" >&nbsp;</TD>
    <TD align=left>Accrued liabilities </TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="12%" align=right><B>32,174</B> </TD>
    <TD  width="2%" align=left>&nbsp;</TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="12%" align=right>22,449 </TD>
    <TD  width="2%" align=left>&nbsp;</TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="12%" align=right>20,141 </TD>
    <TD  width="2%" align=left>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD width="5%" >&nbsp;</TD>
    <TD bgColor=#e6efff align=left>Current portion of close down and
      restoration provision (note 13) </TD>
    <TD bgColor=#e6efff  width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="12%" align=right><B>1,125</B> </TD>
    <TD bgColor=#e6efff  width="2%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff  width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="12%" align=right>955 </TD>
    <TD bgColor=#e6efff  width="2%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff  width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="12%" align=right>341 </TD>
    <TD bgColor=#e6efff  width="2%" align=left>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD width="5%" >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>Accrued interest
      on convertible notes (note 14) </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="1%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="12%"
      align=right><B>2,076</B> </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="2%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="1%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="12%" align=right>2,076
    </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="2%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="1%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="12%" align=right>2,076
    </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="2%"
    align=left>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD width="5%" >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" bgColor=#e6efff
      align=left>&nbsp; </TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" bgColor=#e6efff
    width="1%" align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" bgColor=#e6efff width="12%"
    align=right><B>48,023</B> </TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" bgColor=#e6efff
    width="2%" align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" bgColor=#e6efff
    width="1%" align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" bgColor=#e6efff width="12%"
    align=right>35,163 </TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" bgColor=#e6efff
    width="2%" align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" bgColor=#e6efff
    width="1%" align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" bgColor=#e6efff width="12%"
    align=right>50,682 </TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" bgColor=#e6efff
    width="2%" align=left>&nbsp;</TD></TR></TABLE>
<P style="MARGIN-LEFT: 5%" align=justify>All trade and other payables are
expected to be settled within twelve months. </P>
<TABLE
style="BORDER-COLOR: black; BORDER-COLLAPSE: collapse; FONT-SIZE: 10pt; "
border=0 cellSpacing=0 cellPadding=0 width="100%" BCLLIST>

  <TR>
    <TD vAlign=top width="5%"><B>12.</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>As part of its offering of Pretium shares on April 8,
      2011 (note 8), the Company issued 5,750,000 Pretium common share purchase
      warrants (the &#147;Pretium warrants&#148;). Each Pretium warrant is exercisable at
      a price of C$12.50 until April 7, 2012. Upon issuance of the Pretium
      warrants the Company recognized a liability of $7,500,000 in the statement
      of financial position and recognized transaction costs of $433,000 in the
      statement of income. The liability is recorded at FVTPL. The trading price
      of the Pretium warrants at December 31, 2011 was C$1.25. This price was
      unchanged from the trading price at inception, and therefore, there was no
      remeasurement effect on the Consolidated Statement of Income for the year
      ended December 31, 2011 other than foreign exchange.</P></TD></TR>
  <TR>
    <TD width="5%">&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
  <TR>
    <TD vAlign=top width="5%"><B>13.</B> </TD>
    <TD>
      <P align=justify><B>CLOSE DOWN AND RESTORATION
  PROVISION</B></P></TD></TR></TABLE><BR>
<DIV align=center>
<TABLE
style="BORDER-COLOR: black; BORDER-COLLAPSE: collapse; FONT-SIZE: 10pt; "
border=0 cellSpacing=0 cellPadding=0 width="80%">

  <TR vAlign=top>
    <TD align=left >&nbsp; </TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="15%" 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="15%" align=right nowrap><B>December 31,</B> </TD>
    <TD  width="2%" align=left>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left >&nbsp; </TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="15%" 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="15%" 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"  width="1%"
    align=right>&nbsp;</TD>
    <TD width="15%"
    align=right nowrap style="BORDER-BOTTOM: #000000 1px solid">$&nbsp;</TD>
    <TD  width="2%"
    align=right nowrap style="BORDER-BOTTOM: #000000 1px solid">&nbsp;</TD>
    <TD  width="1%"
    align=right nowrap style="BORDER-BOTTOM: #000000 1px solid">&nbsp;</TD>
    <TD width="15%" align=right nowrap style="BORDER-BOTTOM: #000000 1px solid">$</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="2%"
    align=right>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD bgColor=#e6efff align=left >Balance, beginning of year
</TD>
    <TD bgColor=#e6efff  width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="15%" align=right><B>13,626</B> </TD>
    <TD bgColor=#e6efff  width="2%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff  width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="15%" align=right>10,643 </TD>
    <TD bgColor=#e6efff  width="2%" align=left>&nbsp;</TD></TR>
  <TR>
    <TD >&nbsp; </TD>
    <TD  width="1%">&nbsp;</TD>
    <TD width="15%">&nbsp; </TD>
    <TD  width="2%">&nbsp;</TD>
    <TD  width="1%">&nbsp;</TD>
    <TD width="15%">&nbsp; </TD>
    <TD  width="2%">&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD bgColor=#e6efff align=left >Liabilities settled during
      the year </TD>
    <TD bgColor=#e6efff  width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="15%" align=right><B>(251</B></TD>
    <TD bgColor=#e6efff  width="2%" align=left><B>)</B> </TD>
    <TD bgColor=#e6efff  width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="15%" align=right>(223</TD>
    <TD bgColor=#e6efff  width="2%" align=left>) </TD></TR>
  <TR vAlign=top>
    <TD align=left >Accretion expense </TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="15%" align=right><B>1,596</B> </TD>
    <TD  width="2%" align=left>&nbsp;</TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="15%" align=right>1,798 </TD>
    <TD  width="2%" align=left>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD bgColor=#e6efff align=left >Foreign exchange gain </TD>
    <TD bgColor=#e6efff  width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="15%" align=right><B>(1,020</B></TD>
    <TD bgColor=#e6efff  width="2%" align=left><B>)</B> </TD>
    <TD bgColor=#e6efff  width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="15%" align=right>(55</TD>
    <TD bgColor=#e6efff  width="2%" align=left>) </TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left
      >Revisions and new estimated cash flows </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="1%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="15%"
      align=right><B>33,827</B> </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="2%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="1%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="15%" align=right>1,463
    </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="2%"
    align=left>&nbsp;</TD></TR>
  <TR>
    <TD bgColor=#e6efff >&nbsp; </TD>
    <TD bgColor=#e6efff  width="1%">&nbsp;</TD>
    <TD bgColor=#e6efff width="15%">&nbsp; </TD>
    <TD bgColor=#e6efff  width="2%">&nbsp;</TD>
    <TD bgColor=#e6efff  width="1%">&nbsp;</TD>
    <TD bgColor=#e6efff width="15%">&nbsp; </TD>
    <TD bgColor=#e6efff  width="2%">&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=left
      >Balance, end of year </TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid"  width="1%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" width="15%"
      align=right><B>47,778</B> </TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid"  width="2%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid"  width="1%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" width="15%"
      align=right>13,626 </TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid"  width="2%"
    align=left>&nbsp;</TD></TR>
  <TR>
    <TD bgColor=#e6efff >&nbsp; </TD>
    <TD bgColor=#e6efff  width="1%">&nbsp;</TD>
    <TD bgColor=#e6efff width="15%">&nbsp; </TD>
    <TD bgColor=#e6efff  width="2%">&nbsp;</TD>
    <TD bgColor=#e6efff  width="1%">&nbsp;</TD>
    <TD bgColor=#e6efff width="15%">&nbsp; </TD>
    <TD bgColor=#e6efff  width="2%">&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left
      >Less: current portion of close down and restoration
      provision in </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="1%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="15%"
      align=right><B>(1,125</B></TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="2%"
    align=left><B>)</B> </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="1%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="15%"
    align=right>(955</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="2%"
    align=left>) </TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 2px solid" bgColor=#e6efff align=left
    >Long-term close down and restoration provision </TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" bgColor=#e6efff
    width="1%" align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" bgColor=#e6efff width="15%"
    align=right><B>46,653</B> </TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" bgColor=#e6efff
    width="2%" align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" bgColor=#e6efff
    width="1%" align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" bgColor=#e6efff width="15%"
    align=right>12,671 </TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" bgColor=#e6efff
    width="2%" align=left>&nbsp;</TD></TR></TABLE></DIV><BR>
<TABLE
style="BORDER-COLOR: black; BORDER-COLLAPSE: collapse; FONT-SIZE: 10pt; "
border=0 cellSpacing=0 cellPadding=0 width="100%">
  <TR vAlign=top>
    <TD style="BORDER-TOP: #000000 1px solid" align=right>39 | <FONT
      color=#7e7e7e>P a g e</FONT> </TD>
  </TR>
</TABLE>
<HR style="PAGE-BREAK-AFTER: always" align=center color=black SIZE=5
width="100%" noShade>
<A name=page_40></A><BR>
<TABLE
style="BORDER-COLOR: black; BORDER-COLLAPSE: collapse; FONT-SIZE: 10pt; "
border=0 cellSpacing=0 cellPadding=0 width="100%">
  <TR vAlign=top>
    <TD align=left><FONT size=4><B>Silver Standard Resources Inc.</B> </FONT></TD>
  </TR>
  <TR vAlign=top>
    <TD align=left><FONT size=3>Notes to the Consolidated Financial Statements
      </FONT></TD>
  </TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left><FONT
      size=3>December 31, 2011 and 2010 and January 1, 2010 </FONT></TD>
  </TR>
  <TR vAlign=top>
    <TD align=left>(tabular amounts expressed in thousands of United States dollars
      unless otherwise stated) </TD>
  </TR>
</TABLE>
<BR>
<TABLE
style="BORDER-COLOR: black; BORDER-COLLAPSE: collapse; FONT-SIZE: 10pt; "
border=0 cellSpacing=0 cellPadding=0 width="100%" BCLLIST>

  <TR>
    <TD vAlign=top width="5%"><B>13.</B> </TD>
    <TD>
      <P align=justify><B>CLOSE DOWN AND RESTORATION PROVISION
    (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 Company&#146;s close down and restoration provision
      relates to the restoration and closure of the Company&#146;s mining operations
      and projects under development (note 7). The provision is initially
      recorded at net present value, and subsequently re-measured at each
      reporting period. During the fourth quarter of the year ended December 31,
      2011, the Company recorded a change in its estimate for close down and
      restoration from the preliminary findings of a mine closure plan for its
      Pirquitas mine in Argentina, that is scheduled for completion in 2012.
      This is a prospective change in estimate and had no impact on the
      Consolidated Statement of Income for the year ended December 31, 2011.
      There is considerable measurement uncertainty with a provision of this
      nature (note 2(u)) from the timing of cash flows, inflationary environment
      and impact of exchange rates.</P></TD></TR>
  <TR>
    <TD width="5%">&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
  <TR>
    <TD width="5%"></TD>
    <TD>
      <P align=justify>The provision is calculated as the present value of
      estimated future net cash outflows based on the following key
      assumptions:</P></TD></TR></TABLE><BR>
<TABLE
style="BORDER-COLOR: black; BORDER-COLLAPSE: collapse; FONT-SIZE: 10pt; "
border=0 cellSpacing=0 cellPadding=0 width="100%">

  <TR vAlign=top>
    <TD width="5%"  >&nbsp;</TD>
    <TD  align=center>-</TD>
    <TD width="90%" align=left >Total undiscounted value of
      estimated future cash outflows: $100,297,000 (2010 - $26,642,000); </TD></TR>
  <TR vAlign=top>
    <TD width="5%" >&nbsp;</TD>
    <TD  align=center>-</TD>
    <TD width="90%" align=left >Discount interest rate: 9.75%
      (2010 - 11%); and </TD></TR>
  <TR vAlign=top>
    <TD width="5%" >&nbsp;</TD>
    <TD  align=center>-</TD>
    <TD width="90%" align=left >Settlement of obligations
      expected to occur over the next 12 years. </TD></TR></TABLE><BR>
<TABLE
style="BORDER-COLOR: black; BORDER-COLLAPSE: collapse; FONT-SIZE: 10pt; "
border=0 cellSpacing=0 cellPadding=0 width="100%" BCLLIST>

  <TR>
    <TD vAlign=top width="5%"><B>14.</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. The Notes will be convertible into
      common shares of the Company at a fixed conversion rate, subject to
      certain anti-dilution adjustments, only in the following
  events:</P></TD></TR></TABLE><BR>
<TABLE
style="BORDER-COLOR: black; BORDER-COLLAPSE: collapse; FONT-SIZE: 10pt; "
border=0 cellSpacing=0 cellPadding=0 width="100%" BCLLIST>

  <TR>
    <TD width="10%"  >&nbsp;</TD>
    <TD vAlign=top width="5%">a) </TD>
    <TD>
      <P align=justify>during specified consecutive trading periods, if the
      market price of our common shares exceeds 130% of the conversion price of
      the Notes;</P></TD></TR>
  <TR>
    <TD width="10%" >&nbsp;</TD>
    <TD vAlign=top width="5%">b) </TD>
    <TD>
      <P align=justify>the trading price of the Notes, per $1,000 principal
      amount, falls to 97% or less of the amount equal to the then prevailing
      price of our common shares, multiplied by the applicable conversion
      rate;</P></TD></TR>
  <TR>
    <TD width="10%" >&nbsp;</TD>
    <TD vAlign=top width="5%">c) </TD>
    <TD>
      <P align=justify>the Notes are called for redemption;</P></TD></TR>
  <TR>
    <TD width="10%" >&nbsp;</TD>
    <TD vAlign=top width="5%">d) </TD>
    <TD>
      <P align=justify>upon the occurrence of specified corporate transactions;
      or</P></TD></TR>
  <TR>
    <TD width="10%" >&nbsp;</TD>
    <TD vAlign=top width="5%">e) </TD>
    <TD>
      <P align=justify>during specified periods in early 2013 and
  2028.</P></TD></TR></TABLE>
<P style="MARGIN-LEFT: 5%" align=justify>On conversion, holders of the Notes
will receive cash and, if applicable, common shares (or, at the Company&#146;s
election, in lieu of such common shares, cash or any combination of cash and
common shares). In addition, if certain fundamental changes occur to the
Company, holders of the Notes may be entitled to an increased conversion rate.
The principal amount will be repaid in cash and any excess value will be settled
at the Company&#146;s election in either cash or shares or a combination of the two.
Any portion of the Notes not settled in cash will be convertible into the
Company&#146;s common shares at an initial conversion rate of 23.0792 common shares
per $1,000 principal amount of Notes converted, representing an initial
conversion price of approximately $43.33 per common share. </P>
<P style="MARGIN-LEFT: 5%" align=justify>Holders of the Notes will have the
right to require the Company to repurchase all or part of their Notes on March 1
of each of 2013, 2018 and 2023, or upon certain fundamental corporate changes.
The repurchase price will be equal to 100% of the principal amount of the Notes
being converted, plus accrued and unpaid interest to the repurchase date.
Subject to specified conditions, the Company shall pay the purchase price in
cash. On and after March 5, 2013, the Company may redeem all or part of the
Notes for cash at a redemption price equal to 100% of the principal amount of
the Notes being redeemed, plus accrued and unpaid interest to, the redemption
date. </P>
<TABLE
style="BORDER-COLOR: black; BORDER-COLLAPSE: collapse; FONT-SIZE: 10pt; "
border=0 cellSpacing=0 cellPadding=0 width="100%">
  <TR vAlign=top>
    <TD style="BORDER-TOP: #000000 1px solid" align=right>40 | <FONT
      color=#7e7e7e>P a g e</FONT> </TD>
  </TR>
</TABLE>
<HR style="PAGE-BREAK-AFTER: always" align=center color=black SIZE=5
width="100%" noShade>
<A name=page_41></A><BR>
<TABLE
style="BORDER-COLOR: black; BORDER-COLLAPSE: collapse; FONT-SIZE: 10pt; "
border=0 cellSpacing=0 cellPadding=0 width="100%">
  <TR vAlign=top>
    <TD align=left><FONT size=4><B>Silver Standard Resources Inc.</B> </FONT></TD>
  </TR>
  <TR vAlign=top>
    <TD align=left><FONT size=3>Notes to the Consolidated Financial Statements
      </FONT></TD>
  </TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left><FONT
      size=3>December 31, 2011 and 2010 and January 1, 2010 </FONT></TD>
  </TR>
  <TR vAlign=top>
    <TD align=left>(tabular amounts expressed in thousands of United States dollars
      unless otherwise stated) </TD>
  </TR>
</TABLE>
<BR>
<TABLE
style="BORDER-COLOR: black; BORDER-COLLAPSE: collapse; FONT-SIZE: 10pt; "
border=0 cellSpacing=0 cellPadding=0 width="100%" BCLLIST>

  <TR>
    <TD vAlign=top width="5%"><B>14.</B> </TD>
    <TD>
      <P align=justify><B>CONVERTIBLE NOTES (Cont&#146;d)</B></P></TD></TR>
  <TR>
    <TD width="5%">&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
  <TR>
    <TD width="5%"></TD>
    <TD>
      <P align=justify>The Notes contain an embedded derivative due to the fact
      that if the holder elects to exercise their conversion option, the Company
      has the option to settle in either cash or common shares. At initial
      recognition the value of the Notes was allocated as
  follows:</P></TD></TR></TABLE><BR>
<DIV align=center>
<TABLE
style="BORDER-COLOR: black; BORDER-COLLAPSE: collapse; FONT-SIZE: 10pt; "
border=0 cellSpacing=0 cellPadding=0 width="90%">

  <TR vAlign=top>
    <TD align=left >&nbsp; </TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="15%" align=right nowrap><B>Fair</B> </TD>
    <TD  width="2%" align=left nowrap>&nbsp;</TD>
    <TD  width="1%" align=left nowrap>&nbsp;</TD>
    <TD width="15%" align=right nowrap><B>Transaction</B> </TD>
    <TD  width="2%" align=left nowrap>&nbsp;</TD>
    <TD  width="1%" align=left nowrap>&nbsp;</TD>
    <TD width="15%" align=right nowrap><B>Net</B> </TD>
    <TD  width="2%" align=left>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left >&nbsp; </TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="15%" align=right nowrap><B>Value</B> </TD>
    <TD  width="2%" align=left nowrap>&nbsp;</TD>
    <TD  width="1%" align=left nowrap>&nbsp;</TD>
    <TD width="15%" 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="15%" align=right nowrap><B>Value</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"  width="1%"
    align=right>&nbsp;</TD>
    <TD width="15%" align=right nowrap style="BORDER-BOTTOM: #000000 1px solid">$</TD>
    <TD  width="2%"
    align=right nowrap style="BORDER-BOTTOM: #000000 1px solid">&nbsp;</TD>
    <TD  width="1%"
    align=right nowrap style="BORDER-BOTTOM: #000000 1px solid">&nbsp;</TD>
    <TD width="15%" align=right nowrap style="BORDER-BOTTOM: #000000 1px solid">$</TD>
    <TD  width="2%"
    align=right nowrap style="BORDER-BOTTOM: #000000 1px solid">&nbsp;</TD>
    <TD  width="1%"
    align=right nowrap style="BORDER-BOTTOM: #000000 1px solid">&nbsp;</TD>
    <TD width="15%" align=right nowrap style="BORDER-BOTTOM: #000000 1px solid">$</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="2%"
    align=right>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD bgColor=#e6efff align=left >Fair value of debt </TD>
    <TD bgColor=#e6efff  width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="15%" align=right>99,144 </TD>
    <TD bgColor=#e6efff  width="2%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff  width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="15%" align=right>(3,773</TD>
    <TD bgColor=#e6efff  width="2%" align=left>) </TD>
    <TD bgColor=#e6efff  width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="15%" align=right>95,371 </TD>
    <TD bgColor=#e6efff  width="2%" align=left>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left >Fair
      value of derivative liability </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="1%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="15%"
      align=right>38,856 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="2%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="1%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="15%"
    align=right>(1,473</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="2%"
    align=left>) </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="1%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="15%"
      align=right>37,383 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="2%"
    align=left>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 2px solid" bgColor=#e6efff align=left
    >&nbsp; </TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" bgColor=#e6efff
    width="1%" align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" bgColor=#e6efff width="15%"
    align=right>138,000 </TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" bgColor=#e6efff
    width="2%" align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" bgColor=#e6efff
    width="1%" align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" bgColor=#e6efff width="15%"
    align=right>(5,246</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" bgColor=#e6efff
    width="2%" align=left>) </TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" bgColor=#e6efff
    width="1%" align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" bgColor=#e6efff width="15%"
    align=right>132,754 </TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" bgColor=#e6efff
    width="2%" align=left>&nbsp;</TD></TR></TABLE></DIV>
<P style="MARGIN-LEFT: 5%" align=justify>The debt portion has been designated as
an &#145;other financial liability&#146; so that it is recorded at amortized cost, net of
transaction costs, and is accreted over an expected life of 5 years until March
2013 using the effective interest method. </P>
<P style="MARGIN-LEFT: 5%" align=justify>The movement in the debt portion of the
Notes during the years comprised the following: </P>
<DIV align=center>
<TABLE
style="BORDER-COLOR: black; BORDER-COLLAPSE: collapse; FONT-SIZE: 10pt; "
border=0 cellSpacing=0 cellPadding=0 width="80%">

  <TR vAlign=top>
    <TD align=left >&nbsp; </TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="17%" 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="17%" align=right nowrap><B>December 31,</B> </TD>
    <TD  width="2%" align=left>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left >&nbsp; </TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="17%" 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="17%" 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"  width="1%"
    align=right>&nbsp;</TD>
    <TD width="17%" align=right nowrap style="BORDER-BOTTOM: #000000 1px solid">$</TD>
    <TD  width="2%"
    align=right nowrap style="BORDER-BOTTOM: #000000 1px solid">&nbsp;</TD>
    <TD  width="1%"
    align=right nowrap style="BORDER-BOTTOM: #000000 1px solid">&nbsp;</TD>
    <TD width="17%" align=right nowrap style="BORDER-BOTTOM: #000000 1px solid">$</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="2%"
    align=right>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD bgColor=#e6efff align=left >Balance, beginning of year
</TD>
    <TD bgColor=#e6efff  width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="17%" align=right><B>118,201</B> </TD>
    <TD bgColor=#e6efff  width="2%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff  width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="17%" align=right>109,971 </TD>
    <TD bgColor=#e6efff  width="2%" align=left>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left >Accretion of discount </TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="17%" align=right><B>9,188</B> </TD>
    <TD  width="2%" align=left>&nbsp;</TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="17%" align=right>8,230 </TD>
    <TD  width="2%" align=left>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD bgColor=#e6efff align=left >Interest accrued </TD>
    <TD bgColor=#e6efff  width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="17%" align=right><B>6,210</B> </TD>
    <TD bgColor=#e6efff  width="2%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff  width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="17%" align=right>6,210 </TD>
    <TD bgColor=#e6efff  width="2%" align=left>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left
      >Interest paid </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="1%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="17%"
      align=right><B>(6,210</B></TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="2%"
    align=left><B>)</B> </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="1%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="17%"
    align=right>(6,210</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="2%"
    align=left>) </TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff align=left
    >Balance, end of year </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff
    width="1%" align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff width="17%"
    align=right><B>127,389</B> </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff
    width="2%" align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff
    width="1%" align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff width="17%"
    align=right>118,201 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff
    width="2%" align=left>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left
      >Accrued interest </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="1%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="17%"
      align=right><B>(2,076</B></TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="2%"
    align=left><B>)</B> </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="1%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="17%"
    align=right>(2,076</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="2%"
    align=left>) </TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 2px solid" bgColor=#e6efff align=left
    >Non-current portion of convertible notes </TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" bgColor=#e6efff
    width="1%" align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" bgColor=#e6efff width="17%"
    align=right><B>125,313</B> </TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" bgColor=#e6efff
    width="2%" align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" bgColor=#e6efff
    width="1%" align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" bgColor=#e6efff width="17%"
    align=right>116,125 </TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" bgColor=#e6efff
    width="2%" align=left>&nbsp;</TD></TR></TABLE></DIV>
<P style="MARGIN-LEFT: 5%" align=justify>The derivative liability is recognized
as FVTPL, all transaction costs were expensed upon recognition and the
instrument is re-measured at each reporting period using a binomial tree
approach. For the year ended December 31, 2011, the Company recorded an
unrealized gain on the derivative liability of $20,182,000 (2010 - unrealized
loss of $1,109,000) (note 19). The following key assumptions were used to obtain
the valuation: </P>
<DIV align=center>
<TABLE
style="BORDER-COLOR: black; BORDER-COLLAPSE: collapse; FONT-SIZE: 10pt; "
border=0 cellSpacing=0 cellPadding=0 width="90%">

  <TR vAlign=top>
    <TD align=left>&nbsp; </TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="12%" 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="12%" 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="12%" align=right nowrap><B>January 1,</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>February 27,</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"  width="1%"
    align=left>&nbsp;</TD>
    <TD width="12%"
      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="12%"
      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="12%"
      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="12%"
      align=right nowrap style="BORDER-BOTTOM: #000000 1px solid"><B>2008</B> </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="2%"
    align=left>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD bgColor=#e6efff align=left>Expected dividend yield (%) </TD>
    <TD bgColor=#e6efff  width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="12%" align=right>- </TD>
    <TD bgColor=#e6efff  width="2%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff  width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="12%" align=right>- </TD>
    <TD bgColor=#e6efff  width="2%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff  width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="12%" align=right>- </TD>
    <TD bgColor=#e6efff  width="2%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff  width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="12%" align=right>- </TD>
    <TD bgColor=#e6efff  width="2%" align=left>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left>Average risk-free interest rate (%) </TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="12%" align=right>2.57 </TD>
    <TD  width="2%" align=left>&nbsp;</TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="12%" align=right>4.13 </TD>
    <TD  width="2%" align=left>&nbsp;</TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="12%" align=right>4.58 </TD>
    <TD  width="2%" align=left>&nbsp;</TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="12%" align=right>4.62 </TD>
    <TD  width="2%" align=left>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD bgColor=#e6efff align=left>Expected life (years) </TD>
    <TD bgColor=#e6efff  width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="12%" align=right>16.3 </TD>
    <TD bgColor=#e6efff  width="2%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff  width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="12%" align=right>17.3 </TD>
    <TD bgColor=#e6efff  width="2%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff  width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="12%" align=right>18.3 </TD>
    <TD bgColor=#e6efff  width="2%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff  width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="12%" align=right>20.0 </TD>
    <TD bgColor=#e6efff  width="2%" align=left>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left>Expected volatility (%) </TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="12%" align=right>65.0 </TD>
    <TD  width="2%" align=left>&nbsp;</TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="12%" align=right>57.5 </TD>
    <TD  width="2%" align=left>&nbsp;</TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="12%" align=right>60.0 </TD>
    <TD  width="2%" align=left>&nbsp;</TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="12%" align=right>60.0 </TD>
    <TD  width="2%" align=left>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 2px solid" bgColor=#e6efff
      align=left>Implied yield on straight debt (%) </TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" bgColor=#e6efff
    width="1%" align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" bgColor=#e6efff width="12%"
    align=right>7.07 </TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" bgColor=#e6efff
    width="2%" align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" bgColor=#e6efff
    width="1%" align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" bgColor=#e6efff width="12%"
    align=right>11.39 </TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" bgColor=#e6efff
    width="2%" align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" bgColor=#e6efff
    width="1%" align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" bgColor=#e6efff width="12%"
    align=right>12.60 </TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" bgColor=#e6efff
    width="2%" align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" bgColor=#e6efff
    width="1%" align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" bgColor=#e6efff width="12%"
    align=right>11.85 </TD>
<TD style="BORDER-BOTTOM: #000000 2px solid" bgColor=#e6efff
    width="2%" align=left>&nbsp;</TD></TR></TABLE></DIV><BR>
<TABLE
style="BORDER-COLOR: black; BORDER-COLLAPSE: collapse; FONT-SIZE: 10pt; "
border=0 cellSpacing=0 cellPadding=0 width="100%">
  <TR vAlign=top>
    <TD style="BORDER-TOP: #000000 1px solid" align=right>41 | <FONT
      color=#7e7e7e>P a g e</FONT> </TD>
  </TR>
</TABLE>
<HR style="PAGE-BREAK-AFTER: always" align=center color=black SIZE=5
width="100%" noShade>
<A name=page_42></A><BR>
<TABLE
style="BORDER-COLOR: black; BORDER-COLLAPSE: collapse; FONT-SIZE: 10pt; "
border=0 cellSpacing=0 cellPadding=0 width="100%">
  <TR vAlign=top>
    <TD align=left><FONT size=4><B>Silver Standard Resources Inc.</B> </FONT></TD>
  </TR>
  <TR vAlign=top>
    <TD align=left><FONT size=3>Notes to the Consolidated Financial Statements
      </FONT></TD>
  </TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left><FONT
      size=3>December 31, 2011 and 2010 and January 1, 2010 </FONT></TD>
  </TR>
  <TR vAlign=top>
    <TD align=left>(tabular amounts expressed in thousands of United States dollars
      unless otherwise stated) </TD>
  </TR>
</TABLE>
<BR>
<TABLE
style="BORDER-COLOR: black; BORDER-COLLAPSE: collapse; FONT-SIZE: 10pt; "
border=0 cellSpacing=0 cellPadding=0 width="100%" BCLLIST>

  <TR>
    <TD vAlign=top width="5%"><B>15.</B> </TD>
    <TD>
      <P align=justify><B>SHARE CAPITAL AND SHARE-BASED
  PAYMENTS</B></P></TD></TR></TABLE>
<P style="MARGIN-LEFT: 5%" align=justify><B>a)</B><B> </B><B>Authorized capital
</B></P>
<P style="MARGIN-LEFT: 5%" align=justify>The Company has unlimited authorized
common shares with no par value. </P>
<P style="MARGIN-LEFT: 5%" align=justify><B>b)</B><B> </B><B>Public share
offering </B></P>
<P style="MARGIN-LEFT: 5%" align=justify>In February 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 $4,821,000, net proceeds were $109,568,000.
The Company also recognized an income tax recovery of $5,109,000 relating to
share issuance costs. </P>
<P style="MARGIN-LEFT: 5%" align=justify><B>c)</B><B> </B><B>Stock options
</B></P>
<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 subsequently 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. The options can be granted for a maximum
term of 10 years with vesting provisions determined by the Board of Directors.
Currently, the vesting periods range up to three years, and expire after 7
years. New shares from treasury are issued on the exercise of stock options.</P>
<P style="MARGIN-LEFT: 5%" align=justify>The changes in stock options issued
during the year ended December 31, 2011 and the year ended December 31, 2010 was
as follows<B>:</B> </P>
<TABLE
style="BORDER-COLOR: black; BORDER-COLLAPSE: collapse; FONT-SIZE: 10pt; "
border=0 cellSpacing=0 cellPadding=0 width="100%">

  <TR vAlign=top>
    <TD width="5%"  >&nbsp;</TD>
    <TD align=left>&nbsp; </TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="12%" align=left>&nbsp; </TD>
    <TD  width="2%" align=left>&nbsp;</TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="12%" align=right><B>December 31</B> </TD>
    <TD  width="2%" align=left>&nbsp;</TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="12%" align=left>&nbsp; </TD>
    <TD  width="2%" align=left>&nbsp;</TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="12%" align=right><B>December 31</B> </TD>
    <TD  width="2%" align=left>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD width="5%" >&nbsp;</TD>
    <TD align=left>&nbsp; </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="1%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="12%" align=left>&nbsp;
    </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="2%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="1%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="12%"
      align=right><B>2011</B> </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="2%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="1%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="12%" align=left>&nbsp;
    </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="2%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="1%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="12%"
      align=right><B>2010</B> </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="2%"
    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 width="12%" align=right><B>Number</B> </TD>
    <TD  width="2%" align=left>&nbsp;</TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="12%" align=right><B>Weighted</B> </TD>
    <TD  width="2%" align=left>&nbsp;</TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="12%" align=right><B>Number</B> </TD>
    <TD  width="2%" align=left>&nbsp;</TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="12%" align=right><B>Weighted</B> </TD>
    <TD  width="2%" 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 width="12%" align=right><B>of stock</B> </TD>
    <TD  width="2%" align=left>&nbsp;</TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="12%" align=right><B>average</B> </TD>
    <TD  width="2%" align=left>&nbsp;</TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="12%" align=right><B>of stock</B> </TD>
    <TD  width="2%" align=left>&nbsp;</TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="12%" align=right><B>average</B> </TD>
    <TD  width="2%" 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 width="12%" align=right><B>options</B> </TD>
    <TD  width="2%" align=left>&nbsp;</TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="12%" align=right><B>exercise</B> </TD>
    <TD  width="2%" align=left>&nbsp;</TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="12%" align=right><B>options</B> </TD>
    <TD  width="2%" align=left>&nbsp;</TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="12%" align=right><B>exercise</B> </TD>
    <TD  width="2%" 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 width="12%" align=left>&nbsp; </TD>
    <TD  width="2%" align=left>&nbsp;</TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="12%" align=right><B>price</B> </TD>
    <TD  width="2%" align=left>&nbsp;</TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="12%" align=left>&nbsp; </TD>
    <TD  width="2%" align=left>&nbsp;</TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="12%" align=right><B>price</B> </TD>
    <TD  width="2%" 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 style="BORDER-BOTTOM: #000000 1px solid"  width="1%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="12%" align=left>&nbsp;
    </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="2%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="1%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="12%"
      align=right><B>(C$/option)</B> </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="2%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="1%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="12%" align=left>&nbsp;
    </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="2%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="1%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="12%"
      align=right><B>(C$/option)</B> </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="2%"
    align=left>&nbsp;</TD></TR>
  <TR>
    <TD width="5%" >&nbsp;</TD>
    <TD>&nbsp; </TD>
    <TD  width="1%">&nbsp;</TD>
    <TD width="12%">&nbsp; </TD>
    <TD  width="2%">&nbsp;</TD>
    <TD  width="1%">&nbsp;</TD>
    <TD width="12%">&nbsp; </TD>
    <TD  width="2%">&nbsp;</TD>
    <TD  width="1%">&nbsp;</TD>
    <TD width="12%">&nbsp; </TD>
    <TD  width="2%">&nbsp;</TD>
    <TD  width="1%">&nbsp;</TD>
    <TD width="12%">&nbsp; </TD>
    <TD  width="2%">&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD width="5%" >&nbsp;</TD>
    <TD bgColor=#e6efff align=left>Outstanding, beginning of period </TD>
    <TD bgColor=#e6efff  width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="12%" align=right>4,703,870 </TD>
    <TD bgColor=#e6efff  width="2%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff  width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="12%" align=right>27.18 </TD>
    <TD bgColor=#e6efff  width="2%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff  width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="12%" align=right>5,271,118 </TD>
    <TD bgColor=#e6efff  width="2%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff  width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="12%" align=right>26.40 </TD>
    <TD bgColor=#e6efff  width="2%" align=left>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD width="5%" >&nbsp;</TD>
    <TD align=left>&nbsp; &nbsp; &nbsp; &nbsp;Granted </TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="12%" align=right>518,500 </TD>
    <TD  width="2%" align=left>&nbsp;</TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="12%" align=right>24.79 </TD>
    <TD  width="2%" align=left>&nbsp;</TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="12%" align=right>605,000 </TD>
    <TD  width="2%" align=left>&nbsp;</TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="12%" align=right>17.82 </TD>
    <TD  width="2%" align=left>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD width="5%" >&nbsp;</TD>
    <TD bgColor=#e6efff align=left>&nbsp; &nbsp; &nbsp; &nbsp;Exercised </TD>
    <TD bgColor=#e6efff  width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="12%" align=right>(1,028,391</TD>
    <TD bgColor=#e6efff  width="2%" align=left>) </TD>
    <TD bgColor=#e6efff  width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="12%" align=right>(18.97</TD>
    <TD bgColor=#e6efff  width="2%" align=left>) </TD>
    <TD bgColor=#e6efff  width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="12%" align=right>(971,578</TD>
    <TD bgColor=#e6efff  width="2%" align=left>) </TD>
    <TD bgColor=#e6efff  width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="12%" align=right>(17.00</TD>
    <TD bgColor=#e6efff  width="2%" align=left>) </TD></TR>
  <TR vAlign=top>
    <TD width="5%" >&nbsp;</TD>
    <TD align=left>&nbsp; &nbsp; &nbsp; &nbsp;Expired </TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="12%" align=right>(787,500</TD>
    <TD  width="2%" align=left>) </TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="12%" align=right>(34.48</TD>
    <TD  width="2%" align=left>) </TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="12%" align=right>- </TD>
    <TD  width="2%" align=left>&nbsp;</TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="12%" align=right>- </TD>
    <TD  width="2%" align=left>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD width="5%" >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff
      align=left>&nbsp; &nbsp; &nbsp; &nbsp;Forfeited </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff
    width="1%" align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff width="12%"
    align=right>(1,528,107</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff
    width="2%" align=left>) </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff
    width="1%" align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff width="12%"
    align=right>(32.21</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff
    width="2%" align=left>) </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff
    width="1%" align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff width="12%"
    align=right>(200,670</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff
    width="2%" align=left>) </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff
    width="1%" align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff width="12%"
    align=right>(27.72</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff
    width="2%" align=left>) </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>
    <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" bgColor=#e6efff
      align=left>Outstanding, end of period </TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" bgColor=#e6efff
    width="1%" align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" bgColor=#e6efff width="12%"
    align=right>1,878,372 </TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" bgColor=#e6efff
    width="2%" align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" bgColor=#e6efff
    width="1%" align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" bgColor=#e6efff width="12%"
    align=right>23.86 </TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" bgColor=#e6efff
    width="2%" align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" bgColor=#e6efff
    width="1%" align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" bgColor=#e6efff width="12%"
    align=right>4,703,870 </TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" bgColor=#e6efff
    width="2%" align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" bgColor=#e6efff
    width="1%" align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" bgColor=#e6efff width="12%"
    align=right>27.18 </TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" bgColor=#e6efff
    width="2%" align=left>&nbsp;</TD></TR></TABLE>
<P style="MARGIN-LEFT: 5%" align=justify>During the year ended December 31,
2011, the Company granted 518,500 (December 31, 2010 &#150; 605,000) options to
officers, employees, directors and other eligible persons at exercise prices
ranging from C$15.64 to C$28.78 (December 31, 2010 &#150; C$17.38 to C$26.55) and
expiry dates ranging from January 27, 2018 to November 17, 2018.</P>
<TABLE
style="BORDER-COLOR: black; BORDER-COLLAPSE: collapse; FONT-SIZE: 10pt; "
border=0 cellSpacing=0 cellPadding=0 width="100%">
  <TR vAlign=top>
    <TD style="BORDER-TOP: #000000 1px solid" align=right>42 | <FONT
      color=#7e7e7e>P a g e</FONT> </TD>
  </TR>
</TABLE>
<HR style="PAGE-BREAK-AFTER: always" align=center color=black SIZE=5
width="100%" noShade>
<A name=page_43></A><BR>
<TABLE
style="BORDER-COLOR: black; BORDER-COLLAPSE: collapse; FONT-SIZE: 10pt; "
border=0 cellSpacing=0 cellPadding=0 width="100%">
  <TR vAlign=top>
    <TD align=left><FONT size=4><B>Silver Standard Resources Inc.</B> </FONT></TD>
  </TR>
  <TR vAlign=top>
    <TD align=left><FONT size=3>Notes to the Consolidated Financial Statements
      </FONT></TD>
  </TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left><FONT
      size=3>December 31, 2011 and 2010 and January 1, 2010 </FONT></TD>
  </TR>
  <TR vAlign=top>
    <TD align=left>(tabular amounts expressed in thousands of United States dollars
      unless otherwise stated) </TD>
  </TR>
</TABLE>
<BR>
<TABLE
style="BORDER-COLOR: black; BORDER-COLLAPSE: collapse; FONT-SIZE: 10pt; "
border=0 cellSpacing=0 cellPadding=0 width="100%" BCLLIST>

  <TR>
    <TD vAlign=top width="5%"><B>15.</B> </TD>
    <TD>
      <P align=justify><B>SHARE CAPITAL AND SHARE-BASED PAYMENTS
    (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>As of December 31, 2011, incentive stock options
      constitute 2.3% (December 31, 2010 &#150; 5.9%) of issued and outstanding
      common capital. The aggregate intrinsic values of vested share options
      (the market value less the exercise value) at December 31, 2011 and
      December 31, 2010 were $107,000 and $20,242,000, respectively.</P></TD></TR>
  <TR>
    <TD width="5%">&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
  <TR>
    <TD width="5%"></TD>
    <TD>
      <P align=justify>The weighted average fair value of stock options granted
      during the year ended December 31, 2011 and year ended December 31, 2010
      were estimated to be C$11.28 and C$9.00 per stock option, respectively, at
      the grant date using the Black-Scholes option pricing model, using the
      following assumptions:</P></TD></TR></TABLE><BR>
<DIV align=center>
<TABLE
style="BORDER-COLOR: black; BORDER-COLLAPSE: collapse; FONT-SIZE: 10pt; "
border=0 cellSpacing=0 cellPadding=0 width="80%">

  <TR vAlign=top>
    <TD align=left >&nbsp; </TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="17%" align=right><B>Year ended</B> </TD>
    <TD  width="2%" align=left>&nbsp;</TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="17%" align=right><B>Year ended</B> </TD>
    <TD  width="2%" align=left>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left >&nbsp; </TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="17%" align=right><B>December 31</B> </TD>
    <TD  width="2%" align=left>&nbsp;</TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="17%" align=right><B>December 31</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"  width="1%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="17%"
      align=right><B>2011</B> </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="2%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="1%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="17%"
      align=right><B>2010</B> </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="2%"
    align=left>&nbsp;</TD>
  </TR>
  <TR>
    <TD >&nbsp; </TD>
    <TD  width="1%">&nbsp;</TD>
    <TD width="17%">&nbsp; </TD>
    <TD  width="2%">&nbsp;</TD>
    <TD  width="1%">&nbsp;</TD>
    <TD width="17%">&nbsp; </TD>
    <TD  width="2%">&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD bgColor=#e6efff align=left >Expected dividend yield (%)
    </TD>
    <TD bgColor=#e6efff  width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="17%" align=right>- </TD>
    <TD bgColor=#e6efff  width="2%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff  width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="17%" align=right>- </TD>
    <TD bgColor=#e6efff  width="2%" align=left>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left >Average risk-free interest rate (%) </TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="17%" align=right>2.20 </TD>
    <TD  width="2%" align=left>&nbsp;</TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="17%" align=right>2.90 </TD>
    <TD  width="2%" align=left>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD bgColor=#e6efff align=left >Expected life (years) </TD>
    <TD bgColor=#e6efff  width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="17%" align=right>4.8 </TD>
    <TD bgColor=#e6efff  width="2%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff  width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="17%" align=right>6.5 </TD>
    <TD bgColor=#e6efff  width="2%" align=left>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left >Expected volatility (%) </TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="17%" align=right>55.0 </TD>
    <TD  width="2%" align=left>&nbsp;</TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="17%" align=right>53.0 </TD>
    <TD  width="2%" align=left>&nbsp;</TD></TR></TABLE></DIV>
<P style="MARGIN-LEFT: 5%" align=justify>Option pricing models require the input
of highly subjective assumptions. The expected life of the options considered
such factors as the average length of time similar option grants in the past
have remained outstanding prior to exercise and the vesting period of the
grants. Volatility was estimated based upon historical price observations over
the expected term. Changes in the subjective input assumptions can materially
affect the estimated fair value of the options. </P>
<P style="MARGIN-LEFT: 5%" align=justify>The weighted average share price, at
the date of grant, of stock options granted in the period was C$24.02 (2010 -
C$17.36) . </P>
<P style="MARGIN-LEFT: 5%" align=justify>The weighted average share price at the
date of the exercise of stock options was C$26.60 (2010 - C$24.74) . </P>
<P style="MARGIN-LEFT: 5%" align=justify>The following table summarizes
information about stock options outstanding and exercisable at December 31,
2011: </P>
<DIV align=center>
  <TABLE
style="BORDER-COLOR: black; BORDER-COLLAPSE: collapse; FONT-SIZE: 10pt; "
border=0 cellSpacing=0 cellPadding=0 width="90%">
    <TR vAlign=top>
      <TD align=left>&nbsp;</TD>
      <TD style="BORDER-BOTTOM: #000000 1px solid"  width="1%"
    align=left>&nbsp;</TD>
      <TD colspan="4"
      align=right nowrap style="BORDER-BOTTOM: #000000 1px solid"><B>Stock options outstanding</B>      </TD>
      <TD  width="2%"
    align=right nowrap style="BORDER-BOTTOM: #000000 1px solid">&nbsp;</TD>
      <TD  width="1%"
    align=left nowrap style="BORDER-BOTTOM: #000000 1px solid">&nbsp;</TD>
      <TD colspan="4"
      align=right nowrap style="BORDER-BOTTOM: #000000 1px solid"><B>Stock options exercisable</B> </TD>
      <TD style="BORDER-BOTTOM: #000000 1px solid"  width="2%"
    align=right>&nbsp;</TD>
    </TR>
    <TR vAlign=top>
      <TD align=left>&nbsp;</TD>
      <TD  width="1%" align=left>&nbsp;</TD>
      <TD width="17%" align=left nowrap>&nbsp; </TD>
      <TD  width="2%" align=left nowrap>&nbsp;</TD>
      <TD  width="1%" align=left nowrap>&nbsp;</TD>
      <TD width="17%" align=right nowrap><B>Weighted</B> </TD>
      <TD  width="2%" align=left nowrap>&nbsp;</TD>
      <TD  width="1%" align=left nowrap>&nbsp;</TD>
      <TD width="17%" align=left nowrap>&nbsp; </TD>
      <TD  width="2%" align=left nowrap>&nbsp;</TD>
      <TD  width="1%" align=left nowrap>&nbsp;</TD>
      <TD width="17%" align=right nowrap><B>Weighted</B> </TD>
      <TD  width="2%" align=left>&nbsp;</TD>
    </TR>
    <TR vAlign=top>
      <TD align=left>&nbsp;</TD>
      <TD  width="1%" align=left>&nbsp;</TD>
      <TD width="17%" align=left nowrap>&nbsp; </TD>
      <TD  width="2%" align=left nowrap>&nbsp;</TD>
      <TD  width="1%" align=left nowrap>&nbsp;</TD>
      <TD width="17%" align=right nowrap><B>average</B> </TD>
      <TD  width="2%" align=left nowrap>&nbsp;</TD>
      <TD  width="1%" align=left nowrap>&nbsp;</TD>
      <TD width="17%" align=left nowrap>&nbsp; </TD>
      <TD  width="2%" align=left nowrap>&nbsp;</TD>
      <TD  width="1%" align=left nowrap>&nbsp;</TD>
      <TD width="17%" align=right nowrap><B>average</B> </TD>
      <TD  width="2%" align=left>&nbsp;</TD>
    </TR>
    <TR vAlign=top>
      <TD align=left>&nbsp;</TD>
      <TD  width="1%" align=left>&nbsp;</TD>
      <TD width="17%" align=right nowrap><B>Stock options</B> </TD>
      <TD  width="2%" align=left nowrap>&nbsp;</TD>
      <TD  width="1%" align=left nowrap>&nbsp;</TD>
      <TD width="17%" align=right nowrap><B>remaining</B> </TD>
      <TD  width="2%" align=left nowrap>&nbsp;</TD>
      <TD  width="1%" align=left nowrap>&nbsp;</TD>
      <TD width="17%" align=right nowrap><B>Stock options</B> </TD>
      <TD  width="2%" align=left nowrap>&nbsp;</TD>
      <TD  width="1%" align=left nowrap>&nbsp;</TD>
      <TD width="17%" align=right nowrap><B>exercise</B> </TD>
      <TD  width="2%" align=left>&nbsp;</TD>
    </TR>
    <TR vAlign=top>
      <TD align=left>&nbsp;</TD>
      <TD  width="1%" align=left>&nbsp;</TD>
      <TD width="17%" align=right nowrap><B>outstanding </B></TD>
      <TD  width="2%" align=left nowrap>&nbsp;</TD>
      <TD  width="1%" align=left nowrap>&nbsp;</TD>
      <TD  width="17%" align=right nowrap><STRONG>contractual life</STRONG> </TD>
      <TD  width="2%" align=left nowrap>&nbsp;</TD>
      <TD  width="1%" align=left nowrap>&nbsp;</TD>
      <TD width="17%" align=right nowrap><B>exercisable</B> </TD>
      <TD  width="2%" align=left nowrap>&nbsp;</TD>
      <TD  width="1%" align=left nowrap>&nbsp;</TD>
      <TD width="17%" align=right nowrap><B>price</B> </TD>
      <TD  width="2%" align=left>&nbsp;</TD>
    </TR>
    <TR vAlign=top>
      <TD style="BORDER-BOTTOM: #000000 1px solid" align=left><B>Exercise prices
        (C$)</B> </TD>
      <TD style="BORDER-BOTTOM: #000000 1px solid"  width="1%"
    align=left>&nbsp;</TD>
      <TD width="17%" 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="17%"
      align=right nowrap style="BORDER-BOTTOM: #000000 1px solid"><B>(years)</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="17%" 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="17%"
      align=right nowrap style="BORDER-BOTTOM: #000000 1px solid"><B>(C$/option)</B> </TD>
      <TD style="BORDER-BOTTOM: #000000 1px solid"  width="2%"
    align=left>&nbsp;</TD>
    </TR>
    <TR>
      <TD>&nbsp;</TD>
      <TD  width="1%">&nbsp;</TD>
      <TD width="17%">&nbsp; </TD>
      <TD  width="2%">&nbsp;</TD>
      <TD  width="1%">&nbsp;</TD>
      <TD width="17%">&nbsp; </TD>
      <TD  width="2%">&nbsp;</TD>
      <TD  width="1%">&nbsp;</TD>
      <TD width="17%">&nbsp; </TD>
      <TD  width="2%">&nbsp;</TD>
      <TD  width="1%">&nbsp;</TD>
      <TD width="17%">&nbsp; </TD>
      <TD  width="2%">&nbsp;</TD>
    </TR>
    <TR vAlign=top>
      <TD bgColor=#e6efff align=left>11.50 &#150; 17.38 </TD>
      <TD bgColor=#e6efff  width="1%" align=left>&nbsp;</TD>
      <TD bgColor=#e6efff width="17%" align=right>711,136 </TD>
      <TD bgColor=#e6efff  width="2%" align=left>&nbsp;</TD>
      <TD bgColor=#e6efff  width="1%" align=left>&nbsp;</TD>
      <TD bgColor=#e6efff width="17%" align=right>8.6 </TD>
      <TD bgColor=#e6efff  width="2%" align=left>&nbsp;</TD>
      <TD bgColor=#e6efff  width="1%" align=left>&nbsp;</TD>
      <TD bgColor=#e6efff width="17%" align=right>271,135 </TD>
      <TD bgColor=#e6efff  width="2%" align=left>&nbsp;</TD>
      <TD bgColor=#e6efff  width="1%" align=left>&nbsp;</TD>
      <TD bgColor=#e6efff width="17%" align=right>15.19 </TD>
      <TD bgColor=#e6efff  width="2%" align=left>&nbsp;</TD>
    </TR>
    <TR vAlign=top>
      <TD align=left>21.07 &#150; 24.61 </TD>
      <TD  width="1%" align=left>&nbsp;</TD>
      <TD width="17%" align=right>461,736 </TD>
      <TD  width="2%" align=left>&nbsp;</TD>
      <TD  width="1%" align=left>&nbsp;</TD>
      <TD width="17%" align=right>7.4 </TD>
      <TD  width="2%" align=left>&nbsp;</TD>
      <TD  width="1%" align=left>&nbsp;</TD>
      <TD width="17%" align=right>230,493 </TD>
      <TD  width="2%" align=left>&nbsp;</TD>
      <TD  width="1%" align=left>&nbsp;</TD>
      <TD width="17%" align=right>23.99 </TD>
      <TD  width="2%" align=left>&nbsp;</TD>
    </TR>
    <TR vAlign=top>
      <TD bgColor=#e6efff align=left>26.23 &#150; 29.02 </TD>
      <TD bgColor=#e6efff  width="1%" align=left>&nbsp;</TD>
      <TD bgColor=#e6efff width="17%" align=right>432,500 </TD>
      <TD bgColor=#e6efff  width="2%" align=left>&nbsp;</TD>
      <TD bgColor=#e6efff  width="1%" align=left>&nbsp;</TD>
      <TD bgColor=#e6efff width="17%" align=right>4.7 </TD>
      <TD bgColor=#e6efff  width="2%" align=left>&nbsp;</TD>
      <TD bgColor=#e6efff  width="1%" align=left>&nbsp;</TD>
      <TD bgColor=#e6efff width="17%" align=right>153,333 </TD>
      <TD bgColor=#e6efff  width="2%" align=left>&nbsp;</TD>
      <TD bgColor=#e6efff  width="1%" align=left>&nbsp;</TD>
      <TD bgColor=#e6efff width="17%" align=right>28.97 </TD>
      <TD bgColor=#e6efff  width="2%" align=left>&nbsp;</TD>
    </TR>
    <TR vAlign=top>
      <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>34.71 &#150; 40.62
      </TD>
      <TD style="BORDER-BOTTOM: #000000 1px solid"  width="1%"
    align=left>&nbsp;</TD>
      <TD style="BORDER-BOTTOM: #000000 1px solid" width="17%"
      align=right>273,000 </TD>
      <TD style="BORDER-BOTTOM: #000000 1px solid"  width="2%"
    align=left>&nbsp;</TD>
      <TD style="BORDER-BOTTOM: #000000 1px solid"  width="1%"
    align=left>&nbsp;</TD>
      <TD style="BORDER-BOTTOM: #000000 1px solid" width="17%" align=right>0.8
      </TD>
      <TD style="BORDER-BOTTOM: #000000 1px solid"  width="2%"
    align=left>&nbsp;</TD>
      <TD style="BORDER-BOTTOM: #000000 1px solid"  width="1%"
    align=left>&nbsp;</TD>
      <TD style="BORDER-BOTTOM: #000000 1px solid" width="17%"
      align=right>273,000 </TD>
      <TD style="BORDER-BOTTOM: #000000 1px solid"  width="2%"
    align=left>&nbsp;</TD>
      <TD style="BORDER-BOTTOM: #000000 1px solid"  width="1%"
    align=left>&nbsp;</TD>
      <TD style="BORDER-BOTTOM: #000000 1px solid" width="17%" align=right>35.97
      </TD>
      <TD style="BORDER-BOTTOM: #000000 1px solid"  width="2%"
    align=left>&nbsp;</TD>
    </TR>
    <TR vAlign=top>
      <TD style="BORDER-BOTTOM: #000000 2px solid" bgColor=#e6efff
    align=left>&nbsp;</TD>
      <TD style="BORDER-BOTTOM: #000000 2px solid" bgColor=#e6efff
    width="1%" align=left>&nbsp;</TD>
      <TD style="BORDER-BOTTOM: #000000 2px solid" bgColor=#e6efff width="17%"
    align=right>1,878,372 </TD>
      <TD style="BORDER-BOTTOM: #000000 2px solid" bgColor=#e6efff
    width="2%" align=left>&nbsp;</TD>
      <TD style="BORDER-BOTTOM: #000000 2px solid" bgColor=#e6efff
    width="1%" align=left>&nbsp;</TD>
      <TD style="BORDER-BOTTOM: #000000 2px solid" bgColor=#e6efff width="17%"
    align=right>6.3 </TD>
      <TD style="BORDER-BOTTOM: #000000 2px solid" bgColor=#e6efff
    width="2%" align=left>&nbsp;</TD>
      <TD style="BORDER-BOTTOM: #000000 2px solid" bgColor=#e6efff
    width="1%" align=left>&nbsp;</TD>
      <TD style="BORDER-BOTTOM: #000000 2px solid" bgColor=#e6efff width="17%"
    align=right>927,961 </TD>
      <TD style="BORDER-BOTTOM: #000000 2px solid" bgColor=#e6efff
    width="2%" align=left>&nbsp;</TD>
      <TD style="BORDER-BOTTOM: #000000 2px solid" bgColor=#e6efff
    width="1%" align=left>&nbsp;</TD>
      <TD style="BORDER-BOTTOM: #000000 2px solid" bgColor=#e6efff width="17%"
    align=right>25.76 </TD>
      <TD style="BORDER-BOTTOM: #000000 2px solid" bgColor=#e6efff
    width="2%" align=left>&nbsp;</TD>
    </TR>
  </TABLE>
</DIV><BR>
<TABLE
style="BORDER-COLOR: black; BORDER-COLLAPSE: collapse; FONT-SIZE: 10pt; "
border=0 cellSpacing=0 cellPadding=0 width="100%">
  <TR vAlign=top>
    <TD style="BORDER-TOP: #000000 1px solid" align=right>43 | <FONT
      color=#7e7e7e>P a g e</FONT> </TD>
  </TR>
</TABLE>
<HR style="PAGE-BREAK-AFTER: always" align=center color=black SIZE=5
width="100%" noShade>
<A name=page_44></A><BR>
<TABLE
style="BORDER-COLOR: black; BORDER-COLLAPSE: collapse; FONT-SIZE: 10pt; "
border=0 cellSpacing=0 cellPadding=0 width="100%">
  <TR vAlign=top>
    <TD align=left><FONT size=4><B>Silver Standard Resources Inc.</B> </FONT></TD>
  </TR>
  <TR vAlign=top>
    <TD align=left><FONT size=3>Notes to the Consolidated Financial Statements
      </FONT></TD>
  </TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left><FONT
      size=3>December 31, 2011 and 2010 and January 1, 2010 </FONT></TD>
  </TR>
  <TR vAlign=top>
    <TD align=left>(tabular amounts expressed in thousands of United States dollars
      unless otherwise stated) </TD>
  </TR>
</TABLE>
<BR>
<TABLE
style="BORDER-COLOR: black; BORDER-COLLAPSE: collapse; FONT-SIZE: 10pt; "
border=0 cellSpacing=0 cellPadding=0 width="100%" BCLLIST>

  <TR>
    <TD vAlign=top width="5%"><B>15.</B> </TD>
    <TD>
      <P align=justify><B>SHARE CAPITAL AND SHARE-BASED PAYMENTS
    (Cont&#146;d)</B></P></TD></TR></TABLE>
<P style="MARGIN-LEFT: 5%" align=justify><B>d)</B><B> </B><B>Deferred Share
Units (&#147;DSUs&#148;) </B></P>
<P style="MARGIN-LEFT: 5%" align=justify>Non-executive directors may elect to
receive all or a portion of their annual compensation in the form of DSUs which
are linked to the value of the Company&#146;s common shares. DSUs are issued on a
quarterly basis under the terms of the DSU Plan, at the market value of the
Company&#146;s common shares at the date of grant. The DSUs vest immediately and are
redeemable in cash on the date the director ceases to be a director of the
Company.</P>
<DIV align=center>
<TABLE
style="BORDER-COLOR: black; BORDER-COLLAPSE: collapse; FONT-SIZE: 10pt; "
border=0 cellSpacing=0 cellPadding=0 width="80%">

  <TR vAlign=top>
    <TD align=left>&nbsp; </TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="12%" align=left nowrap>&nbsp; </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  width="2%" align=left nowrap>&nbsp;</TD>
    <TD  width="1%" align=left nowrap>&nbsp;</TD>
    <TD width="12%" align=left nowrap>&nbsp; </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  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"  width="1%"
    align=left>&nbsp;</TD>
    <TD width="12%" 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="12%"
      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="12%" 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="12%"
      align=right nowrap style="BORDER-BOTTOM: #000000 1px solid"><B>2010</B> </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="2%"
    align=left>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left>&nbsp; </TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="12%" align=right nowrap><B>Number</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>Fair</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>Number</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>Fair</B> </TD>
    <TD  width="2%" align=left>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left>&nbsp; </TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="12%" align=right nowrap><B>of DSUs</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>value</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>of DSUs</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>value</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"  width="1%"
    align=left>&nbsp;</TD>
    <TD width="12%" 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=right nowrap style="BORDER-BOTTOM: #000000 1px solid">&nbsp;</TD>
    <TD width="12%"
    align=right nowrap style="BORDER-BOTTOM: #000000 1px solid">$&nbsp;</TD>
    <TD  width="2%"
    align=right nowrap style="BORDER-BOTTOM: #000000 1px solid">&nbsp;</TD>
    <TD  width="1%"
    align=left nowrap style="BORDER-BOTTOM: #000000 1px solid">&nbsp;</TD>
    <TD width="12%" align=left nowrap style="BORDER-BOTTOM: #000000 1px solid">&nbsp;    </TD>
    <TD  width="2%"
    align=left nowrap style="BORDER-BOTTOM: #000000 1px solid">&nbsp;</TD>
    <TD  width="1%"
    align=right nowrap style="BORDER-BOTTOM: #000000 1px solid">&nbsp;</TD>
    <TD width="12%"
    align=right nowrap style="BORDER-BOTTOM: #000000 1px solid">$&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="2%"
    align=right>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD bgColor=#e6efff align=left>Outstanding, beginning of year </TD>
    <TD bgColor=#e6efff  width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="12%" align=right>90,361 </TD>
    <TD bgColor=#e6efff  width="2%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff  width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="12%" align=right>2,527 </TD>
    <TD bgColor=#e6efff  width="2%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff  width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="12%" align=right>59,704 </TD>
    <TD bgColor=#e6efff  width="2%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff  width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="12%" align=right>1,312 </TD>
    <TD bgColor=#e6efff  width="2%" align=left>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left>&nbsp; &nbsp; &nbsp; &nbsp;Granted </TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="12%" align=right>21,151 </TD>
    <TD  width="2%" align=left>&nbsp;</TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="12%" align=right>555 </TD>
    <TD  width="2%" align=left>&nbsp;</TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="12%" align=right>39,398 </TD>
    <TD  width="2%" align=left>&nbsp;</TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="12%" align=right>772 </TD>
    <TD  width="2%" align=left>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD bgColor=#e6efff align=left>&nbsp; &nbsp; &nbsp; &nbsp;Redeemed </TD>
    <TD bgColor=#e6efff  width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="12%" align=right>(13,223</TD>
    <TD bgColor=#e6efff  width="2%" align=left>) </TD>
    <TD bgColor=#e6efff  width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="12%" align=right>(342</TD>
    <TD bgColor=#e6efff  width="2%" align=left>) </TD>
    <TD bgColor=#e6efff  width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="12%" align=right>(8,741</TD>
    <TD bgColor=#e6efff  width="2%" align=left>) </TD>
    <TD bgColor=#e6efff  width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="12%" align=right>(159</TD>
    <TD bgColor=#e6efff  width="2%" align=left>) </TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>&nbsp; &nbsp;
      &nbsp; &nbsp;Fair value remeasurement </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="1%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="12%" align=right>- </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="2%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="1%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="12%"
    align=right>(1,377</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="2%"
    align=left>) </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="1%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="12%" align=right>- </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="2%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="1%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="12%" align=right>602
    </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="2%"
    align=left>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 2px solid" bgColor=#e6efff
      align=left>Outstanding, end of year </TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" bgColor=#e6efff
    width="1%" align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" bgColor=#e6efff width="12%"
    align=right>98,289 </TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" bgColor=#e6efff
    width="2%" align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" bgColor=#e6efff
    width="1%" align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" bgColor=#e6efff width="12%"
    align=right>1,363 </TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" bgColor=#e6efff
    width="2%" align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" bgColor=#e6efff
    width="1%" align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" bgColor=#e6efff width="12%"
    align=right>90,361 </TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" bgColor=#e6efff
    width="2%" align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" bgColor=#e6efff
    width="1%" align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" bgColor=#e6efff width="12%"
    align=right>2,527 </TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" bgColor=#e6efff
    width="2%" align=left>&nbsp;</TD></TR></TABLE></DIV>
<P style="MARGIN-LEFT: 5%" align=justify>The DSUs are cash-settled instruments
and therefore the fair value of the outstanding DSUs at the end of each
reporting period is recognized as an accrued liability with the associated
compensation cost recorded in general and administrative expenses. </P>
<P style="MARGIN-LEFT: 5%" align=justify><B>e)</B><B> </B><B>Restricted Share
Units (&#147;RSUs&#148;) </B></P>
<P style="MARGIN-LEFT: 5%" align=justify>During the year ended December 31,
2011, the Company implemented the RSU Plan. RSUs are granted to employees based
on the value of the Company&#146;s share price at the date of grant. The awards have
a graded vesting schedule over a three-year period, and are cash-settled
immediately upon vesting. </P>
<P style="MARGIN-LEFT: 5%" align=justify>RSUs are cash-settled instruments and
therefore are recognized as a liability, with fair value remeasurement at each
reporting period. The associated compensation cost is recorded in general and
administrative expenses unless directly attributable to a mineral property. </P>
<DIV align=center>
<TABLE
style="BORDER-COLOR: black; BORDER-COLLAPSE: collapse; FONT-SIZE: 10pt; "
border=0 cellSpacing=0 cellPadding=0 width="60%">

  <TR vAlign=top>
    <TD align=left >&nbsp; </TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="17%" align=left nowrap>&nbsp; </TD>
    <TD  width="2%" align=left nowrap>&nbsp;</TD>
    <TD  width="1%" align=left nowrap>&nbsp;</TD>
    <TD width="17%" align=right nowrap><B>December 31,</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"  width="1%"
    align=left>&nbsp;</TD>
    <TD width="17%" 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="17%"
      align=right nowrap style="BORDER-BOTTOM: #000000 1px solid"><B>2011</B> </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="2%"
    align=left>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left >&nbsp; </TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="17%" align=right nowrap><B>Number</B> </TD>
    <TD  width="2%" align=left nowrap>&nbsp;</TD>
    <TD  width="1%" align=left nowrap>&nbsp;</TD>
    <TD width="17%" align=right nowrap><B>Fair</B> </TD>
    <TD  width="2%" align=left>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left >&nbsp; </TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="17%" align=right nowrap><B>of RSUs</B> </TD>
    <TD  width="2%" align=left nowrap>&nbsp;</TD>
    <TD  width="1%" align=left nowrap>&nbsp;</TD>
    <TD width="17%" align=right nowrap><B>value</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"  width="1%"
    align=left>&nbsp;</TD>
    <TD width="17%" 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="17%"
      align=right nowrap style="BORDER-BOTTOM: #000000 1px solid"><B>$/unit</B> </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="2%"
    align=left>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD bgColor=#e6efff align=left >Outstanding, beginning of
      year </TD>
    <TD bgColor=#e6efff  width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="17%" align=right>- </TD>
    <TD bgColor=#e6efff  width="2%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff  width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="17%" align=right>- </TD>
    <TD bgColor=#e6efff  width="2%" align=left>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left >&nbsp; &nbsp; &nbsp; &nbsp;Granted </TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="17%" align=right>93,300 </TD>
    <TD  width="2%" align=left>&nbsp;</TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="17%" align=right>26.61 </TD>
    <TD  width="2%" align=left>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD bgColor=#e6efff align=left >&nbsp; &nbsp; &nbsp;
      &nbsp;Settled </TD>
    <TD bgColor=#e6efff  width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="17%" align=right>- </TD>
    <TD bgColor=#e6efff  width="2%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff  width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="17%" align=right>- </TD>
    <TD bgColor=#e6efff  width="2%" align=left>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left >&nbsp; &nbsp; &nbsp; &nbsp;Forfeited </TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="17%" align=right>(16,500</TD>
    <TD  width="2%" align=left>) </TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="17%" align=right>- </TD>
    <TD  width="2%" align=left>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff align=left
    >&nbsp; &nbsp; &nbsp; &nbsp;Fair value remeasurement </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff
    width="1%" align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff width="17%"
    align=right>- </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff
    width="2%" align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff
    width="1%" align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff width="17%"
    align=right>(12.35</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff
    width="2%" align=left>) </TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=left
      >Outstanding, end of year </TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid"  width="1%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" width="17%"
      align=right>76,800 </TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid"  width="2%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid"  width="1%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" width="17%" align=right>14.26
    </TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid"  width="2%"
    align=left>&nbsp;</TD></TR></TABLE></DIV>
<P style="MARGIN-LEFT: 5%" align=justify>At December 31, 2011, an accrued
liability of $382,000 (December 31, 2010 - nil; January 1, 2010 - nil) was
recorded with a corresponding share-based payment expense. </P>
<TABLE
style="BORDER-COLOR: black; BORDER-COLLAPSE: collapse; FONT-SIZE: 10pt; "
border=0 cellSpacing=0 cellPadding=0 width="100%">
  <TR vAlign=top>
    <TD style="BORDER-TOP: #000000 1px solid" align=right>44 | <FONT
      color=#7e7e7e>P a g e</FONT> </TD>
  </TR>
</TABLE>
<HR style="PAGE-BREAK-AFTER: always" align=center color=black SIZE=5
width="100%" noShade>
<A name=page_45></A><BR>
<TABLE
style="BORDER-COLOR: black; BORDER-COLLAPSE: collapse; FONT-SIZE: 10pt; "
border=0 cellSpacing=0 cellPadding=0 width="100%">
  <TR vAlign=top>
    <TD align=left><FONT size=4><B>Silver Standard Resources Inc.</B> </FONT></TD>
  </TR>
  <TR vAlign=top>
    <TD align=left><FONT size=3>Notes to the Consolidated Financial Statements
      </FONT></TD>
  </TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left><FONT
      size=3>December 31, 2011 and 2010 and January 1, 2010 </FONT></TD>
  </TR>
  <TR vAlign=top>
    <TD align=left>(tabular amounts expressed in thousands of United States dollars
      unless otherwise stated) </TD>
  </TR>
</TABLE>
<BR>
<TABLE
style="BORDER-COLOR: black; BORDER-COLLAPSE: collapse; FONT-SIZE: 10pt; "
border=0 cellSpacing=0 cellPadding=0 width="100%" BCLLIST>

  <TR>
    <TD vAlign=top width="5%"><B>15.</B> </TD>
    <TD>
      <P align=justify><B>SHARE CAPITAL AND SHARE-BASED PAYMENTS
    (Cont&#146;d)</B></P></TD></TR></TABLE>
<P style="MARGIN-LEFT: 5%" align=justify><B>f)</B><B> </B><B>Performance Share
Units (&#147;PSU&#148;) </B></P>
<P style="MARGIN-LEFT: 5%" align=justify>During the year ended December 31, 2010
the Company implemented the PSU Plan for grants commencing in 2011. PSUs are
granted to senior executives, and vest after a performance period of three
years. During 2011, in addition to a normal annual grant there was also a
one-off grant of transitional PSUs, which vest after a two-year performance
period. The vesting of these awards 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. </P>
<P style="MARGIN-LEFT: 5%" align=justify>PSUs are cash-settled instruments and
therefore are recognized as a liability, with fair value remeasurement at each
reporting period using a Monte Carlo simulation. The associated compensation
cost is recorded in general and administrative expenses. </P>
<DIV align=center>
<TABLE
style="BORDER-COLOR: black; BORDER-COLLAPSE: collapse; FONT-SIZE: 10pt; "
border=0 cellSpacing=0 cellPadding=0 width="60%">

  <TR vAlign=top>
    <TD align=left >&nbsp; </TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="17%" align=left nowrap>&nbsp; </TD>
    <TD  width="2%" align=left nowrap>&nbsp;</TD>
    <TD  width="1%" align=left nowrap>&nbsp;</TD>
    <TD width="17%" align=right nowrap><B>December 31,</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"  width="1%"
    align=left>&nbsp;</TD>
    <TD width="17%" 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="17%"
      align=right nowrap style="BORDER-BOTTOM: #000000 1px solid"><B>2011</B> </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="2%"
    align=left>&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left >&nbsp; </TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="17%" align=right nowrap><B>Number</B> </TD>
    <TD  width="2%" align=left nowrap>&nbsp;</TD>
    <TD  width="1%" align=left nowrap>&nbsp;</TD>
    <TD width="17%" align=right nowrap><B>Fair</B> </TD>
    <TD  width="2%" align=left>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left >&nbsp; </TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="17%" align=right nowrap><B>of PSUs</B> </TD>
    <TD  width="2%" align=left nowrap>&nbsp;</TD>
    <TD  width="1%" align=left nowrap>&nbsp;</TD>
    <TD width="17%" align=right nowrap><B>value</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"  width="1%"
    align=left>&nbsp;</TD>
    <TD width="17%" 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="17%"
      align=right nowrap style="BORDER-BOTTOM: #000000 1px solid"><B>$/unit</B> </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="2%"
    align=left>&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD bgColor=#e6efff align=left >Outstanding, beginning of
      year </TD>
    <TD bgColor=#e6efff  width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="17%" align=right>- </TD>
    <TD bgColor=#e6efff  width="2%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff  width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="17%" align=right>- </TD>
    <TD bgColor=#e6efff  width="2%" align=left>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left >&nbsp; &nbsp; &nbsp; &nbsp;Granted </TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="17%" align=right>141,800 </TD>
    <TD  width="2%" align=left>&nbsp;</TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="17%" align=right>31.70 </TD>
    <TD  width="2%" align=left>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD bgColor=#e6efff align=left >&nbsp; &nbsp; &nbsp;
      &nbsp;Settled </TD>
    <TD bgColor=#e6efff  width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="17%" align=right>- </TD>
    <TD bgColor=#e6efff  width="2%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff  width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="17%" align=right>- </TD>
    <TD bgColor=#e6efff  width="2%" align=left>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left >&nbsp; &nbsp; &nbsp; &nbsp;Forfeited </TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="17%" align=right>(32,100</TD>
    <TD  width="2%" align=left>) </TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="17%" align=right>- </TD>
    <TD  width="2%" align=left>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff align=left
    >&nbsp; &nbsp; &nbsp; &nbsp;Fair value remeasurement </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff
    width="1%" align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff width="17%"
    align=right>- </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff
    width="2%" align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff
    width="1%" align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff width="17%"
    align=right>(24.01</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff
    width="2%" align=left>) </TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=left
      >Outstanding, end of year </TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid"  width="1%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" width="17%"
      align=right>109,700 </TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid"  width="2%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid"  width="1%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" width="17%" align=right>7.69
    </TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid"  width="2%"
    align=left>&nbsp;</TD></TR></TABLE></DIV>
<P style="MARGIN-LEFT: 5%" align=justify>At December 31, 2011, an accrued
liability of $311,000 (December 31, 2010 - nil; January 1, 2010 - nil) was
recorded with a corresponding share-based payment expense. </P>
<P style="MARGIN-LEFT: 5%" align=justify><B>g)</B><B> </B><B>Share-based
compensation </B></P>
<P style="MARGIN-LEFT: 5%" align=justify>Share-based compensation consists of
the fair values of both equity-settled and cash-settled awards as follows: </P>
<DIV align=center>
<TABLE
style="BORDER-COLOR: black; BORDER-COLLAPSE: collapse; FONT-SIZE: 10pt; "
border=0 cellSpacing=0 cellPadding=0 width="80%">

  <TR vAlign=top>
    <TD align=left >&nbsp; </TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="15%" align=right><B>2011</B> </TD>
    <TD  width="2%" align=left>&nbsp;</TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="15%" align=right><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"  width="1%"
    align=right>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="15%" align=right>$</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="2%"
    align=right>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="1%"
    align=right>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="15%" align=right>$</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="2%"
    align=right>&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD bgColor=#e6efff align=left >Equity-settled </TD>
    <TD bgColor=#e6efff  width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="15%" align=right><B>4,676</B> </TD>
    <TD bgColor=#e6efff  width="2%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff  width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="15%" align=right>8,153 </TD>
    <TD bgColor=#e6efff  width="2%" align=left>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left
      >Cash-settled </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="1%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="15%"
      align=right><B>(589</B></TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="2%"
    align=left><B>)</B> </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="1%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="15%" align=right>1,162
    </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="2%"
    align=left>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 2px solid" bgColor=#e6efff align=left
    >Total </TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" bgColor=#e6efff
    width="1%" align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" bgColor=#e6efff width="15%"
    align=right><B>4,087</B> </TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" bgColor=#e6efff
    width="2%" align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" bgColor=#e6efff
    width="1%" align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" bgColor=#e6efff width="15%"
    align=right>9,315 </TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" bgColor=#e6efff
    width="2%" align=left>&nbsp;</TD></TR></TABLE></DIV>
<P style="MARGIN-LEFT: 5%" align=justify>Share-based compensation for the years
ended December 31, 2011 and 2010 has been recognized in the financial statements
as follows: </P>
<DIV align=center>
<TABLE
style="BORDER-COLOR: black; BORDER-COLLAPSE: collapse; FONT-SIZE: 10pt; "
border=0 cellSpacing=0 cellPadding=0 width="80%">

  <TR vAlign=top>
    <TD align=left >&nbsp; </TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="15%" align=right><B>2011</B> </TD>
    <TD  width="2%" align=left>&nbsp;</TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="15%" align=right><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"  width="1%"
    align=right>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="15%"
    align=right>$&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="2%"
    align=right>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="1%"
    align=right>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="15%" align=right>$</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="2%"
    align=right>&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD bgColor=#e6efff align=left >General and administrative
      expense </TD>
    <TD bgColor=#e6efff  width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="15%" align=right><B>4,052</B> </TD>
    <TD bgColor=#e6efff  width="2%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff  width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="15%" align=right>8,984 </TD>
    <TD bgColor=#e6efff  width="2%" align=left>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left
      >Property, plant and equipment </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="1%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="15%"
      align=right><B>35</B> </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="2%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="1%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="15%" align=right>331
    </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="2%"
    align=left>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 2px solid" bgColor=#e6efff align=left
    >Total share-based compensation </TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" bgColor=#e6efff
    width="1%" align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" bgColor=#e6efff width="15%"
    align=right><B>4,087</B> </TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" bgColor=#e6efff
    width="2%" align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" bgColor=#e6efff
    width="1%" align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" bgColor=#e6efff width="15%"
    align=right>9,315 </TD>
<TD style="BORDER-BOTTOM: #000000 2px solid" bgColor=#e6efff
    width="2%" align=left>&nbsp;</TD></TR></TABLE></DIV><BR>
<TABLE
style="BORDER-COLOR: black; BORDER-COLLAPSE: collapse; FONT-SIZE: 10pt; "
border=0 cellSpacing=0 cellPadding=0 width="100%">
  <TR vAlign=top>
    <TD style="BORDER-TOP: #000000 1px solid" align=right>45 | <FONT
      color=#7e7e7e>P a g e</FONT> </TD>
  </TR>
</TABLE>
<HR style="PAGE-BREAK-AFTER: always" align=center color=black SIZE=5
width="100%" noShade>
<A name=page_46></A><BR>
<TABLE
style="BORDER-COLOR: black; BORDER-COLLAPSE: collapse; FONT-SIZE: 10pt; "
border=0 cellSpacing=0 cellPadding=0 width="100%">
  <TR vAlign=top>
    <TD align=left><FONT size=4><B>Silver Standard Resources Inc.</B> </FONT></TD>
  </TR>
  <TR vAlign=top>
    <TD align=left><FONT size=3>Notes to the Consolidated Financial Statements
      </FONT></TD>
  </TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left><FONT
      size=3>December 31, 2011 and 2010 and January 1, 2010 </FONT></TD>
  </TR>
  <TR vAlign=top>
    <TD align=left>(tabular amounts expressed in thousands of United States dollars
      unless otherwise stated) </TD>
  </TR>
</TABLE>
<BR>
<TABLE
style="BORDER-COLOR: black; BORDER-COLLAPSE: collapse; FONT-SIZE: 10pt; "
border=0 cellSpacing=0 cellPadding=0 width="100%" BCLLIST>

  <TR>
    <TD vAlign=top width="5%"><B>16.</B> </TD>
    <TD>
      <P align=justify><B>OTHER RESERVES</B></P></TD></TR></TABLE><BR>
<TABLE
style="BORDER-COLOR: black; BORDER-COLLAPSE: collapse; FONT-SIZE: 10pt; "
border=0 cellSpacing=0 cellPadding=0 width="100%">

  <TR vAlign=top>
    <TD width="5%"  >&nbsp;</TD>
    <TD align=left>&nbsp; </TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="12%" align=right><B>December 31,</B> </TD>
    <TD  width="2%" align=left>&nbsp;</TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="12%" align=right><B>December 31,</B> </TD>
    <TD  width="2%" 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 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 width="5%" >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>&nbsp; </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="1%"
    align=right>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="12%"
    align=right>$&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="2%"
    align=right>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="1%"
    align=right>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="12%" align=right>$</TD>
  <TD style="BORDER-BOTTOM: #000000 1px solid"  width="2%"
    align=right>&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD width="5%" >&nbsp;</TD>
    <TD bgColor=#e6efff align=left><B>Foreign currency translation reserve</B>
    </TD>
    <TD bgColor=#e6efff  width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="12%" align=left>&nbsp; </TD>
    <TD bgColor=#e6efff  width="2%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff  width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="12%" align=left>&nbsp; </TD>
    <TD bgColor=#e6efff  width="2%" align=left>&nbsp;</TD></TR>
  <TR>
    <TD width="5%" >&nbsp;</TD>
    <TD>&nbsp; </TD>
    <TD  width="1%">&nbsp;</TD>
    <TD width="12%">&nbsp; </TD>
    <TD  width="2%">&nbsp;</TD>
    <TD  width="1%">&nbsp;</TD>
    <TD width="12%">&nbsp; </TD>
    <TD  width="2%">&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD width="5%" >&nbsp;</TD>
    <TD bgColor=#e6efff align=left>At January 1 </TD>
    <TD bgColor=#e6efff  width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="12%" align=right>1,832 </TD>
    <TD bgColor=#e6efff  width="2%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff  width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="12%" align=right>- </TD>
    <TD bgColor=#e6efff  width="2%" align=left>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD width="5%" >&nbsp;</TD>
    <TD align=left>Parent company and subsidiary companies' currency
      translation adjustments </TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="12%" align=right>(4,781</TD>
    <TD  width="2%" align=left>) </TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="12%" align=right>1,832 </TD>
    <TD  width="2%" align=left>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD width="5%" >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff
      align=left>Currency translation adjustments recycled to net income on
      disposals </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff
    width="1%" align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff width="12%"
    align=right>(898</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff
    width="2%" align=left>) </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff
    width="1%" align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff width="12%"
    align=right>- </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff
    width="2%" align=left>&nbsp;</TD></TR>
  <TR>
    <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 1px solid" bgColor=#e6efff align=left>At
      December 31 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff
    width="1%" align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff width="12%"
    align=right>(3,847</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff
    width="2%" align=left>) </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff
    width="1%" align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff width="12%"
    align=right>1,832 </TD>
  <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff
    width="2%" align=left>&nbsp;</TD>
  </TR>
  <TR>
    <TD width="5%" >&nbsp;</TD>
    <TD>&nbsp; </TD>
    <TD  width="1%">&nbsp;</TD>
    <TD width="12%">&nbsp; </TD>
    <TD  width="2%">&nbsp;</TD>
    <TD  width="1%">&nbsp;</TD>
    <TD width="12%">&nbsp; </TD>
    <TD  width="2%">&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD width="5%" >&nbsp;</TD>
    <TD bgColor=#e6efff align=left><B>Available for sale revaluation
      reserves</B> </TD>
    <TD bgColor=#e6efff  width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="12%" align=left>&nbsp; </TD>
    <TD bgColor=#e6efff  width="2%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff  width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="12%" align=left>&nbsp; </TD>
    <TD bgColor=#e6efff  width="2%" align=left>&nbsp;</TD></TR>
  <TR>
    <TD width="5%" >&nbsp;</TD>
    <TD>&nbsp; </TD>
    <TD  width="1%">&nbsp;</TD>
    <TD width="12%">&nbsp; </TD>
    <TD  width="2%">&nbsp;</TD>
    <TD  width="1%">&nbsp;</TD>
    <TD width="12%">&nbsp; </TD>
    <TD  width="2%">&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD width="5%" >&nbsp;</TD>
    <TD bgColor=#e6efff align=left>At January 1 </TD>
    <TD bgColor=#e6efff  width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="12%" align=right>19,301 </TD>
    <TD bgColor=#e6efff  width="2%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff  width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="12%" align=right>6,039 </TD>
    <TD bgColor=#e6efff  width="2%" align=left>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD width="5%" >&nbsp;</TD>
    <TD align=left>Unrealized gains (losses) on available for sale securities
    </TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="12%" align=right>(15,778</TD>
    <TD  width="2%" align=left>) </TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="12%" align=right>17,142 </TD>
    <TD  width="2%" align=left>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD width="5%" >&nbsp;</TD>
    <TD bgColor=#e6efff align=left>Foreign exchange gains </TD>
    <TD bgColor=#e6efff  width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="12%" align=right>699 </TD>
    <TD bgColor=#e6efff  width="2%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff  width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="12%" align=right>1,117 </TD>
    <TD bgColor=#e6efff  width="2%" align=left>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD width="5%" >&nbsp;</TD>
    <TD align=left>Deferred income tax recovery (expense) </TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="12%" align=right>1,259 </TD>
    <TD  width="2%" align=left>&nbsp;</TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="12%" align=right>(2,352</TD>
    <TD  width="2%" align=left>) </TD></TR>
  <TR vAlign=top>
    <TD width="5%" >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff
      align=left>Realized gains on available for sale securities recycled to net
      income (loss), net of tax </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff
    width="1%" align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff width="12%"
    align=right>(4,731</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff
    width="2%" align=left>) </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff
    width="1%" align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff width="12%"
    align=right>(2,645</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff
    width="2%" align=left>) </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 1px solid" bgColor=#e6efff align=left>At
      December 31 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff
    width="1%" align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff width="12%"
    align=right>750 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff
    width="2%" align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff
    width="1%" align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff width="12%"
    align=right>19,301 </TD>
  <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff
    width="2%" align=left>&nbsp;</TD>
  </TR>
  <TR>
    <TD width="5%" >&nbsp;</TD>
    <TD>&nbsp; </TD>
    <TD  width="1%">&nbsp;</TD>
    <TD width="12%">&nbsp; </TD>
    <TD  width="2%">&nbsp;</TD>
    <TD  width="1%">&nbsp;</TD>
    <TD width="12%">&nbsp; </TD>
    <TD  width="2%">&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD width="5%" >&nbsp;</TD>
    <TD bgColor=#e6efff align=left><B>Transactions with non-controlling
      interests</B> </TD>
    <TD bgColor=#e6efff  width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="12%" align=left>&nbsp; </TD>
    <TD bgColor=#e6efff  width="2%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff  width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="12%" align=left>&nbsp; </TD>
    <TD bgColor=#e6efff  width="2%" align=left>&nbsp;</TD></TR>
  <TR>
    <TD width="5%" >&nbsp;</TD>
    <TD>&nbsp; </TD>
    <TD  width="1%">&nbsp;</TD>
    <TD width="12%">&nbsp; </TD>
    <TD  width="2%">&nbsp;</TD>
    <TD  width="1%">&nbsp;</TD>
    <TD width="12%">&nbsp; </TD>
    <TD  width="2%">&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD width="5%" >&nbsp;</TD>
    <TD bgColor=#e6efff align=left>At January 1 </TD>
    <TD bgColor=#e6efff  width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="12%" align=right>- </TD>
    <TD bgColor=#e6efff  width="2%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff  width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="12%" align=right>- </TD>
    <TD bgColor=#e6efff  width="2%" align=left>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD width="5%" >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>Acquisition of
      non-controlling interest in subsidiary </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="1%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="12%"
      align=right>(28,198</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="2%"
    align=left>) </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="1%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="12%" align=right>- </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="2%"
    align=left>&nbsp;</TD></TR>
  <TR>
    <TD width="5%" >&nbsp;</TD>
    <TD bgColor=#e6efff>&nbsp; </TD>
    <TD bgColor=#e6efff  width="1%">&nbsp;</TD>
    <TD bgColor=#e6efff width="12%">&nbsp; </TD>
    <TD bgColor=#e6efff  width="2%">&nbsp;</TD>
    <TD bgColor=#e6efff  width="1%">&nbsp;</TD>
    <TD bgColor=#e6efff width="12%">&nbsp; </TD>
    <TD bgColor=#e6efff  width="2%">&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD width="5%" >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>At December 31 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="1%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="12%"
      align=right>(28,198</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="2%"
    align=left>) </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="1%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="12%" align=right>- </TD>
  <TD style="BORDER-BOTTOM: #000000 1px solid"  width="2%"
    align=left>&nbsp;</TD>
  </TR>
  <TR>
    <TD width="5%" >&nbsp;</TD>
    <TD bgColor=#e6efff>&nbsp; </TD>
    <TD bgColor=#e6efff  width="1%">&nbsp;</TD>
    <TD bgColor=#e6efff width="12%">&nbsp; </TD>
    <TD bgColor=#e6efff  width="2%">&nbsp;</TD>
    <TD bgColor=#e6efff  width="1%">&nbsp;</TD>
    <TD bgColor=#e6efff width="12%">&nbsp; </TD>
    <TD bgColor=#e6efff  width="2%">&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD width="5%" >&nbsp;</TD>
    <TD align=left><B>Share-based compensation reserve</B> </TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="12%" align=left>&nbsp; </TD>
    <TD  width="2%" align=left>&nbsp;</TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="12%" align=left>&nbsp; </TD>
    <TD  width="2%" align=left>&nbsp;</TD></TR>
  <TR>
    <TD width="5%" >&nbsp;</TD>
    <TD bgColor=#e6efff>&nbsp; </TD>
    <TD bgColor=#e6efff  width="1%">&nbsp;</TD>
    <TD bgColor=#e6efff width="12%">&nbsp; </TD>
    <TD bgColor=#e6efff  width="2%">&nbsp;</TD>
    <TD bgColor=#e6efff  width="1%">&nbsp;</TD>
    <TD bgColor=#e6efff width="12%">&nbsp; </TD>
    <TD bgColor=#e6efff  width="2%">&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD width="5%" >&nbsp;</TD>
    <TD align=left>At January 1 </TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="12%" align=right>42,124 </TD>
    <TD  width="2%" align=left>&nbsp;</TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="12%" align=right>40,927 </TD>
    <TD  width="2%" align=left>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD width="5%" >&nbsp;</TD>
    <TD bgColor=#e6efff align=left>Stock options exercised </TD>
    <TD bgColor=#e6efff  width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="12%" align=right>(8,990</TD>
    <TD bgColor=#e6efff  width="2%" align=left>) </TD>
    <TD bgColor=#e6efff  width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="12%" align=right>(6,956</TD>
    <TD bgColor=#e6efff  width="2%" align=left>) </TD></TR>
  <TR vAlign=top>
    <TD width="5%" >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>Share-based
      compensation </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="1%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="12%" align=right>4,676    </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="2%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="1%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="12%" align=right>8,153    </TD>
  <TD style="BORDER-BOTTOM: #000000 1px solid"  width="2%"
    align=left>&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD width="5%" >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff align=left>At
      December 31 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff
    width="1%" align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff width="12%"
    align=right>37,810 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff
    width="2%" align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff
    width="1%" align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff width="12%"
    align=right>42,124 </TD>
  <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff
    width="2%" align=left>&nbsp;</TD>
  </TR>
  <TR>
    <TD width="5%" >&nbsp;</TD>
    <TD>&nbsp; </TD>
    <TD
    width="1%">&nbsp;</TD>
    <TD width="12%">&nbsp; </TD>
    <TD
    width="2%">&nbsp;</TD>
    <TD
    width="1%">&nbsp;</TD>
    <TD width="12%">&nbsp; </TD>
  <TD
    width="2%">&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD width="5%" >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff
      align=left><B>Total other reserves</B> </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff
    width="1%" align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff width="12%"
    align=right><B>6,515</B> </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff
    width="2%" align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff
    width="1%" align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff width="12%"
    align=right><B>63,257</B> </TD>
  <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff
    width="2%" align=left>&nbsp;</TD>
  </TR></TABLE><BR>
<TABLE
style="BORDER-COLOR: black; BORDER-COLLAPSE: collapse; FONT-SIZE: 10pt; "
border=0 cellSpacing=0 cellPadding=0 width="100%">
  <TR vAlign=top>
    <TD style="BORDER-TOP: #000000 1px solid" align=right>46 | <FONT
      color=#7e7e7e>P a g e</FONT> </TD>
  </TR>
</TABLE>
<HR style="PAGE-BREAK-AFTER: always" align=center color=black SIZE=5
width="100%" noShade>
<A name=page_47></A><BR>
<TABLE
style="BORDER-COLOR: black; BORDER-COLLAPSE: collapse; FONT-SIZE: 10pt; "
border=0 cellSpacing=0 cellPadding=0 width="100%">
  <TR vAlign=top>
    <TD align=left><FONT size=4><B>Silver Standard Resources Inc.</B> </FONT></TD>
  </TR>
  <TR vAlign=top>
    <TD align=left><FONT size=3>Notes to the Consolidated Financial Statements
      </FONT></TD>
  </TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left><FONT
      size=3>December 31, 2011 and 2010 and January 1, 2010 </FONT></TD>
  </TR>
  <TR vAlign=top>
    <TD align=left>(tabular amounts expressed in thousands of United States dollars
      unless otherwise stated) </TD>
  </TR>
</TABLE>
<BR>
<TABLE
style="BORDER-COLOR: black; BORDER-COLLAPSE: collapse; FONT-SIZE: 10pt; "
border=0 cellSpacing=0 cellPadding=0 width="100%" BCLLIST>

  <TR>
    <TD vAlign=top width="5%"><B>17.</B> </TD>
    <TD>
      <P align=justify><B>OPERATING COSTS BY
NATURE</B></P></TD></TR></TABLE><BR>
<TABLE
style="BORDER-COLOR: black; BORDER-COLLAPSE: collapse; FONT-SIZE: 10pt; "
border=0 cellSpacing=0 cellPadding=0 width="100%" BCLLIST>

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

  <TR vAlign=top>
    <TD width="5%"  >&nbsp;</TD>
    <TD align=left>&nbsp; </TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="12%" align=right><B>December 31,</B> </TD>
    <TD  width="2%" align=left>&nbsp;</TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="12%" align=right><B>December 31,</B> </TD>
    <TD  width="2%" 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 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 width="5%" >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>&nbsp; </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="1%"
    align=right>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="12%"
    align=right>$&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="2%"
    align=right>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="1%"
    align=right>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="12%" align=right>$</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="2%"
    align=right>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD width="5%" >&nbsp;</TD>
    <TD bgColor=#e6efff align=left>Cost of inventory </TD>
    <TD bgColor=#e6efff  width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="12%" align=right><B>66,694</B> </TD>
    <TD bgColor=#e6efff  width="2%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff  width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="12%" align=right>67,231 </TD>
    <TD bgColor=#e6efff  width="2%" align=left>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD width="5%" >&nbsp;</TD>
    <TD align=left>Depletion, depreciation and amortization </TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="12%" align=right><B>16,546</B> </TD>
    <TD  width="2%" align=left>&nbsp;</TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="12%" align=right>22,151 </TD>
    <TD  width="2%" align=left>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD width="5%" >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff
      align=left>Export duties <SUP>(1)</SUP> </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff
    width="1%" align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff width="12%"
    align=right><B>12,686</B> </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff
    width="2%" align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff
    width="1%" align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff width="12%"
    align=right>8,740 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff
    width="2%" align=left>&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"  width="1%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" width="12%"
      align=right><B>95,926</B> </TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid"  width="2%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid"  width="1%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" width="12%"
      align=right>98,122 </TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid"  width="2%"
    align=left>&nbsp;</TD></TR></TABLE><BR>
<TABLE
style="BORDER-COLOR: black; BORDER-COLLAPSE: collapse; FONT-SIZE: 10pt; "
border=0 cellSpacing=0 cellPadding=0 width="100%" BCLLIST>

  <TR>
    <TD width="5%"  >&nbsp;</TD>
    <TD vAlign=top width="5%"><B><SUP>(1)</SUP></B> </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 applied to silver
      concentrates 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 on silver
      concentrates, and for an order to cease payment of the export duty until
      the matter was decided by the court. An order was granted effective
      September 29, 2010 to cease payment of the export duty on silver
      concentrates pending the decision of the courts, and in April 2011 a
      government appeal against this order was denied.</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>Up to December 31, 2011, the Pirquitas mine had paid
      $6,649,000 in export duties against which it has filed for recovery. In
      accordance with the order to cease payment the Company has not been paying
      export duties on silver concentrate but continues to accrue duties in full
      until the outcome of the claim is known with certainty. At December 31,
      2011, the accrual totalled $13,101,000, and $10,538,000 has been included
      in cost of sales for the year. If this export duty is successfully
      overturned the benefit will be recognized in the Consolidated Statement of
      Income for the full amount of paid and unpaid duty in the period recovery
      becomes virtually certain.</P></TD></TR></TABLE><BR>
<TABLE
style="BORDER-COLOR: black; BORDER-COLLAPSE: collapse; FONT-SIZE: 10pt; "
border=0 cellSpacing=0 cellPadding=0 width="100%" BCLLIST>

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

  <TR vAlign=top>
    <TD width="5%"  >&nbsp;</TD>
    <TD align=left>&nbsp; </TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="12%" align=right><B>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 width="5%" >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>&nbsp; </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="1%"
    align=right>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="12%" align=right>$</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="2%"
    align=right>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="1%"
    align=right>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="12%" align=right>$</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="2%"
    align=right>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD width="5%" >&nbsp;</TD>
    <TD bgColor=#e6efff align=left>Salaries and benefits </TD>
    <TD bgColor=#e6efff  width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="12%" align=right><B>9,804</B> </TD>
    <TD bgColor=#e6efff  width="2%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff  width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="12%" align=right>11,251 </TD>
    <TD bgColor=#e6efff  width="2%" align=left>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD width="5%" >&nbsp;</TD>
    <TD align=left>Share-based compensation </TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="12%" align=right><B>4,052</B> </TD>
    <TD  width="2%" align=left>&nbsp;</TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="12%" align=right>8,984 </TD>
    <TD  width="2%" align=left>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD width="5%" >&nbsp;</TD>
    <TD bgColor=#e6efff align=left>Consulting and professional fees </TD>
    <TD bgColor=#e6efff  width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="12%" align=right><B>1,790</B> </TD>
    <TD bgColor=#e6efff  width="2%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff  width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="12%" align=right>2,383 </TD>
    <TD bgColor=#e6efff  width="2%" align=left>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD width="5%" >&nbsp;</TD>
    <TD align=left>Travelling expense </TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="12%" align=right><B>1,673</B> </TD>
    <TD  width="2%" align=left>&nbsp;</TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="12%" align=right>968 </TD>
    <TD  width="2%" align=left>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD width="5%" >&nbsp;</TD>
    <TD bgColor=#e6efff align=left>Shareholder and investor relations </TD>
    <TD bgColor=#e6efff  width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="12%" align=right><B>1,055</B> </TD>
    <TD bgColor=#e6efff  width="2%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff  width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="12%" align=right>651 </TD>
    <TD bgColor=#e6efff  width="2%" align=left>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD width="5%" >&nbsp;</TD>
    <TD align=left>Insurance expense </TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="12%" align=right><B>846</B> </TD>
    <TD  width="2%" align=left>&nbsp;</TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="12%" align=right>784 </TD>
    <TD  width="2%" align=left>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD width="5%" >&nbsp;</TD>
    <TD bgColor=#e6efff align=left>Directors fees and expenses </TD>
    <TD bgColor=#e6efff  width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="12%" align=right><B>688</B> </TD>
    <TD bgColor=#e6efff  width="2%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff  width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="12%" align=right>424 </TD>
    <TD bgColor=#e6efff  width="2%" align=left>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD width="5%" >&nbsp;</TD>
    <TD align=left>Rent expense </TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="12%" align=right><B>685</B> </TD>
    <TD  width="2%" align=left>&nbsp;</TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="12%" align=right>621 </TD>
    <TD  width="2%" align=left>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD width="5%" >&nbsp;</TD>
    <TD bgColor=#e6efff align=left>Computer expenses </TD>
    <TD bgColor=#e6efff  width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="12%" align=right><B>456</B> </TD>
    <TD bgColor=#e6efff  width="2%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff  width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="12%" align=right>310 </TD>
    <TD bgColor=#e6efff  width="2%" align=left>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD width="5%" >&nbsp;</TD>
    <TD align=left>Listing and filing fees </TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="12%" align=right><B>374</B> </TD>
    <TD  width="2%" align=left>&nbsp;</TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="12%" align=right>204 </TD>
    <TD  width="2%" align=left>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD width="5%" >&nbsp;</TD>
    <TD bgColor=#e6efff align=left>Recruiting expense </TD>
    <TD bgColor=#e6efff  width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="12%" align=right><B>323</B> </TD>
    <TD bgColor=#e6efff  width="2%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff  width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="12%" align=right>364 </TD>
    <TD bgColor=#e6efff  width="2%" align=left>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD width="5%" >&nbsp;</TD>
    <TD align=left>Depreciation and amortization </TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="12%" align=right><B>286</B> </TD>
    <TD  width="2%" align=left>&nbsp;</TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="12%" align=right>285 </TD>
    <TD  width="2%" align=left>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD width="5%" >&nbsp;</TD>
    <TD bgColor=#e6efff align=left>Reclamation expense </TD>
    <TD bgColor=#e6efff  width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="12%" align=right><B>251</B> </TD>
    <TD bgColor=#e6efff  width="2%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff  width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="12%" align=right>166 </TD>
    <TD bgColor=#e6efff  width="2%" align=left>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD width="5%" >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>Other expenses </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="1%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="12%"
      align=right><B>1,368</B> </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="2%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="1%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="12%" align=right>1,501
    </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="2%"
    align=left>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD width="5%" >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" bgColor=#e6efff
      align=left>&nbsp; </TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" bgColor=#e6efff
    width="1%" align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" bgColor=#e6efff width="12%"
    align=right><B>23,651</B> </TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" bgColor=#e6efff
    width="2%" align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" bgColor=#e6efff
    width="1%" align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" bgColor=#e6efff width="12%"
    align=right>28,896 </TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" bgColor=#e6efff
    width="2%" align=left>&nbsp;</TD></TR></TABLE><BR>
<TABLE
style="BORDER-COLOR: black; BORDER-COLLAPSE: collapse; FONT-SIZE: 10pt; "
border=0 cellSpacing=0 cellPadding=0 width="100%">
  <TR vAlign=top>
    <TD style="BORDER-TOP: #000000 1px solid" align=right>47 | <FONT
      color=#7e7e7e>P a g e</FONT> </TD>
  </TR>
</TABLE>
<HR style="PAGE-BREAK-AFTER: always" align=center color=black SIZE=5
width="100%" noShade>
<A name=page_48></A><BR>
<TABLE
style="BORDER-COLOR: black; BORDER-COLLAPSE: collapse; FONT-SIZE: 10pt; "
border=0 cellSpacing=0 cellPadding=0 width="100%">
  <TR vAlign=top>
    <TD align=left><FONT size=4><B>Silver Standard Resources Inc.</B> </FONT></TD>
  </TR>
  <TR vAlign=top>
    <TD align=left><FONT size=3>Notes to the Consolidated Financial Statements
      </FONT></TD>
  </TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left><FONT
      size=3>December 31, 2011 and 2010 and January 1, 2010 </FONT></TD>
  </TR>
  <TR vAlign=top>
    <TD align=left>(tabular amounts expressed in thousands of United States dollars
      unless otherwise stated) </TD>
  </TR>
</TABLE>
<BR>
<TABLE
style="BORDER-COLOR: black; BORDER-COLLAPSE: collapse; FONT-SIZE: 10pt; "
border=0 cellSpacing=0 cellPadding=0 width="100%" BCLLIST>

  <TR>
    <TD vAlign=top width="5%"><B>18.</B> </TD>
    <TD>
      <P align=justify><B>FINANCE INCOME AND
EXPENSES</B></P></TD></TR></TABLE>
<P style="MARGIN-LEFT: 5%" align=justify><B>a) Interest earned and other finance
income </B></P>
<TABLE
style="BORDER-COLOR: black; BORDER-COLLAPSE: collapse; FONT-SIZE: 10pt; "
border=0 cellSpacing=0 cellPadding=0 width="100%">

  <TR vAlign=top>
    <TD width="5%"  >&nbsp;</TD>
    <TD align=left>&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 width="5%" >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>&nbsp; </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="1%"
    align=right>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="12%"
    align=right>$&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="2%"
    align=right>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="1%"
    align=right>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="12%" align=right>$</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="2%"
    align=right>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD width="5%" >&nbsp;</TD>
    <TD bgColor=#e6efff align=left>Interest earned </TD>
    <TD bgColor=#e6efff  width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="12%" align=right><B>1,600</B> </TD>
    <TD bgColor=#e6efff  width="2%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff  width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="12%" align=right>535 </TD>
    <TD bgColor=#e6efff  width="2%" align=left>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD width="5%" >&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"  width="1%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="12%"
      align=right><B>691</B> </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="2%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="1%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="12%" align=right>865
    </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="2%"
    align=left>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD width="5%" >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" bgColor=#e6efff
      align=left>Total interest earned and other finance income </TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" bgColor=#e6efff
    width="1%" align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" bgColor=#e6efff width="12%"
    align=right><B>2,291</B> </TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" bgColor=#e6efff
    width="2%" align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" bgColor=#e6efff
    width="1%" align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" bgColor=#e6efff width="12%"
    align=right>1,400 </TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" bgColor=#e6efff
    width="2%" align=left>&nbsp;</TD></TR></TABLE>
<P style="MARGIN-LEFT: 5%" align=justify><B>b) Interest expense and other
finance costs</B></P>
<TABLE
style="BORDER-COLOR: black; BORDER-COLLAPSE: collapse; FONT-SIZE: 10pt; "
border=0 cellSpacing=0 cellPadding=0 width="100%">

  <TR vAlign=top>
    <TD width="5%"  >&nbsp;</TD>
    <TD align=left>&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 width="5%" >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>&nbsp; </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="1%"
    align=right>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="12%" align=right>$</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="2%"
    align=right>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="1%"
    align=right>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="12%" align=right>$</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="2%"
    align=right>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD width="5%" >&nbsp;</TD>
    <TD bgColor=#e6efff align=left>Interest expense on convertible notes </TD>
    <TD bgColor=#e6efff  width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="12%" align=right><B>(6,210</B></TD>
    <TD bgColor=#e6efff  width="2%" align=left><B>)</B> </TD>
    <TD bgColor=#e6efff  width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="12%" align=right>(6,210</TD>
    <TD bgColor=#e6efff  width="2%" align=left>) </TD></TR>
  <TR vAlign=top>
    <TD width="5%" >&nbsp;</TD>
    <TD align=left>Accretion expense on convertible notes </TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="12%" align=right><B>(9,188</B></TD>
    <TD  width="2%" align=left><B>)</B> </TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="12%" align=right>(8,230</TD>
    <TD  width="2%" align=left>) </TD></TR>
  <TR vAlign=top>
    <TD width="5%" >&nbsp;</TD>
    <TD bgColor=#e6efff align=left>Accretion of close down and restoration
      provision </TD>
    <TD bgColor=#e6efff  width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="12%" align=right><B>(1,596</B></TD>
    <TD bgColor=#e6efff  width="2%" align=left><B>)</B> </TD>
    <TD bgColor=#e6efff  width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="12%" align=right>(1,798</TD>
    <TD bgColor=#e6efff  width="2%" align=left>) </TD></TR>
  <TR vAlign=top>
    <TD width="5%" >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>Other interest
      expense </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="1%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="12%"
      align=right><B>(398</B></TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="2%"
    align=left><B>)</B> </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="1%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="12%"
    align=right>(125</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="2%"
    align=left>) </TD></TR>
  <TR vAlign=top>
    <TD width="5%" >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" bgColor=#e6efff
      align=left>Total interest expense and other finance costs </TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" bgColor=#e6efff
    width="1%" align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" bgColor=#e6efff width="12%"
    align=right><B>(17,392</B></TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" bgColor=#e6efff
    width="2%" align=left><B>)</B> </TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" bgColor=#e6efff
    width="1%" align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" bgColor=#e6efff width="12%"
    align=right>(16,363</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" bgColor=#e6efff
    width="2%" align=left>) </TD></TR></TABLE><BR>
<TABLE
style="BORDER-COLOR: black; BORDER-COLLAPSE: collapse; FONT-SIZE: 10pt; "
border=0 cellSpacing=0 cellPadding=0 width="100%">
  <TR vAlign=top>
    <TD style="BORDER-TOP: #000000 1px solid" align=right>48 | <FONT
      color=#7e7e7e>P a g e</FONT> </TD>
  </TR>
</TABLE>
<HR style="PAGE-BREAK-AFTER: always" align=center color=black SIZE=5
width="100%" noShade>
<A name=page_49></A><BR>
<TABLE
style="BORDER-COLOR: black; BORDER-COLLAPSE: collapse; FONT-SIZE: 10pt; "
border=0 cellSpacing=0 cellPadding=0 width="100%">
  <TR vAlign=top>
    <TD align=left><FONT size=4><B>Silver Standard Resources Inc.</B> </FONT></TD>
  </TR>
  <TR vAlign=top>
    <TD align=left><FONT size=3>Notes to the Consolidated Financial Statements
      </FONT></TD>
  </TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left><FONT
      size=3>December 31, 2011 and 2010 and January 1, 2010 </FONT></TD>
  </TR>
  <TR vAlign=top>
    <TD align=left>(tabular amounts expressed in thousands of United States dollars
      unless otherwise stated) </TD>
  </TR>
</TABLE>
<BR>
<TABLE
style="BORDER-COLOR: black; BORDER-COLLAPSE: collapse; FONT-SIZE: 10pt; "
border=0 cellSpacing=0 cellPadding=0 width="100%" BCLLIST>

  <TR>
    <TD vAlign=top width="5%"><B>19.</B> </TD>
    <TD>
      <P align=justify><B>OTHER INCOME (OTHER
EXPENSES)</B></P></TD></TR></TABLE><BR>
<TABLE
style="BORDER-COLOR: black; BORDER-COLLAPSE: collapse; FONT-SIZE: 10pt; "
border=0 cellSpacing=0 cellPadding=0 width="100%">

  <TR vAlign=top>
    <TD width="5%"  >&nbsp;</TD>
    <TD align=left>&nbsp; </TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="12%" align=right><B>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 width="5%" >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>&nbsp; </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="1%"
    align=right>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="12%" align=right>$</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="2%"
    align=right>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="1%"
    align=right>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="12%" align=right>$</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="2%"
    align=right>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD width="5%" >&nbsp;</TD>
    <TD bgColor=#e6efff align=left>Reversal of impairment of convertible
      debenture </TD>
    <TD bgColor=#e6efff  width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="12%" align=right><B>2,400</B> </TD>
    <TD bgColor=#e6efff  width="2%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff  width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="12%" align=right>- </TD>
    <TD bgColor=#e6efff  width="2%" align=left>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD width="5%" >&nbsp;</TD>
    <TD align=left>Unrealized gain (loss) on financial instruments at
      FVTPL<SUP>(1)</SUP> </TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="12%" align=right><B>20,182</B> </TD>
    <TD  width="2%" align=left>&nbsp;</TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="12%" align=right>(1,109</TD>
    <TD  width="2%" align=left>) </TD></TR>
  <TR vAlign=top>
    <TD width="5%" >&nbsp;</TD>
    <TD bgColor=#e6efff align=left>Gain on sale of marketable securities </TD>
    <TD bgColor=#e6efff  width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="12%" align=right><B>5,453</B> </TD>
    <TD bgColor=#e6efff  width="2%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff  width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="12%" align=right>3,114 </TD>
    <TD bgColor=#e6efff  width="2%" align=left>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD width="5%" >&nbsp;</TD>
    <TD align=left>Write-off of mineral property costs </TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="12%" align=right><B>(4,624</B></TD>
    <TD  width="2%" align=left><B>)</B> </TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="12%" align=right>(238</TD>
    <TD  width="2%" align=left>) </TD></TR>
  <TR vAlign=top>
    <TD width="5%" >&nbsp;</TD>
    <TD bgColor=#e6efff align=left>Gain on dilution of associate </TD>
    <TD bgColor=#e6efff  width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="12%" align=right><B>1,803</B> </TD>
    <TD bgColor=#e6efff  width="2%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff  width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="12%" align=right>- </TD>
    <TD bgColor=#e6efff  width="2%" align=left>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD width="5%" >&nbsp;</TD>
    <TD align=left>Share of loss of associate </TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="12%" align=right><B>(6,078</B></TD>
    <TD  width="2%" align=left><B>)</B> </TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="12%" align=right>(77</TD>
    <TD  width="2%" align=left>) </TD></TR>
  <TR vAlign=top>
    <TD width="5%" >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff
      align=left>Miscellaneous income (expense) </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff
    width="1%" align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff width="12%"
    align=right><B>(1,056</B></TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff
    width="2%" align=left><B>)</B> </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff
    width="1%" align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff width="12%"
    align=right>16 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff
    width="2%" align=left>&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"  width="1%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" width="12%"
      align=right><B>18,080</B> </TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid"  width="2%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid"  width="1%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" width="12%" align=right>1,706
    </TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid"  width="2%"
    align=left>&nbsp;</TD></TR></TABLE>
<P style="MARGIN-LEFT: 5%" align=justify><SUP>(1)</SUP> Financial instruments
held at FVTPL include the conversion feature of the convertible debenture
receivable (note 5), the warrant liability (note 12), and the conversion option
embedded in the convertible notes (note 14). </P>
<TABLE
style="BORDER-COLOR: black; BORDER-COLLAPSE: collapse; FONT-SIZE: 10pt; "
border=0 cellSpacing=0 cellPadding=0 width="100%" BCLLIST>

  <TR>
    <TD vAlign=top width="5%"><B>20.</B> </TD>
    <TD>
      <P align=justify><B>EARNINGS PER SHARE</B></P></TD></TR>
  <TR>
    <TD width="5%">&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
  <TR>
    <TD width="5%"></TD>
    <TD>
      <P align=justify>The calculations of basic and diluted earnings per share
      for the year ended December 31, 2011 and 2010 are based on the
      following:</P></TD></TR></TABLE><BR>
<TABLE
style="BORDER-COLOR: black; BORDER-COLLAPSE: collapse; FONT-SIZE: 10pt; "
border=0 cellSpacing=0 cellPadding=0 width="100%">

  <TR vAlign=top>
    <TD width="5%"  >&nbsp;</TD>
    <TD align=left style="BORDER-BOTTOM: #000000 1px solid">&nbsp; </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="1%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="12%"
      align=right><B>2011</B> </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="2%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="1%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="12%"
      align=right><B>2010</B> </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="2%"
    align=left>&nbsp;</TD></TR>
  <TR>
    <TD width="5%" >&nbsp;</TD>
    <TD>&nbsp; </TD>
    <TD  width="1%">&nbsp;</TD>
    <TD width="12%"></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 style="BORDER-BOTTOM: #000000 2px solid">Earnings used in the calculation of diluted
      earnings per share </TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" bgColor=#e6efff
    width="1%" align=left><B>$</B></TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" bgColor=#e6efff width="12%"
    align=right><B>&nbsp;80,128</B> </TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" bgColor=#e6efff
    width="2%" align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" bgColor=#e6efff
    width="1%" align=left>$</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" bgColor=#e6efff width="12%"
    align=right>&nbsp;338,455 </TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" bgColor=#e6efff
    width="2%" align=left>&nbsp;</TD></TR>
  <TR>
    <TD width="5%" >&nbsp;</TD>
    <TD>&nbsp; </TD>
    <TD  width="1%">&nbsp;</TD>
    <TD width="12%">&nbsp; </TD>
    <TD  width="2%">&nbsp;</TD>
    <TD  width="1%">&nbsp;</TD>
    <TD width="12%">&nbsp; </TD>
    <TD  width="2%">&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD width="5%" >&nbsp;</TD>
    <TD bgColor=#e6efff align=left>Weighted average number of common shares
      issued (thousands) </TD>
    <TD bgColor=#e6efff  width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="12%" align=right><B>80,324</B> </TD>
    <TD bgColor=#e6efff  width="2%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff  width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="12%" align=right>77,972 </TD>
    <TD bgColor=#e6efff  width="2%" align=left>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD width="5%" >&nbsp;</TD>
    <TD align=left>Adjustments for dilutive instruments: </TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="12%" align=left>&nbsp; </TD>
    <TD  width="2%" align=left>&nbsp;</TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="12%" align=left>&nbsp; </TD>
    <TD  width="2%" align=left>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD width="5%" >&nbsp;</TD>
    <TD align=left bgColor=#e6efff style="BORDER-BOTTOM: #000000 1px solid">&nbsp; &nbsp; &nbsp;Stock options
      (thousands) </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff
    width="1%" align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff width="12%"
    align=right><B>336</B> </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff
    width="2%" align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff
    width="1%" align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff width="12%"
    align=right>384 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff
    width="2%" align=left>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD width="5%" >&nbsp;</TD>
    <TD align=left style="BORDER-BOTTOM: #000000 2px solid">Weighted average number of common shares for diluted
      earnings per share (thousands) </TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid"  width="1%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" width="12%"
      align=right><B>80,660</B> </TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid"  width="2%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid"  width="1%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" width="12%"
      align=right>78,356 </TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid"  width="2%"
    align=left>&nbsp;</TD></TR>
  <TR>
    <TD width="5%" >&nbsp;</TD>
    <TD bgColor=#e6efff>&nbsp; </TD>
    <TD bgColor=#e6efff  width="1%">&nbsp;</TD>
    <TD bgColor=#e6efff width="12%">&nbsp; </TD>
    <TD bgColor=#e6efff  width="2%">&nbsp;</TD>
    <TD bgColor=#e6efff  width="1%">&nbsp;</TD>
    <TD bgColor=#e6efff width="12%">&nbsp; </TD>
    <TD bgColor=#e6efff  width="2%">&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD width="5%" >&nbsp;</TD>
    <TD align=left>Basic earnings per share </TD>
    <TD  width="1%" align=left><B>$</B></TD>
    <TD width="12%" align=right><B>&nbsp;1.00</B> </TD>
    <TD  width="2%" align=left>&nbsp;</TD>
    <TD  width="1%" align=left>$</TD>
    <TD width="12%" align=right>&nbsp;4.34 </TD>
    <TD  width="2%" align=left>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD width="5%" >&nbsp;</TD>
    <TD bgColor=#e6efff align=left>Diluted earnings per share </TD>
    <TD bgColor=#e6efff  width="1%" align=left><B>$</B></TD>
    <TD bgColor=#e6efff width="12%" align=right><B>&nbsp;0.99</B> </TD>
    <TD bgColor=#e6efff  width="2%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff  width="1%" align=left>$</TD>
    <TD bgColor=#e6efff width="12%" align=right>&nbsp;4.32 </TD>
    <TD bgColor=#e6efff  width="2%"
  align=left>&nbsp;</TD></TR></TABLE>
<P style="MARGIN-LEFT: 5%" align=justify>The convertible notes (note 14) in
certain circumstances are convertible at the request of the holders. In such an
event the initial principal would be repayable in cash and any incremental value
settled at the election of the Company in either cash or common shares, or a
combination of the two. The potential dilutive impact of the shares is therefore
only that portion of the Notes where the share price exceeds the conversion
price of $43.33 per share. Given that at December 31, 2011 and December 31, 2010
the share price was significantly below the conversion price an assumed
conversion by holders would not have any dilution impact because the balance
would be repaid in full in cash.</P>
<TABLE
style="BORDER-COLOR: black; BORDER-COLLAPSE: collapse; FONT-SIZE: 10pt; "
border=0 cellSpacing=0 cellPadding=0 width="100%">
  <TR vAlign=top>
    <TD style="BORDER-TOP: #000000 1px solid" align=right>49 | <FONT
      color=#7e7e7e>P a g e</FONT> </TD>
  </TR>
</TABLE>
<HR style="PAGE-BREAK-AFTER: always" align=center color=black SIZE=5
width="100%" noShade>
<A name=page_50></A><BR>
<TABLE
style="BORDER-COLOR: black; BORDER-COLLAPSE: collapse; FONT-SIZE: 10pt; "
border=0 cellSpacing=0 cellPadding=0 width="100%">
  <TR vAlign=top>
    <TD align=left><FONT size=4><B>Silver Standard Resources Inc.</B> </FONT></TD>
  </TR>
  <TR vAlign=top>
    <TD align=left><FONT size=3>Notes to the Consolidated Financial Statements
      </FONT></TD>
  </TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left><FONT
      size=3>December 31, 2011 and 2010 and January 1, 2010 </FONT></TD>
  </TR>
  <TR vAlign=top>
    <TD align=left>(tabular amounts expressed in thousands of United States dollars
      unless otherwise stated) </TD>
  </TR>
</TABLE>
<BR>
<TABLE
style="BORDER-COLOR: black; BORDER-COLLAPSE: collapse; FONT-SIZE: 10pt; "
border=0 cellSpacing=0 cellPadding=0 width="100%" BCLLIST>

  <TR>
    <TD vAlign=top width="5%"><B>21. </B></TD>
    <TD>
      <P align=justify><B>OPERATING SEGMENTS</B></P></TD></TR>
  <TR>
    <TD width="5%">&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
  <TR>
    <TD width="5%"></TD>
    <TD>
      <P align=justify>The Company is a resource company focused on acquisition,
      exploration, development and operation of silver- dominated projects
      primarily in the Americas.</P></TD></TR>
  <TR>
    <TD width="5%">&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
  <TR>
    <TD width="5%"></TD>
    <TD>
      <P align=justify>An operating segment is defined as a component of the
      Company:</P></TD></TR></TABLE><BR>
<TABLE
style="BORDER-COLOR: black; BORDER-COLLAPSE: collapse; FONT-SIZE: 10pt; "
border=0 cellSpacing=0 cellPadding=0 width="100%">

  <TR vAlign=top>
    <TD width="5%"  >&nbsp;</TD>
    <TD  align=center>-</TD>
    <TD width="90%" align=left >that engages in business
      activities from which it may earn revenues and incur expenses; </TD></TR>
  <TR vAlign=top>
    <TD width="5%" >&nbsp;</TD>
    <TD  align=center>-</TD>
    <TD width="90%" align=left >whose operating results are
      reviewed regularly by the entity&#146;s chief operating decision maker; and,
  </TD></TR>
  <TR vAlign=top>
    <TD width="5%" >&nbsp;</TD>
    <TD  align=center>-</TD>
    <TD width="90%" align=left >for which discrete financial
      information is available. </TD></TR></TABLE>
<P style="MARGIN-LEFT: 5%" align=justify>The Company has identified 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)
to manage the business. The Company primarily manages its business by looking at
individual extractive projects and typically segregates these projects 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 properties&#146; because they all have similar
characteristics and none exceed the quantitative thresholds for individual
disclosure. The only production property, the Pirquitas mine, 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. The following reporting segments have been
identified: </P>
<TABLE
style="BORDER-COLOR: black; BORDER-COLLAPSE: collapse; FONT-SIZE: 10pt; "
border=0 cellSpacing=0 cellPadding=0 width="100%">

  <TR vAlign=top>
    <TD width="5%"  >&nbsp;</TD>
    <TD align=center>- </TD>
    <TD width="90%" align=left >Pirquitas mine; and </TD></TR>
  <TR vAlign=top>
    <TD width="5%" >&nbsp;</TD>
    <TD align=center>- </TD>
    <TD width="90%" align=left >Exploration and development
      properties. </TD></TR></TABLE>
<P style="MARGIN-LEFT: 5%" align=justify>The following is a summary of the
reported amounts of income or loss, and the carrying amounts of assets and
liabilities by operating segment: </P>
<TABLE
style="BORDER-COLOR: black; BORDER-COLLAPSE: collapse; FONT-SIZE: 10pt; "
border=0 cellSpacing=0 cellPadding=0 width="100%">

  <TR vAlign=top>
    <TD width="5%"  >&nbsp;</TD>
    <TD align=left>&nbsp; </TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="12%" 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="12%" 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="12%" 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="12%" align=right nowrap><B>Total </B></TD>
  <TD  width="2%" 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 width="12%" align=left nowrap>&nbsp; </TD>
    <TD  width="2%" align=left nowrap>&nbsp;</TD>
    <TD  width="1%" align=left nowrap>&nbsp;</TD>
    <TD width="12%" 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="12%" 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="12%" align=left nowrap>&nbsp; </TD>
  <TD  width="2%" align=left>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD width="5%" >&nbsp;</TD>
    <TD align=left><B>December 31, 2011 </B></TD>
    <TD vAlign=bottom  width="1%" align=left>&nbsp;</TD>
    <TD width="12%" align=left vAlign=bottom nowrap>&nbsp; </TD>
    <TD  width="2%" align=left vAlign=bottom nowrap>&nbsp;</TD>
    <TD  width="1%" align=left vAlign=bottom nowrap>&nbsp;</TD>
    <TD width="12%" align=right vAlign=bottom nowrap><B>properties </B></TD>
    <TD  width="2%" align=left vAlign=bottom nowrap>&nbsp;</TD>
    <TD  width="1%" align=left vAlign=bottom nowrap>&nbsp;</TD>
    <TD width="12%" align=right vAlign=bottom nowrap><B>items </B><B><SUP>(i,
      </SUP></B><B><SUP>ii) </SUP></B></TD>
    <TD  width="2%" align=left vAlign=bottom nowrap>&nbsp;</TD>
    <TD  width="1%" align=left vAlign=bottom nowrap>&nbsp;</TD>
    <TD width="12%" align=left vAlign=bottom nowrap>&nbsp; </TD>
  <TD vAlign=bottom  width="2%" 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 style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom
    width="1%" align=right>&nbsp;</TD>
    <TD width="12%"
    align=right vAlign=bottom nowrap style="BORDER-BOTTOM: #000000 1px solid">$&nbsp;</TD>
    <TD
    width="2%" align=right vAlign=bottom nowrap style="BORDER-BOTTOM: #000000 1px solid">&nbsp;</TD>
    <TD
    width="1%" align=right vAlign=bottom nowrap style="BORDER-BOTTOM: #000000 1px solid">&nbsp;</TD>
    <TD width="12%"
    align=right vAlign=bottom nowrap style="BORDER-BOTTOM: #000000 1px solid">$</TD>
    <TD
    width="2%" align=right vAlign=bottom nowrap style="BORDER-BOTTOM: #000000 1px solid">&nbsp;</TD>
    <TD
    width="1%" align=right vAlign=bottom nowrap style="BORDER-BOTTOM: #000000 1px solid">&nbsp;</TD>
    <TD width="12%"
    align=right vAlign=bottom nowrap style="BORDER-BOTTOM: #000000 1px solid">$</TD>
    <TD
    width="2%" align=right vAlign=bottom nowrap style="BORDER-BOTTOM: #000000 1px solid">&nbsp;</TD>
    <TD
    width="1%" align=right vAlign=bottom nowrap style="BORDER-BOTTOM: #000000 1px solid">&nbsp;</TD>
    <TD width="12%"
    align=right vAlign=bottom nowrap style="BORDER-BOTTOM: #000000 1px solid">$</TD>
  <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom
    width="2%" align=right>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD width="5%" >&nbsp;</TD>
    <TD bgColor=#e6efff align=left>Revenue from external customers </TD>
    <TD bgColor=#e6efff vAlign=bottom  width="1%"
    align=left>&nbsp;</TD>
    <TD bgColor=#e6efff vAlign=bottom width="12%" align=right>147,845 </TD>
    <TD bgColor=#e6efff vAlign=bottom  width="2%"
    align=left>&nbsp;</TD>
    <TD bgColor=#e6efff vAlign=bottom  width="1%"
    align=left>&nbsp;</TD>
    <TD bgColor=#e6efff vAlign=bottom width="12%" align=right>- </TD>
    <TD bgColor=#e6efff vAlign=bottom  width="2%"
    align=left>&nbsp;</TD>
    <TD bgColor=#e6efff vAlign=bottom  width="1%"
    align=left>&nbsp;</TD>
    <TD bgColor=#e6efff vAlign=bottom width="12%" align=right>- </TD>
    <TD bgColor=#e6efff vAlign=bottom  width="2%"
    align=left>&nbsp;</TD>
    <TD bgColor=#e6efff vAlign=bottom  width="1%"
    align=left>&nbsp;</TD>
    <TD bgColor=#e6efff vAlign=bottom width="12%" align=right><B>147,845
    </B></TD>
    <TD bgColor=#e6efff vAlign=bottom  width="2%"
    align=left>&nbsp;</TD></TR>
  <TR>
    <TD width="5%" >&nbsp;</TD>
    <TD>&nbsp; </TD>
    <TD vAlign=bottom  width="1%">&nbsp;</TD>
    <TD vAlign=bottom width="12%">&nbsp; </TD>
    <TD vAlign=bottom  width="2%">&nbsp;</TD>
    <TD vAlign=bottom  width="1%">&nbsp;</TD>
    <TD vAlign=bottom width="12%">&nbsp; </TD>
    <TD vAlign=bottom  width="2%">&nbsp;</TD>
    <TD vAlign=bottom  width="1%">&nbsp;</TD>
    <TD vAlign=bottom width="12%">&nbsp; </TD>
    <TD vAlign=bottom  width="2%">&nbsp;</TD>
    <TD vAlign=bottom  width="1%">&nbsp;</TD>
    <TD vAlign=bottom width="12%">&nbsp; </TD>
    <TD vAlign=bottom  width="2%">&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD width="5%" >&nbsp;</TD>
    <TD bgColor=#e6efff align=left>Cost of inventory and export duties </TD>
    <TD bgColor=#e6efff vAlign=bottom  width="1%"
    align=left>&nbsp;</TD>
    <TD bgColor=#e6efff vAlign=bottom width="12%" align=right>(79,380</TD>
    <TD bgColor=#e6efff vAlign=bottom  width="2%" align=left>)
</TD>
    <TD bgColor=#e6efff vAlign=bottom  width="1%"
    align=left>&nbsp;</TD>
    <TD bgColor=#e6efff vAlign=bottom width="12%" align=right>- </TD>
    <TD bgColor=#e6efff vAlign=bottom  width="2%"
    align=left>&nbsp;</TD>
    <TD bgColor=#e6efff vAlign=bottom  width="1%"
    align=left>&nbsp;</TD>
    <TD bgColor=#e6efff vAlign=bottom width="12%" align=right>- </TD>
    <TD bgColor=#e6efff vAlign=bottom  width="2%"
    align=left>&nbsp;</TD>
    <TD bgColor=#e6efff vAlign=bottom  width="1%"
    align=left>&nbsp;</TD>
    <TD bgColor=#e6efff vAlign=bottom width="12%"
align=right><B>(79,380</B></TD>
    <TD bgColor=#e6efff vAlign=bottom  width="2%" align=left>)
  </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" vAlign=bottom
    width="1%" align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom width="12%"
    align=right>(16,546</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom
    width="2%" align=left>) </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom
    width="1%" align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom width="12%"
    align=right>- </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom
    width="2%" align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom
    width="1%" align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom width="12%"
    align=right>- </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom
    width="2%" align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom
    width="1%" align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom width="12%"
    align=right><B>(16,546</B></TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom
    width="2%" align=left>) </TD></TR>
  <TR vAlign=top>
    <TD width="5%" >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff
      align=left>Cost of sales </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff vAlign=bottom
     width="1%" align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff vAlign=bottom
    width="12%" align=right>(95,926</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff vAlign=bottom
     width="2%" align=left>) </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff vAlign=bottom
     width="1%" align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff vAlign=bottom
    width="12%" align=right>- </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff vAlign=bottom
     width="2%" align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff vAlign=bottom
     width="1%" align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff vAlign=bottom
    width="12%" align=right>- </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff vAlign=bottom
     width="2%" align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff vAlign=bottom
     width="1%" align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff vAlign=bottom
    width="12%" align=right><B>(95,926</B></TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff vAlign=bottom
     width="2%" align=left>) </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" vAlign=bottom
    width="1%" align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" vAlign=bottom width="12%"
    align=right>51,919 </TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" vAlign=bottom
    width="2%" align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" vAlign=bottom
    width="1%" align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" vAlign=bottom width="12%"
    align=right>- </TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" vAlign=bottom
    width="2%" align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" vAlign=bottom
    width="1%" align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" vAlign=bottom width="12%"
    align=right>- </TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" vAlign=bottom
    width="2%" align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" vAlign=bottom
    width="1%" align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" vAlign=bottom width="12%"
    align=right><B>51,919 </B></TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" vAlign=bottom
    width="2%" align=left>&nbsp;</TD></TR>
  <TR>
    <TD width="5%" >&nbsp;</TD>
    <TD bgColor=#e6efff>&nbsp; </TD>
    <TD bgColor=#e6efff vAlign=bottom  width="1%">&nbsp;</TD>
    <TD bgColor=#e6efff vAlign=bottom width="12%">&nbsp; </TD>
    <TD bgColor=#e6efff vAlign=bottom  width="2%">&nbsp;</TD>
    <TD bgColor=#e6efff vAlign=bottom  width="1%">&nbsp;</TD>
    <TD bgColor=#e6efff vAlign=bottom width="12%">&nbsp; </TD>
    <TD bgColor=#e6efff vAlign=bottom  width="2%">&nbsp;</TD>
    <TD bgColor=#e6efff vAlign=bottom  width="1%">&nbsp;</TD>
    <TD bgColor=#e6efff vAlign=bottom width="12%">&nbsp; </TD>
    <TD bgColor=#e6efff vAlign=bottom  width="2%">&nbsp;</TD>
    <TD bgColor=#e6efff vAlign=bottom  width="1%">&nbsp;</TD>
    <TD bgColor=#e6efff vAlign=bottom width="12%">&nbsp; </TD>
    <TD bgColor=#e6efff vAlign=bottom  width="2%">&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD width="5%" >&nbsp;</TD>
    <TD align=left>Operating income (loss) </TD>
    <TD vAlign=bottom  width="1%" align=left>&nbsp;</TD>
    <TD vAlign=bottom width="12%" align=right>47,691 </TD>
    <TD vAlign=bottom  width="2%" align=left>&nbsp;</TD>
    <TD vAlign=bottom  width="1%" align=left>&nbsp;</TD>
    <TD vAlign=bottom width="12%" align=right>(1,143</TD>
    <TD vAlign=bottom  width="2%" align=left>) </TD>
    <TD vAlign=bottom  width="1%" align=left>&nbsp;</TD>
    <TD vAlign=bottom width="12%" align=right>(23,983</TD>
    <TD vAlign=bottom  width="2%" align=left>) </TD>
    <TD vAlign=bottom  width="1%" align=left>&nbsp;</TD>
    <TD vAlign=bottom width="12%" align=right><B>22,565 </B></TD>
    <TD vAlign=bottom  width="2%" align=left>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD width="5%" >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff
      align=left>Income before income tax </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff vAlign=bottom
     width="1%" align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff vAlign=bottom
    width="12%" align=right>39,126 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff vAlign=bottom
     width="2%" align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff vAlign=bottom
     width="1%" align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff vAlign=bottom
    width="12%" align=right>46,040 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff vAlign=bottom
     width="2%" align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff vAlign=bottom
     width="1%" align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff vAlign=bottom
    width="12%" align=right>26,359 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff vAlign=bottom
     width="2%" align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff vAlign=bottom
     width="1%" align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff vAlign=bottom
    width="12%" align=right><B>111,525 </B></TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff vAlign=bottom
     width="2%" align=left>&nbsp;</TD></TR>
  <TR>
    <TD width="5%" >&nbsp;</TD>
    <TD>&nbsp; </TD>
    <TD vAlign=bottom  width="1%">&nbsp;</TD>
    <TD vAlign=bottom width="12%">&nbsp; </TD>
    <TD vAlign=bottom  width="2%">&nbsp;</TD>
    <TD vAlign=bottom  width="1%">&nbsp;</TD>
    <TD vAlign=bottom width="12%">&nbsp; </TD>
    <TD vAlign=bottom  width="2%">&nbsp;</TD>
    <TD vAlign=bottom  width="1%">&nbsp;</TD>
    <TD vAlign=bottom width="12%">&nbsp; </TD>
    <TD vAlign=bottom  width="2%">&nbsp;</TD>
    <TD vAlign=bottom  width="1%">&nbsp;</TD>
    <TD vAlign=bottom width="12%">&nbsp; </TD>
    <TD vAlign=bottom  width="2%">&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD width="5%" >&nbsp;</TD>
    <TD bgColor=#e6efff align=left>Interest income and other finance income
</TD>
    <TD bgColor=#e6efff vAlign=bottom  width="1%"
    align=left>&nbsp;</TD>
    <TD bgColor=#e6efff vAlign=bottom width="12%" align=right>- </TD>
    <TD bgColor=#e6efff vAlign=bottom  width="2%"
    align=left>&nbsp;</TD>
    <TD bgColor=#e6efff vAlign=bottom  width="1%"
    align=left>&nbsp;</TD>
    <TD bgColor=#e6efff vAlign=bottom width="12%" align=right>- </TD>
    <TD bgColor=#e6efff vAlign=bottom  width="2%"
    align=left>&nbsp;</TD>
    <TD bgColor=#e6efff vAlign=bottom  width="1%"
    align=left>&nbsp;</TD>
    <TD bgColor=#e6efff vAlign=bottom width="12%" align=right>2,291 </TD>
    <TD bgColor=#e6efff vAlign=bottom  width="2%"
    align=left>&nbsp;</TD>
    <TD bgColor=#e6efff vAlign=bottom  width="1%"
    align=left>&nbsp;</TD>
    <TD bgColor=#e6efff vAlign=bottom width="12%" align=right><B>2,291 </B></TD>
    <TD bgColor=#e6efff vAlign=bottom  width="2%"
    align=left>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD width="5%" >&nbsp;</TD>
    <TD align=left>Interest expense and other finance costs </TD>
    <TD vAlign=bottom  width="1%" align=left>&nbsp;</TD>
    <TD vAlign=bottom width="12%" align=right>(1,542</TD>
    <TD vAlign=bottom  width="2%" align=left>) </TD>
    <TD vAlign=bottom  width="1%" align=left>&nbsp;</TD>
    <TD vAlign=bottom width="12%" align=right>(114</TD>
    <TD vAlign=bottom  width="2%" align=left>) </TD>
    <TD vAlign=bottom  width="1%" align=left>&nbsp;</TD>
    <TD vAlign=bottom width="12%" align=right>(15,736</TD>
    <TD vAlign=bottom  width="2%" align=left>) </TD>
    <TD vAlign=bottom  width="1%" align=left>&nbsp;</TD>
    <TD vAlign=bottom width="12%" align=right><B>(17,392</B></TD>
    <TD vAlign=bottom  width="2%" align=left>) </TD></TR>
  <TR vAlign=top>
    <TD width="5%" >&nbsp;</TD>
    <TD bgColor=#e6efff align=left>Write-off of mineral property costs </TD>
    <TD bgColor=#e6efff vAlign=bottom  width="1%"
    align=left>&nbsp;</TD>
    <TD bgColor=#e6efff vAlign=bottom width="12%" align=right>- </TD>
    <TD bgColor=#e6efff vAlign=bottom  width="2%"
    align=left>&nbsp;</TD>
    <TD bgColor=#e6efff vAlign=bottom  width="1%"
    align=left>&nbsp;</TD>
    <TD bgColor=#e6efff vAlign=bottom width="12%" align=right>(4,624</TD>
    <TD bgColor=#e6efff vAlign=bottom  width="2%" align=left>)
</TD>
    <TD bgColor=#e6efff vAlign=bottom  width="1%"
    align=left>&nbsp;</TD>
    <TD bgColor=#e6efff vAlign=bottom width="12%" align=right>- </TD>
    <TD bgColor=#e6efff vAlign=bottom  width="2%"
    align=left>&nbsp;</TD>
    <TD bgColor=#e6efff vAlign=bottom  width="1%"
    align=left>&nbsp;</TD>
    <TD bgColor=#e6efff vAlign=bottom width="12%" align=right><B>(4,624</B></TD>
    <TD bgColor=#e6efff vAlign=bottom  width="2%" align=left>)
  </TD></TR>
  <TR vAlign=top>
    <TD width="5%" >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>Income tax expense
    </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom
    width="1%" align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom width="12%"
    align=right>(21,050</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom
    width="2%" align=left>) </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom
    width="1%" align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom width="12%"
    align=right>(9,524</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom
    width="2%" align=left>) </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom
    width="1%" align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom width="12%"
    align=right>(823</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom
    width="2%" align=left>) </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom
    width="1%" align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom width="12%"
    align=right><B>(31,397</B></TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom
    width="2%" align=left>) </TD></TR>
  <TR>
    <TD width="5%" >&nbsp;</TD>
    <TD bgColor=#e6efff>&nbsp; </TD>
    <TD bgColor=#e6efff vAlign=bottom  width="1%">&nbsp;</TD>
    <TD bgColor=#e6efff vAlign=bottom width="12%">&nbsp; </TD>
    <TD bgColor=#e6efff vAlign=bottom  width="2%">&nbsp;</TD>
    <TD bgColor=#e6efff vAlign=bottom  width="1%">&nbsp;</TD>
    <TD bgColor=#e6efff vAlign=bottom width="12%">&nbsp; </TD>
    <TD bgColor=#e6efff vAlign=bottom  width="2%">&nbsp;</TD>
    <TD bgColor=#e6efff vAlign=bottom  width="1%">&nbsp;</TD>
    <TD bgColor=#e6efff vAlign=bottom width="12%">&nbsp; </TD>
    <TD bgColor=#e6efff vAlign=bottom  width="2%">&nbsp;</TD>
    <TD bgColor=#e6efff vAlign=bottom  width="1%">&nbsp;</TD>
    <TD bgColor=#e6efff vAlign=bottom width="12%">&nbsp; </TD>
    <TD bgColor=#e6efff vAlign=bottom  width="2%">&nbsp;</TD></TR>
  <TR>
    <TD width="5%" >&nbsp;</TD>
    <TD>&nbsp; </TD>
    <TD vAlign=bottom  width="1%">&nbsp;</TD>
    <TD vAlign=bottom width="12%">&nbsp; </TD>
    <TD vAlign=bottom  width="2%">&nbsp;</TD>
    <TD vAlign=bottom  width="1%">&nbsp;</TD>
    <TD vAlign=bottom width="12%">&nbsp; </TD>
    <TD vAlign=bottom  width="2%">&nbsp;</TD>
    <TD vAlign=bottom  width="1%">&nbsp;</TD>
    <TD vAlign=bottom width="12%">&nbsp; </TD>
    <TD vAlign=bottom  width="2%">&nbsp;</TD>
    <TD vAlign=bottom  width="1%">&nbsp;</TD>
    <TD vAlign=bottom width="12%">&nbsp; </TD>
    <TD vAlign=bottom  width="2%">&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD width="5%" >&nbsp;</TD>
    <TD bgColor=#e6efff align=left>Total assets </TD>
    <TD bgColor=#e6efff vAlign=bottom  width="1%"
    align=left>&nbsp;</TD>
    <TD bgColor=#e6efff vAlign=bottom width="12%" align=right>568,212 </TD>
    <TD bgColor=#e6efff vAlign=bottom  width="2%"
    align=left>&nbsp;</TD>
    <TD bgColor=#e6efff vAlign=bottom  width="1%"
    align=left>&nbsp;</TD>
    <TD bgColor=#e6efff vAlign=bottom width="12%" align=right>232,038 </TD>
    <TD bgColor=#e6efff vAlign=bottom  width="2%"
    align=left>&nbsp;</TD>
    <TD bgColor=#e6efff vAlign=bottom  width="1%"
    align=left>&nbsp;</TD>
    <TD bgColor=#e6efff vAlign=bottom width="12%" align=right>475,852 </TD>
    <TD bgColor=#e6efff vAlign=bottom  width="2%"
    align=left>&nbsp;</TD>
    <TD bgColor=#e6efff vAlign=bottom  width="1%"
    align=left>&nbsp;</TD>
    <TD bgColor=#e6efff vAlign=bottom width="12%" align=right><B>1,276,102
    </B></TD>
    <TD bgColor=#e6efff vAlign=bottom  width="2%"
    align=left>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD width="5%" >&nbsp;</TD>
    <TD align=left>Non-current assets </TD>
    <TD vAlign=bottom  width="1%" align=left>&nbsp;</TD>
    <TD vAlign=bottom width="12%" align=right>459,789 </TD>
    <TD vAlign=bottom  width="2%" align=left>&nbsp;</TD>
    <TD vAlign=bottom  width="1%" align=left>&nbsp;</TD>
    <TD vAlign=bottom width="12%" align=right>202,752 </TD>
    <TD vAlign=bottom  width="2%" align=left>&nbsp;</TD>
    <TD vAlign=bottom  width="1%" align=left>&nbsp;</TD>
    <TD vAlign=bottom width="12%" align=right>136,885 </TD>
    <TD vAlign=bottom  width="2%" align=left>&nbsp;</TD>
    <TD vAlign=bottom  width="1%" align=left>&nbsp;</TD>
    <TD vAlign=bottom width="12%" align=right><B>799,426 </B></TD>
    <TD vAlign=bottom  width="2%" align=left>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD width="5%" >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff
      align=left>Total liabilities </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff vAlign=bottom
     width="1%" align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff vAlign=bottom
    width="12%" align=right>(94,395</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff vAlign=bottom
     width="2%" align=left>) </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff vAlign=bottom
     width="1%" align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff vAlign=bottom
    width="12%" align=right>(22,355</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff vAlign=bottom
     width="2%" align=left>) </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff vAlign=bottom
     width="1%" align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff vAlign=bottom
    width="12%" align=right>(175,377</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff vAlign=bottom
     width="2%" align=left>) </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff vAlign=bottom
     width="1%" align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff vAlign=bottom
    width="12%" align=right><B>(292,127</B></TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff vAlign=bottom
     width="2%" align=left>) </TD></TR></TABLE>
<P style="MARGIN-LEFT: 5%" align=justify><SUP>(i) </SUP>Other reconciling items
refer to items that are not reported as part of segment performance as they are
managed on a group basis. <BR><SUP>(ii) </SUP>Includes the equity-accounted
investment in Pretium. </P>
<TABLE
style="BORDER-COLOR: black; BORDER-COLLAPSE: collapse; FONT-SIZE: 10pt; "
border=0 cellSpacing=0 cellPadding=0 width="100%">
  <TR vAlign=top>
    <TD style="BORDER-TOP: #000000 1px solid" align=right>50 | <FONT
      color=#7e7e7e>P a g e</FONT> </TD>
  </TR>
</TABLE>
<HR style="PAGE-BREAK-AFTER: always" align=center color=black SIZE=5
width="100%" noShade>
<A name=page_51></A><BR>
<TABLE
style="BORDER-COLOR: black; BORDER-COLLAPSE: collapse; FONT-SIZE: 10pt; "
border=0 cellSpacing=0 cellPadding=0 width="100%">
  <TR vAlign=top>
    <TD align=left><FONT size=4><B>Silver Standard Resources Inc.</B> </FONT></TD>
  </TR>
  <TR vAlign=top>
    <TD align=left><FONT size=3>Notes to the Consolidated Financial Statements
      </FONT></TD>
  </TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left><FONT
      size=3>December 31, 2011 and 2010 and January 1, 2010 </FONT></TD>
  </TR>
  <TR vAlign=top>
    <TD align=left>(tabular amounts expressed in thousands of United States dollars
      unless otherwise stated) </TD>
  </TR>
</TABLE>
<BR>
<TABLE
style="BORDER-COLOR: black; BORDER-COLLAPSE: collapse; FONT-SIZE: 10pt; "
border=0 cellSpacing=0 cellPadding=0 width="100%" BCLLIST>

  <TR>
    <TD vAlign=top width="5%"><B>21.</B> </TD>
    <TD>
      <P align=justify><B>OPERATING SEGMENTS
(Cont&#146;d)</B></P></TD></TR></TABLE><BR>
<TABLE
style="BORDER-COLOR: black; BORDER-COLLAPSE: collapse; FONT-SIZE: 10pt; "
border=0 cellSpacing=0 cellPadding=0 width="100%">

  <TR vAlign=top>
    <TD width="5%"  >&nbsp;</TD>
    <TD align=left>&nbsp; </TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="12%" align=right nowrap><B>Pirquitas mine</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>Exploration and</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>Other</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>Total</B> </TD>
  <TD  width="2%" 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 width="12%" align=left nowrap>&nbsp; </TD>
    <TD  width="2%" align=left nowrap>&nbsp;</TD>
    <TD  width="1%" align=left nowrap>&nbsp;</TD>
    <TD width="12%" 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="12%" 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="12%" align=left nowrap>&nbsp; </TD>
  <TD  width="2%" align=left>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD width="5%" >&nbsp;</TD>
    <TD align=left><B>December 31, 2010</B> </TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="12%" align=left nowrap>&nbsp; </TD>
    <TD  width="2%" align=left nowrap>&nbsp;</TD>
    <TD  width="1%" align=left nowrap>&nbsp;</TD>
    <TD width="12%" 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="12%" 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="12%" align=left nowrap>&nbsp; </TD>
  <TD  width="2%" 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 style="BORDER-BOTTOM: #000000 1px solid"  width="1%"
    align=right>&nbsp;</TD>
    <TD width="12%" align=right nowrap style="BORDER-BOTTOM: #000000 1px solid">$</TD>
    <TD  width="2%"
    align=right nowrap style="BORDER-BOTTOM: #000000 1px solid">&nbsp;</TD>
    <TD  width="1%"
    align=right nowrap style="BORDER-BOTTOM: #000000 1px solid">&nbsp;</TD>
    <TD width="12%" align=right nowrap style="BORDER-BOTTOM: #000000 1px solid">$</TD>
    <TD  width="2%"
    align=right nowrap style="BORDER-BOTTOM: #000000 1px solid">&nbsp;</TD>
    <TD  width="1%"
    align=right nowrap style="BORDER-BOTTOM: #000000 1px solid">&nbsp;</TD>
    <TD width="12%" align=right nowrap style="BORDER-BOTTOM: #000000 1px solid">$</TD>
    <TD  width="2%"
    align=right nowrap style="BORDER-BOTTOM: #000000 1px solid">&nbsp;</TD>
    <TD  width="1%"
    align=right nowrap style="BORDER-BOTTOM: #000000 1px solid">&nbsp;</TD>
    <TD width="12%" align=right nowrap style="BORDER-BOTTOM: #000000 1px solid">$</TD>
  <TD style="BORDER-BOTTOM: #000000 1px solid"  width="2%"
    align=right>&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD width="5%" >&nbsp;</TD>
    <TD bgColor=#e6efff align=left>Revenue from external customers </TD>
    <TD bgColor=#e6efff  width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="12%" align=right>112,256 </TD>
    <TD bgColor=#e6efff  width="2%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff  width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="12%" align=right>- </TD>
    <TD bgColor=#e6efff  width="2%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff  width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="12%" align=right>- </TD>
    <TD bgColor=#e6efff  width="2%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff  width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="12%" align=right>112,256 </TD>
    <TD bgColor=#e6efff  width="2%" align=left>&nbsp;</TD></TR>
  <TR>
    <TD width="5%" >&nbsp;</TD>
    <TD>&nbsp; </TD>
    <TD  width="1%">&nbsp;</TD>
    <TD width="12%">&nbsp; </TD>
    <TD  width="2%">&nbsp;</TD>
    <TD  width="1%">&nbsp;</TD>
    <TD width="12%">&nbsp; </TD>
    <TD  width="2%">&nbsp;</TD>
    <TD  width="1%">&nbsp;</TD>
    <TD width="12%">&nbsp; </TD>
    <TD  width="2%">&nbsp;</TD>
    <TD  width="1%">&nbsp;</TD>
    <TD width="12%">&nbsp; </TD>
    <TD  width="2%">&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD width="5%" >&nbsp;</TD>
    <TD bgColor=#e6efff align=left>Cost of inventory and export duties </TD>
    <TD bgColor=#e6efff  width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="12%" align=right>(75,971</TD>
    <TD bgColor=#e6efff  width="2%" align=left>) </TD>
    <TD bgColor=#e6efff  width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="12%" align=right>- </TD>
    <TD bgColor=#e6efff  width="2%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff  width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="12%" align=right>- </TD>
    <TD bgColor=#e6efff  width="2%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff  width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="12%" align=right>(75,971</TD>
    <TD bgColor=#e6efff  width="2%" align=left>) </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"  width="1%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="12%"
      align=right>(22,151</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="2%"
    align=left>) </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="1%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="12%" align=right>- </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="2%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="1%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="12%" align=right>- </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="2%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="1%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="12%"
      align=right>(22,151</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="2%"
    align=left>) </TD></TR>
  <TR vAlign=top>
    <TD width="5%" >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff
      align=left>Cost of sales </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff
    width="1%" align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff width="12%"
    align=right>(98,122</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff
    width="2%" align=left>) </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff
    width="1%" align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff width="12%"
    align=right>- </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff
    width="2%" align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff
    width="1%" align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff width="12%"
    align=right>- </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff
    width="2%" align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff
    width="1%" align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff width="12%"
    align=right>(98,122</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff
    width="2%" align=left>) </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>
    <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" bgColor=#e6efff
      align=left>Income from mine operations </TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" bgColor=#e6efff
    width="1%" align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" bgColor=#e6efff width="12%"
    align=right>14,134 </TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" bgColor=#e6efff
    width="2%" align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" bgColor=#e6efff
    width="1%" align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" bgColor=#e6efff width="12%"
    align=right>- </TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" bgColor=#e6efff
    width="2%" align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" bgColor=#e6efff
    width="1%" align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" bgColor=#e6efff width="12%"
    align=right>- </TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" bgColor=#e6efff
    width="2%" align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" bgColor=#e6efff
    width="1%" align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" bgColor=#e6efff width="12%"
    align=right>14,134 </TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" bgColor=#e6efff
    width="2%" align=left>&nbsp;</TD></TR>
  <TR>
    <TD width="5%" >&nbsp;</TD>
    <TD>&nbsp; </TD>
    <TD  width="1%">&nbsp;</TD>
    <TD width="12%">&nbsp; </TD>
    <TD  width="2%">&nbsp;</TD>
    <TD  width="1%">&nbsp;</TD>
    <TD width="12%">&nbsp; </TD>
    <TD  width="2%">&nbsp;</TD>
    <TD  width="1%">&nbsp;</TD>
    <TD width="12%">&nbsp; </TD>
    <TD  width="2%">&nbsp;</TD>
    <TD  width="1%">&nbsp;</TD>
    <TD width="12%">&nbsp; </TD>
    <TD  width="2%">&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD width="5%" >&nbsp;</TD>
    <TD bgColor=#e6efff align=left>Operating income (loss) </TD>
    <TD bgColor=#e6efff  width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="12%" align=right>12,525 </TD>
    <TD bgColor=#e6efff  width="2%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff  width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="12%" align=right>(377</TD>
    <TD bgColor=#e6efff  width="2%" align=left>) </TD>
    <TD bgColor=#e6efff  width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="12%" align=right>(29,310</TD>
    <TD bgColor=#e6efff  width="2%" align=left>) </TD>
    <TD bgColor=#e6efff  width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="12%" align=right>(17,162</TD>
    <TD bgColor=#e6efff  width="2%" align=left>) </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"  width="1%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="12%" align=right>7,552
    </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="2%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="1%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="12%"
    align=right>(596</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="2%"
    align=left>) </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="1%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="12%"
      align=right>363,692 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="2%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="1%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="12%"
      align=right>370,648 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="2%"
    align=left>&nbsp;</TD></TR>
  <TR>
    <TD width="5%" >&nbsp;</TD>
    <TD bgColor=#e6efff>&nbsp; </TD>
    <TD bgColor=#e6efff  width="1%">&nbsp;</TD>
    <TD bgColor=#e6efff width="12%">&nbsp; </TD>
    <TD bgColor=#e6efff  width="2%">&nbsp;</TD>
    <TD bgColor=#e6efff  width="1%">&nbsp;</TD>
    <TD bgColor=#e6efff width="12%">&nbsp; </TD>
    <TD bgColor=#e6efff  width="2%">&nbsp;</TD>
    <TD bgColor=#e6efff  width="1%">&nbsp;</TD>
    <TD bgColor=#e6efff width="12%">&nbsp; </TD>
    <TD bgColor=#e6efff  width="2%">&nbsp;</TD>
    <TD bgColor=#e6efff  width="1%">&nbsp;</TD>
    <TD bgColor=#e6efff width="12%">&nbsp; </TD>
    <TD bgColor=#e6efff  width="2%">&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD width="5%" >&nbsp;</TD>
    <TD align=left>Interest income and other finance income </TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="12%" align=right>- </TD>
    <TD  width="2%" align=left>&nbsp;</TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="12%" align=right>- </TD>
    <TD  width="2%" align=left>&nbsp;</TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="12%" align=right>1,400 </TD>
    <TD  width="2%" align=left>&nbsp;</TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="12%" align=right>1,400 </TD>
    <TD  width="2%" align=left>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD width="5%" >&nbsp;</TD>
    <TD bgColor=#e6efff align=left>Interest expense and other finance costs
</TD>
    <TD bgColor=#e6efff  width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="12%" align=right>(1,491</TD>
    <TD bgColor=#e6efff  width="2%" align=left>) </TD>
    <TD bgColor=#e6efff  width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="12%" align=right>(220</TD>
    <TD bgColor=#e6efff  width="2%" align=left>) </TD>
    <TD bgColor=#e6efff  width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="12%" align=right>(14,652</TD>
    <TD bgColor=#e6efff  width="2%" align=left>) </TD>
    <TD bgColor=#e6efff  width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="12%" align=right>(16,363</TD>
    <TD bgColor=#e6efff  width="2%" align=left>) </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"  width="1%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="12%"
    align=right>(5,712</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="2%"
    align=left>) </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="1%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="12%" align=right>654
    </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="2%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="1%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="12%"
      align=right>(27,135</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="2%"
    align=left>) </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="1%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="12%"
      align=right>(32,193</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="2%"
    align=left>) </TD></TR>
  <TR>
    <TD width="5%" >&nbsp;</TD>
    <TD bgColor=#e6efff>&nbsp; </TD>
    <TD bgColor=#e6efff  width="1%">&nbsp;</TD>
    <TD bgColor=#e6efff width="12%">&nbsp; </TD>
    <TD bgColor=#e6efff  width="2%">&nbsp;</TD>
    <TD bgColor=#e6efff  width="1%">&nbsp;</TD>
    <TD bgColor=#e6efff width="12%">&nbsp; </TD>
    <TD bgColor=#e6efff  width="2%">&nbsp;</TD>
    <TD bgColor=#e6efff  width="1%">&nbsp;</TD>
    <TD bgColor=#e6efff width="12%">&nbsp; </TD>
    <TD bgColor=#e6efff  width="2%">&nbsp;</TD>
    <TD bgColor=#e6efff  width="1%">&nbsp;</TD>
    <TD bgColor=#e6efff width="12%">&nbsp; </TD>
    <TD bgColor=#e6efff  width="2%">&nbsp;</TD></TR>
  <TR>
    <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>
    <TD  width="1%">&nbsp;</TD>
    <TD width="12%">&nbsp; </TD>
    <TD  width="2%">&nbsp;</TD>
    <TD  width="1%">&nbsp;</TD>
    <TD width="12%">&nbsp; </TD>
    <TD  width="2%">&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD width="5%" >&nbsp;</TD>
    <TD bgColor=#e6efff align=left>Total assets </TD>
    <TD bgColor=#e6efff  width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="12%" align=right>452,256 </TD>
    <TD bgColor=#e6efff  width="2%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff  width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="12%" align=right>196,829 </TD>
    <TD bgColor=#e6efff  width="2%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff  width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="12%" align=right>498,905 </TD>
    <TD bgColor=#e6efff  width="2%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff  width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="12%" align=right>1,147,990 </TD>
    <TD bgColor=#e6efff  width="2%" align=left>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD width="5%" >&nbsp;</TD>
    <TD align=left>Non-current assets </TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="12%" align=right>378,352 </TD>
    <TD  width="2%" align=left>&nbsp;</TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="12%" align=right>191,698 </TD>
    <TD  width="2%" align=left>&nbsp;</TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="12%" align=right>235,886 </TD>
    <TD  width="2%" align=left>&nbsp;</TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="12%" align=right>805,936 </TD>
    <TD  width="2%" align=left>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD width="5%" >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff
      align=left>Total liabilities </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff
    width="1%" align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff width="12%"
    align=right>(56,823</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff
    width="2%" align=left>) </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff
    width="1%" align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff width="12%"
    align=right>(2,064</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff
    width="2%" align=left>) </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff
    width="1%" align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff width="12%"
    align=right>(157,243</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff
    width="2%" align=left>) </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff
    width="1%" align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff width="12%"
    align=right>(216,130</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff
    width="2%" align=left>) </TD></TR></TABLE>
<P style="MARGIN-LEFT: 5%" align=justify><SUP>(i)</SUP> Other reconciling items
refer to items that are not reported as part of segment performance as they are
managed on a group basis. </P>
<P style="MARGIN-LEFT: 5%" align=justify><B>Segment revenue by product </B></P>
<DIV align=center>
<TABLE
style="BORDER-COLOR: black; BORDER-COLLAPSE: collapse; FONT-SIZE: 10pt; "
border=0 cellSpacing=0 cellPadding=0 width="60%">

  <TR vAlign=top>
    <TD align=left >&nbsp; </TD>
    <TD width="29%" align=right><B>2011</B> </TD>
    <TD width="29%" align=right><B>2010</B> </TD></TR>
  <TR vAlign=top>
    <TD align=left >&nbsp; </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="29%"
      align=right><B>%</B> </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="29%"
      align=right><B>%</B> </TD></TR>
  <TR vAlign=top>
    <TD bgColor=#e6efff align=left >Silver </TD>
    <TD bgColor=#e6efff width="29%" align=right><B>94</B> </TD>
    <TD bgColor=#e6efff width="29%" align=right>100 </TD></TR>
  <TR vAlign=top>
    <TD align=left >Zinc </TD>
    <TD width="29%" align=right><B>6</B> </TD>
    <TD width="29%" align=right><B>-</B> </TD></TR></TABLE></DIV>
<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 are attributable to
the Pirquitas mine segment. Revenues were from a single customer based in
Switzerland. </P>
<TABLE
style="BORDER-COLOR: black; BORDER-COLLAPSE: collapse; FONT-SIZE: 10pt; "
border=0 cellSpacing=0 cellPadding=0 width="100%">
  <TR vAlign=top>
    <TD style="BORDER-TOP: #000000 1px solid" align=right>51 | <FONT
      color=#7e7e7e>P a g e</FONT> </TD>
  </TR>
</TABLE>
<HR style="PAGE-BREAK-AFTER: always" align=center color=black SIZE=5
width="100%" noShade>
<A name=page_52></A><BR>
<TABLE
style="BORDER-COLOR: black; BORDER-COLLAPSE: collapse; FONT-SIZE: 10pt; "
border=0 cellSpacing=0 cellPadding=0 width="100%">
  <TR vAlign=top>
    <TD align=left><FONT size=4><B>Silver Standard Resources Inc.</B> </FONT></TD>
  </TR>
  <TR vAlign=top>
    <TD align=left><FONT size=3>Notes to the Consolidated Financial Statements
      </FONT></TD>
  </TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left><FONT
      size=3>December 31, 2011 and 2010 and January 1, 2010 </FONT></TD>
  </TR>
  <TR vAlign=top>
    <TD align=left>(tabular amounts expressed in thousands of United States dollars
      unless otherwise stated) </TD>
  </TR>
</TABLE>
<BR>
<TABLE
style="BORDER-COLOR: black; BORDER-COLLAPSE: collapse; FONT-SIZE: 10pt; "
border=0 cellSpacing=0 cellPadding=0 width="100%" BCLLIST>

  <TR>
    <TD vAlign=top width="5%"><B>21.</B> </TD>
    <TD>
      <P align=justify><B>OPERATING SEGMENTS (Cont&#146;d) Non-current assets by
      location</B></P></TD></TR></TABLE><BR>
<DIV align=center>
<TABLE
style="BORDER-COLOR: black; BORDER-COLLAPSE: collapse; FONT-SIZE: 10pt; "
border=0 cellSpacing=0 cellPadding=0 width="60%">

  <TR vAlign=top>
    <TD align=left >&nbsp; </TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="22%" align=right nowrap><B>December 31, 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  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"  width="1%"
    align=right>&nbsp;</TD>
    <TD width="22%" align=right nowrap style="BORDER-BOTTOM: #000000 1px solid">$</TD>
    <TD  width="2%"
    align=right nowrap style="BORDER-BOTTOM: #000000 1px solid">&nbsp;</TD>
    <TD  width="1%"
    align=right nowrap style="BORDER-BOTTOM: #000000 1px solid">&nbsp;</TD>
    <TD width="22%" align=right nowrap style="BORDER-BOTTOM: #000000 1px solid">$</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="2%"
    align=right>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD bgColor=#e6efff align=left >Canada </TD>
    <TD bgColor=#e6efff  width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="22%" align=right><B>138,205</B> </TD>
    <TD bgColor=#e6efff  width="2%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff  width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="22%" align=right>235,563 </TD>
    <TD bgColor=#e6efff  width="2%" align=left>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left >Argentina </TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="22%" align=right><B>481,654</B> </TD>
    <TD  width="2%" align=left>&nbsp;</TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="22%" align=right>397,447 </TD>
    <TD  width="2%" align=left>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD bgColor=#e6efff align=left >Mexico </TD>
    <TD bgColor=#e6efff  width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="22%" align=right><B>108,674</B> </TD>
    <TD bgColor=#e6efff  width="2%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff  width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="22%" align=right>89,540 </TD>
    <TD bgColor=#e6efff  width="2%" align=left>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left >Peru </TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="22%" align=right><B>50,950</B> </TD>
    <TD  width="2%" align=left>&nbsp;</TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="22%" align=right>43,456 </TD>
    <TD  width="2%" align=left>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD bgColor=#e6efff align=left >United States </TD>
    <TD bgColor=#e6efff  width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="22%" align=right><B>10,942</B> </TD>
    <TD bgColor=#e6efff  width="2%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff  width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="22%" align=right>10,419 </TD>
    <TD bgColor=#e6efff  width="2%" align=left>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left >Australia </TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="22%" align=right><B>-</B> </TD>
    <TD  width="2%" align=left>&nbsp;</TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="22%" align=right>19,970 </TD>
    <TD  width="2%" align=left>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff align=left
    >Chile </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff
    width="1%" align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff width="22%"
    align=right><B>9,001</B> </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff
    width="2%" align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff
    width="1%" align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff width="22%"
    align=right>9,541 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff
    width="2%" align=left>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=left
      >Total </TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid"  width="1%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" width="22%"
      align=right><B>799,426</B> </TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid"  width="2%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid"  width="1%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" width="22%"
      align=right>805,936 </TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid"  width="2%"
    align=left>&nbsp;</TD></TR></TABLE></DIV><BR>
<TABLE
style="BORDER-COLOR: black; BORDER-COLLAPSE: collapse; FONT-SIZE: 10pt; "
border=0 cellSpacing=0 cellPadding=0 width="100%" BCLLIST>

  <TR>
    <TD vAlign=top width="5%"><B>22.</B> </TD>
    <TD>
      <P align=justify><B>FINANCIAL INSTRUMENTS</B></P></TD></TR>
  <TR>
    <TD width="5%">&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
  <TR>
    <TD width="5%"></TD>
    <TD>
      <P align=justify>The Company&#146;s financial instruments include cash and cash
      equivalents, trade and other receivables, other financial assets, trade
      and other payables, warrant liabilities and convertible
  notes.</P></TD></TR></TABLE>
<P style="MARGIN-LEFT: 5%" align=justify><B>a)</B><B> </B><B>Financial assets
and liabilities by category </B></P>
<DIV align=center>
<TABLE
style="BORDER-COLOR: black; BORDER-COLLAPSE: collapse; FONT-SIZE: 10pt; "
border=0 cellSpacing=0 cellPadding=0 width="90%">

  <TR vAlign=top>
    <TD align=left >&nbsp; </TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="10%" align=right nowrap><B>Loans and</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=right nowrap><B>Available</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 financial</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>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left ><B>At December 31, 2011</B> </TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="10%" align=right nowrap><B>receivables</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>FVTPL</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>for sale</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>liabilities</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  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"  width="1%"
    align=right>&nbsp;</TD>
    <TD width="10%" align=right nowrap style="BORDER-BOTTOM: #000000 1px solid">$</TD>
    <TD  width="2%"
    align=right nowrap style="BORDER-BOTTOM: #000000 1px solid">&nbsp;</TD>
    <TD  width="1%"
    align=right nowrap style="BORDER-BOTTOM: #000000 1px solid">&nbsp;</TD>
    <TD width="10%" align=right nowrap style="BORDER-BOTTOM: #000000 1px solid">$</TD>
    <TD  width="2%"
    align=right nowrap style="BORDER-BOTTOM: #000000 1px solid">&nbsp;</TD>
    <TD  width="1%"
    align=right nowrap style="BORDER-BOTTOM: #000000 1px solid">&nbsp;</TD>
    <TD width="10%" align=right nowrap style="BORDER-BOTTOM: #000000 1px solid">$</TD>
    <TD  width="2%"
    align=right nowrap style="BORDER-BOTTOM: #000000 1px solid">&nbsp;</TD>
    <TD  width="1%"
    align=right nowrap style="BORDER-BOTTOM: #000000 1px solid">&nbsp;</TD>
    <TD width="10%" align=right nowrap style="BORDER-BOTTOM: #000000 1px solid">$</TD>
    <TD  width="2%"
    align=right nowrap style="BORDER-BOTTOM: #000000 1px solid">&nbsp;</TD>
    <TD  width="1%"
    align=right nowrap style="BORDER-BOTTOM: #000000 1px solid">&nbsp;</TD>
    <TD width="10%" align=right nowrap style="BORDER-BOTTOM: #000000 1px solid">$</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="2%"
    align=right>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD bgColor=#e6efff align=left ><B>Financial assets</B> </TD>
    <TD bgColor=#e6efff  width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="10%" align=left>&nbsp; </TD>
    <TD bgColor=#e6efff  width="2%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff  width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="10%" align=left>&nbsp; </TD>
    <TD bgColor=#e6efff  width="2%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff  width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="10%" align=left>&nbsp; </TD>
    <TD bgColor=#e6efff  width="2%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff  width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="10%" align=left>&nbsp; </TD>
    <TD bgColor=#e6efff  width="2%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff  width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="10%" align=left>&nbsp; </TD>
    <TD bgColor=#e6efff  width="2%" align=left>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left >Cash and cash equivalents </TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="10%" align=right>329,055 </TD>
    <TD  width="2%" align=left>&nbsp;</TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="10%" align=right><B>-</B> </TD>
    <TD  width="2%" align=left>&nbsp;</TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="10%" align=right>- </TD>
    <TD  width="2%" align=left>&nbsp;</TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="10%" align=right>- </TD>
    <TD  width="2%" align=left>&nbsp;</TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="10%" align=right>329,055 </TD>
    <TD  width="2%" align=left>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD bgColor=#e6efff align=left >Trade and other receivables
    </TD>
    <TD bgColor=#e6efff  width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="10%" align=right>5,045 </TD>
    <TD bgColor=#e6efff  width="2%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff  width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="10%" align=right>- </TD>
    <TD bgColor=#e6efff  width="2%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff  width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="10%" align=right>- </TD>
    <TD bgColor=#e6efff  width="2%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff  width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="10%" align=right>- </TD>
    <TD bgColor=#e6efff  width="2%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff  width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="10%" align=right>5,045 </TD>
    <TD bgColor=#e6efff  width="2%" align=left>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left
      >Other financial assets <SUP>(3)</SUP> </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="1%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="10%" align=right>1,768
    </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="2%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="1%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="10%" align=right>- </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="2%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="1%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="10%"
      align=right>33,539 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="2%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="1%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="10%" align=right>- </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="2%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="1%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="10%"
      align=right>35,307 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="2%"
    align=left>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 2px solid" bgColor=#e6efff align=left
    ><B>Total financial assets</B> </TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" bgColor=#e6efff
    width="1%" align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" bgColor=#e6efff width="10%"
    align=right><B>335,868</B> </TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" bgColor=#e6efff
    width="2%" align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" bgColor=#e6efff
    width="1%" align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" bgColor=#e6efff width="10%"
    align=right><B>-</B> </TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" bgColor=#e6efff
    width="2%" align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" bgColor=#e6efff
    width="1%" align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" bgColor=#e6efff width="10%"
    align=right><B>33,539</B> </TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" bgColor=#e6efff
    width="2%" align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" bgColor=#e6efff
    width="1%" align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" bgColor=#e6efff width="10%"
    align=right><B>-</B> </TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" bgColor=#e6efff
    width="2%" align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" bgColor=#e6efff
    width="1%" align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" bgColor=#e6efff width="10%"
    align=right><B>369,407</B> </TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" bgColor=#e6efff
    width="2%" align=left>&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>
    <TD  width="1%">&nbsp;</TD>
    <TD width="10%">&nbsp; </TD>
    <TD  width="2%">&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD bgColor=#e6efff align=left ><B>Financial liabilities</B>
    </TD>
    <TD bgColor=#e6efff  width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="10%" align=left>&nbsp; </TD>
    <TD bgColor=#e6efff  width="2%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff  width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="10%" align=left>&nbsp; </TD>
    <TD bgColor=#e6efff  width="2%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff  width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="10%" align=left>&nbsp; </TD>
    <TD bgColor=#e6efff  width="2%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff  width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="10%" align=left>&nbsp; </TD>
    <TD bgColor=#e6efff  width="2%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff  width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="10%" align=left>&nbsp; </TD>
    <TD bgColor=#e6efff  width="2%" align=left>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left >Trade and other payables </TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="10%" align=right><B>-</B> </TD>
    <TD  width="2%" align=left>&nbsp;</TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="10%" align=right>- </TD>
    <TD  width="2%" align=left>&nbsp;</TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="10%" align=right>- </TD>
    <TD  width="2%" align=left>&nbsp;</TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="10%" align=right>46,898 </TD>
    <TD  width="2%" align=left>&nbsp;</TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="10%" align=right>46,898 </TD>
    <TD  width="2%" align=left>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD bgColor=#e6efff align=left >Warrant liability </TD>
    <TD bgColor=#e6efff  width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="10%" align=right><B>-</B> </TD>
    <TD bgColor=#e6efff  width="2%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff  width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="10%" align=right>7,067 </TD>
    <TD bgColor=#e6efff  width="2%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff  width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="10%" align=right>- </TD>
    <TD bgColor=#e6efff  width="2%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff  width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="10%" align=right>- </TD>
    <TD bgColor=#e6efff  width="2%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff  width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="10%" align=right>7,067 </TD>
    <TD bgColor=#e6efff  width="2%" align=left>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left
      >Convertible notes <SUP>(4)</SUP> </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="1%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="10%"
      align=right><B>-</B> </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="2%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="1%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="10%" align=right>1,242
    </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="2%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="1%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="10%" align=right>- </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="2%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="1%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="10%"
      align=right>125,313 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="2%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="1%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="10%"
      align=right>126,555 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="2%"
    align=left>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 2px solid" bgColor=#e6efff align=left
    ><B>Total financial liabilities</B> </TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" bgColor=#e6efff
    width="1%" align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" bgColor=#e6efff width="10%"
    align=right><B>-</B> </TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" bgColor=#e6efff
    width="2%" align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" bgColor=#e6efff
    width="1%" align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" bgColor=#e6efff width="10%"
    align=right><B>8,309</B> </TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" bgColor=#e6efff
    width="2%" align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" bgColor=#e6efff
    width="1%" align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" bgColor=#e6efff width="10%"
    align=right><B>-</B> </TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" bgColor=#e6efff
    width="2%" align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" bgColor=#e6efff
    width="1%" align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" bgColor=#e6efff width="10%"
    align=right><B>172,211</B> </TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" bgColor=#e6efff
    width="2%" align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" bgColor=#e6efff
    width="1%" align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" bgColor=#e6efff width="10%"
    align=right><B>180,520</B> </TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" bgColor=#e6efff
    width="2%" align=left>&nbsp;</TD></TR></TABLE></DIV><BR>
<TABLE
style="BORDER-COLOR: black; BORDER-COLLAPSE: collapse; FONT-SIZE: 10pt; "
border=0 cellSpacing=0 cellPadding=0 width="100%">
  <TR vAlign=top>
    <TD style="BORDER-TOP: #000000 1px solid" align=right>52 | <FONT
      color=#7e7e7e>P a g e</FONT> </TD>
  </TR>
</TABLE>
<HR style="PAGE-BREAK-AFTER: always" align=center color=black SIZE=5
width="100%" noShade>
<A name=page_53></A><BR>
<TABLE
style="BORDER-COLOR: black; BORDER-COLLAPSE: collapse; FONT-SIZE: 10pt; "
border=0 cellSpacing=0 cellPadding=0 width="100%">
  <TR vAlign=top>
    <TD align=left><FONT size=4><B>Silver Standard Resources Inc.</B> </FONT></TD>
  </TR>
  <TR vAlign=top>
    <TD align=left><FONT size=3>Notes to the Consolidated Financial Statements
      </FONT></TD>
  </TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left><FONT
      size=3>December 31, 2011 and 2010 and January 1, 2010 </FONT></TD>
  </TR>
  <TR vAlign=top>
    <TD align=left>(tabular amounts expressed in thousands of United States dollars
      unless otherwise stated) </TD>
  </TR>
</TABLE>
<BR>
<TABLE
style="BORDER-COLOR: black; BORDER-COLLAPSE: collapse; FONT-SIZE: 10pt; "
border=0 cellSpacing=0 cellPadding=0 width="100%" BCLLIST>

  <TR>
    <TD vAlign=top width="5%"><B>22. </B></TD>
    <TD>
      <P align=justify><B>FINANCIAL INSTRUMENTS
(Cont&#146;d)</B></P></TD></TR></TABLE><BR>
<DIV align=center>
<TABLE
style="BORDER-COLOR: black; BORDER-COLLAPSE: collapse; FONT-SIZE: 10pt; "
border=0 cellSpacing=0 cellPadding=0 width="90%">

  <TR vAlign=top>
    <TD align=left >&nbsp; </TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="10%" align=right nowrap><B>Loans and </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=right nowrap><B>Available </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 financial </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>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left ><B>At December 31, 2010 </B></TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="10%" align=right nowrap><B>receivables </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>FVTPL </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>for sale </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>liabilities </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  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"  width="1%"
    align=right>&nbsp;</TD>
    <TD width="10%"
      align=right nowrap style="BORDER-BOTTOM: #000000 1px solid"><B>&nbsp;</B></TD>
    <TD  width="2%"
    align=right nowrap style="BORDER-BOTTOM: #000000 1px solid">&nbsp;</TD>
    <TD  width="1%"
    align=right nowrap style="BORDER-BOTTOM: #000000 1px solid">&nbsp;</TD>
      <TD width="10%"
      align=right nowrap style="BORDER-BOTTOM: #000000 1px solid">&nbsp;</TD>
    <TD  width="2%"
    align=right nowrap style="BORDER-BOTTOM: #000000 1px solid">&nbsp;</TD>
    <TD  width="1%"
    align=right nowrap style="BORDER-BOTTOM: #000000 1px solid">&nbsp;</TD>
      <TD width="10%"
      align=right nowrap style="BORDER-BOTTOM: #000000 1px solid">&nbsp;</TD>
    <TD  width="2%"
    align=right 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=left nowrap style="BORDER-BOTTOM: #000000 1px solid">&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  width="2%"
    align=left nowrap style="BORDER-BOTTOM: #000000 1px solid">&nbsp;</TD>
    <TD  width="1%"
    align=right nowrap style="BORDER-BOTTOM: #000000 1px solid">&nbsp;</TD>
      <TD width="10%"
      align=right nowrap style="BORDER-BOTTOM: #000000 1px solid">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="2%"
    align=right>&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left ><B>Financial assets </B></TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="10%" align=left>&nbsp; </TD>
    <TD  width="2%" align=left>&nbsp;</TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="10%" align=left>&nbsp; </TD>
    <TD  width="2%" align=left>&nbsp;</TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="10%" align=left>&nbsp; </TD>
    <TD  width="2%" align=left>&nbsp;</TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="10%" align=left>&nbsp; </TD>
    <TD  width="2%" align=left>&nbsp;</TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="10%" align=left>&nbsp; </TD>
    <TD  width="2%" align=left>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD bgColor=#e6efff align=left >Cash and cash equivalents </TD>
    <TD bgColor=#e6efff  width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="10%" align=right>232,311 </TD>
    <TD bgColor=#e6efff  width="2%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff  width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="10%" align=right>- </TD>
    <TD bgColor=#e6efff  width="2%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff  width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="10%" align=right>- </TD>
    <TD bgColor=#e6efff  width="2%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff  width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="10%" align=right>- </TD>
    <TD bgColor=#e6efff  width="2%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff  width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="10%" align=right>232,311 </TD>
    <TD bgColor=#e6efff  width="2%" align=left>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left >Trade and other receivables <SUP>(1)
</SUP></TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="10%" align=right>- </TD>
    <TD  width="2%" align=left>&nbsp;</TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="10%" align=right>15,409 </TD>
    <TD  width="2%" align=left>&nbsp;</TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="10%" align=right>- </TD>
    <TD  width="2%" align=left>&nbsp;</TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="10%" align=right>- </TD>
    <TD  width="2%" align=left>&nbsp;</TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="10%" align=right>15,409 </TD>
    <TD  width="2%" align=left>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff align=left
    >Other financial assets <SUP>(2, 3) </SUP></TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff
    width="1%" align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff width="10%"
    align=right>9,051 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff
    width="2%" align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff
    width="1%" align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff width="10%"
    align=right>386 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff
    width="2%" align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff
    width="1%" align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff width="10%"
    align=right>33,465 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff
    width="2%" align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff
    width="1%" align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff width="10%"
    align=right>- </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff
    width="2%" align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff
    width="1%" align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff width="10%"
    align=right>42,902 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff
    width="2%" align=left>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=left
      >Total financial assets </TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid"  width="1%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" width="10%"
      align=right>241,362 </TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid"  width="2%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid"  width="1%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" width="10%"
      align=right>15,795 </TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid"  width="2%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid"  width="1%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" width="10%"
      align=right>33,465 </TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid"  width="2%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid"  width="1%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" width="10%" align=right>- </TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid"  width="2%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid"  width="1%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" width="10%"
      align=right>290,622 </TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid"  width="2%"
    align=left>&nbsp;</TD></TR>
  <TR>
    <TD bgColor=#e6efff >&nbsp; </TD>
    <TD bgColor=#e6efff  width="1%">&nbsp;</TD>
    <TD bgColor=#e6efff width="10%">&nbsp; </TD>
    <TD bgColor=#e6efff  width="2%">&nbsp;</TD>
    <TD bgColor=#e6efff  width="1%">&nbsp;</TD>
    <TD bgColor=#e6efff width="10%">&nbsp; </TD>
    <TD bgColor=#e6efff  width="2%">&nbsp;</TD>
    <TD bgColor=#e6efff  width="1%">&nbsp;</TD>
    <TD bgColor=#e6efff width="10%">&nbsp; </TD>
    <TD bgColor=#e6efff  width="2%">&nbsp;</TD>
    <TD bgColor=#e6efff  width="1%">&nbsp;</TD>
    <TD bgColor=#e6efff width="10%">&nbsp; </TD>
    <TD bgColor=#e6efff  width="2%">&nbsp;</TD>
    <TD bgColor=#e6efff  width="1%">&nbsp;</TD>
    <TD bgColor=#e6efff width="10%">&nbsp; </TD>
    <TD bgColor=#e6efff  width="2%">&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left ><B>Financial liabilities </B></TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="10%" align=left>&nbsp; </TD>
    <TD  width="2%" align=left>&nbsp;</TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="10%" align=left>&nbsp; </TD>
    <TD  width="2%" align=left>&nbsp;</TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="10%" align=left>&nbsp; </TD>
    <TD  width="2%" align=left>&nbsp;</TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="10%" align=left>&nbsp; </TD>
    <TD  width="2%" align=left>&nbsp;</TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="10%" align=left>&nbsp; </TD>
    <TD  width="2%" align=left>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD bgColor=#e6efff align=left >Trade and other payables </TD>
    <TD bgColor=#e6efff  width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="10%" align=right><B>- </B></TD>
    <TD bgColor=#e6efff  width="2%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff  width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="10%" align=right>- </TD>
    <TD bgColor=#e6efff  width="2%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff  width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="10%" align=right>- </TD>
    <TD bgColor=#e6efff  width="2%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff  width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="10%" align=right>34,208 </TD>
    <TD bgColor=#e6efff  width="2%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff  width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="10%" align=right>34,208 </TD>
    <TD bgColor=#e6efff  width="2%" align=left>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left
      >Convertible notes <SUP>(4) </SUP></TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="1%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="10%" align=right><B>-
      </B></TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="2%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="1%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="10%"
      align=right>21,735 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="2%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="1%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="10%" align=right>- </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="2%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="1%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="10%"
      align=right>116,125 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="2%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="1%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="10%"
      align=right>137,860 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="2%"
    align=left>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 2px solid" bgColor=#e6efff align=left
    >Total financial liabilities </TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" bgColor=#e6efff
    width="1%" align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" bgColor=#e6efff width="10%"
    align=right>- </TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" bgColor=#e6efff
    width="2%" align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" bgColor=#e6efff
    width="1%" align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" bgColor=#e6efff width="10%"
    align=right>21,735 </TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" bgColor=#e6efff
    width="2%" align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" bgColor=#e6efff
    width="1%" align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" bgColor=#e6efff width="10%"
    align=right>- </TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" bgColor=#e6efff
    width="2%" align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" bgColor=#e6efff
    width="1%" align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" bgColor=#e6efff width="10%"
    align=right>150,333 </TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" bgColor=#e6efff
    width="2%" align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" bgColor=#e6efff
    width="1%" align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" bgColor=#e6efff width="10%"
    align=right>172,068 </TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" bgColor=#e6efff
    width="2%" align=left>&nbsp;</TD></TR></TABLE></DIV><BR>
<DIV align=center>
<TABLE
style="BORDER-COLOR: black; BORDER-COLLAPSE: collapse; FONT-SIZE: 10pt; "
border=0 cellSpacing=0 cellPadding=0 width="90%">

  <TR vAlign=top>
    <TD align=left >&nbsp; </TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="10%" align=right nowrap><B>Loans and </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=right nowrap><B>Available </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 financial </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>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left ><B>At January 1, 2010 </B></TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="10%" align=right nowrap><B>receivables </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>FVTPL </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>for sale </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>liabilities </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  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"  width="1%"
    align=right>&nbsp;</TD>
      <TD style="BORDER-BOTTOM: #000000 1px solid" width="10%"
      align=right>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="2%"
    align=right>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="1%"
    align=right>&nbsp;</TD>
      <TD style="BORDER-BOTTOM: #000000 1px solid" width="10%"
      align=right>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="2%"
    align=right>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="1%"
    align=right>&nbsp;</TD>
      <TD style="BORDER-BOTTOM: #000000 1px solid" width="10%"
      align=right>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="2%"
    align=right>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="1%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="10%" align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="2%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="1%"
    align=right>&nbsp;</TD>
      <TD style="BORDER-BOTTOM: #000000 1px solid" width="10%"
      align=right>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="2%"
    align=right>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left ><B>Financial assets </B></TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="10%" align=left>&nbsp; </TD>
    <TD  width="2%" align=left>&nbsp;</TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="10%" align=left>&nbsp; </TD>
    <TD  width="2%" align=left>&nbsp;</TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="10%" align=left>&nbsp; </TD>
    <TD  width="2%" align=left>&nbsp;</TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="10%" align=left>&nbsp; </TD>
    <TD  width="2%" align=left>&nbsp;</TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="10%" align=left>&nbsp; </TD>
    <TD  width="2%" align=left>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD bgColor=#e6efff align=left >Cash and cash equivalents </TD>
    <TD bgColor=#e6efff  width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="10%" align=right>26,659 </TD>
    <TD bgColor=#e6efff  width="2%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff  width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="10%" align=right>- </TD>
    <TD bgColor=#e6efff  width="2%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff  width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="10%" align=right>- </TD>
    <TD bgColor=#e6efff  width="2%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff  width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="10%" align=right>- </TD>
    <TD bgColor=#e6efff  width="2%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff  width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="10%" align=right>26,659 </TD>
    <TD bgColor=#e6efff  width="2%" align=left>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left >Trade and other receivables <SUP>(1)
</SUP></TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="10%" align=right>- </TD>
    <TD  width="2%" align=left>&nbsp;</TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="10%" align=right>3,335 </TD>
    <TD  width="2%" align=left>&nbsp;</TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="10%" align=right>- </TD>
    <TD  width="2%" align=left>&nbsp;</TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="10%" align=right>- </TD>
    <TD  width="2%" align=left>&nbsp;</TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="10%" align=right>3,335 </TD>
    <TD  width="2%" align=left>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff align=left
    >Other financial assets <SUP>(2, </SUP><SUP>3) </SUP></TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff
    width="1%" align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff width="10%"
    align=right>9,399 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff
    width="2%" align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff
    width="1%" align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff width="10%"
    align=right>475 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff
    width="2%" align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff
    width="1%" align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff width="10%"
    align=right>17,863 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff
    width="2%" align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff
    width="1%" align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff width="10%"
    align=right>- </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff
    width="2%" align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff
    width="1%" align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff width="10%"
    align=right>27,737 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff
    width="2%" align=left>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=left
      >Total financial assets </TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid"  width="1%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" width="10%"
      align=right>36,058 </TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid"  width="2%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid"  width="1%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" width="10%" align=right>3,810
    </TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid"  width="2%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid"  width="1%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" width="10%"
      align=right>17,863 </TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid"  width="2%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid"  width="1%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" width="10%" align=right>- </TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid"  width="2%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid"  width="1%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" width="10%"
      align=right>57,731 </TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid"  width="2%"
    align=left>&nbsp;</TD></TR>
  <TR>
    <TD bgColor=#e6efff >&nbsp; </TD>
    <TD bgColor=#e6efff  width="1%">&nbsp;</TD>
    <TD bgColor=#e6efff width="10%">&nbsp; </TD>
    <TD bgColor=#e6efff  width="2%">&nbsp;</TD>
    <TD bgColor=#e6efff  width="1%">&nbsp;</TD>
    <TD bgColor=#e6efff width="10%">&nbsp; </TD>
    <TD bgColor=#e6efff  width="2%">&nbsp;</TD>
    <TD bgColor=#e6efff  width="1%">&nbsp;</TD>
    <TD bgColor=#e6efff width="10%">&nbsp; </TD>
    <TD bgColor=#e6efff  width="2%">&nbsp;</TD>
    <TD bgColor=#e6efff  width="1%">&nbsp;</TD>
    <TD bgColor=#e6efff width="10%">&nbsp; </TD>
    <TD bgColor=#e6efff  width="2%">&nbsp;</TD>
    <TD bgColor=#e6efff  width="1%">&nbsp;</TD>
    <TD bgColor=#e6efff width="10%">&nbsp; </TD>
    <TD bgColor=#e6efff  width="2%">&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left ><B>Financial liabilities </B></TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="10%" align=left>&nbsp; </TD>
    <TD  width="2%" align=left>&nbsp;</TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="10%" align=left>&nbsp; </TD>
    <TD  width="2%" align=left>&nbsp;</TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="10%" align=left>&nbsp; </TD>
    <TD  width="2%" align=left>&nbsp;</TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="10%" align=left>&nbsp; </TD>
    <TD  width="2%" align=left>&nbsp;</TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="10%" align=left>&nbsp; </TD>
    <TD  width="2%" align=left>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD bgColor=#e6efff align=left >Trade and other payables </TD>
    <TD bgColor=#e6efff  width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="10%" align=right><B>- </B></TD>
    <TD bgColor=#e6efff  width="2%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff  width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="10%" align=right>- </TD>
    <TD bgColor=#e6efff  width="2%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff  width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="10%" align=right>- </TD>
    <TD bgColor=#e6efff  width="2%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff  width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="10%" align=right>50,341 </TD>
    <TD bgColor=#e6efff  width="2%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff  width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="10%" align=right>50,341 </TD>
    <TD bgColor=#e6efff  width="2%" align=left>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left
      >Convertible notes <SUP>(4) </SUP></TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="1%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="10%" align=right><B>-
      </B></TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="2%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="1%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="10%"
      align=right>20,728 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="2%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="1%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="10%" align=right>- </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="2%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="1%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="10%"
      align=right>107,895 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="2%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="1%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="10%"
      align=right>128,623 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="2%"
    align=left>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 2px solid" bgColor=#e6efff align=left
    >Total financial liabilities </TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" bgColor=#e6efff
    width="1%" align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" bgColor=#e6efff width="10%"
    align=right>- </TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" bgColor=#e6efff
    width="2%" align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" bgColor=#e6efff
    width="1%" align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" bgColor=#e6efff width="10%"
    align=right>20,728 </TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" bgColor=#e6efff
    width="2%" align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" bgColor=#e6efff
    width="1%" align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" bgColor=#e6efff width="10%"
    align=right>- </TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" bgColor=#e6efff
    width="2%" align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" bgColor=#e6efff
    width="1%" align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" bgColor=#e6efff width="10%"
    align=right>158,236 </TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" bgColor=#e6efff
    width="2%" align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" bgColor=#e6efff
    width="1%" align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" bgColor=#e6efff width="10%"
    align=right>178,964 </TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" bgColor=#e6efff
    width="2%" align=left>&nbsp;</TD></TR></TABLE></DIV><BR>
<TABLE
style="BORDER-COLOR: black; BORDER-COLLAPSE: collapse; FONT-SIZE: 10pt; "
border=0 cellSpacing=0 cellPadding=0 width="100%" BCLLIST>

  <TR>
    <TD width="5%"  >&nbsp;</TD>
    <TD vAlign=top width="5%"><SUP>(1) </SUP></TD>
    <TD>
      <P align=justify>Certain trade and other receivables are classified as
      FVTPL due to the embedded derivative identified through provisional
      pricing arrangements discussed in note 2(e).</P></TD></TR>
  <TR>
    <TD width="5%" >&nbsp;</TD>
    <TD vAlign=top width="5%"><SUP>(2) </SUP></TD>
    <TD>
      <P align=justify>The convertible debenture receivable is allocated between
      FVTPL and loans and receivables. The conversion feature is recognized at
      FVTPL whilst the note receivable is designated within loans and
      receivables.</P></TD></TR>
  <TR>
    <TD width="5%" >&nbsp;</TD>
    <TD vAlign=top width="5%"><SUP>(3) </SUP></TD>
    <TD>
      <P align=justify>Other financial assets include marketable securities
      which have been designated as available for sale assets</P></TD></TR>
  <TR>
    <TD width="5%" >&nbsp;</TD>
    <TD vAlign=top width="5%"><SUP>(4) </SUP></TD>
    <TD>
      <P align=justify>The embedded share purchase option of the convertible
      notes is recognized at FVTPL whilst the debt portion is designated as an
      other financial liability.</P></TD></TR></TABLE><BR>
<TABLE
style="BORDER-COLOR: black; BORDER-COLLAPSE: collapse; FONT-SIZE: 10pt; "
border=0 cellSpacing=0 cellPadding=0 width="100%">
  <TR vAlign=top>
    <TD style="BORDER-TOP: #000000 1px solid" align=right>53 | <FONT
      color=#7e7e7e>P a g e</FONT> </TD>
  </TR>
</TABLE>
<HR style="PAGE-BREAK-AFTER: always" align=center color=black SIZE=5
width="100%" noShade>
<A name=page_54></A><BR>
<TABLE
style="BORDER-COLOR: black; BORDER-COLLAPSE: collapse; FONT-SIZE: 10pt; "
border=0 cellSpacing=0 cellPadding=0 width="100%">
  <TR vAlign=top>
    <TD align=left><FONT size=4><B>Silver Standard Resources Inc.</B> </FONT></TD>
  </TR>
  <TR vAlign=top>
    <TD align=left><FONT size=3>Notes to the Consolidated Financial Statements
      </FONT></TD>
  </TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left><FONT
      size=3>December 31, 2011 and 2010 and January 1, 2010 </FONT></TD>
  </TR>
  <TR vAlign=top>
    <TD align=left>(tabular amounts expressed in thousands of United States dollars
      unless otherwise stated) </TD>
  </TR>
</TABLE>
<BR>
<TABLE
style="BORDER-COLOR: black; BORDER-COLLAPSE: collapse; FONT-SIZE: 10pt; "
border=0 cellSpacing=0 cellPadding=0 width="100%" BCLLIST>

  <TR>
    <TD vAlign=top width="5%"><B>22.</B> </TD>
    <TD>
      <P align=justify><B>FINANCIAL INSTRUMENTS
(Cont&#146;d)</B></P></TD></TR></TABLE>
<P style="MARGIN-LEFT: 5%" align=justify><B>b)</B><B>&nbsp;&nbsp;&nbsp;
</B><B>Fair value of financial instruments </B></P>
<DIV align=center>
  <TABLE
style="BORDER-COLOR: black; BORDER-COLLAPSE: collapse; FONT-SIZE: 10pt; "
border=0 cellSpacing=0 cellPadding=0 width="90%">
    <TR vAlign=top>
      <TD align=left >&nbsp; </TD>
      <TD  width="1%" align=left>&nbsp;</TD>
      <TD colspan="4" align=center><B>December 31, 2011</B> </TD>
      <TD  width="1%" align=center>&nbsp;</TD>
      <TD  width="1%" align=center>&nbsp;</TD>
      <TD colspan="4" align=center><B>December 31, 2010</B> </TD>
      <TD  width="1%" align=center>&nbsp;</TD>
      <TD  width="1%" align=center>&nbsp;</TD>
      <TD colspan="4" align=center><B>January 1, 2010</B> </TD>
      <TD  width="1%" align=left>&nbsp;</TD>
    </TR>
    <TR vAlign=top>
      <TD align=left >&nbsp; </TD>
      <TD  width="1%" align=left>&nbsp;</TD>
      <TD width="11%" align=right><B>Carrying value</B> </TD>
      <TD  width="1%" align=left>&nbsp;</TD>
      <TD  width="1%" align=left>&nbsp;</TD>
      <TD width="9%" align=right><B>Fair value</B> </TD>
      <TD  width="1%" align=left>&nbsp;</TD>
      <TD  width="1%" align=left>&nbsp;</TD>
      <TD width="11%" align=right><B>Carrying value</B> </TD>
      <TD  width="1%" align=left>&nbsp;</TD>
      <TD  width="1%" align=left>&nbsp;</TD>
      <TD width="9%" align=right><B>Fair value</B> </TD>
      <TD  width="1%" align=left>&nbsp;</TD>
      <TD  width="1%" align=left>&nbsp;</TD>
      <TD width="11%" align=right><B>Carrying value</B> </TD>
      <TD  width="1%" align=left>&nbsp;</TD>
      <TD  width="1%" align=left>&nbsp;</TD>
      <TD width="9%" align=right><B>Fair value</B> </TD>
      <TD  width="1%" 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"  width="1%"
    align=right>&nbsp;</TD>
      <TD style="BORDER-BOTTOM: #000000 1px solid" width="11%" align=right>$</TD>
      <TD style="BORDER-BOTTOM: #000000 1px solid"  width="1%"
    align=right>&nbsp;</TD>
      <TD style="BORDER-BOTTOM: #000000 1px solid"  width="1%"
    align=right>&nbsp;</TD>
      <TD style="BORDER-BOTTOM: #000000 1px solid" width="9%" align=right>$</TD>
      <TD style="BORDER-BOTTOM: #000000 1px solid"  width="1%"
    align=right>&nbsp;</TD>
      <TD style="BORDER-BOTTOM: #000000 1px solid"  width="1%"
    align=right>&nbsp;</TD>
      <TD style="BORDER-BOTTOM: #000000 1px solid" width="11%" align=right>$</TD>
      <TD style="BORDER-BOTTOM: #000000 1px solid"  width="1%"
    align=right>&nbsp;</TD>
      <TD style="BORDER-BOTTOM: #000000 1px solid"  width="1%"
    align=right>&nbsp;</TD>
      <TD style="BORDER-BOTTOM: #000000 1px solid" width="9%" align=right>$</TD>
      <TD style="BORDER-BOTTOM: #000000 1px solid"  width="1%"
    align=right>&nbsp;</TD>
      <TD style="BORDER-BOTTOM: #000000 1px solid"  width="1%"
    align=right>&nbsp;</TD>
      <TD style="BORDER-BOTTOM: #000000 1px solid" width="11%" align=right>$</TD>
      <TD style="BORDER-BOTTOM: #000000 1px solid"  width="1%"
    align=right>&nbsp;</TD>
      <TD style="BORDER-BOTTOM: #000000 1px solid"  width="1%"
    align=right>&nbsp;</TD>
      <TD style="BORDER-BOTTOM: #000000 1px solid" width="9%" align=right>$</TD>
      <TD style="BORDER-BOTTOM: #000000 1px solid"  width="1%"
    align=right>&nbsp;</TD>
    </TR>
    <TR vAlign=top>
      <TD bgColor=#e6efff align=left ><B>Financial assets</B> </TD>
      <TD bgColor=#e6efff  width="1%" align=left>&nbsp;</TD>
      <TD bgColor=#e6efff width="11%" align=left>&nbsp; </TD>
      <TD bgColor=#e6efff  width="1%" align=left>&nbsp;</TD>
      <TD bgColor=#e6efff  width="1%" align=left>&nbsp;</TD>
      <TD bgColor=#e6efff width="9%" align=left>&nbsp; </TD>
      <TD bgColor=#e6efff  width="1%" align=left>&nbsp;</TD>
      <TD bgColor=#e6efff  width="1%" align=left>&nbsp;</TD>
      <TD bgColor=#e6efff width="11%" align=left>&nbsp; </TD>
      <TD bgColor=#e6efff  width="1%" align=left>&nbsp;</TD>
      <TD bgColor=#e6efff  width="1%" align=left>&nbsp;</TD>
      <TD bgColor=#e6efff width="9%" align=left>&nbsp; </TD>
      <TD bgColor=#e6efff  width="1%" align=left>&nbsp;</TD>
      <TD bgColor=#e6efff  width="1%" align=left>&nbsp;</TD>
      <TD bgColor=#e6efff width="11%" align=left>&nbsp; </TD>
      <TD bgColor=#e6efff  width="1%" align=left>&nbsp;</TD>
      <TD bgColor=#e6efff  width="1%" align=left>&nbsp;</TD>
      <TD bgColor=#e6efff width="9%" align=left>&nbsp; </TD>
      <TD bgColor=#e6efff  width="1%" align=left>&nbsp;</TD>
    </TR>
    <TR vAlign=top>
      <TD align=left >Trade and other receivables </TD>
      <TD  width="1%" align=left>&nbsp;</TD>
      <TD width="11%" align=right>5,045 </TD>
      <TD  width="1%" align=left>&nbsp;</TD>
      <TD  width="1%" align=left>&nbsp;</TD>
      <TD width="9%" align=right>5,045 </TD>
      <TD  width="1%" align=left>&nbsp;</TD>
      <TD  width="1%" align=left>&nbsp;</TD>
      <TD width="11%" align=right>15,409 </TD>
      <TD  width="1%" align=left>&nbsp;</TD>
      <TD  width="1%" align=left>&nbsp;</TD>
      <TD width="9%" align=right>15,409 </TD>
      <TD  width="1%" align=left>&nbsp;</TD>
      <TD  width="1%" align=left>&nbsp;</TD>
      <TD width="11%" align=right>3,335 </TD>
      <TD  width="1%" align=left>&nbsp;</TD>
      <TD  width="1%" align=left>&nbsp;</TD>
      <TD width="9%" align=right>3,335 </TD>
      <TD  width="1%" align=left>&nbsp;</TD>
    </TR>
    <TR vAlign=top>
      <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff align=left
    >Other financial assets </TD>
      <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff
    width="1%" align=left>&nbsp;</TD>
      <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff width="11%"
    align=right>35,307 </TD>
      <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff
    width="1%" align=left>&nbsp;</TD>
      <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff
    width="1%" align=left>&nbsp;</TD>
      <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff width="9%"
    align=right>35,307 </TD>
      <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff
    width="1%" align=left>&nbsp;</TD>
      <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff
    width="1%" align=left>&nbsp;</TD>
      <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff width="11%"
    align=right>42,902 </TD>
      <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff
    width="1%" align=left>&nbsp;</TD>
      <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff
    width="1%" align=left>&nbsp;</TD>
      <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff width="9%"
    align=right>42,902 </TD>
      <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff
    width="1%" align=left>&nbsp;</TD>
      <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff
    width="1%" align=left>&nbsp;</TD>
      <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff width="11%"
    align=right>27,737 </TD>
      <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff
    width="1%" align=left>&nbsp;</TD>
      <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff
    width="1%" align=left>&nbsp;</TD>
      <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff width="9%"
    align=right>27,737 </TD>
      <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff
    width="1%" align=left>&nbsp;</TD>
    </TR>
    <TR vAlign=top>
      <TD style="BORDER-BOTTOM: #000000 2px solid" align=left
      ><B>Total financial assets</B> </TD>
      <TD style="BORDER-BOTTOM: #000000 2px solid"  width="1%"
    align=left>&nbsp;</TD>
      <TD style="BORDER-BOTTOM: #000000 2px solid" width="11%"
      align=right><B>40,352</B> </TD>
      <TD style="BORDER-BOTTOM: #000000 2px solid"  width="1%"
    align=left>&nbsp;</TD>
      <TD style="BORDER-BOTTOM: #000000 2px solid"  width="1%"
    align=left>&nbsp;</TD>
      <TD style="BORDER-BOTTOM: #000000 2px solid" width="9%"
      align=right><B>40,352</B> </TD>
      <TD style="BORDER-BOTTOM: #000000 2px solid"  width="1%"
    align=left>&nbsp;</TD>
      <TD style="BORDER-BOTTOM: #000000 2px solid"  width="1%"
    align=left>&nbsp;</TD>
      <TD style="BORDER-BOTTOM: #000000 2px solid" width="11%" align=right>58,311
      </TD>
      <TD style="BORDER-BOTTOM: #000000 2px solid"  width="1%"
    align=left>&nbsp;</TD>
      <TD style="BORDER-BOTTOM: #000000 2px solid"  width="1%"
    align=left>&nbsp;</TD>
      <TD style="BORDER-BOTTOM: #000000 2px solid" width="9%" align=right>58,311
      </TD>
      <TD style="BORDER-BOTTOM: #000000 2px solid"  width="1%"
    align=left>&nbsp;</TD>
      <TD style="BORDER-BOTTOM: #000000 2px solid"  width="1%"
    align=left>&nbsp;</TD>
      <TD style="BORDER-BOTTOM: #000000 2px solid" width="11%" align=right>31,072
      </TD>
      <TD style="BORDER-BOTTOM: #000000 2px solid"  width="1%"
    align=left>&nbsp;</TD>
      <TD style="BORDER-BOTTOM: #000000 2px solid"  width="1%"
    align=left>&nbsp;</TD>
      <TD style="BORDER-BOTTOM: #000000 2px solid" width="9%" align=right>31,072
      </TD>
      <TD style="BORDER-BOTTOM: #000000 2px solid"  width="1%"
    align=left>&nbsp;</TD>
    </TR>
    <TR>
      <TD bgColor=#e6efff >&nbsp; </TD>
      <TD bgColor=#e6efff  width="1%">&nbsp;</TD>
      <TD bgColor=#e6efff width="11%">&nbsp; </TD>
      <TD bgColor=#e6efff  width="1%">&nbsp;</TD>
      <TD bgColor=#e6efff  width="1%">&nbsp;</TD>
      <TD bgColor=#e6efff width="9%">&nbsp; </TD>
      <TD bgColor=#e6efff  width="1%">&nbsp;</TD>
      <TD bgColor=#e6efff  width="1%">&nbsp;</TD>
      <TD bgColor=#e6efff width="11%">&nbsp; </TD>
      <TD bgColor=#e6efff  width="1%">&nbsp;</TD>
      <TD bgColor=#e6efff  width="1%">&nbsp;</TD>
      <TD bgColor=#e6efff width="9%">&nbsp; </TD>
      <TD bgColor=#e6efff  width="1%">&nbsp;</TD>
      <TD bgColor=#e6efff  width="1%">&nbsp;</TD>
      <TD bgColor=#e6efff width="11%">&nbsp; </TD>
      <TD bgColor=#e6efff  width="1%">&nbsp;</TD>
      <TD bgColor=#e6efff  width="1%">&nbsp;</TD>
      <TD bgColor=#e6efff width="9%">&nbsp; </TD>
      <TD bgColor=#e6efff  width="1%">&nbsp;</TD>
    </TR>
    <TR vAlign=top>
      <TD align=left ><B>Financial liabilities</B> </TD>
      <TD  width="1%" align=left>&nbsp;</TD>
      <TD width="11%" align=left>&nbsp; </TD>
      <TD  width="1%" align=left>&nbsp;</TD>
      <TD  width="1%" align=left>&nbsp;</TD>
      <TD width="9%" align=left>&nbsp; </TD>
      <TD  width="1%" align=left>&nbsp;</TD>
      <TD  width="1%" align=left>&nbsp;</TD>
      <TD width="11%" align=left>&nbsp; </TD>
      <TD  width="1%" align=left>&nbsp;</TD>
      <TD  width="1%" align=left>&nbsp;</TD>
      <TD width="9%" align=left>&nbsp; </TD>
      <TD  width="1%" align=left>&nbsp;</TD>
      <TD  width="1%" align=left>&nbsp;</TD>
      <TD width="11%" align=left>&nbsp; </TD>
      <TD  width="1%" align=left>&nbsp;</TD>
      <TD  width="1%" align=left>&nbsp;</TD>
      <TD width="9%" align=left>&nbsp; </TD>
      <TD  width="1%" align=left>&nbsp;</TD>
    </TR>
    <TR vAlign=top>
      <TD bgColor=#e6efff align=left >Warrant liability </TD>
      <TD bgColor=#e6efff  width="1%" align=left>&nbsp;</TD>
      <TD bgColor=#e6efff width="11%" align=right>7,067 </TD>
      <TD bgColor=#e6efff  width="1%" align=left>&nbsp;</TD>
      <TD bgColor=#e6efff  width="1%" align=left>&nbsp;</TD>
      <TD bgColor=#e6efff width="9%" align=right>7,067 </TD>
      <TD bgColor=#e6efff  width="1%" align=left>&nbsp;</TD>
      <TD bgColor=#e6efff  width="1%" align=left>&nbsp;</TD>
      <TD bgColor=#e6efff width="11%" align=right>- </TD>
      <TD bgColor=#e6efff  width="1%" align=left>&nbsp;</TD>
      <TD bgColor=#e6efff  width="1%" align=left>&nbsp;</TD>
      <TD bgColor=#e6efff width="9%" align=right>- </TD>
      <TD bgColor=#e6efff  width="1%" align=left>&nbsp;</TD>
      <TD bgColor=#e6efff  width="1%" align=left>&nbsp;</TD>
      <TD bgColor=#e6efff width="11%" align=right>- </TD>
      <TD bgColor=#e6efff  width="1%" align=left>&nbsp;</TD>
      <TD bgColor=#e6efff  width="1%" align=left>&nbsp;</TD>
      <TD bgColor=#e6efff width="9%" align=right>- </TD>
      <TD bgColor=#e6efff  width="1%" align=left>&nbsp;</TD>
    </TR>
    <TR vAlign=top>
      <TD style="BORDER-BOTTOM: #000000 1px solid" align=left
      >Convertible notes </TD>
      <TD style="BORDER-BOTTOM: #000000 1px solid"  width="1%"
    align=left>&nbsp;</TD>
      <TD style="BORDER-BOTTOM: #000000 1px solid" width="11%"
      align=right>126,555 </TD>
      <TD style="BORDER-BOTTOM: #000000 1px solid"  width="1%"
    align=left>&nbsp;</TD>
      <TD style="BORDER-BOTTOM: #000000 1px solid"  width="1%"
    align=left>&nbsp;</TD>
      <TD style="BORDER-BOTTOM: #000000 1px solid" width="9%"
      align=right>136,275 </TD>
      <TD style="BORDER-BOTTOM: #000000 1px solid"  width="1%"
    align=left>&nbsp;</TD>
      <TD style="BORDER-BOTTOM: #000000 1px solid"  width="1%"
    align=left>&nbsp;</TD>
      <TD style="BORDER-BOTTOM: #000000 1px solid" width="11%"
      align=right>137,860 </TD>
      <TD style="BORDER-BOTTOM: #000000 1px solid"  width="1%"
    align=left>&nbsp;</TD>
      <TD style="BORDER-BOTTOM: #000000 1px solid"  width="1%"
    align=left>&nbsp;</TD>
      <TD style="BORDER-BOTTOM: #000000 1px solid" width="9%"
      align=right>143,506 </TD>
      <TD style="BORDER-BOTTOM: #000000 1px solid"  width="1%"
    align=left>&nbsp;</TD>
      <TD style="BORDER-BOTTOM: #000000 1px solid"  width="1%"
    align=left>&nbsp;</TD>
      <TD style="BORDER-BOTTOM: #000000 1px solid" width="11%"
      align=right>128,623 </TD>
      <TD style="BORDER-BOTTOM: #000000 1px solid"  width="1%"
    align=left>&nbsp;</TD>
      <TD style="BORDER-BOTTOM: #000000 1px solid"  width="1%"
    align=left>&nbsp;</TD>
      <TD style="BORDER-BOTTOM: #000000 1px solid" width="9%"
      align=right>129,030 </TD>
      <TD style="BORDER-BOTTOM: #000000 1px solid"  width="1%"
    align=left>&nbsp;</TD>
    </TR>
    <TR vAlign=top>
      <TD style="BORDER-BOTTOM: #000000 2px solid" bgColor=#e6efff align=left
    ><B>Total financial liabilities</B> </TD>
      <TD style="BORDER-BOTTOM: #000000 2px solid" bgColor=#e6efff
    width="1%" align=left>&nbsp;</TD>
      <TD style="BORDER-BOTTOM: #000000 2px solid" bgColor=#e6efff width="11%"
    align=right><B>133,622</B> </TD>
      <TD style="BORDER-BOTTOM: #000000 2px solid" bgColor=#e6efff
    width="1%" align=left>&nbsp;</TD>
      <TD style="BORDER-BOTTOM: #000000 2px solid" bgColor=#e6efff
    width="1%" align=left>&nbsp;</TD>
      <TD style="BORDER-BOTTOM: #000000 2px solid" bgColor=#e6efff width="9%"
    align=right><B>143,342</B> </TD>
      <TD style="BORDER-BOTTOM: #000000 2px solid" bgColor=#e6efff
    width="1%" align=left>&nbsp;</TD>
      <TD style="BORDER-BOTTOM: #000000 2px solid" bgColor=#e6efff
    width="1%" align=left>&nbsp;</TD>
      <TD style="BORDER-BOTTOM: #000000 2px solid" bgColor=#e6efff width="11%"
    align=right>137,860 </TD>
      <TD style="BORDER-BOTTOM: #000000 2px solid" bgColor=#e6efff
    width="1%" align=left>&nbsp;</TD>
      <TD style="BORDER-BOTTOM: #000000 2px solid" bgColor=#e6efff
    width="1%" align=left>&nbsp;</TD>
      <TD style="BORDER-BOTTOM: #000000 2px solid" bgColor=#e6efff width="9%"
    align=right>143,506 </TD>
      <TD style="BORDER-BOTTOM: #000000 2px solid" bgColor=#e6efff
    width="1%" align=left>&nbsp;</TD>
      <TD style="BORDER-BOTTOM: #000000 2px solid" bgColor=#e6efff
    width="1%" align=left>&nbsp;</TD>
      <TD style="BORDER-BOTTOM: #000000 2px solid" bgColor=#e6efff width="11%"
    align=right>128,623 </TD>
      <TD style="BORDER-BOTTOM: #000000 2px solid" bgColor=#e6efff
    width="1%" align=left>&nbsp;</TD>
      <TD style="BORDER-BOTTOM: #000000 2px solid" bgColor=#e6efff
    width="1%" align=left>&nbsp;</TD>
      <TD style="BORDER-BOTTOM: #000000 2px solid" bgColor=#e6efff width="9%"
    align=right>129,030 </TD>
      <TD style="BORDER-BOTTOM: #000000 2px solid" bgColor=#e6efff
    width="1%" align=left>&nbsp;</TD>
    </TR>
  </TABLE>
</DIV>
<P style="MARGIN-LEFT: 5%" align=justify>The carrying values of cash and cash
equivalents, certain other financial assets, trade and other payables,
approximate their fair values due to their relatively short maturity.</P>
<TABLE
style="BORDER-COLOR: black; BORDER-COLLAPSE: collapse; FONT-SIZE: 10pt; "
border=0 cellSpacing=0 cellPadding=0 width="100%">
  <TR vAlign=top>
    <TD style="BORDER-TOP: #000000 1px solid" align=right>54 | <FONT
      color=#7e7e7e>P a g e</FONT> </TD>
  </TR>
</TABLE>
<HR style="PAGE-BREAK-AFTER: always" align=center color=black SIZE=5
width="100%" noShade>
<A name=page_55></A><BR>
<TABLE
style="BORDER-COLOR: black; BORDER-COLLAPSE: collapse; FONT-SIZE: 10pt; "
border=0 cellSpacing=0 cellPadding=0 width="100%">
  <TR vAlign=top>
    <TD align=left><FONT size=4><B>Silver Standard Resources Inc.</B> </FONT></TD>
  </TR>
  <TR vAlign=top>
    <TD align=left><FONT size=3>Notes to the Consolidated Financial Statements
      </FONT></TD>
  </TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left><FONT
      size=3>December 31, 2011 and 2010 and January 1, 2010 </FONT></TD>
  </TR>
  <TR vAlign=top>
    <TD align=left>(tabular amounts expressed in thousands of United States dollars
      unless otherwise stated) </TD>
  </TR>
</TABLE>
<BR>
<TABLE
style="BORDER-COLOR: black; BORDER-COLLAPSE: collapse; FONT-SIZE: 10pt; "
border=0 cellSpacing=0 cellPadding=0 width="100%" BCLLIST>

  <TR>
    <TD vAlign=top width="5%"><B>22.</B> </TD>
    <TD>
      <P align=justify><B>FINANCIAL INSTRUMENTS (Cont&#146;d)</B></P></TD></TR>
  <TR>
    <TD width="5%">&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
  <TR>
    <TD width="5%"></TD>
    <TD>
      <P align=justify><B>Fair value hierarchy</B></P></TD></TR>
  <TR>
    <TD width="5%">&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
  <TR>
    <TD width="5%"></TD>
    <TD>
      <P align=justify>Financial instruments that are held at fair value are
      categorized based on a valuation hierarchy which is determined by the
      valuation methodology utilized:</P></TD></TR></TABLE><BR>
<DIV align=center>
  <TABLE
style="BORDER-COLOR: black; BORDER-COLLAPSE: collapse; FONT-SIZE: 10pt; "
border=0 cellSpacing=0 cellPadding=0 width="90%">
    <TR vAlign=top>
      <TD align=left>&nbsp; </TD>
      <TD style="BORDER-BOTTOM: #000000 1px solid"  width="1%"
    align=left>&nbsp;</TD>
      <TD colspan="10"
      align=center style="BORDER-BOTTOM: #000000 1px solid"><B>Fair Value at December 31, 2011</B> </TD>
      <TD style="BORDER-BOTTOM: #000000 1px solid"  width="2%"
    align=left>&nbsp;</TD>
    </TR>
    <TR vAlign=top>
      <TD align=left>&nbsp; </TD>
      <TD  width="1%" align=left>&nbsp;</TD>
      <TD width="12%" align=right><B>Level 1</B> </TD>
      <TD  width="2%" align=left>&nbsp;</TD>
      <TD  width="1%" align=left>&nbsp;</TD>
      <TD width="12%" align=right><B>Level 2</B> </TD>
      <TD  width="2%" align=left>&nbsp;</TD>
      <TD  width="1%" align=left>&nbsp;</TD>
      <TD width="12%" align=right><B>Level 3</B> </TD>
      <TD  width="2%" align=left>&nbsp;</TD>
      <TD  width="1%" align=left>&nbsp;</TD>
      <TD width="12%" align=right><B>Total</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"  width="1%"
    align=right>&nbsp;</TD>
      <TD style="BORDER-BOTTOM: #000000 1px solid" width="12%"
    align=right>$&nbsp;</TD>
      <TD style="BORDER-BOTTOM: #000000 1px solid"  width="2%"
    align=right>&nbsp;</TD>
      <TD style="BORDER-BOTTOM: #000000 1px solid"  width="1%"
    align=right>&nbsp;</TD>
      <TD style="BORDER-BOTTOM: #000000 1px solid" width="12%" align=right>$</TD>
      <TD style="BORDER-BOTTOM: #000000 1px solid"  width="2%"
    align=right>&nbsp;</TD>
      <TD style="BORDER-BOTTOM: #000000 1px solid"  width="1%"
    align=right>&nbsp;</TD>
      <TD style="BORDER-BOTTOM: #000000 1px solid" width="12%" align=right>$</TD>
      <TD style="BORDER-BOTTOM: #000000 1px solid"  width="2%"
    align=right>&nbsp;</TD>
      <TD style="BORDER-BOTTOM: #000000 1px solid"  width="1%"
    align=right>&nbsp;</TD>
      <TD style="BORDER-BOTTOM: #000000 1px solid" width="12%" align=right>$</TD>
      <TD style="BORDER-BOTTOM: #000000 1px solid"  width="2%"
    align=right>&nbsp;</TD>
    </TR>
    <TR vAlign=top>
      <TD bgColor=#e6efff align=left>Marketable securities </TD>
      <TD bgColor=#e6efff  width="1%" align=left>&nbsp;</TD>
      <TD bgColor=#e6efff width="12%" align=right>33,539 </TD>
      <TD bgColor=#e6efff  width="2%" align=left>&nbsp;</TD>
      <TD bgColor=#e6efff  width="1%" align=left>&nbsp;</TD>
      <TD bgColor=#e6efff width="12%" align=right>- </TD>
      <TD bgColor=#e6efff  width="2%" align=left>&nbsp;</TD>
      <TD bgColor=#e6efff  width="1%" align=left>&nbsp;</TD>
      <TD bgColor=#e6efff width="12%" align=right>- </TD>
      <TD bgColor=#e6efff  width="2%" align=left>&nbsp;</TD>
      <TD bgColor=#e6efff  width="1%" align=left>&nbsp;</TD>
      <TD bgColor=#e6efff width="12%" align=right><B>33,539</B> </TD>
      <TD bgColor=#e6efff  width="2%" align=left>&nbsp;</TD>
    </TR>
    <TR vAlign=top>
      <TD align=left>Warrant liability </TD>
      <TD  width="1%" align=left>&nbsp;</TD>
      <TD width="12%" align=right>7,067 </TD>
      <TD  width="2%" align=left>&nbsp;</TD>
      <TD  width="1%" align=left>&nbsp;</TD>
      <TD width="12%" align=right>- </TD>
      <TD  width="2%" align=left>&nbsp;</TD>
      <TD  width="1%" align=left>&nbsp;</TD>
      <TD width="12%" align=right>- </TD>
      <TD  width="2%" align=left>&nbsp;</TD>
      <TD  width="1%" align=left>&nbsp;</TD>
      <TD width="12%" align=right><B>7,067</B> </TD>
      <TD  width="2%" align=left>&nbsp;</TD>
    </TR>
    <TR vAlign=top>
      <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff
      align=left>Derivative liability </TD>
      <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff
    width="1%" align=left>&nbsp;</TD>
      <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff width="12%"
    align=right>- </TD>
      <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff
    width="2%" align=left>&nbsp;</TD>
      <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff
    width="1%" align=left>&nbsp;</TD>
      <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff width="12%"
    align=right>1,242 </TD>
      <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff
    width="2%" align=left>&nbsp;</TD>
      <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff
    width="1%" align=left>&nbsp;</TD>
      <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff width="12%"
    align=right>- </TD>
      <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff
    width="2%" align=left>&nbsp;</TD>
      <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff
    width="1%" align=left>&nbsp;</TD>
      <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff width="12%"
    align=right><B>1,242</B> </TD>
      <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff
    width="2%" align=left>&nbsp;</TD>
    </TR>
    <TR vAlign=top>
      <TD style="BORDER-BOTTOM: #000000 2px solid" align=left>&nbsp; </TD>
      <TD style="BORDER-BOTTOM: #000000 2px solid"  width="1%"
    align=left>&nbsp;</TD>
      <TD style="BORDER-BOTTOM: #000000 2px solid" width="12%"
      align=right>40,606 </TD>
      <TD style="BORDER-BOTTOM: #000000 2px solid"  width="2%"
    align=left>&nbsp;</TD>
      <TD style="BORDER-BOTTOM: #000000 2px solid"  width="1%"
    align=left>&nbsp;</TD>
      <TD style="BORDER-BOTTOM: #000000 2px solid" width="12%" align=right>1,242
      </TD>
      <TD style="BORDER-BOTTOM: #000000 2px solid"  width="2%"
    align=left>&nbsp;</TD>
      <TD style="BORDER-BOTTOM: #000000 2px solid"  width="1%"
    align=left>&nbsp;</TD>
      <TD style="BORDER-BOTTOM: #000000 2px solid" width="12%" align=right>- </TD>
      <TD style="BORDER-BOTTOM: #000000 2px solid"  width="2%"
    align=left>&nbsp;</TD>
      <TD style="BORDER-BOTTOM: #000000 2px solid"  width="1%"
    align=left>&nbsp;</TD>
      <TD style="BORDER-BOTTOM: #000000 2px solid" width="12%"
      align=right><B>41,848</B> </TD>
      <TD style="BORDER-BOTTOM: #000000 2px solid"  width="2%"
    align=left>&nbsp;</TD>
    </TR>
  </TABLE>
</DIV>
<P style="MARGIN-LEFT: 5%" align=justify>Level 1 &#150; quoted prices (unadjusted) in
active markets for identical assets or liabilities </P>
<P style="MARGIN-LEFT: 5%" align=justify>Marketable securities, consisting of
available-for-sale investments with no trading restrictions, and the warrant
liability are valued using a market approach based upon unadjusted quoted prices
in an active market obtained from securities exchanges. </P>
<P style="MARGIN-LEFT: 5%" align=justify>Level 2 &#150; inputs other than quoted
prices included within Level 1 that are observable for the asset or liability,
either directly (that is, as prices) or indirectly (that is, derived from
prices); and Trade receivables from provisional invoices for concentrate sales
are included within Level 2, as the basis of valuation uses quoted commodity
prices. </P>
<P style="MARGIN-LEFT: 5%" align=justify>The value of the Company&#146;s Notes&#146;
embedded share purchase option is also included in Level 2 of the fair value
hierarchy as they are valued using an option pricing model. This model requires
a variety of inputs, including, but not limited to, contractual terms, market
prices, forward price curves, yield curves and credit spreads. </P>
<P style="MARGIN-LEFT: 5%" align=justify>Level 3 &#150; inputs for the asset or
liability that are not based on observable market data (unobservable inputs)
</P>
<P style="MARGIN-LEFT: 5%" align=justify>The Company has investments in
asset-backed commercial paper which are included within Level 3 in the fair
value hierarchy because they trade infrequently. At December 31, 2011, December
31, 2010, and January 1, 2010 the fair value was considered to be $nil. </P>
<P style="MARGIN-LEFT: 5%" align=justify>There were no transfers between Level 1
and Level 2 during the years ended December 31, 2011 or 2010. </P>
<TABLE
style="BORDER-COLOR: black; BORDER-COLLAPSE: collapse; FONT-SIZE: 10pt; "
border=0 cellSpacing=0 cellPadding=0 width="100%">
  <TR vAlign=top>
    <TD style="BORDER-TOP: #000000 1px solid" align=right>55 | <FONT
      color=#7e7e7e>P a g e</FONT> </TD>
  </TR>
</TABLE>
<HR style="PAGE-BREAK-AFTER: always" align=center color=black SIZE=5
width="100%" noShade>
<A name=page_56></A><BR>
<TABLE
style="BORDER-COLOR: black; BORDER-COLLAPSE: collapse; FONT-SIZE: 10pt; "
border=0 cellSpacing=0 cellPadding=0 width="100%">
  <TR vAlign=top>
    <TD align=left><FONT size=4><B>Silver Standard Resources Inc.</B> </FONT></TD>
  </TR>
  <TR vAlign=top>
    <TD align=left><FONT size=3>Notes to the Consolidated Financial Statements
      </FONT></TD>
  </TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left><FONT
      size=3>December 31, 2011 and 2010 and January 1, 2010 </FONT></TD>
  </TR>
  <TR vAlign=top>
    <TD align=left>(tabular amounts expressed in thousands of United States dollars
      unless otherwise stated) </TD>
  </TR>
</TABLE>
<BR>
<TABLE
style="BORDER-COLOR: black; BORDER-COLLAPSE: collapse; FONT-SIZE: 10pt; "
border=0 cellSpacing=0 cellPadding=0 width="100%" BCLLIST>

  <TR>
    <TD vAlign=top width="5%"><B>23.</B> </TD>
    <TD>
      <P align=justify><B>FINANCIAL RISK MANAGEMENT</B></P></TD></TR>
  <TR>
    <TD width="5%">&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
  <TR>
    <TD width="5%"></TD>
    <TD>
      <P align=justify>The Company is exposed to a variety of financial risks as
      a result of its operations, including market risk (which includes price
      risk, currency risk and interest rate risk), credit risk and liquidity
      risk. The Company&#146;s overall risk management strategy seeks to reduce
      potential adverse effects on the Company&#146;s financial performance. Risk
      management is carried out under policies approved by the Board of
      Directors.</P></TD></TR>
  <TR>
    <TD width="5%">&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
  <TR>
    <TD width="5%"></TD>
    <TD>
      <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 currency, 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></TD></TR></TABLE>
<P style="MARGIN-LEFT: 5%" align=justify><B>a)</B><B>&nbsp;&nbsp;&nbsp;
</B><B>Market Risk </B></P>
<P style="MARGIN-LEFT: 5%" 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 price risk,
currency risk and interest rate risk. </P>
<P style="MARGIN-LEFT: 5%" align=justify><B>&nbsp;(i) </B><B>&nbsp;</B><B>Price
Risk </B></P>
<P style="MARGIN-LEFT: 5%" align=justify>This is the risk that the fair values
or future cash flows of the Company&#146;s financial instruments will fluctuate
because of changes in market prices. Income from mine operations in the next
year depends on the metal prices for silver and to a lesser extent zinc. These
prices are affected by numerous factors that are outside the control of the
Company such as: </P>
<TABLE
style="BORDER-COLOR: black; BORDER-COLLAPSE: collapse; FONT-SIZE: 10pt; "
border=0 cellSpacing=0 cellPadding=0 width="100%">

  <TR vAlign=top>
    <TD width="5%"  >&nbsp;</TD>
    <TD  align=center>-</TD>
    <TD width="90%" align=left >global or regional consumption
      patterns; </TD></TR>
  <TR vAlign=top>
    <TD width="5%" >&nbsp;</TD>
    <TD  align=center>-</TD>
    <TD width="90%" align=left >the supply of, and demand for,
      these metals; </TD></TR>
  <TR vAlign=top>
    <TD width="5%" >&nbsp;</TD>
    <TD  align=center>-</TD>
    <TD width="90%" align=left >speculative activities; </TD></TR>
  <TR vAlign=top>
    <TD width="5%" >&nbsp;</TD>
    <TD  align=center>-</TD>
    <TD width="90%" align=left >the availability and costs of
      metal substitutes; </TD></TR>
  <TR vAlign=top>
    <TD width="5%" >&nbsp;</TD>
    <TD  align=center>-</TD>
    <TD width="90%" align=left >inflation; and </TD></TR>
  <TR vAlign=top>
    <TD width="5%" >&nbsp;</TD>
    <TD  align=center>-</TD>
    <TD width="90%" align=left >political and economic
      conditions, including interest rates and currency values.
</TD></TR></TABLE>
<P style="MARGIN-LEFT: 5%" align=justify>The principal financial instrument that
the Company holds which is impacted by commodity prices is the embedded
derivative within trade receivables. The majority of revenue agreements are
subject to pricing terms that settle within one to three months after delivery,
and this adjustment period represents the Company&#146;s trade receivable exposure to
variations in commodity prices.</P>
<P style="MARGIN-LEFT: 5%" align=justify>The Company has not hedged the price of
silver as part of its overall corporate strategy. </P>
<P style="MARGIN-LEFT: 5%" align=justify>The costs relating to the Company&#146;s
production, development and exploration activities vary depending on the market
prices of certain mining consumables including diesel fuel and natural gas. The
Company has not hedged any such costs. </P>
<TABLE
style="BORDER-COLOR: black; BORDER-COLLAPSE: collapse; FONT-SIZE: 10pt; "
border=0 cellSpacing=0 cellPadding=0 width="100%">
  <TR vAlign=top>
    <TD style="BORDER-TOP: #000000 1px solid" align=right>56 | <FONT
      color=#7e7e7e>P a g e</FONT> </TD>
  </TR>
</TABLE>
<HR style="PAGE-BREAK-AFTER: always" align=center color=black SIZE=5
width="100%" noShade>
<A name=page_57></A><BR>
<TABLE
style="BORDER-COLOR: black; BORDER-COLLAPSE: collapse; FONT-SIZE: 10pt; "
border=0 cellSpacing=0 cellPadding=0 width="100%">
  <TR vAlign=top>
    <TD align=left><FONT size=4><B>Silver Standard Resources Inc.</B> </FONT></TD>
  </TR>
  <TR vAlign=top>
    <TD align=left><FONT size=3>Notes to the Consolidated Financial Statements
      </FONT></TD>
  </TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left><FONT
      size=3>December 31, 2011 and 2010 and January 1, 2010 </FONT></TD>
  </TR>
  <TR vAlign=top>
    <TD align=left>(tabular amounts expressed in thousands of United States dollars
      unless otherwise stated) </TD>
  </TR>
</TABLE>
<BR>
<TABLE
style="BORDER-COLOR: black; BORDER-COLLAPSE: collapse; FONT-SIZE: 10pt; "
border=0 cellSpacing=0 cellPadding=0 width="100%" BCLLIST>

  <TR>
    <TD vAlign=top width="5%"><B>23.</B> </TD>
    <TD>
      <P align=justify><B>FINANCIAL RISK MANAGEMENT (Cont&#146;d)</B></P></TD></TR>
  <TR>
    <TD width="5%">&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
  <TR>
    <TD width="5%"></TD>
    <TD>
      <P align=justify>A 10% increase in the average commodity price for the
      year, with all other variables held constant, would have resulted in the
      following impact to the Company&#146;s after-tax net
income:</P></TD></TR></TABLE><BR>
<DIV align=center>
<TABLE
style="BORDER-COLOR: black; BORDER-COLLAPSE: collapse; FONT-SIZE: 10pt; "
border=0 cellSpacing=0 cellPadding=0 width="70%">

  <TR vAlign=top>
    <TD align=left>&nbsp;</TD>
    <TD width="1%" align=left>&nbsp;</TD>
    <TD width="15%" align=right><B>2011</B> </TD>
    <TD width="2%" align=left>&nbsp;</TD>
    <TD width="1%" align=left>&nbsp;</TD>
    <TD width="15%" align=right><B>2010</B> </TD>
    <TD width="2%" align=left>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left><B>Products</B></TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="1%"
    align=right>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="15%" align=right>$</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="2%"
    align=right>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="1%"
    align=right>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="15%" align=right>$</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="2%"
    align=right>&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD bgColor=#e6efff align=left>10% increase in silver price </TD>
    <TD bgColor=#e6efff width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="15%" align=right><B>9,005</B> </TD>
    <TD bgColor=#e6efff width="2%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="15%" align=right>7,359 </TD>
    <TD bgColor=#e6efff width="2%" align=left>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left>10% increase in zinc price </TD>
    <TD width="1%" align=left>&nbsp;</TD>
    <TD width="15%" align=right><B>605</B> </TD>
    <TD width="2%" align=left>&nbsp;</TD>
    <TD width="1%" align=left>&nbsp;</TD>
    <TD width="15%" align=right>- </TD>
    <TD width="2%" align=left>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD bgColor=#e6efff align=left>10% increase in diesel and natural gas
      prices </TD>
    <TD bgColor=#e6efff width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="15%" align=right><B>(1,192</B></TD>
    <TD bgColor=#e6efff width="2%" align=left><B>)</B> </TD>
    <TD bgColor=#e6efff width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="15%" align=right>(658</TD>
    <TD bgColor=#e6efff width="2%" align=left>) </TD></TR></TABLE></DIV>
<P style="MARGIN-LEFT: 5%" align=justify>The Company holds certain investments
in available for sale marketable securities which are measured at fair value,
being the closing price of each equity investment at the balance sheet date. The
Company is exposed to changes in share prices which would result in gains and
losses being recognized in other comprehensive income. </P>
<P style="MARGIN-LEFT: 5%" align=justify><B>(ii)</B><B>&nbsp; </B><B>Currency
Risk </B></P>
<P style="MARGIN-LEFT: 5%" align=justify>Currency risk is the risk that the fair
values or future cash flows of the Company&#146;s financial instruments will
fluctuate because of changes in foreign currency rates. The Company&#146;s financial
instruments are exposed to currency risk where those instruments are denominated
in currencies that are not the same as their functional currency; exchange gains
and losses in these situations impact earnings. The Company&#146;s sales of silver
and zinc are denominated in US dollars and thus the risk is related to costs
incurred and other non-USD financial instruments. </P>
<P style="MARGIN-LEFT: 5%" align=justify>The following are the most significant
areas of exposure to currency risk: </P>
<TABLE
style="BORDER-COLOR: black; BORDER-COLLAPSE: collapse; FONT-SIZE: 10pt; "
border=0 cellSpacing=0 cellPadding=0 width="100%">
  <TR vAlign=top>
    <TD width="5%" >&nbsp;</TD>
    <TD align=left>&nbsp; </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="1%"
    align=left>&nbsp;</TD>
    <TD colspan="10"
      align=center style="BORDER-BOTTOM: #000000 1px solid"> <B>December 31, 2011</B> </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="2%"
    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 style="BORDER-BOTTOM: #000000 1px solid" width="1%"
    align=left>&nbsp;</TD>
    <TD width="12%"
      align=right nowrap style="BORDER-BOTTOM: #000000 1px solid"><B>Canadian dollar</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>Argentine peso</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>Australian dollar</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>Mexican peso</B> </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="2%"
    align=left>&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD width="5%">&nbsp;</TD>
    <TD bgColor=#e6efff align=left>Cash </TD>
    <TD bgColor=#e6efff width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="12%" align=right>80,480 </TD>
    <TD bgColor=#e6efff width="2%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="12%" align=right>6,051 </TD>
    <TD bgColor=#e6efff width="2%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="12%" align=right>- </TD>
    <TD bgColor=#e6efff width="2%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="12%" align=right>584 </TD>
    <TD bgColor=#e6efff width="2%" align=left>&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD width="5%">&nbsp;</TD>
    <TD align=left>Marketable securities </TD>
    <TD width="1%" align=left>&nbsp;</TD>
    <TD width="12%" align=right>13,753 </TD>
    <TD width="2%" align=left>&nbsp;</TD>
    <TD width="1%" align=left>&nbsp;</TD>
    <TD width="12%" align=right>- </TD>
    <TD width="2%" align=left>&nbsp;</TD>
    <TD width="1%" align=left>&nbsp;</TD>
    <TD width="12%" align=right>19,787 </TD>
    <TD width="2%" align=left>&nbsp;</TD>
    <TD width="1%" align=left>&nbsp;</TD>
    <TD width="12%" align=right>- </TD>
    <TD width="2%" align=left>&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD width="5%">&nbsp;</TD>
    <TD bgColor=#e6efff align=left>Accounts receivable </TD>
    <TD bgColor=#e6efff width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="12%" align=right>- </TD>
    <TD bgColor=#e6efff width="2%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="12%" align=right>- </TD>
    <TD bgColor=#e6efff width="2%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="12%" align=right>5,045 </TD>
    <TD bgColor=#e6efff width="2%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="12%" align=right>- </TD>
    <TD bgColor=#e6efff width="2%" align=left>&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD width="5%">&nbsp;</TD>
    <TD align=left>Value added tax receivable </TD>
    <TD width="1%" align=left>&nbsp;</TD>
    <TD width="12%" align=right>- </TD>
    <TD width="2%" align=left>&nbsp;</TD>
    <TD width="1%" align=left>&nbsp;</TD>
    <TD width="12%" align=right>89,636 </TD>
    <TD width="2%" align=left>&nbsp;</TD>
    <TD width="1%" align=left>&nbsp;</TD>
    <TD width="12%" align=right>- </TD>
    <TD width="2%" align=left>&nbsp;</TD>
    <TD width="1%" align=left>&nbsp;</TD>
    <TD width="12%" align=right>1,006 </TD>
    <TD width="2%" align=left>&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD width="5%">&nbsp;</TD>
    <TD bgColor=#e6efff align=left>Trade and other payables </TD>
    <TD bgColor=#e6efff width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="12%" align=right>(7,825</TD>
    <TD bgColor=#e6efff width="2%" align=left>) </TD>
    <TD bgColor=#e6efff width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="12%" align=right>(11,608</TD>
    <TD bgColor=#e6efff width="2%" align=left>) </TD>
    <TD bgColor=#e6efff width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="12%" align=right>(16,500</TD>
    <TD bgColor=#e6efff width="2%" align=left>) </TD>
    <TD bgColor=#e6efff width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="12%" align=right>(1,114</TD>
    <TD bgColor=#e6efff width="2%" align=left>) </TD>
  </TR>
  <TR vAlign=top>
    <TD width="5%">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>Warrant liability
    </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="1%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="12%"
    align=right>(7,067</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="2%" align=left>) </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="1%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="12%" align=right>- </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="2%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="1%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="12%" align=right>- </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="2%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="1%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="12%" align=right>- </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="2%"
    align=left>&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD width="5%">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" bgColor=#e6efff
      align=left>Total </TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" bgColor=#e6efff width="1%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" bgColor=#e6efff width="12%"
    align=right>79,341 </TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" bgColor=#e6efff width="2%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" bgColor=#e6efff width="1%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" bgColor=#e6efff width="12%"
    align=right>84,079 </TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" bgColor=#e6efff width="2%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" bgColor=#e6efff width="1%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" bgColor=#e6efff width="12%"
    align=right>8,332 </TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" bgColor=#e6efff width="2%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" bgColor=#e6efff width="1%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" bgColor=#e6efff width="12%"
    align=right>476 </TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" bgColor=#e6efff width="2%"
    align=left>&nbsp;</TD>
  </TR>
</TABLE>
<BR>
<TABLE
style="BORDER-COLOR: black; BORDER-COLLAPSE: collapse; FONT-SIZE: 10pt; "
border=0 cellSpacing=0 cellPadding=0 width="100%">
  <TR vAlign=top>
    <TD width="5%" >&nbsp;</TD>
    <TD align=left>&nbsp; </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="1%"
    align=left>&nbsp;</TD>
    <TD colspan="10"
      align=center style="BORDER-BOTTOM: #000000 1px solid"> <B>December 31, 2010</B> </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="2%"
    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 style="BORDER-BOTTOM: #000000 1px solid" width="1%"
    align=left>&nbsp;</TD>
    <TD width="12%"
      align=right nowrap style="BORDER-BOTTOM: #000000 1px solid"><B>Canadian dollar</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>Argentine peso</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>Australian dollar</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>Mexican peso</B> </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="2%"
    align=left>&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD width="5%">&nbsp;</TD>
    <TD bgColor=#e6efff align=left>Cash </TD>
    <TD bgColor=#e6efff width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="12%" align=right>164,557 </TD>
    <TD bgColor=#e6efff width="2%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="12%" align=right>9,588 </TD>
    <TD bgColor=#e6efff width="2%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="12%" align=right>151 </TD>
    <TD bgColor=#e6efff width="2%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="12%" align=right>487 </TD>
    <TD bgColor=#e6efff width="2%" align=left>&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD width="5%">&nbsp;</TD>
    <TD align=left>Marketable securities </TD>
    <TD width="1%" align=left>&nbsp;</TD>
    <TD width="12%" align=right>36,700 </TD>
    <TD width="2%" align=left>&nbsp;</TD>
    <TD width="1%" align=left>&nbsp;</TD>
    <TD width="12%" align=right>- </TD>
    <TD width="2%" align=left>&nbsp;</TD>
    <TD width="1%" align=left>&nbsp;</TD>
    <TD width="12%" align=right>- </TD>
    <TD width="2%" align=left>&nbsp;</TD>
    <TD width="1%" align=left>&nbsp;</TD>
    <TD width="12%" align=right>- </TD>
    <TD width="2%" align=left>&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD width="5%">&nbsp;</TD>
    <TD bgColor=#e6efff align=left>Accounts receivable </TD>
    <TD bgColor=#e6efff width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="12%" align=right>4,821 </TD>
    <TD bgColor=#e6efff width="2%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="12%" align=right>- </TD>
    <TD bgColor=#e6efff width="2%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="12%" align=right>- </TD>
    <TD bgColor=#e6efff width="2%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="12%" align=right>- </TD>
    <TD bgColor=#e6efff width="2%" align=left>&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD width="5%">&nbsp;</TD>
    <TD align=left>Value added tax receivable </TD>
    <TD width="1%" align=left>&nbsp;</TD>
    <TD width="12%" align=right>- </TD>
    <TD width="2%" align=left>&nbsp;</TD>
    <TD width="1%" align=left>&nbsp;</TD>
    <TD width="12%" align=right>71,683 </TD>
    <TD width="2%" align=left>&nbsp;</TD>
    <TD width="1%" align=left>&nbsp;</TD>
    <TD width="12%" align=right>- </TD>
    <TD width="2%" align=left>&nbsp;</TD>
    <TD width="1%" align=left>&nbsp;</TD>
    <TD width="12%" align=right>- </TD>
    <TD width="2%" align=left>&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD width="5%">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff
      align=left>Trade and other payables </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff width="1%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff width="12%"
    align=right>(5,984</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff width="2%"
    align=left>) </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff width="1%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff width="12%"
    align=right>(13,044</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff width="2%"
    align=left>) </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff width="1%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff width="12%"
    align=right>(12</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff width="2%"
    align=left>) </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff width="1%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff width="12%"
    align=right>(219</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff width="2%"
    align=left>) </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" width="1%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" width="12%"
      align=right>200,094 </TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" width="2%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" width="1%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" width="12%"
      align=right>68,227 </TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" width="2%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" width="1%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" width="12%" align=right>139 </TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" width="2%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" width="1%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" width="12%" align=right>268 </TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" width="2%"
    align=left>&nbsp;</TD>
  </TR>
</TABLE>
<BR>
<TABLE
style="BORDER-COLOR: black; BORDER-COLLAPSE: collapse; FONT-SIZE: 10pt; "
border=0 cellSpacing=0 cellPadding=0 width="100%">
  <TR vAlign=top>
    <TD style="BORDER-TOP: #000000 1px solid" align=right>57 | <FONT
      color=#7e7e7e>P a g e</FONT> </TD>
  </TR>
</TABLE>
<HR style="PAGE-BREAK-AFTER: always" align=center color=black SIZE=5
width="100%" noShade>
<A name=page_58></A><BR>
<TABLE
style="BORDER-COLOR: black; BORDER-COLLAPSE: collapse; FONT-SIZE: 10pt; "
border=0 cellSpacing=0 cellPadding=0 width="100%">
  <TR vAlign=top>
    <TD align=left><FONT size=4><B>Silver Standard Resources Inc.</B> </FONT></TD>
  </TR>
  <TR vAlign=top>
    <TD align=left><FONT size=3>Notes to the Consolidated Financial Statements
      </FONT></TD>
  </TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left><FONT
      size=3>December 31, 2011 and 2010 and January 1, 2010 </FONT></TD>
  </TR>
  <TR vAlign=top>
    <TD align=left>(tabular amounts expressed in thousands of United States dollars
      unless otherwise stated) </TD>
  </TR>
</TABLE>
<BR>
<TABLE
style="BORDER-COLOR: black; BORDER-COLLAPSE: collapse; FONT-SIZE: 10pt; "
border=0 cellSpacing=0 cellPadding=0 width="100%" BCLLIST>

  <TR>
    <TD vAlign=top width="5%"><B>23.</B> </TD>
    <TD>
      <P align=justify><B>FINANCIAL RISK MANAGEMENT (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 October 26, 2011, the Argentina government announced a
      decree that requires all funds from export sales to be repatriated to
      Argentina and converted into Argentine 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 monitoring the situation closely. The impact of the transfer tax should
      not have a material impact on the Company.</P></TD></TR>
  <TR>
    <TD width="5%">&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
  <TR>
    <TD width="5%"></TD>
    <TD>
      <P align=justify>The Company monitors and manages this risk with the
      objective of ensuring its group-wide exposure to negative fluctuations in
      currencies against the U.S. dollars is managed. As at December 31, 2011
      the Company has not entered into any derivatives to mitigate this
    risk.</P></TD></TR>
  <TR>
    <TD width="5%">&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
  <TR>
    <TD width="5%"></TD>
    <TD>
      <P align=justify>A 10% increase in the United States dollar exchange rate
      on financial assets and liabilities denominated in the following
      currencies, with all other variables held constant, would have resulted in
      the following impact to the Company&#146;s after-tax net
  income:</P></TD></TR></TABLE><BR>
<DIV align=center>
<TABLE
style="BORDER-COLOR: black; BORDER-COLLAPSE: collapse; FONT-SIZE: 10pt; "
border=0 cellSpacing=0 cellPadding=0 width="80%">

  <TR vAlign=top>
    <TD align=left >&nbsp; </TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="17%" 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="17%" align=right nowrap><STRONG>2010</STRONG></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"  width="1%"
    align=right>&nbsp;</TD>
    <TD width="17%" align=right nowrap style="BORDER-BOTTOM: #000000 1px solid">$</TD>
    <TD  width="2%"
    align=right nowrap style="BORDER-BOTTOM: #000000 1px solid">&nbsp;</TD>
    <TD  width="1%"
    align=right nowrap style="BORDER-BOTTOM: #000000 1px solid">&nbsp;</TD>
    <TD width="17%" align=right nowrap style="BORDER-BOTTOM: #000000 1px solid">$</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="2%"
    align=right>&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD bgColor=#e6efff align=left >Canadian dollar </TD>
    <TD bgColor=#e6efff  width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="17%" align=right><B>(5,830</B></TD>
    <TD bgColor=#e6efff  width="2%" align=left><B>)</B> </TD>
    <TD bgColor=#e6efff  width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="17%" align=right>(12,183</TD>
    <TD bgColor=#e6efff  width="2%" align=left>) </TD></TR>
  <TR vAlign=top>
    <TD align=left >Argentine peso </TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="17%" align=right><B>(5,635</B></TD>
    <TD  width="2%" align=left><B>)</B> </TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="17%" align=right>(4,514</TD>
    <TD  width="2%" align=left>) </TD></TR>
  <TR vAlign=top>
    <TD bgColor=#e6efff align=left >Australian dollar </TD>
    <TD bgColor=#e6efff  width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="17%" align=right><B>(630</B></TD>
    <TD bgColor=#e6efff  width="2%" align=left><B>)</B> </TD>
    <TD bgColor=#e6efff  width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="17%" align=right>(10</TD>
    <TD bgColor=#e6efff  width="2%" align=left>) </TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left
      >Mexican peso </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="1%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="17%"
      align=right><B>(33</B></TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="2%"
    align=left><B>)</B> </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="1%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="17%"
align=right>(19</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="2%"
    align=left>) </TD></TR></TABLE></DIV>
<P style="MARGIN-LEFT: 5%" align=justify><B>(iii) &nbsp;Interest Rate Risk
</B></P>
<P style="MARGIN-LEFT: 5%" align=justify>Interest rate risk is the risk that the
fair values or future cash flows of the Company&#146;s financial instruments will
fluctuate because of changes in market interest rates. 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 long-term convertible notes have
fixed interest rates and are not exposed to fluctuations in interest rates; a
change in interest rates would impact the fair value of the instruments, but
because the notes are recorded at amortized cost there would be no impact on the
financial results of the Company. The Company monitors its exposure to interest
rates closely and has not entered into any derivative contracts to manage its
risk. </P>
<P style="MARGIN-LEFT: 5%" align=justify>As at December 31, 2011, the weighted
average interest rate on our cash and cash equivalents was 0.14% (2010 - 0.89%)
.. With other variables unchanged, a 1% increase in the interest rate would
increase after tax net income by $2,340,000 (2010 - $450,000). </P>
<P style="MARGIN-LEFT: 5%" align=justify><B>b)&nbsp;&nbsp;
</B><B>&nbsp;</B><B>Credit Risk </B></P>
<P style="MARGIN-LEFT: 5%" 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 the collectability of trade
receivables in the ordinary course of business and the quality of its financial
investments.</P>
<P style="MARGIN-LEFT: 5%" align=justify><B>Credit risk related to financial
institutions and cash deposits</B> The Company&#146;s policy is only to utilise
highly rated financial institutions and only to invest in government securities.
The Company considers the risk of loss associated with cash deposits to be
low.</P>
<TABLE
style="BORDER-COLOR: black; BORDER-COLLAPSE: collapse; FONT-SIZE: 10pt; "
border=0 cellSpacing=0 cellPadding=0 width="100%">
  <TR vAlign=top>
    <TD style="BORDER-TOP: #000000 1px solid" align=right>58 | <FONT
      color=#7e7e7e>P a g e</FONT> </TD>
  </TR>
</TABLE>
<HR style="PAGE-BREAK-AFTER: always" align=center color=black SIZE=5
width="100%" noShade>
<A name=page_59></A><BR>
<TABLE
style="BORDER-COLOR: black; BORDER-COLLAPSE: collapse; FONT-SIZE: 10pt; "
border=0 cellSpacing=0 cellPadding=0 width="100%">
  <TR vAlign=top>
    <TD align=left><FONT size=4><B>Silver Standard Resources Inc.</B> </FONT></TD>
  </TR>
  <TR vAlign=top>
    <TD align=left><FONT size=3>Notes to the Consolidated Financial Statements
      </FONT></TD>
  </TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left><FONT
      size=3>December 31, 2011 and 2010 and January 1, 2010 </FONT></TD>
  </TR>
  <TR vAlign=top>
    <TD align=left>(tabular amounts expressed in thousands of United States dollars
      unless otherwise stated) </TD>
  </TR>
</TABLE>
<BR>
<TABLE
style="BORDER-COLOR: black; BORDER-COLLAPSE: collapse; FONT-SIZE: 10pt; "
border=0 cellSpacing=0 cellPadding=0 width="100%" BCLLIST>

  <TR>
    <TD vAlign=top width="5%"><B>23.</B> </TD>
    <TD>
      <P align=justify><B>FINANCIAL RISK MANAGEMENT (Cont&#146;d)</B></P></TD></TR>
  <TR>
    <TD width="5%">&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
  <TR>
    <TD width="5%"></TD>
    <TD>
      <P align=justify><B>Credit risk related to trade receivables </B>The
      Company is subject to significant concentrations of credit risk related to
      trade receivables because all of its sales through 2011 were to a single
      customer. However, the Company has not recorded an allowance against trade
      receivables because it is confident of the collectability based on the
      nature of its customer and all balances owed have been settled in full
      when due. In order to mitigate this risk, the Company ensures a minimum
      creditworthiness of customers, and has entered into sales agreements with
      additional customers in 2012. </P>
      <P align=justify><B>Credit risk related to other financial
        assets </B>All other receivable balances are expected to be collectible in
        full due to the nature of the counterparties and/or a previous history of
    collectability.</P></TD></TR>
  <TR>
    <TD width="5%">&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
  <TR>
    <TD width="5%"></TD>
    <TD>
      <P align=justify>The Company also has credit risk through its significant
      value added tax receivable balance that is collectible with the government
      of Argentina. The balance is expected to be recoverable in full but due to
      the legislative rules and complex collection process the asset has been
      classified as non-current. The Company believes that this balance is
      collectible in full.</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 maximum exposure to credit risk as at
      December 31 was as follows:</P></TD></TR></TABLE><BR>
<DIV align=center>
<TABLE
style="BORDER-COLOR: black; BORDER-COLLAPSE: collapse; FONT-SIZE: 10pt; "
border=0 cellSpacing=0 cellPadding=0 width="70%">

  <TR vAlign=top>
    <TD align=left >&nbsp; </TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="17%" align=right><B>2011</B> </TD>
    <TD  width="2%" align=left>&nbsp;</TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="17%" align=right><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"  width="1%"
    align=right>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="17%" align=right>$</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="2%"
    align=right>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="1%"
    align=right>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="17%" align=right>$</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="2%"
    align=right>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD bgColor=#e6efff align=left >Cash and cash equivalents </TD>
    <TD bgColor=#e6efff  width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="17%" align=right><B>329,055</B> </TD>
    <TD bgColor=#e6efff  width="2%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff  width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="17%" align=right>232,311 </TD>
    <TD bgColor=#e6efff  width="2%" align=left>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left >Value added tax receivable </TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="17%" align=right><B>90,642</B> </TD>
    <TD  width="2%" align=left>&nbsp;</TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="17%" align=right>71,683 </TD>
    <TD  width="2%" align=left>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD bgColor=#e6efff align=left >Trade and other receivables
    </TD>
    <TD bgColor=#e6efff  width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="17%" align=right><B>5,045</B> </TD>
    <TD bgColor=#e6efff  width="2%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff  width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="17%" align=right>35,916 </TD>
    <TD bgColor=#e6efff  width="2%" align=left>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left
      >Other financial assets </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="1%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="17%"
      align=right><B>1,768</B> </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="2%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="1%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="17%" align=right>9,051
    </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="2%"
    align=left>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 2px solid" bgColor=#e6efff align=left
    >&nbsp; </TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" bgColor=#e6efff
    width="1%" align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" bgColor=#e6efff width="17%"
    align=right><B>426,510</B> </TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" bgColor=#e6efff
    width="2%" align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" bgColor=#e6efff
    width="1%" align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" bgColor=#e6efff width="17%"
    align=right>348,961 </TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" bgColor=#e6efff
    width="2%" align=left>&nbsp;</TD></TR></TABLE></DIV>
<P style="MARGIN-LEFT: 5%" align=justify>At December 31, 2011, no amounts were
held as collateral. </P>
<P style="MARGIN-LEFT: 5%" align=justify><B>c)&nbsp;&nbsp;
</B><B>&nbsp;</B><B>Liquidity Risk </B></P>
<P style="MARGIN-LEFT: 5%" align=justify>Liquidity risk is the risk that the
Company will not be able to meet its obligations over financial instruments 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 as described in note 23(d). The Company&#146;s objective is to ensure that
there are sufficient financial resources to meet its business requirements for a
minimum of twelve months. </P>
<TABLE
style="BORDER-COLOR: black; BORDER-COLLAPSE: collapse; FONT-SIZE: 10pt; "
border=0 cellSpacing=0 cellPadding=0 width="100%">
  <TR vAlign=top>
    <TD style="BORDER-TOP: #000000 1px solid" align=right>59 | <FONT
      color=#7e7e7e>P a g e</FONT> </TD>
  </TR>
</TABLE>
<HR style="PAGE-BREAK-AFTER: always" align=center color=black SIZE=5
width="100%" noShade>
<A name=page_60></A><BR>
<TABLE
style="BORDER-COLOR: black; BORDER-COLLAPSE: collapse; FONT-SIZE: 10pt; "
border=0 cellSpacing=0 cellPadding=0 width="100%">
  <TR vAlign=top>
    <TD align=left><FONT size=4><B>Silver Standard Resources Inc.</B> </FONT></TD>
  </TR>
  <TR vAlign=top>
    <TD align=left><FONT size=3>Notes to the Consolidated Financial Statements
      </FONT></TD>
  </TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left><FONT
      size=3>December 31, 2011 and 2010 and January 1, 2010 </FONT></TD>
  </TR>
  <TR vAlign=top>
    <TD align=left>(tabular amounts expressed in thousands of United States dollars
      unless otherwise stated) </TD>
  </TR>
</TABLE>
<BR>
<TABLE
style="BORDER-COLOR: black; BORDER-COLLAPSE: collapse; FONT-SIZE: 10pt; "
border=0 cellSpacing=0 cellPadding=0 width="100%" BCLLIST>

  <TR>
    <TD vAlign=top width="5%"><B>23.</B> </TD>
    <TD>
      <P align=justify><B>FINANCIAL RISK MANAGEMENT (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>In the normal course of business the Company enters into
      contracts that give rise to commitments for future minimum payments. The
      following is a maturity profile of financial liabilities and operating and
      capital commitments presenting contractual undiscounted cash flows as at
      December 31, 2011:</P></TD></TR></TABLE><BR>
<DIV>
  <TABLE
style="BORDER-COLOR: black; BORDER-COLLAPSE: collapse; FONT-SIZE: 10pt; "
border=0 cellSpacing=0 cellPadding=0 width="100%">
    <TR vAlign=top>
      <TD width="5%"  >&nbsp;</TD>
      <TD align=left>&nbsp; </TD>
      <TD width="1%" align=left>&nbsp;</TD>
      <TD colspan="13" align=center nowrap > <B>Payments due by period</B> </TD>
      <TD width="2%" align=left>&nbsp;</TD>
    </TR>
    <TR vAlign=top>
      <TD width="5%" >&nbsp;</TD>
      <TD align=left><B>Contractual obligations</B> </TD>
      <TD width="1%" align=left>&nbsp;</TD>
      <TD width="8%" 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="14%" align=right nowrap><B>Less than one year</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>1 - 3 years</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>4-5 years</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>After 5 years</B> </TD>
      <TD width="2%" 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 style="BORDER-BOTTOM: #000000 1px solid" width="1%"
    align=right>&nbsp;</TD>
      <TD width="8%" align=right nowrap style="BORDER-BOTTOM: #000000 1px solid"
    >$&nbsp;</TD>
      <TD width="2%"
    align=right nowrap style="BORDER-BOTTOM: #000000 1px solid">&nbsp;</TD>
      <TD width="1%"
    align=right nowrap style="BORDER-BOTTOM: #000000 1px solid">&nbsp;</TD>
      <TD width="14%" align=right nowrap style="BORDER-BOTTOM: #000000 1px solid">$</TD>
      <TD width="2%"
    align=right nowrap style="BORDER-BOTTOM: #000000 1px solid">&nbsp;</TD>
      <TD width="1%"
    align=right nowrap style="BORDER-BOTTOM: #000000 1px solid">&nbsp;</TD>
      <TD width="8%" align=right nowrap style="BORDER-BOTTOM: #000000 1px solid"
    >$</TD>
      <TD width="2%"
    align=right nowrap style="BORDER-BOTTOM: #000000 1px solid">&nbsp;</TD>
      <TD width="1%"
    align=right nowrap style="BORDER-BOTTOM: #000000 1px solid">&nbsp;</TD>
      <TD width="8%" align=right nowrap style="BORDER-BOTTOM: #000000 1px solid"
    >$</TD>
      <TD width="2%"
    align=right nowrap style="BORDER-BOTTOM: #000000 1px solid">&nbsp;</TD>
      <TD width="1%"
    align=right nowrap style="BORDER-BOTTOM: #000000 1px solid">&nbsp;</TD>
      <TD width="8%" align=right nowrap style="BORDER-BOTTOM: #000000 1px solid"
    >$</TD>
      <TD style="BORDER-BOTTOM: #000000 1px solid" width="2%"
    align=left>&nbsp;</TD>
    </TR>
    <TR>
      <TD width="5%" >&nbsp;</TD>
      <TD>&nbsp; </TD>
      <TD width="1%">&nbsp;</TD>
      <TD width="8%" >&nbsp; </TD>
      <TD width="2%">&nbsp;</TD>
      <TD width="1%">&nbsp;</TD>
      <TD width="14%">&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 bgColor=#e6efff align=left>Trade and other payables </TD>
      <TD bgColor=#e6efff width="1%" align=left>&nbsp;</TD>
      <TD bgColor=#e6efff width="8%" align=right >46,898 </TD>
      <TD bgColor=#e6efff width="2%" align=left>&nbsp;</TD>
      <TD bgColor=#e6efff width="1%" align=left>&nbsp;</TD>
      <TD bgColor=#e6efff width="14%" align=right>46,898 </TD>
      <TD bgColor=#e6efff width="2%" align=left>&nbsp;</TD>
      <TD bgColor=#e6efff width="1%" align=left>&nbsp;</TD>
      <TD bgColor=#e6efff width="8%" align=right >- </TD>
      <TD bgColor=#e6efff width="2%" align=left>&nbsp;</TD>
      <TD bgColor=#e6efff width="1%" align=left>&nbsp;</TD>
      <TD bgColor=#e6efff width="8%" align=right >- </TD>
      <TD bgColor=#e6efff width="2%" align=left>&nbsp;</TD>
      <TD bgColor=#e6efff width="1%" align=left>&nbsp;</TD>
      <TD bgColor=#e6efff width="8%" align=right >- </TD>
      <TD bgColor=#e6efff width="2%" align=left>&nbsp;</TD>
    </TR>
    <TR vAlign=top>
      <TD width="5%" >&nbsp;</TD>
      <TD align=left>Convertible notes <SUP>(i)</SUP> </TD>
      <TD width="1%" align=left>&nbsp;</TD>
      <TD width="8%" align=right >138,000 </TD>
      <TD width="2%" align=left>&nbsp;</TD>
      <TD width="1%" align=left>&nbsp;</TD>
      <TD width="14%" align=right>- </TD>
      <TD width="2%" align=left>&nbsp;</TD>
      <TD width="1%" align=left>&nbsp;</TD>
      <TD width="8%" align=right >138,000 </TD>
      <TD width="2%" align=left>&nbsp;</TD>
      <TD width="1%" align=left>&nbsp;</TD>
      <TD width="8%" align=right >- </TD>
      <TD width="2%" align=left>&nbsp;</TD>
      <TD width="1%" align=left>&nbsp;</TD>
      <TD width="8%" align=right >- </TD>
      <TD width="2%" align=left>&nbsp;</TD>
    </TR>
    <TR vAlign=top>
      <TD width="5%" >&nbsp;</TD>
      <TD bgColor=#e6efff align=left>Interest on convertible notes <SUP>(i)</SUP> </TD>
      <TD bgColor=#e6efff width="1%" align=left>&nbsp;</TD>
      <TD bgColor=#e6efff width="8%" align=right >1,004 </TD>
      <TD bgColor=#e6efff width="2%" align=left>&nbsp;</TD>
      <TD bgColor=#e6efff width="1%" align=left>&nbsp;</TD>
      <TD bgColor=#e6efff width="14%" align=right>- </TD>
      <TD bgColor=#e6efff width="2%" align=left>&nbsp;</TD>
      <TD bgColor=#e6efff width="1%" align=left>&nbsp;</TD>
      <TD bgColor=#e6efff width="8%" align=right >1,004 </TD>
      <TD bgColor=#e6efff width="2%" align=left>&nbsp;</TD>
      <TD bgColor=#e6efff width="1%" align=left>&nbsp;</TD>
      <TD bgColor=#e6efff width="8%" align=right >- </TD>
      <TD bgColor=#e6efff width="2%" align=left>&nbsp;</TD>
      <TD bgColor=#e6efff width="1%" align=left>&nbsp;</TD>
      <TD bgColor=#e6efff width="8%" align=right >- </TD>
      <TD bgColor=#e6efff width="2%" align=left>&nbsp;</TD>
    </TR>
    <TR vAlign=top>
      <TD width="5%" >&nbsp;</TD>
      <TD align=left>Capital expenditure commitments </TD>
      <TD width="1%" align=left>&nbsp;</TD>
      <TD width="8%" align=right >9,635 </TD>
      <TD width="2%" align=left>&nbsp;</TD>
      <TD width="1%" align=left>&nbsp;</TD>
      <TD width="14%" align=right>7,573 </TD>
      <TD width="2%" align=left>&nbsp;</TD>
      <TD width="1%" align=left>&nbsp;</TD>
      <TD width="8%" align=right >2,062 </TD>
      <TD width="2%" align=left>&nbsp;</TD>
      <TD width="1%" align=left>&nbsp;</TD>
      <TD width="8%" align=right >- </TD>
      <TD width="2%" align=left>&nbsp;</TD>
      <TD width="1%" align=left>&nbsp;</TD>
      <TD width="8%" align=right >- </TD>
      <TD width="2%" align=left>&nbsp;</TD>
    </TR>
    <TR vAlign=top>
      <TD width="5%" >&nbsp;</TD>
      <TD bgColor=#e6efff align=left>Minimum lease rental and lease payments </TD>
      <TD bgColor=#e6efff width="1%" align=left>&nbsp;</TD>
      <TD bgColor=#e6efff width="8%" align=right >505 </TD>
      <TD bgColor=#e6efff width="2%" align=left>&nbsp;</TD>
      <TD bgColor=#e6efff width="1%" align=left>&nbsp;</TD>
      <TD bgColor=#e6efff width="14%" align=right>453 </TD>
      <TD bgColor=#e6efff width="2%" align=left>&nbsp;</TD>
      <TD bgColor=#e6efff width="1%" align=left>&nbsp;</TD>
      <TD bgColor=#e6efff width="8%" align=right >52 </TD>
      <TD bgColor=#e6efff width="2%" align=left>&nbsp;</TD>
      <TD bgColor=#e6efff width="1%" align=left>&nbsp;</TD>
      <TD bgColor=#e6efff width="8%" align=right >- </TD>
      <TD bgColor=#e6efff width="2%" align=left>&nbsp;</TD>
      <TD bgColor=#e6efff width="1%" align=left>&nbsp;</TD>
      <TD bgColor=#e6efff width="8%" align=right >- </TD>
      <TD bgColor=#e6efff width="2%" align=left>&nbsp;</TD>
    </TR>
    <TR>
      <TD width="5%" >&nbsp;</TD>
      <TD style="BORDER-BOTTOM: #000000 2px solid">&nbsp; </TD>
      <TD style="BORDER-BOTTOM: #000000 2px solid" width="1%">&nbsp;</TD>
      <TD style="BORDER-BOTTOM: #000000 2px solid" width="8%"
      >&nbsp; </TD>
      <TD style="BORDER-BOTTOM: #000000 2px solid" width="2%">&nbsp;</TD>
      <TD style="BORDER-BOTTOM: #000000 2px solid" width="1%">&nbsp;</TD>
      <TD style="BORDER-BOTTOM: #000000 2px solid" width="14%">&nbsp; </TD>
      <TD style="BORDER-BOTTOM: #000000 2px solid" width="2%">&nbsp;</TD>
      <TD style="BORDER-BOTTOM: #000000 2px solid" width="1%">&nbsp;</TD>
      <TD style="BORDER-BOTTOM: #000000 2px solid" width="8%"
      >&nbsp; </TD>
      <TD style="BORDER-BOTTOM: #000000 2px solid" width="2%">&nbsp;</TD>
      <TD style="BORDER-BOTTOM: #000000 2px solid" width="1%">&nbsp;</TD>
      <TD style="BORDER-BOTTOM: #000000 2px solid" width="8%"
      >&nbsp; </TD>
      <TD style="BORDER-BOTTOM: #000000 2px solid" width="2%">&nbsp;</TD>
      <TD style="BORDER-BOTTOM: #000000 2px solid" width="1%">&nbsp;</TD>
      <TD style="BORDER-BOTTOM: #000000 2px solid" width="8%"
      >&nbsp; </TD>
      <TD style="BORDER-BOTTOM: #000000 2px solid" width="2%">&nbsp;</TD>
    </TR>
    <TR vAlign=top>
      <TD width="5%" >&nbsp;</TD>
      <TD style="BORDER-BOTTOM: #000000 2px solid" bgColor=#e6efff
      align=left>Total contractual obligations </TD>
      <TD style="BORDER-BOTTOM: #000000 2px solid" bgColor=#e6efff width="1%"
    align=left>&nbsp;</TD>
      <TD style="BORDER-BOTTOM: #000000 2px solid" bgColor=#e6efff width="8%"
    align=right >196,042 </TD>
      <TD style="BORDER-BOTTOM: #000000 2px solid" bgColor=#e6efff width="2%"
    align=left>&nbsp;</TD>
      <TD style="BORDER-BOTTOM: #000000 2px solid" bgColor=#e6efff width="1%"
    align=left>&nbsp;</TD>
      <TD style="BORDER-BOTTOM: #000000 2px solid" bgColor=#e6efff width="14%"
    align=right>54,924 </TD>
      <TD style="BORDER-BOTTOM: #000000 2px solid" bgColor=#e6efff width="2%"
    align=left>&nbsp;</TD>
      <TD style="BORDER-BOTTOM: #000000 2px solid" bgColor=#e6efff width="1%"
    align=left>&nbsp;</TD>
      <TD style="BORDER-BOTTOM: #000000 2px solid" bgColor=#e6efff width="8%"
    align=right >141,118 </TD>
      <TD style="BORDER-BOTTOM: #000000 2px solid" bgColor=#e6efff width="2%"
    align=left>&nbsp;</TD>
      <TD style="BORDER-BOTTOM: #000000 2px solid" bgColor=#e6efff width="1%"
    align=left>&nbsp;</TD>
      <TD style="BORDER-BOTTOM: #000000 2px solid" bgColor=#e6efff width="8%"
    align=right >- </TD>
      <TD style="BORDER-BOTTOM: #000000 2px solid" bgColor=#e6efff width="2%"
    align=left>&nbsp;</TD>
      <TD style="BORDER-BOTTOM: #000000 2px solid" bgColor=#e6efff width="1%"
    align=left>&nbsp;</TD>
      <TD style="BORDER-BOTTOM: #000000 2px solid" bgColor=#e6efff width="8%"
    align=right >- </TD>
      <TD style="BORDER-BOTTOM: #000000 2px solid" bgColor=#e6efff width="2%"
    align=left>&nbsp;</TD>
    </TR>
  </TABLE>
</DIV><BR>
<TABLE
style="BORDER-COLOR: black; BORDER-COLLAPSE: collapse; FONT-SIZE: 10pt; "
border=0 cellSpacing=0 cellPadding=0 width="100%" BCLLIST>

  <TR>
    <TD width="5%" ><SUP>&nbsp;</SUP></TD>
    <TD vAlign=top width="5%"><SUP>(i) </SUP></TD>
    <TD>
      <P align=justify>Convertible notes are due in 2028 but are redeemable in
      part or in full at the option of the holder on March 1 at each of 2013,
      2018, and 2023, or upon fundamental corporate changes. They are also
      redeemable by the Company in part or in full on and after March 5, 2013.
      The notes bear interest of 4.5% per annum and are convertible into common
      shares upon specified events at a fixed conversion price of approximately
      $44.33 per common share (note 14).</P></TD></TR></TABLE>
<P style="MARGIN-LEFT: 5%" align=justify>In the opinion of management, working
capital at December 31, 2011 together with future cash flows from operations is
sufficient to support the Company&#146;s commitments through 2012.</P>
<P style="MARGIN-LEFT: 5%" align=justify><B>d)</B><B>&nbsp;&nbsp;&nbsp;
</B><B>Capital management </B></P>
<P style="MARGIN-LEFT: 5%" align=justify>The Company&#146;s objectives when managing
capital are: </P>
<TABLE
style="BORDER-COLOR: black; BORDER-COLLAPSE: collapse; FONT-SIZE: 10pt; "
border=0 cellSpacing=0 cellPadding=0 width="100%">

  <TR vAlign=top>
    <TD width="5%" >&nbsp;</TD>
    <TD align=center>- </TD>
    <TD width="90%" align=left>
      <P align=justify>to safeguard its ability to continue as a going concern
      in order to develop and operate its current projects and pursue strategic
      growth initiatives; </P></TD></TR>
  <TR>
    <TD width="5%">&nbsp;</TD>
    <TD align=center>&nbsp;</TD>
    <TD width="90%" align=left>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD width="5%">&nbsp;</TD>
    <TD align=center>-</TD>
    <TD width="90%" align=left>
      <P align=justify>to maintain a flexible capital structure which optimizes
      the cost of capital; and </P></TD></TR>
  <TR>
    <TD width="5%">&nbsp;</TD>
    <TD align=center>&nbsp;</TD>
    <TD width="90%" align=left>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD width="5%">&nbsp;</TD>
    <TD align=center>-</TD>
    <TD width="90%" align=left>to provide an adequate return to shareholders.
    </TD></TR></TABLE>
<P style="MARGIN-LEFT: 5%" align=justify>In assessing the capital structure of
the Company, management includes in its assessment the components of
shareholders&#146; equity, non-current convertible notes, and cash and cash
equivalents. In order to facilitate the management of capital requirements, the
Company prepares annual expenditure budgets and continuously monitors and
reviews actual and forecasted cash flows. The annual and updated budgets are
monitored and approved by the Board of Directors. </P>
<P style="MARGIN-LEFT: 5%" align=justify>To maintain or adjust the capital
structure, the Company may, from time to time, issue new shares, issue new debt,
repay debt or dispose of non-core assets. The Company expects its current
capital resources will be sufficient to carry out its exploration plans and
support operations through the current operating period.</P>
<P style="MARGIN-LEFT: 5%" align=justify>The Company issued convertible notes
(note 14) but these do not contain any financial covenants. Accordingly, as of
December 31, 2011, there were no externally-imposed capital requirements. </P>
<TABLE
style="BORDER-COLOR: black; BORDER-COLLAPSE: collapse; FONT-SIZE: 10pt; "
border=0 cellSpacing=0 cellPadding=0 width="100%">
  <TR vAlign=top>
    <TD style="BORDER-TOP: #000000 1px solid" align=right>60 | <FONT
      color=#7e7e7e>P a g e</FONT> </TD>
  </TR>
</TABLE>
<HR style="PAGE-BREAK-AFTER: always" align=center color=black SIZE=5
width="100%" noShade>
<A name=page_61></A><BR>
<TABLE
style="BORDER-COLOR: black; BORDER-COLLAPSE: collapse; FONT-SIZE: 10pt; "
border=0 cellSpacing=0 cellPadding=0 width="100%">
  <TR vAlign=top>
    <TD align=left><FONT size=4><B>Silver Standard Resources Inc.</B> </FONT></TD>
  </TR>
  <TR vAlign=top>
    <TD align=left><FONT size=3>Notes to the Consolidated Financial Statements
      </FONT></TD>
  </TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left><FONT
      size=3>December 31, 2011 and 2010 and January 1, 2010 </FONT></TD>
  </TR>
  <TR vAlign=top>
    <TD align=left>(tabular amounts expressed in thousands of United States dollars
      unless otherwise stated) </TD>
  </TR>
</TABLE>
<BR>
<TABLE
style="BORDER-COLOR: black; BORDER-COLLAPSE: collapse; FONT-SIZE: 10pt; "
border=0 cellSpacing=0 cellPadding=0 width="100%" BCLLIST>

  <TR>
    <TD vAlign=top width="5%"><B>24.</B> </TD>
    <TD>
      <P align=justify><B>RELATED PARTY TRANSACTIONS</B></P></TD></TR></TABLE>
<P style="MARGIN-LEFT: 5%" align=justify><B>a)&nbsp;&nbsp;
</B><B>&nbsp;</B><B>Related party transactions </B></P>
<P style="MARGIN-LEFT: 5%" align=justify>During the year ended December 31,
2011, the Company recorded administrative, technical services and expense
reimbursements of $82,000 (2010 - $19,000) from companies related by common
directors or officers, including Pretium. At December 31, 2011, trade and other
receivables include $101,000 (2010 - $2,000) and trade and other payables
include $688,000 (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 style="MARGIN-LEFT: 5%" align=justify><B>b)&nbsp;&nbsp; &nbsp;Key management
compensation </B></P>
<P style="MARGIN-LEFT: 5%" align=justify>Key management includes directors
(executive and non-executive) and other key officers of the Company, including
the CEO, CFO and Senior Vice Presidents. The compensation paid or payable to key
management for employee services is shown below: </P>
<DIV align=center>
<TABLE
style="BORDER-COLOR: black; BORDER-COLLAPSE: collapse; FONT-SIZE: 10pt; "
border=0 cellSpacing=0 cellPadding=0 width="80%">

  <TR vAlign=top>
    <TD align=left>&nbsp; </TD>
    <TD width="1%" align=left>&nbsp;</TD>
    <TD width="17%" 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="17%" align=right nowrap><B>December 31,</B> </TD>
    <TD width="2%" align=left>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left>&nbsp; </TD>
    <TD width="1%" align=left>&nbsp;</TD>
    <TD width="17%" 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="17%" 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" width="1%"
    align=right>&nbsp;</TD>
    <TD width="17%" align=right nowrap style="BORDER-BOTTOM: #000000 1px solid">$</TD>
    <TD width="2%"
    align=right nowrap style="BORDER-BOTTOM: #000000 1px solid">&nbsp;</TD>
    <TD width="1%"
    align=right nowrap style="BORDER-BOTTOM: #000000 1px solid">&nbsp;</TD>
    <TD width="17%" align=right nowrap style="BORDER-BOTTOM: #000000 1px solid">$</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="2%"
    align=right>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD bgColor=#e6efff align=left>Salaries and other short-term employee
      benefits </TD>
    <TD bgColor=#e6efff width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="17%" align=right>2,252 </TD>
    <TD bgColor=#e6efff width="2%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="17%" align=right>3,507 </TD>
    <TD bgColor=#e6efff width="2%" align=left>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left>Post-employment benefits </TD>
    <TD width="1%" align=left>&nbsp;</TD>
    <TD width="17%" align=right>25 </TD>
    <TD width="2%" align=left>&nbsp;</TD>
    <TD width="1%" align=left>&nbsp;</TD>
    <TD width="17%" align=right>55 </TD>
    <TD width="2%" align=left>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD bgColor=#e6efff align=left>Termination benefits </TD>
    <TD bgColor=#e6efff width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="17%" align=right>1,067 </TD>
    <TD bgColor=#e6efff width="2%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="17%" align=right>1,160 </TD>
    <TD bgColor=#e6efff width="2%" align=left>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>Share-based
      compensation <SUP>(i)</SUP> </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="1%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="17%" align=right>2,904
    </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="2%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="1%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="17%" align=right>6,619
    </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="2%"
    align=left>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 2px solid" bgColor=#e6efff
      align=left><B>Total compensation</B> </TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" bgColor=#e6efff width="1%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" bgColor=#e6efff width="17%"
    align=right><B>6,248</B> </TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" bgColor=#e6efff width="2%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" bgColor=#e6efff width="1%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" bgColor=#e6efff width="17%"
    align=right><B>11,341</B> </TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" bgColor=#e6efff width="2%"
    align=left>&nbsp;</TD></TR></TABLE></DIV><BR>
<TABLE
style="BORDER-COLOR: black; BORDER-COLLAPSE: collapse; FONT-SIZE: 10pt; "
border=0 cellSpacing=0 cellPadding=0 width="100%" BCLLIST>

  <TR>
    <TD width="10%" >&nbsp;</TD>
    <TD vAlign=top width="5%"><SUP>(i)</SUP> </TD>
    <TD>
      <P align=justify>Share-based compensation includes mark-to-market
      adjustments on cumulative DSU positions as reported in the Consolidated
      Statements of Income.</P></TD></TR></TABLE>
<P style="MARGIN-LEFT: 5%" align=justify><B>c)</B><B>&nbsp;&nbsp;&nbsp;
</B><B>Principal Subsidiaries </B></P>
<P style="MARGIN-LEFT: 5%" align=justify>The consolidated financial statements
include the accounts of the company and its wholly-owned subsidiaries, the most
significant of which are presented in the following table: </P>
<TABLE
style="BORDER-COLOR: black; BORDER-COLLAPSE: collapse; FONT-SIZE: 10pt; "
border=0 cellSpacing=0 cellPadding=0 width="100%">

  <TR vAlign=top>
    <TD width="5%" >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left><B>Subsidiary</B>    </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="15%"
      align=left><B>Location</B> </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="15%"
      align=left><B>Ownership </B></TD>
  <TD style="BORDER-BOTTOM: #000000 1px solid" width="25%"
      align=left><STRONG>Project</STRONG> </TD>
  </TR>
  <TR vAlign=top>
    <TD width="5%">&nbsp;</TD>
    <TD bgColor=#e6efff align=left>Pacific Rim Mining Corporation Argentina,
      S.A. </TD>
    <TD bgColor=#e6efff width="15%" align=left>Argentina </TD>
    <TD bgColor=#e6efff width="15%" align=left>100% </TD>
    <TD bgColor=#e6efff width="25%" align=left>Diablillos </TD></TR>
  <TR vAlign=top>
    <TD width="5%">&nbsp;</TD>
    <TD align=left>Minera Silver Standard Chile S.A. </TD>
    <TD width="15%" align=left>Chile </TD>
    <TD width="15%" align=left>100% </TD>
    <TD width="25%" align=left>Challacollo </TD></TR>
  <TR vAlign=top>
    <TD width="5%">&nbsp;</TD>
    <TD bgColor=#e6efff align=left>Silver Standard Durango S.A. de C.V. </TD>
    <TD bgColor=#e6efff width="15%" align=left>Mexico </TD>
    <TD bgColor=#e6efff width="15%" align=left>100% </TD>
    <TD bgColor=#e6efff width="25%" align=left>Pitarrilla </TD></TR>
  <TR vAlign=top>
    <TD width="5%">&nbsp;</TD>
    <TD align=left>Silver Standard Exploraciones S.A. de C.V. </TD>
    <TD width="15%" align=left>Mexico </TD>
    <TD width="15%" align=left>100% </TD>
    <TD width="25%" align=left>Veta Colorada and others </TD></TR>
  <TR vAlign=top>
    <TD width="5%">&nbsp;</TD>
    <TD bgColor=#e6efff align=left>Silver Standard Mexico S.A. de C.V. </TD>
    <TD bgColor=#e6efff width="15%" align=left>Mexico </TD>
    <TD bgColor=#e6efff width="15%" align=left>100% </TD>
    <TD bgColor=#e6efff width="25%" align=left>San Agustin, Nazas and others
    </TD></TR>
  <TR vAlign=top>
    <TD width="5%">&nbsp;</TD>
    <TD align=left>Sociedad Minera Berenguela S.A. </TD>
    <TD width="15%" align=left>Peru </TD>
    <TD width="15%" align=left>100% </TD>
    <TD width="25%" align=left>Berenguela </TD></TR>
  <TR vAlign=top>
    <TD width="5%">&nbsp;</TD>
    <TD bgColor=#e6efff align=left>Reliant Ventures S.A.C. </TD>
    <TD bgColor=#e6efff width="15%" align=left>Peru </TD>
    <TD bgColor=#e6efff width="15%" align=left>100% </TD>
    <TD bgColor=#e6efff width="25%" align=left>San Luis </TD></TR>
  <TR vAlign=top>
    <TD width="5%">&nbsp;</TD>
    <TD align=left>Candelaria Mining Company </TD>
    <TD width="15%" align=left>USA (Delaware) </TD>
    <TD width="15%" align=left>100% </TD>
    <TD width="25%" align=left>Candelaria </TD></TR>
  <TR vAlign=top>
    <TD width="5%">&nbsp;</TD>
    <TD bgColor=#e6efff align=left>Mina Pirquitas, Inc. </TD>
    <TD bgColor=#e6efff width="15%" align=left>USA (Delaware) </TD>
    <TD bgColor=#e6efff width="15%" align=left>100% </TD>
    <TD bgColor=#e6efff width="25%" align=left>Pirquitas </TD></TR>
  <TR vAlign=top>
    <TD width="5%">&nbsp;</TD>
    <TD align=left>Maverick Silver Inc. </TD>
    <TD width="15%" align=left>USA (Nevada) </TD>
    <TD width="15%" align=left>100% </TD>
    <TD width="25%" align=left>Maverick Springs </TD></TR></TABLE><BR>
<TABLE
style="BORDER-COLOR: black; BORDER-COLLAPSE: collapse; FONT-SIZE: 10pt; "
border=0 cellSpacing=0 cellPadding=0 width="100%">
  <TR vAlign=top>
    <TD style="BORDER-TOP: #000000 1px solid" align=right>61 | <FONT
      color=#7e7e7e>P a g e</FONT> </TD>
  </TR>
</TABLE>
<HR style="PAGE-BREAK-AFTER: always" align=center color=black SIZE=5
width="100%" noShade>
<A name=page_62></A><BR>
<TABLE
style="BORDER-COLOR: black; BORDER-COLLAPSE: collapse; FONT-SIZE: 10pt; "
border=0 cellSpacing=0 cellPadding=0 width="100%">
  <TR vAlign=top>
    <TD align=left><FONT size=4><B>Silver Standard Resources Inc.</B> </FONT></TD>
  </TR>
  <TR vAlign=top>
    <TD align=left><FONT size=3>Notes to the Consolidated Financial Statements
      </FONT></TD>
  </TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left><FONT
      size=3>December 31, 2011 and 2010 and January 1, 2010 </FONT></TD>
  </TR>
  <TR vAlign=top>
    <TD align=left>(tabular amounts expressed in thousands of United States dollars
      unless otherwise stated) </TD>
  </TR>
</TABLE>
<BR>
<TABLE
style="BORDER-COLOR: black; BORDER-COLLAPSE: collapse; FONT-SIZE: 10pt; "
border=0 cellSpacing=0 cellPadding=0 width="100%" BCLLIST>

  <TR>
    <TD vAlign=top width="5%"><B>25.</B> </TD>
    <TD>
      <P align=justify><B>SUPPLEMENTAL CASH FLOW INFORMATION</B></P></TD></TR>
  <TR>
    <TD width="5%">&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
  <TR>
    <TD width="5%"></TD>
    <TD>
      <P align=justify>Changes in working capital items during the year ended
      December 31, 2011 and 2010 are as follows:</P></TD></TR></TABLE><BR>
<DIV align=center>
<TABLE
style="BORDER-COLOR: black; BORDER-COLLAPSE: collapse; FONT-SIZE: 10pt; "
border=0 cellSpacing=0 cellPadding=0 width="90%">

  <TR vAlign=top>
    <TD align=left >&nbsp; </TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="15%" align=right><B>2011</B> </TD>
    <TD  width="2%" align=left>&nbsp;</TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="15%" align=right><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"  width="1%"
    align=right>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="15%"
    align=right>$&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="2%"
    align=right>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="1%"
    align=right>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="15%" align=right>$</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="2%"
    align=right>&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD bgColor=#e6efff align=left >Trade and other receivables
    </TD>
    <TD bgColor=#e6efff  width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="15%" align=right><B>19,831</B> </TD>
    <TD bgColor=#e6efff  width="2%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff  width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="15%" align=right>(20,245</TD>
    <TD bgColor=#e6efff  width="2%" align=left>) </TD></TR>
  <TR vAlign=top>
    <TD align=left >Other financial assets </TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="15%" align=right><B>-</B> </TD>
    <TD  width="2%" align=left>&nbsp;</TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="15%" align=right>(201</TD>
    <TD  width="2%" align=left>) </TD></TR>
  <TR vAlign=top>
    <TD bgColor=#e6efff align=left >Inventory </TD>
    <TD bgColor=#e6efff  width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="15%" align=right><B>(50,073</B></TD>
    <TD bgColor=#e6efff  width="2%" align=left><B>)</B> </TD>
    <TD bgColor=#e6efff  width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="15%" align=right>(26,945</TD>
    <TD bgColor=#e6efff  width="2%" align=left>) </TD></TR>
  <TR vAlign=top>
    <TD align=left >Trade and other payables </TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="15%" align=right><B>11,728</B> </TD>
    <TD  width="2%" align=left>&nbsp;</TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="15%" align=right>21,447 </TD>
    <TD  width="2%" align=left>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff align=left
    >Taxes payable </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff
    width="1%" align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff width="15%"
    align=right><B>16,861</B> </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff
    width="2%" align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff
    width="1%" align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff width="15%"
    align=right>- </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff
    width="2%" align=left>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=left
      >&nbsp; </TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid"  width="1%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" width="15%"
      align=right><B>(1,653</B></TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid"  width="2%"
    align=left><B>)</B> </TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid"  width="1%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" width="15%"
      align=right>(25,944</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid"  width="2%"
    align=left>) </TD></TR></TABLE></DIV>
<P style="MARGIN-LEFT: 5%" align=justify>During the year ended December 31, 2011
and 2010 the Company conducted the following non-cash investing and financing
transactions: </P>
<DIV align=center>
<TABLE
style="BORDER-COLOR: black; BORDER-COLLAPSE: collapse; FONT-SIZE: 10pt; "
border=0 cellSpacing=0 cellPadding=0 width="90%">

  <TR vAlign=top>
    <TD align=left >&nbsp; </TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="15%" align=right><B>2011</B> </TD>
    <TD  width="2%" align=left>&nbsp;</TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="15%" align=right><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"  width="1%"
    align=right>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="15%" align=right>$</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="2%"
    align=right>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="1%"
    align=right>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="15%" align=right>$</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="2%"
    align=right>&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD bgColor=#e6efff align=left >Shares received for sale of
      mineral property </TD>
    <TD bgColor=#e6efff  width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="15%" align=right><B>15,133</B> </TD>
    <TD bgColor=#e6efff  width="2%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff  width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="15%" align=right>187,202 </TD>
    <TD bgColor=#e6efff  width="2%" align=left>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left >Fair value of marketable securities
      transferred to acquire non-controlling interest </TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="15%" align=right><B>(10,522</B></TD>
    <TD  width="2%" align=left><B>)</B> </TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="15%" align=right>- </TD>
    <TD  width="2%" align=left>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD bgColor=#e6efff align=left >Transfer of share-based
      payment reserve upon exercise of stock options </TD>
    <TD bgColor=#e6efff  width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="15%" align=right><B>(8,990</B></TD>
    <TD bgColor=#e6efff  width="2%" align=left><B>)</B> </TD>
    <TD bgColor=#e6efff  width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="15%" align=right>(6,956</TD>
    <TD bgColor=#e6efff  width="2%" align=left>) </TD></TR>
  <TR vAlign=top>
    <TD align=left >Promissory note received for sale of
      Snowfield and Brucejack properties </TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="15%" align=right><B>-</B> </TD>
    <TD  width="2%" align=left>&nbsp;</TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="15%" align=right>39,069 </TD>
    <TD  width="2%" align=left>&nbsp;</TD></TR></TABLE></DIV>
<P style="MARGIN-LEFT: 5%" align=justify>During the year ended December 31, 2011
and 2010 the Company made the following cash payments for interest and taxes:
</P>
<DIV align=center>
<TABLE
style="BORDER-COLOR: black; BORDER-COLLAPSE: collapse; FONT-SIZE: 10pt; "
border=0 cellSpacing=0 cellPadding=0 width="90%">

  <TR vAlign=top>
    <TD align=left >&nbsp; </TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="15%" align=right><B>2011</B> </TD>
    <TD  width="2%" align=left>&nbsp;</TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="15%" align=right><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"  width="1%"
    align=right>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="15%" align=right>$</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="2%"
    align=right>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="1%"
    align=right>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="15%" align=right>$</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="2%"
    align=right>&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD bgColor=#e6efff align=left >Interest paid </TD>
    <TD bgColor=#e6efff  width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="15%" align=right><B>6,210</B> </TD>
    <TD bgColor=#e6efff  width="2%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff  width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="15%" align=right>6,210 </TD>
    <TD bgColor=#e6efff  width="2%" align=left>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left >Taxes paid </TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="15%" align=right><B>16,430</B> </TD>
    <TD  width="2%" align=left>&nbsp;</TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="15%" align=right>- </TD>
    <TD  width="2%"
align=left>&nbsp;</TD></TR></TABLE></DIV><BR>
<TABLE
style="BORDER-COLOR: black; BORDER-COLLAPSE: collapse; FONT-SIZE: 10pt; "
border=0 cellSpacing=0 cellPadding=0 width="100%">
  <TR vAlign=top>
    <TD style="BORDER-TOP: #000000 1px solid" align=right>62 | <FONT
      color=#7e7e7e>P a g e</FONT> </TD>
  </TR>
</TABLE>
<HR style="PAGE-BREAK-AFTER: always" align=center color=black SIZE=5
width="100%" noShade>
<A name=page_63></A><BR>
<TABLE
style="BORDER-COLOR: black; BORDER-COLLAPSE: collapse; FONT-SIZE: 10pt; "
border=0 cellSpacing=0 cellPadding=0 width="100%">
  <TR vAlign=top>
    <TD align=left><FONT size=4><B>Silver Standard Resources Inc.</B> </FONT></TD>
  </TR>
  <TR vAlign=top>
    <TD align=left><FONT size=3>Notes to the Consolidated Financial Statements
      </FONT></TD>
  </TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left><FONT
      size=3>December 31, 2011 and 2010 and January 1, 2010 </FONT></TD>
  </TR>
  <TR vAlign=top>
    <TD align=left>(tabular amounts expressed in thousands of United States dollars
      unless otherwise stated) </TD>
  </TR>
</TABLE>
<BR>
<TABLE
style="BORDER-COLOR: black; BORDER-COLLAPSE: collapse; FONT-SIZE: 10pt; "
border=0 cellSpacing=0 cellPadding=0 width="100%" BCLLIST>

  <TR>
    <TD vAlign=top width="5%"><B>26.</B> </TD>
    <TD>
      <P align=justify><B>TRANSITION TO INTERNATIONAL FINANCIAL REPORTING
      STANDARDS</B></P></TD></TR>
  <TR>
    <TD width="5%">&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
  <TR>
    <TD width="5%"></TD>
    <TD>
      <P align=justify>The accounting policies set out in these consolidated
      financial statements have been applied for the years ended December 31,
      2011 and December 31, 2010, and in the preparation of an opening IFRS
      statement of financial position at January 1, 2010.</P></TD></TR>
  <TR>
    <TD width="5%">&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
  <TR>
    <TD width="5%"></TD>
    <TD>
      <P align=justify>In preparing its opening IFRS statement of financial
      position, the Company has adjusted amounts reported previously in
      accordance with its previous basis of accounting (Canadian GAAP). An
      explanation of how the transition from Canadian GAAP to IFRS has affected
      the Company&#146;s statement of financial position and statement of income is
      set out in the following tables and accompanying
notes.</P></TD></TR></TABLE>
<P style="MARGIN-LEFT: 5%" align=justify><B>a)</B><B>&nbsp;&nbsp;&nbsp;
</B><B>Reconciliation of equity as at: </B></P>
<TABLE
style="BORDER-COLOR: black; BORDER-COLLAPSE: collapse; FONT-SIZE: 10pt; "
border=0 cellSpacing=0 cellPadding=0 width="100%">

  <TR vAlign=top>
    <TD width="5%"  >&nbsp;</TD>
    <TD align=left>&nbsp; </TD>
    <TD  width="15%" align=left>&nbsp;</TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="12%" align=right><B>December 31,</B> </TD>
    <TD  width="2%" align=left>&nbsp;</TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="12%" align=right><B>January 1,</B> </TD>
    <TD  width="2%" align=left>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD width="5%" >&nbsp;</TD>
    <TD align=left>&nbsp; </TD>
    <TD  width="15%" 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>2010</B> </TD>
    <TD  width="2%" 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 style="BORDER-BOTTOM: #000000 1px solid"  width="15%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="1%"
    align=right>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="12%" align=right>$</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="2%"
    align=right>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="1%"
    align=right>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="12%" align=right>$</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="2%"
    align=right>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD width="5%" >&nbsp;</TD>
    <TD bgColor=#e6efff align=left>Total equity reported under Canadian GAAP
    </TD>
    <TD bgColor=#e6efff  width="15%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff  width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="12%" align=right>1,031,772 </TD>
    <TD bgColor=#e6efff  width="2%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff  width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="12%" align=right>537,186 </TD>
    <TD bgColor=#e6efff  width="2%" align=left>&nbsp;</TD></TR>
  <TR>
    <TD width="5%" >&nbsp;</TD>
    <TD>&nbsp; </TD>
    <TD  width="15%">&nbsp;</TD>
    <TD  width="1%">&nbsp;</TD>
    <TD width="12%">&nbsp; </TD>
    <TD  width="2%">&nbsp;</TD>
    <TD  width="1%">&nbsp;</TD>
    <TD width="12%">&nbsp; </TD>
    <TD  width="2%">&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD width="5%" >&nbsp;</TD>
    <TD bgColor=#e6efff align=left>Increase (decrease) net of tax in respect
      of: </TD>
    <TD bgColor=#e6efff  width="15%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff  width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="12%" align=left>&nbsp; </TD>
    <TD bgColor=#e6efff  width="2%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff  width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="12%" align=left>&nbsp; </TD>
    <TD bgColor=#e6efff  width="2%" align=left>&nbsp;</TD></TR>
  <TR>
    <TD width="5%" >&nbsp;</TD>
    <TD>&nbsp; </TD>
    <TD  width="15%">&nbsp;</TD>
    <TD  width="1%">&nbsp;</TD>
    <TD width="12%">&nbsp; </TD>
    <TD  width="2%">&nbsp;</TD>
    <TD  width="1%">&nbsp;</TD>
    <TD width="12%">&nbsp; </TD>
    <TD  width="2%">&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD width="5%" >&nbsp;</TD>
    <TD bgColor=#e6efff align=left>Valuation of Pirquitas mine </TD>
    <TD bgColor=#e6efff  width="15%" align=left>(i) </TD>
    <TD bgColor=#e6efff  width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="12%" align=right>(79,842</TD>
    <TD bgColor=#e6efff  width="2%" align=left>) </TD>
    <TD bgColor=#e6efff  width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="12%" align=right>(84,018</TD>
    <TD bgColor=#e6efff  width="2%" align=left>) </TD></TR>
  <TR vAlign=top>
    <TD width="5%" >&nbsp;</TD>
    <TD align=left>Close down and restoration provision </TD>
    <TD  width="15%" align=left>(ii) </TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="12%" align=right>(76</TD>
    <TD  width="2%" align=left>) </TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="12%" align=right>- </TD>
    <TD  width="2%" align=left>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD width="5%" >&nbsp;</TD>
    <TD bgColor=#e6efff align=left>Share-based compensation </TD>
    <TD bgColor=#e6efff  width="15%" align=left>(iii) </TD>
    <TD bgColor=#e6efff  width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="12%" align=right>(52</TD>
    <TD bgColor=#e6efff  width="2%" align=left>) </TD>
    <TD bgColor=#e6efff  width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="12%" align=right>- </TD>
    <TD bgColor=#e6efff  width="2%" align=left>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD width="5%" >&nbsp;</TD>
    <TD align=left>Functional currency </TD>
    <TD  width="15%" align=left>(iv) </TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="12%" align=right>4,654 </TD>
    <TD  width="2%" align=left>&nbsp;</TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="12%" align=right>5,030 </TD>
    <TD  width="2%" align=left>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD width="5%" >&nbsp;</TD>
    <TD bgColor=#e6efff align=left>Convertible notes </TD>
    <TD bgColor=#e6efff  width="15%" align=left>(v) </TD>
    <TD bgColor=#e6efff  width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="12%" align=right>(18,859</TD>
    <TD bgColor=#e6efff  width="2%" align=left>) </TD>
    <TD bgColor=#e6efff  width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="12%" align=right>(17,086</TD>
    <TD bgColor=#e6efff  width="2%" align=left>) </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"  width="15%"
    align=left>(vii) </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="1%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="12%"
    align=right>(5,737</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="2%"
    align=left>) </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="1%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="12%"
    align=right>(1,949</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="2%"
    align=left>) </TD></TR>
  <TR>
    <TD width="5%" >&nbsp;</TD>
    <TD bgColor=#e6efff>&nbsp; </TD>
    <TD bgColor=#e6efff  width="15%">&nbsp;</TD>
    <TD bgColor=#e6efff  width="1%">&nbsp;</TD>
    <TD bgColor=#e6efff width="12%">&nbsp; </TD>
    <TD bgColor=#e6efff  width="2%">&nbsp;</TD>
    <TD bgColor=#e6efff  width="1%">&nbsp;</TD>
    <TD bgColor=#e6efff width="12%">&nbsp; </TD>
    <TD bgColor=#e6efff  width="2%">&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD width="5%" >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=left>Total equity
      reported under IFRS </TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid"  width="15%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid"  width="1%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" width="12%"
      align=right>931,860 </TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid"  width="2%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid"  width="1%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" width="12%"
      align=right>439,163 </TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid"  width="2%"
    align=left>&nbsp;</TD></TR></TABLE>
<P style="MARGIN-LEFT: 5%" align=justify><B>b)&nbsp;&nbsp;
</B><B>&nbsp;</B><B>Reconciliation of total comprehensive income for the year
ended December 31, 2010: </B></P>
<TABLE
style="BORDER-COLOR: black; BORDER-COLLAPSE: collapse; FONT-SIZE: 10pt; "
border=0 cellSpacing=0 cellPadding=0 width="100%">

  <TR vAlign=top>
    <TD width="5%"  >&nbsp;</TD>
    <TD width="72%" align=left>&nbsp; </TD>
    <TD  width="8%" 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 width="5%" >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>&nbsp; </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="8%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="1%"
    align=right>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="12%" align=right>$</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="2%"
    align=right>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD width="5%" >&nbsp;</TD>
    <TD bgColor=#e6efff align=left>Total comprehensive income as reported
      under Canadian GAAP </TD>
    <TD bgColor=#e6efff  width="8%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff  width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="12%" align=right>359,501 </TD>
    <TD bgColor=#e6efff  width="2%" align=left>&nbsp;</TD></TR>
  <TR>
    <TD width="5%" >&nbsp;</TD>
    <TD>&nbsp; </TD>
    <TD  width="8%">&nbsp;</TD>
    <TD  width="1%">&nbsp;</TD>
    <TD width="12%">&nbsp; </TD>
    <TD  width="2%">&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD width="5%" >&nbsp;</TD>
    <TD bgColor=#e6efff align=left>Increase (decrease) net of tax in respect
      of: </TD>
    <TD bgColor=#e6efff  width="8%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff  width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="12%" align=left>&nbsp; </TD>
    <TD bgColor=#e6efff  width="2%" align=left>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD width="5%" >&nbsp;</TD>
    <TD align=left>Valuation of Pirquitas mine </TD>
    <TD  width="8%" align=left>(i) </TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="12%" align=right>4,176 </TD>
    <TD  width="2%" align=left>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD width="5%" >&nbsp;</TD>
    <TD bgColor=#e6efff align=left>Close down and restoration provision </TD>
    <TD bgColor=#e6efff  width="8%" align=left>(ii) </TD>
    <TD bgColor=#e6efff  width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="12%" align=right>(76</TD>
    <TD bgColor=#e6efff  width="2%" align=left>) </TD></TR>
  <TR vAlign=top>
    <TD width="5%" >&nbsp;</TD>
    <TD align=left>Share-based compensation </TD>
    <TD  width="8%" align=left>(iii) </TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="12%" align=right>991 </TD>
    <TD  width="2%" align=left>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD width="5%" >&nbsp;</TD>
    <TD bgColor=#e6efff align=left>Functional currency </TD>
    <TD bgColor=#e6efff  width="8%" align=left>(iv) </TD>
    <TD bgColor=#e6efff  width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="12%" align=right>(373</TD>
    <TD bgColor=#e6efff  width="2%" align=left>) </TD></TR>
  <TR vAlign=top>
    <TD width="5%" >&nbsp;</TD>
    <TD align=left>Convertible notes </TD>
    <TD  width="8%" align=left>(v) </TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="12%" align=right>(1,773</TD>
    <TD  width="2%" align=left>) </TD></TR>
  <TR vAlign=top>
    <TD width="5%" >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff
      align=left>Deferred tax liabilities </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff
    width="8%" align=left>(vii) </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff
    width="1%" align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff width="12%"
    align=right>(8,897</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff
    width="2%" align=left>) </TD></TR>
  <TR>
    <TD width="5%" >&nbsp;</TD>
    <TD>&nbsp; </TD>
    <TD  width="8%">&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" bgColor=#e6efff
      align=left>Total comprehensive income as reported under IFRS </TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" bgColor=#e6efff
    width="8%" align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" bgColor=#e6efff
    width="1%" align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" bgColor=#e6efff width="12%"
    align=right>353,549 </TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" bgColor=#e6efff
    width="2%" align=left>&nbsp;</TD></TR></TABLE><BR>
<TABLE
style="BORDER-COLOR: black; BORDER-COLLAPSE: collapse; FONT-SIZE: 10pt; "
border=0 cellSpacing=0 cellPadding=0 width="100%">
  <TR vAlign=top>
    <TD style="BORDER-TOP: #000000 1px solid" align=right>63 | <FONT
      color=#7e7e7e>P a g e</FONT> </TD>
  </TR>
</TABLE>
<HR style="PAGE-BREAK-AFTER: always" align=center color=black SIZE=5
width="100%" noShade>
<A name=page_64></A><BR>
<TABLE
style="BORDER-COLOR: black; BORDER-COLLAPSE: collapse; FONT-SIZE: 10pt; "
border=0 cellSpacing=0 cellPadding=0 width="100%">
  <TR vAlign=top>
    <TD align=left><FONT size=4><B>Silver Standard Resources Inc.</B> </FONT></TD>
  </TR>
  <TR vAlign=top>
    <TD align=left><FONT size=3>Notes to the Consolidated Financial Statements
      </FONT></TD>
  </TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left><FONT
      size=3>December 31, 2011 and 2010 and January 1, 2010 </FONT></TD>
  </TR>
  <TR vAlign=top>
    <TD align=left>(tabular amounts expressed in thousands of United States dollars
      unless otherwise stated) </TD>
  </TR>
</TABLE>
<BR>
<TABLE
style="BORDER-COLOR: black; BORDER-COLLAPSE: collapse; FONT-SIZE: 10pt; "
border=0 cellSpacing=0 cellPadding=0 width="100%" BCLLIST>

  <TR>
    <TD vAlign=top width="5%"><B>26.</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; BORDER-COLLAPSE: collapse; FONT-SIZE: 10pt; "
border=0 cellSpacing=0 cellPadding=0 width="100%" BCLLIST>

  <TR>
    <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></TABLE>
<P style="MARGIN-LEFT: 5%" align=justify><B>(i) Valuation of the Pirquitas mine
</B></P>
<P style="MARGIN-LEFT: 5%" align=justify>The Company elected under IFRS 1 to
deem the fair value of the Pirquitas mine as cost at January 1, 2010 (note
2(a)). The fair value of the mine was determined to be $317,275,000 following a
discounted cash flow analysis using a discount rate of 10%. The resulting
adjustment between the carrying value under Canadian GAAP and the deemed cost of
$84,018,000 was charged to the opening accumulated deficit.</P>
<P style="MARGIN-LEFT: 5%" 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 the close down and restoration
provision (note 26 (c)(ii)), capitalized interest (note 26(c)(vi)) and deferred
tax liabilities (note 26(c)(vii)). The impacts of these adjustments on the
carrying value of the Pirquitas mine at January 1, 2010 are detailed below: </P>
<DIV>
  <TABLE
style="BORDER-COLOR: black; BORDER-COLLAPSE: collapse; FONT-SIZE: 10pt; "
border=0 cellSpacing=0 cellPadding=0 width="100%">
    <TR vAlign=top>
      <TD width="5%"  >&nbsp;</TD>
      <TD align=left >&nbsp; </TD>
      <TD  width="1%" align=left>&nbsp;</TD>
      <TD width="11%" align=right><B>Canadian GAAP</B> </TD>
      <TD  width="2%" align=left>&nbsp;</TD>
      <TD style="BORDER-BOTTOM: #000000 1px solid"  width="1%"
    align=left>&nbsp;</TD>
      <TD colspan="10"
      align=center style="BORDER-BOTTOM: #000000 1px solid"><B>Transition to IFRS adjustment</B> </TD>
      <TD style="BORDER-BOTTOM: #000000 1px solid"  width="2%"
    align=left>&nbsp;</TD>
      <TD  width="1%" align=left>&nbsp;</TD>
      <TD width="11%" align=right><B>IFRS</B> </TD>
      <TD  width="2%" 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 width="11%" align=left>&nbsp; </TD>
      <TD  width="2%" align=left>&nbsp;</TD>
      <TD  width="1%" align=left>&nbsp;</TD>
      <TD width="9%" align=right>Fair value as </TD>
      <TD  width="2%" align=left>&nbsp;</TD>
      <TD  width="1%" align=left>&nbsp;</TD>
      <TD width="9%" align=right>Close down </TD>
      <TD  width="2%" align=left>&nbsp;</TD>
      <TD  width="1%" align=left>&nbsp;</TD>
      <TD width="9%" align=right>Capitalised </TD>
      <TD  width="2%" align=left>&nbsp;</TD>
      <TD  width="1%" align=left>&nbsp;</TD>
      <TD width="9%" align=left>&nbsp; </TD>
      <TD  width="2%" align=left>&nbsp;</TD>
      <TD  width="1%" align=left>&nbsp;</TD>
      <TD width="11%" align=left>&nbsp; </TD>
      <TD  width="2%" 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 width="11%" align=left>&nbsp; </TD>
      <TD  width="2%" align=left>&nbsp;</TD>
      <TD  width="1%" align=left>&nbsp;</TD>
      <TD width="9%" align=right>deemed cost of </TD>
      <TD  width="2%" align=left>&nbsp;</TD>
      <TD  width="1%" align=left>&nbsp;</TD>
      <TD width="9%" align=right>and restoration </TD>
      <TD  width="2%" align=left>&nbsp;</TD>
      <TD  width="1%" align=left>&nbsp;</TD>
      <TD width="9%" align=right>borrowing </TD>
      <TD  width="2%" align=left>&nbsp;</TD>
      <TD  width="1%" align=left>&nbsp;</TD>
      <TD width="9%" align=right>Deferred </TD>
      <TD  width="2%" align=left>&nbsp;</TD>
      <TD  width="1%" align=left>&nbsp;</TD>
      <TD width="11%" align=left>&nbsp; </TD>
      <TD  width="2%" 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 width="11%" align=right><B>January 1, 2010</B> </TD>
      <TD  width="2%" align=left>&nbsp;</TD>
      <TD  width="1%" align=left>&nbsp;</TD>
      <TD width="9%" align=right>Pirquitas </TD>
      <TD  width="2%" align=left>&nbsp;</TD>
      <TD  width="1%" align=left>&nbsp;</TD>
      <TD width="9%" align=right>provision </TD>
      <TD  width="2%" align=left>&nbsp;</TD>
      <TD  width="1%" align=left>&nbsp;</TD>
      <TD width="9%" align=right>costs </TD>
      <TD  width="2%" align=left>&nbsp;</TD>
      <TD  width="1%" align=left>&nbsp;</TD>
      <TD width="9%" align=right>taxes </TD>
      <TD  width="2%" align=left>&nbsp;</TD>
      <TD  width="1%" align=left>&nbsp;</TD>
      <TD width="11%" align=right><B>January 1, 2010</B> </TD>
      <TD  width="2%" 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 width="11%" align=left>&nbsp; </TD>
      <TD  width="2%" align=left>&nbsp;</TD>
      <TD  width="1%" align=left>&nbsp;</TD>
      <TD width="9%" align=left>&nbsp; </TD>
      <TD  width="2%" align=left>&nbsp;</TD>
      <TD  width="1%" align=left>&nbsp;</TD>
      <TD width="9%" align=right>(ii) </TD>
      <TD  width="2%" align=left>&nbsp;</TD>
      <TD  width="1%" align=left>&nbsp;</TD>
      <TD width="9%" align=right>(vi) </TD>
      <TD  width="2%" align=left>&nbsp;</TD>
      <TD  width="1%" align=left>&nbsp;</TD>
      <TD width="9%" align=right>(vii) </TD>
      <TD  width="2%" align=left>&nbsp;</TD>
      <TD  width="1%" align=left>&nbsp;</TD>
      <TD width="11%" align=left>&nbsp; </TD>
      <TD  width="2%" 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 style="BORDER-BOTTOM: #000000 1px solid"  width="1%"
    align=right>&nbsp;</TD>
      <TD style="BORDER-BOTTOM: #000000 1px solid" width="11%"
    align=right>&nbsp;</TD>
      <TD style="BORDER-BOTTOM: #000000 1px solid"  width="2%"
    align=right>&nbsp;</TD>
      <TD style="BORDER-BOTTOM: #000000 1px solid"  width="1%"
    align=right>&nbsp;</TD>
      <TD style="BORDER-BOTTOM: #000000 1px solid" width="9%" align=right>&nbsp;</TD>
      <TD style="BORDER-BOTTOM: #000000 1px solid"  width="2%"
    align=right>&nbsp;</TD>
      <TD style="BORDER-BOTTOM: #000000 1px solid"  width="1%"
    align=right>&nbsp;</TD>
      <TD style="BORDER-BOTTOM: #000000 1px solid" width="9%" align=right>&nbsp;</TD>
      <TD style="BORDER-BOTTOM: #000000 1px solid"  width="2%"
    align=right>&nbsp;</TD>
      <TD style="BORDER-BOTTOM: #000000 1px solid"  width="1%"
    align=left>&nbsp;</TD>
      <TD style="BORDER-BOTTOM: #000000 1px solid" width="9%" align=left>&nbsp;</TD>
      <TD style="BORDER-BOTTOM: #000000 1px solid"  width="2%"
    align=left>&nbsp;</TD>
      <TD style="BORDER-BOTTOM: #000000 1px solid"  width="1%"
    align=right>&nbsp;</TD>
      <TD style="BORDER-BOTTOM: #000000 1px solid" width="9%" align=right>&nbsp;</TD>
      <TD style="BORDER-BOTTOM: #000000 1px solid"  width="2%"
    align=right>&nbsp;</TD>
      <TD style="BORDER-BOTTOM: #000000 1px solid"  width="1%"
    align=right>&nbsp;</TD>
      <TD style="BORDER-BOTTOM: #000000 1px solid" width="11%" align=right>&nbsp;</TD>
      <TD style="BORDER-BOTTOM: #000000 1px solid"  width="2%"
    align=right>&nbsp;</TD>
    </TR>
    <TR vAlign=top>
      <TD width="5%" >&nbsp;</TD>
      <TD bgColor=#e6efff align=left >Producing properties </TD>
      <TD bgColor=#e6efff  width="1%" align=left>&nbsp;</TD>
      <TD bgColor=#e6efff width="11%" align=right>180,018 </TD>
      <TD bgColor=#e6efff  width="2%" align=left>&nbsp;</TD>
      <TD bgColor=#e6efff  width="1%" align=left>&nbsp;</TD>
      <TD bgColor=#e6efff width="9%" align=right>(84,018</TD>
      <TD bgColor=#e6efff  width="2%" align=left>) </TD>
      <TD bgColor=#e6efff  width="1%" align=left>&nbsp;</TD>
      <TD bgColor=#e6efff width="9%" align=right>313 </TD>
      <TD bgColor=#e6efff  width="2%" align=left>&nbsp;</TD>
      <TD bgColor=#e6efff  width="1%" align=left>&nbsp;</TD>
      <TD bgColor=#e6efff width="9%" align=right>797 </TD>
      <TD bgColor=#e6efff  width="2%" align=left>&nbsp;</TD>
      <TD bgColor=#e6efff  width="1%" align=left>&nbsp;</TD>
      <TD bgColor=#e6efff width="9%" align=right>(20,262</TD>
      <TD bgColor=#e6efff  width="2%" align=left>) </TD>
      <TD bgColor=#e6efff  width="1%" align=left>&nbsp;</TD>
      <TD bgColor=#e6efff width="11%" align=right>76,848 </TD>
      <TD bgColor=#e6efff  width="2%" align=left>&nbsp;</TD>
    </TR>
    <TR vAlign=top>
      <TD width="5%" >&nbsp;</TD>
      <TD align=left >Construction in progress </TD>
      <TD  width="1%" align=left>&nbsp;</TD>
      <TD width="11%" align=right>8,015 </TD>
      <TD  width="2%" align=left>&nbsp;</TD>
      <TD  width="1%" align=left>&nbsp;</TD>
      <TD width="9%" align=right>- </TD>
      <TD  width="2%" align=left>&nbsp;</TD>
      <TD  width="1%" align=left>&nbsp;</TD>
      <TD width="9%" align=right>- </TD>
      <TD  width="2%" align=left>&nbsp;</TD>
      <TD  width="1%" align=left>&nbsp;</TD>
      <TD width="9%" align=right>- </TD>
      <TD  width="2%" align=left>&nbsp;</TD>
      <TD  width="1%" align=left>&nbsp;</TD>
      <TD width="9%" align=right>- </TD>
      <TD  width="2%" align=left>&nbsp;</TD>
      <TD  width="1%" align=left>&nbsp;</TD>
      <TD width="11%" align=right>8,015 </TD>
      <TD  width="2%" align=left>&nbsp;</TD>
    </TR>
    <TR vAlign=top>
      <TD width="5%" >&nbsp;</TD>
      <TD bgColor=#e6efff align=left >Mining equipment </TD>
      <TD bgColor=#e6efff  width="1%" align=left>&nbsp;</TD>
      <TD bgColor=#e6efff width="11%" align=right>12,478 </TD>
      <TD bgColor=#e6efff  width="2%" align=left>&nbsp;</TD>
      <TD bgColor=#e6efff  width="1%" align=left>&nbsp;</TD>
      <TD bgColor=#e6efff width="9%" align=right>- </TD>
      <TD bgColor=#e6efff  width="2%" align=left>&nbsp;</TD>
      <TD bgColor=#e6efff  width="1%" align=left>&nbsp;</TD>
      <TD bgColor=#e6efff width="9%" align=right>- </TD>
      <TD bgColor=#e6efff  width="2%" align=left>&nbsp;</TD>
      <TD bgColor=#e6efff  width="1%" align=left>&nbsp;</TD>
      <TD bgColor=#e6efff width="9%" align=right>- </TD>
      <TD bgColor=#e6efff  width="2%" align=left>&nbsp;</TD>
      <TD bgColor=#e6efff  width="1%" align=left>&nbsp;</TD>
      <TD bgColor=#e6efff width="9%" align=right>- </TD>
      <TD bgColor=#e6efff  width="2%" align=left>&nbsp;</TD>
      <TD bgColor=#e6efff  width="1%" align=left>&nbsp;</TD>
      <TD bgColor=#e6efff width="11%" align=right>12,478 </TD>
      <TD bgColor=#e6efff  width="2%" align=left>&nbsp;</TD>
    </TR>
    <TR vAlign=top>
      <TD width="5%" >&nbsp;</TD>
      <TD align=left >Plant and equipment </TD>
      <TD  width="1%" align=left>&nbsp;</TD>
      <TD width="11%" align=right>219,305 </TD>
      <TD  width="2%" align=left>&nbsp;</TD>
      <TD  width="1%" align=left>&nbsp;</TD>
      <TD width="9%" align=right>- </TD>
      <TD  width="2%" align=left>&nbsp;</TD>
      <TD  width="1%" align=left>&nbsp;</TD>
      <TD width="9%" align=right>407 </TD>
      <TD  width="2%" align=left>&nbsp;</TD>
      <TD  width="1%" align=left>&nbsp;</TD>
      <TD width="9%" align=right>- </TD>
      <TD  width="2%" align=left>&nbsp;</TD>
      <TD  width="1%" align=left>&nbsp;</TD>
      <TD width="9%" align=right>- </TD>
      <TD  width="2%" align=left>&nbsp;</TD>
      <TD  width="1%" align=left>&nbsp;</TD>
      <TD width="11%" align=right>219,712 </TD>
      <TD  width="2%" align=left>&nbsp;</TD>
    </TR>
    <TR vAlign=top>
      <TD width="5%" >&nbsp;</TD>
      <TD style="BORDER-BOTTOM: #000000 2px solid" bgColor=#e6efff align=left
    >Other </TD>
      <TD style="BORDER-BOTTOM: #000000 2px solid" bgColor=#e6efff
    width="1%" align=left>&nbsp;</TD>
      <TD style="BORDER-BOTTOM: #000000 2px solid" bgColor=#e6efff width="11%"
    align=right>222 </TD>
      <TD style="BORDER-BOTTOM: #000000 2px solid" bgColor=#e6efff
    width="2%" align=left>&nbsp;</TD>
      <TD style="BORDER-BOTTOM: #000000 2px solid" bgColor=#e6efff
    width="1%" align=left>&nbsp;</TD>
      <TD style="BORDER-BOTTOM: #000000 2px solid" bgColor=#e6efff width="9%"
    align=right>- </TD>
      <TD style="BORDER-BOTTOM: #000000 2px solid" bgColor=#e6efff
    width="2%" align=left>&nbsp;</TD>
      <TD style="BORDER-BOTTOM: #000000 2px solid" bgColor=#e6efff
    width="1%" align=left>&nbsp;</TD>
      <TD style="BORDER-BOTTOM: #000000 2px solid" bgColor=#e6efff width="9%"
    align=right>- </TD>
      <TD style="BORDER-BOTTOM: #000000 2px solid" bgColor=#e6efff
    width="2%" align=left>&nbsp;</TD>
      <TD style="BORDER-BOTTOM: #000000 2px solid" bgColor=#e6efff
    width="1%" align=left>&nbsp;</TD>
      <TD style="BORDER-BOTTOM: #000000 2px solid" bgColor=#e6efff width="9%"
    align=right>- </TD>
      <TD style="BORDER-BOTTOM: #000000 2px solid" bgColor=#e6efff
    width="2%" align=left>&nbsp;</TD>
      <TD style="BORDER-BOTTOM: #000000 2px solid" bgColor=#e6efff
    width="1%" align=left>&nbsp;</TD>
      <TD style="BORDER-BOTTOM: #000000 2px solid" bgColor=#e6efff width="9%"
    align=right>- </TD>
      <TD style="BORDER-BOTTOM: #000000 2px solid" bgColor=#e6efff
    width="2%" align=left>&nbsp;</TD>
      <TD style="BORDER-BOTTOM: #000000 2px solid" bgColor=#e6efff
    width="1%" align=left>&nbsp;</TD>
      <TD style="BORDER-BOTTOM: #000000 2px solid" bgColor=#e6efff width="11%"
    align=right>222 </TD>
      <TD style="BORDER-BOTTOM: #000000 2px solid" bgColor=#e6efff
    width="2%" align=left>&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"  width="1%"
    align=left>&nbsp;</TD>
      <TD style="BORDER-BOTTOM: #000000 2px solid" width="11%"
      align=right>420,038 </TD>
      <TD style="BORDER-BOTTOM: #000000 2px solid"  width="2%"
    align=left>&nbsp;</TD>
      <TD style="BORDER-BOTTOM: #000000 2px solid"  width="1%"
    align=left>&nbsp;</TD>
      <TD style="BORDER-BOTTOM: #000000 2px solid" width="9%"
    align=right>(84,018</TD>
      <TD style="BORDER-BOTTOM: #000000 2px solid"  width="2%"
    align=left>) </TD>
      <TD style="BORDER-BOTTOM: #000000 2px solid"  width="1%"
    align=left>&nbsp;</TD>
      <TD style="BORDER-BOTTOM: #000000 2px solid" width="9%" align=right>720
      </TD>
      <TD style="BORDER-BOTTOM: #000000 2px solid"  width="2%"
    align=left>&nbsp;</TD>
      <TD style="BORDER-BOTTOM: #000000 2px solid"  width="1%"
    align=left>&nbsp;</TD>
      <TD style="BORDER-BOTTOM: #000000 2px solid" width="9%" align=right>797
      </TD>
      <TD style="BORDER-BOTTOM: #000000 2px solid"  width="2%"
    align=left>&nbsp;</TD>
      <TD style="BORDER-BOTTOM: #000000 2px solid"  width="1%"
    align=left>&nbsp;</TD>
      <TD style="BORDER-BOTTOM: #000000 2px solid" width="9%"
    align=right>(20,262</TD>
      <TD style="BORDER-BOTTOM: #000000 2px solid"  width="2%"
    align=left>) </TD>
      <TD style="BORDER-BOTTOM: #000000 2px solid"  width="1%"
    align=left>&nbsp;</TD>
      <TD style="BORDER-BOTTOM: #000000 2px solid" width="11%"
      align=right>317,275 </TD>
      <TD style="BORDER-BOTTOM: #000000 2px solid"  width="2%"
    align=left>&nbsp;</TD>
    </TR>
  </TABLE>
</DIV>
<P style="MARGIN-LEFT: 5%" 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 reduced cost
of sales by $4,176,000 for the year ended December 31, 2010. </P>
<TABLE
style="BORDER-COLOR: black; BORDER-COLLAPSE: collapse; FONT-SIZE: 10pt; "
border=0 cellSpacing=0 cellPadding=0 width="100%">
  <TR vAlign=top>
    <TD style="BORDER-TOP: #000000 1px solid" align=right>64 | <FONT
      color=#7e7e7e>P a g e</FONT> </TD>
  </TR>
</TABLE>
<HR style="PAGE-BREAK-AFTER: always" align=center color=black SIZE=5
width="100%" noShade>
<A name=page_65></A><BR>
<TABLE
style="BORDER-COLOR: black; BORDER-COLLAPSE: collapse; FONT-SIZE: 10pt; "
border=0 cellSpacing=0 cellPadding=0 width="100%">
  <TR vAlign=top>
    <TD align=left><FONT size=4><B>Silver Standard Resources Inc.</B> </FONT></TD>
  </TR>
  <TR vAlign=top>
    <TD align=left><FONT size=3>Notes to the Consolidated Financial Statements
      </FONT></TD>
  </TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left><FONT
      size=3>December 31, 2011 and 2010 and January 1, 2010 </FONT></TD>
  </TR>
  <TR vAlign=top>
    <TD align=left>(tabular amounts expressed in thousands of United States dollars
      unless otherwise stated) </TD>
  </TR>
</TABLE>
<BR>
<TABLE
style="BORDER-COLOR: black; BORDER-COLLAPSE: collapse; FONT-SIZE: 10pt; "
border=0 cellSpacing=0 cellPadding=0 width="100%" BCLLIST>

  <TR>
    <TD vAlign=top width="5%"><B>26.</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: 5%" align=justify><B>(ii)&nbsp; </B><B>&nbsp;</B><B>Close
down and restoration provision </B></P>
<P style="MARGIN-LEFT: 5%" 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: 5%" 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: 5%" align=justify>As described in note 2(a), the Company
elected to use the IFRS 1 transition exemption from full retrospective
adjustment that would have been required under IFRIC 1. The Company re-measured
the liability at the date of transition to IFRS and recorded an adjustment of
$810,000 to the carrying value of the liability and to the carrying value of the
corresponding property, plant and equipment asset, of which $720,000 related to
Pirquitas. </P>
<P style="MARGIN-LEFT: 5%" align=justify>For the year ended December 31, 2010
  the Company recorded an adjustment of $713,000 to the carrying value of the
  liability and related mineral property asset, with a $76,000 impact on earnings.</P>
<P style="MARGIN-LEFT: 5%" align=justify><B>(iii)&nbsp; Share-based payments</B>
</P>
<P style="MARGIN-LEFT: 5%" align=justify>The Company&#146;s accounting policy for
share-based payments 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 stock 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 stock options were forfeited. The
Company elected to apply the IFRS 1 transition exemption (note 2(a)), whereby
adjustments were only required to be made to stock 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: 5%" align=justify>The Company estimated the amount of stock
  options that would not vest by using historical data, the resulting impact at
  January 1, 2010 was insignificant but for the year ended December 31, 2010 the
  impact was a reduction to stock based compensation of $1,046,000, of which $991,000
  was credited to the statement of income and the balance of $52,000 to property,
  plant and equipment. </P>
<P style="MARGIN-LEFT: 5%" align=justify><B>(iv)&nbsp;
</B><B>&nbsp;</B><B>Functional currency and cumulative translation adjustment
account </B></P>
<P style="MARGIN-LEFT: 5%" 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>
<TABLE
style="BORDER-COLOR: black; BORDER-COLLAPSE: collapse; FONT-SIZE: 10pt; "
border=0 cellSpacing=0 cellPadding=0 width="100%">
  <TR vAlign=top>
    <TD style="BORDER-TOP: #000000 1px solid" align=right>65 | <FONT
      color=#7e7e7e>P a g e</FONT> </TD>
  </TR>
</TABLE>
<HR style="PAGE-BREAK-AFTER: always" align=center color=black SIZE=5
width="100%" noShade>
<A name=page_66></A><BR>
<TABLE
style="BORDER-COLOR: black; BORDER-COLLAPSE: collapse; FONT-SIZE: 10pt; "
border=0 cellSpacing=0 cellPadding=0 width="100%">
  <TR vAlign=top>
    <TD align=left><FONT size=4><B>Silver Standard Resources Inc.</B> </FONT></TD>
  </TR>
  <TR vAlign=top>
    <TD align=left><FONT size=3>Notes to the Consolidated Financial Statements
      </FONT></TD>
  </TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left><FONT
      size=3>December 31, 2011 and 2010 and January 1, 2010 </FONT></TD>
  </TR>
  <TR vAlign=top>
    <TD align=left>(tabular amounts expressed in thousands of United States dollars
      unless otherwise stated) </TD>
  </TR>
</TABLE>
<BR>
<TABLE
style="BORDER-COLOR: black; BORDER-COLLAPSE: collapse; FONT-SIZE: 10pt; "
border=0 cellSpacing=0 cellPadding=0 width="100%" BCLLIST>

  <TR>
    <TD vAlign=top width="5%"><B>26.</B> </TD>
    <TD>
      <P align=justify><B>TRANSITION TO INTERNATIONAL FINANCIAL REPORTING
      STANDARDS (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 Company determined that three 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></TD></TR>
  <TR>
    <TD width="5%">&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
  <TR>
    <TD width="5%"></TD>
    <TD>
      <P align=justify>The net impact was an increase in mineral properties of
      $5,030,000, offset by a charge to currency translation adjustment (&#147;CTA&#148;).
      The Company also elected to take the IFRS 1 exemption to deem cumulative
      translation adjustments to be zero at the date of transition to IFRS.
      Hence all existing CTA balances and the impact of the above adjustments as
      of January 1, 2010 were recorded against the opening accumulated
      deficit.</P></TD></TR>
  <TR>
    <TD width="5%">&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
  <TR>
    <TD width="5%"></TD>
    <TD>
      <P align=justify>For the year ended December 31, 2010 the impact was a
      reduction of the mineral properties of $373,000, with an equal and
      opposite effect on total comprehensive income.</P></TD></TR></TABLE>
<P style="MARGIN-LEFT: 5%" align=justify><B>(v) &nbsp;
</B><B>&nbsp;</B><B>Convertible notes </B></P>
<P style="MARGIN-LEFT: 5%" align=justify>As discussed in note 14, the Company
issued $138,000,000 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
financial liability&#146;, those transaction costs allocated to the debt were
expensed, and 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 is recognized as accretion expense in the
statement of income over the period to maturity using the effective interest
rate method.</P>
<P style="MARGIN-LEFT: 5%" 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 financial 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 financial 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: 5%" 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 recognized 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>
<TABLE
style="BORDER-COLOR: black; BORDER-COLLAPSE: collapse; FONT-SIZE: 10pt; "
border=0 cellSpacing=0 cellPadding=0 width="100%">
  <TR vAlign=top>
    <TD style="BORDER-TOP: #000000 1px solid" align=right>66 | <FONT
      color=#7e7e7e>P a g e</FONT> </TD>
  </TR>
</TABLE>
<HR style="PAGE-BREAK-AFTER: always" align=center color=black SIZE=5
width="100%" noShade>
<A name=page_67></A><BR>
<TABLE
style="BORDER-COLOR: black; BORDER-COLLAPSE: collapse; FONT-SIZE: 10pt; "
border=0 cellSpacing=0 cellPadding=0 width="100%">
  <TR vAlign=top>
    <TD align=left><FONT size=4><B>Silver Standard Resources Inc.</B> </FONT></TD>
  </TR>
  <TR vAlign=top>
    <TD align=left><FONT size=3>Notes to the Consolidated Financial Statements
      </FONT></TD>
  </TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left><FONT
      size=3>December 31, 2011 and 2010 and January 1, 2010 </FONT></TD>
  </TR>
  <TR vAlign=top>
    <TD align=left>(tabular amounts expressed in thousands of United States dollars
      unless otherwise stated) </TD>
  </TR>
</TABLE>
<BR>
<TABLE
style="BORDER-COLOR: black; BORDER-COLLAPSE: collapse; FONT-SIZE: 10pt; "
border=0 cellSpacing=0 cellPadding=0 width="100%" BCLLIST>

  <TR>
    <TD vAlign=top width="5%"><B>26.</B> </TD>
    <TD>
      <P align=justify><B>TRANSITION TO INTERNATIONAL FINANCIAL REPORTING
      STANDARDS (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 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 the opening accumulated deficit at
      the date of transition. Also a proportion of the accretion was capitalized
      to the Pirquitas mineral property asset and as such the amount capitalized
      under IFRS differs from that under Canadian GAAP (note
  26(c)(vi)).</P></TD></TR>
  <TR>
    <TD width="5%">&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
  <TR>
    <TD width="5%"></TD>
    <TD>
      <P align=justify>Under IFRS the derivative liability is recognized as
      FVTPL so all transaction costs were expensed and the instrument is
      re-measured at each reporting period using a binomial tree approach. The
      following assumptions were used to obtain the
valuation:</P></TD></TR></TABLE><BR>
<DIV align=center>
<TABLE
style="BORDER-COLOR: black; BORDER-COLLAPSE: collapse; FONT-SIZE: 10pt; "
border=0 cellSpacing=0 cellPadding=0 width="70%">

  <TR vAlign=top>
    <TD align=left>&nbsp; </TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="12%" align=right nowrap><B>December 31,</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>January 1,</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>February 27,</B> </TD>
    <TD  width="2%" align=left>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=left>&nbsp; </TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid"  width="1%"
    align=left>&nbsp;</TD>
    <TD width="12%"
      align=right nowrap style="BORDER-BOTTOM: #000000 2px solid"><B>2010</B> </TD>
    <TD  width="2%"
    align=left nowrap style="BORDER-BOTTOM: #000000 2px solid">&nbsp;</TD>
    <TD  width="1%"
    align=left nowrap style="BORDER-BOTTOM: #000000 2px solid">&nbsp;</TD>
    <TD width="12%"
      align=right nowrap style="BORDER-BOTTOM: #000000 2px solid"><B>2010</B> </TD>
    <TD  width="2%"
    align=left nowrap style="BORDER-BOTTOM: #000000 2px solid">&nbsp;</TD>
    <TD  width="1%"
    align=left nowrap style="BORDER-BOTTOM: #000000 2px solid">&nbsp;</TD>
    <TD width="12%"
      align=right nowrap style="BORDER-BOTTOM: #000000 2px solid"><B>2008</B> </TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid"  width="2%"
    align=left>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD bgColor=#e6efff align=left>Expected dividend yield (%) </TD>
    <TD bgColor=#e6efff  width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="12%" align=right>0.0 </TD>
    <TD bgColor=#e6efff  width="2%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff  width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="12%" align=right>0.0 </TD>
    <TD bgColor=#e6efff  width="2%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff  width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="12%" align=right>0.0 </TD>
    <TD bgColor=#e6efff  width="2%" align=left>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left>Average risk-free interest rate (%) </TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="12%" align=right>4.13 </TD>
    <TD  width="2%" align=left>&nbsp;</TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="12%" align=right>4.58 </TD>
    <TD  width="2%" align=left>&nbsp;</TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="12%" align=right>4.62 </TD>
    <TD  width="2%" align=left>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD bgColor=#e6efff align=left>Expected life (years) </TD>
    <TD bgColor=#e6efff  width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="12%" align=right>17.25 </TD>
    <TD bgColor=#e6efff  width="2%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff  width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="12%" align=right>18.25 </TD>
    <TD bgColor=#e6efff  width="2%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff  width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="12%" align=right>20.0 </TD>
    <TD bgColor=#e6efff  width="2%" align=left>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left>Expected volatility (%) </TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="12%" align=right>57.5 </TD>
    <TD  width="2%" align=left>&nbsp;</TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="12%" align=right>60.0 </TD>
    <TD  width="2%" align=left>&nbsp;</TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="12%" align=right>60.0 </TD>
    <TD  width="2%" align=left>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff
      align=left>Implied yield on straight debt (%) </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff
    width="1%" align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff width="12%"
    align=right>11.39 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff
    width="2%" align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff
    width="1%" align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff width="12%"
    align=right>12.6 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff
    width="2%" align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff
    width="1%" align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff width="12%"
    align=right>11.85 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff
    width="2%" align=left>&nbsp;</TD></TR></TABLE></DIV>
<P style="MARGIN-LEFT: 5%" align=justify>The following table illustrates the
differences in the carrying values of the debt and conversion option: </P>
<DIV>
<TABLE
style="BORDER-COLOR: black; BORDER-COLLAPSE: collapse; FONT-SIZE: 10pt; "
border=0 cellSpacing=0 cellPadding=0 width="100%">

  <TR vAlign=top>
    <TD width="5%"  >&nbsp;</TD>
    <TD align=left >&nbsp; </TD>
    <TD align=right nowrap><div align="right"><B>Canadian GAAP</B> </div></TD>
    <TD align=right nowrap>&nbsp;</TD>
    <TD align=right nowrap><div align="right"><B>IFRS</B> </div></TD>
    <TD align=right nowrap>&nbsp;</TD>
    <TD align=right nowrap><div align="right"><B>Canadian GAAP</B> </div></TD>
    <TD align=right nowrap>&nbsp;</TD>
    <TD align=right nowrap><div align="right"><B>IFRS</B> </div></TD>
    <TD align=right nowrap>&nbsp;</TD>
    <TD align=right nowrap><div align="right"><B>Canadian GAAP</B> </div></TD>
    <TD align=right nowrap>&nbsp;</TD>
    <TD align=right nowrap><div align="right"><B>IFRS</B> </div></TD>
  </TR>
  <TR vAlign=top>
    <TD width="5%" >&nbsp;</TD>
    <TD align=left >&nbsp; </TD>
    <TD align=right nowrap><div align="right">Carrying value </div></TD>
    <TD align=right nowrap>&nbsp;</TD>
    <TD align=right nowrap><div align="right">Carrying value </div></TD>
    <TD align=right nowrap>&nbsp;</TD>
    <TD align=right nowrap><div align="right">Carrying value </div></TD>
    <TD align=right nowrap>&nbsp;</TD>
    <TD align=right nowrap><div align="right">Carrying value </div></TD>
    <TD align=right nowrap>&nbsp;</TD>
    <TD align=right nowrap><div align="right">Carrying value </div></TD>
    <TD align=right nowrap>&nbsp;</TD>
    <TD align=right nowrap><div align="right">Carrying value </div></TD>
  </TR>
  <TR vAlign=top>
    <TD width="5%" >&nbsp;</TD>
    <TD align=left >&nbsp; </TD>
    <TD align=right nowrap><div align="right">Inception </div></TD>
    <TD align=right nowrap>&nbsp;</TD>
    <TD align=right nowrap><div align="right">Inception </div></TD>
    <TD align=right nowrap>&nbsp;</TD>
    <TD align=right nowrap><div align="right">January 1, 2010 </div></TD>
    <TD align=right nowrap>&nbsp;</TD>
    <TD align=right nowrap><div align="right">January 1, 2010 </div></TD>
    <TD align=right nowrap>&nbsp;</TD>
    <TD align=right nowrap><div align="right">December 31, 2010 </div></TD>
    <TD align=right nowrap>&nbsp;</TD>
    <TD align=right nowrap><div align="right">December 31, 2010 </div></TD>
  </TR>
  <TR vAlign=top>
    <TD width="5%" >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=left
      >&nbsp; </TD>
    <TD align=right nowrap style="BORDER-BOTTOM: #000000 2px solid"><div align="right">$</div></TD>
    <TD width="2%" align=right nowrap style="BORDER-BOTTOM: #000000 2px solid">&nbsp;</TD>
    <TD align=right nowrap style="BORDER-BOTTOM: #000000 2px solid"><div align="right">$</div></TD>
    <TD width="2%" align=right nowrap style="BORDER-BOTTOM: #000000 2px solid">&nbsp;</TD>
    <TD align=right nowrap style="BORDER-BOTTOM: #000000 2px solid"><div align="right">$</div></TD>
    <TD width="2%" align=right nowrap style="BORDER-BOTTOM: #000000 2px solid">&nbsp;</TD>
    <TD align=right nowrap style="BORDER-BOTTOM: #000000 2px solid"><div align="right">$</div></TD>
    <TD width="2%" align=right nowrap style="BORDER-BOTTOM: #000000 2px solid">&nbsp;</TD>
    <TD align=right nowrap style="BORDER-BOTTOM: #000000 2px solid"><div align="right">$</div></TD>
    <TD width="2%"
  align=right nowrap style="BORDER-BOTTOM: #000000 2px solid">&nbsp;</TD>
    <TD
  align=right nowrap style="BORDER-BOTTOM: #000000 2px solid"><div align="right">$</div></TD>
  </TR>
  <TR vAlign=top>
    <TD width="5%" >&nbsp;</TD>
    <TD bgColor=#e6efff align=left ><B>Statement of financial
      position</B> </TD>
    <TD width="10%" align=center vAlign=bottom bgColor=#e6efff> </TD>
    <TD bgColor=#e6efff vAlign=bottom align=center>&nbsp;</TD>
    <TD width="10%" align=center vAlign=bottom bgColor=#e6efff> </TD>
    <TD bgColor=#e6efff vAlign=bottom align=center>&nbsp;</TD>
    <TD width="10%" align=center vAlign=bottom bgColor=#e6efff> </TD>
    <TD bgColor=#e6efff vAlign=bottom align=center>&nbsp;</TD>
    <TD width="10%" align=center vAlign=bottom bgColor=#e6efff> </TD>
    <TD bgColor=#e6efff vAlign=bottom align=center>&nbsp;</TD>
    <TD width="10%" align=center vAlign=bottom bgColor=#e6efff> </TD>
    <TD bgColor=#e6efff vAlign=bottom align=center>&nbsp;</TD>
    <TD width="10%" align=center vAlign=bottom bgColor=#e6efff> </TD></TR>
  <TR>
    <TD width="5%" height="28" >&nbsp;</TD>
    <TD  align=left >&nbsp;</TD>
    <TD vAlign=bottom align=center></TD>
    <TD vAlign=bottom align=center>&nbsp;</TD>
    <TD vAlign=bottom align=center></TD>
    <TD vAlign=bottom align=center>&nbsp;</TD>
    <TD vAlign=bottom align=center></TD>
    <TD vAlign=bottom align=center>&nbsp;</TD>
    <TD vAlign=bottom align=center></TD>
    <TD vAlign=bottom align=center>&nbsp;</TD>
    <TD vAlign=bottom align=center></TD>
    <TD vAlign=bottom align=center>&nbsp;</TD>
    <TD vAlign=bottom align=center></TD></TR>
  <TR vAlign=top>
    <TD width="5%" >&nbsp;</TD>
    <TD bgColor=#e6efff align=left >Convertible notes - current    </TD>
    <TD bgColor=#e6efff vAlign=bottom align=center><div align="right">- </div></TD>
    <TD bgColor=#e6efff vAlign=bottom align=center>&nbsp;</TD>
    <TD bgColor=#e6efff vAlign=bottom align=center><div align="right">- </div></TD>
    <TD bgColor=#e6efff vAlign=bottom align=center>&nbsp;</TD>
    <TD bgColor=#e6efff vAlign=bottom align=center><div align="right">(2,076) </div></TD>
    <TD bgColor=#e6efff vAlign=bottom align=center>&nbsp;</TD>
    <TD bgColor=#e6efff vAlign=bottom align=center><div align="right">(2,076) </div></TD>
    <TD bgColor=#e6efff vAlign=bottom align=center>&nbsp;</TD>
    <TD bgColor=#e6efff vAlign=bottom align=center><div align="right">(2,076) </div></TD>
    <TD bgColor=#e6efff vAlign=bottom align=center>&nbsp;</TD>
    <TD bgColor=#e6efff vAlign=bottom align=center><div align="right">(2,076) </div></TD></TR>
  <TR>
    <TD width="5%" >&nbsp;</TD>
    <TD  align=left >&nbsp;</TD>
    <TD vAlign=bottom align=center></TD>
    <TD vAlign=bottom align=center>&nbsp;</TD>
    <TD vAlign=bottom align=center></TD>
    <TD vAlign=bottom align=center>&nbsp;</TD>
    <TD vAlign=bottom align=center></TD>
    <TD vAlign=bottom align=center>&nbsp;</TD>
    <TD vAlign=bottom align=center></TD>
    <TD vAlign=bottom align=center>&nbsp;</TD>
    <TD vAlign=bottom align=center></TD>
    <TD vAlign=bottom align=center>&nbsp;</TD>
    <TD vAlign=bottom align=center></TD></TR>
  <TR vAlign=top>
    <TD width="5%" >&nbsp;</TD>
    <TD bgColor=#e6efff align=left >Convertible notes - long term    </TD>
    <TD bgColor=#e6efff vAlign=bottom align=center><div align="right">(99,144) </div></TD>
    <TD bgColor=#e6efff vAlign=bottom align=center>&nbsp;</TD>
    <TD bgColor=#e6efff vAlign=bottom align=center><div align="right">(95,371) </div></TD>
    <TD bgColor=#e6efff vAlign=bottom align=center>&nbsp;</TD>
    <TD bgColor=#e6efff vAlign=bottom align=center><div align="right">(110,739) </div></TD>
    <TD bgColor=#e6efff vAlign=bottom align=center>&nbsp;</TD>
    <TD bgColor=#e6efff vAlign=bottom align=center><div align="right">(107,895) </div></TD>
    <TD bgColor=#e6efff vAlign=bottom align=center>&nbsp;</TD>
    <TD bgColor=#e6efff vAlign=bottom align=center><div align="right">(118,203) </div></TD>
    <TD bgColor=#e6efff vAlign=bottom align=center>&nbsp;</TD>
    <TD bgColor=#e6efff vAlign=bottom align=center><div align="right">(116,125)</div></TD></TR>
  <TR>
    <TD width="5%" >&nbsp;</TD>
    <TD  align=left >&nbsp;</TD>
    <TD vAlign=bottom align=center></TD>
    <TD vAlign=bottom align=center>&nbsp;</TD>
    <TD vAlign=bottom align=center></TD>
    <TD vAlign=bottom align=center>&nbsp;</TD>
    <TD vAlign=bottom align=center></TD>
    <TD vAlign=bottom align=center>&nbsp;</TD>
    <TD vAlign=bottom align=center></TD>
    <TD vAlign=bottom align=center>&nbsp;</TD>
    <TD vAlign=bottom align=center></TD>
    <TD vAlign=bottom align=center>&nbsp;</TD>
    <TD vAlign=bottom align=center></TD></TR>
  <TR vAlign=top>
    <TD width="5%" >&nbsp;</TD>
    <TD bgColor=#e6efff align=left >Derivative liability </TD>
    <TD bgColor=#e6efff vAlign=bottom align=center><div align="right">- </div></TD>
    <TD bgColor=#e6efff vAlign=bottom align=center>&nbsp;</TD>
    <TD bgColor=#e6efff vAlign=bottom align=center><div align="right">(38,856) </div></TD>
    <TD bgColor=#e6efff vAlign=bottom align=center>&nbsp;</TD>
    <TD bgColor=#e6efff vAlign=bottom align=center><div align="right">- </div></TD>
    <TD bgColor=#e6efff vAlign=bottom align=center>&nbsp;</TD>
    <TD bgColor=#e6efff vAlign=bottom align=center><div align="right">(20,728) </div></TD>
    <TD bgColor=#e6efff vAlign=bottom align=center>&nbsp;</TD>
    <TD bgColor=#e6efff vAlign=bottom align=center><div align="right">- </div></TD>
    <TD bgColor=#e6efff vAlign=bottom align=center>&nbsp;</TD>
    <TD bgColor=#e6efff vAlign=bottom align=center><div align="right">(21,735) </div></TD></TR>
  <TR>
    <TD width="5%" >&nbsp;</TD>
    <TD  align=left >&nbsp;</TD>
    <TD vAlign=bottom align=center></TD>
    <TD vAlign=bottom align=center>&nbsp;</TD>
    <TD vAlign=bottom align=center></TD>
    <TD vAlign=bottom align=center>&nbsp;</TD>
    <TD vAlign=bottom align=center></TD>
    <TD vAlign=bottom align=center>&nbsp;</TD>
    <TD vAlign=bottom align=center></TD>
    <TD vAlign=bottom align=center>&nbsp;</TD>
    <TD vAlign=bottom align=center></TD>
    <TD vAlign=bottom align=center>&nbsp;</TD>
    <TD vAlign=bottom align=center></TD></TR>
  <TR vAlign=top>
    <TD width="5%" >&nbsp;</TD>
    <TD bgColor=#e6efff align=left >Equity component of
      convertible notes </TD>
    <TD bgColor=#e6efff vAlign=bottom align=center><div align="right">(37,383) </div></TD>
    <TD bgColor=#e6efff vAlign=bottom align=center>&nbsp;</TD>
    <TD bgColor=#e6efff vAlign=bottom align=center><div align="right">- </div></TD>
    <TD bgColor=#e6efff vAlign=bottom align=center>&nbsp;</TD>
    <TD bgColor=#e6efff vAlign=bottom align=center><div align="right">(37,383) </div></TD>
    <TD bgColor=#e6efff vAlign=bottom align=center>&nbsp;</TD>
    <TD bgColor=#e6efff vAlign=bottom align=center><div align="right">- </div></TD>
    <TD bgColor=#e6efff vAlign=bottom align=center>&nbsp;</TD>
    <TD bgColor=#e6efff vAlign=bottom align=center><div align="right">(37,383) </div></TD>
    <TD bgColor=#e6efff vAlign=bottom align=center>&nbsp;</TD>
    <TD bgColor=#e6efff vAlign=bottom align=center><div align="right">- </div></TD></TR>
  <TR>
    <TD width="5%" >&nbsp;</TD>
    <TD  align=left >&nbsp;</TD>
    <TD vAlign=bottom align=center></TD>
    <TD vAlign=bottom align=center>&nbsp;</TD>
    <TD vAlign=bottom align=center></TD>
    <TD vAlign=bottom align=center>&nbsp;</TD>
    <TD vAlign=bottom align=center></TD>
    <TD vAlign=bottom align=center>&nbsp;</TD>
    <TD vAlign=bottom align=center></TD>
    <TD vAlign=bottom align=center>&nbsp;</TD>
    <TD vAlign=bottom align=center></TD>
    <TD vAlign=bottom align=center>&nbsp;</TD>
    <TD vAlign=bottom align=center></TD></TR>
  <TR vAlign=top>
    <TD width="5%" >&nbsp;</TD>
    <TD bgColor=#e6efff align=left >Property, plant and equipment
      <SUP>(i)</SUP> </TD>
    <TD bgColor=#e6efff vAlign=bottom align=right>- </TD>
    <TD bgColor=#e6efff vAlign=bottom align=right>&nbsp;</TD>
    <TD bgColor=#e6efff vAlign=bottom align=right>- </TD>
    <TD bgColor=#e6efff vAlign=bottom align=right>&nbsp;</TD>
    <TD bgColor=#e6efff vAlign=bottom align=right>- </TD>
    <TD bgColor=#e6efff vAlign=bottom align=right>&nbsp;</TD>
    <TD bgColor=#e6efff vAlign=bottom align=right>797 </TD>
    <TD bgColor=#e6efff vAlign=bottom align=right>&nbsp;</TD>
    <TD bgColor=#e6efff vAlign=bottom align=right>- </TD>
    <TD bgColor=#e6efff vAlign=bottom align=right>&nbsp;</TD>
    <TD bgColor=#e6efff vAlign=bottom align=right>- </TD></TR>
  <TR>
    <TD width="5%" >&nbsp;</TD>
    <TD  align=left >&nbsp;</TD>
    <TD vAlign=bottom align=center></TD>
    <TD vAlign=bottom align=center>&nbsp;</TD>
    <TD vAlign=bottom align=center></TD>
    <TD vAlign=bottom align=center>&nbsp;</TD>
    <TD vAlign=bottom align=center></TD>
    <TD vAlign=bottom align=center>&nbsp;</TD>
    <TD vAlign=bottom align=center></TD>
    <TD vAlign=bottom align=center>&nbsp;</TD>
    <TD vAlign=bottom align=center></TD>
    <TD vAlign=bottom align=center>&nbsp;</TD>
    <TD vAlign=bottom align=center></TD></TR>
  <TR vAlign=top>
    <TD width="5%" >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff align=left
    >Accumulated deficit </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff vAlign=bottom align=center><div align="right">3,773 </div></TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff vAlign=bottom align=center>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff vAlign=bottom align=center><div align="right">1,473 </div></TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff vAlign=bottom align=center>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff vAlign=bottom align=center><div align="right">7,592 </div></TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff vAlign=bottom align=center>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff vAlign=bottom align=center><div align="right">(12,705) </div></TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff vAlign=bottom align=center>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff vAlign=bottom align=center><div align="right">- </div></TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff vAlign=bottom align=center>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff vAlign=bottom align=center><div align="right">- </div></TD></TR>
  <TR>
    <TD width="5%" >&nbsp;</TD>
    <TD  align=left >&nbsp;</TD>
    <TD vAlign=bottom align=center></TD>
    <TD vAlign=bottom align=center>&nbsp;</TD>
    <TD vAlign=bottom align=center></TD>
    <TD vAlign=bottom align=center>&nbsp;</TD>
    <TD vAlign=bottom align=center></TD>
    <TD vAlign=bottom align=center>&nbsp;</TD>
    <TD vAlign=bottom align=center></TD>
    <TD vAlign=bottom align=center>&nbsp;</TD>
    <TD vAlign=bottom align=center></TD>
    <TD vAlign=bottom align=center>&nbsp;</TD>
    <TD vAlign=bottom align=center></TD></TR>
  <TR vAlign=top>
    <TD width="5%" >&nbsp;</TD>
    <TD bgColor=#e6efff align=left ><B>Statement of income</B></TD>
    <TD bgColor=#e6efff vAlign=bottom align=center> </TD>
    <TD bgColor=#e6efff vAlign=bottom align=center>&nbsp;</TD>
    <TD bgColor=#e6efff vAlign=bottom align=center> </TD>
    <TD bgColor=#e6efff vAlign=bottom align=center>&nbsp;</TD>
    <TD bgColor=#e6efff vAlign=bottom align=center> </TD>
    <TD bgColor=#e6efff vAlign=bottom align=center>&nbsp;</TD>
    <TD bgColor=#e6efff vAlign=bottom align=center> </TD>
    <TD bgColor=#e6efff vAlign=bottom align=center>&nbsp;</TD>
    <TD bgColor=#e6efff vAlign=bottom align=center> </TD>
    <TD bgColor=#e6efff vAlign=bottom align=center>&nbsp;</TD>
    <TD bgColor=#e6efff vAlign=bottom align=center> </TD></TR>
  <TR>
    <TD width="5%" >&nbsp;</TD>
    <TD  align=left >&nbsp;</TD>
    <TD vAlign=bottom align=center></TD>
    <TD vAlign=bottom align=center>&nbsp;</TD>
    <TD vAlign=bottom align=center></TD>
    <TD vAlign=bottom align=center>&nbsp;</TD>
    <TD vAlign=bottom align=center></TD>
    <TD vAlign=bottom align=center>&nbsp;</TD>
    <TD vAlign=bottom align=center></TD>
    <TD vAlign=bottom align=center>&nbsp;</TD>
    <TD vAlign=bottom align=center></TD>
    <TD vAlign=bottom align=center>&nbsp;</TD>
    <TD vAlign=bottom align=center></TD></TR>
  <TR vAlign=top>
    <TD width="5%" >&nbsp;</TD>
    <TD bgColor=#e6efff align=left >Interest expense </TD>
    <TD bgColor=#e6efff vAlign=bottom align=center><div align="right">- </div></TD>
    <TD bgColor=#e6efff vAlign=bottom align=center>&nbsp;</TD>
    <TD bgColor=#e6efff vAlign=bottom align=center><div align="right">- </div></TD>
    <TD bgColor=#e6efff vAlign=bottom align=center>&nbsp;</TD>
    <TD bgColor=#e6efff vAlign=bottom align=center><div align="right">- </div></TD>
    <TD bgColor=#e6efff vAlign=bottom align=center>&nbsp;</TD>
    <TD bgColor=#e6efff vAlign=bottom align=center><div align="right">- </div></TD>
    <TD bgColor=#e6efff vAlign=bottom align=center>&nbsp;</TD>
    <TD bgColor=#e6efff vAlign=bottom align=center><div align="right">6,210 </div></TD>
    <TD bgColor=#e6efff vAlign=bottom align=center>&nbsp;</TD>
    <TD bgColor=#e6efff vAlign=bottom align=center><div align="right">6,210 </div></TD></TR>
  <TR>
    <TD width="5%" >&nbsp;</TD>
    <TD  align=left >&nbsp;</TD>
    <TD vAlign=bottom align=center></TD>
    <TD vAlign=bottom align=center>&nbsp;</TD>
    <TD vAlign=bottom align=center></TD>
    <TD vAlign=bottom align=center>&nbsp;</TD>
    <TD vAlign=bottom align=center></TD>
    <TD vAlign=bottom align=center>&nbsp;</TD>
    <TD vAlign=bottom align=center></TD>
    <TD vAlign=bottom align=center>&nbsp;</TD>
    <TD vAlign=bottom align=center></TD>
    <TD vAlign=bottom align=center>&nbsp;</TD>
    <TD vAlign=bottom align=center></TD></TR>
  <TR vAlign=top>
    <TD width="5%" >&nbsp;</TD>
    <TD bgColor=#e6efff align=left >Interest accretion </TD>
    <TD bgColor=#e6efff vAlign=bottom align=center><div align="right">- </div></TD>
    <TD bgColor=#e6efff vAlign=bottom align=center>&nbsp;</TD>
    <TD bgColor=#e6efff vAlign=bottom align=center><div align="right">- </div></TD>
    <TD bgColor=#e6efff vAlign=bottom align=center>&nbsp;</TD>
    <TD bgColor=#e6efff vAlign=bottom align=center><div align="right">- </div></TD>
    <TD bgColor=#e6efff vAlign=bottom align=center>&nbsp;</TD>
    <TD bgColor=#e6efff vAlign=bottom align=center><div align="right">- </div></TD>
    <TD bgColor=#e6efff vAlign=bottom align=center>&nbsp;</TD>
    <TD bgColor=#e6efff vAlign=bottom align=center><div align="right">7,531 </div></TD>
    <TD bgColor=#e6efff vAlign=bottom align=center>&nbsp;</TD>
    <TD bgColor=#e6efff vAlign=bottom align=center><div align="right">8,230 </div></TD></TR>
  <TR>
    <TD width="5%" >&nbsp;</TD>
    <TD  align=left >&nbsp;</TD>
    <TD vAlign=bottom align=center></TD>
    <TD vAlign=bottom align=center>&nbsp;</TD>
    <TD vAlign=bottom align=center></TD>
    <TD vAlign=bottom align=center>&nbsp;</TD>
    <TD vAlign=bottom align=center></TD>
    <TD vAlign=bottom align=center>&nbsp;</TD>
    <TD vAlign=bottom align=center></TD>
    <TD vAlign=bottom align=center>&nbsp;</TD>
    <TD vAlign=bottom align=center></TD>
    <TD vAlign=bottom align=center>&nbsp;</TD>
    <TD vAlign=bottom align=center></TD></TR>
  <TR vAlign=top>
    <TD width="5%" >&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" bgColor=#e6efff align=left
    >Unrealized (gain) or loss on derivative instruments </TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" bgColor=#e6efff vAlign=bottom align=right>- </TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" bgColor=#e6efff vAlign=bottom align=right>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" bgColor=#e6efff vAlign=bottom align=right>- </TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" bgColor=#e6efff vAlign=bottom align=right>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" bgColor=#e6efff vAlign=bottom align=right>- </TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" bgColor=#e6efff vAlign=bottom align=right>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" bgColor=#e6efff vAlign=bottom align=right>- </TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" bgColor=#e6efff vAlign=bottom align=right>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" bgColor=#e6efff vAlign=bottom align=right>- </TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" bgColor=#e6efff vAlign=bottom align=right>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" bgColor=#e6efff vAlign=bottom align=right>1,007 </TD></TR></TABLE>
</DIV>
<P style="MARGIN-LEFT: 5%" align=justify><SUP>(i)</SUP> Impact of capitalized
interest on property, plant and equipment (see note 26(c)(vi)) </P>
<TABLE
style="BORDER-COLOR: black; BORDER-COLLAPSE: collapse; FONT-SIZE: 10pt; "
border=0 cellSpacing=0 cellPadding=0 width="100%">
  <TR vAlign=top>
    <TD style="BORDER-TOP: #000000 1px solid" align=right>67 | <FONT
      color=#7e7e7e>P a g e</FONT> </TD>
  </TR>
</TABLE>
<HR style="PAGE-BREAK-AFTER: always" align=center color=black SIZE=5
width="100%" noShade>
<A name=page_68></A><BR>
<TABLE
style="BORDER-COLOR: black; BORDER-COLLAPSE: collapse; FONT-SIZE: 10pt; "
border=0 cellSpacing=0 cellPadding=0 width="100%">
  <TR vAlign=top>
    <TD align=left><FONT size=4><B>Silver Standard Resources Inc.</B> </FONT></TD>
  </TR>
  <TR vAlign=top>
    <TD align=left><FONT size=3>Notes to the Consolidated Financial Statements
      </FONT></TD>
  </TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left><FONT
      size=3>December 31, 2011 and 2010 and January 1, 2010 </FONT></TD>
  </TR>
  <TR vAlign=top>
    <TD align=left>(tabular amounts expressed in thousands of United States dollars
      unless otherwise stated) </TD>
  </TR>
</TABLE>
<BR>
<TABLE
style="BORDER-COLOR: black; BORDER-COLLAPSE: collapse; FONT-SIZE: 10pt; "
border=0 cellSpacing=0 cellPadding=0 width="100%" BCLLIST>

  <TR>
    <TD vAlign=top width="5%"><B>26.</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: 5%" align=justify><B>(vi)&nbsp;
</B><B>&nbsp;</B><B>Borrowing costs </B></P>
<P style="MARGIN-LEFT: 5%" align=justify>The Company&#146;s accounting policy for
capitalising borrowing costs during the construction of the Pirquitas mine was
unchanged between Canadian GAAP and IFRS. However, owing to the change in
accounting methodology for the Notes described in note 26(c)(v) above a greater
amount of accretion expense was available for capitalisation. The Company
retrospectively adjusted the accretion expense capitalized to mineral
properties.</P>
<P style="MARGIN-LEFT: 5%" align=justify>The impact was an increase in the
mineral property asset of $797,000 at the date of transition to IFRS.
Construction was completed prior to the transition to IFRS so there are no
further GAAP differences recorded. </P>
<P style="MARGIN-LEFT: 5%" align=justify><B>(vii)</B><B>&nbsp; </B><B>Deferred
income tax </B></P>
<P style="MARGIN-LEFT: 5%" 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 the opening accumulated deficit.</P>
<P style="MARGIN-LEFT: 5%" 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: 5%" 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.<B> </B></P>
<P style="MARGIN-LEFT: 5%" align=justify>The result of these differences was a
reduction of $35,596,000 in the deferred tax liabilities recognized on the date
of transition to IFRS, reflected in aggregate credits to mineral properties of
$36,797,000 (of which $20,262,000 related to Pirquitas), and aggregate charges
to opening accumulated deficit of $1,201,000. The impact on retained earnings in
the year ended December 31, 2010 was a charge of $3,354,000.</P>
<TABLE
style="BORDER-COLOR: black; BORDER-COLLAPSE: collapse; FONT-SIZE: 10pt; "
border=0 cellSpacing=0 cellPadding=0 width="100%">
  <TR vAlign=top>
    <TD style="BORDER-TOP: #000000 1px solid" align=right>68 | <FONT
      color=#7e7e7e>P a g e</FONT> </TD>
  </TR>
</TABLE>
<HR style="PAGE-BREAK-AFTER: always" align=center color=black SIZE=5
width="100%" noShade>
<A name="page_69"></A> <BR>
<TABLE
style="BORDER-COLOR: black; BORDER-COLLAPSE: collapse; FONT-SIZE: 10pt; "
border=0 cellSpacing=0 cellPadding=0 width="100%">
  <TR vAlign=top>
    <TD align=left><FONT size=4><B>Silver Standard Resources Inc.</B> </FONT></TD>
  </TR>
  <TR vAlign=top>
    <TD align=left><FONT size=3>Notes to the Consolidated Financial Statements
      </FONT></TD>
  </TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left><FONT
      size=3>December 31, 2011 and 2010 and January 1, 2010 </FONT></TD>
  </TR>
  <TR vAlign=top>
    <TD align=left>(tabular amounts expressed in thousands of United States dollars
      unless otherwise stated) </TD>
  </TR>
</TABLE>
<BR><TABLE 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>
<B>26.</B> 	</TD>
	<TD>
<P align="justify"><B>TRANSITION TO INTERNATIONAL FINANCIAL REPORTING STANDARDS (Cont&rsquo;d)</B></P>
	</TD>
</TR>
</TABLE>
<BR><TABLE BCLLIST style="font-size:10pt;border-color:black;border-collapse:collapse;" cellpadding="0" cellspacing="0" width="100%" border="0">
<TR>
<TD width=5%></TD>	<TD>
<P align="justify">A GAAP difference also exists in respect of the treatment of the tax effects of share issuance costs. While a deferred tax asset for these costs is recognized under both standards, IFRS requires the benefit to be credited to
equity regardless of the period it was recognized, while under Canadian GAAP the benefit is reflected in net income if recognized in a period subsequent to when the issuance costs were incurred. As a result, for the year ended December 31, 2010,
under Canadian GAAP an income tax recovery of &#36;5,109,000 relating to share issuance costs was credited to earnings, but under IFRS this recovery has been credited directly to share capital. The effect of this adjustment has been reflected in the
reconciliation of shareholders&rsquo; equity as at December 31, 2010.</P>
	</TD>
</TR>
<TR><TD>&nbsp;</TD><TD>&nbsp;</TD></TR><TR>
<TD width=5%></TD>	<TD>
<P align="justify">The Company revised its previously published transition adjustment for deferred tax liabilities in relation to the tax basis of certain Argentine assets relating to certain foreign exchange and other adjustments. The impact was an
increase in the deferred tax liability of &#36;748,000 as at January 1, 2010 and a further increase of &#36;5,543,000 as at December 31, 2010, with a corresponding increase to the tax expense for that year. These adjustments are not material to the
previously presented financial information.</P>
	</TD>
</TR>
<TR><TD>&nbsp;</TD><TD>&nbsp;</TD></TR><TR>
	<TD width=5% valign=top>
<B>d)</B> 	</TD>
	<TD>
<P align="justify"><B>Adjustments to Statement of Cash Flows</B></P>
	</TD>
</TR>
<TR><TD>&nbsp;</TD><TD>&nbsp;</TD></TR><TR>
<TD width=5%></TD>	<TD>
<P align="justify">The transition from Canadian GAAP to IFRS had no significant impact on cash flows generated or used by the Company.</P>
	</TD>
</TR>
</TABLE>
<BR>
<TABLE
style="BORDER-COLOR: black; BORDER-COLLAPSE: collapse; FONT-SIZE: 10pt; "
border=0 cellSpacing=0 cellPadding=0 width="100%">
  <TR vAlign=top>
    <TD style="BORDER-TOP: #000000 1px solid" align=right>69 | <FONT
      color=#7e7e7e>P a g e</FONT> </TD>
  </TR>
</TABLE>
<HR noshade align="center" width="100%" size=5 color="black">


</BODY>

</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>
   <META name="HandheldFriendly" content="true">
</HEAD>

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

<HR noshade align="center" width=100% size=3 color="black">
<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 YEAR ENDED DECEMBER 31, 2011 </B></P>
<TABLE
style="BORDER-COLOR: black; BORDER-COLLAPSE: collapse; FONT-SIZE: 10pt; "
border=0 cellSpacing=0 cellPadding=0 width="100%" BCLLIST>

  <TR>
    <TD bgColor=#eeeeee vAlign=top width="3%"><A
      href="#page_2">1.
      </A></TD>
    <TD bgColor=#eeeeee ><A
      href="#page_2">
      <P align=justify>2011 HIGHLIGHTS</P></A></TD></TR>
  <TR>
    <TD width="3%">&nbsp;</TD>
    <TD >&nbsp;</TD></TR>
  <TR>
    <TD bgColor=#eeeeee vAlign=top width="3%"><A
      href="#page_3">2.
      </A></TD>
    <TD bgColor=#eeeeee ><A
      href="#page_3">
      <P align=justify>OUTLOOK</P></A></TD></TR>
  <TR>
    <TD width="3%">&nbsp;</TD>
    <TD >&nbsp;</TD></TR>
  <TR>
    <TD bgColor=#eeeeee vAlign=top width="3%"><A
      href="#page_4">3.
      </A></TD>
    <TD bgColor=#eeeeee ><A
      href="#page_4">
      <P align=justify>BUSINESS OVERVIEW</P></A></TD></TR>
  <TR>
    <TD width="3%">&nbsp;</TD>
    <TD >&nbsp;</TD></TR>
  <TR>
    <TD bgColor=#eeeeee vAlign=top width="3%"><A
      href="#page_5">4.
      </A></TD>
    <TD bgColor=#eeeeee ><A
      href="#page_5">
      <P align=justify>RESULTS OF OPERATIONS</P></A></TD></TR>
  <TR>
    <TD width="3%">&nbsp;</TD>
    <TD >&nbsp;</TD></TR>
  <TR>
    <TD bgColor=#eeeeee vAlign=top width="3%"><A
      href="#page_8">5.
      </A></TD>
    <TD bgColor=#eeeeee ><A
      href="#page_8">
      <P align=justify>REVIEW OF PROJECTS</P></A></TD></TR>
  <TR>
    <TD width="3%">&nbsp;</TD>
    <TD >&nbsp;</TD></TR>
  <TR>
    <TD bgColor=#eeeeee vAlign=top width="3%"><A
      href="#page_11">6.
      </A></TD>
    <TD bgColor=#eeeeee ><A
      href="#page_11">
      <P align=justify>SUMMARIZED ANNUAL FINANCIAL RESULTS</P></A></TD></TR>
  <TR>
    <TD width="3%">&nbsp;</TD>
    <TD >&nbsp;</TD></TR>
  <TR>
    <TD bgColor=#eeeeee vAlign=top width="3%"><A
      href="#page_14">7.
      </A></TD>
    <TD bgColor=#eeeeee ><A
      href="#page_14">
      <P align=justify>QUARTERLY FINANCIAL REVIEW</P></A></TD></TR>
  <TR>
    <TD width="3%">&nbsp;</TD>
    <TD >&nbsp;</TD></TR>
  <TR>
    <TD bgColor=#eeeeee vAlign=top width="3%"><A
      href="#page_15">8.
      </A></TD>
    <TD bgColor=#eeeeee ><A
      href="#page_15">
      <P align=justify>LIQUIDITY</P></A></TD></TR>
  <TR>
    <TD width="3%">&nbsp;</TD>
    <TD >&nbsp;</TD></TR>
  <TR>
    <TD bgColor=#eeeeee vAlign=top width="3%"><A
      href="#page_16">9.
      </A></TD>
    <TD bgColor=#eeeeee ><A
      href="#page_16">
      <P align=justify>CAPITAL RESOURCES</P></A></TD></TR>
  <TR>
    <TD width="3%">&nbsp;</TD>
    <TD >&nbsp;</TD></TR>
  <TR>
    <TD bgColor=#eeeeee vAlign=top width="3%"><A
      href="#page_17">10.
      </A></TD>
    <TD bgColor=#eeeeee ><A
      href="#page_17">
      <P align=justify>FINANCIAL INSTRUMENTS AND RELATED RISKS</P></A></TD></TR>
  <TR>
    <TD width="3%">&nbsp;</TD>
    <TD >&nbsp;</TD></TR>
  <TR>
    <TD bgColor=#eeeeee vAlign=top width="3%"><A
      href="#page_21">11.
      </A></TD>
    <TD bgColor=#eeeeee ><A
      href="#page_21">
      <P align=justify>OTHER RISKS AND UNCERTAINTIES</P></A></TD></TR>
  <TR>
    <TD width="3%">&nbsp;</TD>
    <TD >&nbsp;</TD></TR>
  <TR>
    <TD bgColor=#eeeeee vAlign=top width="3%"><A
      href="#page_22">12.
      </A></TD>
    <TD bgColor=#eeeeee ><A
      href="#page_22">
      <P align=justify>RELATED PARTY TRANSACTIONS</P></A></TD></TR>
  <TR>
    <TD width="3%">&nbsp;</TD>
    <TD >&nbsp;</TD></TR>
  <TR>
    <TD bgColor=#eeeeee vAlign=top width="3%"><A
      href="#page_22">13.
      </A></TD>
    <TD bgColor=#eeeeee ><A
      href="#page_22">
      <P align=justify>SIGNIFICANT INVESTMENTS ACCOUNTED FOR BY THE EQUITY
      METHOD</P></A></TD></TR>
  <TR>
    <TD width="3%">&nbsp;</TD>
    <TD >&nbsp;</TD></TR>
  <TR>
    <TD bgColor=#eeeeee vAlign=top width="3%"><A
      href="#page_23">14.
      </A></TD>
    <TD bgColor=#eeeeee ><A
      href="#page_23">
      <P align=justify>NON-GAAP FINANCIAL MEASURES</P></A></TD></TR>
  <TR>
    <TD width="3%">&nbsp;</TD>
    <TD >&nbsp;</TD></TR>
  <TR>
    <TD bgColor=#eeeeee vAlign=top width="3%"><A
      href="#page_24">15.
      </A></TD>
    <TD bgColor=#eeeeee ><A
      href="#page_24">
      <P align=justify>CRITICAL ACCOUNTING POLICIES AND ESTIMATES</P></A></TD></TR>
  <TR>
    <TD width="3%">&nbsp;</TD>
    <TD >&nbsp;</TD></TR>
  <TR>
    <TD bgColor=#eeeeee vAlign=top width="3%"><A
      href="#page_29">16.
      </A></TD>
    <TD bgColor=#eeeeee ><A
      href="#page_29">
      <P align=justify>FUTURE ACCOUNTING CHANGES</P></A></TD></TR>
  <TR>
    <TD width="3%">&nbsp;</TD>
    <TD >&nbsp;</TD></TR>
  <TR>
    <TD bgColor=#eeeeee vAlign=top width="3%"><A
      href="#page_31">17.
      </A></TD>
    <TD bgColor=#eeeeee ><A
      href="#page_31">
      <P align=justify>INTERNAL CONTROLS OVER FINANCIAL REPORTING AND DISCLOSURE
      CONTROLS AND PROCEDURES</P></A></TD></TR>
  <TR>
    <TD width="3%">&nbsp;</TD>
    <TD >&nbsp;</TD></TR>
  <TR>
    <TD bgColor=#eeeeee vAlign=top width="3%"><A
      href="#page_32">18.
      </A></TD>
    <TD bgColor=#eeeeee ><A
      href="#page_32">
      <P align=justify>CAUTIONARY NOTE REGARDING FORWARD-LOOKING
      STATEMENTS</P></A></TD></TR></TABLE><BR>
<HR style="PAGE-BREAK-AFTER: always" align=center color=black SIZE=5
width="100%" noShade>
<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 YEAR ENDED DECEMBER 31, 2011 </B></P>
<P align=justify>This Management&#146;s Discussion and Analysis (&#147;MD&amp;A&#148;) is
intended to supplement the audited consolidated financial statements of Silver
Standard Resources Inc. (&#147;Silver Standard&#148; or &#147;the Company&#148;) for the year ended
December 31, 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 notes 2 and 26 to the audited consolidated
financial statements</P>
<P align=justify>The Company&#146;s 2010 comparative financial information in this
MD&amp;A have been restated and are presented in accordance with IFRS, but 2009
comparative financial information has not been restated. All figures are
expressed in U.S. dollars except where otherwise indicated. This MD&amp;A has
been prepared as of March 11, 2012, and should be read in conjunction with the
audited consolidated financial statements for the year ended December 31, 2011.
Unless otherwise stated all currency amounts are presented in U.S. dollars. </P>
<P align=justify>Additional information relating to the Company, including the
most recent Form 20-F and the Annual Information Form, are 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 in item 18
herein. The Company uses certain non-GAAP financial measures in this MD&amp;A.
For a description of each of the non-GAAP financial measures used in this
MD&amp;A please see the discussion under &#145;Non-GAAP Financial Measures&#146; in item
14 of this MD&amp;A. The Company changed its presentation of costs per ounce
during 2011 in line with the newly-endorsed production cost guidance provided by
The Silver Institute<I>.</I> </P>
<P align=justify><B>1.</B><B>&nbsp;&nbsp;&nbsp; </B><B>2011 HIGHLIGHTS </B></P>
<UL style="TEXT-ALIGN: justify">
  <LI>
  <P>Silver production of 7.1 million ounces in 2011 compared to 6.3 million
  ounces in 2010, an increase of 12%. </P>
  <LI>
  <P>Net income of $80.1 million or $1.00 per share. </P>
  <LI>
  <P>Operational improvements at the Pirquitas silver mine in Argentina to
  position the mine for consistent period-on-period production performance. </P>
  <LI>
  <P>Monetized approximately one-third of the Company&#146;s shareholding in Pretium
  Resources Inc. (&#147;Pretium&#148;) for $130 million, while retaining an interest with
  a market value at February 29, 2012 in excess of $400 million. </P>
  <LI>
  <P>Consolidated the Company&#146;s ownership interest in the high-grade gold and
  silver San Luis project in Peru. </P></LI></UL>
<P align=right>2</P>
<HR style="PAGE-BREAK-AFTER: always" align=center color=black SIZE=5
width="100%" noShade>
<A name=page_3></A>
<UL style="TEXT-ALIGN: justify">
  <LI>
  <P>Completed the sale of the Bowdens project in Australia for $70 million.
</P>
  <LI>
  <P>Accelerated the feasibility study on the Pitarrilla project in Mexico
  towards completion in mid- 2012. </P>
  <LI>
  <P>Strengthened and enhanced the senior management team and technical
  capability with several appointments. </P>
  <LI>
  <P>In the Cortaderas area at the Pirquitas mine, intersected high-grade silver
  and zinc mineralization, including 218 meters of 477.3 g/t silver and 7.97% Zn
  (DDH-214), in and around a breccia body to the north of the current open-pit,
  resulting in the establishment of a new Inferred mineral resource estimate of
  22.5 million ounces of contained silver. </P></LI></UL>
<P align=justify><B>2.</B><B>&nbsp;&nbsp;&nbsp; </B><B>OUTLOOK </B></P>
<P align=justify><I>This section of the MD&amp;A provides management&#146;s
production and cost estimates for 2012. Major capital and exploration
expenditures are also discussed. These are &#147;forward-looking statements&#148; and
subject to the cautionary note regarding the risks associated with
forward-looking statements contained in item 18 herein. </I></P>
<P align=justify>Estimates of future production and costs are prepared based on
the mine plan and the expected method by which the Company will mine reserves at
Pirquitas. Actual silver and zinc production may vary from these estimates due
to a number of operational factors, including whether the volume and/or grade of
ore mined differs from estimates which could occur because of changing mining
rates, varying metallurgical or other ore characteristics and/or short term
mining conditions that require mining in different areas of the mine or
suspension of activities due to maintenance issues. Mining rates are also
subject to non-operational risks and risks and hazards including natural
phenomena, such as inclement weather conditions, as further described in the
section &#145;Other Risks and Uncertainties&#146; contained in item 11 in this MD&amp;A.
</P>
<P align=justify>On January 12, 2012 the Company provided production guidance of
between 8.2 and 8.5 million ounces of silver in 2012. For the year ending
December 31, 2012 direct mining costs are anticipated to be approximately $11.85
per ounce of silver based on direct mining costs of $100.8 million. </P>
<P align=justify>The regulatory environment within Argentina has been subject to
recent changes enacted by the Government including modifications to export
revenue repatriation, importation regulations for goods and services and the
removal of subsidies provided for fuel and natural gas products. Additionally,
recent labour negotiations within the industry indicate labour inflation is
likely to continue at elevated levels. The Company continues to assess the
overall impact of these items on its operations and Argentine peso denominated
operating costs and on the foreign exchange rate as items translate into US
dollars, the Company&#146;s reporting currency. </P>
<P align=justify><I>Direct mining cost per ounce is a non-GAAP financial
measure. Please see the discussion under &#145;Non-GAAP Financial Measures&#146; in item
14 of this MD&amp;A. Please note the Company changed its presentation of costs
per ounce during 2011 in line with the newly-endorsed production cost guidance
provided by The Silver Institute.</I> </P>
<P align=justify>The Company also expects to produce between 10.5 and 11.5
million pounds of zinc in 2012. </P>
<P align=justify>In addition, the Company anticipates that capital expenditures
in 2012 at the Pirquitas mine will approximate $19 million and exploration
expenditures at ten properties will be more than $25 million, the majority of which will be capitalized. Expenditure for the
completion of the feasibility study at Pitarrilla by mid-2012 and further work
on access roads, water wells, the operations camp and supporting administration
are expected to be approximately $30 million. If the feasibility study results
in a positive construction decision, the Company&#146;s capital expenditure
requirements will increase materially in late 2012 and for the next several
years.<b> </b></P>
<P align=right>3</P>
<HR style="PAGE-BREAK-AFTER: always" align=center color=black SIZE=5
width="100%" noShade>
<A name=page_4></A>
<P align=justify><B>3.</B><B>&nbsp;&nbsp;&nbsp; </B><B>BUSINESS OVERVIEW
</B></P>
<P align=justify>Silver Standard is engaged in the exploration, development and
production of silver-dominant mineral properties located in the Americas.</P>
<P align=justify>The Company&#146;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 and San
Agustin. The Company has a large in-ground silver position and looks to exploit
this for the benefit of the Company&#146;s shareholders. Certain projects also
contain significant gold and base metals. The Company&#146;s future growth will be
primarily driven through the development of core projects, while monetizing
other non-core projects to support funding requirements.</P>
<P align=justify>2011 was a volatile year for equity and financial markets
globally. Significant sell-offs were evidenced in July and August as the U.S.
sovereign debt downgrade was pending and the European sovereign debt situation
worsened. Equity markets did recover somewhat and were led by the U.S. Dow Jones
Index. Central banks around the world, including China and many European banks,
acted in concert with the Americans to lower interest rates as the year
progressed. </P>
<P align=justify>This volatile economic environment has been supportive for the
silver price and helped drive silver to a record high of $48.70 per ounce at the
end of April before a sharp price reduction. Price increases through the summer
saw the silver price back in the $40 per ounce range, but concerns over the
world economic outlook in September resulted in prices declining to the low $30
per ounce range. The silver price has been more stable since then and closed the
year at $28.18 per ounce. Silver has maintained its status as a &#147;safe haven
asset&#148; and a component of asset portfolios around the world. </P>
<P align=justify>The Company realized an average silver price of $33.58 per
ounce on deliveries during 2011, compared to $20.92 per ounce in 2010. </P>
<P align=justify>The stronger price environment enabled the Company to increase
revenues by 32% compared to 2010 despite sales volumes being lower, as a result
of the Company terminating its long-term sales contract in the third quarter of
2011.</P>
<P align=justify>Two significant events impacted Pirquitas during 2011. Firstly,
the replacement time for delivery of the ball mill gearbox significantly
impacted operations. The Company believes, however, that during the year
significant progress was made improving the infrastructure, systems and
processes for future operations at Pirquitas. The primary crushing capacity was
increased and the ball mill refurbished. Cost initiatives have also been
implemented to lower costs where possible and offset the risk of inflationary
pressures. Despite the ball mill not being operational for over two months of
the year, production of 7.1 million ounces of silver exceeded 2010 by 12%.</P>
<P align=justify>Secondly, a reduction to the estimated mineral reserves at
Pirquitas has now been incorporated into the mine plan and shortened the mine
life. However, this had no significant impact on the Company&#146;s financial results
for 2011. In addition, the Company believes the exploration potential at
Pirquitas is significant and has planned an extensive drilling program for
2012.</P>
<P align=justify>The Company concluded 2,000 tonnes of spot sales of silver
concentrate during the fourth quarter of 2011 (of which 1,000 tonnes was
delivered before the year-end), and announced on February 14, 2012 that it had
committed an additional 6,000 tonnes of silver concentrate to
various customers for delivery in the first half of 2012. In addition to the
spot sales, trial shipments totaling 500 tonnes of silver concentrate are at
various stages of evaluation with potential customers, and these trials are part
of longer term contract negotiations. This committed tonnage goes a long way
toward reducing the inventory which had accumulated during the year, and current
deliveries are expected to be in a strong price environment. </P>
<P align=right>4</P>
<HR style="PAGE-BREAK-AFTER: always" align=center color=black SIZE=5
width="100%" noShade>
<A name=page_5></A>
<P align=justify>The Company also completed significant transactions in the
year; acquiring the remaining 30% interest in the San Luis project, monetizing
the non-core Bowdens project for $70 million, and monetizing a significant
amount of value from the investment in Pretium by selling approximately
one-third for $130 million. The market value of the Company&#146;s investment in
Pretium at the year-end was in excess of $300 million. </P>
<P align=justify>Exploration remains important for the Company and during 2011
$36 million was spent, primarily at the development projects of Pitarrilla in
Mexico and San Luis in Peru.</P>
<P align=justify>Through 2011 the Company accelerated the Pitarrilla project in
Mexico. In the third quarter the Board of Directors committed significant funds
for completion of a feasibility study by the middle of 2012, and for
commencement of infrastructure construction, such as the operations camp, access
roads and water wells. The Company has also been building the management team to
advance this project. </P>
<P align=justify><B>4.&nbsp;&nbsp; </B><B>&nbsp;</B><B>RESULTS OF OPERATIONS
</B></P>
<P align=justify><B>Pirquitas Mine, Argentina </B></P>
<TABLE
style="BORDER-COLOR: black; BORDER-COLLAPSE: collapse; FONT-SIZE: 10pt; "
border=0 cellSpacing=0 cellPadding=0 width="100%">
  <TR vAlign=top>
    <TD align=left >&nbsp; </TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="8%" align=left>&nbsp; </TD>
    <TD  width="2%" align=left>&nbsp;</TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="8%" align=left>&nbsp; </TD>
    <TD  width="2%" align=left>&nbsp;</TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="8%" align=left>&nbsp; </TD>
    <TD  width="2%" align=left>&nbsp;</TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="8%" align=left>&nbsp; </TD>
    <TD  width="2%" align=left>&nbsp;</TD>
    <TD  width="1%" align=left bgcolor="#EEEEEE">&nbsp;</TD>
    <TD width="8%" align=right bgcolor="#EEEEEE"><B>Total </B></TD>
    <TD  width="2%" align=left bgcolor="#EEEEEE">&nbsp;</TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="8%" align=right>Total </TD>
    <TD  width="2%" align=left>&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"  width="1%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="8%" align=right>Q1 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="2%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="1%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="8%" align=right>Q2 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="2%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="1%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="8%" align=right>Q3 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="2%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="1%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="8%" align=right>Q4 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="2%"
    align=left>&nbsp;</TD>
    <TD  width="1%"
    align=left bgcolor="#EEEEEE" style="BORDER-BOTTOM: #000000 1px solid">&nbsp;</TD>
    <TD width="8%"
      align=right bgcolor="#EEEEEE" style="BORDER-BOTTOM: #000000 1px solid"><B>2011 </B></TD>
    <TD  width="2%"
    align=left bgcolor="#EEEEEE" style="BORDER-BOTTOM: #000000 1px solid">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="1%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="8%" align=right>2010
    </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="2%"
    align=left>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left >Tonnes milled (kt) </TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="8%" align=right>308 </TD>
    <TD  width="2%" align=left>&nbsp;</TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="8%" align=right>295 </TD>
    <TD  width="2%" align=left>&nbsp;</TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="8%" align=right>245 </TD>
    <TD  width="2%" align=left>&nbsp;</TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="8%" align=right>241 </TD>
    <TD  width="2%" align=left>&nbsp;</TD>
    <TD  width="1%" align=left bgcolor="#EEEEEE">&nbsp;</TD>
    <TD width="8%" align=right bgcolor="#EEEEEE"><B>1,089 </B></TD>
    <TD  width="2%" align=left bgcolor="#EEEEEE">&nbsp;</TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="8%" align=right>1,255 </TD>
    <TD  width="2%" align=left>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD >Silver mill feed grades (g/t) </TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="8%" align=right>233 </TD>
    <TD  width="2%" align=left>&nbsp;</TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="8%" align=right>261 </TD>
    <TD  width="2%" align=left>&nbsp;</TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="8%" align=right>250 </TD>
    <TD  width="2%" align=left>&nbsp;</TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="8%" align=right>274 </TD>
    <TD  width="2%" align=left>&nbsp;</TD>
    <TD  width="1%" align=left bgcolor="#EEEEEE">&nbsp;</TD>
    <TD width="8%" align=right bgcolor="#EEEEEE"><B>253 </B></TD>
    <TD  width="2%" align=left bgcolor="#EEEEEE">&nbsp;</TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="8%" align=right>233 </TD>
    <TD  width="2%" align=left>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD >Silver recoveries (%) </TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="8%" align=right>73.6 </TD>
    <TD  width="2%" align=left>&nbsp;</TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="8%" align=right>80.0 </TD>
    <TD  width="2%" align=left>&nbsp;</TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="8%" align=right>82.9 </TD>
    <TD  width="2%" align=left>&nbsp;</TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="8%" align=right>82.4 </TD>
    <TD  width="2%" align=left>&nbsp;</TD>
    <TD  width="1%" align=left bgcolor="#EEEEEE">&nbsp;</TD>
    <TD width="8%" align=right bgcolor="#EEEEEE"><B>79.5 </B></TD>
    <TD  width="2%" align=left bgcolor="#EEEEEE">&nbsp;</TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="8%" align=right>65.2 </TD>
    <TD  width="2%" align=left>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD >Silver (ounces) </TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="8%" align=left>&nbsp; </TD>
    <TD  width="2%" align=left>&nbsp;</TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="8%" align=left>&nbsp; </TD>
    <TD  width="2%" align=left>&nbsp;</TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="8%" align=left>&nbsp; </TD>
    <TD  width="2%" align=left>&nbsp;</TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="8%" align=left>&nbsp; </TD>
    <TD  width="2%" align=left>&nbsp;</TD>
    <TD  width="1%" align=left bgcolor="#EEEEEE">&nbsp;</TD>
    <TD width="8%" align=left bgcolor="#EEEEEE">&nbsp; </TD>
    <TD  width="2%" align=left bgcolor="#EEEEEE">&nbsp;</TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="8%" align=left>&nbsp; </TD>
    <TD  width="2%" align=left>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left >- produced </TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="8%" align=right>1,697,294 </TD>
    <TD  width="2%" align=left>&nbsp;</TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="8%" align=right>1,975,616 </TD>
    <TD  width="2%" align=left>&nbsp;</TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="8%" align=right>1,631,281 </TD>
    <TD  width="2%" align=left>&nbsp;</TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="8%" align=right>1,751,398 </TD>
    <TD  width="2%" align=left>&nbsp;</TD>
    <TD  width="1%" align=left bgcolor="#EEEEEE">&nbsp;</TD>
    <TD width="8%" align=right bgcolor="#EEEEEE"><B>7,055,589 </B></TD>
    <TD  width="2%" align=left bgcolor="#EEEEEE">&nbsp;</TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="8%" align=right>6,302,140 </TD>
    <TD  width="2%" align=left>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left >- sold </TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="8%" align=right>2,053,573 </TD>
    <TD  width="2%" align=left>&nbsp;</TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="8%" align=right>1,569,698 </TD>
    <TD  width="2%" align=left>&nbsp;</TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="8%" align=right>707,202 </TD>
    <TD  width="2%" align=left>&nbsp;</TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="8%" align=right>515,124 </TD>
    <TD  width="2%" align=left>&nbsp;</TD>
    <TD  width="1%" align=left bgcolor="#EEEEEE">&nbsp;</TD>
    <TD width="8%" align=right bgcolor="#EEEEEE"><B>4,845,597 </B></TD>
    <TD  width="2%" align=left bgcolor="#EEEEEE">&nbsp;</TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="8%" align=right>5,936,657 </TD>
    <TD  width="2%" align=left>&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%" bgcolor="#EEEEEE">&nbsp;</TD>
    <TD width="8%" bgcolor="#EEEEEE">&nbsp; </TD>
    <TD  width="2%" bgcolor="#EEEEEE">&nbsp;</TD>
    <TD  width="1%">&nbsp;</TD>
    <TD width="8%">&nbsp; </TD>
    <TD  width="2%">&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left >Average realized silver price ($/oz) </TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="8%" align=right>30.44 </TD>
    <TD  width="2%" align=left>&nbsp;</TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="8%" align=right>38.54 </TD>
    <TD  width="2%" align=left>&nbsp;</TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="8%" align=right>39.88 </TD>
    <TD  width="2%" align=left>&nbsp;</TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="8%" align=right>33.42 </TD>
    <TD  width="2%" align=left>&nbsp;</TD>
    <TD  width="1%" align=left bgcolor="#EEEEEE">&nbsp;</TD>
    <TD width="8%" align=right bgcolor="#EEEEEE"><B>33.58 </B></TD>
    <TD  width="2%" align=left bgcolor="#EEEEEE">&nbsp;</TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="8%" align=right>20.92 </TD>
    <TD  width="2%" align=left>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left >Average London spot silver price ($/oz) </TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="8%" align=right>31.66 </TD>
    <TD  width="2%" align=left>&nbsp;</TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="8%" align=right>38.17 </TD>
    <TD  width="2%" align=left>&nbsp;</TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="8%" align=right>38.79 </TD>
    <TD  width="2%" align=left>&nbsp;</TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="8%" align=right>31.87 </TD>
    <TD  width="2%" align=left>&nbsp;</TD>
    <TD  width="1%" align=left bgcolor="#EEEEEE">&nbsp;</TD>
    <TD width="8%" align=right bgcolor="#EEEEEE"><B>35.11 </B></TD>
    <TD  width="2%" align=left bgcolor="#EEEEEE">&nbsp;</TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="8%" align=right>20.16 </TD>
    <TD  width="2%" align=left>&nbsp;</TD></TR>
  <TR>
    <TD >&nbsp; </TD>
    <TD  width="1%">&nbsp;</TD>
    <TD width="8%">&nbsp; </TD>
    <TD  width="2%">&nbsp;</TD>
    <TD  width="1%">&nbsp;</TD>
    <TD width="8%">&nbsp; </TD>
    <TD  width="2%">&nbsp;</TD>
    <TD  width="1%">&nbsp;</TD>
    <TD width="8%">&nbsp; </TD>
    <TD  width="2%">&nbsp;</TD>
    <TD  width="1%">&nbsp;</TD>
    <TD width="8%">&nbsp; </TD>
    <TD  width="2%">&nbsp;</TD>
    <TD  width="1%" bgcolor="#EEEEEE">&nbsp;</TD>
    <TD width="8%" bgcolor="#EEEEEE">&nbsp; </TD>
    <TD  width="2%" bgcolor="#EEEEEE">&nbsp;</TD>
    <TD  width="1%">&nbsp;</TD>
    <TD width="8%">&nbsp; </TD>
    <TD  width="2%">&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left >Direct mining cost ($/oz) <SUP>(1) </SUP></TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="8%" align=right>12.26 </TD>
    <TD  width="2%" align=left>&nbsp;</TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="8%" align=right>11.57 </TD>
    <TD  width="2%" align=left>&nbsp;</TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="8%" align=right>16.20 </TD>
    <TD  width="2%" align=left>&nbsp;</TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="8%" align=right>14.97 </TD>
    <TD  width="2%" align=left>&nbsp;</TD>
    <TD  width="1%" align=left bgcolor="#EEEEEE">&nbsp;</TD>
    <TD width="8%" align=right bgcolor="#EEEEEE"><B>13.65 </B></TD>
    <TD  width="2%" align=left bgcolor="#EEEEEE">&nbsp;</TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="8%" align=right>12.19 </TD>
    <TD  width="2%" align=left>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left >Total cash cost ($/oz) <SUP>(1) </SUP></TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="8%" align=right>23.23 </TD>
    <TD  width="2%" align=left>&nbsp;</TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="8%" align=right>22.06 </TD>
    <TD  width="2%" align=left>&nbsp;</TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="8%" align=right>20.60 </TD>
    <TD  width="2%" align=left>&nbsp;</TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="8%" align=right>17.72 </TD>
    <TD  width="2%" align=left>&nbsp;</TD>
    <TD  width="1%" align=left bgcolor="#EEEEEE">&nbsp;</TD>
    <TD width="8%" align=right bgcolor="#EEEEEE"><B>20.93 </B></TD>
    <TD  width="2%" align=left bgcolor="#EEEEEE">&nbsp;</TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="8%" align=right>18.03 </TD>
    <TD  width="2%" align=left>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left >Total production cost ($/oz) <SUP>(1)
    </SUP></TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="8%" align=right>26.99 </TD>
    <TD  width="2%" align=left>&nbsp;</TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="8%" align=right>25.26 </TD>
    <TD  width="2%" align=left>&nbsp;</TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="8%" align=right>24.55 </TD>
    <TD  width="2%" align=left>&nbsp;</TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="8%" align=right>24.68 </TD>
    <TD  width="2%" align=left>&nbsp;</TD>
    <TD  width="1%" align=left bgcolor="#EEEEEE">&nbsp;</TD>
    <TD width="8%" align=right bgcolor="#EEEEEE"><B>25.37 </B></TD>
    <TD  width="2%" align=left bgcolor="#EEEEEE">&nbsp;</TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="8%" align=right>22.14 </TD>
    <TD  width="2%" align=left>&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%" bgcolor="#EEEEEE">&nbsp;</TD>
    <TD width="8%" bgcolor="#EEEEEE">&nbsp; </TD>
    <TD  width="2%" bgcolor="#EEEEEE">&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
      ><B>Financial Data ($000s) </B></TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="1%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="8%" align=left>&nbsp;
    </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="2%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="1%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="8%" align=left>&nbsp;
    </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="2%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="1%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="8%" align=left>&nbsp;
    </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="2%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="1%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="8%" align=left>&nbsp;
    </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="2%"
    align=left>&nbsp;</TD>
    <TD  width="1%"
    align=left bgcolor="#EEEEEE" style="BORDER-BOTTOM: #000000 1px solid">&nbsp;</TD>
    <TD width="8%" align=left bgcolor="#EEEEEE" style="BORDER-BOTTOM: #000000 1px solid">&nbsp;
    </TD>
    <TD  width="2%"
    align=left bgcolor="#EEEEEE" style="BORDER-BOTTOM: #000000 1px solid">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="1%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="8%" align=left>&nbsp;
    </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="2%"
    align=left>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left >Revenue </TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="8%" align=right>60,053 </TD>
    <TD  width="2%" align=left>&nbsp;</TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="8%" align=right>47,271 </TD>
    <TD  width="2%" align=left>&nbsp;</TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="8%" align=right>26,152 </TD>
    <TD  width="2%" align=left>&nbsp;</TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="8%" align=right>14,369 </TD>
    <TD  width="2%" align=left>&nbsp;</TD>
    <TD  width="1%" align=left bgcolor="#EEEEEE">&nbsp;</TD>
    <TD width="8%" align=right bgcolor="#EEEEEE"><B>147,845 </B></TD>
    <TD  width="2%" align=left bgcolor="#EEEEEE">&nbsp;</TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="8%" align=right>112,256 </TD>
    <TD  width="2%" align=left>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left >Income (loss) from mine operations </TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="8%" align=right>27,859 </TD>
    <TD  width="2%" align=left>&nbsp;</TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="8%" align=right>15,838 </TD>
    <TD  width="2%" align=left>&nbsp;</TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="8%" align=right>11,492 </TD>
    <TD  width="2%" align=left>&nbsp;</TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="8%" align=right>(3,270</TD>
    <TD  width="2%" align=left>) </TD>
    <TD  width="1%" align=left bgcolor="#EEEEEE">&nbsp;</TD>
    <TD width="8%" align=right bgcolor="#EEEEEE"><B>51,919 </B></TD>
    <TD  width="2%" align=left bgcolor="#EEEEEE">&nbsp;</TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="8%" align=right>14,134 </TD>
    <TD  width="2%" align=left>&nbsp;</TD></TR></TABLE><BR>
<TABLE
style="BORDER-COLOR: black; BORDER-COLLAPSE: collapse; FONT-SIZE: 10pt; "
border=0 cellSpacing=0 cellPadding=0 width="100%" BCLLIST>

  <TR>
    <TD vAlign=top width="5%"><SUP>(1) </SUP></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 the Company&#146;s Consolidated Statement of Income
      please refer to &#145;Non-GAAP Financial Measures&#146; in item 14 of this
      MD&amp;A.</P></TD></TR></TABLE>
<P align=justify><U>Mine production </U></P>
<P align=justify>The Pirquitas mine produced 7.1 million ounces of silver during
2011 compared with 6.3 million ounces in 2010. Although production was 12%
higher than in 2010, 2011 production was negatively impacted by over two months
of production downtime due to installing additional crushing capacity, and
operating for most of the year with a damaged ball mill gearbox. The gearbox
has now been completely rebuilt to nearly-new condition, and the mill
recommenced operating in early November 2011. A spare gearbox from Europe is due
to arrive in March 2012 and the Company has purchased a spare ball mill ring
gear with expected delivery towards the end of 2012. Since the mill has been
back in operation, it has exceeded design rates and production volumes have been
strong. </P>
<P align=right>5</P>
<HR style="PAGE-BREAK-AFTER: always" align=center color=black SIZE=5
width="100%" noShade>
<A name=page_6></A>
<P align=justify>Operations were also impacted by import restrictions imposed by
the Argentine government on all industries, including mining. The restrictions
make the timely sourcing of spare and replacement parts challenging as many
necessary mining-related parts are not readily available at the required quality
or specifications in Argentina. Import restrictions therefore result in lower
equipment availability and additional maintenance costs. Most significantly
impacted was the operation of the jig circuit. Loading, drilling and haulage
equipment availabilities were also impacted.</P>
<P align=justify>During the year, 1.1 million tonnes of ore were processed at an
average milling rate of 2,983 tonnes per day, compared to 1.3 million tonnes at
an average of 3,439 tonnes per day in 2010. The reduced tonnage processed during
2011 was due to the aforementioned ball mill shutdowns, however, the average
milling rate during 2011 per operating day was in excess of 3,600 tonnes per
day. </P>
<P align=justify>Ore milled during 2011 contained an average silver grade of 253
g/t and an average silver recovery of 79.5% was achieved. This was a significant
improvement compared to a silver grade of 233 g/t and recovery of 65.2% in 2010.
The better silver recovery achieved during 2011 was due principally to
improvements in the consistency of feed and continuous improvements to the
crushing and flotation circuits. </P>
<P align=justify>The mine produced a total of 10.1 million pounds of zinc in
2011 which met guidance and resulted from milling higher grades and achieving
better recovery than planned. There was no zinc production in 2010 as the zinc
circuit was not commissioned until the start of 2011.</P>
<P align=justify><U>Mine operating costs</U> </P>
<P align=justify><I>Direct mining cost per ounce, total cash cost per ounce and
total production cost per ounce are non-GAAP financial measures. Please see the
discussion under &#145;Non-GAAP Financial Measures&#146; in item 14 of this MD&amp;A.</I>
</P>
<P align=justify>During 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; previous disclosures have therefore
been restated to conform to the amended presentation.</P>
<P align=justify>Direct mining costs in 2011 were $13.65 per ounce of silver
compared to $12.19 per ounce in 2010. The increase in unit cost in 2011 versus
2010 was primarily driven by inflationary pressures on local labour costs and
catering, repairs and maintenance costs related to the primary crusher and the
refurbishment of the ball mill gearbox, additional maintenance costs and
external costs associated with the import restrictions, and expenditures
incurred to improve the long-term production efficiency of the facility. </P>
<P align=justify>Total cash cost in 2011, which includes by-product credits,
treatment and refining costs, royalties and production taxes, was $20.93 per
ounce of silver compared to $18.03 per ounce of silver in 2010. Treatment and
refining costs, as well as royalties and production taxes all vary as a function
of sales prices and are recorded for the actual ounces of silver sold.
Consequently, on a per ounce basis, the variability in total cash cost from
period to period is partially due to sales prices and the difference between
production and sales volumes. The higher incremental per ounce impact of these
costs in 2011 compared with 2010 is due primarily to higher prices achieved for
sales in the current year. </P>
<P align=right>6</P>
<HR style="PAGE-BREAK-AFTER: always" align=center color=black SIZE=5
width="100%" noShade>
<A name=page_7></A>
<P align=justify>Total production cost, which includes depreciation and
amortization, was $25.37 per ounce in 2011 compared to $22.14 in 2010. The
depreciation and amortization costs are largely similar on a per ounce basis,
although these costs were impacted in the fourth quarter of 2011 following the
reduction of mineral reserves at Pirquitas which increased the depreciation
charges on certain assets. </P>
<P align=justify><U>Pirquitas Mineral Resources and Reserve</U> </P>
<P align=justify>As part of the Company&#146;s ongoing production to mineral reserve
reconciliation and mine planning, and to delineate the deposit in greater detail
for the mine&#146;s mineral resources and mineral reserve estimates, the Company
undertook a comprehensive drilling campaign between the fourth quarter of 2010
and September 2011. Assay results from these drill-holes were utilized by the
Company&#146;s Qualified Persons (&#147;QPs&#148;) to complete advanced modeling of the
deposit&#146;s mineral resource and mineral reserve estimates. The results of this
work were included in the National Instrument 43-101 (&#147;NI 43-101&#148;) technical
report that was filed on SEDAR on December 23, 2011. As of December 31, 2011 the
mineral reserves of 16.3 million tonnes averaged 172.3 g/t of silver and 0.72%
zinc, for approximately 90.3 million ounces of contained silver and 259 million
pounds of contained zinc.</P>
<P align=justify><U>Exploration drilling program</U> </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 and sulfide-rich,
vein-hosted mineralization was intersected by drill-holes in the vicinity of the
above-mentioned breccia body. To date, nine relatively closely-spaced
drill-holes have intersected the mineralized breccia body. The results from this
drilling were encouraging and based on the drilling completed, the Company
estimated an Inferred mineral resource for the breccia of 7.0 million tonnes
averaging 98.4 g/t silver and 2.3% zinc, for approximately 22.5 million ounces
of contained silver and 360.1 million pounds of contained zinc, at a 50 g/t
silver cut-off grade. Additional drilling is planned in the first half of 2012
to further define and delineate this resource. </P>
<P align=justify><U>Fiscal stability agreement and regulatory environment</U>
</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% from
concentrates for projects with fiscal stability agreements pre-dating 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 applied to silver concentrates 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 on
silver concentrates, and for an order to cease payment of the export duty until
the matter has been decided by the court. An order was granted effective
September 29, 2010 to cease payment of the export duty on silver concentrates
pending the decision of the courts, and in April 2011 a government appeal
against this order was denied.</P>
<P align=justify>As of December 31, 2011 the Pirquitas mine has paid $6.6
million in export duties against which it has filed for recovery. In accordance
with the order to cease payment the Company has not been paying export duties on
silver concentrate but continues to accrue duties in full until the outcome of
the claim is known with certainty. At December 31, 2011, the Company had accrued
a liability totaling $13.1 million, with a corresponding impact on cost of sales
in the relevant period. If this export duty is successfully overturned the
benefit will be recognized in the Consolidated Statement of Income for the full
amount of paid and unpaid duty in the period recovery becomes virtually certain.
</P>
<P align=right>7</P>
<HR style="PAGE-BREAK-AFTER: always" align=center color=black SIZE=5
width="100%" noShade>
<A name=page_8></A>
<P align=justify>On October 26, 2011 the Argentina government announced a decree
that requires all funds from mining 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. The mining
industry had previously been exempted from this tax. Although the aforementioned
fiscal stability agreement also includes stability over foreign exchange
controls, the government removed such benefits with this decree. The Company
will comply with all laws and regulations, and is monitoring the situation
closely. The impact of the transfer tax should not have a material impact on the
Company. </P>
<P align=justify><B>5.</B><B>&nbsp;&nbsp;&nbsp; </B><B>REVIEW OF PROJECTS
</B></P>
<P align=justify><B>Pitarrilla, Mexico </B></P>
<P align=justify>A total of $18.2 million was spent during 2011 at the
wholly-owned Pitarrilla project located in the state of Durango, Mexico compared
to $17.7 million in 2010.</P>
<P align=justify>During the year a campaign of diamond drilling was conducted,
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 mineral resource as well as geotechnical and
metallurgical information that will be used for mine design and optimization.
This drilling work is the basis for a feasibility study which is scheduled to be
completed in the middle of 2012.</P>
<P align=justify>A scoping level evaluation indicates the optimum project will
be a large open pit mine. Plant facilities are expected to target 16,000 tonnes
per day and include a milling circuit, an agitated leach circuit and a flotation
circuit. These facilities are expected to produce silver dor&#233; and separate lead
and zinc concentrates containing payable silver.</P>
<P align=justify>The design of the open pit is expected to start in the upper
and mid-level oxide and transitional ores and then extend into the higher grade
sulfide ores in the heart of the deposit in the basal conglomerate zone and
finally bottom out in the upper levels of sulfide mineralization in sedimentary
structures below the conglomerate. This mining operation will leave intact, the
middle and lower zones of the sedimentary structures for subsequent potential
underground mining. </P>
<P align=justify>The Environmental Impact Assessment (&#147;EIA&#148;) process is
currently scheduled to be completed with a construction permit application in
the third quarter of 2012. Land access rights are being secured and construction
has commenced for the operations camp, water wells and access roads. </P>
<P align=justify>In March 2012 the Company plans to commence the latest phase of
in-fill and brownfields drilling. This diamond drill program of approximately
8,300 meters has the objective of expanding the near-surface oxide
mineralization at the Breccia Ridge and South Ridge zones. In addition,
metallurgical testing is underway to optimize metal recoveries from oxide and
sulfide mineralization. Where possible, results of the drilling and
metallurgical studies will be included in the Pitarrilla feasibility study.</P>
<P align=justify>The Company also continues to build management and technical
capability, notably with the recruitment of a new country manager and a project
manager. </P>
<P align=justify>The Company updated the mineral resources at Pitarrilla as of
January 31, 2012, as announced in the Company&#146;s news release on February 27,
2012 and the project currently comprises Measured and Indicated mineral
resources of 245.0 million tonnes containing 655.7 million ounces of silver
averaging 83.3 g/t and Inferred mineral resources of 31.3 million tonnes
containing 65.0 million ounces of silver averaging 64.7 g/t, at a 30 g/t silver
cut-off grade. The project also contains Measured and Indicated mineral
resources of 4 billion pounds of zinc and 2 billion pounds of lead. </P>
<P align=right>8</P>
<HR style="PAGE-BREAK-AFTER: always" align=center color=black SIZE=5
width="100%" noShade>
<A name=page_9></A>
<P align=justify><B>San Luis, Peru </B></P>
<P align=justify>A total of $5.6 million was spent during 2011 at the now
wholly-owned San Luis project in Peru compared to $6.4 million in 2010. On July
28, 2011, the Company 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 6.5 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 continued with two local
communities, one agreement being completed and one ongoing, and work also
continued on completing the required Environmental Impact Study (&#147;EIS&#148;). The
completion of the land access agreements and approval of the EIS will enable a
construction decision to be made.</P>
<P align=justify>During the year, 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 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
planned.</P>
<P align=justify>The San Luis project comprises Proven and Probable Mineral
Reserves of 0.5 million tonnes containing 7.2 million ounces of silver averaging
446 g/t and 0.29 million ounces of gold averaging 18 g/t. These mineral reserves
are 100% attributable to the Company as of July 28, 2011, following its
consolidation of ownership.</P>
<P align=justify><B>Diablillos, Argentina </B></P>
<P align=justify>A total of $2.6 million was spent during 2011 at the Company&#146;s
wholly-owned Diablillos project (which is located 275 kilometers south of the
Pirquitas Mine in northwestern Argentina) compared to $2.2 million in 2010.</P>
<P align=justify>Expenditures primarily included administrative, property taxes
and camp maintenance costs. Fieldwork 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 several of these targets will be drilled in 2012 with
shallow boreholes.</P>
<P align=justify>The Oculto deposit at the Diablillos project has an Indicated
mineral resource of 21.6 tonnes containing 77.1 million ounces of silver
averaging 111 g/t and 0.64 million ounces of gold averaging 0.9 g/t, with
additional Inferred mineral resources of 7.2 million tonnes containing 6.3
million ounces of silver averaging 27 g/t and 0.19 million ounces of gold
averaging 0.8 g/t.</P>
<P align=right>9</P>
<HR style="PAGE-BREAK-AFTER: always" align=center color=black SIZE=5
width="100%" noShade>
<A name=page_10></A>
<P align=justify><B>San Agustin, Mexico </B></P>
<P align=justify>A total of $0.6 million was spent during 2011 at the Company&#146;s
wholly-owned San Agustin project located in Durango State, Mexico compared to
$1.1 million spent in the prior year. Most of the expenditure was incurred as
property holding costs and other administrative expenses. </P>
<P align=justify>Advanced negotiations were conducted during the year with three
parties that control the property surface rights. Once land access agreements
are in place, a 5,000 meter diamond drilling program will be initiated. 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 121 million tonnes containing 47.8 million ounces of silver
averaging 12.3 g/t and 1.59 million ounces of gold averaging 0.41 g/t, along
with an Inferred mineral resource of 91.2 million tonnes containing 36.9 million
ounces of silver averaging 12.6 g/t and 1.06 million ounces of gold averaging
0.36 g/t.</P>
<P align=justify><B>Nazas, Mexico </B></P>
<P align=justify>A total of $4.4 million was spent during 2011 at the Company&#146;s
wholly-owned Nazas project located in Durango State, Mexico compared to $1.3
million during 2010.</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 12,587
meters being drilled from 22 boreholes during 2011. 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>During the fourth quarter of 2011 however, the Company elected
not to continue its option to purchase the Navidad claim group at the center of
the Nazas project area and expensed previously capitalized exploration costs of
$4.5 million. Although mineralization was encountered, assay results were
inadequate to justify the high costs to maintain the option. Notwithstanding the
decision on the Navidad claim group, 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. The goal at Nazas continues to be the discovery
of precious metal-rich polymetallic mineralization. </P>
<P align=right>10</P>
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width="100%" noShade>
<A name=page_11></A>
<P align=justify><B>6.</B><B>&nbsp;&nbsp;&nbsp; </B><B>SUMMARIZED ANNUAL
FINANCIAL RESULTS </B></P>
<P align=justify>The following table sets out selected annual financial results
<SUP>(1)</SUP>; </P>
<TABLE
style="BORDER-COLOR: black; BORDER-COLLAPSE: collapse; FONT-SIZE: 10pt; "
border=0 cellSpacing=0 cellPadding=0 width="100%">
  <TR vAlign=top>
    <TD align=left>&nbsp; </TD>
    <TD width="1%" align=left>&nbsp;</TD>
    <TD colspan="7" align=right> <B>Years ended December 31</B> </TD>
    <TD width="2%" align=right>&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left>&nbsp; </TD>
    <TD width="1%" align=left>&nbsp;</TD>
    <TD width="15%" align=right><B>2011</B> </TD>
    <TD width="2%" align=left>&nbsp;</TD>
    <TD width="1%" align=left>&nbsp;</TD>
    <TD width="15%" align=right><B>2010</B> </TD>
    <TD width="2%" align=left>&nbsp;</TD>
    <TD width="1%" align=left>&nbsp;</TD>
    <TD width="15%" align=right><B>2009</B> </TD>
    <TD width="2%" align=left>&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left>&nbsp; </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="1%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="15%"
      align=right><B>$000s</B> </TD>
    <TD width="2%" align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="1%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="15%"
      align=right><B>$000s</B> </TD>
    <TD width="2%" align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="1%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="15%"
      align=right><B>$000s</B> </TD>
    <TD width="2%" align=left>&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD bgColor=#e6efff align=left>Revenue </TD>
    <TD bgColor=#e6efff width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="15%" align=right>147,845 </TD>
    <TD bgColor=#e6efff width="2%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="15%" align=right>112,256 </TD>
    <TD bgColor=#e6efff width="2%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="15%" align=right>5,442 </TD>
    <TD bgColor=#e6efff width="2%" align=left>&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left>Earnings (loss) from mine operations </TD>
    <TD width="1%" align=left>&nbsp;</TD>
    <TD width="15%" align=right>51,919 </TD>
    <TD width="2%" align=left>&nbsp;</TD>
    <TD width="1%" align=left>&nbsp;</TD>
    <TD width="15%" align=right>14,134 </TD>
    <TD width="2%" align=left>&nbsp;</TD>
    <TD width="1%" align=left>&nbsp;</TD>
    <TD width="15%" align=right>(2,523</TD>
    <TD width="2%" align=left>) </TD>
  </TR>
  <TR vAlign=top>
    <TD bgColor=#e6efff align=left>Earnings (loss) from operations </TD>
    <TD bgColor=#e6efff width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="15%" align=right>22,565 </TD>
    <TD bgColor=#e6efff width="2%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="15%" align=right>(17,162</TD>
    <TD bgColor=#e6efff width="2%" align=left>) </TD>
    <TD bgColor=#e6efff width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="15%" align=right>(19,954</TD>
    <TD bgColor=#e6efff width="2%" align=left>) </TD>
  </TR>
  <TR vAlign=top>
    <TD align=left>Gain on sale of mineral properties </TD>
    <TD width="1%" align=left>&nbsp;</TD>
    <TD width="15%" align=right>49,856 </TD>
    <TD width="2%" align=left>&nbsp;</TD>
    <TD width="1%" align=left>&nbsp;</TD>
    <TD width="15%" align=right>402,009 </TD>
    <TD width="2%" align=left>&nbsp;</TD>
    <TD width="1%" align=left>&nbsp;</TD>
    <TD width="15%" align=right>167 </TD>
    <TD width="2%" align=left>&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD bgColor=#e6efff align=left>Net income (loss) attributable to shareholders
    </TD>
    <TD bgColor=#e6efff width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="15%" align=right>80,128 </TD>
    <TD bgColor=#e6efff width="2%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="15%" align=right>338,455 </TD>
    <TD bgColor=#e6efff width="2%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="15%" align=right>(13,193</TD>
    <TD bgColor=#e6efff width="2%" align=left>) </TD>
  </TR>
  <TR vAlign=top>
    <TD align=left>Basic earnings (loss) $ per share </TD>
    <TD width="1%" align=left>&nbsp;</TD>
    <TD width="15%" align=right>1.00 </TD>
    <TD width="2%" align=left>&nbsp;</TD>
    <TD width="1%" align=left>&nbsp;</TD>
    <TD width="15%" align=right>4.34 </TD>
    <TD width="2%" align=left>&nbsp;</TD>
    <TD width="1%" align=left>&nbsp;</TD>
    <TD width="15%" align=right>(0.19</TD>
    <TD width="2%" align=left>) </TD>
  </TR>
  <TR vAlign=top>
    <TD bgColor=#e6efff align=left>Diluted earnings (loss) $ per share </TD>
    <TD bgColor=#e6efff width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="15%" align=right>0.99 </TD>
    <TD bgColor=#e6efff width="2%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="15%" align=right>4.32 </TD>
    <TD bgColor=#e6efff width="2%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="15%" align=right>(0.19</TD>
    <TD bgColor=#e6efff width="2%" align=left>) </TD>
  </TR>
</TABLE>
<BR>
<TABLE
style="BORDER-COLOR: black; BORDER-COLLAPSE: collapse; FONT-SIZE: 10pt; "
border=0 cellSpacing=0 cellPadding=0 width="100%">
  <TR vAlign=top>
    <TD align=left>&nbsp; </TD>
    <TD width="1%" align=left>&nbsp;</TD>
    <TD colspan="7" align=right> <B>As at December 31</B> </TD>
    <TD width="2%" align=left>&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left>&nbsp; </TD>
    <TD width="1%" align=left>&nbsp;</TD>
    <TD width="15%" align=right><B>2011</B> </TD>
    <TD width="2%" align=left>&nbsp;</TD>
    <TD width="1%" align=left>&nbsp;</TD>
    <TD width="15%" align=right><B>2010</B> </TD>
    <TD width="2%" align=left>&nbsp;</TD>
    <TD width="1%" align=left>&nbsp;</TD>
    <TD width="15%" align=right><B>2009</B> </TD>
    <TD width="2%" align=left>&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left>&nbsp; </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="1%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="15%"
      align=right><B>$000s</B> </TD>
    <TD width="2%" align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="1%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="15%"
      align=right><B>$000s</B> </TD>
    <TD width="2%" align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="1%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="15%"
      align=right><B>$000s</B> </TD>
    <TD width="2%" align=left>&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD bgColor=#e6efff align=left>Cash and cash equivalents </TD>
    <TD bgColor=#e6efff width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="15%" align=right>329,055 </TD>
    <TD bgColor=#e6efff width="2%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="15%" align=right>232,311 </TD>
    <TD bgColor=#e6efff width="2%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="15%" align=right>26,659 </TD>
    <TD bgColor=#e6efff width="2%" align=left>&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left>Total assets </TD>
    <TD width="1%" align=left>&nbsp;</TD>
    <TD width="15%" align=right>1,276,102 </TD>
    <TD width="2%" align=left>&nbsp;</TD>
    <TD width="1%" align=left>&nbsp;</TD>
    <TD width="15%" align=right>1,147,990 </TD>
    <TD width="2%" align=left>&nbsp;</TD>
    <TD width="1%" align=left>&nbsp;</TD>
    <TD width="15%" align=right>749,925 </TD>
    <TD width="2%" align=left>&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD bgColor=#e6efff align=left>Non-current financial liabilities </TD>
    <TD bgColor=#e6efff width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="15%" align=right>126,555 </TD>
    <TD bgColor=#e6efff width="2%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="15%" align=right>137,860 </TD>
    <TD bgColor=#e6efff width="2%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="15%" align=right>110,739 </TD>
    <TD bgColor=#e6efff width="2%" align=left>&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left>Cash dividends declared ($/share) </TD>
    <TD width="1%" align=left>&nbsp;</TD>
    <TD width="15%" align=right>0.00 </TD>
    <TD width="2%" align=left>&nbsp;</TD>
    <TD width="1%" align=left>&nbsp;</TD>
    <TD width="15%" align=right>0.00 </TD>
    <TD width="2%" align=left>&nbsp;</TD>
    <TD width="1%" align=left>&nbsp;</TD>
    <TD width="15%" align=right>0.00 </TD>
    <TD width="2%" align=left>&nbsp;</TD>
  </TR>
</TABLE>
<P style="MARGIN-LEFT: 5%" align=justify><SUP>(1) </SUP>The Company&#146;s annual
financial results as at and for the years ended December 31, 2011 and 2010 have
been prepared in accordance with IFRS. As the Company&#146;s transition date to IFRS
was January 1, 2010, the summarized annual financial results as at and for the
year ended December 31, 2009 have not been restated and have been prepared under
Canadian GAAP. </P>
<P align=justify><B>Review of the Annual Financial Results </B></P>
<P align=justify>Net income for the year ended December 31, 2011 was $80.1
million ($1.00 per share) compared to $338.5 million ($4.34 per share) in 2010
and a net loss of $13.2 million ($0.19 per share) in 2009. The following is a
summary and discussion on significant components of income and expenses recorded
during 2011 compared to the prior two years. </P>
<P align=justify>In 2011 the Company recorded total revenues from the Pirquitas
Mine of $147.8 million from the sale of 4.8 million ounces of silver and 12.4
million pounds of zinc. Shipments made in the period realized an average silver
price of $33.58 per ounce, excluding the impact of period-end price adjustments,
and zinc realized an average price of $1.02 per pound. This is compared with
2010 which recorded revenues of $112.3 million from the sale of 5.9 million
ounces of silver at an average realized price of $20.92, and 2009 which only
recognised $5.4 million in revenue because commercial production only started in
December of that year. There were no zinc sales in either 2010 or 2009. The
increase in sales recognised compared to 2010 is reflective of the significant
increase in the price of silver, partially offset by the lower volume sold in
2011. Zinc sold in 2011 contributed $9.3 million to total revenues. </P>
<P align=justify>Since the mine&#146;s start-up, silver concentrates were sold
pursuant to a sales contract to a single customer. The contract was terminated
during the third quarter of 2011 which resulted in sales volumes of silver
concentrate being lower than the prior year. Zinc concentrate sales were
unaffected. A total of 1,000 tonnes of spot sales of silver concentrate were
completed in the fourth quarter the Company has committed an additional 7,000
tonnes for delivery in the first half of 2012. The Company is continuing
negotiations to establish long-term contracts with various counterparties. </P>
<P align=right>11</P>
<HR style="PAGE-BREAK-AFTER: always" align=center color=black SIZE=5
width="100%" noShade>
<A name=page_12></A>
<P align=justify>Cost of sales for 2011 was $95.9 million compared to $98.1
million in 2010, and $7.9 million in 2009. This resulted in income from mine
operations of $51.9 million in 2011, $14.1 million in 2010 and a loss of $2.5
million in 2009. The net result was an improvement in margins from 2010 to 2011
from 14.4% to 54.1% . Higher silver prices realized in 2011, and the
commencement of zinc sales, fully offset the increase in unit costs that the
mine experienced in the same period.</P>
<P align=justify>General and administrative expenses for the year ended December
31, 2011 were $23.7 million compared to $28.9 million in 2010 and $20.9 million
in 2009. The main reason for the reduction between 2011 and 2010 was share-based
payments that are revalued based on the Company&#146;s share price were significantly
lower as the share price declined towards the end of 2011. Salaries and benefits
were slightly higher in 2011 due to the increase in headcount as the Company
expands its business. The increase in 2010 compared with 2009 was primarily due
to growth in headcount and was mainly salary, employee benefit and bonus
related, and the increase in stock price through 2010 also resulted in a
significant increase in certain forms of share-based payments. </P>
<P align=justify>Expensed exploration costs of $5.7 million for 2011 and $2.4
million in 2010, and $0.5 million in 2009 relate primarily to the drilling
programs at the Pirquitas mine. Such costs at an operating property are expensed
in line with the Company&#146;s accounting policy.</P>
<P align=justify>In 2011 the Company recorded a gain on sale of mineral
properties of $51.4 million from the sale of the Bowdens project in Australia,
offset by $1.5 million of transaction costs related to the Snowfield and
Brucejack disposition in 2010, for a net gain of $49.9 million. In 2010 the
Company recognised a total gain of $402.0 million from the disposal of Snowfield
and Brucejack, and the smaller Silvertip property.</P>
<P align=justify>In September 2011, the Company sold the Bowdens project in
Australia to Kingsgate Consolidated Limited (&#147;Kingsgate&#148;) for $35.0 million in
cash, 3.4 million shares of Kingsgate (with an approximate value of $25.6
million), and two deferred cash payments of AUD5 million each. The first
deferred payment was received on December 31, 2011 and the second is due on June
30, 2012. Total consideration was approximately $70.7 million, resulting in a
gain on sale of $51.4 million (after tax gain of $35.3 million). </P>
<P align=justify>On December 21, 2010 the Company sold its 100% interest in the
Snowfield and Brucejack properties located in British Columbia, Canada to
Pretium for total consideration of $442.3 million. Under the terms of the
transaction the Company received a total of 32.5 million common shares of
Pretium with a fair value of $191.9 million, cash proceeds of $211.3 million
(before costs of $12.4 million) and a non-interest bearing convertible
promissory note in the principal amount of $39.1 million. This resulted in a
gain of $388.8 million (after tax gain of $360.6 million).</P>
<P align=justify>During February 2010, the Company sold 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 consideration
of $15.0 million, comprising cash of $7.1 million and 1.2 million common shares
of Silvercorp with a fair value of $7.8 million, for an after-tax gain of $13.1
million. </P>
<P align=justify>On April 8, 2011 the Company sold 11.5 million units of Pretium
for $120.1 million, before transaction costs. Each unit is comprised of one
common share of Pretium and half of a warrant to purchase an additional common
share of Pretium for C$12.50. This constituted a partial disposal of the
investment in the equity accounted associate, and resulted in a gain of $38.8
million. As at December 31, 2011 the Company retained an ownership interest of
28.39% in Pretium, which had a book value of $136.3 million and a market value
in excess of $300 million. </P>
<P align=right>12</P>
<HR style="PAGE-BREAK-AFTER: always" align=center color=black SIZE=5
width="100%" noShade>
<A name=page_13></A>
<P align=justify>Other income (expenses) comprised the following for the year
ended December 31; </P>
<TABLE
style="BORDER-COLOR: black; BORDER-COLLAPSE: collapse; FONT-SIZE: 10pt; "
border=0 cellSpacing=0 cellPadding=0 width="100%">

  <TR vAlign=top>
    <TD align=left>&nbsp; </TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="12%" align=right><B>2011</B> </TD>
    <TD  width="2%" align=left>&nbsp;</TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="12%" align=right>2010 </TD>
    <TD  width="2%" align=left>&nbsp;</TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="12%" align=right>2009 </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"  width="1%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="12%"
      align=right><B>$000s</B> </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="2%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="1%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="12%" align=right>$000s
    </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="2%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="1%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="12%" align=right>$000s
    </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="2%"
    align=left>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD bgColor=#e6efff align=left>(Impairment) reversal of impairment of
      convertible debenture </TD>
    <TD bgColor=#e6efff  width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="12%" align=right><B>2,400</B> </TD>
    <TD bgColor=#e6efff  width="2%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff  width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="12%" align=right>- </TD>
    <TD bgColor=#e6efff  width="2%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff  width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="12%" align=right>(2,002</TD>
    <TD bgColor=#e6efff  width="2%" align=left>) </TD></TR>
  <TR vAlign=top>
    <TD align=left>Unrealized gain (loss) on financial instruments at FVTPL
</TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="12%" align=right><B>20,182</B> </TD>
    <TD  width="2%" align=left>&nbsp;</TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="12%" align=right>(1,109</TD>
    <TD  width="2%" align=left>) </TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="12%" align=right>412 </TD>
    <TD  width="2%" align=left>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD bgColor=#e6efff align=left>Gain (loss) on sale of marketable
      securities </TD>
    <TD bgColor=#e6efff  width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="12%" align=right><B>5,453</B> </TD>
    <TD bgColor=#e6efff  width="2%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff  width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="12%" align=right>3,114 </TD>
    <TD bgColor=#e6efff  width="2%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff  width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="12%" align=right>(1,279</TD>
    <TD bgColor=#e6efff  width="2%" align=left>) </TD></TR>
  <TR vAlign=top>
    <TD align=left>Write-off of mineral property costs </TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="12%" align=right><B>(4,624</B></TD>
    <TD  width="2%" align=left><B>)</B> </TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="12%" align=right>(238</TD>
    <TD  width="2%" align=left>) </TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="12%" align=right>(377</TD>
    <TD  width="2%" align=left>) </TD></TR>
  <TR vAlign=top>
    <TD bgColor=#e6efff align=left>Write down of marketable securities and
      other investments, net of </TD>
    <TD bgColor=#e6efff  width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="12%" align=left>&nbsp; </TD>
    <TD bgColor=#e6efff  width="2%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff  width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="12%" align=left>&nbsp; </TD>
    <TD bgColor=#e6efff  width="2%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff  width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="12%" align=left>&nbsp; </TD>
    <TD bgColor=#e6efff  width="2%" align=left>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left>interest received </TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="12%" align=right><B>-</B> </TD>
    <TD  width="2%" align=left>&nbsp;</TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="12%" align=right>- </TD>
    <TD  width="2%" align=left>&nbsp;</TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="12%" align=right>534 </TD>
    <TD  width="2%" align=left>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD bgColor=#e6efff align=left>Gain on dilution of associate </TD>
    <TD bgColor=#e6efff  width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="12%" align=right><B>1,803</B> </TD>
    <TD bgColor=#e6efff  width="2%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff  width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="12%" align=right>- </TD>
    <TD bgColor=#e6efff  width="2%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff  width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="12%" align=right>- </TD>
    <TD bgColor=#e6efff  width="2%" align=left>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left>Share of loss of associate </TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="12%" align=right><B>(6,078</B></TD>
    <TD  width="2%" align=left><B>)</B> </TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="12%" align=right>(77</TD>
    <TD  width="2%" align=left>) </TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="12%" align=right>- </TD>
    <TD  width="2%" align=left>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff
      align=left>Miscellaneous income (expense) </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff
    width="1%" align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff width="12%"
    align=right><B>(1,056</B></TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff
    width="2%" align=left><B>)</B> </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff
    width="1%" align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff width="12%"
    align=right>16 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff
    width="2%" align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff
    width="1%" align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff width="12%"
    align=right>- </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff
    width="2%" align=left>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=left>&nbsp; </TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid"  width="1%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" width="12%"
      align=right><B>18,080</B> </TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid"  width="2%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid"  width="1%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" width="12%" align=right>1,706
    </TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid"  width="2%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid"  width="1%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" width="12%"
    align=right>(2,712</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid"  width="2%"
    align=left>) </TD></TR></TABLE>
<P align=justify>The unrealized gain on financial instruments at fair value
through profit and loss (&#147;FVTPL&#148;) is primarily from the convertible notes, for
which a gain of $20.2 million was recorded in 2011 compared to a loss of $1.1
million in 2010. This item was not recorded in 2009 as this instrument did not
meet the definition of a derivative liability under Canadian GAAP. Since the
acquisition of the Company&#146;s interest in Pretium in December 2010 the Company is
required to record its share of Pretium&#146;s losses, which were $6.1 million in
2011 and $0.1 million in 2010. The Company wrote off exploration costs of $4.5
million following its decision to let its option of the Navidad claim group at
the Nazas property expire. There were no significant cost write-offs in either
2010 or 2009. The gain on marketable securities recognised in the income
statement is the cumulative gain from the sale of marketable securities which
has been recycled from other comprehensive income. </P>
<P align=justify>The Company recorded a foreign exchange loss for the year ended
December 31, 2011 of $2.7 million compared to a loss of $0.9 million in 2010 and
a gain of $1.2 million in 2009. The Company&#146;s main exposure to foreign exchange
risk is related to net monetary assets denominated in Canadian dollars and
Argentine pesos. During 2011 the Canadian dollar was strong against the U.S.
dollar during the first half of the year and weakened subsequently, while the
Argentine peso steadily weakened against the U.S. dollar. </P>
<P align=justify>In the year ended December 31, 2011 the Company recorded an
income tax expense of $31.4 million compared to $32.2 million in 2010 and a
recovery of $4.3 million in 2009. Of the total tax expense in 2011, $21.1
million reflects the current and deferred tax expense at Pirquitas, $5.2 million
from the capital gain on the sale of the Pretium shares, $16.1 million from the
gain on the sale of the Bowdens project; these expenses are partially offset by
realized losses and the balance relates to changes in deferred tax liabilities.
In 2010 the tax expense at Pirquitas was $5.5 million and there was an expense
of $27.1 million in Canada primarily due to the sale of the Snowfield and
Brucejack properties. The income tax recovery in 2009 was the result of
unrealized losses on marketable securities and the operating loss at Pirquitas
in that year. </P>
<P align=right>13</P>
<HR style="PAGE-BREAK-AFTER: always" align=center color=black SIZE=5
width="100%" noShade>
<A name=page_14></A>
<P align=justify><B>7.</B><B>&nbsp;&nbsp;&nbsp; </B><B>QUARTERLY FINANCIAL
REVIEW </B></P>
<P align=justify>The following table sets out selected results from the eight
most recent quarters all of which have been prepared in accordance with IFRS;
</P>
<TABLE
style="BORDER-COLOR: black; BORDER-COLLAPSE: collapse; FONT-SIZE: 9pt; "
border=0 cellSpacing=0 cellPadding=0 width="100%">
  <TR vAlign=top>
    <TD align=left >&nbsp; </TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD colspan="10" align=center> 2011 </TD>
    <TD  width="2%" align=center>&nbsp;</TD>
    <TD  width="1%" align=center>&nbsp;</TD>
    <TD colspan="10" align=center> 2010 </TD>
    <TD  width="2%" align=left>&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left >&nbsp; </TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="6%" align=right><B>31-Dec</B> </TD>
    <TD  width="2%" align=left>&nbsp;</TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="6%" align=right>30-Sep </TD>
    <TD  width="2%" align=left>&nbsp;</TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="6%" align=right>30-Jun </TD>
    <TD  width="2%" align=left>&nbsp;</TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="6%" align=right>31-Mar </TD>
    <TD  width="2%" align=left>&nbsp;</TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="6%" align=right>31-Dec </TD>
    <TD  width="2%" align=left>&nbsp;</TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="6%" align=right>30-Sep </TD>
    <TD  width="2%" align=left>&nbsp;</TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="6%" align=right>30-Jun </TD>
    <TD  width="2%" align=left>&nbsp;</TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="6%" align=right>31-Mar </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"  width="1%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="6%"
      align=right><B>$000s</B> </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="2%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="1%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="6%" align=right>$000s
    </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="2%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="1%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="6%" align=right>$000s
    </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="2%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="1%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="6%" align=right>$000s
    </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="2%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="1%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="6%" align=right>$000s
    </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="2%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="1%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="6%" align=right>$000s
    </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="2%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="1%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="6%" align=right>$000s
    </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="2%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="1%"
    align=left></TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="6%" align=right>$000s
    </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="2%"
    align=left>&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD bgColor=#e6efff align=left >Revenue </TD>
    <TD bgColor=#e6efff  width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="6%" align=right><B>14,369</B> </TD>
    <TD bgColor=#e6efff  width="2%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff  width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="6%" align=right>26,152 </TD>
    <TD bgColor=#e6efff  width="2%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff  width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="6%" align=right>47,271 </TD>
    <TD bgColor=#e6efff  width="2%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff  width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="6%" align=right>60,053 </TD>
    <TD bgColor=#e6efff  width="2%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff  width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="6%" align=right>45,077 </TD>
    <TD bgColor=#e6efff  width="2%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff  width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="6%" align=right>41,557 </TD>
    <TD bgColor=#e6efff  width="2%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff  width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="6%" align=right>14,091 </TD>
    <TD bgColor=#e6efff  width="2%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff  width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="6%" align=right>11,531 </TD>
    <TD bgColor=#e6efff  width="2%" align=left>&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left >Income (loss) from mine operations </TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="6%" align=right><B>(3,270</B></TD>
    <TD  width="2%" align=left><B>)</B> </TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="6%" align=right>11,492 </TD>
    <TD  width="2%" align=left>&nbsp;</TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="6%" align=right>15,838 </TD>
    <TD  width="2%" align=left>&nbsp;</TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="6%" align=right>27,859 </TD>
    <TD  width="2%" align=left>&nbsp;</TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="6%" align=right>24,975 </TD>
    <TD  width="2%" align=left>&nbsp;</TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="6%" align=right>7,426 </TD>
    <TD  width="2%" align=left>&nbsp;</TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="6%" align=right>(1,673</TD>
    <TD  width="2%" align=left>) </TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="6%" align=right>(16,594</TD>
    <TD  width="2%" align=left>) </TD>
  </TR>
  <TR vAlign=top>
    <TD bgColor=#e6efff align=left >Net income (loss) </TD>
    <TD bgColor=#e6efff  width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="6%" align=right><B>2,584</B> </TD>
    <TD bgColor=#e6efff  width="2%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff  width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="6%" align=right>21,836 </TD>
    <TD bgColor=#e6efff  width="2%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff  width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="6%" align=right>45,765 </TD>
    <TD bgColor=#e6efff  width="2%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff  width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="6%" align=right>9,943 </TD>
    <TD bgColor=#e6efff  width="2%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff  width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="6%" align=right>361,623 </TD>
    <TD bgColor=#e6efff  width="2%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff  width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="6%" align=right>(10,407</TD>
    <TD bgColor=#e6efff  width="2%" align=left>) </TD>
    <TD bgColor=#e6efff  width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="6%" align=right>(9,385</TD>
    <TD bgColor=#e6efff  width="2%" align=left>) </TD>
    <TD bgColor=#e6efff  width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="6%" align=right>(3,376</TD>
    <TD bgColor=#e6efff  width="2%" align=left>) </TD>
  </TR>
  <TR>
    <TD >&nbsp; </TD>
    <TD  width="1%">&nbsp;</TD>
    <TD width="6%">&nbsp; </TD>
    <TD  width="2%">&nbsp;</TD>
    <TD  width="1%">&nbsp;</TD>
    <TD width="6%">&nbsp; </TD>
    <TD  width="2%">&nbsp;</TD>
    <TD  width="1%">&nbsp;</TD>
    <TD width="6%">&nbsp; </TD>
    <TD  width="2%">&nbsp;</TD>
    <TD  width="1%">&nbsp;</TD>
    <TD width="6%">&nbsp; </TD>
    <TD  width="2%">&nbsp;</TD>
    <TD  width="1%">&nbsp;</TD>
    <TD width="6%">&nbsp; </TD>
    <TD  width="2%">&nbsp;</TD>
    <TD  width="1%">&nbsp;</TD>
    <TD width="6%">&nbsp; </TD>
    <TD  width="2%">&nbsp;</TD>
    <TD  width="1%">&nbsp;</TD>
    <TD width="6%">&nbsp; </TD>
    <TD  width="2%">&nbsp;</TD>
    <TD  width="1%">&nbsp;</TD>
    <TD width="6%">&nbsp; </TD>
    <TD  width="2%">&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD bgColor=#e6efff align=left >Basic earnings (loss) per share </TD>
    <TD bgColor=#e6efff  width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="6%" align=right><B>0.03</B> </TD>
    <TD bgColor=#e6efff  width="2%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff  width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="6%" align=right>0.27 </TD>
    <TD bgColor=#e6efff  width="2%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff  width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="6%" align=right>0.57 </TD>
    <TD bgColor=#e6efff  width="2%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff  width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="6%" align=right>0.12 </TD>
    <TD bgColor=#e6efff  width="2%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff  width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="6%" align=right>4.64 </TD>
    <TD bgColor=#e6efff  width="2%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff  width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="6%" align=right>(0.13</TD>
    <TD bgColor=#e6efff  width="2%" align=left>) </TD>
    <TD bgColor=#e6efff  width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="6%" align=right>(0.12</TD>
    <TD bgColor=#e6efff  width="2%" align=left>) </TD>
    <TD bgColor=#e6efff  width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="6%" align=right>(0.04</TD>
    <TD bgColor=#e6efff  width="2%" align=left>) </TD>
  </TR>
  <TR vAlign=top>
    <TD align=left >Dliuted earnings (loss) per share </TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="6%" align=right><B>0.03</B> </TD>
    <TD  width="2%" align=left>&nbsp;</TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="6%" align=right>0.27 </TD>
    <TD  width="2%" align=left>&nbsp;</TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="6%" align=right>0.57 </TD>
    <TD  width="2%" align=left>&nbsp;</TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="6%" align=right>0.12 </TD>
    <TD  width="2%" align=left>&nbsp;</TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="6%" align=right>4.62 </TD>
    <TD  width="2%" align=left>&nbsp;</TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="6%" align=right>(0.13</TD>
    <TD  width="2%" align=left>) </TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="6%" align=right>(0.12</TD>
    <TD  width="2%" align=left>) </TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="6%" align=right>(0.04</TD>
    <TD  width="2%" align=left>) </TD>
  </TR>
  <TR>
    <TD bgColor=#e6efff >&nbsp; </TD>
    <TD bgColor=#e6efff  width="1%">&nbsp;</TD>
    <TD bgColor=#e6efff width="6%">&nbsp; </TD>
    <TD bgColor=#e6efff  width="2%">&nbsp;</TD>
    <TD bgColor=#e6efff  width="1%">&nbsp;</TD>
    <TD bgColor=#e6efff width="6%">&nbsp; </TD>
    <TD bgColor=#e6efff  width="2%">&nbsp;</TD>
    <TD bgColor=#e6efff  width="1%">&nbsp;</TD>
    <TD bgColor=#e6efff width="6%">&nbsp; </TD>
    <TD bgColor=#e6efff  width="2%">&nbsp;</TD>
    <TD bgColor=#e6efff  width="1%">&nbsp;</TD>
    <TD bgColor=#e6efff width="6%">&nbsp; </TD>
    <TD bgColor=#e6efff  width="2%">&nbsp;</TD>
    <TD bgColor=#e6efff  width="1%">&nbsp;</TD>
    <TD bgColor=#e6efff width="6%">&nbsp; </TD>
    <TD bgColor=#e6efff  width="2%">&nbsp;</TD>
    <TD bgColor=#e6efff  width="1%">&nbsp;</TD>
    <TD bgColor=#e6efff width="6%">&nbsp; </TD>
    <TD bgColor=#e6efff  width="2%">&nbsp;</TD>
    <TD bgColor=#e6efff  width="1%">&nbsp;</TD>
    <TD bgColor=#e6efff width="6%">&nbsp; </TD>
    <TD bgColor=#e6efff  width="2%">&nbsp;</TD>
    <TD bgColor=#e6efff  width="1%">&nbsp;</TD>
    <TD bgColor=#e6efff width="6%">&nbsp; </TD>
    <TD bgColor=#e6efff  width="2%">&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left >Cash and cash equivalents </TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="6%" align=right><B>329,055</B> </TD>
    <TD  width="2%" align=left>&nbsp;</TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="6%" align=right>355,903 </TD>
    <TD  width="2%" align=left>&nbsp;</TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="6%" align=right>368,759 </TD>
    <TD  width="2%" align=left>&nbsp;</TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="6%" align=right>260,733 </TD>
    <TD  width="2%" align=left>&nbsp;</TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="6%" align=right>232,311 </TD>
    <TD  width="2%" align=left>&nbsp;</TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="6%" align=right>35,839 </TD>
    <TD  width="2%" align=left>&nbsp;</TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="6%" align=right>57,719 </TD>
    <TD  width="2%" align=left>&nbsp;</TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="6%" align=right>102,995 </TD>
    <TD  width="2%" align=left>&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD bgColor=#e6efff align=left >Total assets </TD>
    <TD bgColor=#e6efff  width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="6%" align=right><B>1,276,102</B> </TD>
    <TD bgColor=#e6efff  width="2%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff  width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="6%" align=right>1,249,570 </TD>
    <TD bgColor=#e6efff  width="2%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff  width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="6%" align=right>1,252,360 </TD>
    <TD bgColor=#e6efff  width="2%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff  width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="6%" align=right>1,178,644 </TD>
    <TD bgColor=#e6efff  width="2%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff  width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="6%" align=right>1,147,990 </TD>
    <TD bgColor=#e6efff  width="2%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff  width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="6%" align=right>717,749 </TD>
    <TD bgColor=#e6efff  width="2%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff  width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="6%" align=right>701,356 </TD>
    <TD bgColor=#e6efff  width="2%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff  width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="6%" align=right>721,795 </TD>
    <TD bgColor=#e6efff  width="2%" align=left>&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left >Working capital </TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="6%" align=right><B>399,088</B> </TD>
    <TD  width="2%" align=left>&nbsp;</TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="6%" align=right>428,627 </TD>
    <TD  width="2%" align=left>&nbsp;</TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="6%" align=right>418,812 </TD>
    <TD  width="2%" align=left>&nbsp;</TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="6%" align=right>335,764 </TD>
    <TD  width="2%" align=left>&nbsp;</TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="6%" align=right>306,891 </TD>
    <TD  width="2%" align=left>&nbsp;</TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="6%" align=right>65,201 </TD>
    <TD  width="2%" align=left>&nbsp;</TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="6%" align=right>89,429 </TD>
    <TD  width="2%" align=left>&nbsp;</TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="6%" align=right>117,441 </TD>
    <TD  width="2%" align=left>&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD bgColor=#e6efff align=left >Non current financial liabilities </TD>
    <TD bgColor=#e6efff  width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="6%" align=right><B>126,555</B> </TD>
    <TD bgColor=#e6efff  width="2%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff  width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="6%" align=right>182,018 </TD>
    <TD bgColor=#e6efff  width="2%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff  width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="6%" align=right>171,203 </TD>
    <TD bgColor=#e6efff  width="2%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff  width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="6%" align=right>174,497 </TD>
    <TD bgColor=#e6efff  width="2%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff  width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="6%" align=right>137,860 </TD>
    <TD bgColor=#e6efff  width="2%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff  width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="6%" align=right>144,827 </TD>
    <TD bgColor=#e6efff  width="2%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff  width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="6%" align=right>137,547 </TD>
    <TD bgColor=#e6efff  width="2%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff  width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="6%" align=right>135,792 </TD>
    <TD bgColor=#e6efff  width="2%"
  align=left>&nbsp;</TD>
  </TR>
</TABLE>
<P align=justify>The Pirquitas mine commenced production at the end of 2009 and
gradually increased production, and correspondingly, revenue through 2010 and
into the first half of 2011. Silver prices also increased from the second half
of 2010 through 2011. Lower revenues in the second half of 2011 were due to the
termination of the sales contract while long-term contract negotiations were
undertaken. Production continued through this period which resulted in a
significant increase in finished goods inventory. </P>
<P align=justify>Income from mine operations follows the trend of revenues as a
significant portion of operating costs are fixed and, although they increased on
a unit basis through 2011, were broadly consistent. Net income of the Company
has been impacted by non-routine transactions such as the sale of mineral
properties in the fourth quarter of 2010 and third quarter of 2011, and the
partial sale of the Company&#146;s investment in Pretium in the second quarter of
2011. In 2011 changes in fair value of the derivative liability has had an
increasingly significant impact on net income with a gain in excess of $20.0
million. </P>
<P align=justify><B>Review of Quarterly Financial Results &#150; three months
  ended December 31, 2011 compared to the three months ended September 30, 2011</B></P>
<P align=justify>The Company recorded net income attributable to shareholders in
the fourth quarter of 2011 of $2.6 million, compared to $21.8 million in the
third quarter. Compared to the prior quarter net income was impacted
significantly by the following factors. </P>
<P align=justify>In the fourth quarter of 2011 the Company recognised revenues
of $14.4 million from the sale of 0.5 million ounces of silver and 1.9 million
pounds of zinc, with realized silver prices of $33.42 per ounce, and $0.87 per
pound of zinc. This compares to revenues of $26.2 million in the third quarter
of 2011 from the sale of 0.7 million ounces of silver, and 3.9 million pounds of
zinc, with realized silver price of $39.88 per ounce, and $1.01 per pound of
zinc. In addition, negative final settlement prices and mark to market (&#147;MTM&#148;)
adjustments reduced revenue compared to units delivered. </P>
<P align=justify>Cost of sales was higher in the fourth quarter because a higher
proportion of operating costs were expensed during the period of plant downtime
while not producing inventory, an increase in depreciation charges following the
revised mineral reserve and mineral resource estimates, and a write down of low
grade stockpiles that are planned to be processed towards the end of
the mine life. The increased costs generated a loss from mining operations in
the fourth quarter. </P>
<P align=right>14</P>
<HR style="PAGE-BREAK-AFTER: always" align=center color=black SIZE=5
width="100%" noShade>
<A name=page_15></A>
<P align=justify>General and administrative costs in the fourth quarter were
$3.3 million compared to $6.7 million in the third quarter. The reduction in the
fourth quarter was due to lower expenses on share-based payments that are linked
to the Company&#146;s share price which fell significantly in the fourth quarter.
Severance expenses were also incurred in the third quarter. </P>
<P align=justify>The recognition of a gain of $51.4 million from the disposal of
the Bowdens project in the third quarter materially increased net income and
there were no significant dispositions or similar transactions in the fourth
quarter.</P>
<P align=justify>Unrealised gains on financial instruments at FVTPL were $6.7
million in the fourth quarter compared to $5.4 million in the third quarter due
to the continued reduction in fair value of the conversion option of the
convertible notes.</P>
<P align=justify>An income tax recovery of $10.4 million was recorded in the
fourth quarter compared to an expense of $30.9 million in the third quarter. The
recovery in the fourth quarter was a result of the operating loss recorded at
Pirquitas for the quarter as discussed above, the Company also realized a
capital loss in Canada which sheltered gains from earlier in the year, and a
reversal of deferred tax liabilities in Argentina. The significant tax expense
in the third quarter was primarily driven by the taxable gain from the sale of
the Bowdens project, operating income at Pirquitas and an increase in deferred
tax liabilities. </P>
<P align=justify><B>8.</B><B>&nbsp;&nbsp;&nbsp; </B><B>LIQUIDITY </B></P>
<P align=justify>At December 31, 2011, the Company had approximately $329.1
million of cash and cash equivalents, an increase of $96.7 million from December
31, 2010. This cash is considered sufficient to meet the Company&#146;s working
capital requirements and debt obligations. </P>
<P align=justify>In addition to the cash and cash equivalents, at December 31,
2011 the Company had positive working capital of $70.0 million, comprised of
$33.5 million in marketable securities and inventory of $94.7 million, offset by
current liabilities of $77.6 million. The high finished goods inventory balance
of $44.5 million at year end was due to the lower level of sales in the second
half of 2011 while new long-term sales contracts were being negotiated; this is
expected to be sold in the first half of 2012. Current liabilities constitute
taxes payable of $22.5 million, and other payables and accrued liabilities in
the normal course of business.</P>
<P align=justify>At December 31, 2011 the Company also owned 24.7 million shares
of Pretium which are held at cost on the Statement of Financial Position, but
had a market value in excess of $300 million, and subsequent to the year-end by
February 29, 2012 the market value of the Pretium holding has risen further, to
in excess of $400 million.</P>
<P align=justify>The Company&#146;s liquidity position improved compared to the prior
year end due to net cash inflows of $96.7 million, for total cash and cash
equivalents at December 31, 2011 of $329.1 million. Of this $322.7 million is
held in Canada and the United States. </P>
<P align=justify>The cash inflows during the year were largely the result of the
sale of Pretium shares in April for cash proceeds of $112.4 million, the sale of
the Bowdens project generating $39.4 million, and $20.1 million from 1.0 million
stock options exercised. Operating cash flows from the Pirquitas mine largely
offset corporate costs and interest payments, while exploration and capital
costs totalled $65.3 million. </P>
<P align=right>15</P>
<HR style="PAGE-BREAK-AFTER: always" align=center color=black SIZE=5
width="100%" noShade>
<A name=page_16></A>
<P align=justify>The following table summarizes the Company&#146;s financial
liabilities, operating and capital commitments at December 31, 2011: </P>
<DIV>
  <TABLE
style="BORDER-COLOR: black; BORDER-COLLAPSE: collapse; FONT-SIZE: 10pt; "
border=0 cellSpacing=0 cellPadding=0 width="100%">
    <TR vAlign=top>
      <TD align=left >&nbsp; </TD>
      <TD  width="1%" align=left>&nbsp;</TD>
      <TD colspan="13" align=center> <B>Payments due by period ($000s)</B> </TD>
      <TD  width="2%" align=center>&nbsp;</TD>
    </TR>
    <TR vAlign=top>
      <TD style="BORDER-BOTTOM: #000000 1px solid" align=left
      ><B>Contractual obligations</B> </TD>
      <TD style="BORDER-BOTTOM: #000000 1px solid"  width="1%"
    align=left>&nbsp;</TD>
      <TD style="BORDER-BOTTOM: #000000 1px solid" width="9%"
      align=right><B>Total</B> </TD>
      <TD style="BORDER-BOTTOM: #000000 1px solid"  width="2%"
    align=left>&nbsp;</TD>
      <TD style="BORDER-BOTTOM: #000000 1px solid"  width="1%"
    align=left>&nbsp;</TD>
      <TD style="BORDER-BOTTOM: #000000 1px solid" width="14%" align=right
    ><B>Less than one year</B> </TD>
      <TD style="BORDER-BOTTOM: #000000 1px solid"  width="2%"
    align=left>&nbsp;</TD>
      <TD style="BORDER-BOTTOM: #000000 1px solid"  width="1%"
    align=left>&nbsp;</TD>
      <TD style="BORDER-BOTTOM: #000000 1px solid" width="9%" align=right><B>1
        - 3 years</B> </TD>
      <TD style="BORDER-BOTTOM: #000000 1px solid"  width="2%"
    align=left>&nbsp;</TD>
      <TD style="BORDER-BOTTOM: #000000 1px solid"  width="1%"
    align=left>&nbsp;</TD>
      <TD style="BORDER-BOTTOM: #000000 1px solid" width="9%" align=right><B>4-5
        years</B> </TD>
      <TD style="BORDER-BOTTOM: #000000 1px solid"  width="2%"
    align=left>&nbsp;</TD>
      <TD style="BORDER-BOTTOM: #000000 1px solid"  width="1%"
    align=left>&nbsp;</TD>
      <TD style="BORDER-BOTTOM: #000000 1px solid" width="9%"
      align=right><B>After 5 years</B> </TD>
      <TD style="BORDER-BOTTOM: #000000 1px solid"  width="2%"
    align=left>&nbsp;</TD>
    </TR>
    <TR>
      <TD >&nbsp; </TD>
      <TD  width="1%">&nbsp;</TD>
      <TD width="9%">&nbsp; </TD>
      <TD  width="2%">&nbsp;</TD>
      <TD  width="1%">&nbsp;</TD>
      <TD width="14%" >&nbsp; </TD>
      <TD  width="2%">&nbsp;</TD>
      <TD  width="1%">&nbsp;</TD>
      <TD width="9%">&nbsp; </TD>
      <TD  width="2%">&nbsp;</TD>
      <TD  width="1%">&nbsp;</TD>
      <TD width="9%">&nbsp; </TD>
      <TD  width="2%">&nbsp;</TD>
      <TD  width="1%">&nbsp;</TD>
      <TD width="9%">&nbsp; </TD>
      <TD  width="2%">&nbsp;</TD>
    </TR>
    <TR vAlign=top>
      <TD bgColor=#e6efff align=left >Trade and other payables </TD>
      <TD bgColor=#e6efff  width="1%" align=left>&nbsp;</TD>
      <TD bgColor=#e6efff width="9%" align=right>46,898 </TD>
      <TD bgColor=#e6efff  width="2%" align=left>&nbsp;</TD>
      <TD bgColor=#e6efff  width="1%" align=left>&nbsp;</TD>
      <TD bgColor=#e6efff width="14%" align=right >46,898 </TD>
      <TD bgColor=#e6efff  width="2%" align=left>&nbsp;</TD>
      <TD bgColor=#e6efff  width="1%" align=left>&nbsp;</TD>
      <TD bgColor=#e6efff width="9%" align=right>- </TD>
      <TD bgColor=#e6efff  width="2%" align=left>&nbsp;</TD>
      <TD bgColor=#e6efff  width="1%" align=left>&nbsp;</TD>
      <TD bgColor=#e6efff width="9%" align=right>- </TD>
      <TD bgColor=#e6efff  width="2%" align=left>&nbsp;</TD>
      <TD bgColor=#e6efff  width="1%" align=left>&nbsp;</TD>
      <TD bgColor=#e6efff width="9%" align=right>- </TD>
      <TD bgColor=#e6efff  width="2%" align=left>&nbsp;</TD>
    </TR>
    <TR vAlign=top>
      <TD align=left >Convertible notes <SUP>(i)</SUP> </TD>
      <TD  width="1%" align=left>&nbsp;</TD>
      <TD width="9%" align=right>138,000 </TD>
      <TD  width="2%" align=left>&nbsp;</TD>
      <TD  width="1%" align=left>&nbsp;</TD>
      <TD width="14%" align=right >- </TD>
      <TD  width="2%" align=left>&nbsp;</TD>
      <TD  width="1%" align=left>&nbsp;</TD>
      <TD width="9%" align=right>138,000 </TD>
      <TD  width="2%" align=left>&nbsp;</TD>
      <TD  width="1%" align=left>&nbsp;</TD>
      <TD width="9%" align=right>- </TD>
      <TD  width="2%" align=left>&nbsp;</TD>
      <TD  width="1%" align=left>&nbsp;</TD>
      <TD width="9%" align=right>- </TD>
      <TD  width="2%" align=left>&nbsp;</TD>
    </TR>
    <TR vAlign=top>
      <TD bgColor=#e6efff align=left >Interest on convertible notes <SUP>(i)</SUP>
      </TD>
      <TD bgColor=#e6efff  width="1%" align=left>&nbsp;</TD>
      <TD bgColor=#e6efff width="9%" align=right>1,004 </TD>
      <TD bgColor=#e6efff  width="2%" align=left>&nbsp;</TD>
      <TD bgColor=#e6efff  width="1%" align=left>&nbsp;</TD>
      <TD bgColor=#e6efff width="14%" align=right >- </TD>
      <TD bgColor=#e6efff  width="2%" align=left>&nbsp;</TD>
      <TD bgColor=#e6efff  width="1%" align=left>&nbsp;</TD>
      <TD bgColor=#e6efff width="9%" align=right>1,004 </TD>
      <TD bgColor=#e6efff  width="2%" align=left>&nbsp;</TD>
      <TD bgColor=#e6efff  width="1%" align=left>&nbsp;</TD>
      <TD bgColor=#e6efff width="9%" align=right>- </TD>
      <TD bgColor=#e6efff  width="2%" align=left>&nbsp;</TD>
      <TD bgColor=#e6efff  width="1%" align=left>&nbsp;</TD>
      <TD bgColor=#e6efff width="9%" align=right>- </TD>
      <TD bgColor=#e6efff  width="2%" align=left>&nbsp;</TD>
    </TR>
    <TR vAlign=top>
      <TD align=left >Capital expenditure commitments </TD>
      <TD  width="1%" align=left>&nbsp;</TD>
      <TD width="9%" align=right>9,635 </TD>
      <TD  width="2%" align=left>&nbsp;</TD>
      <TD  width="1%" align=left>&nbsp;</TD>
      <TD width="14%" align=right >7,573 </TD>
      <TD  width="2%" align=left>&nbsp;</TD>
      <TD  width="1%" align=left>&nbsp;</TD>
      <TD width="9%" align=right>2,062 </TD>
      <TD  width="2%" align=left>&nbsp;</TD>
      <TD  width="1%" align=left>&nbsp;</TD>
      <TD width="9%" align=right>- </TD>
      <TD  width="2%" align=left>&nbsp;</TD>
      <TD  width="1%" align=left>&nbsp;</TD>
      <TD width="9%" align=right>- </TD>
      <TD  width="2%" align=left>&nbsp;</TD>
    </TR>
    <TR vAlign=top>
      <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff align=left
    >Minimum lease rental and lease payments </TD>
      <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff
    width="1%" align=left>&nbsp;</TD>
      <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff width="9%"
    align=right>505 </TD>
      <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff
    width="2%" align=left>&nbsp;</TD>
      <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff
    width="1%" align=left>&nbsp;</TD>
      <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff width="14%"
    align=right >453 </TD>
      <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff
    width="2%" align=left>&nbsp;</TD>
      <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff
    width="1%" align=left>&nbsp;</TD>
      <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff width="9%"
    align=right>52 </TD>
      <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff
    width="2%" align=left>&nbsp;</TD>
      <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff
    width="1%" align=left>&nbsp;</TD>
      <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff width="9%"
    align=right>- </TD>
      <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff
    width="2%" align=left>&nbsp;</TD>
      <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff
    width="1%" align=left>&nbsp;</TD>
      <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff width="9%"
    align=right>- </TD>
      <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff
    width="2%" align=left>&nbsp;</TD>
    </TR>
    <TR>
      <TD >&nbsp; </TD>
      <TD  width="1%">&nbsp;</TD>
      <TD width="9%">&nbsp; </TD>
      <TD  width="2%">&nbsp;</TD>
      <TD  width="1%">&nbsp;</TD>
      <TD width="14%" >&nbsp; </TD>
      <TD  width="2%">&nbsp;</TD>
      <TD  width="1%">&nbsp;</TD>
      <TD width="9%">&nbsp; </TD>
      <TD  width="2%">&nbsp;</TD>
      <TD  width="1%">&nbsp;</TD>
      <TD width="9%">&nbsp; </TD>
      <TD  width="2%">&nbsp;</TD>
      <TD  width="1%">&nbsp;</TD>
      <TD width="9%">&nbsp; </TD>
      <TD  width="2%">&nbsp;</TD>
    </TR>
    <TR vAlign=top>
      <TD style="BORDER-BOTTOM: #000000 2px solid" bgColor=#e6efff align=left
    >Total contractual obligations </TD>
      <TD style="BORDER-BOTTOM: #000000 2px solid" bgColor=#e6efff
    width="1%" align=left>&nbsp;</TD>
      <TD style="BORDER-BOTTOM: #000000 2px solid" bgColor=#e6efff width="9%"
    align=right>196,042 </TD>
      <TD style="BORDER-BOTTOM: #000000 2px solid" bgColor=#e6efff
    width="2%" align=left>&nbsp;</TD>
      <TD style="BORDER-BOTTOM: #000000 2px solid" bgColor=#e6efff
    width="1%" align=left>&nbsp;</TD>
      <TD style="BORDER-BOTTOM: #000000 2px solid" bgColor=#e6efff width="14%"
    align=right >54,924 </TD>
      <TD style="BORDER-BOTTOM: #000000 2px solid" bgColor=#e6efff
    width="2%" align=left>&nbsp;</TD>
      <TD style="BORDER-BOTTOM: #000000 2px solid" bgColor=#e6efff
    width="1%" align=left>&nbsp;</TD>
      <TD style="BORDER-BOTTOM: #000000 2px solid" bgColor=#e6efff width="9%"
    align=right>141,118 </TD>
      <TD style="BORDER-BOTTOM: #000000 2px solid" bgColor=#e6efff
    width="2%" align=left>&nbsp;</TD>
      <TD style="BORDER-BOTTOM: #000000 2px solid" bgColor=#e6efff
    width="1%" align=left>&nbsp;</TD>
      <TD style="BORDER-BOTTOM: #000000 2px solid" bgColor=#e6efff width="9%"
    align=right>- </TD>
      <TD style="BORDER-BOTTOM: #000000 2px solid" bgColor=#e6efff
    width="2%" align=left>&nbsp;</TD>
      <TD style="BORDER-BOTTOM: #000000 2px solid" bgColor=#e6efff
    width="1%" align=left>&nbsp;</TD>
      <TD style="BORDER-BOTTOM: #000000 2px solid" bgColor=#e6efff width="9%"
    align=right>- </TD>
      <TD style="BORDER-BOTTOM: #000000 2px solid" bgColor=#e6efff
    width="2%" align=left>&nbsp;</TD>
    </TR>
  </TABLE>
</DIV>
<P align=justify><SUP>(i) </SUP>Convertible notes mature in 2028 but are
redeemable in part or in full at the option of the holder on March 1 of each of
2013, 2018 and 2023, or upon certain fundamental corporate changes. They are
also redeemable by the Company in part or in full on and after March 5, 2013.
The notes bear interest at 4.5% per annum and are convertible into common shares
upon specified events at a fixed conversion price of approximately $43.33 per
common share. </P>
<P align=justify>The Company&#146;s financial position at December 31, 2011, and the
operating cash flows that are expected over the next twelve months are believed
to be sufficient to fund currently-planned capital and exploration expenditures
in 2012 and to discharge liabilities as they come due.</P>
<P align=justify><B>9.</B><B> </B><B>CAPITAL RESOURCES </B></P>
<P align=justify>The capital of the Company consists of items included in
shareholders&#146; equity and debt, net of cash and cash equivalents as follows: </P>
<DIV align=center>
<TABLE
style="BORDER-COLOR: black; BORDER-COLLAPSE: collapse; FONT-SIZE: 10pt; "
border=0 cellSpacing=0 cellPadding=0 width="80%">

  <TR vAlign=top>
    <TD align=left >&nbsp; </TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="15%" align=right><B>December 31</B> </TD>
    <TD  width="2%" align=left>&nbsp;</TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="15%" align=right>December 31 </TD>
    <TD  width="2%" align=left>&nbsp;</TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="15%" align=right>January 1 </TD>
    <TD  width="2%" align=left>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left >&nbsp; </TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="15%" align=right><B>2011</B> </TD>
    <TD  width="2%" align=left>&nbsp;</TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="15%" align=right>2010 </TD>
    <TD  width="2%" align=left>&nbsp;</TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="15%" align=right>2010 </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"  width="1%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="15%"
      align=right><B>$000s</B> </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="2%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="1%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="15%" align=right>$000s
    </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="2%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="1%"
    align=left></TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="15%" align=right>$000s
    </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="2%"
    align=left>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD bgColor=#e6efff align=left >Shareholders' equity </TD>
    <TD bgColor=#e6efff  width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="15%" align=right><B>705,876</B> </TD>
    <TD bgColor=#e6efff  width="2%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff  width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="15%" align=right>676,651 </TD>
    <TD bgColor=#e6efff  width="2%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff  width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="15%" align=right>538,700 </TD>
    <TD bgColor=#e6efff  width="2%" align=left>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left
      >Convertible notes </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="1%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="15%"
      align=right><B>125,313</B> </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="2%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="1%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="15%"
      align=right>116,125 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="2%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="1%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="15%"
      align=right>107,895 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="2%"
    align=left>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD bgColor=#e6efff align=left >&nbsp; </TD>
    <TD bgColor=#e6efff  width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="15%" align=right><B>831,189</B> </TD>
    <TD bgColor=#e6efff  width="2%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff  width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="15%" align=right>792,776 </TD>
    <TD bgColor=#e6efff  width="2%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff  width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="15%" align=right>646,595 </TD>
    <TD bgColor=#e6efff  width="2%" align=left>&nbsp;</TD></TR>
  <TR>
    <TD >&nbsp; </TD>
    <TD  width="1%">&nbsp;</TD>
    <TD width="15%">&nbsp; </TD>
    <TD  width="2%">&nbsp;</TD>
    <TD  width="1%">&nbsp;</TD>
    <TD width="15%">&nbsp; </TD>
    <TD  width="2%">&nbsp;</TD>
    <TD  width="1%">&nbsp;</TD>
    <TD width="15%">&nbsp; </TD>
    <TD  width="2%">&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff align=left
    >Less: cash and cash equivalents </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff
    width="1%" align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff width="15%"
    align=right><B>(329,055</B></TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff
    width="2%" align=left><B>)</B> </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff
    width="1%" align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff width="15%"
    align=right>(232,311</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff
    width="2%" align=left>) </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff
    width="1%" align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff width="15%"
    align=right>(26,659</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff
    width="2%" align=left>) </TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=left
      >&nbsp; </TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid"  width="1%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" width="15%"
      align=right><B>502,134</B> </TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid"  width="2%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid"  width="1%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" width="15%"
      align=right>560,465 </TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid"  width="2%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid"  width="1%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" width="15%"
      align=right>619,936 </TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid"  width="2%"
    align=left>&nbsp;</TD></TR></TABLE></DIV>
<P align=justify>At December 31, 2011 there was no externally-imposed capital
requirement to which the Company is subject and with which the Company has not
complied. </P>
<P align=justify>The Company is advancing its Pitarrilla project in Mexico with
the objective of completing a feasibility study by mid-2012. If the feasibility
study results in a positive construction decision the Company&#146;s capital
expenditure requirements are expected to increase materially in late 2012 and
for the next few years. </P>
<P align=right>16</P>
<HR style="PAGE-BREAK-AFTER: always" align=center color=black SIZE=5
width="100%" noShade>
<A name=page_17></A>
<P align=justify>As at December 31, 2011 the Company had approximately 80.7
million common shares outstanding and 1.9 million stock options outstanding
which are exercisable into common shares at exercise prices ranging between
C$11.50 and C$40.62. </P>
<P align=justify><B>Outstanding share data<br>
</B>The authorized capital consists of an unlimited number of
common shares without par value. As at March 8, 2012, the following common
shares and options were outstanding:</P>
<DIV align=center>
<TABLE
style="BORDER-COLOR: black; BORDER-COLLAPSE: collapse; FONT-SIZE: 10pt; "
border=0 cellSpacing=0 cellPadding=0 width="80%">

  <TR vAlign=top>
    <TD align=left >&nbsp; </TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="15%" align=right nowrap><B>Number of shares</B> </TD>
    <TD  width="2%" align=left nowrap>&nbsp;</TD>
    <TD  width="1%" align=left nowrap>&nbsp;</TD>
    <TD width="15%" align=right nowrap><B>Exercise price</B> </TD>
    <TD  width="2%" align=left nowrap>&nbsp;</TD>
    <TD  width="1%" align=left nowrap>&nbsp;</TD>
    <TD width="15%" align=right nowrap><B>Remianing life</B> </TD>
    <TD  width="2%" align=left>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=left
      >&nbsp; </TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid"  width="1%"
    align=left>&nbsp;</TD>
    <TD width="15%" align=left nowrap style="BORDER-BOTTOM: #000000 2px solid">&nbsp;    </TD>
    <TD  width="2%"
    align=left nowrap style="BORDER-BOTTOM: #000000 2px solid">&nbsp;</TD>
    <TD  width="1%"
    align=left nowrap style="BORDER-BOTTOM: #000000 2px solid">&nbsp;</TD>
    <TD width="15%"
      align=right nowrap style="BORDER-BOTTOM: #000000 2px solid"><B>C$</B> </TD>
    <TD  width="2%"
    align=left nowrap style="BORDER-BOTTOM: #000000 2px solid">&nbsp;</TD>
    <TD  width="1%"
    align=left nowrap style="BORDER-BOTTOM: #000000 2px solid">&nbsp;</TD>
    <TD width="15%"
      align=right nowrap style="BORDER-BOTTOM: #000000 2px solid"><B>(years)</B> </TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid"  width="2%"
    align=left>&nbsp;</TD></TR>
  <TR>
    <TD  align=left>&nbsp;</TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD  width="15%" align=left>&nbsp;</TD>
    <TD  width="2%" align=left>&nbsp;</TD>
    <TD  width="1%" align=right>&nbsp;</TD>
    <TD  width="15%" align=right>&nbsp;</TD>
    <TD  width="2%" align=right>&nbsp;</TD>
    <TD  width="1%" align=right>&nbsp;</TD>
    <TD  width="15%" align=right>&nbsp;</TD>
    <TD  width="2%" align=right>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD bgColor=#e6efff align=left >Capital stock </TD>
    <TD bgColor=#e6efff  width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="15%" align=right>80,745,100 </TD>
    <TD bgColor=#e6efff  width="2%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff  width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="15%" align=left>&nbsp; </TD>
    <TD bgColor=#e6efff  width="2%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff  width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="15%" align=left>&nbsp; </TD>
    <TD bgColor=#e6efff  width="2%" align=left>&nbsp;</TD></TR>
  <TR>
    <TD  align=left>&nbsp;</TD>
    <TD  width="1%" align=right>&nbsp;</TD>
    <TD  width="15%" align=right>&nbsp;</TD>
    <TD  width="2%" align=right>&nbsp;</TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD  width="15%" align=left>&nbsp;</TD>
    <TD  width="2%" align=left>&nbsp;</TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD  width="15%" align=left>&nbsp;</TD>
    <TD  width="2%" align=left>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff align=left
    >Stock options </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff
    width="1%" align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff width="15%"
    align=right>2,065,829 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff
    width="2%" align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff
    width="1%" align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff width="15%"
    align=right>11.50 - 40.62 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff
    width="2%" align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff
    width="1%" align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff width="15%"
    align=right>0.3 - 8.7 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff
    width="2%" align=left>&nbsp;</TD></TR>
  <TR>
    <TD  align=left>&nbsp;</TD>
    <TD  width="1%" align=right>&nbsp;</TD>
    <TD  width="15%" align=right>&nbsp;</TD>
    <TD  width="2%" align=right>&nbsp;</TD>
    <TD  width="1%" align=right>&nbsp;</TD>
    <TD  width="15%" align=right>&nbsp;</TD>
    <TD  width="2%" align=right>&nbsp;</TD>
    <TD  width="1%" align=right>&nbsp;</TD>
    <TD  width="15%" align=right>&nbsp;</TD>
    <TD  width="2%" align=right>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 2px solid" bgColor=#e6efff align=left
    >Fully diluted </TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" bgColor=#e6efff
    width="1%" align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" bgColor=#e6efff width="15%"
    align=right>82,810,929 </TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" bgColor=#e6efff
    width="2%" align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" bgColor=#e6efff
    width="1%" align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" bgColor=#e6efff width="15%"
    align=left>&nbsp; </TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" bgColor=#e6efff
    width="2%" align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" bgColor=#e6efff
    width="1%" align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" bgColor=#e6efff width="15%"
    align=left>&nbsp; </TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" bgColor=#e6efff
    width="2%" align=left>&nbsp;</TD></TR></TABLE></DIV>
<P align=justify>The Company&#146;s Board of Directors adopted a Shareholder Rights
Plan on March 9, 2012 as more fully described in the Company&#146;s new release dated
March 12, 2012. </P>
<P align=justify><B>10.</B><B>&nbsp;&nbsp; </B><B>FINANCIAL INSTRUMENTS AND
RELATED RISKS</B></P>
<P align=justify>The Company is exposed to a variety of financial risks as a
result of its operations, including market risk (which includes price risk,
currency risk and interest rate risk), credit risk and liquidity risk. The
Company&#146;s overall risk management strategy seeks to reduce 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.</P>
<P align=justify>The risks associated with the Company&#146;s financial instruments,
  and the policies on how the Company mitigates those risks are set out below.
  This does not constitute a fulsome discussion of all risks facing the Company.<B><I>
  </I></B></P>
<P align=justify><B>a)&nbsp; </B><B>&nbsp;</B><B>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 price risk, foreign exchange risk and
interest rate risk. </P>
<P align=justify><B>(i) </B><B>&nbsp;</B><B>Price Risk </B></P>
<P align=justify>This 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. Income from mine operations in the next year depends on the metal prices
for silver and to a lesser extent zinc. These prices are affected by numerous
factors that are outside the control of the Company such as: </P>
<TABLE
style="BORDER-COLOR: black; BORDER-COLLAPSE: collapse; FONT-SIZE: 10pt; "
border=0 cellSpacing=0 cellPadding=0 width="100%">

  <TR vAlign=top>
    <TD align=center>- </TD>
    <TD width="95%" align=left >global or regional consumption
      patterns; </TD></TR>
  <TR vAlign=top>
    <TD align=center>- </TD>
    <TD width="95%" align=left >the supply of, and demand for,
      these metals; </TD></TR>
  <TR vAlign=top>
    <TD align=center>- </TD>
    <TD width="95%" align=left >speculative activities;
  </TD></TR></TABLE>
<P align=right>17</P>
<HR style="PAGE-BREAK-AFTER: always" align=center color=black SIZE=5
width="100%" noShade>
<A name=page_18></A><BR>
<TABLE
style="BORDER-COLOR: black; BORDER-COLLAPSE: collapse; FONT-SIZE: 10pt; "
border=0 cellSpacing=0 cellPadding=0 width="100%">

  <TR vAlign=top>
    <TD  align=center>-</TD>
    <TD width="95%" align=left >the availability and costs of
      metal substitutes; </TD></TR>
  <TR vAlign=top>
    <TD  align=center>-</TD>
    <TD width="95%" align=left >inflation; and </TD></TR>
  <TR vAlign=top>
    <TD  align=center>-</TD>
    <TD width="95%" align=left >political and economic
      conditions, including interest rates and currency values.
</TD></TR></TABLE>
<P align=justify>The principal financial instrument that the Company holds which
is impacted by commodity prices is the embedded derivative within trade
receivables. The majority of revenue agreements are subject to pricing terms
that settle within one to three months after delivery, and this adjustment
period represents the Company&#146;s trade receivable exposure to variations in
commodity prices.</P>
<P align=justify>The Company has not hedged the price of silver as part of its
overall corporate strategy. </P>
<P align=justify>The costs relating to the Company&#146;s production, development and
exploration activities vary depending on the market prices of certain mining
consumables including diesel fuel and natural gas. The Company has not hedged
any such costs. </P>
<P align=justify>A 10% change in the average commodity price for the year, with
all other variables held constant, expressed in thousands of U.S. dollars, would
result in the following impact to the Company&#146;s after-tax net income: </P>
<DIV align=center>
<TABLE
style="BORDER-COLOR: black; BORDER-COLLAPSE: collapse; FONT-SIZE: 10pt; "
border=0 cellSpacing=0 cellPadding=0 width="70%">

  <TR vAlign=top>
    <TD align=left >&nbsp; </TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="17%" align=right><B>2011</B> </TD>
    <TD  width="2%" align=left>&nbsp;</TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="17%" align=right>2010 </TD>
    <TD  width="2%" align=left>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left
      ><B>Products</B> </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="1%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="17%"
      align=right><B>$000s</B> </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="2%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="1%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="17%" align=right>$000s    </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="2%"
    align=left>&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD bgColor=#e6efff align=left >10% increase in silver price
    </TD>
    <TD bgColor=#e6efff  width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="17%" align=right><B>9,005</B> </TD>
    <TD bgColor=#e6efff  width="2%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff  width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="17%" align=right>7,359 </TD>
    <TD bgColor=#e6efff  width="2%" align=left>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left >10% increase in zinc price </TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="17%" align=right><B>605</B> </TD>
    <TD  width="2%" align=left>&nbsp;</TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="17%" align=right>- </TD>
    <TD  width="2%" align=left>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD bgColor=#e6efff align=left >10% increase in diesel and
      natural gas prices </TD>
    <TD bgColor=#e6efff  width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="17%" align=right><B>(1,192</B></TD>
    <TD bgColor=#e6efff  width="2%" align=left><B>)</B> </TD>
    <TD bgColor=#e6efff  width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="17%" align=right>(658</TD>
    <TD bgColor=#e6efff  width="2%" align=left>)
</TD></TR></TABLE></DIV>
<P align=justify>The Company holds certain investments in available for sale
marketable securities which are measured at fair value, being the closing price
of each equity investment at the balance sheet date. The Company is exposed to
changes in share prices which would result in gains and losses being recognized
in other comprehensive income. </P>
<P align=justify><B>(ii)</B><B> </B><B>Currency Risk </B></P>
<P align=justify>Currency 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 exchange rates. The Company&#146;s financial instruments are exposed to
currency risk where those instruments are denominated in currencies that are not
the same as their functional currency; exchange gains and losses in these
situations impact earnings. The Company&#146;s sale of silver and zinc are
denominated in U.S. dollars and thus the risk is related to costs incurred and
other non-U.S. dollars financial instruments. </P>
<P align=right>18</P>
<HR style="PAGE-BREAK-AFTER: always" align=center color=black SIZE=5
width="100%" noShade>
<A name=page_19></A>
<P align=justify>The following are the most significant areas of exposure to
currency risk: </P>
<DIV align=center>
  <TABLE
style="BORDER-COLOR: black; BORDER-COLLAPSE: collapse; FONT-SIZE: 10pt; "
border=0 cellSpacing=0 cellPadding=0 width="90%">
    <TR vAlign=top>
      <TD align=left>&nbsp; </TD>
      <TD style="BORDER-BOTTOM: #000000 1px solid"  width="1%"
    align=left>&nbsp;</TD>
      <TD colspan="10"
      align=center style="BORDER-BOTTOM: #000000 1px solid"> <B>December 31, 2011</B> </TD>
      <TD style="BORDER-BOTTOM: #000000 1px solid"  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"  width="1%"
    align=left>&nbsp;</TD>
      <TD style="BORDER-BOTTOM: #000000 1px solid" width="12%"
      align=right><B>Canadian dollar</B> </TD>
      <TD style="BORDER-BOTTOM: #000000 1px solid"  width="2%"
    align=left>&nbsp;</TD>
      <TD style="BORDER-BOTTOM: #000000 1px solid"  width="1%"
    align=left>&nbsp;</TD>
      <TD style="BORDER-BOTTOM: #000000 1px solid" width="12%"
      align=right><B>Argentine peso</B> </TD>
      <TD style="BORDER-BOTTOM: #000000 1px solid"  width="2%"
    align=left>&nbsp;</TD>
      <TD style="BORDER-BOTTOM: #000000 1px solid"  width="1%"
    align=left>&nbsp;</TD>
      <TD style="BORDER-BOTTOM: #000000 1px solid" width="12%"
      align=right><B>Australian dollar</B> </TD>
      <TD style="BORDER-BOTTOM: #000000 1px solid"  width="2%"
    align=left>&nbsp;</TD>
      <TD style="BORDER-BOTTOM: #000000 1px solid"  width="1%"
    align=left>&nbsp;</TD>
      <TD style="BORDER-BOTTOM: #000000 1px solid" width="12%"
      align=right><B>Mexican peso</B> </TD>
      <TD style="BORDER-BOTTOM: #000000 1px solid"  width="2%"
    align=left>&nbsp;</TD>
    </TR>
    <TR vAlign=top>
      <TD bgColor=#e6efff align=left>Cash </TD>
      <TD bgColor=#e6efff  width="1%" align=left>&nbsp;</TD>
      <TD bgColor=#e6efff width="12%" align=right>80,480 </TD>
      <TD bgColor=#e6efff  width="2%" align=left>&nbsp;</TD>
      <TD bgColor=#e6efff  width="1%" align=left>&nbsp;</TD>
      <TD bgColor=#e6efff width="12%" align=right>6,051 </TD>
      <TD bgColor=#e6efff  width="2%" align=left>&nbsp;</TD>
      <TD bgColor=#e6efff  width="1%" align=left>&nbsp;</TD>
      <TD bgColor=#e6efff width="12%" align=right>- </TD>
      <TD bgColor=#e6efff  width="2%" align=left>&nbsp;</TD>
      <TD bgColor=#e6efff  width="1%" align=left>&nbsp;</TD>
      <TD bgColor=#e6efff width="12%" align=right>584 </TD>
      <TD bgColor=#e6efff  width="2%" align=left>&nbsp;</TD>
    </TR>
    <TR vAlign=top>
      <TD align=left>Marketable securities </TD>
      <TD  width="1%" align=left>&nbsp;</TD>
      <TD width="12%" align=right>13,753 </TD>
      <TD  width="2%" align=left>&nbsp;</TD>
      <TD  width="1%" align=left>&nbsp;</TD>
      <TD width="12%" align=right>- </TD>
      <TD  width="2%" align=left>&nbsp;</TD>
      <TD  width="1%" align=left>&nbsp;</TD>
      <TD width="12%" align=right>19,787 </TD>
      <TD  width="2%" align=left>&nbsp;</TD>
      <TD  width="1%" align=left>&nbsp;</TD>
      <TD width="12%" align=right>- </TD>
      <TD  width="2%" align=left>&nbsp;</TD>
    </TR>
    <TR vAlign=top>
      <TD bgColor=#e6efff align=left>Accounts receivable </TD>
      <TD bgColor=#e6efff  width="1%" align=left>&nbsp;</TD>
      <TD bgColor=#e6efff width="12%" align=right>- </TD>
      <TD bgColor=#e6efff  width="2%" align=left>&nbsp;</TD>
      <TD bgColor=#e6efff  width="1%" align=left>&nbsp;</TD>
      <TD bgColor=#e6efff width="12%" align=right>- </TD>
      <TD bgColor=#e6efff  width="2%" align=left>&nbsp;</TD>
      <TD bgColor=#e6efff  width="1%" align=left>&nbsp;</TD>
      <TD bgColor=#e6efff width="12%" align=right>5,045 </TD>
      <TD bgColor=#e6efff  width="2%" align=left>&nbsp;</TD>
      <TD bgColor=#e6efff  width="1%" align=left>&nbsp;</TD>
      <TD bgColor=#e6efff width="12%" align=right>- </TD>
      <TD bgColor=#e6efff  width="2%" align=left>&nbsp;</TD>
    </TR>
    <TR vAlign=top>
      <TD align=left>Value added tax receivable </TD>
      <TD  width="1%" align=left>&nbsp;</TD>
      <TD width="12%" align=right>- </TD>
      <TD  width="2%" align=left>&nbsp;</TD>
      <TD  width="1%" align=left>&nbsp;</TD>
      <TD width="12%" align=right>89,636 </TD>
      <TD  width="2%" align=left>&nbsp;</TD>
      <TD  width="1%" align=left>&nbsp;</TD>
      <TD width="12%" align=right>- </TD>
      <TD  width="2%" align=left>&nbsp;</TD>
      <TD  width="1%" align=left>&nbsp;</TD>
      <TD width="12%" align=right>1,006 </TD>
      <TD  width="2%" align=left>&nbsp;</TD>
    </TR>
    <TR vAlign=top>
      <TD bgColor=#e6efff align=left>Trade and other payables </TD>
      <TD bgColor=#e6efff  width="1%" align=left>&nbsp;</TD>
      <TD bgColor=#e6efff width="12%" align=right>(7,825</TD>
      <TD bgColor=#e6efff  width="2%" align=left>) </TD>
      <TD bgColor=#e6efff  width="1%" align=left>&nbsp;</TD>
      <TD bgColor=#e6efff width="12%" align=right>(11,608</TD>
      <TD bgColor=#e6efff  width="2%" align=left>) </TD>
      <TD bgColor=#e6efff  width="1%" align=left>&nbsp;</TD>
      <TD bgColor=#e6efff width="12%" align=right>(16,500</TD>
      <TD bgColor=#e6efff  width="2%" align=left>) </TD>
      <TD bgColor=#e6efff  width="1%" align=left>&nbsp;</TD>
      <TD bgColor=#e6efff width="12%" align=right>(1,114</TD>
      <TD bgColor=#e6efff  width="2%" align=left>) </TD>
    </TR>
    <TR vAlign=top>
      <TD style="BORDER-BOTTOM: #000000 1px solid" align=left>Warrant liability
      </TD>
      <TD style="BORDER-BOTTOM: #000000 1px solid"  width="1%"
    align=left>&nbsp;</TD>
      <TD style="BORDER-BOTTOM: #000000 1px solid" width="12%"
    align=right>(7,067</TD>
      <TD style="BORDER-BOTTOM: #000000 1px solid"  width="2%"
    align=left>) </TD>
      <TD style="BORDER-BOTTOM: #000000 1px solid"  width="1%"
    align=left>&nbsp;</TD>
      <TD style="BORDER-BOTTOM: #000000 1px solid" width="12%" align=right>- </TD>
      <TD style="BORDER-BOTTOM: #000000 1px solid"  width="2%"
    align=left>&nbsp;</TD>
      <TD style="BORDER-BOTTOM: #000000 1px solid"  width="1%"
    align=left>&nbsp;</TD>
      <TD style="BORDER-BOTTOM: #000000 1px solid" width="12%" align=right>- </TD>
      <TD style="BORDER-BOTTOM: #000000 1px solid"  width="2%"
    align=left>&nbsp;</TD>
      <TD style="BORDER-BOTTOM: #000000 1px solid"  width="1%"
    align=left>&nbsp;</TD>
      <TD style="BORDER-BOTTOM: #000000 1px solid" width="12%" align=right>- </TD>
      <TD style="BORDER-BOTTOM: #000000 1px solid"  width="2%"
    align=left>&nbsp;</TD>
    </TR>
    <TR vAlign=top>
      <TD style="BORDER-BOTTOM: #000000 2px solid" bgColor=#e6efff
      align=left>Total </TD>
      <TD style="BORDER-BOTTOM: #000000 2px solid" bgColor=#e6efff
    width="1%" align=left>&nbsp;</TD>
      <TD style="BORDER-BOTTOM: #000000 2px solid" bgColor=#e6efff width="12%"
    align=right>79,341 </TD>
      <TD style="BORDER-BOTTOM: #000000 2px solid" bgColor=#e6efff
    width="2%" align=left>&nbsp;</TD>
      <TD style="BORDER-BOTTOM: #000000 2px solid" bgColor=#e6efff
    width="1%" align=left>&nbsp;</TD>
      <TD style="BORDER-BOTTOM: #000000 2px solid" bgColor=#e6efff width="12%"
    align=right>84,079 </TD>
      <TD style="BORDER-BOTTOM: #000000 2px solid" bgColor=#e6efff
    width="2%" align=left>&nbsp;</TD>
      <TD style="BORDER-BOTTOM: #000000 2px solid" bgColor=#e6efff
    width="1%" align=left>&nbsp;</TD>
      <TD style="BORDER-BOTTOM: #000000 2px solid" bgColor=#e6efff width="12%"
    align=right>8,332 </TD>
      <TD style="BORDER-BOTTOM: #000000 2px solid" bgColor=#e6efff
    width="2%" align=left>&nbsp;</TD>
      <TD style="BORDER-BOTTOM: #000000 2px solid" bgColor=#e6efff
    width="1%" align=left>&nbsp;</TD>
      <TD style="BORDER-BOTTOM: #000000 2px solid" bgColor=#e6efff width="12%"
    align=right>476 </TD>
      <TD style="BORDER-BOTTOM: #000000 2px solid" bgColor=#e6efff
    width="2%" align=left>&nbsp;</TD>
    </TR>
  </TABLE>
</DIV><BR>
<DIV align=center>
  <TABLE
style="BORDER-COLOR: black; BORDER-COLLAPSE: collapse; FONT-SIZE: 10pt; "
border=0 cellSpacing=0 cellPadding=0 width="90%">
    <TR vAlign=top>
      <TD align=left>&nbsp; </TD>
      <TD style="BORDER-BOTTOM: #000000 1px solid"  width="1%"
    align=left>&nbsp;</TD>
      <TD colspan="10"
      align=center style="BORDER-BOTTOM: #000000 1px solid"> <B>December 31, 2010</B> </TD>
      <TD style="BORDER-BOTTOM: #000000 1px solid"  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"  width="1%"
    align=left>&nbsp;</TD>
      <TD style="BORDER-BOTTOM: #000000 1px solid" width="12%"
      align=right><B>Canadian dollar</B> </TD>
      <TD style="BORDER-BOTTOM: #000000 1px solid"  width="2%"
    align=left>&nbsp;</TD>
      <TD style="BORDER-BOTTOM: #000000 1px solid"  width="1%"
    align=left>&nbsp;</TD>
      <TD style="BORDER-BOTTOM: #000000 1px solid" width="12%"
      align=right><B>Argentine peso</B> </TD>
      <TD style="BORDER-BOTTOM: #000000 1px solid"  width="2%"
    align=left>&nbsp;</TD>
      <TD style="BORDER-BOTTOM: #000000 1px solid"  width="1%"
    align=left>&nbsp;</TD>
      <TD style="BORDER-BOTTOM: #000000 1px solid" width="12%"
      align=right><B>Australian dollar</B> </TD>
      <TD style="BORDER-BOTTOM: #000000 1px solid"  width="2%"
    align=left>&nbsp;</TD>
      <TD style="BORDER-BOTTOM: #000000 1px solid"  width="1%"
    align=left>&nbsp;</TD>
      <TD style="BORDER-BOTTOM: #000000 1px solid" width="12%"
      align=right><B>Mexican peso</B> </TD>
      <TD style="BORDER-BOTTOM: #000000 1px solid"  width="2%"
    align=left>&nbsp;</TD>
    </TR>
    <TR vAlign=top>
      <TD bgColor=#e6efff align=left>Cash </TD>
      <TD bgColor=#e6efff  width="1%" align=left>&nbsp;</TD>
      <TD bgColor=#e6efff width="12%" align=right>164,557 </TD>
      <TD bgColor=#e6efff  width="2%" align=left>&nbsp;</TD>
      <TD bgColor=#e6efff  width="1%" align=left>&nbsp;</TD>
      <TD bgColor=#e6efff width="12%" align=right>9,588 </TD>
      <TD bgColor=#e6efff  width="2%" align=left>&nbsp;</TD>
      <TD bgColor=#e6efff  width="1%" align=left>&nbsp;</TD>
      <TD bgColor=#e6efff width="12%" align=right>151 </TD>
      <TD bgColor=#e6efff  width="2%" align=left>&nbsp;</TD>
      <TD bgColor=#e6efff  width="1%" align=left>&nbsp;</TD>
      <TD bgColor=#e6efff width="12%" align=right>487 </TD>
      <TD bgColor=#e6efff  width="2%" align=left>&nbsp;</TD>
    </TR>
    <TR vAlign=top>
      <TD align=left>Marketable securities </TD>
      <TD  width="1%" align=left>&nbsp;</TD>
      <TD width="12%" align=right>36,700 </TD>
      <TD  width="2%" align=left>&nbsp;</TD>
      <TD  width="1%" align=left>&nbsp;</TD>
      <TD width="12%" align=right>- </TD>
      <TD  width="2%" align=left>&nbsp;</TD>
      <TD  width="1%" align=left>&nbsp;</TD>
      <TD width="12%" align=right>- </TD>
      <TD  width="2%" align=left>&nbsp;</TD>
      <TD  width="1%" align=left>&nbsp;</TD>
      <TD width="12%" align=right>- </TD>
      <TD  width="2%" align=left>&nbsp;</TD>
    </TR>
    <TR vAlign=top>
      <TD bgColor=#e6efff align=left>Accounts receivable </TD>
      <TD bgColor=#e6efff  width="1%" align=left>&nbsp;</TD>
      <TD bgColor=#e6efff width="12%" align=right>4,821 </TD>
      <TD bgColor=#e6efff  width="2%" align=left>&nbsp;</TD>
      <TD bgColor=#e6efff  width="1%" align=left>&nbsp;</TD>
      <TD bgColor=#e6efff width="12%" align=right>- </TD>
      <TD bgColor=#e6efff  width="2%" align=left>&nbsp;</TD>
      <TD bgColor=#e6efff  width="1%" align=left>&nbsp;</TD>
      <TD bgColor=#e6efff width="12%" align=right>- </TD>
      <TD bgColor=#e6efff  width="2%" align=left>&nbsp;</TD>
      <TD bgColor=#e6efff  width="1%" align=left>&nbsp;</TD>
      <TD bgColor=#e6efff width="12%" align=right>- </TD>
      <TD bgColor=#e6efff  width="2%" align=left>&nbsp;</TD>
    </TR>
    <TR vAlign=top>
      <TD align=left>Value added tax receivable </TD>
      <TD  width="1%" align=left>&nbsp;</TD>
      <TD width="12%" align=right>- </TD>
      <TD  width="2%" align=left>&nbsp;</TD>
      <TD  width="1%" align=left>&nbsp;</TD>
      <TD width="12%" align=right>71,683 </TD>
      <TD  width="2%" align=left>&nbsp;</TD>
      <TD  width="1%" align=left>&nbsp;</TD>
      <TD width="12%" align=right>- </TD>
      <TD  width="2%" align=left>&nbsp;</TD>
      <TD  width="1%" align=left>&nbsp;</TD>
      <TD width="12%" align=right>- </TD>
      <TD  width="2%" align=left>&nbsp;</TD>
    </TR>
    <TR vAlign=top>
      <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff
      align=left>Trade and other payables </TD>
      <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff
    width="1%" align=left>&nbsp;</TD>
      <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff width="12%"
    align=right>(5,984</TD>
      <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff
    width="2%" align=left>) </TD>
      <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff
    width="1%" align=left>&nbsp;</TD>
      <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff width="12%"
    align=right>(13,044</TD>
      <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff
    width="2%" align=left>) </TD>
      <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff
    width="1%" align=left>&nbsp;</TD>
      <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff width="12%"
    align=right>(12</TD>
      <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff
    width="2%" align=left>) </TD>
      <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff
    width="1%" align=left>&nbsp;</TD>
      <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff width="12%"
    align=right>(219</TD>
      <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff
    width="2%" align=left>) </TD>
    </TR>
    <TR vAlign=top>
      <TD style="BORDER-BOTTOM: #000000 2px solid" align=left>Total </TD>
      <TD style="BORDER-BOTTOM: #000000 2px solid"  width="1%"
    align=left>&nbsp;</TD>
      <TD style="BORDER-BOTTOM: #000000 2px solid" width="12%"
      align=right>200,094 </TD>
      <TD style="BORDER-BOTTOM: #000000 2px solid"  width="2%"
    align=left>&nbsp;</TD>
      <TD style="BORDER-BOTTOM: #000000 2px solid"  width="1%"
    align=left>&nbsp;</TD>
      <TD style="BORDER-BOTTOM: #000000 2px solid" width="12%"
      align=right>68,227 </TD>
      <TD style="BORDER-BOTTOM: #000000 2px solid"  width="2%"
    align=left>&nbsp;</TD>
      <TD style="BORDER-BOTTOM: #000000 2px solid"  width="1%"
    align=left>&nbsp;</TD>
      <TD style="BORDER-BOTTOM: #000000 2px solid" width="12%" align=right>139
      </TD>
      <TD style="BORDER-BOTTOM: #000000 2px solid"  width="2%"
    align=left>&nbsp;</TD>
      <TD style="BORDER-BOTTOM: #000000 2px solid"  width="1%"
    align=left>&nbsp;</TD>
      <TD style="BORDER-BOTTOM: #000000 2px solid" width="12%" align=right>268
      </TD>
      <TD style="BORDER-BOTTOM: #000000 2px solid"  width="2%"
    align=left>&nbsp;</TD>
    </TR>
  </TABLE>
</DIV>
<P align=justify>On October 26, 2011 the Argentine government announced a decree
that requires all funds from export sales to be repatriated to Argentina and
converted into Argentine 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 monitoring the situation closely,
but understands that the impact of the imposition of the transfer tax will not
have a material impact on the Company. </P>
<P align=justify>The Company monitors and manages its foreign exchange risk with
the objective of ensuring its group-wide exposure to negative fluctuations in
currencies against the U.S. dollar is managed. As at December 31, 2011the
Company has not entered into any derivatives to mitigate this risk. </P>
<P align=justify>A 10% increase in the U.S. dollar exchange rate on financial
assets and liabilities denominated in the following currencies, with all other
variables held constant, would result in the following impact to the Company&#146;s
after-tax net income: </P>
<DIV align=center>
<TABLE
style="BORDER-COLOR: black; BORDER-COLLAPSE: collapse; FONT-SIZE: 10pt; "
border=0 cellSpacing=0 cellPadding=0 width="60%">

  <TR vAlign=top>
    <TD align=left >&nbsp; </TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="17%" align=right><B>2011</B> </TD>
    <TD  width="2%" align=left>&nbsp;</TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="17%" align=right>2010 </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"  width="1%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="17%"
      align=right><B>$000s</B> </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="2%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="1%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="17%" align=right>$000s    </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="2%"
    align=left>&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD bgColor=#e6efff align=left >Canadian dollar </TD>
    <TD bgColor=#e6efff  width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="17%" align=right><B>(5,830</B></TD>
    <TD bgColor=#e6efff  width="2%" align=left><B>)</B> </TD>
    <TD bgColor=#e6efff  width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="17%" align=right>(12,183</TD>
    <TD bgColor=#e6efff  width="2%" align=left>) </TD></TR>
  <TR vAlign=top>
    <TD align=left >Argentine peso </TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="17%" align=right><B>(5,635</B></TD>
    <TD  width="2%" align=left><B>)</B> </TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="17%" align=right>(4,514</TD>
    <TD  width="2%" align=left>) </TD></TR>
  <TR vAlign=top>
    <TD bgColor=#e6efff align=left >Australian dollar </TD>
    <TD bgColor=#e6efff  width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="17%" align=right><B>(630</B></TD>
    <TD bgColor=#e6efff  width="2%" align=left><B>)</B> </TD>
    <TD bgColor=#e6efff  width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="17%" align=right>(10</TD>
    <TD bgColor=#e6efff  width="2%" align=left>) </TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=left
      >Mexican peso </TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid"  width="1%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" width="17%"
      align=right><B>(33</B></TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid"  width="2%"
    align=left><B>)</B> </TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid"  width="1%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" width="17%"
align=right>(19</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid"  width="2%"
    align=left>) </TD></TR></TABLE></DIV>
<P align=justify><B>(iii)&nbsp; </B><B>&nbsp;</B><B>Interest Rate Risk </B></P>
<P align=justify>Interest rate risk is the risk that the fair values and future
cash flows of the Company will fluctuate because of changes in market interest
rates. Interest rate risk mainly arises from the interest rate impact on the
Company&#146;s cash and cash equivalents because they are the only financial
instrument the Company holds that earns interest based on variable market
interest rates. The long-term convertible notes have fixed interest rates and
therefore cash flows are not exposed to fluctuations in interest rates, however
a change in interest rates would impact the fair value of the
instruments but because the Company records the notes at amortized cost there
would be no impact on the financial results of the Company. The Company monitors
its exposure to interest rates closely and has not entered into any derivative
contracts to manage its risk. </P>
<P align=right>19</P>
<HR style="PAGE-BREAK-AFTER: always" align=center color=black SIZE=5
width="100%" noShade>
<A name=page_20></A>
<P align=justify>At December 31, 2011, the weighted average interest rate of
cash equivalents was 0.14% (2010 - 0.89%) . With other variables unchanged, a 1%
increase in the interest rate would increase after-tax net income by $2,340,000
(2010 - $450,000). </P>
<P align=justify><B>b)&nbsp; </B><B>&nbsp;</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 the collectability of trade receivables in the
ordinary course of business and the quality of its financial investments.</P>
<P align=justify><B>Credit risk related to financial institutions and cash
deposits</B> The Company&#146;s policy is only to utilize highly-rated financial
institutions and only to invest in government securities. The Company considers
the risk of loss associated with cash deposits to be low.</P>
<P align=justify><B>Credit risk related to trade receivables</B> The Company is
subject to significant concentrations of credit risk related to trade
receivables because almost all of its sales through 2011 were to a single
customer. The Company has not, however, recorded an allowance against trade
receivables because it is confident of the collectability based on the nature of
its customer and all balances owed have been settled in full when due. In order
to mitigate this risk, the Company ensures a minimum creditworthiness of
customers, and has entered into spot sales agreements with additional customers
in 2012. </P>
<P align=justify><B>Credit risk related to other financial assets</B> All other
receivable balances are expected to be collectible in full due to the nature of
the counterparties and/or a previous history of collectability. </P>
<P align=justify>The Company also has credit risk through its significant value
added tax balance that is collectible from the government of Argentina. Due to
the legislative rules and complex collection process the asset has been
classified as non-current. The Company believes that this balance is collectible
in full. </P>
<P align=justify>The Company&#146;s maximum exposure to credit risk at December 31was
as follows: </P>
<DIV align=center>
<TABLE
style="BORDER-COLOR: black; BORDER-COLLAPSE: collapse; FONT-SIZE: 10pt; "
border=0 cellSpacing=0 cellPadding=0 width="60%">

  <TR vAlign=top>
    <TD align=left >&nbsp; </TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="17%" align=right><B>2011</B> </TD>
    <TD  width="2%" align=left>&nbsp;</TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="17%" align=right>2010 </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"  width="1%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="17%"
      align=right><B>$000s</B> </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="2%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="1%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="17%" align=right>$000s    </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="2%"
    align=left>&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD bgColor=#e6efff align=left >Cash and cash equivalents </TD>
    <TD bgColor=#e6efff  width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="17%" align=right><B>329,055</B> </TD>
    <TD bgColor=#e6efff  width="2%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff  width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="17%" align=right>232,311 </TD>
    <TD bgColor=#e6efff  width="2%" align=left>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left >Value added tax receivable </TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="17%" align=right><B>90,642</B> </TD>
    <TD  width="2%" align=left>&nbsp;</TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="17%" align=right>71,683 </TD>
    <TD  width="2%" align=left>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD bgColor=#e6efff align=left >Trade and other receivables
    </TD>
    <TD bgColor=#e6efff  width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="17%" align=right><B>5,045</B> </TD>
    <TD bgColor=#e6efff  width="2%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff  width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="17%" align=right>35,916 </TD>
    <TD bgColor=#e6efff  width="2%" align=left>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left
      >Other financial assets </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="1%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="17%"
      align=right><B>1,768</B> </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="2%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="1%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="17%" align=right>9,051
    </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="2%"
    align=left>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 2px solid" bgColor=#e6efff align=left
    >&nbsp; </TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" bgColor=#e6efff
    width="1%" align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" bgColor=#e6efff width="17%"
    align=right><B>426,510</B> </TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" bgColor=#e6efff
    width="2%" align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" bgColor=#e6efff
    width="1%" align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" bgColor=#e6efff width="17%"
    align=right>348,961 </TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" bgColor=#e6efff
    width="2%" align=left>&nbsp;</TD></TR></TABLE></DIV>
<P align=justify>At December 31, 2011 no amounts were held as collateral. </P>
<P align=right>20</P>
<HR style="PAGE-BREAK-AFTER: always" align=center color=black SIZE=5
width="100%" noShade>
<A name=page_21></A>
<P align=justify><B>c)&nbsp; </B><B>&nbsp;</B><B>Liquidity Risk </B></P>
<P align=justify>Liquidity risk is the risk that the Company will not be able to
meet its obligations over financial instruments 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. The Company&#146;s
objective is to ensure that there are sufficient committed financial resources
to meet its business requirements for a minimum of twelve months. </P>
<P align=justify>The maturity profile of financial liabilities presenting
contractual undiscounted cash flows as at December 31, 2011, is presented above
in item 8 of this MD&amp;A. </P>
<P align=justify>In the opinion of management, working capital at December 31,
2011 together with future cash flows from operations is sufficient to support
the Company&#146;s commitments through 2012. For periods beyond 2012 the current
working capital and cash flows from operations are expected to support further
development, exploration and growth. </P>
<P align=justify>The Company has no off balance sheet arrangements. </P>
<P align=justify><B>11.</B><B>&nbsp;&nbsp; </B><B>OTHER RISKS AND UNCERTAINTIES
</B></P>
<P align=justify><B>Foreign operations </B></P>
<P align=justify>The Company currently conducts operations in Argentina, and has
exploration projects in Mexico, Peru, Argentina, Chile, Canada and the United
States, and as such the Company is exposed to various levels of economic,
political and other risks and uncertainties. These risks and uncertainties vary
from country to country and include, but are not limited to, royalties and tax
increases or claims by governmental bodies, expropriation or nationalization,
foreign exchange controls, import and export regulations, cancellation or
renegotiation of contracts and environmental permitting regulations. The
occurrence of these various factors and uncertainties cannot be accurately
predicted and could have a material adverse effect on the Company&#146;s operations
or profitability. </P>
<P align=justify><B>Environmental regulation </B></P>
<P align=justify>The Company&#146;s activities are subject to extensive laws and
regulations governing environmental protection which are complex and have tended
to become more stringent over time. The Company is required to obtain
governmental permits and in some instances provide bonding requirements under
federal, state, or provincial air, water quality, and mine reclamation rules and
permits. Although the Company makes provisions for reclamation costs, it cannot
be assured that these provisions will be adequate to discharge its future
obligations for these costs. Failure to comply with applicable environmental
laws may result in injunctions, damages, suspension or revocation of permits and
imposition of penalties. While responsible environmental stewardship is one of
the Company&#146;s top priorities, there can be no assurance that the Company has
been or will be at all times in complete compliance with such laws, regulations
and permits, or that the costs of complying with current and future
environmental laws and permits will not materially and adversely affect the
Company&#146;s business, results of operations or financial condition. </P>
<P align=right>21</P>
<HR style="PAGE-BREAK-AFTER: always" align=center color=black SIZE=5
width="100%" noShade>
<A name=page_22></A>
<P align=justify>For further information regarding the Company&#146;s 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>, and to the &#145;Annual Report on Form 20-F&#146;
for the year ended December 31, 2011 to be filed on SEDAR in March 2012. </P>
<P align=justify><B>12.&nbsp; </B><B>&nbsp;</B><B>RELATED PARTY TRANSACTIONS
</B></P>
<P align=justify>During the year ended December 31, 2011, the Company recorded
administrative, technical services and expense reimbursements of $82,000
(December 31, 2010 - $19,000) from companies related by common directors or
officers including the Company&#146;s equity accounted associate. At December 31,
2011, trade and other receivables include $101,000 (December 31, 2010 - $2,000)
and trade and other payables include $688,000 (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=justify><B>13.</B><B>&nbsp;&nbsp; </B><B>SIGNFICANT INVESTMENTS
ACCOUNTED FOR BY THE EQUITY METHOD </B></P>
<P align=justify>As at December 31, 2011 the Company retained an ownership
interest in Pretium of 28.39% . This interest was reduced to 27.99% by a bought
private placement Pretium closed in February 2012 and, if all warrants are
exercised, the interest would be further reduced to 21.47% . 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, in thousands
of U.S. dollars: </P>
<DIV align=center>
<TABLE
style="BORDER-COLOR: black; BORDER-COLLAPSE: collapse; FONT-SIZE: 10pt; "
border=0 cellSpacing=0 cellPadding=0 width="50%">

  <TR vAlign=top>
    <TD align=left >&nbsp; </TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="22%" align=right nowrap><B>December 31, 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  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"  width="1%"
    align=right>&nbsp;</TD>
    <TD width="22%" align=right nowrap style="BORDER-BOTTOM: #000000 1px solid">$</TD>
    <TD  width="2%"
    align=right nowrap style="BORDER-BOTTOM: #000000 1px solid">&nbsp;</TD>
    <TD  width="1%"
    align=right nowrap style="BORDER-BOTTOM: #000000 1px solid">&nbsp;</TD>
    <TD width="22%" align=right nowrap style="BORDER-BOTTOM: #000000 1px solid">$</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="2%"
    align=right>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD bgColor=#e6efff align=left >Assets </TD>
    <TD bgColor=#e6efff  width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="22%" align=right><B>506,167</B> </TD>
    <TD bgColor=#e6efff  width="2%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff  width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="22%" align=right>499,158 </TD>
    <TD bgColor=#e6efff  width="2%" align=left>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left >Liabilities </TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="22%" align=right><B>(7,350</B></TD>
    <TD  width="2%" align=left><B>)</B> </TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="22%" align=right>(40,876</TD>
    <TD  width="2%" align=left>) </TD></TR>
  <TR vAlign=top>
    <TD bgColor=#e6efff align=left >Revenues </TD>
    <TD bgColor=#e6efff  width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="22%" align=right><B>-</B> </TD>
    <TD bgColor=#e6efff  width="2%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff  width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="22%" align=right>- </TD>
    <TD bgColor=#e6efff  width="2%" align=left>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=left >Net
      loss </TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid"  width="1%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" width="22%"
      align=right><B>(17,573</B></TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid"  width="2%"
    align=left><B>)</B> </TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid"  width="1%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" width="22%"
      align=right>(14,127</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid"  width="2%"
    align=left>) </TD></TR></TABLE></DIV>
<P align=right>22</P>
<HR style="PAGE-BREAK-AFTER: always" align=center color=black SIZE=5
width="100%" noShade>
<A name=page_23></A>
<P align=justify><B>14.</B><B>&nbsp;&nbsp; </B><B>NON-GAAP FINANCIAL MEASURES
</B></P>
<P align=justify>The non-GAAP financial measures presented do not have any
standardized meaning prescribed by IFRS and are therefore unlikely to be
directly comparable to similar measures presented by other issuers. </P>
<P align=justify><B>Non-GAAP financial 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 date
there was no standardized presentation guidance and 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 in 2011 in order
to facilitate more uniform disclosures within the industry. All comparatives
have been updated to reflect the current presentation standard. </P>
<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 the Company&#146;s Consolidated Statement of Income: </P>
<TABLE
style="BORDER-COLOR: black; BORDER-COLLAPSE: collapse; FONT-SIZE: 10pt; "
border=0 cellSpacing=0 cellPadding=0 width="100%">
  <TR vAlign=top>
    <TD align=left >&nbsp; </TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="8%" align=right><B>Q1</B> </TD>
    <TD  width="2%" align=left>&nbsp;</TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="8%" align=right><B>Q2</B> </TD>
    <TD  width="2%" align=left>&nbsp;</TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="8%" align=right><B>Q3</B> </TD>
    <TD  width="2%" align=left>&nbsp;</TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="8%" align=right><B>Q4</B> </TD>
    <TD  width="2%" align=left>&nbsp;</TD>
    <TD  width="1%" align=left bgcolor="#EEEEEE">&nbsp;</TD>
    <TD width="8%" align=right bgcolor="#EEEEEE"><B>TOTAL</B> </TD>
    <TD  width="2%" align=left bgcolor="#EEEEEE">&nbsp;</TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="8%" align=right><B>TOTAL</B> </TD>
    <TD  width="2%" align=left>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left >&nbsp; </TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="8%" align=right><B>2011</B> </TD>
    <TD  width="2%" align=left>&nbsp;</TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="8%" align=right><B>2011</B> </TD>
    <TD  width="2%" align=left>&nbsp;</TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="8%" align=right><B>2011</B> </TD>
    <TD  width="2%" align=left>&nbsp;</TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="8%" align=right><B>2011</B> </TD>
    <TD  width="2%" align=left>&nbsp;</TD>
    <TD  width="1%" align=left bgcolor="#EEEEEE">&nbsp;</TD>
    <TD width="8%" align=right bgcolor="#EEEEEE"><B>2011</B> </TD>
    <TD  width="2%" align=left bgcolor="#EEEEEE">&nbsp;</TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="8%" align=right><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"  width="1%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="8%"
      align=right><B>$000s</B> </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="2%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="1%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="8%"
      align=right><B>$000s</B> </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="2%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="1%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="8%"
      align=right><B>$000s</B> </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="2%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="1%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="8%"
      align=right><B>$000s</B> </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="2%"
    align=left>&nbsp;</TD>
    <TD  width="1%"
    align=left bgcolor="#EEEEEE" style="BORDER-BOTTOM: #000000 1px solid">&nbsp;</TD>
    <TD width="8%"
      align=right bgcolor="#EEEEEE" style="BORDER-BOTTOM: #000000 1px solid"><B>$000s</B> </TD>
    <TD  width="2%"
    align=left bgcolor="#EEEEEE" style="BORDER-BOTTOM: #000000 1px solid">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="1%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="8%"
      align=right><B>$000s</B> </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="2%"
    align=left>&nbsp;</TD></TR>
  <TR>
    <TD >&nbsp; </TD>
    <TD  width="1%" align=right>&nbsp;</TD>
    <TD width="8%" align=right>&nbsp; </TD>
    <TD  width="2%" align=right>&nbsp;</TD>
    <TD  width="1%" align=right>&nbsp;</TD>
    <TD width="8%" align=right>&nbsp; </TD>
    <TD  width="2%" align=right>&nbsp;</TD>
    <TD  width="1%" align=right>&nbsp;</TD>
    <TD width="8%" align=right>&nbsp; </TD>
    <TD  width="2%" align=right>&nbsp;</TD>
    <TD  width="1%" align=right>&nbsp;</TD>
    <TD width="8%" align=right>&nbsp; </TD>
    <TD  width="2%" align=right>&nbsp;</TD>
    <TD  width="1%" align=right bgcolor="#EEEEEE">&nbsp;</TD>
    <TD width="8%" align=right bgcolor="#EEEEEE">&nbsp; </TD>
    <TD  width="2%" align=right bgcolor="#EEEEEE">&nbsp;</TD>
    <TD  width="1%" align=right>&nbsp;</TD>
    <TD width="8%" align=right>&nbsp; </TD>
    <TD  width="2%" align=right>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left >Cost of inventory per income statement </TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="8%" align=right>22,547 </TD>
    <TD  width="2%" align=left>&nbsp;</TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="8%" align=right>20,602 </TD>
    <TD  width="2%" align=left>&nbsp;</TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="8%" align=right>11,532 </TD>
    <TD  width="2%" align=left>&nbsp;</TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="8%" align=right>12,013 </TD>
    <TD  width="2%" align=left>&nbsp;</TD>
    <TD  width="1%" align=left bgcolor="#EEEEEE">&nbsp;</TD>
    <TD width="8%" align=right bgcolor="#EEEEEE">66,694 </TD>
    <TD  width="2%" align=left bgcolor="#EEEEEE">&nbsp;</TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="8%" align=right>67,231 </TD>
    <TD  width="2%" align=left>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left >Movement in inventory </TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="8%" align=right>(1,745</TD>
    <TD  width="2%" align=left>) </TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="8%" align=right>2,399 </TD>
    <TD  width="2%" align=left>&nbsp;</TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="8%" align=right>14,892 </TD>
    <TD  width="2%" align=left>&nbsp;</TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="8%" align=right>14,357 </TD>
    <TD  width="2%" align=left>&nbsp;</TD>
    <TD  width="1%" align=left bgcolor="#EEEEEE">&nbsp;</TD>
    <TD width="8%" align=right bgcolor="#EEEEEE">29,903 </TD>
    <TD  width="2%" align=left bgcolor="#EEEEEE">&nbsp;</TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="8%" align=right>9,619 </TD>
    <TD  width="2%" align=left>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left
      >Other adjustments </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="1%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="8%" align=right>- </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="2%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="1%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="8%"
align=right>(152</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="2%"
    align=left>) </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="1%"
    align=right>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="8%" align=right>&nbsp;
    </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="2%"
    align=right>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="1%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="8%"
align=right>(156</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="2%"
    align=left>) </TD>
    <TD  width="1%"
    align=left bgcolor="#EEEEEE" style="BORDER-BOTTOM: #000000 1px solid">&nbsp;</TD>
    <TD width="8%"
align=right bgcolor="#EEEEEE" style="BORDER-BOTTOM: #000000 1px solid">(308</TD>
    <TD  width="2%"
    align=left bgcolor="#EEEEEE" style="BORDER-BOTTOM: #000000 1px solid">) </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="1%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="8%" align=right>- </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="2%"
    align=left>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left >Direct mining expenses </TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="8%" align=right>20,802 </TD>
    <TD  width="2%" align=left>&nbsp;</TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="8%" align=right>22,849 </TD>
    <TD  width="2%" align=left>&nbsp;</TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="8%" align=right>26,424 </TD>
    <TD  width="2%" align=left>&nbsp;</TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="8%" align=right>26,215 </TD>
    <TD  width="2%" align=left>&nbsp;</TD>
    <TD  width="1%" align=left bgcolor="#EEEEEE">&nbsp;</TD>
    <TD width="8%" align=right bgcolor="#EEEEEE">96,290 </TD>
    <TD  width="2%" align=left bgcolor="#EEEEEE">&nbsp;</TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="8%" align=right>76,850 </TD>
    <TD  width="2%" align=left>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left >Third party smelting, refining and
      transportation costs </TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="8%" align=right>15,568 </TD>
    <TD  width="2%" align=left>&nbsp;</TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="8%" align=right>13,964 </TD>
    <TD  width="2%" align=left>&nbsp;</TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="8%" align=right>8,620 </TD>
    <TD  width="2%" align=left>&nbsp;</TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="8%" align=right>4,614 </TD>
    <TD  width="2%" align=left>&nbsp;</TD>
    <TD  width="1%" align=left bgcolor="#EEEEEE">&nbsp;</TD>
    <TD width="8%" align=right bgcolor="#EEEEEE">42,766 </TD>
    <TD  width="2%" align=left bgcolor="#EEEEEE">&nbsp;</TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="8%" align=right>26,792 </TD>
    <TD  width="2%" align=left>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left >By-product credits </TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="8%" align=right>(2,250</TD>
    <TD  width="2%" align=left>) </TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="8%" align=right>(733</TD>
    <TD  width="2%" align=left>) </TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="8%" align=right>(1,645</TD>
    <TD  width="2%" align=left>) </TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="8%" align=right>(992</TD>
    <TD  width="2%" align=left>) </TD>
    <TD  width="1%" align=left bgcolor="#EEEEEE">&nbsp;</TD>
    <TD width="8%" align=right bgcolor="#EEEEEE">(5,620</TD>
    <TD  width="2%" align=left bgcolor="#EEEEEE">) </TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="8%" align=right>(204</TD>
    <TD  width="2%" align=left>) </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"  width="1%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="8%" align=right>5,306
    </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="2%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="1%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="8%" align=right>7,507
    </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="2%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="1%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="8%" align=right>204
</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="2%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="1%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="8%" align=right>1,193
    </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="2%"
    align=left>&nbsp;</TD>
    <TD  width="1%"
    align=left bgcolor="#EEEEEE" style="BORDER-BOTTOM: #000000 1px solid">&nbsp;</TD>
    <TD width="8%" align=right bgcolor="#EEEEEE" style="BORDER-BOTTOM: #000000 1px solid">14,210
    </TD>
    <TD  width="2%"
    align=left bgcolor="#EEEEEE" style="BORDER-BOTTOM: #000000 1px solid">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="1%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="8%" align=right>10,192
    </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="2%"
    align=left>&nbsp;</TD></TR>
  <TR>
    <TD >&nbsp; </TD>
    <TD  width="1%" align=right>&nbsp;</TD>
    <TD width="8%" align=right>&nbsp; </TD>
    <TD  width="2%" align=right>&nbsp;</TD>
    <TD  width="1%" align=right>&nbsp;</TD>
    <TD width="8%" align=right>&nbsp; </TD>
    <TD  width="2%" align=right>&nbsp;</TD>
    <TD  width="1%" align=right>&nbsp;</TD>
    <TD width="8%" align=right>&nbsp; </TD>
    <TD  width="2%" align=right>&nbsp;</TD>
    <TD  width="1%" align=right>&nbsp;</TD>
    <TD width="8%" align=right>&nbsp; </TD>
    <TD  width="2%" align=right>&nbsp;</TD>
    <TD  width="1%" align=right bgcolor="#EEEEEE">&nbsp;</TD>
    <TD width="8%" align=right bgcolor="#EEEEEE">&nbsp; </TD>
    <TD  width="2%" align=right bgcolor="#EEEEEE">&nbsp;</TD>
    <TD  width="1%" align=right>&nbsp;</TD>
    <TD width="8%" align=right>&nbsp; </TD>
    <TD  width="2%" align=right>&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"  width="1%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="8%" align=right>39,426
    </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="2%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="1%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="8%" align=right>43,587
    </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="2%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="1%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="8%" align=right>33,603
    </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="2%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="1%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="8%" align=right>31,029
    </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="2%"
    align=left>&nbsp;</TD>
    <TD  width="1%"
    align=left bgcolor="#EEEEEE" style="BORDER-BOTTOM: #000000 1px solid">&nbsp;</TD>
    <TD width="8%"
      align=right bgcolor="#EEEEEE" style="BORDER-BOTTOM: #000000 1px solid">147,645 </TD>
    <TD  width="2%"
    align=left bgcolor="#EEEEEE" style="BORDER-BOTTOM: #000000 1px solid">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="1%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="8%"
      align=right>113,630 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="2%"
    align=left>&nbsp;</TD></TR>
  <TR>
    <TD >&nbsp; </TD>
    <TD  width="1%" align=right>&nbsp;</TD>
    <TD width="8%" align=right>&nbsp; </TD>
    <TD  width="2%" align=right>&nbsp;</TD>
    <TD  width="1%" align=right>&nbsp;</TD>
    <TD width="8%" align=right>&nbsp; </TD>
    <TD  width="2%" align=right>&nbsp;</TD>
    <TD  width="1%" align=right>&nbsp;</TD>
    <TD width="8%" align=right>&nbsp; </TD>
    <TD  width="2%" align=right>&nbsp;</TD>
    <TD  width="1%" align=right>&nbsp;</TD>
    <TD width="8%" align=right>&nbsp; </TD>
    <TD  width="2%" align=right>&nbsp;</TD>
    <TD  width="1%" align=right bgcolor="#EEEEEE">&nbsp;</TD>
    <TD width="8%" align=right bgcolor="#EEEEEE">&nbsp; </TD>
    <TD  width="2%" align=right bgcolor="#EEEEEE">&nbsp;</TD>
    <TD  width="1%" align=right>&nbsp;</TD>
    <TD width="8%" align=right>&nbsp; </TD>
    <TD  width="2%" align=right>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left >Depletion, depreciation and amortization per
      income statement </TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="8%" align=right>5,794 </TD>
    <TD  width="2%" align=left>&nbsp;</TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="8%" align=right>5,235 </TD>
    <TD  width="2%" align=left>&nbsp;</TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="8%" align=right>2,410 </TD>
    <TD  width="2%" align=left>&nbsp;</TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="8%" align=right>3,107 </TD>
    <TD  width="2%" align=left>&nbsp;</TD>
    <TD  width="1%" align=left bgcolor="#EEEEEE">&nbsp;</TD>
    <TD width="8%" align=right bgcolor="#EEEEEE">16,546 </TD>
    <TD  width="2%" align=left bgcolor="#EEEEEE">&nbsp;</TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="8%" align=right>22,151 </TD>
    <TD  width="2%" align=left>&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"  width="1%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="8%" align=right>591
</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="2%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="1%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="8%" align=right>1,090
    </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="2%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="1%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="8%" align=right>4,031
    </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="2%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="1%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="8%" align=right>9,081
    </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="2%"
    align=left>&nbsp;</TD>
    <TD  width="1%"
    align=left bgcolor="#EEEEEE" style="BORDER-BOTTOM: #000000 1px solid">&nbsp;</TD>
    <TD width="8%" align=right bgcolor="#EEEEEE" style="BORDER-BOTTOM: #000000 1px solid">14,793
    </TD>
    <TD  width="2%"
    align=left bgcolor="#EEEEEE" style="BORDER-BOTTOM: #000000 1px solid">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="1%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="8%" align=right>3,745
    </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="2%"
    align=left>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left
      >Total production costs </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="1%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="8%" align=right>45,811
    </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="2%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="1%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="8%" align=right>49,912
    </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="2%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="1%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="8%" align=right>40,044
    </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="2%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="1%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="8%" align=right>43,217
    </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="2%"
    align=left>&nbsp;</TD>
    <TD  width="1%"
    align=left bgcolor="#EEEEEE" style="BORDER-BOTTOM: #000000 1px solid">&nbsp;</TD>
    <TD width="8%"
      align=right bgcolor="#EEEEEE" style="BORDER-BOTTOM: #000000 1px solid">178,984 </TD>
    <TD  width="2%"
    align=left bgcolor="#EEEEEE" style="BORDER-BOTTOM: #000000 1px solid">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="1%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="8%"
      align=right>139,526 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="2%"
    align=left>&nbsp;</TD></TR>
  <TR>
    <TD >&nbsp; </TD>
    <TD  width="1%" align=right>&nbsp;</TD>
    <TD width="8%" align=right>&nbsp; </TD>
    <TD  width="2%" align=right>&nbsp;</TD>
    <TD  width="1%" align=right>&nbsp;</TD>
    <TD width="8%" align=right>&nbsp; </TD>
    <TD  width="2%" align=right>&nbsp;</TD>
    <TD  width="1%" align=right>&nbsp;</TD>
    <TD width="8%" align=right>&nbsp; </TD>
    <TD  width="2%" align=right>&nbsp;</TD>
    <TD  width="1%" align=right>&nbsp;</TD>
    <TD width="8%" align=right>&nbsp; </TD>
    <TD  width="2%" align=right>&nbsp;</TD>
    <TD  width="1%" align=right bgcolor="#EEEEEE">&nbsp;</TD>
    <TD width="8%" align=right bgcolor="#EEEEEE">&nbsp; </TD>
    <TD  width="2%" align=right bgcolor="#EEEEEE">&nbsp;</TD>
    <TD  width="1%" align=right>&nbsp;</TD>
    <TD width="8%" align=right>&nbsp; </TD>
    <TD  width="2%" align=right>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left >Production (ounces) </TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="8%" align=right>1,697,294 </TD>
    <TD  width="2%" align=left>&nbsp;</TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="8%" align=right>1,975,616 </TD>
    <TD  width="2%" align=left>&nbsp;</TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="8%" align=right>1,631,281 </TD>
    <TD  width="2%" align=left>&nbsp;</TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="8%" align=right>1,751,398 </TD>
    <TD  width="2%" align=left>&nbsp;</TD>
    <TD  width="1%" align=left bgcolor="#EEEEEE">&nbsp;</TD>
    <TD width="8%" align=right bgcolor="#EEEEEE">7,055,589 </TD>
    <TD  width="2%" align=left bgcolor="#EEEEEE">&nbsp;</TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="8%" align=right>6,302,140 </TD>
    <TD  width="2%" align=left>&nbsp;</TD></TR>
  <TR>
    <TD >&nbsp; </TD>
    <TD  width="1%" align=right>&nbsp;</TD>
    <TD width="8%" align=right>&nbsp; </TD>
    <TD  width="2%" align=right>&nbsp;</TD>
    <TD  width="1%" align=right>&nbsp;</TD>
    <TD width="8%" align=right>&nbsp; </TD>
    <TD  width="2%" align=right>&nbsp;</TD>
    <TD  width="1%" align=right>&nbsp;</TD>
    <TD width="8%" align=right>&nbsp; </TD>
    <TD  width="2%" align=right>&nbsp;</TD>
    <TD  width="1%" align=right>&nbsp;</TD>
    <TD width="8%" align=right>&nbsp; </TD>
    <TD  width="2%" align=right>&nbsp;</TD>
    <TD  width="1%" align=right bgcolor="#EEEEEE">&nbsp;</TD>
    <TD width="8%" align=right bgcolor="#EEEEEE">&nbsp; </TD>
    <TD  width="2%" align=right bgcolor="#EEEEEE">&nbsp;</TD>
    <TD  width="1%" align=right>&nbsp;</TD>
    <TD width="8%" align=right>&nbsp; </TD>
    <TD  width="2%" align=right>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left >Direct mining expenses ($ per ounce) </TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="8%" align=right>12.26 </TD>
    <TD  width="2%" align=left>&nbsp;</TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="8%" align=right>11.57 </TD>
    <TD  width="2%" align=left>&nbsp;</TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="8%" align=right>16.20 </TD>
    <TD  width="2%" align=left>&nbsp;</TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="8%" align=right>14.97 </TD>
    <TD  width="2%" align=left>&nbsp;</TD>
    <TD  width="1%" align=left bgcolor="#EEEEEE">&nbsp;</TD>
    <TD width="8%" align=right bgcolor="#EEEEEE">13.65 </TD>
    <TD  width="2%" align=left bgcolor="#EEEEEE">&nbsp;</TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="8%" align=right>12.19 </TD>
    <TD  width="2%" align=left>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left >Total cash cost ($ per ounce) </TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="8%" align=right>23.23 </TD>
    <TD  width="2%" align=left>&nbsp;</TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="8%" align=right>22.06 </TD>
    <TD  width="2%" align=left>&nbsp;</TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="8%" align=right>20.60 </TD>
    <TD  width="2%" align=left>&nbsp;</TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="8%" align=right>17.72 </TD>
    <TD  width="2%" align=left>&nbsp;</TD>
    <TD  width="1%" align=left bgcolor="#EEEEEE">&nbsp;</TD>
    <TD width="8%" align=right bgcolor="#EEEEEE">20.93 </TD>
    <TD  width="2%" align=left bgcolor="#EEEEEE">&nbsp;</TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="8%" align=right>18.03 </TD>
    <TD  width="2%" align=left>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left >Total production cost ($ per ounce) </TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="8%" align=right>26.99 </TD>
    <TD  width="2%" align=left>&nbsp;</TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="8%" align=right>25.26 </TD>
    <TD  width="2%" align=left>&nbsp;</TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="8%" align=right>24.55 </TD>
    <TD  width="2%" align=left>&nbsp;</TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="8%" align=right>24.68 </TD>
    <TD  width="2%" align=left>&nbsp;</TD>
    <TD  width="1%" align=left bgcolor="#EEEEEE">&nbsp;</TD>
    <TD width="8%" align=right bgcolor="#EEEEEE">25.37 </TD>
    <TD  width="2%" align=left bgcolor="#EEEEEE">&nbsp;</TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="8%" align=right>22.14 </TD>
    <TD  width="2%" align=left>&nbsp;</TD></TR></TABLE>
<P align=right>23</P>
<HR style="PAGE-BREAK-AFTER: always" align=center color=black SIZE=5
width="100%" noShade>
<A name=page_24></A>
<P align=justify><B>Non-GAAP financial measures &#150; adjusted income (loss)</B><B>
</B></P>
<P align=justify>The Company has included the non-GAAP financial 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 align=center>
<TABLE
style="BORDER-COLOR: black; BORDER-COLLAPSE: collapse; FONT-SIZE: 10pt; "
border=0 cellSpacing=0 cellPadding=0 width="80%">

  <TR vAlign=top>
    <TD align=left >&nbsp; </TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="17%" align=right><B>2011</B> </TD>
    <TD  width="2%" align=left>&nbsp;</TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="17%" align=right><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"  width="1%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="17%"
      align=right><B>$000's</B> </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="2%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="1%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="17%"
      align=right><B>$000's</B> </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="2%"
    align=left>&nbsp;</TD>
  </TR>
  <TR>
    <TD >&nbsp; </TD>
    <TD  width="1%">&nbsp;</TD>
    <TD width="17%">&nbsp; </TD>
    <TD  width="2%">&nbsp;</TD>
    <TD  width="1%">&nbsp;</TD>
    <TD width="17%">&nbsp; </TD>
    <TD  width="2%">&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD bgColor=#e6efff align=left >Net income attributable to
      shareholders </TD>
    <TD bgColor=#e6efff  width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="17%" align=right>80,128 </TD>
    <TD bgColor=#e6efff  width="2%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff  width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="17%" align=right>338,455 </TD>
    <TD bgColor=#e6efff  width="2%" align=left>&nbsp;</TD></TR>
  <TR>
    <TD >&nbsp; </TD>
    <TD  width="1%">&nbsp;</TD>
    <TD width="17%">&nbsp; </TD>
    <TD  width="2%">&nbsp;</TD>
    <TD  width="1%">&nbsp;</TD>
    <TD width="17%">&nbsp; </TD>
    <TD  width="2%">&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD bgColor=#e6efff align=left >Adjusted for: </TD>
    <TD bgColor=#e6efff  width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="17%" align=left>&nbsp; </TD>
    <TD bgColor=#e6efff  width="2%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff  width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="17%" align=left>&nbsp; </TD>
    <TD bgColor=#e6efff  width="2%" align=left>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left >&nbsp;Gain on sale and write off of mineral
      properties </TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="17%" align=right>(54,480</TD>
    <TD  width="2%" align=left>) </TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="17%" align=right>(402,247</TD>
    <TD  width="2%" align=left>) </TD></TR>
  <TR vAlign=top>
    <TD bgColor=#e6efff align=left >&nbsp;Gain on partial
      disposal of associate </TD>
    <TD bgColor=#e6efff  width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="17%" align=right>(38,776</TD>
    <TD bgColor=#e6efff  width="2%" align=left>) </TD>
    <TD bgColor=#e6efff  width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="17%" align=right>- </TD>
    <TD bgColor=#e6efff  width="2%" align=left>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left >&nbsp;Unrealised (gain) loss on financial
      instruments at FVTPL </TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="17%" align=right>(20,182</TD>
    <TD  width="2%" align=left>) </TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="17%" align=right>1,109 </TD>
    <TD  width="2%" align=left>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD bgColor=#e6efff align=left >&nbsp;Gain on dilution of
      associate </TD>
    <TD bgColor=#e6efff  width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="17%" align=right>(1,803</TD>
    <TD bgColor=#e6efff  width="2%" align=left>) </TD>
    <TD bgColor=#e6efff  width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="17%" align=right>- </TD>
    <TD bgColor=#e6efff  width="2%" align=left>&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"  width="1%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="17%" align=right>6,078
    </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="2%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="1%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="17%" align=right>77
</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="2%"
    align=left>&nbsp;</TD></TR>
  <TR>
    <TD bgColor=#e6efff >&nbsp; </TD>
    <TD bgColor=#e6efff  width="1%">&nbsp;</TD>
    <TD bgColor=#e6efff width="17%">&nbsp; </TD>
    <TD bgColor=#e6efff  width="2%">&nbsp;</TD>
    <TD bgColor=#e6efff  width="1%">&nbsp;</TD>
    <TD bgColor=#e6efff width="17%">&nbsp; </TD>
    <TD bgColor=#e6efff  width="2%">&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"  width="1%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="17%"
      align=right>(29,034</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="2%"
    align=left>) </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="1%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="17%"
      align=right>(62,606</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="2%"
    align=left>) </TD></TR>
  <TR>
    <TD bgColor=#e6efff >&nbsp; </TD>
    <TD bgColor=#e6efff  width="1%">&nbsp;</TD>
    <TD bgColor=#e6efff width="17%">&nbsp; </TD>
    <TD bgColor=#e6efff  width="2%">&nbsp;</TD>
    <TD bgColor=#e6efff  width="1%">&nbsp;</TD>
    <TD bgColor=#e6efff width="17%">&nbsp; </TD>
    <TD bgColor=#e6efff  width="2%">&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"  width="1%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="17%"
      align=right>80,324 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="2%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="1%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="17%"
      align=right>77,972 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="2%"
    align=left>&nbsp;</TD></TR>
  <TR>
    <TD bgColor=#e6efff >&nbsp; </TD>
    <TD bgColor=#e6efff  width="1%">&nbsp;</TD>
    <TD bgColor=#e6efff width="17%">&nbsp; </TD>
    <TD bgColor=#e6efff  width="2%">&nbsp;</TD>
    <TD bgColor=#e6efff  width="1%">&nbsp;</TD>
    <TD bgColor=#e6efff width="17%">&nbsp; </TD>
    <TD bgColor=#e6efff  width="2%">&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=left
      >Adjusted basic loss per share ($) </TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid"  width="1%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" width="17%"
    align=right>(0.36</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid"  width="2%"
    align=left>) </TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid"  width="1%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" width="17%"
    align=right>(0.80</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid"  width="2%"
    align=left>) </TD></TR></TABLE></DIV>
<P align=justify><B>15.</B><B>&nbsp;&nbsp; </B><B>CRITICAL ACCOUNTING POLICIES
AND ESTIMATES </B></P>
<P align=justify><B>Basis of preparation and accounting policies </B></P>
<P align=justify>The Company has prepared its consolidated financial statements
in accordance with IFRS as issued by the International Accounting Standards
Board (&#147;IASB&#148;). IFRS represents standards and interpretations approved by the
IASB and are comprised of IFRS, International Accounting Standards (&#147;IAS&#146;s&#148;),
and interpretations issued by the IFRS Interpretations Committee (&#147;IFRIC&#146;s&#148;) and
the former Standing Interpretations Committee (&#147;SIC&#146;s&#148;). The Company adopted
IFRS in accordance with IFRS 1 &#150; First-time Adoption of International Financial
Reporting Standards (&#147;IFRS 1&#148;) with a transition date of January 1, 2010. The
consolidated financial statements have been prepared in accordance with IFRS
standards and interpretations effective as of December 31, 2011. Note 2 to the
consolidated financial statements for the year ended December 31, 2011 provides
detailed of significant accounting policies and accounting policy decisions as a
result of IFRS 1 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=right>24</P>
<HR style="PAGE-BREAK-AFTER: always" align=center color=black SIZE=5
width="100%" noShade>
<A name=page_25></A>
<P align=justify>There were no changes to the accounting policies applied by the
Company to each of the 2011 quarterly unaudited interim consolidated financial
statements, to those applied to the consolidated financial statements for the
year ended December 31, 2011. </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><I><U>Review of asset carrying values and impairment
assessment</U></I> 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 recognized
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><I><U>Determination of mineral reserve and mineral resource
estimates</U></I><B> </B>The Company estimates its mineral 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 mineral 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 amortization
rates, asset carrying values and provisions for close down and restoration
costs. </P>
<P align=justify>During the year ended December 31, 2011 the Company presented
an updated mineral reserve and mineral resource at its Pirquitas mine in
Argentina, this will increase depletion and depreciation charges in future
periods by reducing the life of mine and expected tonnes of production. </P>
<P align=justify><I><U>Determination of useful lives of property, plant and
equipment </U></I>The Company uses the units of production method to depreciate
mineral property expenditure, whereby depreciation is calculated using the
tonnage of ore extracted from the mine in the period as a percentage of the
total tonnage of ore expected to be extracted in current and future periods
based on proven and probable reserves. As noted above there are numerous
uncertainties inherent in estimating ore reserves which are fundamental to this
calculation. </P>
<P align=justify><I><U>Valuation of inventory</U></I><B> </B>Stockpiled ore, work in
  process and finished goods are valued at the lower of cost and net realizable
  value (&#147;NRV&#148;). NRV is calculated as the estimated price at the time of sale
  based on prevailing and future metal prices less estimated future production
  costs to convert the inventory into saleable form and all associated selling
  costs. The determination of both estimated future sales price and production costs requires significant assumptions that may
significantly impact the stated value of the Company&#146;s inventory. </P>
<P align=right>25</P>
<HR style="PAGE-BREAK-AFTER: always" align=center color=black SIZE=5
width="100%" noShade>
<A name=page_26></A>
<P align=justify><I><U>Close down and restoration provisions</U></I> Close down
and restoration costs are a normal consequence of mining, and the majority of
close down and restoration expenditures are incurred near the end of the life of
the mine. The Company&#146;s accounting policy requires the recognition of such
provisions when the obligation occurs. The initial provisions are periodically
reviewed during the life of the operation to reflect known developments, e.g.
updated cost estimates and revisions to the estimated lives of operations.
Although the ultimate cost to be incurred is uncertain, the Company estimates
its costs based on studies using current restoration standards and techniques.
The initial closure provisions together with changes, other than those arising
from the unwind of the discount applied in establishing the net present value of
the provision, are capitalized within property plant and equipment and
depreciated over the lives of the assets to which they relate. </P>
<P align=justify>The ultimate magnitude of these costs is uncertain, and cost
estimates can vary in response to many factors including changes to the relevant
legal requirements, the emergence of new restoration techniques or experience on
other mine sites. The expected timing of expenditure can also change, for
example in response to changes in ore reserves or production rates or economic
conditions. As a result there could be significant adjustments to the provision
for close down and restoration, which would affect future financial results.
</P>
<P align=justify>During the fourth quarter of the year ended December 31, 2011,
the Company recorded a change in its estimate for close down and restoration
from the preliminary findings of a mine closure plan for its Pirquitas mine in
Argentina, that is scheduled for completion in 2012. The estimate increased by
$33.8 million, and this was a prospective change that had no impact on the
Consolidated Statement of Income for the year ended December 31, 2011. There is
considerable measurement uncertainty with a provision of this nature from the
timing of cash flows, inflationary environment and impact of exchange rates. The
final obligation could vary materially from that presented which would impact
future results. </P>
<P align=justify><I><U>Determination of the fair value of share-based
compensation</U></I><B> </B>The fair value of stock options and other forms of
share-based compensation granted is computed to determine the relevant charge to
the income statement, and liability if applicable. In order to compute this fair
value the Company uses different option pricing models that inherently require
management to make various estimates and assumptions in relation to the expected
life of the award, expected volatility, risk-free rate and forfeiture rates.
</P>
<P align=justify><I><U>Deferred tax assets and liabilities</U></I><B> </B>The
determination of the Company&#146;s tax expense for the period and deferred tax
assets and liabilities involves significant estimation and judgment by
management. In determining these amounts, management interprets tax legislation
in a variety of jurisdictions and makes estimates of the expected timing of the
reversal of deferred tax assets and liabilities. Management also makes estimates
of future earnings which affect the extent to which potential future tax
benefits may be used. The Company is subject to assessments by various taxation
authorities, which may interpret legislation differently. These differences may
affect the final amount or the timing of the payment of taxes. The Company
provides for such differences, where known, based on management&#146;s best estimate
of the probable outcome of these matters. </P>
<P align=justify>The Company has an unrecognised deferred tax asset in respect
of potential foreign tax credits that may be used to offset taxes paid in
Argentina. These have not been recognised due to measurement uncertainty over
the extent and timing of any potential benefit. If recognized this will create a
recovery of income taxe expense in that period. </P>
<P align=right>26</P>
<HR style="PAGE-BREAK-AFTER: always" align=center color=black SIZE=5
width="100%" noShade>
<A name=page_27></A>
<P align=justify><I><U>Functional currency</U></I><B> </B>The determination of a
subsidiary&#146;s functional currency often requires significant judgement where the
primary economic environment in which they operate may not be clear. This can
have a significant impact on the consolidated results of the Company based on
the foreign currency translation method required. </P>
<P align=justify><I><U>Valuation of financial instruments</U></I><I> </I>The
Company is required to determine the valuation of its convertible debenture
receivable, convertible notes (at inception), and the embedded derivatives
within sales contracts. The convertible debenture and notes required discounted
cash flow analyses and option pricing models that involve various estimates and
assumptions, while the valuation of the revenue derivatives requires estimates
of settlement dates and forward commodity prices. </P>
<P align=justify><B>Transition to International Financial Reporting Standards
</B></P>
<P align=justify>On January 1, 2011 the Canadian Accounting Standards Board
replaced Canadian GAAP with IFRS for publically accountable enterprises, with a
transition date of January 1, 2010, due to requirement to present comparative
financial information. IFRS represents standards and interpretations approved by
the IASB and are comprised of IFRS&#146;s, IAS&#146;s, IFRIC&#146;s and the former SIC&#146;s. </P>
<P align=justify>Notes 2 and 26 to the consolidated financial statements for the
year ended December 31, 2011 provide details of key Canadian GAAP to IFRS
differences, accounting policy decisions and IFRS 1, 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>The Company completed its conversion from Canadian GAAP to IFRS
through a transition plan that involved scoping and planning, an assessment of
differences, implementation and post-implementation. The post-implementation
phase involves the maintenance of IFRS-compliant financial data and processes
for 2011 and the future.</P>
<P align=justify>The conversion from Canadian GAAP to IFRS has resulted in
changes to the Company&#146;s accounting policies, financial reporting processes,
incremental controls relating to the conversion process and additional training
requirements. The conversion did not have any impact on the Company&#146;s key
internal performance ratios or compensation plans. </P>
<P align=justify>The following outlines the impact of transition to IFRS on
shareholders&#146; equity and total comprehensive income. </P>
<P align=justify><I><U>Shareholders&#146; Equity Impact</U></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 $98.0 million as at January 1, 2010. A full
reconciliation of this adjustment is included in the consolidated financial
statements for the year ended December 31, 2011. 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=right>27</P>
<HR style="PAGE-BREAK-AFTER: always" align=center color=black SIZE=5
width="100%" noShade>
<A name=page_28></A>
<P align=justify>The following is a summary of the adjustments to shareholders&#146;
equity as at December 31, 2010 and January 1, 2010 under IFRS (all of which are
outlined in the notes to the consolidated financial statements): </P>
<DIV align=center>
<TABLE
style="BORDER-COLOR: black; BORDER-COLLAPSE: collapse; FONT-SIZE: 10pt; "
border=0 cellSpacing=0 cellPadding=0 width="80%">

  <TR vAlign=top>
    <TD align=left >&nbsp; </TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="17%" 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="17%" align=right nowrap><B>January 1,</B> </TD>
    <TD  width="2%" align=left>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left >&nbsp; </TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="17%" 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="17%" 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"  width="1%"
    align=left>&nbsp;</TD>
    <TD width="17%"
      align=right nowrap style="BORDER-BOTTOM: #000000 1px solid"><B>$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="17%"
      align=right nowrap style="BORDER-BOTTOM: #000000 1px solid"><B>$000s</B> </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="2%"
    align=left>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD bgColor=#e6efff align=left >Total equity reported under
      Canadian GAAP </TD>
    <TD bgColor=#e6efff  width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="17%" align=right>1,031,772 </TD>
    <TD bgColor=#e6efff  width="2%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff  width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="17%" align=right>537,186 </TD>
    <TD bgColor=#e6efff  width="2%" align=left>&nbsp;</TD></TR>
  <TR>
    <TD >&nbsp; </TD>
    <TD  width="1%">&nbsp;</TD>
    <TD width="17%">&nbsp; </TD>
    <TD  width="2%">&nbsp;</TD>
    <TD  width="1%">&nbsp;</TD>
    <TD width="17%">&nbsp; </TD>
    <TD  width="2%">&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD bgColor=#e6efff align=left >Increase (decrease) net of
      tax in respect of: </TD>
    <TD bgColor=#e6efff  width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="17%" align=left>&nbsp; </TD>
    <TD bgColor=#e6efff  width="2%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff  width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="17%" align=left>&nbsp; </TD>
    <TD bgColor=#e6efff  width="2%" align=left>&nbsp;</TD></TR>
  <TR>
    <TD >&nbsp; </TD>
    <TD  width="1%">&nbsp;</TD>
    <TD width="17%">&nbsp; </TD>
    <TD  width="2%">&nbsp;</TD>
    <TD  width="1%">&nbsp;</TD>
    <TD width="17%">&nbsp; </TD>
    <TD  width="2%">&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD bgColor=#e6efff align=left >Valuation of Pirquitas mine
    </TD>
    <TD bgColor=#e6efff  width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="17%" align=right>(79,842</TD>
    <TD bgColor=#e6efff  width="2%" align=left>) </TD>
    <TD bgColor=#e6efff  width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="17%" align=right>(84,018</TD>
    <TD bgColor=#e6efff  width="2%" align=left>) </TD></TR>
  <TR vAlign=top>
    <TD align=left >Close down and restoration provision </TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="17%" align=right>(76</TD>
    <TD  width="2%" align=left>) </TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="17%" align=right>- </TD>
    <TD  width="2%" align=left>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD bgColor=#e6efff align=left >Share-based compensation </TD>
    <TD bgColor=#e6efff  width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="17%" align=right>(52</TD>
    <TD bgColor=#e6efff  width="2%" align=left>) </TD>
    <TD bgColor=#e6efff  width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="17%" align=right>- </TD>
    <TD bgColor=#e6efff  width="2%" align=left>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left >Functional currency </TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="17%" align=right>4,654 </TD>
    <TD  width="2%" align=left>&nbsp;</TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="17%" align=right>5,030 </TD>
    <TD  width="2%" align=left>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD bgColor=#e6efff align=left >Convertible notes </TD>
    <TD bgColor=#e6efff  width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="17%" align=right>(18,859</TD>
    <TD bgColor=#e6efff  width="2%" align=left>) </TD>
    <TD bgColor=#e6efff  width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="17%" align=right>(17,086</TD>
    <TD bgColor=#e6efff  width="2%" align=left>) </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"  width="1%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="17%"
    align=right>(5,737</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="2%"
    align=left>) </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="1%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="17%"
    align=right>(1,949</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="2%"
    align=left>) </TD></TR>
  <TR>
    <TD bgColor=#e6efff >&nbsp; </TD>
    <TD bgColor=#e6efff  width="1%">&nbsp;</TD>
    <TD bgColor=#e6efff width="17%">&nbsp; </TD>
    <TD bgColor=#e6efff  width="2%">&nbsp;</TD>
    <TD bgColor=#e6efff  width="1%">&nbsp;</TD>
    <TD bgColor=#e6efff width="17%">&nbsp; </TD>
    <TD bgColor=#e6efff  width="2%">&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 2px solid" align=left
      >Total equity reported under IFRS </TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid"  width="1%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" width="17%"
      align=right>931,860 </TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid"  width="2%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid"  width="1%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" width="17%"
      align=right>439,163 </TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid"  width="2%"
    align=left>&nbsp;</TD></TR></TABLE></DIV>
<P align=justify><I><U>Comprehensive Income Impact</U></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 a decrease in
total comprehensive income of $6.0 million for the year ended December 31, 2010.
</P>
<P align=justify>The following is a summary of the adjustments to comprehensive
income for the year ended December 31, 2010 under IFRS (all of which are
outlined in the notes to the consolidated financial statements), expressed in
thousands of USD: </P>
<DIV align=center>
<TABLE
style="BORDER-COLOR: black; BORDER-COLLAPSE: collapse; FONT-SIZE: 10pt; "
border=0 cellSpacing=0 cellPadding=0 width="80%">

  <TR vAlign=top>
    <TD align=left>&nbsp; </TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="17%" align=right ><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"  width="1%"
    align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="17%" align=right
    ><B>$000s</B> </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid"  width="2%"
    align=left>&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD bgColor=#e6efff align=left>Total comprehensive income as reported
      under Canadian GAAP </TD>
    <TD bgColor=#e6efff  width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="17%" align=right >359,501 </TD>
    <TD bgColor=#e6efff  width="2%" align=left>&nbsp;</TD></TR>
  <TR>
    <TD>&nbsp; </TD>
    <TD  width="1%">&nbsp;</TD>
    <TD width="17%" >&nbsp; </TD>
    <TD  width="2%">&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD bgColor=#e6efff align=left>Increase (decrease) net of tax in respect
      of: </TD>
    <TD bgColor=#e6efff  width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="17%" align=left >&nbsp; </TD>
    <TD bgColor=#e6efff  width="2%" align=left>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD align=left>Valuation of Pirquitas mine </TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="17%" align=right >4,176 </TD>
    <TD  width="2%" align=left>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD bgColor=#e6efff align=left>Close down and restoration provision </TD>
    <TD bgColor=#e6efff  width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="17%" align=right >(76</TD>
    <TD bgColor=#e6efff  width="2%" align=left>) </TD></TR>
  <TR vAlign=top>
    <TD align=left>Share-based compensation </TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="17%" align=right >991 </TD>
    <TD  width="2%" align=left>&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD bgColor=#e6efff align=left>Functional currency </TD>
    <TD bgColor=#e6efff  width="1%" align=left>&nbsp;</TD>
    <TD bgColor=#e6efff width="17%" align=right >(373</TD>
    <TD bgColor=#e6efff  width="2%" align=left>) </TD></TR>
  <TR vAlign=top>
    <TD align=left>Convertible notes </TD>
    <TD  width="1%" align=left>&nbsp;</TD>
    <TD width="17%" align=right >(1,773</TD>
    <TD  width="2%" align=left>) </TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff
      align=left>Deferred tax liabilities </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff
    width="1%" align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff width="17%"
    align=right >(8,897</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" bgColor=#e6efff
    width="2%" align=left>) </TD></TR>
  <TR>
    <TD>&nbsp; </TD>
    <TD  width="1%">&nbsp;</TD>
    <TD width="17%" >&nbsp; </TD>
    <TD  width="2%">&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 2px solid" bgColor=#e6efff
      align=left>Total comprehensive income as reported under IFRS </TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" bgColor=#e6efff
    width="1%" align=left>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" bgColor=#e6efff width="17%"
    align=right >353,549 </TD>
    <TD style="BORDER-BOTTOM: #000000 2px solid" bgColor=#e6efff
    width="2%" align=left>&nbsp;</TD></TR></TABLE></DIV>
<P align=justify>The Company revised its previously published transition
adjustment for deferred tax liabilities in relation to the tax basis of certain
Argentine assets relating to foreign exchange and other adjustments. The impact
was an increase in deferred tax liabilities of $0.7 million as at January 1,
2010 and a further increase of $5.5 million as at December 31, 2010 with a corresponding
increase in the tax expense for the year. These adjustments are not material to
the previously presented financial information. </P>
<P align=right>28</P>
<HR style="PAGE-BREAK-AFTER: always" align=center color=black SIZE=5
width="100%" noShade>
<A name=page_29></A>
<P align=justify><I><U>Cash Flow Impact</U></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><U>Control Activities</U></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 has
updated the design, implementation and documentation of the internal controls
over accounting process 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><U>Business Activities and Key Performance
Measures</U></I><I> </I></P>
<P align=justify>The Company has reviewed the impacts of the IFRS transition
project on its key performance measures and compensation arrangements, in
particular those that are calculated based on indicators in the financial
statements, and determined that there was no significant impact. </P>
<P align=justify><I><U>Information Technology and Systems</U></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=justify><I><U>Post-Implementation</U></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 IFRICs in relation
to consolidation, financial instruments, leases, revenue recognition and
stripping costs in the production phase of a surface mine. The IASB 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.<B> </B></P>
<P align=justify><B>16.</B><B>&nbsp;&nbsp; </B><B>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=right>29</P>
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width="100%" noShade>
<A name=page_30></A>
<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 align=justify>On May 12, 2011 the IASB issued the following statements: </P>
<TABLE
style="BORDER-COLOR: black; BORDER-COLLAPSE: collapse; FONT-SIZE: 10pt; "
border=0 cellSpacing=0 cellPadding=0 width="100%" BCLLIST>

  <TR>
    <TD width="5%"  >&nbsp;</TD>
    <TD vAlign=top width="5%" align=left>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 width="5%" align=left>&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
  <TR>
    <TD width="5%" >&nbsp;</TD>
    <TD vAlign=top width="5%" align=left>ii. </TD>
    <TD>
      <P align=justify>IFRS 11, <I>Joint Arrangements </I>(&#147;IFRS 11&#148;) ( see
      further details below)</P></TD></TR>
  <TR>
    <TD width="5%" >&nbsp;</TD>
    <TD width="5%" align=left>&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
  <TR>
    <TD width="5%" >&nbsp;</TD>
    <TD vAlign=top width="5%" align=left>iii. </TD>
    <TD>
      <P align=justify>IFRS 12, <I>Disclosures of Interests with Other Entities
      </I>(&#147;IFRS 12&#148;) (see further details below)</P></TD></TR>
  <TR>
    <TD width="5%" >&nbsp;</TD>
    <TD width="5%" align=left>&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
  <TR>
    <TD width="5%" >&nbsp;</TD>
    <TD vAlign=top width="5%" align=left>iv. </TD>
    <TD>
      <P align=justify>IAS 27, <I>Separate Financial Statements </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 width="5%" align=left>&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
  <TR>
    <TD width="5%" >&nbsp;</TD>
    <TD vAlign=top width="5%" align=left>v. </TD>
    <TD>
      <P align=justify>IAS 28, <I>Investments in Associates </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 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; BORDER-COLLAPSE: collapse; FONT-SIZE: 10pt; "
border=0 cellSpacing=0 cellPadding=0 width="100%" BCLLIST>

  <TR>
    <TD width="5%"  >&nbsp;</TD>
    <TD vAlign=top width="5%" align=left>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>
  <TR>
    <TD width="5%" >&nbsp;</TD>
    <TD width="5%" align=left>&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
  <TR>
    <TD width="5%" >&nbsp;</TD>
    <TD vAlign=top width="5%" align=left>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%" align=left>&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
  <TR>
    <TD width="5%" >&nbsp;</TD>
    <TD vAlign=top width="5%" align=left>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=right>30</P>
<HR style="PAGE-BREAK-AFTER: always" align=center color=black SIZE=5
width="100%" noShade>
<A name=page_31></A>
<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 Surface 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.<B> </B></P>
<P align=justify><B>17.&nbsp; </B><B>&nbsp;</B><B>INTERNAL CONTROL OVER
FINANCIAL REPORTING AND DISCLOSURE CONTROLS AND PROCEDURES </B></P>
<P align=justify>Management is responsible for establishing and maintaining
adequate internal control over financial reporting and disclosure controls and
procedures. Any system of internal control over financial reporting, no matter
how well designed, has inherent limitations. Therefore, even those systems
determined to be effective can provide only reasonable assurance with respect to
financial statement preparation and presentation.</P>
<P align=justify><B>Management&#146;s Annual Report on Internal Control over
Financial Reporting and Disclosure Controls and Procedures.</B> </P>
<P align=justify>The following report is provided by management in respect of
internal control over financial reporting and disclosure controls and procedures
(as defined in the rules of the CSA and the SEC):</P>
<P style="MARGIN-LEFT: 5%" align=justify>(1) Management is responsible for
establishing and maintaining adequate internal control over financial reporting
and disclosure controls and procedures. All internal control systems, no matter
how well designed, have inherent limitations and may not prevent or detect
misstatements. Therefore, even those systems determined to be effective can
provide only reasonable assurance with respect to financial statement preparation and presentation.
Also, projections of any evaluation of effectiveness to future periods are
subject to the risk that controls may become inadequate because of changes in
conditions, or that the degree of compliance with the policies or procedures may
deteriorate.</P>
<P align=right>31</P>
<HR style="PAGE-BREAK-AFTER: always" align=center color=black SIZE=5
width="100%" noShade>
<A name=page_32></A>
<P style="MARGIN-LEFT: 5%" align=justify>(2) Our management has used the
Committee of Sponsoring Organizations of the Treadway Commission (COSO)
framework to evaluate the effectiveness of our internal control over financial
reporting.</P>
<P style="MARGIN-LEFT: 5%" align=justify>(3) As at December 31, 2011, management
assessed the effectiveness of our internal control over financial reporting and
disclosure controls and procedures and concluded that such internal control over
financial reporting and disclosure controls and procedures were effective and
that there were no material weaknesses in our internal control over financial
reporting.</P>
<P align=justify><B>Changes in Internal Control over Financial Reporting
</B></P>
<P align=justify>On August 31, 2011 the former Chief Financial Officer left the
Company and appropriate actions were implemented to ensure that this would not
have a material effect on internal control over financial reporting, there were
also certain changes made following the Company&#146;s adoption of IFRS as discussed
above. There have been no other changes in our internal control over financial
reporting during the year ended December 31, 2011, that have materially
affected, or are reasonably likely to affect our internal control over financial
reporting. </P>
<P align=justify><B>18.</B><B>&nbsp;&nbsp; </B><B>CAUTIONARY NOTE REGARDING
FORWARD-LOOKING STATEMENTS </B></P>
<P align=justify>The MD&amp;A contains &#147;forward-looking statements&#148; within the
meaning of the United States <I>Private Securities Litigation Reform Act </I>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 the Company&#146;s
operations in future periods, the Company&#146;s planned exploration activities, the
adequacy of the Company&#146;s 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 domestic and
foreign laws, regulations and government policies and actions affecting the
Company&#146;s operations or potential future operations; future successful
development of the Pitarrilla and San Luis projects and other exploration and
development projects; the sufficiency of the Company&#146;s current working capital,
anticipated operating cash flow or the Company&#146;s 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
the Company&#146;s 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; 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=right>32</P>
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<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 production at the Company&#146;s mineral exploration and development
properties; risks and uncertainties associated with developing and exploring new
mines including start-up delays; risks and hazards associated with the business
of mineral exploration, development and mining (including operating in foreign jurisdictions,
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 the Company&#146;s mineral deposits; risks related to the Company&#146;s
ability to obtain adequate financing for the Company&#146;s 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; risks related to obtaining long-term sales contracts or completing
spot sales for the Company&#146;s products; the Company&#146;s 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 the Company&#146;s covenants given with
respect to the Company&#146;s 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 the Company&#146;s has 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 the Company&#146;s
properties; uncertainties related to title to the Company&#146;s mineral properties
and the surface rights thereon, including the Company&#146;s ability to acquire, or
economically acquire, the surface rights to certain of the Company&#146;s exploration
and development projects; the Company&#146;s 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 the
Company&#146;s directors&#146; and officers&#146; involvement with other natural resource
companies; the Company&#146;s ability to attract and retain qualified personnel and
management to grow the Company&#146;s business; risks related to estimates of future
income tax assets and liabilities; risks related to claims and legal
proceedings; the Company&#146;s ability to maintain adequate internal control over
financial reporting; the future value of Pretium&#146;s shares and the Company&#146;s
ability to monetize the full value of the Company&#146;s interest in Pretium; 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 the Company&#146;s forward-looking statements. Forward-looking statements are
statements about the future and are inherently uncertain, and the Company&#146;s
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;Other Risks and Uncertainties&#148;.
The Company&#146;s forward-looking statements are based on the beliefs, expectations
and opinions of management on the date the statements are made, and the Company
does not assume any obligation to update forward-looking statements if
circumstances or management&#146;s beliefs, expectations or opinions should change,
other than as required by applicable law. For the reasons set forth above, one
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. The Company&#146;s advises 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>33</P>
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<DOCUMENT>
<TYPE>EX-99.3
<SEQUENCE>4
<FILENAME>exhibit99-3.htm
<DESCRIPTION>FORM 13-502F1
<TEXT>


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<P align=center><B><FONT size=3>FORM 13-502F1 </FONT></B><BR><B><FONT
size=3>CLASS 1 REPORTING ISSUERS &#150; PARTICIPATION FEE </FONT></B></P>
<P align=center>&nbsp;</P>
<P align=justify><B>Reporting Issuer Name: </B><B><U>Silver Standard Resources
Inc. </U></B></P>
<P align=justify><B>End date of last completed fiscal year: December 31,
2011</B></P>
<TABLE
style="BORDER-COLOR: black; BORDER-COLLAPSE: collapse; FONT-SIZE: 10pt; "
border=0 cellSpacing=0 cellPadding=0 width="100%">
  <TR vAlign=top>
    <TD align=left><U>Market value of listed or quoted securities: </U></TD>
    <TD vAlign=bottom width="15%" align=right>&nbsp; </TD>
    <TD vAlign=bottom width="15%" align=right>&nbsp; </TD>
  </TR>
  <TR vAlign=top>
    <TD align=left>Total number of securities of a class or series outstanding
      as at the end of the issuer&#146;s last completed fiscal year </TD>
    <TD vAlign=bottom width="15%" align=right>&nbsp;</TD>
    <TD vAlign=bottom width="15%" align=right><u>80,693,432 (i)</u></TD>
  </TR>
  <TR>
    <TD></TD>
    <TD vAlign=bottom width="15%" align=right></TD>
    <TD vAlign=bottom width="15%" align=right></TD>
  </TR>
  <TR vAlign=top>
    <TD align=left>&nbsp;</TD>
    <TD vAlign=bottom align=right>&nbsp;</TD>
    <TD vAlign=bottom align=right>&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left>Simple average of the closing price of that class or series
      as of the last trading day of each month in the last completed fiscal year
      (See clauses 2.7(a)(ii)(A) and (B) of the Rule) </TD>
    <TD vAlign=bottom width="15%" align=right>&nbsp;</TD>
    <TD vAlign=bottom width="15%" align=right><u>24.07 (ii)</u> </TD>
  </TR>
  <TR>
    <TD>&nbsp; </TD>
    <TD vAlign=bottom width="15%" align=right>&nbsp; </TD>
    <TD vAlign=bottom width="15%" align=right>&nbsp; </TD>
  </TR>
  <TR>
    <TD>&nbsp; </TD>
    <TD vAlign=bottom width="15%" align=right>&nbsp; </TD>
    <TD vAlign=bottom width="15%" align=right>&nbsp; </TD>
  </TR>
  <TR vAlign=top>
    <TD align=left>Market value of class or series </TD>
    <TD vAlign=bottom width="15%" align=right>(i) X (ii) = </TD>
    <TD vAlign=bottom width="15%" align=right><U>1,942,290,908.24 (A) </U></TD>
  </TR>
  <TR>
    <TD></TD>
    <TD vAlign=bottom width="15%" align=right></TD>
    <TD vAlign=bottom width="15%" align=right></TD>
  </TR>
  <TR vAlign=top>
    <TD align=left>(Repeat the above calculation for each other class or series
      of securities of the reporting issuer that was listed or quoted on a marketplace
      in Canada or the United States of America at the end of the last completed
      fiscal year) </TD>
    <TD vAlign=bottom width="15%" align=right></TD>
    <TD vAlign=bottom width="15%"
      align=right><U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
      (B) </U></TD>
  </TR>
  <TR>
    <TD></TD>
    <TD vAlign=bottom width="15%" align=right></TD>
    <TD vAlign=bottom width="15%" align=right></TD>
  </TR>
  <TR vAlign=top>
    <TD align=left>&nbsp;</TD>
    <TD vAlign=bottom align=right>&nbsp;</TD>
    <TD vAlign=bottom align=right>&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left><U>Market value of other securities at end of the last completed
      fiscal year: </U></TD>
    <TD vAlign=bottom width="15%" align=right>&nbsp; </TD>
    <TD vAlign=bottom width="15%" align=right>&nbsp; </TD>
  </TR>
  <TR vAlign=top>
    <TD align=left>(See paragraph 2.7(b) of the Rule) </TD>
    <TD vAlign=bottom width="15%" align=right>&nbsp; </TD>
    <TD vAlign=bottom width="15%" align=right>&nbsp; </TD>
  </TR>
  <TR vAlign=top>
    <TD align=left>&nbsp;&nbsp;&nbsp;&nbsp; (Provide details of how value was
      determined) </TD>
    <TD vAlign=bottom width="15%" align=right>&nbsp; </TD>
    <TD vAlign=bottom width="15%"
      align=right><U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
      &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (C) </U></TD>
  </TR>
  <TR>
    <TD></TD>
    <TD vAlign=bottom width="15%" align=right></TD>
    <TD vAlign=bottom width="15%" align=right></TD>
  </TR>
  <TR vAlign=top>
    <TD align=left>&nbsp;</TD>
    <TD vAlign=bottom align=right>&nbsp;</TD>
    <TD vAlign=bottom
      align=right>&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left>(Repeat for each other class or series of securities to which
      paragraph 2.7(b) of the Rule applies) </TD>
    <TD vAlign=bottom width="15%" align=right>&nbsp; </TD>
    <TD vAlign=bottom width="15%"
      align=right><U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
      (D) </U></TD>
  </TR>
  <TR>
    <TD>&nbsp; </TD>
    <TD vAlign=bottom width="15%" align=right>&nbsp; </TD>
    <TD vAlign=bottom width="15%" align=right>&nbsp; </TD>
  </TR>
  <TR vAlign=top>
    <TD align=left><B>Capitalization for the last completed fiscal year </B></TD>
    <TD vAlign=bottom width="15%" align=right>&nbsp; </TD>
    <TD vAlign=bottom width="15%" align=right>&nbsp; </TD>
  </TR>
  <TR vAlign=top>
    <TD align=left>(Add market value of all classes and series of securities)    </TD>
    <TD vAlign=bottom width="15%" align=right>(A) + (B) + (C) + (D) = </TD>
    <TD vAlign=bottom width="15%" align=right><U>&nbsp; 1,942,290,908.24 </U></TD>
  </TR>
  <TR>
    <TD>&nbsp; </TD>
    <TD vAlign=bottom width="15%" align=right>&nbsp; </TD>
    <TD vAlign=bottom width="15%" align=right>&nbsp; </TD>
  </TR>
  <TR vAlign=top>
    <TD align=left><B>Participation Fee </B></TD>
    <TD vAlign=bottom width="15%" align=right>&nbsp; </TD>
    <TD vAlign=bottom width="15%" align=right>&nbsp; </TD>
  </TR>
  <TR vAlign=top>
    <TD align=left>(From Appendix A of the Rule, select the participation fee
      beside the capitalization calculated above) </TD>
    <TD vAlign=bottom width="15%" align=right>&nbsp; </TD>
    <TD vAlign=bottom width="15%" align=right><U>$40,700 </U></TD>
  </TR>
  <TR>
    <TD>&nbsp; </TD>
    <TD vAlign=bottom width="15%" align=right>&nbsp; </TD>
    <TD vAlign=bottom width="15%" align=right>&nbsp; </TD>
  </TR>
  <TR vAlign=top>
    <TD align=left><B>Late Fee, </B>if applicable </TD>
    <TD vAlign=bottom width="15%" align=right>&nbsp; </TD>
    <TD vAlign=bottom width="15%" align=right>&nbsp; </TD>
  </TR>
  <TR vAlign=top>
    <TD align=left>(As determined under section 2.5 of the Rule) </TD>
    <TD vAlign=bottom width="15%" align=right>&nbsp; </TD>
    <TD vAlign=bottom width="15%"
align=right>____________&nbsp;</TD>
  </TR>
</TABLE>
<BR>
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<DOCUMENT>
<TYPE>EX-99.4
<SEQUENCE>5
<FILENAME>exhibit99-4.htm
<DESCRIPTION>NEWS RELEASE
<TEXT>


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<P align=center><IMG
src="sstandard.gif" width="680" height="150" border=0></P>
<BR>
<TABLE
style="BORDER-COLOR: black; BORDER-COLLAPSE: collapse; FONT-SIZE: 10pt; "
border=0 cellSpacing=0 cellPadding=0 width="100%">

  <TR vAlign=top>
    <TD align=left>March 12, 2012 </TD>
    <TD width="50%" align=right>News Release 12-06 </TD></TR></TABLE>
<P align=center><B>SILVER STANDARD REPORTS FOURTH QUARTER AND YEAR-END 2011
RESULTS </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;) reports consolidated
financial results for the fourth quarter and year-ended December 31, 2011. </P>
<P align=justify>&#147;2011 was a significant year in building the foundation
  for the future,&#148; said John Smith, President and CEO. &#147;At Pirquitas,
  we resolved the technical issues and the focus going forward is on producing
  consistently, managing costs and extending the mine life. Other key objectives
  for 2012 are advancing our development projects and growing our substantial
  resource base. I am confident we have the team in place to achieve our long-term
  goals.&#148;</P>
<P align=justify><B><U>Full-Year Highlights:</U></B><B> <BR></B><I>(All figures
are in U.S. dollars unless otherwise noted) </I></P>
<UL style="TEXT-ALIGN: justify">
  <LI>
  <P>Silver production of 7.1 million ounces in 2011 compared to 6.3 million
  ounces in 2010, an increase of 12%. </P>
  <LI>
  <P>Net income of $80.1 million or $1.00 per share. </P>
  <LI>
  <P>Operational improvements at the Pirquitas silver mine in Argentina position
  the mine for consistent period-on-period production performance. </P>
  <LI>
  <P>In the Cortaderas area at the Pirquitas mine, intersected high-grade silver
  and zinc mineralization, including 218 meters of 477.3 g/t silver and 7.97%
  zinc (DDH-214), in and around a breccia body to the north of the current
  open-pit, resulting in the establishment of a new Inferred mineral resource
  estimate of 22.5 million ounces of contained silver. </P>
  <LI>
  <P>Monetized approximately one-third of the Company&#146;s shareholding in Pretium
  Resources Inc. (&#147;Pretium&#148;) for $130 million, while retaining an interest with
  a market value at February 29, 2012, in excess of $400 million. </P>
  <LI>
  <P>Consolidated the Company&#146;s ownership interest in the high-grade gold and
  silver San Luis project in Peru. </P>
  <LI>
  <P>Completed the sale of the non-core Bowdens project in Australia for $70
  million. </P>
  <LI>
  <P>Accelerated the feasibility study on the Pitarrilla project in Mexico
  towards completion in mid-2012. </P>
  <LI>
  <P>Strengthened and enhanced the senior management team and technical
  capability with several appointments. </P></LI></UL>
<P align=center>1 </P>
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<P align=justify><B><U>Pirquitas Mine, Argentina</U></B> </P>
<P align=justify><B>Summary Mine Operating Statistics</B> <SUP>(1)</SUP> </P>
<DIV>
<TABLE
style="BORDER-COLOR: black; BORDER-COLLAPSE: collapse; FONT-SIZE: 10pt; "
border=1 cellSpacing=0 borderColor=#000000 cellPadding=3 width="100%">

  <TR vAlign=top>
      <TD vAlign=center align=center >&nbsp;</TD>
      <TD vAlign=center width="10%" align=center>&nbsp;</TD>
    <TD vAlign=center width="10%" align=center><B>Q1 2011</B> </TD>
    <TD vAlign=center width="10%" align=center><B>Q2 2011</B> </TD>
    <TD vAlign=center width="10%" align=center><B>Q3 2011</B> </TD>
    <TD width="10%" align=center vAlign=center bgcolor="#D9D9D9"><B>Q4 2011</B> </TD>
    <TD width="10%" align=center vAlign=center bgcolor="#D9D9D9"><B>Full Year</B>
      <BR>
      <B>2011</B> </TD>
    <TD vAlign=center width="10%" align=center><B>Full Year</B>
      <BR><B>2010</B> </TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left
      >Total Material Mined </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="10%" align=center>Kt
    </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="10%" align=right>4,172
    </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="10%" align=right>4,483
    </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="10%" align=right>4,185
    </TD>
    <TD width="10%"
      align=right bgcolor="#D9D9D9" style="BORDER-BOTTOM: #000000 1px solid"><B>4,640</B> </TD>
    <TD width="10%"
      align=right bgcolor="#D9D9D9" style="BORDER-BOTTOM: #000000 1px solid"><B>17,480</B> </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="10%"
      align=right>16,056 </TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left >Ore
      Processed </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="10%" align=center>Kt
    </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="10%" align=right>308
    </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="10%" align=right>295
    </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="10%" align=right>245
    </TD>
    <TD width="10%"
      align=right bgcolor="#D9D9D9" style="BORDER-BOTTOM: #000000 1px solid"><B>241</B> </TD>
    <TD width="10%"
      align=right bgcolor="#D9D9D9" style="BORDER-BOTTOM: #000000 1px solid"><B>1,089</B> </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="10%" align=right>1,255
    </TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left
      >Silver Mill Feed Grade </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="10%"
      align=center>g/tonne </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="10%" align=right>233
    </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="10%" align=right>261
    </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="10%" align=right>250
    </TD>
    <TD width="10%"
      align=right bgcolor="#D9D9D9" style="BORDER-BOTTOM: #000000 1px solid"><B>274</B> </TD>
    <TD width="10%"
      align=right bgcolor="#D9D9D9" style="BORDER-BOTTOM: #000000 1px solid"><B>253</B> </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="10%" align=right>233
    </TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left
      >Recoveries </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="10%" align=center>%
</TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="10%" align=right>73.6
    </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="10%" align=right>80.0
    </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="10%" align=right>82.9
    </TD>
    <TD width="10%"
      align=right bgcolor="#D9D9D9" style="BORDER-BOTTOM: #000000 1px solid"><B>82.4</B> </TD>
    <TD width="10%"
      align=right bgcolor="#D9D9D9" style="BORDER-BOTTOM: #000000 1px solid"><B>79.5</B> </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="10%" align=right>65.2
    </TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left
      >Silver Produced </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="10%" align=center>&#145;000
      oz. </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="10%" align=right>1,697
    </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="10%" align=right>1,976
    </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="10%" align=right>1,631
    </TD>
    <TD width="10%"
      align=right bgcolor="#D9D9D9" style="BORDER-BOTTOM: #000000 1px solid"><B>1,751</B> </TD>
    <TD width="10%"
      align=right bgcolor="#D9D9D9" style="BORDER-BOTTOM: #000000 1px solid"><B>7,056</B> </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="10%" align=right>6,302
    </TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-BOTTOM: #000000 1px solid" align=left
      >Direct Mining Cost </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="10%"
      align=center>US$/oz. </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="10%"
      align=right>$12.26 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="10%"
      align=right>$11.57 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="10%"
      align=right>$16.20 </TD>
    <TD width="10%"
      align=right bgcolor="#D9D9D9" style="BORDER-BOTTOM: #000000 1px solid"><B>$14.97</B> </TD>
    <TD width="10%"
      align=right bgcolor="#D9D9D9" style="BORDER-BOTTOM: #000000 1px solid"><B>$13.65</B> </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="10%"
      align=right>$12.19 </TD></TR>
  <TR vAlign=top>
    <TD align=left >Total Cash Cost </TD>
    <TD width="10%" align=center>US$/oz. </TD>
    <TD width="10%" align=right>$23.23 </TD>
    <TD width="10%" align=right>$22.06 </TD>
    <TD style="BORDER-BOTTOM: #000000 1px solid" width="10%"
      align=right>$20.60 </TD>
    <TD width="10%" align=right bgcolor="#D9D9D9"><B>$17.72</B> </TD>
    <TD width="10%" align=right bgcolor="#D9D9D9"><B>$20.93</B> </TD>
    <TD width="10%" align=right>$18.03 </TD></TR></TABLE></DIV><BR>
<TABLE
style="BORDER-COLOR: black; BORDER-COLLAPSE: collapse; FONT-SIZE: 10pt; "
border=0 cellSpacing=0 cellPadding=0 width="100%" BCLLIST>

  <TR>
    <TD vAlign=top width="5%"><I>(1)</I> </TD>
    <TD>
      <P align=justify><I>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 Statement of Income (Loss)
      please refer to &#145;Non-GAAP Financial Measures&#146; in item 14 of the
      MD&amp;A.</I></P></TD></TR></TABLE>
<P align=justify><U>Mine production</U> </P>
<P align=justify>The Pirquitas mine produced 7.1 million ounces of silver during
2011 compared with 6.3 million ounces in 2010. Although production was 12%
higher than in 2010, 2011 production was negatively impacted by over two months
of production downtime due to installing additional crushing capacity, and
operating for most of the year with a damaged ball mill gearbox. The gearbox has
now been completely rebuilt to nearly-new condition, and the mill recommenced
operating in early November 2011. A spare gearbox from Europe arrived in March
2012 and the Company has purchased a spare ball mill ring gear with expected
delivery towards the end of 2012. Since the mill has been back in operation, it
has exceeded design rates and production volumes have been strong. </P>
<P align=justify>During the year, 1.1 million tonnes of ore were processed at an
average milling rate of 2,983 tonnes per day, compared to 1.3 million tonnes at
an average of 3,439 tonnes per day in 2010. The reduced tonnage processed during
2011 was due to the aforementioned ball mill shutdowns, however, the average
milling rate during 2011 per operating day was in excess of 3,600 tonnes per
day. </P>
<P align=justify>Ore milled during 2011 contained an average silver grade of 253
g/t and an average silver recovery of 79.5% was achieved. This was a significant
improvement compared to a silver grade of 233 g/t and recovery of 65.2% in 2010.
The better silver recovery achieved during 2011 was due principally to
improvements in the consistency of feed and continuous improvements to the
crushing and flotation circuits. </P>
<P align=justify>The mine produced a total of 10.1 million pounds of zinc in
2011 which met guidance and resulted from milling higher grades and achieving
better recovery than planned. There was no zinc production in 2010 as the zinc
circuit was not commissioned until the start of 2011. </P>
<P align=center>2 </P>
<HR style="PAGE-BREAK-AFTER: always" align=center color=black SIZE=5
width="100%" noShade>
<A name=page_3></A>
<P align=justify><U>Mine operating costs</U> </P>
<P align=justify>Direct mining costs in 2011 were $13.65 per ounce of silver
compared to $12.19 per ounce in 2010. The increase in unit cost in 2011 versus
2010 was primarily driven by inflationary pressures on local labour costs and
catering, repairs and maintenance costs related to the primary crusher and the
refurbishment of the ball mill gearbox, additional maintenance costs and
external costs associated with the import restrictions, and expenditures
incurred to improve the long-term production efficiency of the facility. </P>
<P align=justify>Total cash cost in 2011, which includes by-product credits,
treatment and refining costs, royalties and production taxes, was $20.93 per
ounce of silver compared to $18.03 per ounce of silver in 2010. Treatment and
refining costs, as well as royalties and production taxes all vary as a function
of sales prices and are recorded for the actual ounces of silver sold.
Consequently, on a per ounce basis, the variability in total cash cost from
period to period is partially due to sales prices and the difference between
production and sales volumes. The higher incremental per ounce impact of these
costs in 2011 compared with 2010 is due primarily to higher prices achieved for
sales in the current year. </P>
<P align=justify><U>Exploration drilling program</U></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 and sulfide-rich,
vein-hosted mineralization was intersected by drill-holes in the vicinity of the
above-mentioned breccia body. To date, nine relatively closely-spaced
drill-holes have intersected the mineralized breccia body. The results from this
drilling were encouraging and based on the drilling completed, the Company
estimated an Inferred mineral resource for the breccia of 7.0 million tonnes
averaging 98.4 g/t silver and 2.3% zinc, for approximately 22.5 million ounces
of contained silver and 360.1 million pounds of contained zinc, at a 50 g/t
silver cut-off grade. Additional drilling is planned in the first half of 2012
to further define and delineate this resource. </P>
<P align=center>3 </P>
<HR style="PAGE-BREAK-AFTER: always" align=center color=black SIZE=5
width="100%" noShade>
<A name=page_4></A>
<P align=justify><B><U>Outlook</U></B><B> </B></P>
<P align=justify>Our production guidance and cost estimates for 2012 are as
follows: </P>
<UL style="TEXT-ALIGN: justify">
  <LI>Produce 8.2 to 8.5 million ounces of silver.
  <LI>Produce 10.5 to 11.5 million pounds of zinc.
  <LI>Direct mining costs of $11.85 per ounce of silver based on direct mining
  costs of $100.8 million.
  <LI>Capital expenditures at Pirquitas of approximately $19 million.
  <LI>Feasibility study, access roads, water wells, the operations camp and
  supporting administration at Pitarrilla are expected to be approximately $30
  million.
  <LI>Company exploration expenditures of greater than $25 million. </LI></UL>
<P align=justify>The regulatory environment within Argentina has been subject to
recent changes enacted by the Government including modifications to export
revenue repatriation, importation regulations for goods and services and the
removal of subsidies provided for fuel and natural gas products. Additionally,
recent labour negotiations within the industry indicate labour inflation is
likely to continue at elevated levels. The Company continues to assess the
overall impact of these items on its operations and Argentine peso denominated
operating costs and on the foreign exchange rate as items translate into U.S.
dollars, the Company&#146;s reporting currency. </P>
<P align=justify>Please refer to the cautionary note regarding forward-looking
statements and non-GAAP financial performance measures contained in this news
release. </P>
<P align=justify><B><U>Financial Results</U></B></P>
<P align=justify><B>Net Income </B></P>
<UL style="TEXT-ALIGN: justify">
  <LI>
  <P>Net earnings of $2.6 million or $0.03 per share in the three months ended
  December 31, 2011, compared to net earnings of $361.6 million or $4.56 per
  share in the three months ended December 31, 2010. </P>
  <LI>
  <P>Net earnings of $80.1 million or $1.00 per share in the year ended December
  31, 2011, compared to net earnings of $338.5 million or $4.34 per share in the
  year ended December 31, 2010. </P></LI></UL>
<P align=justify><B>Mine Operations </B></P>
<UL style="TEXT-ALIGN: justify">
  <LI>
  <P>Mine operations at Pirquitas had a loss of ($3.3) million in the three
  months ended December 31, 2011, from revenues of $14.4 million which were net
  of deductions, treatment and refining charges. Cost of sales was $14.5 million
  plus $3.1 million in non-cash depletion, depreciation and amortization. </P>
  <LI>
  <P>Mine operations at Pirquitas earned $51.9 million in the year ended
  December 31, 2011, from revenues of $147.8 million which were net of
  deductions, treatment and refining charges. Cost of sales was $79.4 million
  plus $16.5 million in non-cash depletion, depreciation and amortization.
  </P></LI></UL>
<P align=justify><B>Liquidity </B></P>
<UL style="TEXT-ALIGN: justify">
  <LI>Cash and cash equivalents at December 31, 2011, were $329.1 million
  compared to $232.3 million at December 31, 2010. Working capital at December
  31, 2011, was $399.1 million compared to $306.9 million at December 31, 2010.
  </LI></UL>
<P align=center>4 </P>
<HR style="PAGE-BREAK-AFTER: always" align=center color=black SIZE=5
width="100%" noShade>
<A name=page_5></A><BR>
<DIV>
<TABLE
style="BORDER-COLOR: black; BORDER-COLLAPSE: collapse; FONT-SIZE: 10pt; "
border=0 cellSpacing=0 cellPadding=3 width="100%">

  <TR vAlign=bottom>
    <TD
    style="BORDER-LEFT: #000000 1px solid; BORDER-TOP: #000000 1px solid; BORDER-RIGHT: #000000 1px solid"
    align=center><B><U>Selected Financial Data</U></B> <BR>(US$000&#146;s, except
      per share amounts) </TD></TR>
  <TR>
    <TD
      style="BORDER-LEFT: #000000 1px solid; BORDER-RIGHT: #000000 1px solid">&nbsp;
    </TD></TR>
  <TR vAlign=top>
    <TD style="BORDER-LEFT: #000000 1px solid; BORDER-RIGHT: #000000 1px solid"
    align=left>
      <P align=justify><I>This summary of selected financial data should be read
      in conjunction with the management discussion and analysis of the</I>
      <I>audited consolidated operating results and financial condition of the
      company for the three months and years ended</I> <I>December 31, 2011, and
      December 31, 2010.</I> </P></TD></TR></TABLE></DIV>
<DIV>
  <TABLE
style="BORDER-COLOR: black; BORDER-COLLAPSE: collapse; FONT-SIZE: 10pt; "
border=1 cellSpacing=0 borderColor=#000000 cellPadding=3 width="100%">
    <TR vAlign=top>
      <TD align=left><BR></TD>
      <TD colspan="2" align=center><B>Three Months</B> <BR> <B>Ended December
        31</B> <BR></TD>
      <TD colspan="2" align=center><B>Year</B> <BR> <B>Ended December 31</B> <BR></TD>
    </TR>
    <TR vAlign=top>
      <TD align=left>&nbsp; </TD>
      <TD width="15%" align=center><B>2011</B> </TD>
      <TD width="15%" align=center>&nbsp;<B>2010</B> </TD>
      <TD width="15%" align=center><B>2011</B> </TD>
      <TD width="15%" align=center><B>2010</B> </TD>
    </TR>
    <TR vAlign=top>
      <TD align=left>Income (loss) from mine operations </TD>
      <TD width="15%" align=right>(3,270) </TD>
      <TD width="15%" align=right>24,975 </TD>
      <TD width="15%" align=right>51,919 </TD>
      <TD width="15%" align=right>14,134 </TD>
    </TR>
    <TR vAlign=top>
      <TD align=left>Operating income (loss) </TD>
      <TD width="15%" align=right>(7,137) </TD>
      <TD width="15%" align=right>13,745 </TD>
      <TD width="15%" align=right>22,565 </TD>
      <TD width="15%" align=right>(17,162) </TD>
    </TR>
    <TR vAlign=top>
      <TD align=left>Net income (loss) for the period </TD>
      <TD width="15%" align=right>2,584 </TD>
      <TD width="15%" align=right>361,623 </TD>
      <TD width="15%" align=right>80,128 </TD>
      <TD width="15%" align=right>338,455 </TD>
    </TR>
    <TR vAlign=top>
      <TD align=left>Basic earnings (loss) per share </TD>
      <TD width="15%" align=right>0.03 </TD>
      <TD width="15%" align=right>4.64 </TD>
      <TD width="15%" align=right>1.00 </TD>
      <TD width="15%" align=right>4.34 </TD>
    </TR>
    <TR vAlign=top>
      <TD align=left>Cash generated (used) in operating activities </TD>
      <TD width="15%" align=right>(7,224) </TD>
      <TD width="15%" align=right>7,678 </TD>
      <TD width="15%" align=right>5,679 </TD>
      <TD width="15%" align=right>(11,110) </TD>
    </TR>
    <TR vAlign=top>
      <TD align=left>Cash generated by financing activities </TD>
      <TD width="15%" align=right>883 </TD>
      <TD width="15%" align=right>14,487 </TD>
      <TD width="15%" align=right>20,085 </TD>
      <TD width="15%" align=right>124,076 </TD>
    </TR>
    <TR vAlign=top>
      <TD align=left>Cash generated by (used in) investing activities </TD>
      <TD width="15%" align=right>(20,507) </TD>
      <TD width="15%" align=right>174,307 </TD>
      <TD width="15%" align=right>70,980 </TD>
      <TD width="15%" align=right>92,686 </TD>
    </TR>
    <TR>
      <TD align=left>&nbsp;</TD>
      <TD width="15%" align=right>&nbsp;</TD>
      <TD width="15%" align=right>&nbsp;</TD>
      <TD width="15%" align=right>&nbsp;</TD>
      <TD width="15%" align=right>&nbsp;</TD>
    </TR>
  </TABLE>
  <br>
</DIV>
<DIV>
<TABLE
style="BORDER-COLOR: black; BORDER-COLLAPSE: collapse; FONT-SIZE: 10pt; "
border=1 cellSpacing=0 borderColor=#000000 cellPadding=3 width="100%">

  <TR vAlign=top>
    <TD align=left><B>Financial Position</B> </TD>
    <TD width="30%" align=center><B>December 31, 2011</B> </TD>
    <TD width="30%" align=center><B>December 31, 2010</B> </TD></TR>
  <TR vAlign=top>
    <TD align=left>Cash and cash equivalents </TD>
    <TD width="30%" align=right>329,055 </TD>
    <TD width="30%" align=right>232,311 </TD></TR>
  <TR vAlign=top>
    <TD align=left>Current assets &#150; total </TD>
    <TD width="30%" align=right>476,676 </TD>
    <TD width="30%" align=right>342,054 </TD></TR>
  <TR vAlign=top>
    <TD align=left>Current liabilities &#150; total </TD>
    <TD width="30%" align=right>77,588 </TD>
    <TD width="30%" align=right>35,163 </TD></TR>
  <TR vAlign=top>
    <TD align=left>Working capital </TD>
    <TD width="30%" align=right>399,088 </TD>
    <TD width="30%" align=right>306,891 </TD></TR>
  <TR vAlign=top>
    <TD align=left>Total assets </TD>
    <TD width="30%" align=right>1,276,102 </TD>
    <TD width="30%" align=right>1,147,990 </TD></TR></TABLE></DIV>
<P align=justify><B><U>Principal Projects</U></B><B> </B></P>
<P align=justify><U>Pitarrilla Project, Mexico</U> </P>
<P align=justify>During the year a campaign of diamond drilling was conducted,
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 mineral resource as well as geotechnical and
metallurgical information that will be used for mine design and optimization.
This drilling work is the basis for a feasibility study which is scheduled to be
completed mid-2012.</P>
<P align=justify>A scoping level evaluation indicates the optimum project will
be a large open pit mine. Plant facilities are expected to target 16,000 tonnes
per day and include a milling circuit, an agitated leach circuit and a flotation
circuit. These facilities are expected to produce silver dor&#233; and separate lead
and zinc concentrates containing payable silver.</P>
<P align=justify>The design of the open pit is expected to start in the upper
and mid-level oxide and transitional ores and then extend into the higher grade
sulfide ores in the heart of the deposit in the basal conglomerate zone and
finally bottom out in the upper levels of sulfide mineralization in sedimentary
structures below the conglomerate. This mining operation will leave intact the
middle and lower zones of the sedimentary structures for subsequent potential
underground mining. </P>
<P align=justify>The Environmental Impact Assessment (&#147;EIA&#148;) process is
currently scheduled to be completed with a construction permit application in
the third quarter of 2012. Land access rights are being secured and construction
has commenced for the operations camp, water wells and access roads. </P>
<P align=center>5 </P>
<HR style="PAGE-BREAK-AFTER: always" align=center color=black SIZE=5
width="100%" noShade>
<A name=page_6></A>
<P align=justify><U>San Luis Project, Peru</U> </P>
<P align=justify>Long-term land access negotiations continued with two local
communities, one agreement being completed and one ongoing, and work also
continued on completing the required Environmental Impact Study (&#147;EIS&#148;). The
completion of the land access agreements and approval of the EIS will enable a
construction decision to be made.</P>
<P align=justify>During the year, 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 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 Ayel&#233;n 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 planned.
</P>
<P align=justify><U>Diablillos, Argentina</U> </P>
<P align=justify>Expenditures primarily included administrative, property taxes
and camp maintenance costs. Fieldwork 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 several of these targets will be drilled in 2012 with
shallow boreholes. </P>
<P align=justify><U>San Agustin, Mexico</U> </P>
<P align=justify>Advanced negotiations were conducted during the year with three
parties that control the property surface rights. Once land access agreements
are in place, a 5,000 meter diamond drilling program will be initiated. 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><B><U>Mineral Reserves and Resources</U></B></P>
<P align=justify>At December 31, 2011, Proven and Probable silver mineral
reserves totaled 189 million ounces. The reduction in mineral reserves from 192
million ounces at September 30, 2011, was the result of depletion from mining
activities at Pirquitas in the fourth quarter of 2011. Measured and Indicated
silver mineral resources (inclusive of mineral reserves) at year-end totaled
1,142 million ounces and Inferred silver mineral resources totaled 373 million
ounces. The mineral resource figures are updated to include the latest
Pitarrilla estimate as of January 31, 2012. See Table 1 for details of the
Company&#146;s mineral reserves and mineral resources by project. </P>
<P align=justify><B><U>Adoption of Shareholder Rights Plan</U></B></P>
<P align=justify>The Company&#146;s Board of Directors (the "Board") has adopted a
Shareholder Rights Plan (the "Rights Plan"). The Rights Plan is similar to
existing shareholder rights plans adopted by other Canadian public companies.
The Rights Plan has not been adopted in response to, or in anticipation of, any
known take-over bid. The Rights Plan's objective is to ensure that all
shareholders of the Company are treated equally and fairly in connection with any proposed takeover bid for the
Company or other transaction that would involve a change in control.</P>
<P align=center>6 </P>
<HR style="PAGE-BREAK-AFTER: always" align=center color=black SIZE=5
width="100%" noShade>
<A name=page_7></A>
<P align=justify>The Rights Plan is effective immediately, subject to
confirmation by the Company&#146;s shareholders at the Company&#146;s next annual meeting
to be held on May 9, 2012. If the Rights Plan is not confirmed by the Company&#146;s
shareholders, it will be terminated and of no further force and effect (unless
it has been triggered prior to termination).</P>
<P align=justify>The Rights Plan discourages discriminatory, coercive or unfair
takeovers of the Company and gives the Board time, where appropriate, to
evaluate the proposed transaction and to conduct an orderly process to maximize
shareholder value. Such process may include the solicitation of superior
proposals, consideration of alternative structures, identification of other
potential bidders or the conducting of an orderly auction. </P>
<P align=justify>The Toronto Stock Exchange and NASDAQ Stock Market have
accepted notice of the Rights Plan, subject to, among other conditions,
confirmation of the Rights Plan by the Company&#146;s shareholders.</P>
<P align=justify>The Board has implemented the Rights Plan by authorizing the
issuance, of one right (a Right) in respect of each outstanding common share of
the Company (the "Common Shares) at the close of business on March 9, 2012 (the
"Record Time"). In addition, the Board authorized the issuance of one Right in
respect of each Common Share and other share of capital stock or voting
interests of the Company entitled to vote generally in the election of directors
(together with the Common Shares, the &#147;Voting Shares&#148;) issued from treasury
after the Record Time and prior to the Separation Time (as defined in the Rights
Plan). Initially, the Rights will be attached to the Company&#146;s Voting Shares and
will not be exercisable. Until such time as the Rights separate from the Voting
Shares, when they become exercisable, Rights certificates will not be
distributed to shareholders. </P>
<P align=justify>If a person, or a group acting jointly or in concert, acquires
(other than pursuant to an exemption available under the Rights Plan) beneficial
ownership of 20 percent or more of the Voting Shares, Rights (other than those
held by such acquiring person or group which will become void) will separate
from the Common Shares and each Right will permit the holder thereof to receive,
upon exercise, the number of Common Shares having an aggregate market price (as
determined in accordance with the Rights Plan), as of the date of consummation
or occurrence of such acquisition of Common Shares, equal to four times the
exercise price (as of the Separation Time) of the Right for an amount in cash
equal to the exercise price. The exercise price of the Rights pursuant to the
Rights Plan is four times the market price per Common Share. </P>
<P align=justify>At any time prior to the Rights becoming exercisable, the Board
  may waive the operation of the Rights Plan with respect to certain limited events
  before they occur. The issuance of the Rights is not dilutive and will not affect
  reported earnings or cash flow per share until the Rights separate from the
  underlying Common Shares and become exercisable or until the exercise of the
  Rights. The issuance of the Rights will not change the manner in which shareholders
  currently trade their Common Shares. A copy of the Rights Plan will be available
  under the Company's profile on SEDAR at <U><FONT
color=#0000ff>www.sedar.com</FONT></U> and EDGAR at <U><FONT
color=#0000ff>www.sec.gov</FONT></U>, or upon request from the Company.</P>
<P align=justify><B><U>Management Discussion &amp; Analysis and Conference
Call</U></B><B> </B></P>
<P align=justify>This news release should be read in conjunction with Silver
Standard&#146;s Fourth Quarter and Year-Ended December 31, 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> or the
company&#146;s web site at <U><FONT
color=#0000ff>www.silverstandard.com</FONT></U>.</P>
<P align=center>7 </P>
<HR style="PAGE-BREAK-AFTER: always" align=center color=black SIZE=5
width="100%" noShade>
<A name=page_8></A>
<UL style="TEXT-ALIGN: justify">
  <LI>Conference Call and Webcast: Monday, March 12, 2012, at 11:00 a.m. ET.
  </LI></UL>
<TABLE
style="BORDER-COLOR: black; BORDER-COLLAPSE: collapse; FONT-SIZE: 10pt; "
border=0 cellSpacing=0 cellPadding=0 width="100%">

  <TR vAlign=top>
    <TD width="5%"  >&nbsp;</TD>
    <TD align=left>Toll-free in North America: </TD>
    <TD width="70%" align=left >(888) 429-4600 </TD></TR>
  <TR vAlign=top>
    <TD width="5%" >&nbsp;</TD>
    <TD align=left>All other callers: </TD>
    <TD width="70%" align=left >(970) 315-0481 </TD></TR>
  <TR vAlign=top>
    <TD width="5%" >&nbsp;</TD>
    <TD align=left>Webcast: </TD>
    <TD width="70%" align=left ><U><FONT
      color=#0000ff>http://ir.silverstandard.com/events.cfm</FONT></U>
  </TD></TR></TABLE>
<UL style="TEXT-ALIGN: justify">
  <LI>The call will be archived and available at <U><FONT
  color=#0000ff>www.silverstandard.com</FONT></U>. Audio replay will be
  available for one week by calling: </LI></UL>
<DIV>
<TABLE
style="BORDER-COLOR: black; BORDER-COLLAPSE: collapse; FONT-SIZE: 10pt; "
border=0 cellSpacing=0 cellPadding=0 width="100%">

  <TR vAlign=top>
    <TD width="5%"  >&nbsp;</TD>
    <TD align=left>Toll-free in North America: </TD>
    <TD width="70%" align=left >(855) 859-2056, replay conference
      ID 50297550 </TD></TR>
  <TR vAlign=top>
    <TD width="5%" >&nbsp;</TD>
    <TD align=left>All other callers: </TD>
    <TD width="70%" align=left >(404) 537-3406, replay conference
      ID 50297550 </TD></TR></TABLE></DIV>
<P align=justify>SOURCE: Silver Standard Resources Inc. </P>
<P align=justify>Contact: </P>
<P align=justify>Michael McDonald <BR>Manager, Business Development <BR>Silver
Standard Resources Inc. <BR>Vancouver, B.C. <BR>N.A toll-free: (888) 338-0046
<BR>All others: (604) 689-3846 <BR>
  E-Mail: <U><FONT
color=#0000ff>invest@silverstandard.com</FONT></U> </P>
<P align=justify><B><I>Cautionary Statements on Forward Looking Information:
</I></B><I>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 the Company&#146;s operations in future
periods, the Company&#146;s planned exploration activities, the adequacy of the
Company&#146;s 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 domestic and foreign laws, regulations
and government policies and actions affecting the Company&#146;s operations or
potential future operations; future successful development of the Pitarrilla and
San Luis projects and other exploration and development projects; the
sufficiency of the Company&#146;s current working capital, anticipated operating cash
flow or the Company&#146;s 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 the Company&#146;s 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; 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.</I></P>
<P align=center>8 </P>
<HR style="PAGE-BREAK-AFTER: always" align=center color=black SIZE=5
width="100%" noShade>
<A name=page_9></A>
<P align=justify><I>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 production at the Company&#146;s mineral exploration and development
properties; risks and uncertainties associated with developing and exploring new
mines including start-up delays; risks and hazards associated with the business
of mineral exploration, development and mining (including operating in foreign
jurisdictions, 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 the Company&#146;s mineral deposits;
risks related to the Company&#146;s ability to obtain adequate financing for the
Company&#146;s 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; risks related to obtaining long-term sales
contracts or completing spot sales for the Company&#146;s products; the Company&#146;s
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 the Company&#146;s
covenants given with respect to the Company&#146;s 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 the
Company&#146;s has 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 the
Company&#146;s properties; uncertainties related to title to the Company&#146;s mineral
properties and the surface rights thereon, including the Company&#146;s ability to
acquire, or economically acquire, the surface rights to certain of the Company&#146;s
exploration and development projects; the Company&#146;s 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 the
Company&#146;s directors&#146; and officers&#146; involvement with other natural resource
companies; the future value of Pretium&#146;s shares and the Company&#146;s ability to
attract and retain qualified personnel and management to grow the Company&#146;s
business; risks related to estimates of future income tax assets and
liabilities; risks related to claims and legal proceedings; the Company&#146;s
ability to maintain adequate internal control over financial reporting; the
Company&#146;s ability to monetize the full value of the Company&#146;s interest in
Pretium; 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. </I></P>
<P align=justify><I>This list is not exhaustive of the factors that may affect
any of the Company&#146;s forward-looking statements. Forward-looking statements are
statements about the future and are inherently uncertain, and the Company&#146;s
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 under the heading &#145;&#145;Other Risks and
Uncertainties&#148;. The Company&#146;s forward-looking statements are based on the
beliefs, expectations and opinions of management on the date the statements are
made, and the Company does not assume any obligation to update forward-looking
statements if circumstances or management&#146;s beliefs, expectations or opinions
should change, other than as required by applicable law. For the reasons set
forth above, one should not place undue reliance on forward-looking statements.
</I></P>
<P align=justify><B><I>Cautionary note to U.S. investors:</I></B><I> The terms
"Measured Mineral Resource", "Indicated Mineral Resource", and "Inferred Mineral
Resource" are Canadian geological and mining terms as defined in accordance with
National Instrument 43-101, Standards of Disclosure for Mineral Projects ("NI
43-101") under the guidelines set out in the Canadian Institute of Mining,
Metallurgy and Petroleum (the "CIM") Standards on Mineral Resources and Mineral
Reserves, adopted by the CIM Council on November 27, 2010, as may be amended
from time to time by the CIM. We advise U.S. investors that while such terms are
recognized and required under Canadian regulations, the U.S. Securities and
Exchange Commission (the "SEC") does not recognize them. U.S. investors are
cautioned not to assume that any part or all of the Mineral Deposits in the
"Measured Mineral Resource" and "Indicated Mineral Resource" categories will
ever be converted into Mineral Reserves. "Inferred Mineral Resources" have a
great degree of uncertainty as to their existence, and great uncertainty as to
their economic and legal 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 form the
basis of feasibility or other economic studies, except in limited circumstances.
U.S. investors are cautioned not to assume that any part of all of an Inferred
Mineral Resource exists, or is economically or legally mineable. </I></P>
<P align=justify><I>Disclosure of contained silver expressed in troy ounces is
in accordance 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. </I></P>
<P align=center>9 </P>
<HR style="PAGE-BREAK-AFTER: always" align=center color=black SIZE=5
width="100%" noShade>
<A name=page_10></A>
<P align=justify><B><U>Table 1. Mineral Reserves and Resources<BR></U></B><I>(as
of December 31</I><I><SUP>st</SUP></I><I>, 2011) </I></P>
<DIV>
<TABLE
style="BORDER-COLOR: black; BORDER-COLLAPSE: collapse; FONT-SIZE: 8pt; "
border=0 cellSpacing=0 cellPadding=0 width="100%">

  <TR vAlign=top>
    <TD align=left>&nbsp; </TD>
    <TD width="8%" align=center>&nbsp; </TD>
    <TD width="8%" align=center>&nbsp; </TD>
    <TD width="8%" align=center>&nbsp; </TD>
    <TD width="8%" align=center>&nbsp; </TD>
    <TD width="8%" align=center>&nbsp; </TD>
    <TD width="8%" align=center>&nbsp; </TD>
    <TD width="8%" align=center>&nbsp; </TD>
    <TD width="8%" align=center>&nbsp; </TD>
    <TD width="8%" align=center>&nbsp; </TD>
    <TD width="8%" align=right>Silver </TD>
    <TD width="8%" align=right>Gold </TD></TR>
  <TR vAlign=top>
    <TD align=left>&nbsp; </TD>
    <TD width="8%" align=center>&nbsp; </TD>
    <TD width="8%" align=left>Resource </TD>
    <TD width="8%" align=right>Tonnes </TD>
    <TD width="8%" align=right>Silver </TD>
    <TD width="8%" align=right>Gold </TD>
    <TD width="8%" align=right>Lead </TD>
    <TD width="8%" align=right>Zinc </TD>
    <TD width="8%" align=right>Tin </TD>
    <TD width="8%" align=right>Copper </TD>
    <TD width="8%" align=right>Ounces </TD>
    <TD width="8%" align=right>Ounces </TD></TR>
  <TR vAlign=top>
    <TD align=left>&nbsp; </TD>
    <TD width="8%" align=left>Location </TD>
    <TD width="8%" align=left>Category </TD>
    <TD width="8%" align=right>(millions) </TD>
    <TD width="8%" align=right>&nbsp;g/t </TD>
    <TD width="8%" align=right>g/t </TD>
    <TD width="8%" align=right>% </TD>
    <TD width="8%" align=right>% </TD>
    <TD width="8%" align=right>% </TD>
    <TD width="8%" align=right>% </TD>
    <TD width="8%" align=right>(millions) </TD>
    <TD  width="8%" align=right>(millions)&nbsp;&nbsp;</TD></TR>
  <TR vAlign=top>
    <TD colSpan=2 align=left><B><U>MINERAL RESERVES:</U></B> </TD>
    <TD width="8%" align=left>&nbsp; </TD>
    <TD width="8%" align=left>&nbsp; </TD>
    <TD width="8%" align=left>&nbsp; </TD>
    <TD width="8%" align=left>&nbsp; </TD>
    <TD width="8%" align=left>&nbsp; </TD>
    <TD width="8%" align=left>&nbsp; </TD>
    <TD width="8%" align=left>&nbsp; </TD>
    <TD width="8%" align=left>&nbsp; </TD>
    <TD width="8%" align=left>&nbsp; </TD>
    <TD width="8%" align=left>&nbsp; </TD></TR>
  <TR vAlign=top>
    <TD bgColor=#E6EFFF align=left>&nbsp; </TD>
    <TD bgColor=#E6EFFF width="8%" align=left>&nbsp; </TD>
    <TD bgColor=#E6EFFF width="8%" align=left>Proven </TD>
    <TD bgColor=#E6EFFF width="8%" align=right>9.80 </TD>
    <TD bgColor=#E6EFFF width="8%" align=right>180.8 </TD>
    <TD bgColor=#E6EFFF width="8%" align=left>&nbsp; </TD>
    <TD bgColor=#E6EFFF width="8%" align=left>&nbsp; </TD>
    <TD bgColor=#E6EFFF width="8%" align=right>0.51 </TD>
    <TD bgColor=#E6EFFF width="8%" align=left>&nbsp; </TD>
    <TD bgColor=#E6EFFF width="8%" align=left>&nbsp; </TD>
    <TD bgColor=#E6EFFF width="8%" align=right>57.2 </TD>
    <TD bgColor=#E6EFFF width="8%" align=left>&nbsp; </TD></TR>
  <TR vAlign=top>
    <TD align=left bgcolor="#E6EFFF">Pirquitas </TD>
    <TD width="8%" align=left bgcolor="#E6EFFF">Argentina </TD>
    <TD width="8%" align=left bgcolor="#E6EFFF">Probable </TD>
    <TD width="8%" align=right bgcolor="#E6EFFF">5.00 </TD>
    <TD width="8%" align=right bgcolor="#E6EFFF">168.4 </TD>
    <TD width="8%" align=left bgcolor="#E6EFFF">&nbsp; </TD>
    <TD width="8%" align=left bgcolor="#E6EFFF">&nbsp; </TD>
    <TD width="8%" align=right bgcolor="#E6EFFF">1.04 </TD>
    <TD width="8%" align=left bgcolor="#E6EFFF">&nbsp; </TD>
    <TD width="8%" align=left bgcolor="#E6EFFF">&nbsp; </TD>
    <TD width="8%" align=right bgcolor="#E6EFFF">26.9 </TD>
    <TD width="8%" align=left bgcolor="#E6EFFF">&nbsp; </TD></TR>
  <TR vAlign=top>
    <TD bgColor=#E6EFFF align=left>&nbsp; </TD>
    <TD bgColor=#E6EFFF width="8%" align=left>&nbsp; </TD>
    <TD bgColor=#E6EFFF width="8%" align=left>Stockpiles </TD>
    <TD bgColor=#E6EFFF width="8%" align=right>1.50 </TD>
    <TD bgColor=#E6EFFF width="8%" align=right>129.5 </TD>
    <TD bgColor=#E6EFFF width="8%" align=left>&nbsp; </TD>
    <TD bgColor=#E6EFFF width="8%" align=left>&nbsp; </TD>
    <TD bgColor=#E6EFFF width="8%" align=right>1.04 </TD>
    <TD bgColor=#E6EFFF width="8%" align=left>&nbsp; </TD>
    <TD bgColor=#E6EFFF width="8%" align=left>&nbsp; </TD>
    <TD bgColor=#E6EFFF width="8%" align=right>6.2 </TD>
    <TD bgColor=#E6EFFF width="8%" align=left>&nbsp; </TD></TR>
  <TR vAlign=top>
    <TD align=left bgcolor="#FFFFFF">&nbsp;</TD>
    <TD align=left bgcolor="#FFFFFF">&nbsp;</TD>
    <TD align=left bgcolor="#FFFFFF">&nbsp;</TD>
    <TD align=right bgcolor="#FFFFFF">&nbsp;</TD>
    <TD align=right bgcolor="#FFFFFF">&nbsp;</TD>
    <TD align=left bgcolor="#FFFFFF">&nbsp;</TD>
    <TD align=right bgcolor="#FFFFFF">&nbsp;</TD>
    <TD align=right bgcolor="#FFFFFF">&nbsp;</TD>
    <TD align=left bgcolor="#FFFFFF">&nbsp;</TD>
    <TD align=left bgcolor="#FFFFFF">&nbsp;</TD>
    <TD align=right bgcolor="#FFFFFF">&nbsp;</TD>
    <TD align=left bgcolor="#FFFFFF">&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left bgcolor="#E6EFFF">Pitarrilla </TD>
    <TD width="8%" align=left bgcolor="#E6EFFF">Mexico </TD>
    <TD width="8%" align=left bgcolor="#E6EFFF">Probable </TD>
    <TD width="8%" align=right bgcolor="#E6EFFF">16.70 </TD>
    <TD width="8%" align=right bgcolor="#E6EFFF">171.0 </TD>
    <TD width="8%" align=left bgcolor="#E6EFFF">&nbsp; </TD>
    <TD width="8%" align=right bgcolor="#E6EFFF">1.12 </TD>
    <TD width="8%" align=right bgcolor="#E6EFFF">2.57 </TD>
    <TD width="8%" align=left bgcolor="#E6EFFF">&nbsp; </TD>
    <TD width="8%" align=left bgcolor="#E6EFFF">&nbsp; </TD>
    <TD width="8%" align=right bgcolor="#E6EFFF">91.7 </TD>
    <TD width="8%" align=left bgcolor="#E6EFFF">&nbsp; </TD></TR>
  <TR vAlign=top>
    <TD bgColor=#FFFFFF align=left>&nbsp;</TD>
    <TD bgColor=#FFFFFF align=left>&nbsp;</TD>
    <TD bgColor=#FFFFFF align=left>&nbsp;</TD>
    <TD bgColor=#FFFFFF align=right>&nbsp;</TD>
    <TD bgColor=#FFFFFF align=right>&nbsp;</TD>
    <TD bgColor=#FFFFFF align=right>&nbsp;</TD>
    <TD bgColor=#FFFFFF align=left>&nbsp;</TD>
    <TD bgColor=#FFFFFF align=left>&nbsp;</TD>
    <TD bgColor=#FFFFFF align=left>&nbsp;</TD>
    <TD bgColor=#FFFFFF align=left>&nbsp;</TD>
    <TD bgColor=#FFFFFF align=right>&nbsp;</TD>
    <TD bgColor=#FFFFFF align=right>&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD bgColor=#E6EFFF align=left>&nbsp; </TD>
    <TD bgColor=#E6EFFF width="8%" align=left>&nbsp; </TD>
    <TD bgColor=#E6EFFF width="8%" align=left>Proven </TD>
    <TD bgColor=#E6EFFF width="8%" align=right>0.06 </TD>
    <TD bgColor=#E6EFFF width="8%" align=right>604.5 </TD>
    <TD bgColor=#E6EFFF width="8%" align=right>28.3 </TD>
    <TD bgColor=#E6EFFF width="8%" align=left>&nbsp; </TD>
    <TD bgColor=#E6EFFF width="8%" align=left>&nbsp; </TD>
    <TD bgColor=#E6EFFF width="8%" align=left>&nbsp; </TD>
    <TD bgColor=#E6EFFF width="8%" align=left>&nbsp; </TD>
    <TD bgColor=#E6EFFF width="8%" align=right>1.1 </TD>
    <TD bgColor=#E6EFFF width="8%" align=right>0.05 </TD></TR>
  <TR vAlign=top>
    <TD align=left bgcolor="#E6EFFF">San Luis </TD>
    <TD width="8%" align=left bgcolor="#E6EFFF">Peru </TD>
    <TD width="8%" align=left bgcolor="#E6EFFF">Probable </TD>
    <TD width="8%" align=right bgcolor="#E6EFFF">0.45 </TD>
    <TD width="8%" align=right bgcolor="#E6EFFF">426.2 </TD>
    <TD width="8%" align=right bgcolor="#E6EFFF">16.7 </TD>
    <TD width="8%" align=left bgcolor="#E6EFFF">&nbsp; </TD>
    <TD width="8%" align=left bgcolor="#E6EFFF">&nbsp; </TD>
    <TD width="8%" align=left bgcolor="#E6EFFF">&nbsp; </TD>
    <TD width="8%" align=left bgcolor="#E6EFFF">&nbsp; </TD>
    <TD width="8%" align=right bgcolor="#E6EFFF">6.1 </TD>
    <TD width="8%" align=right bgcolor="#E6EFFF">0.24 </TD></TR>
  <TR vAlign=top>
    <TD bgColor=#FFFFFF colSpan=4 align=left>&nbsp;</TD>
    <TD bgColor=#FFFFFF align=left>&nbsp;</TD>
    <TD bgColor=#FFFFFF align=left>&nbsp;</TD>
    <TD bgColor=#FFFFFF align=left>&nbsp;</TD>
    <TD bgColor=#FFFFFF align=left>&nbsp;</TD>
    <TD bgColor=#FFFFFF align=left>&nbsp;</TD>
    <TD bgColor=#FFFFFF align=left>&nbsp;</TD>
    <TD bgColor=#FFFFFF align=left>&nbsp;</TD>
    <TD bgColor=#FFFFFF align=left>&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD bgColor=#FFFFFF colSpan=4 align=left><B><U>MEASURED AND INDICATED
      MINERAL RESOURCES:</U></B> </TD>
    <TD bgColor=#FFFFFF width="8%" align=left>&nbsp; </TD>
    <TD bgColor=#FFFFFF width="8%" align=left>&nbsp; </TD>
    <TD bgColor=#FFFFFF width="8%" align=left>&nbsp; </TD>
    <TD bgColor=#FFFFFF width="8%" align=left>&nbsp; </TD>
    <TD bgColor=#FFFFFF width="8%" align=left>&nbsp; </TD>
    <TD bgColor=#FFFFFF width="8%" align=left>&nbsp; </TD>
    <TD bgColor=#FFFFFF width="8%" align=left>&nbsp; </TD>
    <TD bgColor=#FFFFFF width="8%" align=left>&nbsp; </TD></TR>
  <TR vAlign=top>
    <TD align=left bgcolor="#FFFFFF">&nbsp;</TD>
    <TD align=left bgcolor="#FFFFFF">&nbsp;</TD>
    <TD align=left bgcolor="#FFFFFF">&nbsp;</TD>
    <TD align=right bgcolor="#FFFFFF">&nbsp;</TD>
    <TD align=right bgcolor="#FFFFFF">&nbsp;</TD>
    <TD align=left bgcolor="#FFFFFF">&nbsp;</TD>
    <TD align=left bgcolor="#FFFFFF">&nbsp;</TD>
    <TD align=right bgcolor="#FFFFFF">&nbsp;</TD>
    <TD align=left bgcolor="#FFFFFF">&nbsp;</TD>
    <TD align=left bgcolor="#FFFFFF">&nbsp;</TD>
    <TD align=right bgcolor="#FFFFFF">&nbsp;</TD>
    <TD align=left bgcolor="#FFFFFF">&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left bgcolor="#E6EFFF">&nbsp; </TD>
    <TD width="8%" align=left bgcolor="#E6EFFF">&nbsp; </TD>
    <TD width="8%" align=left bgcolor="#E6EFFF">Measured^ </TD>
    <TD width="8%" align=right bgcolor="#E6EFFF">13.50 </TD>
    <TD width="8%" align=right bgcolor="#E6EFFF">156.2 </TD>
    <TD width="8%" align=left bgcolor="#E6EFFF">&nbsp; </TD>
    <TD width="8%" align=left bgcolor="#E6EFFF">&nbsp; </TD>
    <TD width="8%" align=right bgcolor="#E6EFFF">0.49 </TD>
    <TD width="8%" align=left bgcolor="#E6EFFF">&nbsp; </TD>
    <TD width="8%" align=left bgcolor="#E6EFFF">&nbsp; </TD>
    <TD width="8%" align=right bgcolor="#E6EFFF">68.0 </TD>
    <TD width="8%" align=left bgcolor="#E6EFFF">&nbsp; </TD></TR>
  <TR vAlign=top>
    <TD bgColor=#E6EFFF align=left>Pirquitas </TD>
    <TD bgColor=#E6EFFF width="8%" align=left>Argentina </TD>
    <TD bgColor=#E6EFFF width="8%" align=left>Indicated^ </TD>
    <TD bgColor=#E6EFFF width="8%" align=right>16.30 </TD>
    <TD bgColor=#E6EFFF width="8%" align=right>142.3 </TD>
    <TD bgColor=#E6EFFF width="8%" align=left>&nbsp; </TD>
    <TD bgColor=#E6EFFF width="8%" align=left>&nbsp; </TD>
    <TD bgColor=#E6EFFF width="8%" align=right>0.91 </TD>
    <TD bgColor=#E6EFFF width="8%" align=left>&nbsp; </TD>
    <TD bgColor=#E6EFFF width="8%" align=left>&nbsp; </TD>
    <TD bgColor=#E6EFFF width="8%" align=right>74.6 </TD>
    <TD bgColor=#E6EFFF width="8%" align=left>&nbsp; </TD></TR>
  <TR vAlign=top>
    <TD align=left bgcolor="#FFFFFF">&nbsp;</TD>
    <TD align=left bgcolor="#FFFFFF">&nbsp;</TD>
    <TD align=left bgcolor="#FFFFFF">&nbsp;</TD>
    <TD align=right bgcolor="#FFFFFF">&nbsp;</TD>
    <TD align=right bgcolor="#FFFFFF">&nbsp;</TD>
    <TD align=left bgcolor="#FFFFFF">&nbsp;</TD>
    <TD align=right bgcolor="#FFFFFF">&nbsp;</TD>
    <TD align=right bgcolor="#FFFFFF">&nbsp;</TD>
    <TD align=left bgcolor="#FFFFFF">&nbsp;</TD>
    <TD align=left bgcolor="#FFFFFF">&nbsp;</TD>
    <TD align=right bgcolor="#FFFFFF">&nbsp;</TD>
    <TD align=left bgcolor="#FFFFFF">&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left bgcolor="#E6EFFF">Pitarrilla </TD>
    <TD width="8%" align=left bgcolor="#E6EFFF">Mexico </TD>
    <TD width="8%" align=left bgcolor="#E6EFFF">Measured^* </TD>
    <TD width="8%" align=right bgcolor="#E6EFFF">23.00 </TD>
    <TD width="8%" align=right bgcolor="#E6EFFF">86.7 </TD>
    <TD width="8%" align=left bgcolor="#E6EFFF">&nbsp; </TD>
    <TD width="8%" align=right bgcolor="#E6EFFF">0.67 </TD>
    <TD width="8%" align=right bgcolor="#E6EFFF">1.14 </TD>
    <TD width="8%" align=left bgcolor="#E6EFFF">&nbsp; </TD>
    <TD width="8%" align=left bgcolor="#E6EFFF">&nbsp; </TD>
    <TD width="8%" align=right bgcolor="#E6EFFF">64.2 </TD>
    <TD width="8%" align=left bgcolor="#E6EFFF">&nbsp; </TD></TR>
  <TR vAlign=top>
    <TD align=left bgcolor="#E6EFFF">&nbsp; </TD>
    <TD width="8%" align=left bgcolor="#E6EFFF">&nbsp; </TD>
    <TD width="8%" align=left bgcolor="#E6EFFF">Indicated^* </TD>
    <TD width="8%" align=right bgcolor="#E6EFFF">222.00 </TD>
    <TD width="8%" align=right bgcolor="#E6EFFF">82.9 </TD>
    <TD width="8%" align=left bgcolor="#E6EFFF">&nbsp; </TD>
    <TD width="8%" align=right bgcolor="#E6EFFF">0.31 </TD>
    <TD width="8%" align=right bgcolor="#E6EFFF">0.73 </TD>
    <TD width="8%" align=left bgcolor="#E6EFFF">&nbsp; </TD>
    <TD width="8%" align=left bgcolor="#E6EFFF">&nbsp; </TD>
    <TD width="8%" align=right bgcolor="#E6EFFF">591.5 </TD>
    <TD width="8%" align=left bgcolor="#E6EFFF">&nbsp; </TD></TR>
  <TR vAlign=top>
    <TD bgColor=#FFFFFF align=left>&nbsp;</TD>
    <TD bgColor=#FFFFFF align=left>&nbsp;</TD>
    <TD bgColor=#FFFFFF align=left>&nbsp;</TD>
    <TD bgColor=#FFFFFF align=right>&nbsp;</TD>
    <TD bgColor=#FFFFFF align=right>&nbsp;</TD>
    <TD bgColor=#FFFFFF align=right>&nbsp;</TD>
    <TD bgColor=#FFFFFF align=left>&nbsp;</TD>
    <TD bgColor=#FFFFFF align=left>&nbsp;</TD>
    <TD bgColor=#FFFFFF align=left>&nbsp;</TD>
    <TD bgColor=#FFFFFF align=left>&nbsp;</TD>
    <TD bgColor=#FFFFFF align=right>&nbsp;</TD>
    <TD bgColor=#FFFFFF align=right>&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD bgColor=#E6EFFF align=left>Diablillos </TD>
    <TD bgColor=#E6EFFF width="8%" align=left>Argentina </TD>
    <TD bgColor=#E6EFFF width="8%" align=left>Indicated </TD>
    <TD bgColor=#E6EFFF width="8%" align=right>21.60 </TD>
    <TD bgColor=#E6EFFF width="8%" align=right>111.0 </TD>
    <TD bgColor=#E6EFFF width="8%" align=right>0.9 </TD>
    <TD bgColor=#E6EFFF width="8%" align=left>&nbsp; </TD>
    <TD bgColor=#E6EFFF width="8%" align=left>&nbsp; </TD>
    <TD bgColor=#E6EFFF width="8%" align=left>&nbsp; </TD>
    <TD bgColor=#E6EFFF width="8%" align=left>&nbsp; </TD>
    <TD bgColor=#E6EFFF width="8%" align=right>77.1 </TD>
    <TD bgColor=#E6EFFF width="8%" align=right>0.64 </TD></TR>
  <TR vAlign=top>
    <TD align=left bgcolor="#FFFFFF">&nbsp;</TD>
    <TD align=left bgcolor="#FFFFFF">&nbsp;</TD>
    <TD align=left bgcolor="#FFFFFF">&nbsp;</TD>
    <TD align=right bgcolor="#FFFFFF">&nbsp;</TD>
    <TD align=right bgcolor="#FFFFFF">&nbsp;</TD>
    <TD align=right bgcolor="#FFFFFF">&nbsp;</TD>
    <TD align=right bgcolor="#FFFFFF">&nbsp;</TD>
    <TD align=right bgcolor="#FFFFFF">&nbsp;</TD>
    <TD align=left bgcolor="#FFFFFF">&nbsp;</TD>
    <TD align=left bgcolor="#FFFFFF">&nbsp;</TD>
    <TD align=right bgcolor="#FFFFFF">&nbsp;</TD>
    <TD align=right bgcolor="#FFFFFF">&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left bgcolor="#E6EFFF">San Agustin </TD>
    <TD width="8%" align=left bgcolor="#E6EFFF">Mexico </TD>
    <TD width="8%" align=left bgcolor="#E6EFFF">Indicated </TD>
    <TD width="8%" align=right bgcolor="#E6EFFF">121.00 </TD>
    <TD width="8%" align=right bgcolor="#E6EFFF">12.3 </TD>
    <TD width="8%" align=right bgcolor="#E6EFFF">0.4 </TD>
    <TD width="8%" align=right bgcolor="#E6EFFF">0.06 </TD>
    <TD width="8%" align=right bgcolor="#E6EFFF">0.49 </TD>
    <TD width="8%" align=left bgcolor="#E6EFFF">&nbsp; </TD>
    <TD width="8%" align=left bgcolor="#E6EFFF">&nbsp; </TD>
    <TD width="8%" align=right bgcolor="#E6EFFF">47.8 </TD>
    <TD width="8%" align=right bgcolor="#E6EFFF">1.59 </TD></TR>
  <TR vAlign=top>
    <TD bgColor=#FFFFFF align=left>&nbsp;</TD>
    <TD bgColor=#FFFFFF align=left>&nbsp;</TD>
    <TD bgColor=#FFFFFF align=left>&nbsp;</TD>
    <TD bgColor=#FFFFFF align=right>&nbsp;</TD>
    <TD bgColor=#FFFFFF align=right>&nbsp;</TD>
    <TD bgColor=#FFFFFF align=left>&nbsp;</TD>
    <TD bgColor=#FFFFFF align=left>&nbsp;</TD>
    <TD bgColor=#FFFFFF align=left>&nbsp;</TD>
    <TD bgColor=#FFFFFF align=left>&nbsp;</TD>
    <TD bgColor=#FFFFFF align=right>&nbsp;</TD>
    <TD bgColor=#FFFFFF align=right>&nbsp;</TD>
    <TD bgColor=#FFFFFF align=left>&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD bgColor=#E6EFFF align=left>Berenguela </TD>
    <TD bgColor=#E6EFFF width="8%" align=left>Peru </TD>
    <TD bgColor=#E6EFFF width="8%" align=left>Indicated </TD>
    <TD bgColor=#E6EFFF width="8%" align=right>15.60 </TD>
    <TD bgColor=#E6EFFF width="8%" align=right>132.0 </TD>
    <TD bgColor=#E6EFFF width="8%" align=left>&nbsp; </TD>
    <TD bgColor=#E6EFFF width="8%" align=left>&nbsp; </TD>
    <TD bgColor=#E6EFFF width="8%" align=left>&nbsp; </TD>
    <TD bgColor=#E6EFFF width="8%" align=left>&nbsp; </TD>
    <TD bgColor=#E6EFFF width="8%" align=right>0.92 </TD>
    <TD bgColor=#E6EFFF width="8%" align=right>66.1 </TD>
    <TD bgColor=#E6EFFF width="8%" align=left>&nbsp; </TD></TR>
  <TR vAlign=top>
    <TD align=left bgcolor="#FFFFFF">&nbsp;</TD>
    <TD align=left bgcolor="#FFFFFF">&nbsp;</TD>
    <TD align=left bgcolor="#FFFFFF">&nbsp;</TD>
    <TD align=right bgcolor="#FFFFFF">&nbsp;</TD>
    <TD align=right bgcolor="#FFFFFF">&nbsp;</TD>
    <TD align=left bgcolor="#FFFFFF">&nbsp;</TD>
    <TD align=left bgcolor="#FFFFFF">&nbsp;</TD>
    <TD align=left bgcolor="#FFFFFF">&nbsp;</TD>
    <TD align=left bgcolor="#FFFFFF">&nbsp;</TD>
    <TD align=left bgcolor="#FFFFFF">&nbsp;</TD>
    <TD align=right bgcolor="#FFFFFF">&nbsp;</TD>
    <TD align=left bgcolor="#FFFFFF">&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left bgcolor="#E6EFFF">Challacollo </TD>
    <TD width="8%" align=left bgcolor="#E6EFFF">Chile </TD>
    <TD width="8%" align=left bgcolor="#E6EFFF">Indicated </TD>
    <TD width="8%" align=right bgcolor="#E6EFFF">3.39 </TD>
    <TD width="8%" align=right bgcolor="#E6EFFF">170.6 </TD>
    <TD width="8%" align=left bgcolor="#E6EFFF">&nbsp; </TD>
    <TD width="8%" align=left bgcolor="#E6EFFF">&nbsp; </TD>
    <TD width="8%" align=left bgcolor="#E6EFFF">&nbsp; </TD>
    <TD width="8%" align=left bgcolor="#E6EFFF">&nbsp; </TD>
    <TD width="8%" align=left bgcolor="#E6EFFF">&nbsp; </TD>
    <TD width="8%" align=right bgcolor="#E6EFFF">18.6 </TD>
    <TD width="8%" align=left bgcolor="#E6EFFF">&nbsp; </TD></TR>
  <TR vAlign=top>
    <TD bgColor=#FFFFFF align=left>&nbsp;</TD>
    <TD bgColor=#FFFFFF align=left>&nbsp;</TD>
    <TD bgColor=#FFFFFF align=left>&nbsp;</TD>
    <TD bgColor=#FFFFFF align=right>&nbsp;</TD>
    <TD bgColor=#FFFFFF align=right>&nbsp;</TD>
    <TD bgColor=#FFFFFF align=right>&nbsp;</TD>
    <TD bgColor=#FFFFFF align=left>&nbsp;</TD>
    <TD bgColor=#FFFFFF align=left>&nbsp;</TD>
    <TD bgColor=#FFFFFF align=left>&nbsp;</TD>
    <TD bgColor=#FFFFFF align=left>&nbsp;</TD>
    <TD bgColor=#FFFFFF align=right>&nbsp;</TD>
    <TD bgColor=#FFFFFF align=right>&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD bgColor=#E6EFFF align=left>Candelaria </TD>
    <TD bgColor=#E6EFFF width="8%" align=left>U.S. </TD>
    <TD bgColor=#E6EFFF width="8%" align=left>Measured </TD>
    <TD bgColor=#E6EFFF width="8%" align=right>3.08 </TD>
    <TD bgColor=#E6EFFF width="8%" align=right>152.2 </TD>
    <TD bgColor=#E6EFFF width="8%" align=right>0.1 </TD>
    <TD bgColor=#E6EFFF width="8%" align=left>&nbsp; </TD>
    <TD bgColor=#E6EFFF width="8%" align=left>&nbsp; </TD>
    <TD bgColor=#E6EFFF width="8%" align=left>&nbsp; </TD>
    <TD bgColor=#E6EFFF width="8%" align=left>&nbsp; </TD>
    <TD bgColor=#E6EFFF width="8%" align=right>15.1 </TD>
    <TD bgColor=#E6EFFF width="8%" align=right>0.01 </TD></TR>
  <TR vAlign=top>
    <TD align=left bgcolor="#E6EFFF">&nbsp; </TD>
    <TD width="8%" align=left bgcolor="#E6EFFF">&nbsp; </TD>
    <TD width="8%" align=left bgcolor="#E6EFFF">Indicated </TD>
    <TD width="8%" align=right bgcolor="#E6EFFF">9.28 </TD>
    <TD width="8%" align=right bgcolor="#E6EFFF">97.4 </TD>
    <TD width="8%" align=right bgcolor="#E6EFFF">0.1 </TD>
    <TD width="8%" align=left bgcolor="#E6EFFF">&nbsp; </TD>
    <TD width="8%" align=left bgcolor="#E6EFFF">&nbsp; </TD>
    <TD width="8%" align=left bgcolor="#E6EFFF">&nbsp; </TD>
    <TD width="8%" align=left bgcolor="#E6EFFF">&nbsp; </TD>
    <TD width="8%" align=right bgcolor="#E6EFFF">29.0 </TD>
    <TD width="8%" align=right bgcolor="#E6EFFF">0.03 </TD></TR>
  <TR vAlign=top>
    <TD bgColor=#FFFFFF align=left>&nbsp;</TD>
    <TD bgColor=#FFFFFF align=left>&nbsp;</TD>
    <TD bgColor=#FFFFFF align=left>&nbsp;</TD>
    <TD bgColor=#FFFFFF align=right>&nbsp;</TD>
    <TD bgColor=#FFFFFF align=right>&nbsp;</TD>
    <TD bgColor=#FFFFFF align=left>&nbsp;</TD>
    <TD bgColor=#FFFFFF align=left>&nbsp;</TD>
    <TD bgColor=#FFFFFF align=left>&nbsp;</TD>
    <TD bgColor=#FFFFFF align=left>&nbsp;</TD>
    <TD bgColor=#FFFFFF align=left>&nbsp;</TD>
    <TD bgColor=#FFFFFF align=right>&nbsp;</TD>
    <TD bgColor=#FFFFFF align=left>&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD bgColor=#E6EFFF align=left>Maverick Springs<br>
      (100% of Ag) </TD>
    <TD bgColor=#E6EFFF width="8%" align=left>U.S. </TD>
    <TD bgColor=#E6EFFF width="8%" align=left>Indicated </TD>
    <TD bgColor=#E6EFFF width="8%" align=right>63.19 </TD>
    <TD bgColor=#E6EFFF width="8%" align=right>34.3 </TD>
    <TD bgColor=#E6EFFF width="8%" align=left>&nbsp; </TD>
    <TD bgColor=#E6EFFF width="8%" align=left>&nbsp; </TD>
    <TD bgColor=#E6EFFF width="8%" align=left>&nbsp; </TD>
    <TD bgColor=#E6EFFF width="8%" align=left>&nbsp; </TD>
    <TD bgColor=#E6EFFF width="8%" align=left>&nbsp; </TD>
    <TD bgColor=#E6EFFF width="8%" align=right>69.6 </TD>
    <TD bgColor=#E6EFFF width="8%" align=left>&nbsp; </TD></TR>
  <TR vAlign=top>
    <TD bgColor=#FFFFFF align=left>&nbsp;</TD>
    <TD bgColor=#FFFFFF align=left>&nbsp;</TD>
    <TD bgColor=#FFFFFF align=left>&nbsp;</TD>
    <TD bgColor=#FFFFFF align=right>&nbsp;</TD>
    <TD bgColor=#FFFFFF align=right>&nbsp;</TD>
    <TD bgColor=#FFFFFF align=right>&nbsp;</TD>
    <TD bgColor=#FFFFFF align=right>&nbsp;</TD>
    <TD bgColor=#FFFFFF align=right>&nbsp;</TD>
    <TD bgColor=#FFFFFF align=left>&nbsp;</TD>
    <TD bgColor=#FFFFFF align=left>&nbsp;</TD>
    <TD bgColor=#FFFFFF align=right>&nbsp;</TD>
    <TD bgColor=#FFFFFF align=right>&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD bgColor=#E6EFFF align=left>Sunrise Lake </TD>
    <TD bgColor=#E6EFFF width="8%" align=left>Canada </TD>
    <TD bgColor=#E6EFFF width="8%" align=left>Indicated </TD>
    <TD bgColor=#E6EFFF width="8%" align=right>1.52 </TD>
    <TD bgColor=#E6EFFF width="8%" align=right>262.0 </TD>
    <TD bgColor=#E6EFFF width="8%" align=right>0.7 </TD>
    <TD bgColor=#E6EFFF width="8%" align=right>2.39 </TD>
    <TD bgColor=#E6EFFF width="8%" align=right>5.99 </TD>
    <TD bgColor=#E6EFFF width="8%" align=left>&nbsp; </TD>
    <TD bgColor=#E6EFFF width="8%" align=left>&nbsp; </TD>
    <TD bgColor=#E6EFFF width="8%" align=right>12.8 </TD>
    <TD bgColor=#E6EFFF width="8%" align=right>0.03 </TD></TR>
  <TR vAlign=top>
    <TD bgColor=#FFFFFF align=left>&nbsp;</TD>
    <TD bgColor=#FFFFFF align=left>&nbsp;</TD>
    <TD bgColor=#FFFFFF align=left>&nbsp;</TD>
    <TD bgColor=#FFFFFF align=right>&nbsp;</TD>
    <TD bgColor=#FFFFFF align=right>&nbsp;</TD>
    <TD bgColor=#FFFFFF align=right>&nbsp;</TD>
    <TD bgColor=#FFFFFF align=right>&nbsp;</TD>
    <TD bgColor=#FFFFFF align=right>&nbsp;</TD>
    <TD bgColor=#FFFFFF align=left>&nbsp;</TD>
    <TD bgColor=#FFFFFF align=left>&nbsp;</TD>
    <TD bgColor=#FFFFFF align=right>&nbsp;</TD>
    <TD bgColor=#FFFFFF align=right>&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD colSpan=2 align=left bgcolor="#FFFFFF"><B><U>INFERRED MINERAL RESOURCES:</U></B> </TD>
    <TD width="8%" align=left bgcolor="#FFFFFF">&nbsp; </TD>
    <TD width="8%" align=left bgcolor="#FFFFFF">&nbsp; </TD>
    <TD width="8%" align=left bgcolor="#FFFFFF">&nbsp; </TD>
    <TD width="8%" align=left bgcolor="#FFFFFF">&nbsp; </TD>
    <TD width="8%" align=left bgcolor="#FFFFFF">&nbsp; </TD>
    <TD width="8%" align=left bgcolor="#FFFFFF">&nbsp; </TD>
    <TD width="8%" align=left bgcolor="#FFFFFF">&nbsp; </TD>
    <TD width="8%" align=left bgcolor="#FFFFFF">&nbsp; </TD>
    <TD width="8%" align=left bgcolor="#FFFFFF">&nbsp; </TD>
    <TD width="8%" align=left bgcolor="#FFFFFF">&nbsp; </TD></TR>
  <TR vAlign=top>
    <TD colSpan=2 align=left bgcolor="#FFFFFF">&nbsp;</TD>
    <TD align=left bgcolor="#FFFFFF">&nbsp;</TD>
    <TD align=left bgcolor="#FFFFFF">&nbsp;</TD>
    <TD align=left bgcolor="#FFFFFF">&nbsp;</TD>
    <TD align=left bgcolor="#FFFFFF">&nbsp;</TD>
    <TD align=left bgcolor="#FFFFFF">&nbsp;</TD>
    <TD align=left bgcolor="#FFFFFF">&nbsp;</TD>
    <TD align=left bgcolor="#FFFFFF">&nbsp;</TD>
    <TD align=left bgcolor="#FFFFFF">&nbsp;</TD>
    <TD align=left bgcolor="#FFFFFF">&nbsp;</TD>
    <TD align=left bgcolor="#FFFFFF">&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD bgColor=#E6EFFF align=left>Pirquitas </TD>
    <TD bgColor=#E6EFFF width="8%" align=left>Argentina </TD>
    <TD bgColor=#E6EFFF width="8%" align=left>Inferred </TD>
    <TD bgColor=#E6EFFF width="8%" align=right>7.00 </TD>
    <TD bgColor=#E6EFFF width="8%" align=right>99.7 </TD>
    <TD bgColor=#E6EFFF width="8%" align=left>&nbsp; </TD>
    <TD bgColor=#E6EFFF width="8%" align=left>&nbsp; </TD>
    <TD bgColor=#E6EFFF width="8%" align=right>2.90 </TD>
    <TD bgColor=#E6EFFF width="8%" align=left>&nbsp; </TD>
    <TD bgColor=#E6EFFF width="8%" align=left>&nbsp; </TD>
    <TD bgColor=#E6EFFF width="8%" align=right>22.6 </TD>
    <TD bgColor=#E6EFFF width="8%" align=left>&nbsp; </TD></TR>
  <TR vAlign=top>
    <TD align=left bgcolor="#FFFFFF">&nbsp;</TD>
    <TD align=left bgcolor="#FFFFFF">&nbsp;</TD>
    <TD align=left bgcolor="#FFFFFF">&nbsp;</TD>
    <TD align=right bgcolor="#FFFFFF">&nbsp;</TD>
    <TD align=right bgcolor="#FFFFFF">&nbsp;</TD>
    <TD align=left bgcolor="#FFFFFF">&nbsp;</TD>
    <TD align=right bgcolor="#FFFFFF">&nbsp;</TD>
    <TD align=right bgcolor="#FFFFFF">&nbsp;</TD>
    <TD align=left bgcolor="#FFFFFF">&nbsp;</TD>
    <TD align=left bgcolor="#FFFFFF">&nbsp;</TD>
    <TD align=right bgcolor="#FFFFFF">&nbsp;</TD>
    <TD align=left bgcolor="#FFFFFF">&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left bgcolor="#E6EFFF">Pitarrilla </TD>
    <TD width="8%" align=left bgcolor="#E6EFFF">Mexico </TD>
    <TD width="8%" align=left bgcolor="#E6EFFF">Inferred* </TD>
    <TD width="8%" align=right bgcolor="#E6EFFF">31.30 </TD>
    <TD width="8%" align=right bgcolor="#E6EFFF">64.7 </TD>
    <TD width="8%" align=left bgcolor="#E6EFFF">&nbsp; </TD>
    <TD width="8%" align=right bgcolor="#E6EFFF">0.18 </TD>
    <TD width="8%" align=right bgcolor="#E6EFFF">0.44 </TD>
    <TD width="8%" align=left bgcolor="#E6EFFF">&nbsp; </TD>
    <TD width="8%" align=left bgcolor="#E6EFFF">&nbsp; </TD>
    <TD width="8%" align=right bgcolor="#E6EFFF">65.0 </TD>
    <TD width="8%" align=left bgcolor="#E6EFFF">&nbsp; </TD></TR>
  <TR vAlign=top>
    <TD bgColor=#FFFFFF align=left>&nbsp;</TD>
    <TD bgColor=#FFFFFF align=left>&nbsp;</TD>
    <TD bgColor=#FFFFFF align=left>&nbsp;</TD>
    <TD bgColor=#FFFFFF align=right>&nbsp;</TD>
    <TD bgColor=#FFFFFF align=right>&nbsp;</TD>
    <TD bgColor=#FFFFFF align=right>&nbsp;</TD>
    <TD bgColor=#FFFFFF align=left>&nbsp;</TD>
    <TD bgColor=#FFFFFF align=left>&nbsp;</TD>
    <TD bgColor=#FFFFFF align=left>&nbsp;</TD>
    <TD bgColor=#FFFFFF align=left>&nbsp;</TD>
    <TD bgColor=#FFFFFF align=right>&nbsp;</TD>
    <TD bgColor=#FFFFFF align=right>&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD bgColor=#E6EFFF align=left>Diablillos </TD>
    <TD bgColor=#E6EFFF width="8%" align=left>Argentina </TD>
    <TD bgColor=#E6EFFF width="8%" align=left>Inferred </TD>
    <TD bgColor=#E6EFFF width="8%" align=right>7.20 </TD>
    <TD bgColor=#E6EFFF width="8%" align=right>27.0 </TD>
    <TD bgColor=#E6EFFF width="8%" align=right>0.8 </TD>
    <TD bgColor=#E6EFFF width="8%" align=left>&nbsp; </TD>
    <TD bgColor=#E6EFFF width="8%" align=left>&nbsp; </TD>
    <TD bgColor=#E6EFFF width="8%" align=left>&nbsp; </TD>
    <TD bgColor=#E6EFFF width="8%" align=left>&nbsp; </TD>
    <TD bgColor=#E6EFFF width="8%" align=right>6.3 </TD>
    <TD bgColor=#E6EFFF width="8%" align=right>0.19 </TD></TR>
  <TR vAlign=top>
    <TD bgColor=#FFFFFF align=left>&nbsp;</TD>
    <TD bgColor=#FFFFFF align=left>&nbsp;</TD>
    <TD bgColor=#FFFFFF align=left>&nbsp;</TD>
    <TD bgColor=#FFFFFF align=right>&nbsp;</TD>
    <TD bgColor=#FFFFFF align=right>&nbsp;</TD>
    <TD bgColor=#FFFFFF align=right>&nbsp;</TD>
    <TD bgColor=#FFFFFF align=left>&nbsp;</TD>
    <TD bgColor=#FFFFFF align=left>&nbsp;</TD>
    <TD bgColor=#FFFFFF align=left>&nbsp;</TD>
    <TD bgColor=#FFFFFF align=left>&nbsp;</TD>
    <TD bgColor=#FFFFFF align=right>&nbsp;</TD>
    <TD bgColor=#FFFFFF align=right>&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left bgcolor="#E6EFFF">San Agustin </TD>
    <TD width="8%" align=left bgcolor="#E6EFFF">Mexico </TD>
    <TD width="8%" align=left bgcolor="#E6EFFF">Inferred </TD>
    <TD width="8%" align=right bgcolor="#E6EFFF">91.20 </TD>
    <TD width="8%" align=right bgcolor="#E6EFFF">12.6 </TD>
    <TD width="8%" align=right bgcolor="#E6EFFF">0.4 </TD>
    <TD width="8%" align=right bgcolor="#E6EFFF">0.07 </TD>
    <TD width="8%" align=right bgcolor="#E6EFFF">0.48 </TD>
    <TD width="8%" align=left bgcolor="#E6EFFF">&nbsp; </TD>
    <TD width="8%" align=left bgcolor="#E6EFFF">&nbsp; </TD>
    <TD width="8%" align=right bgcolor="#E6EFFF">36.9 </TD>
    <TD width="8%" align=right bgcolor="#E6EFFF">1.06 </TD></TR>
  <TR vAlign=top>
    <TD bgColor=#FFFFFF align=left>&nbsp;</TD>
    <TD bgColor=#FFFFFF align=left>&nbsp;</TD>
    <TD bgColor=#FFFFFF align=left>&nbsp;</TD>
    <TD bgColor=#FFFFFF align=right>&nbsp;</TD>
    <TD bgColor=#FFFFFF align=right>&nbsp;</TD>
    <TD bgColor=#FFFFFF align=left>&nbsp;</TD>
    <TD bgColor=#FFFFFF align=left>&nbsp;</TD>
    <TD bgColor=#FFFFFF align=left>&nbsp;</TD>
    <TD bgColor=#FFFFFF align=left>&nbsp;</TD>
    <TD bgColor=#FFFFFF align=right>&nbsp;</TD>
    <TD bgColor=#FFFFFF align=right>&nbsp;</TD>
    <TD bgColor=#FFFFFF align=left>&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD bgColor=#E6EFFF align=left>Berenguela </TD>
    <TD bgColor=#E6EFFF width="8%" align=left>Peru </TD>
    <TD bgColor=#E6EFFF width="8%" align=left>Inferred </TD>
    <TD bgColor=#E6EFFF width="8%" align=right>6.00 </TD>
    <TD bgColor=#E6EFFF width="8%" align=right>111.7 </TD>
    <TD bgColor=#E6EFFF width="8%" align=left>&nbsp; </TD>
    <TD bgColor=#E6EFFF width="8%" align=left>&nbsp; </TD>
    <TD bgColor=#E6EFFF width="8%" align=left>&nbsp; </TD>
    <TD bgColor=#E6EFFF width="8%" align=left>&nbsp; </TD>
    <TD bgColor=#E6EFFF width="8%" align=right>0.74 </TD>
    <TD bgColor=#E6EFFF width="8%" align=right>21.6 </TD>
    <TD bgColor=#E6EFFF width="8%" align=left>&nbsp; </TD></TR>
  <TR vAlign=top>
    <TD align=left bgcolor="#FFFFFF">&nbsp;</TD>
    <TD align=left bgcolor="#FFFFFF">&nbsp;</TD>
    <TD align=left bgcolor="#FFFFFF">&nbsp;</TD>
    <TD align=right bgcolor="#FFFFFF">&nbsp;</TD>
    <TD align=right bgcolor="#FFFFFF">&nbsp;</TD>
    <TD align=left bgcolor="#FFFFFF">&nbsp;</TD>
    <TD align=left bgcolor="#FFFFFF">&nbsp;</TD>
    <TD align=left bgcolor="#FFFFFF">&nbsp;</TD>
    <TD align=left bgcolor="#FFFFFF">&nbsp;</TD>
    <TD align=left bgcolor="#FFFFFF">&nbsp;</TD>
    <TD align=right bgcolor="#FFFFFF">&nbsp;</TD>
    <TD align=left bgcolor="#FFFFFF">&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left bgcolor="#E6EFFF">Challacollo </TD>
    <TD width="8%" align=left bgcolor="#E6EFFF">Chile </TD>
    <TD width="8%" align=left bgcolor="#E6EFFF">Inferred </TD>
    <TD width="8%" align=right bgcolor="#E6EFFF">4.57 </TD>
    <TD width="8%" align=right bgcolor="#E6EFFF">160.7 </TD>
    <TD width="8%" align=left bgcolor="#E6EFFF">&nbsp; </TD>
    <TD width="8%" align=left bgcolor="#E6EFFF">&nbsp; </TD>
    <TD width="8%" align=left bgcolor="#E6EFFF">&nbsp; </TD>
    <TD width="8%" align=left bgcolor="#E6EFFF">&nbsp; </TD>
    <TD width="8%" align=left bgcolor="#E6EFFF">&nbsp; </TD>
    <TD width="8%" align=right bgcolor="#E6EFFF">23.6 </TD>
    <TD width="8%" align=left bgcolor="#E6EFFF">&nbsp; </TD></TR>
  <TR vAlign=top>
    <TD bgColor=#FFFFFF align=left>&nbsp;</TD>
    <TD bgColor=#FFFFFF align=left>&nbsp;</TD>
    <TD bgColor=#FFFFFF align=left>&nbsp;</TD>
    <TD bgColor=#FFFFFF align=right>&nbsp;</TD>
    <TD bgColor=#FFFFFF align=right>&nbsp;</TD>
    <TD bgColor=#FFFFFF align=right>&nbsp;</TD>
    <TD bgColor=#FFFFFF align=left>&nbsp;</TD>
    <TD bgColor=#FFFFFF align=left>&nbsp;</TD>
    <TD bgColor=#FFFFFF align=left>&nbsp;</TD>
    <TD bgColor=#FFFFFF align=left>&nbsp;</TD>
    <TD bgColor=#FFFFFF align=right>&nbsp;</TD>
    <TD bgColor=#FFFFFF align=right>&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD bgColor=#E6EFFF align=left>Candelaria </TD>
    <TD bgColor=#E6EFFF width="8%" align=left>U.S. </TD>
    <TD bgColor=#E6EFFF width="8%" align=left>Inferred </TD>
    <TD bgColor=#E6EFFF width="8%" align=right>50.53 </TD>
    <TD bgColor=#E6EFFF width="8%" align=right>51.1 </TD>
    <TD bgColor=#E6EFFF width="8%" align=right>0.1 </TD>
    <TD bgColor=#E6EFFF width="8%" align=left>&nbsp; </TD>
    <TD bgColor=#E6EFFF width="8%" align=left>&nbsp; </TD>
    <TD bgColor=#E6EFFF width="8%" align=left>&nbsp; </TD>
    <TD bgColor=#E6EFFF width="8%" align=left>&nbsp; </TD>
    <TD bgColor=#E6EFFF width="8%" align=right>82.8 </TD>
    <TD bgColor=#E6EFFF width="8%" align=right>0.03 </TD></TR>
  <TR vAlign=top>
    <TD align=left bgcolor="#FFFFFF">&nbsp;</TD>
    <TD align=left bgcolor="#FFFFFF">&nbsp;</TD>
    <TD align=left bgcolor="#FFFFFF">&nbsp;</TD>
    <TD align=right bgcolor="#FFFFFF">&nbsp;</TD>
    <TD align=right bgcolor="#FFFFFF">&nbsp;</TD>
    <TD align=left bgcolor="#FFFFFF">&nbsp;</TD>
    <TD align=left bgcolor="#FFFFFF">&nbsp;</TD>
    <TD align=left bgcolor="#FFFFFF">&nbsp;</TD>
    <TD align=left bgcolor="#FFFFFF">&nbsp;</TD>
    <TD align=left bgcolor="#FFFFFF">&nbsp;</TD>
    <TD align=right bgcolor="#FFFFFF">&nbsp;</TD>
    <TD align=left bgcolor="#FFFFFF">&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD align=left bgcolor="#E6EFFF">Maverick Springs<br>
      (100% of Ag) </TD>
    <TD width="8%" align=left bgcolor="#E6EFFF">U.S. </TD>
    <TD width="8%" align=left bgcolor="#E6EFFF">Inferred </TD>
    <TD width="8%" align=right bgcolor="#E6EFFF">77.63 </TD>
    <TD width="8%" align=right bgcolor="#E6EFFF">34.3 </TD>
    <TD width="8%" align=left bgcolor="#E6EFFF">&nbsp; </TD>
    <TD width="8%" align=left bgcolor="#E6EFFF">&nbsp; </TD>
    <TD width="8%" align=left bgcolor="#E6EFFF">&nbsp; </TD>
    <TD width="8%" align=left bgcolor="#E6EFFF">&nbsp; </TD>
    <TD width="8%" align=left bgcolor="#E6EFFF">&nbsp; </TD>
    <TD width="8%" align=right bgcolor="#E6EFFF">85.6 </TD>
    <TD width="8%" align=left bgcolor="#E6EFFF">&nbsp; </TD></TR>
  <TR vAlign=top>
    <TD bgColor=#FFFFFF align=left>&nbsp;</TD>
    <TD bgColor=#FFFFFF width="8%" align=left>&nbsp; </TD>
    <TD bgColor=#FFFFFF width="8%" align=left>&nbsp; </TD>
    <TD bgColor=#FFFFFF width="8%" align=left>&nbsp; </TD>
    <TD bgColor=#FFFFFF width="8%" align=left>&nbsp; </TD>
    <TD bgColor=#FFFFFF width="8%" align=left>&nbsp; </TD>
    <TD bgColor=#FFFFFF width="8%" align=left>&nbsp; </TD>
    <TD bgColor=#FFFFFF width="8%" align=left>&nbsp; </TD>
    <TD bgColor=#FFFFFF width="8%" align=left>&nbsp; </TD>
    <TD bgColor=#FFFFFF width="8%" align=left>&nbsp; </TD>
    <TD bgColor=#FFFFFF width="8%" align=left>&nbsp; </TD>
    <TD bgColor=#FFFFFF width="8%" align=left>&nbsp; </TD>
  </TR>
  <TR vAlign=top>
    <TD align=left bgcolor="#E6EFFF">San Marcial </TD>
    <TD width="8%" align=left bgcolor="#E6EFFF">Mexico </TD>
    <TD width="8%" align=left bgcolor="#E6EFFF">Inferred </TD>
    <TD width="8%" align=right bgcolor="#E6EFFF">2.31 </TD>
    <TD width="8%" align=right bgcolor="#E6EFFF">191.8 </TD>
    <TD width="8%" align=left bgcolor="#E6EFFF">&nbsp; </TD>
    <TD width="8%" align=right bgcolor="#E6EFFF">0.32 </TD>
    <TD width="8%" align=right bgcolor="#E6EFFF">0.66 </TD>
    <TD width="8%" align=left bgcolor="#E6EFFF">&nbsp; </TD>
    <TD width="8%" align=left bgcolor="#E6EFFF">&nbsp; </TD>
    <TD width="8%" align=right bgcolor="#E6EFFF">14.3 </TD>
    <TD width="8%" align=left bgcolor="#E6EFFF">&nbsp; </TD></TR>
  <TR vAlign=top>
    <TD bgColor=#FFFFFF align=left>&nbsp;</TD>
    <TD bgColor=#FFFFFF align=left>&nbsp;</TD>
    <TD bgColor=#FFFFFF align=left>&nbsp;</TD>
    <TD bgColor=#FFFFFF align=right>&nbsp;</TD>
    <TD bgColor=#FFFFFF align=right>&nbsp;</TD>
    <TD bgColor=#FFFFFF align=right>&nbsp;</TD>
    <TD bgColor=#FFFFFF align=right>&nbsp;</TD>
    <TD bgColor=#FFFFFF align=right>&nbsp;</TD>
    <TD bgColor=#FFFFFF align=left>&nbsp;</TD>
    <TD bgColor=#FFFFFF align=left>&nbsp;</TD>
    <TD bgColor=#FFFFFF align=right>&nbsp;</TD>
    <TD bgColor=#FFFFFF align=right>&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD bgColor=#E6EFFF align=left>Sunrise Lake </TD>
    <TD bgColor=#E6EFFF width="8%" align=left>Canada </TD>
    <TD bgColor=#E6EFFF width="8%" align=left>Inferred </TD>
    <TD bgColor=#E6EFFF width="8%" align=right>2.56 </TD>
    <TD bgColor=#E6EFFF width="8%" align=right>169.0 </TD>
    <TD bgColor=#E6EFFF width="8%" align=right>0.5 </TD>
    <TD bgColor=#E6EFFF width="8%" align=right>1.92 </TD>
    <TD bgColor=#E6EFFF width="8%" align=right>4.42 </TD>
    <TD bgColor=#E6EFFF width="8%" align=left>&nbsp; </TD>
    <TD bgColor=#E6EFFF width="8%" align=left>&nbsp; </TD>
    <TD bgColor=#E6EFFF width="8%" align=right>13.9 </TD>
    <TD bgColor=#E6EFFF width="8%" align=right>0.04 </TD></TR>
  <TR vAlign=top>
    <TD colSpan=2 align=left bgcolor="#FFFFFF">&nbsp;</TD>
    <TD align=left bgcolor="#FFFFFF">&nbsp;</TD>
    <TD align=left bgcolor="#FFFFFF">&nbsp;</TD>
    <TD align=left bgcolor="#FFFFFF">&nbsp;</TD>
    <TD align=left bgcolor="#FFFFFF">&nbsp;</TD>
    <TD align=left bgcolor="#FFFFFF">&nbsp;</TD>
    <TD align=left bgcolor="#FFFFFF">&nbsp;</TD>
    <TD align=left bgcolor="#FFFFFF">&nbsp;</TD>
    <TD align=left bgcolor="#FFFFFF">&nbsp;</TD>
    <TD align=left bgcolor="#FFFFFF">&nbsp;</TD>
    <TD align=left bgcolor="#FFFFFF">&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD colSpan=2 align=left bgcolor="#FFFFFF"><B><U>HISTORICAL RESOURCES:</U></B> </TD>
    <TD width="8%" align=left bgcolor="#FFFFFF">&nbsp; </TD>
    <TD width="8%" align=left bgcolor="#FFFFFF">&nbsp; </TD>
    <TD width="8%" align=left bgcolor="#FFFFFF">&nbsp; </TD>
    <TD width="8%" align=left bgcolor="#FFFFFF">&nbsp; </TD>
    <TD width="8%" align=left bgcolor="#FFFFFF">&nbsp; </TD>
    <TD width="8%" align=left bgcolor="#FFFFFF">&nbsp; </TD>
    <TD width="8%" align=left bgcolor="#FFFFFF">&nbsp; </TD>
    <TD width="8%" align=left bgcolor="#FFFFFF">&nbsp; </TD>
    <TD width="8%" align=left bgcolor="#FFFFFF">&nbsp; </TD>
    <TD width="8%" align=left bgcolor="#FFFFFF">&nbsp; </TD>
  </TR>
  <TR vAlign=top>
    <TD bgColor=#FFFFFF align=left>&nbsp;</TD>
    <TD bgColor=#FFFFFF align=left>&nbsp;</TD>
    <TD bgColor=#FFFFFF align=center>&nbsp;</TD>
    <TD bgColor=#FFFFFF align=right>&nbsp;</TD>
    <TD bgColor=#FFFFFF align=right>&nbsp;</TD>
    <TD bgColor=#FFFFFF align=left>&nbsp;</TD>
    <TD bgColor=#FFFFFF align=left>&nbsp;</TD>
    <TD bgColor=#FFFFFF align=left>&nbsp;</TD>
    <TD bgColor=#FFFFFF align=left>&nbsp;</TD>
    <TD bgColor=#FFFFFF align=left>&nbsp;</TD>
    <TD bgColor=#FFFFFF align=right>&nbsp;</TD>
    <TD bgColor=#FFFFFF align=left>&nbsp;</TD>
  </TR>
  <TR vAlign=top>
    <TD bgColor=#E6EFFF align=left>Veta Colorada </TD>
    <TD bgColor=#E6EFFF width="8%" align=left>&nbsp; </TD>
    <TD bgColor=#E6EFFF width="8%" align=left>N/A </TD>
    <TD bgColor=#E6EFFF width="8%" align=right>4.02 </TD>
    <TD bgColor=#E6EFFF width="8%" align=right>248.8 </TD>
    <TD bgColor=#E6EFFF width="8%" align=left>&nbsp; </TD>
    <TD bgColor=#E6EFFF width="8%" align=left>&nbsp; </TD>
    <TD bgColor=#E6EFFF width="8%" align=left>&nbsp; </TD>
    <TD bgColor=#E6EFFF width="8%" align=left>&nbsp; </TD>
    <TD bgColor=#E6EFFF width="8%" align=left>&nbsp; </TD>
    <TD bgColor=#E6EFFF width="8%" align=right>32.1 </TD>
  <TD bgColor=#E6EFFF width="8%" align=left>&nbsp;</TD></TR></TABLE>
</DIV>
<P align=justify>^ Pirquitas and Pitarrilla Measured and Indicated Mineral
Resources are inclusive of Mineral Reserve. <BR>* Pitarrilla Mineral Resources
are estimated as of January 31, 2012. </P>
<P align=center>10 </P>
<HR style="PAGE-BREAK-AFTER: always" align=center color=black SIZE=5
width="100%" noShade>
<A name=page_11></A>
<P align=justify>Notes to Mineral Reserves and Resources Table: </P>
<P align=justify>Table 1 has been prepared in accordance with National
Instrument 43-101 and Companion Policy 43-101CP. All Mineral Resource estimates
in the Measured and Indicated categories are reported inclusive of Mineral
Reserve estimates. Mineral Reserve and Resource estimates were prepared by the
Qualified Persons named below for the respective properties. Dr. Warwick Board,
Ph.D. (Geology), P.Geo., who is a Qualified Person as defined under National
Instrument 43-101, has reviewed and approved the contents of this table. All
Technical Reports and News Releases referenced below are available on the
Company's website at <U><FONT color=#0000ff>www.silverstandard.com</FONT></U>.
</P>
<P align=justify>Pirquitas </P>
<UL style="TEXT-ALIGN: justify">
  <LI>Mineral Reserve and Mineral Resource estimates shown in Table 1 are as at
  December 31, 2011. The Mineral Reserve estimates are presented at a cut-off of
  US$35.52 per tonne NSR, using US$25.00 per troy ounce silver, US$2,403.00 per
  tonne zinc, and recoveries of 79.8% for silver and 42.9% for zinc. The Mineral
  Resource estimates are reported using a cut- off grade of 50.0 grams per tonne
  silver. The Qualified Persons for the Pirquitas Mineral Reserve estimates are
  R. Bruce Kennedy, P. E., and Trevor Yeomans, P. Eng. The Qualified Person for
  the Pirquitas Mineral Resource estimates is Dr. Warwick Board, P. Geo. Please
  refer to the Company's Technical Report dated effective December 23, 2011,
  titled "NI 43- 101 Technical Report on the Pirquitas Mine, Jujuy Province,
  Argentina", which is available on the Company&#146;s website. Mineral Reserve
  estimates have been adjusted for mine depletion in Q4 2011. </LI></UL>
<P align=justify>Pitarrilla </P>
<UL style="TEXT-ALIGN: justify">
  <LI>Mineral Reserve estimates were generated for the underground sulphide
  deposit known as the Breccia Ridge Zone, as presented in the Company's
  Technical Report dated effective September 21, 2009, and titled "NI 43-101
  Technical Report - Pitarrilla Property Pre-Feasibility Study". Mineral
  Reserves were estimated at a US$50.00 per tonne NSR cut-off using US$11.00 per
  troy ounce silver, US$0.50 per pound lead, and US$0.70 per pound zinc, and
  metal recoveries of 88.4% for silver, 89.6% for lead, and 93.2% for zinc.
  Mineral Resources for the Breccia Ridge Zone, on which the Mineral Reserves
  were based, were disclosed in the Company&#146;s Technical Report dated effective
  August 3, 2008, and titled &#147;Technical Report and Resource Estimate on the La
  Pitarrilla Property, Breccia Ridge Deposit, Durango, Mexico&#148;. The Qualified
  Persons for the Breccia Ridge Zone Mineral Reserves and Mineral Resources are
  Jacqueline McAra, P. Eng., Marinus A. de Ruijter, P. Eng., Iouri Iakovlev, P.
  Eng., Hasan Ozturk, P. Eng., Miloje Vicentijevic, P. Eng., Peter Wells,
  P.SAIMM and Scott Cowie, MAusIMM. from Wardrop; Dr. Wayne D. Ewert, P. Geo.,
  Tracy J. Armstrong, P. Geo, and Eugene Puritch, P. Eng. from P &amp; E; Daniel
  Friedman, P. Eng. and Robert A. Mercer, P. Eng. from Knight Piesold. *Updated
  Mineral Resource estimates were prepared for the entire Pitarrilla Project
  (i.e., including the Breccia Ridge, Cordon Colorado, Pe&#241;a Dike, Javelina
  Creek, and South Ridge Zones), and were disclosed in the Company's News
  Release dated February 27, 2012. The updated Mineral Resource estimates are
  reported at a 30.0 gram per tonne silver cut-off grade. The Qualified Person
  for the updated Pitarrilla Mineral Resources estimate is Dr. Warwick Board,
  Ph.D. (Geology), P.Geo. </LI></UL>
<P align=justify>San Luis </P>
<UL style="TEXT-ALIGN: justify">
  <LI>Mineral Reserve estimates are reported at a cut-off grade of 6.0 grams per
  tonne gold equivalent, based on US$800.00 per troy ounce gold, US$12.50 per
  troy ounce silver, and recoveries of 94% gold and 90% silver, as presented in
  the Company&#146;s Technical Report dated effective June 4, 2010, and titled
  &#147;Technical Report for the San Luis Project Feasibility Study, Ancash
  Department, Peru&#148;. Mineral Resource estimates are reported at a cut-off grade
  of 6.0 grams per tonne gold equivalent, based on US$600.00 per troy ounce gold
  and US$9.25 per troy ounce silver, as presented in the Company&#146;s Technical
  Report dated effective January 9, 2009, and titled &#147;Updated Mineral Resource
  Estimate, San Luis Project, Ancash Department, Peru&#148;. The Qualified Persons
  for the San Luis Mineral Reserve and Mineral Resource estimates are
  Christopher Edward Kaye, MAusIMM, Clinton Strachan, P.E., Steve L. Milne, P.E.
  Resources, Michael J. Lechner, P.Geo., Donald Earnest, P.G., and Robert
  Michael Robb, P.E. </LI></UL>
<P align=justify>Diablillos </P>
<UL style="TEXT-ALIGN: justify">
  <LI>Mineral Resources are estimated at a cut-off grade of US$10.00 recovered
  metal value (RMV), using US$700 per troy ounce gold and US$11.00 per troy
  ounce silver, and recoveries of 65% gold and 40% silver, as presented in the
  Company&#146;s Technical Report dated effective July 27, 2009, and titled
  &#147;Technical Report on the Diablillos Property &#150; Salta and Catamarca Provinces,
  Argentina&#148;. The Qualified Persons for the Diablillos Mineral Resource
  estimates are J. Douglas Blanchflower, P. Geo. and Dr. Gilles Arseneau, P.
  Geo. </LI></UL>
<P align=justify>San Agustin </P>
<UL style="TEXT-ALIGN: justify">
  <LI>Mineral Resources are estimated at a cut-off grade of US$3.40 RMV for
  oxide material, and at a cut-off grade of US$6.25 RMV for sulphide material,
  using US$631.97 per troy ounce gold, US$11.63 per troy ounce silver, US$1.11
  per pound zinc and US$0.78 per pound lead, and recoveries of 72% gold, 74%
  silver, 62% zinc, and 50% lead, as presented in the Company&#146;s Technical Report dated
effective March 30, 2009, and titled &#147;San Agustin Resource Estimate&#148;. The
Qualified Person for the San Agustin Mineral Resource estimate is Dr. Gilles
Arseneau, P. Geo. </LI></UL>
<P align=center>11</P>
<HR style="PAGE-BREAK-AFTER: always" align=center color=black SIZE=5
width="100%" noShade>
<A name=page_12></A>
<P align=justify>Berenguela </P>
<UL style="TEXT-ALIGN: justify">
  <LI>Mineral Resources are estimated at a cut-off of 50 grams per tonne silver,
  as presented in the Company&#146;s Technical Report dated effective 26 October
  2005, and titled &#147;Technical Report on the Berenguela Property, South-central
  Peru&#148;. The Qualified Person for the Berenguela Mineral Resource estimate is
  James A. McCrea, P. Geo. </LI></UL>
<P align=justify>Challacollo </P>
<UL style="TEXT-ALIGN: justify">
  <LI>Mineral Resources are estimated using a cut-off of 50 grams per tonne
  silver, as disclosed in the Company&#146;s 20-F dated effective December 31, 2010.
  The Qualified Person for the Challacollo Mineral Resource estimate, dated
  September 17, 2003, is C.Stewart Wallis, P.G., P. Geo. </LI></UL>
<P align=justify>Candelaria </P>
<UL style="TEXT-ALIGN: justify">
  <LI>Mineral Resources are estimated using a cut-off of 0.5 troy ounces per ton
  soluble silver for the lode resources, and are inclusive of leach pad and low
  grade stockpile material, as presented in the Company&#146;s Technical Report dated
  effective May 24, 2001, and titled &#147;Candelaria Project Technical Report&#148;. The
  Qualified Person for the Candelaria Mineral Resource estimate is Mark G.
  Stevens, P.G. </LI></UL>
<P align=justify>Maverick Springs </P>
<UL style="TEXT-ALIGN: justify">
  <LI>Mineral Resources are estimated using a cut-off of 1.0 troy ounce per ton
  silver equivalent, based on US$327.00 per troy ounce gold and US$4.77 per troy
  ounce silver, as per the Company&#146;s Technical Report dated effective April 13,
  2004, and titled &#147;Technical Report, Maverick Springs Project, Nevada, USA&#148;.
  Silver Standard controls 100% of contained silver resources and Allied Nevada
  Gold Corporation controls 100% of contained gold resources. The Qualified
  Person for the Maverick Springs Mineral Resource estimate is Neil R. Burns, P.
  Geo. </LI></UL>
<P align=justify>San Marcial </P>
<UL style="TEXT-ALIGN: justify">
  <LI>Mineral Resources are estimated using a cut-off of 30 grams per tonne
  silver, as per the Company&#146;s Technical Report dated effective October 15,
  2002, and titled &#147;Technical Report on the San Marcial Project&#148;. The Qualified
  Persons for the San Marcial Mineral Resource estimates are C. Stewart Wallis,
  P.G., P. Geo. and N. Eric Fier, C.P.G. </LI></UL>
<P align=justify>Sunrise Lake </P>
<UL style="TEXT-ALIGN: justify">
  <LI>Mineral Resources are estimated using a cut-off of 30 grams per tonne
  silver, as per the Company&#146;s Technical Report dated effective September 3,
  2003, and titled &#147;Report on the Sunrise Property, NWT&#148;. The qualified persons
  are Dr. William E. Roscoe, P. Eng., and C. Stewart Wallis, P.G., P.Geo.
</LI></UL>
<P align=center>12 </P>
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</BODY>

</HTML>

</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-99.5
<SEQUENCE>6
<FILENAME>exhibit99-5.htm
<DESCRIPTION>MATERIAL CHANGE
<TEXT>


<HTML>
<HEAD>
   <TITLE>Silver Standard Resources Inc. - Exhibit 99.5 - 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">
<A name=page_1></A>
<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; BORDER-COLLAPSE: collapse; FONT-SIZE: 10pt; "
border=0 cellSpacing=0 cellPadding=0 width="100%">

  <TR vAlign=top>
    <TD width="10%" align=left><B>Item 1</B> </TD>
    <TD width="90%" align=left >
  <P align=justify><B>Name and Address of Company</B> </P></TD></TR>
  <TR>
    <TD>&nbsp; </TD>
    <TD width="90%" >
  <P align=justify> </P></TD></TR>
  <TR vAlign=top>
    <TD align=left>&nbsp; </TD>
    <TD width="90%" align=left >
  <P align=justify>Silver Standard Resources Inc. </P></TD></TR>
  <TR vAlign=top>
    <TD align=left>&nbsp; </TD>
    <TD width="90%" align=left >
  <P align=justify>1400 - 999 West Hastings Street </P></TD></TR>
  <TR vAlign=top>
    <TD align=left>&nbsp; </TD>
    <TD width="90%" align=left >
  <P align=justify>Vancouver, BC V6C 2W2 </P></TD></TR>
  <TR>
    <TD>&nbsp; </TD>
    <TD width="90%" >
  <P align=justify> </P></TD></TR>
  <TR vAlign=top>
    <TD align=left><B>Item 2</B> </TD>
    <TD width="90%" align=left >
  <P align=justify><B>Date of Material Change</B> </P></TD></TR>
  <TR>
    <TD>&nbsp; </TD>
    <TD width="90%" >
  <P align=justify> </P></TD></TR>
  <TR vAlign=top>
    <TD align=left>&nbsp; </TD>
    <TD width="90%" align=left >
  <P align=justify>March 9, 2012 </P></TD></TR>
  <TR>
    <TD>&nbsp; </TD>
    <TD width="90%" >
  <P align=justify> </P></TD></TR>
  <TR vAlign=top>
    <TD align=left><B>Item 3</B> </TD>
    <TD width="90%" align=left >
  <P align=justify><B>News Release</B> </P></TD></TR>
  <TR>
    <TD>&nbsp; </TD>
    <TD width="90%" >
  <P align=justify> </P></TD></TR>
  <TR vAlign=top>
    <TD align=left></TD>
    <TD width="90%" align=left >
      <P align=justify>The news release dated March 12, 2012 was disseminated
  through Marketwire&#146;s Combined Canadian Timely Disclosure Network.  </P></TD></TR>
  <TR>
    <TD>&nbsp; </TD>
    <TD width="90%" >
  <P align=justify> </P></TD></TR>
  <TR vAlign=top>
    <TD align=left><B>Item 4</B> </TD>
    <TD width="90%" align=left >
  <P align=justify><B>Summary of Material Change</B> </P></TD></TR>
  <TR>
    <TD>&nbsp; </TD>
    <TD width="90%" >
  <P align=justify> </P></TD></TR>
  <TR vAlign=top>
    <TD align=left></TD>
    <TD width="90%" align=left >
      <P align=justify>The Company announced that its Board of Directors adopted
      a Shareholder Rights Plan on March 9, 2012. </P></TD></TR>
  <TR>
    <TD>&nbsp; </TD>
    <TD width="90%" >
  <P align=justify> </P></TD></TR>
  <TR vAlign=top>
    <TD align=left><B>Item 5</B> </TD>
    <TD width="90%" align=left >
  <P align=justify><B>Full Description of Material Change</B> </P></TD></TR>
  <TR>
    <TD>&nbsp; </TD>
    <TD width="90%" >
  <P align=justify> </P></TD></TR>
  <TR vAlign=top>
    <TD align=left>&nbsp; </TD>
    <TD width="90%" align=left >
  <P align=justify><B>5.1 Full Description of Material Change</B> </P></TD></TR>
  <TR>
    <TD>&nbsp; </TD>
    <TD width="90%" >
  <P align=justify> </P></TD></TR>
  <TR vAlign=top>
    <TD align=left></TD>
    <TD width="90%" align=left >
      <P align=justify>The Company&#146;s Board of Directors (the "Board") has
      adopted a Shareholder Rights Plan (the "Rights Plan"). The Rights Plan is
      similar to existing shareholder rights plans adopted by other Canadian
      public companies. The Rights Plan has not been adopted in response to, or
      in anticipation of, any known take-over bid. The Rights Plan's objective
      is to ensure that all shareholders of the Company are treated equally and
      fairly in connection with any proposed takeover bid for the Company or
      other transaction that would involve a change in control. </P></TD></TR>
  <TR>
    <TD>&nbsp; </TD>
    <TD width="90%" >
  <P align=justify> </P></TD></TR>
  <TR vAlign=top>
    <TD align=left></TD>
    <TD width="90%" align=left >
      <P align=justify>The Rights Plan is effective immediately, subject to
      confirmation by the Company&#146;s shareholders at the Company&#146;s next annual
      meeting to be held on May 9, 2012. If the Rights Plan is not confirmed by
      the Company&#146;s shareholders, it will be terminated and of no further force
      and effect (unless it has been triggered prior to termination). </P></TD></TR>
  <TR>
    <TD>&nbsp; </TD>
    <TD width="90%" >
  <P align=justify> </P></TD></TR>
  <TR vAlign=top>
    <TD align=left></TD>
    <TD width="90%" align=left >
      <P align=justify>The Rights Plan discourages discriminatory, coercive or
      unfair takeovers of the Company and gives the Board time, where
      appropriate, to evaluate the proposed transaction and to conduct an
      orderly process to maximize shareholder value. Such process may include
      the solicitation of superior proposals, consideration of alternative
      structures, identification of other potential bidders or the conducting of
      an orderly auction. </P></TD></TR>
  <TR>
    <TD>&nbsp; </TD>
    <TD width="90%" >
  <P align=justify> </P></TD></TR>
  <TR vAlign=top>
    <TD align=left></TD>
    <TD width="90%" align=left >
      <P align=justify>The Toronto Stock Exchange and NASDAQ Stock Market have
      accepted notice of the Rights Plan, subject to, among other conditions,
      confirmation of the Rights Plan by the Company&#146;s shareholders. </P></TD></TR>
  <TR>
    <TD>&nbsp; </TD>
    <TD width="90%" >
  <P align=justify> </P></TD></TR>
  <TR vAlign=top>
    <TD align=left></TD>
    <TD width="90%" align=left >
      <P align=justify>The Board has implemented the Rights Plan by authorizing
      the issuance, of one right (a Right) in respect of each outstanding common
      share of the Company (the "Common Shares) at the close of business on
      March 9, 2012 (the "Record Time"). In addition, the Board authorized the
      issuance of one Right in respect of each Common Share and other share of
      capital stock or voting interests of the Company entitled to vote
      generally in the election of directors (together with the Common Shares,
      the &#147;Voting Shares&#148;) issued from treasury after the Record Time and prior
      to the Separation Time (as defined in the Rights Plan). Initially, the
      Rights will be attached to the Company&#146;s Voting Shares and will not be
      exercisable. Until such time as the Rights separate from the Voting
      Shares, when they become exercisable, Rights certificates will not be
      distributed to shareholders. </P></TD></TR>
  <TR>
    <TD>&nbsp; </TD>
    <TD width="90%" >
  <P align=justify> </P></TD></TR>
  <TR vAlign=top>
    <TD align=left></TD>
    <TD width="90%" align=left >
      <P align=justify>If a person, or a group acting jointly or in concert,
      acquires (other than pursuant to an exemption available under the Rights
      Plan) beneficial ownership of 20 percent or more of the Voting Shares,
    Rights (other than those held by such acquiring person or
      group which will become void) will separate from the Common Shares and
      each Right will permit the holder thereof to receive, upon exercise, the
      number of Common Shares having an aggregate market price (as determined in
      accordance with the Rights Plan), as of the date of consummation or
      occurrence of such acquisition of Common Shares, equal to four times the
      exercise price (as of the Separation Time) of the Right for an amount in
      cash equal to the exercise price. The exercise price of the Rights
      pursuant to the Rights Plan is four times the market price per Common
  Share. </P></TD></TR></TABLE>
<BR>
<HR style="PAGE-BREAK-AFTER: always" align=center color=black SIZE=5
width="100%" noShade>
<A name=page_2></A><BR>
<TABLE
style="BORDER-COLOR: black; BORDER-COLLAPSE: collapse; FONT-SIZE: 10pt; "
border=0 cellSpacing=0 cellPadding=0 width="100%">
  <TR vAlign=top>
    <TD width="10%" align=left></TD>
    <TD width="90%" align=left>
      <P align=justify>At any time prior to the Rights becoming exercisable, the
      Board may waive the operation of the Rights Plan with respect to certain
      limited events before they occur. The issuance of the Rights is not
      dilutive and will not affect reported earnings or cash flow per share
      until the Rights separate from the underlying Common Shares and become
      exercisable or until the exercise of the Rights. The issuance of the
      Rights will not change the manner in which shareholders currently trade
      their Common Shares. A copy of the Rights Plan will be available under the
      Company's profile on SEDAR at www.sedar.com and EDGAR at www.sec.gov, or
      upon request from the Company. </P></TD></TR>
  <TR>
    <TD>&nbsp; </TD>
    <TD width="90%">
  <P align=justify> </P></TD></TR>
  <TR vAlign=top>
    <TD align=left>&nbsp; </TD>
    <TD width="90%" align=left>
    <P align=justify><B>5.2 Disclosure for Restructuring Transactions</B>    </P></TD></TR>
  <TR>
    <TD>&nbsp; </TD>
    <TD width="90%">
  <P align=justify> </P></TD></TR>
  <TR vAlign=top>
    <TD align=left>&nbsp; </TD>
    <TD width="90%" align=left>
  <P align=justify>Not applicable. </P></TD></TR>
  <TR>
    <TD>&nbsp; </TD>
    <TD width="90%">
  <P align=justify> </P></TD></TR>
  <TR vAlign=top>
    <TD align=left><B>Item 6</B> </TD>
    <TD width="90%" align=left>
      <P align=justify><B>Reliance on subsection 7.1(2) of National Instrument
      51-102</B> </P></TD></TR>
  <TR>
    <TD>&nbsp; </TD>
    <TD width="90%">
  <P align=justify> </P></TD></TR>
  <TR vAlign=top>
    <TD align=left>&nbsp; </TD>
    <TD width="90%" align=left>
  <P align=justify>Not applicable. </P></TD></TR>
  <TR>
    <TD>&nbsp; </TD>
    <TD width="90%">
  <P align=justify> </P></TD></TR>
  <TR vAlign=top>
    <TD align=left><B>Item 7</B> </TD>
    <TD width="90%" align=left>
  <P align=justify><B>Omitted Information</B> </P></TD></TR>
  <TR>
    <TD>&nbsp; </TD>
    <TD width="90%">
  <P align=justify> </P></TD></TR>
  <TR vAlign=top>
    <TD align=left>&nbsp; </TD>
    <TD width="90%" align=left>
  <P align=justify>Not applicable. </P></TD></TR>
  <TR>
    <TD>&nbsp; </TD>
    <TD width="90%">
  <P align=justify> </P></TD></TR>
  <TR vAlign=top>
    <TD align=left><B>Item 8</B> </TD>
    <TD width="90%" align=left>
  <P align=justify><B>Executive Officer</B> </P></TD></TR>
  <TR>
    <TD>&nbsp; </TD>
    <TD width="90%">
  <P align=justify> </P></TD></TR>
  <TR vAlign=top>
    <TD align=left>&nbsp; </TD>
    <TD width="90%" align=left>
      <P align=justify>Kristen Riddell, Vice President, General Counsel and
      Corporate Secretary </P></TD></TR>
  <TR vAlign=top>
    <TD align=left>&nbsp; </TD>
    <TD width="90%" align=left>
  <P align=justify>604.689.3846 </P></TD></TR>
  <TR>
    <TD>&nbsp; </TD>
    <TD width="90%">
  <P align=justify> </P></TD></TR>
  <TR vAlign=top>
    <TD align=left><B>Item 9</B> </TD>
    <TD width="90%" align=left>
  <P align=justify><B>Date of Report</B> </P></TD></TR>
  <TR>
    <TD>&nbsp; </TD>
    <TD width="90%">
  <P align=justify> </P></TD></TR>
  <TR vAlign=top>
    <TD align=left>&nbsp; </TD>
    <TD width="90%" align=left>
      <P align=justify>Dated at Vancouver, BC, this 12<SUP>th </SUP>day of
      March, 2012 </P></TD></TR></TABLE>
<P align=right>Page 2 of 2 </P>
<HR align=center color=black SIZE=5 width="100%" noShade>

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