<DOCUMENT>
<TYPE>EX-99.3
<SEQUENCE>5
<FILENAME>d99550exv99w3.txt
<DESCRIPTION>NOTES TO FINANCIAL STATEMENTS
<TEXT>
<PAGE>


                                                                       EXHIBIT 3

                        INTERNATIONAL URANIUM CORPORATION
                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
                       (UNITED STATES DOLLARS) (UNAUDITED)

1. Basis of Preparation of Financial Statements

These unaudited interim consolidated financial statements of the Company and its
subsidiaries have been prepared in accordance with accounting principles
generally accepted in Canada on a basis consistent with the consolidated
financial statements of the Company included in its 2001 annual report.

These unaudited interim consolidated financial statements do not contain all of
the information required by generally accepted accounting principles for annual
financial statements and therefore should be read in conjunction with the
consolidated financial statements included in the Company's 2001 annual report.

2. Restricted Investments

Amounts represent cash and fixed income securities the Company has placed on
deposit to secure its reclamation and performance bonds. During the quarter
ended December 31, 2001, the Company increased amounts placed on deposit to
bring its collateral to approximately 100% as required by the bonding company
(Notes 3 and 4).

<Table>
<Caption>
                            June 30, 2002   September 30, 2001
                            -------------   ------------------
<S>                         <C>             <C>
Cash and cash equivalents    $ 5,115,886       $ 4,653,849
Fixed income securities        7,436,630         5,871,224
                             -----------       -----------
                             $12,552,516       $10,525,073
                             ===========       ===========
</Table>

3. Other Asset

On September 13, 1999 the Company entered into a uranium concentrates sale and
put option agreement with a third party. The Company transferred 400,000 pounds
U3O8 at a purchase price of $10.80 per pound U3O8 under this agreement giving
the third party the option to put up to an equivalent quantity to the Company at
$10.55 per pound U3O8 at any one time within the period beginning October 1,
2001 and ending March 1, 2003. The transaction was accounted for as a deferred
credit and the value of the inventory that could be put to the Company upon
exercise of the put option was reclassified as an other asset. A $1,000,000 bond
(Note 2) secures a portion of the transaction.
<PAGE>


4. Provisions for Reclamation

Estimated future decommissioning and reclamation costs of the Mill and U.S.
mining properties are based principally on legal and regulatory requirements. At
June 30, 2002 and September 30, 2001, $12,350,157 was accrued for reclamation
costs. The Company has posted bonds in the amount of $11,488,175 in favor of the
United States Nuclear Regulatory Commission and the applicable state regulatory
agencies as partial security for these liabilities and has deposited cash and
fixed income securities on account of these obligations (Note 2).

Elements of uncertainty in estimating reclamation and decommissioning costs
include potential changes in regulatory requirements, decommissioning and
reclamation alternatives and the scope of reclamation activities. Actual costs
will differ from those estimated and such differences may be material.

</TEXT>
</DOCUMENT>
