<SUBMISSION>
<ACCESSION-NUMBER>0000869531-10-000026
<TYPE>10-Q/A
<PUBLIC-DOCUMENT-COUNT>2
<PERIOD>20100331
<FILING-DATE>20100525
<DATE-OF-FILING-DATE-CHANGE>20100524
<FILER>
<COMPANY-DATA>
<CONFORMED-NAME>GOLDEN EAGLE INTERNATIONAL INC
<CIK>0000869531
<ASSIGNED-SIC>1000
<IRS-NUMBER>841116515
<STATE-OF-INCORPORATION>CO
<FISCAL-YEAR-END>1209
</COMPANY-DATA>
<FILING-VALUES>
<FORM-TYPE>10-Q/A
<ACT>34
<FILE-NUMBER>000-23726
<FILM-NUMBER>10855494
</FILING-VALUES>
<BUSINESS-ADDRESS>
<STREET1>9661 SOUTH 700 EAST
<CITY>SALT LAKE CITY
<STATE>UT
<ZIP>84070
<PHONE>8016199320
</BUSINESS-ADDRESS>
<MAIL-ADDRESS>
<STREET1>9661 SOUTH 700 EAST
<CITY>SALT LAKE CITY
<STATE>UT
<ZIP>84070
</MAIL-ADDRESS>
<FORMER-COMPANY>
<FORMER-CONFORMED-NAME>BENEFICIAL CAPITAL FINANCIAL SERVICES CORP
<DATE-CHANGED>19940329
</FORMER-COMPANY>
</FILER>
<DOCUMENT>
<TYPE>10-Q/A
<SEQUENCE>1
<FILENAME>ge_10qmarch312010doca.htm
<TEXT>
<HTML>
<HEAD>
<TITLE></TITLE>
</HEAD>
<BODY>


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<P ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2><B>SECURITIES AND EXCHANGE
COMMISSION <BR>Washington, D.C. 20549 </B></FONT></P>

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<P ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=3><B>FORM 10-Q</B> </FONT></P>

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<P ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>(Mark One)<BR>


[X] Quarterly report pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
for quarter period ended </FONT></P>


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<P ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2><B>March 31, 2009</B> </FONT></P>



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<H1 ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>[  ]     Transition
 report  pursuant  to  Section  13 or  15(d)  of the  Securities  Exchange  Act of 1934
for the          transition period from __________ to __________.  </FONT></H1>



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<P ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Commission file number
0-23726 </FONT></P>

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<P ALIGN="Center"><FONT FACE="Times New Roman, Times, Serif" SIZE=2><B><U>GOLDEN EAGLE INTERNATIONAL, INC.</U></B><BR>
(Exact name of Golden Eagle as specified in its charter) </FONT></P>




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     <TH COLSPAN=2><FONT FACE="Times New Roman, Times, Serif" SIZE=2></FONT></TH>
     <TH COLSPAN=2><FONT FACE="Times New Roman, Times, Serif" SIZE=2></FONT></TH></TR>
<TR VALIGN=Bottom>
     <TD WIDTH=38% ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Colorado</U></FONT></TD>
     <TD WIDTH=5% ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD WIDTH=55% ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2><U>84-1116515</U></FONT></TD>
     <TD WIDTH=2% ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>(State of incorporation)</FONT></TD><TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>(IRS Employer Identification No.)</FONT></TD><TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD></TR>
</TABLE>



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<P ALIGN="Center"><FONT FACE="Times New Roman, Times, Serif" SIZE=2><U>9661 South 700 East, Salt Lake City,
UT 84070</U> <BR>(Address of principal executive offices) (Zip Code) </FONT></P>

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<P ALIGN="Center"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Golden Eagle&#146;s telephone
number, including area code: (801) 619-9320  </FONT></P>

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<P ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2><U>Former Address if
Changed Since Last Report</U> </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Indicate by check mark whether the
registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the
Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period
that the registrant was required to file such reports), and (2) has been subject to the
filing requirements for the past 90 days. </FONT></P>

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<P ALIGN="Right"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>[ X ]  Yes        [    ]  No </FONT></P>


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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Indicate by check mark whether the
registrant is a large accelerated filier, a non-accelerated filer, or a smaller reporting
company. See the definitions of &#147;large accelerated filer&#148;, &#147;accelerated
filer and &#147;smaller reporting company&#148; in rule 12b-2 of the Exchange Act. </FONT></P>









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     <TH><FONT FACE="Times New Roman, Times, Serif" SIZE="2"></FONT></TH>
     <TH><FONT FACE="Times New Roman, Times, Serif" SIZE="2"></FONT></TH></TR>
<TR VALIGN="TOP">
     <TD><FONT FACE="Times New Roman, Times, Serif" SIZE="2">Large accelerated filer |_| </FONT></TD>
     <TD><FONT FACE="Times New Roman, Times, Serif" SIZE="2">Non-accelerated filer |_| </FONT></TD></TR>
<TR VALIGN="TOP">
     <TD><FONT FACE="Times New Roman, Times, Serif" SIZE="2"> Accelerated filer |_|</FONT></TD>
     <TD><FONT FACE="Times New Roman, Times, Serif" SIZE="2">Smaller reporting company |X|</FONT></TD></TR>
</TABLE>
<BR><BR><BR>



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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>1 </FONT></P>


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<P ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Indicate by check mark whether the
registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).  </FONT></P>

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<P ALIGN="Right"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>|_| Yes |X| No  </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>At May 24, 2010, there were 6,547,368 shares of common stock outstanding, 80,000 shares of Series B Preferred Stock, 1
share of Series C Preferred Stock and 664,219 shares of our Series D Preferred Stock outstanding.
 </FONT></P>



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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>2 </FONT></P>

<HR SIZE=5 COLOR=GRAY NOSHADE>


<IMG SRC="ge_thegoldeneagle.gif">




<A NAME="ge_10qmar10-tableof"></A>
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     <TH COLSPAN=2><FONT FACE="Times New Roman, Times, Serif" SIZE=2></FONT></TH>
     <TH COLSPAN=2><FONT FACE="Times New Roman, Times, Serif" SIZE=2></FONT></TH></TR>
<TR VALIGN=Bottom>
     <TD WIDTH=91% ALIGN=LEFT colspan=4><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B><U>TABLE OF CONTENTS</U></B></FONT></TD></TR>

<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD><TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD><TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD></TR>

<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Part 1- FINANCIAL INFORMATION</FONT></TD><TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD><TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2><U>Page</U></FONT></TD><TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD></TR>

<TR VALIGN="BOTTOM" BGCOLOR="#C0C0C0">
     <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Item 1.  <A HREF="#ge_10qmar10-balshe">Financial Statements</A></FONT></TD><TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>F(1-12)</FONT></TD><TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&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;Exhibits:</FONT></TD><TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD></TR>
<TR VALIGN="BOTTOM" BGCOLOR="#C0C0C0">
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a.  Financial Statements</FONT></TD><TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD><TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<A HREF="#ge_10qsept3009-balshe">Balance Sheets</A></FONT></TD><TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>F-1</FONT></TD><TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD></TR>
<TR VALIGN="BOTTOM" BGCOLOR="#C0C0C0">
     <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<A HREF="#ge_10qmar10-stofop">Statement of Operations</A></FONT></TD><TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>F-2</FONT></TD><TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<A HREF="#ge_10qmar10-statecash">Statement of Cash Flows</A></FONT></TD><TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>F-3</FONT></TD><TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD></TR>
<TR VALIGN="BOTTOM" BGCOLOR="#C0C0C0">
     <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<A HREF="#ge_10qmar10-notes">Notes to Financial Statements</A></FONT></TD><TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>F(4-19)</FONT></TD><TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD></TR>

<TR VALIGN="BOTTOM" >

     <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Item 2. <A HREF="#ge_10qmar10item3quan"> Management's Discussion &amp; Analysis of Financial Condition &amp;</A><BR>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </FONT></TD><TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>3</FONT></TD><TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD></TR>

<TR VALIGN="BOTTOM" BGCOLOR="#C0C0C0">
     <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Item 3.<A HREF="#ge_10qmar10-item3cont">Quantitative and Qualitative Disclosures About Market Risk</A></FONT></TD><TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>15</FONT></TD><TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD></TR>
<TR VALIGN="BOTTOM" >
     <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Item 4T. <A HREF="#ge_10qmar10item4t">Controls and Procedures</A></FONT></TD><TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>15</FONT></TD><TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD></TR>


<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Part II- OTHER INFORMATION</FONT></TD><TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD><TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD><TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD></TR>

<TR VALIGN="BOTTOM" BGCOLOR="#C0C0C0">
     <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Item 1.   <A HREF="#ge_10qmar10-item1legal">Legal Proceedings</A></FONT></TD><TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>16</FONT></TD><TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD></TR>

<TR VALIGN=Bottom>
     <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Item 2. <A HREF="#ge_10qmar10-item2un">Unregistered Sales of Equity Securities and Use of Proceeds</A></FONT></TD><TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>17</FONT></TD><TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD></TR>

<TR VALIGN="BOTTOM" BGCOLOR="#C0C0C0">

     <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Item 3.  <A HREF="#ge_10qmar10-item3def">Defaults Upon Senior Securities</A></FONT></TD><TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>19</FONT></TD><TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD></TR>
<TR VALIGN=Bottom>
  <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Item 4. <A HREF="#ge_10qmar10item4">Submission of Matters to a Vote of Security Holders</A></FONT></TD><TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>19</FONT></TD><TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD></TR>

<TR VALIGN="BOTTOM" BGCOLOR="#C0C0C0">
     <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Item 5. <A HREF="#ge_10qmar10-item5other">Other Information</A></FONT></TD><TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>19</FONT></TD><TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD></TR>


<TR VALIGN=Bottom>


     <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Item 6.  <A HREF="#ge_10qmar10-item6exh">Exhibits</A></FONT></TD><TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD></TR>

<TR VALIGN="BOTTOM" BGCOLOR="#C0C0C0">
     <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a. Exhibits requied by Item 601 of Regulation SK</FONT></TD><TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD><TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD></TR>

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     <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Certifications <A HREF="#ge_10qsmar10-exh312">31.1 </A>&amp;&nbsp;<A HREF="#ge_10qmar10-exh312r">31.2</A></FONT></TD><TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>24-25</FONT></TD><TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD></TR>
<TR VALIGN="BOTTOM" BGCOLOR="#C0C0C0">
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Certifications <A HREF="#ge_10qmar10-exh321r">32.1</A> &amp;&nbsp;<A HREF="#ge_10qmar10-exh322r">32.2</A></FONT></TD><TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2></FONT></TD>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>26-27</FONT></TD><TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE=2><A HREF="#ge_10qmar10-sigs">Signatures</A></FONT></TD><TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>22</FONT></TD><TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD></TR>
</TABLE>



<BR><BR><BR><BR><BR><BR>
<BR><BR><BR><BR><BR><BR>



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<A NAME=A013></A>
<P ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>PART I &#150; FINANCIAL
INFORMATION </FONT></P>

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<A NAME=A014></A>
<H1 ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Item 1. Financial
Statements </FONT></H1>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>The unaudited Financial Statements
for the three months ended March 31, 2010 are attached hereto and incorporated by
reference herein. Please refer to pages F-1 through F-8 following the signature page. </FONT></P>


<A NAME="ge_10qmar10-item2man"></A>
<!-- MARKER FORMAT-SHEET="Para Flush Lv 0-TNR" FSL="Workstation" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2><B>Item 2. <U>Management&#146;s
discussion and analysis of financial condition and results of operations</U></B> </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Golden Eagle International, Inc. is
referred to herein as &#147;we&#148;, &#147;our&#148; or &#147;us&#148;. </FONT></P>

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<A NAME=A015></A>
<H1 ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Forward-looking
statements and risks </FONT></H1>

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<A NAME=A016></A>
<P ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>CAUTIONARY NOTE REGARDING
FORWARD-LOOKING STATEMENTS </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>The following discussion should be
read in conjunction with our financial statements and related notes appearing elsewhere in
this Form 10-Q and our Annual Report on Form 10-K for our fiscal year ended December 31,
2009. </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>The statements contained in this
quarterly report on Form&nbsp;10-Q that are not historical are &#147;forward-looking
statements&#148; that involve a number of risks and uncertainties. These forward-looking
statements include, among others, the following: </FONT></P>


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<TR VALIGN=TOP>
<TD ALIGN=RIGHT WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>o&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;  </FONT></TD>
<TD ALIGN=LEFT WIDTH=95%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
our
business and growth strategies; </FONT></TD>
</TR>
</TABLE>
<BR>

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<TR VALIGN=TOP>
<TD ALIGN=RIGHT WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>o&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;  </FONT></TD>
<TD ALIGN=LEFT WIDTH=95%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
our
ability to successfully and economically explore for minerals; </FONT></TD>
</TR>
</TABLE>
<BR>

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<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0>
<TR VALIGN=TOP>
<TD ALIGN=RIGHT WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>o&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;  </FONT></TD>
<TD ALIGN=LEFT WIDTH=95%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
our
ability to clarify through the Nevada state courts our position relative to the operation
of the Jerritt Canyon Mill                   after the termination of our mill operating
agreement by Queenstake Resources USA, Inc. and to recover amounts owed
                  to us for our prior operations; </FONT></TD>
</TR>
</TABLE>
<BR>

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<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0>
<TR VALIGN=TOP>
<TD ALIGN=RIGHT WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>o&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;  </FONT></TD>
<TD ALIGN=LEFT WIDTH=95%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
our
exploration and development prospects, projects and programs; </FONT></TD>
</TR>
</TABLE>
<BR>

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<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0>
<TR VALIGN=TOP>
<TD ALIGN=RIGHT WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>o&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;  </FONT></TD>
<TD ALIGN=LEFT WIDTH=95%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
anticipated
trends in our business; </FONT></TD>
</TR>
</TABLE>
<BR>

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<TR VALIGN=TOP>
<TD ALIGN=RIGHT WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>o&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;  </FONT></TD>
<TD ALIGN=LEFT WIDTH=95%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
our
future results of operations; </FONT></TD>
</TR>
</TABLE>
<BR>

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<TR VALIGN=TOP>
<TD ALIGN=RIGHT WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>o&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;  </FONT></TD>
<TD ALIGN=LEFT WIDTH=95%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
the
risk that any future payments that may derive from the transfer of operations in Bolivia
to an unaffiliated third-party                   (discussed below in Item 2A)) may not
pay out as anticipated or projected due to company risk, as well as country
                  risk based on the fact that Bolivia is a country that is no longer
supportive of foreign investment, especially                   investment from the United
States; </FONT></TD>
</TR>
</TABLE>
<BR>

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<TR VALIGN=TOP>
<TD ALIGN=RIGHT WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>o&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;  </FONT></TD>
<TD ALIGN=LEFT WIDTH=95%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
our
liquidity and ability to finance our activities; </FONT></TD>
</TR>
</TABLE>
<BR>

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<TR VALIGN=TOP>
<TD ALIGN=RIGHT WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>o&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;  </FONT></TD>
<TD ALIGN=LEFT WIDTH=95%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
market
conditions in our industries; and </FONT></TD>
</TR>
</TABLE>
<BR>

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<TR VALIGN=TOP>
<TD ALIGN=RIGHT WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>o&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;  </FONT></TD>
<TD ALIGN=LEFT WIDTH=95%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
the
impact of environmental and other governmental regulation. </FONT></TD>
</TR>
</TABLE>
<BR>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>These statements may be found under
&#147;Risk Factors&#148;, &#147;Management&#146;s Discussion and Analysis of Financial
Condition and Results of Operation&#148;, &#147;Business and Properties&#148; and other
sections of this quarterly report. Forward-looking statements are typically identified by
use of terms such as &#147;may&#148;, &#147;will&#148;, &#147;could&#148;,
&#147;should&#148;, &#147;expect&#148;, &#147;plan&#148;, &#147;project&#148;,
&#147;intend&#148;, &#147;anticipate&#148;, &#147;believe&#148;, &#147;estimate&#148;,
&#147;predict&#148;, &#147;potential&#148;, &#147;pursue&#148;, &#147;target&#148; or
&#147;continue&#148;, the negative of such terms or other comparable terminology, although
some forward-looking statements may be expressed differently. </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>The forward-looking statements
contained in this quarterly report are largely based on our expectations, which reflect
estimates and assumptions made by our management. These estimates and assumptions reflect
our best judgment based on currently known market conditions and other factors. Although
we believe such estimates and assumptions to be reasonable, they are inherently uncertain
and involve a number of risks and uncertainties that are beyond our control. In addition,
management&#146;s assumptions about future events may prove to be inaccurate. Management
cautions all readers that the forward-looking statements contained in this quarterly
report are not guarantees of future performance, and we cannot assure any reader that such
statements will be realized or the forward-looking events and circumstances will occur.
Actual results may differ materially from those anticipated or implied in the
forward-looking statements due to a number of factors, including: </FONT></P>

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<P ALIGN="Center"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>3 </FONT></P>


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<TR VALIGN=TOP>
<TD ALIGN=RIGHT WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>o&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;  </FONT></TD>
<TD ALIGN=LEFT WIDTH=95%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
the
failure to obtain sufficient capital resources to fund our operations; </FONT></TD>
</TR>
</TABLE>
<BR>

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<TR VALIGN=TOP>
<TD ALIGN=RIGHT WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>o&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;  </FONT></TD>
<TD ALIGN=LEFT WIDTH=95%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
an
inability to obtain the necessary permits to conduct our operations; </FONT></TD>
</TR>
</TABLE>
<BR>

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<TR VALIGN=TOP>
<TD ALIGN=RIGHT WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>o&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;  </FONT></TD>
<TD ALIGN=LEFT WIDTH=95%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
unsuccessful
exploration activities; </FONT></TD>
</TR>
</TABLE>
<BR>

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<TR VALIGN=TOP>
<TD ALIGN=RIGHT WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>o&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;  </FONT></TD>
<TD ALIGN=LEFT WIDTH=95%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
a
decline in prices of the commodities that we may produce at the Jerritt Canyon mill (if
we are able to produce any); </FONT></TD>
</TR>
</TABLE>
<BR>

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<TR VALIGN=TOP>
<TD ALIGN=RIGHT WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>o&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;  </FONT></TD>
<TD ALIGN=LEFT WIDTH=95%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
the
current worldwide economic climate which has reduced the availability of liquidity and
credit available to companies,                   especially those without revenues or
engaged in natural resources operations; </FONT></TD>
</TR>
</TABLE>
<BR>

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<TR VALIGN=TOP>
<TD ALIGN=RIGHT WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>o&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;  </FONT></TD>
<TD ALIGN=LEFT WIDTH=95%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
incorrect
estimates of required capital expenditures; </FONT></TD>
</TR>
</TABLE>
<BR>

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<TR VALIGN=TOP>
<TD ALIGN=RIGHT WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>o&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;  </FONT></TD>
<TD ALIGN=LEFT WIDTH=95%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
unexpected
increases in the cost of our operations as a result of general economic conditions or
time delays; </FONT></TD>
</TR>
</TABLE>
<BR>

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<TR VALIGN=TOP>
<TD ALIGN=RIGHT WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>o&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;  </FONT></TD>
<TD ALIGN=LEFT WIDTH=95%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
impact
of environmental and other governmental regulation, including delays in obtaining
permits; and </FONT></TD>
</TR>
</TABLE>
<BR>

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<TR VALIGN=TOP>
<TD ALIGN=RIGHT WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>o&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;  </FONT></TD>
<TD ALIGN=LEFT WIDTH=95%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
hazardous
and risky operations; </FONT></TD>
</TR>
</TABLE>
<BR>

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<TR VALIGN=TOP>
<TD ALIGN=RIGHT WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>o&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;  </FONT></TD>
<TD ALIGN=LEFT WIDTH=95%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
the
possibility that we will not be restored to the Jerritt Canyon mill operations by Court
order after having been                   terminated as the operator of that mill on June
10, 2009, that the court will order damages against us or will fail                   to
order Queenstake or Yukon-Nevada Gold Corp. to pay the amounts due to us; </FONT></TD>
</TR>
</TABLE>
<BR>

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<TR VALIGN=TOP>
<TD ALIGN=RIGHT WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>o&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;  </FONT></TD>
<TD ALIGN=LEFT WIDTH=95%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
the
possibility that we will not be able to successfully enter into a joint venture or other
relationship with an industry                   partner that has gold resources for
milling at our Gold Bar mill in Nevada; </FONT></TD>
</TR>
</TABLE>
<BR>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>You should also consider carefully
the statements under &#147;Risk Factors&#148; and other sections of this quarterly report,
which address additional factors that could cause our actual results to differ from those
set forth in the forward-looking statements. </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>All forward-looking statements speak
only as of the date of this quarterly report. We do not intend to publicly update or
revise any forward-looking statements as a result of new information, future events or
otherwise. These cautionary statements qualify all forward-looking statements attributable
to us or persons acting on our behalf. </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Golden Eagle International, Inc. is
referred to herein as &#147;we&#148;, &#147;our&#148;, or &#147;us&#148;. </FONT></P>

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<A NAME=A017></A>
<H1 ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Overview </FONT></H1>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Our corporate headquarters are in
Salt Lake City, Utah. </FONT></P>

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<A NAME=A018></A>
<P ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>A. <U>Bolivia</U> </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Previously our operations were
primarily focused on minerals exploration and mining and milling operations in Bolivia
through our Bolivian-based wholly-owned subsidiary, Golden Eagle International, Inc.
(Bolivia). However, in late 2008 we suspended these operations, and in March 2010
transferred control of our Bolivian assets and operations to an unaffiliated third party.
We expect to transfer ownership of those assets and operations during the second quarter
of 2010, although there can be no assurance that we will be able to complete the
transactions with the purchaser. </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>As of December 31, 2009 we owned the
following gold mills: </FONT></P>


<TABLE CELLPADDING=0 CELLSPACING=0 BORDER=1 WIDTH=600>
<TR VALIGN=Bottom>
     <TH><FONT FACE="Times New Roman" SIZE=2></FONT></TH>
     <TH><FONT FACE="Times New Roman" SIZE=2></FONT></TH></TR>
<TR VALIGN=Bottom>
     <TD WIDTH=50% ALIGN=LEFT STYLE="border-bottom:solid 1px #000000;"><FONT FACE="Times New Roman" SIZE=2><I>Mill</I></FONT></TD>
     <TD WIDTH=50% ALIGN=LEFT STYLE="border-bottom:solid 1px #000000;"><FONT FACE="Times New Roman" SIZE=2><I>Location</I></FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>Gold Bar Mill</FONT></TD>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>Eureka, Nevada</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>C Zone Mill</FONT></TD>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>Ascension de Guarayos, Bolivia</FONT></TD></TR>
</TABLE>


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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>As the C Zone Mill is a part of our
Bolivian assets, control of that asset was transferred in March 2010 and we may be
transferring ownership of that mill in the near future. </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>As of December 31, 2009, we owned the
following mineral prospects in Bolivia: </FONT></P>

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<P ALIGN="Center"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>4 </FONT></P>


<TABLE CELLPADDING=0 CELLSPACING=0 BORDER=1 WIDTH=600>
<TR VALIGN=Bottom>
     <TH><FONT FACE="Times New Roman" SIZE=2></FONT></TH>
     <TH><FONT FACE="Times New Roman" SIZE=2></FONT></TH></TR>
<TR VALIGN=Bottom>
     <TD WIDTH=50% ALIGN=LEFT STYLE="border-bottom:solid 1px #000000;"><FONT FACE="Times New Roman" SIZE=2><I>Precambrian Shield Properties</I></FONT></TD>
     <TD WIDTH=50% ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>Initial Precambrian claims</FONT></TD>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>111,500 acres</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>Buen Futuro claim</FONT></TD>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>2,500 acres</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>Cobra claim</FONT></TD>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>22,500 acres</FONT></TD></TR>
</TABLE>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<SUP>
</SUP>On March 1, 2009, we elected to reduce our mining concessions in the Precambrian
Shield in eastern Bolivia from 136,500 acres to 42,731 acres. We retained the Buen Futuro
claims containing the A Zone on which we had generated the most drill and other sampling
data, as well as the Gran Serpiente claims (out of the Precambrian prospect claims) on
which the C Zone gold mill and mine are located. We also retained the Cobra claims on the
northern end of the Ascension Gold-Copper Trend. </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Effective March 10, 2010, we
transferred control of our Bolivian operations to an unaffiliated Swiss corporation by
granting that Swiss corporation a power of attorney. The Swiss corporation has paid
$112,000 to the Bolivian authorities as claims fees to maintain our concessions in eastern
Bolivia. The Swiss corporation has also paid us $50,000, and has further paid
approximately $53,000 (out of its obligation of $100,000) to satisfy certain of our
obligations in Bolivia. </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Upon transfer of ownership of the
properties to the Swiss corporation which is expected to occur in the second quarter of
2010 (if it should occur, of which there can be no assurance), the Swiss corporation is
required to pay an additional $100,000 of our obligations to Bolivian creditors (for a
total of $200,000); to assume certain Golden Eagle obligations in Bolivia in an estimated
amount of $170,000; and to pay us a 3% net smelter return on all minerals produced from
the properties of up to $3 million. The net smelter return will be on a quarterly basis if
and when mineral production is achieved from the mining concessions owned by the Bolivian
subsidiary. </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>We cannot offer any assurance that
the Swiss corporation will fulfill its remaining payment obligations to us with respect to
our Bolivian assets and operations. If we are unable to complete the sale of these assets
and operations we will continue to hold them and explore other alternatives with respect
to them. However, if we are unable to complete the sale of these assets during 2010 we do
not expect to engage in active exploration or mining operations in Bolivia and it is
likely that the concessions will expire in March 2011 as we do not intend to pay the 2011
claims fees. </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Although our Bolivian assets and
operations were once the our primary focus , starting in late 2008 we have focused our
operations primarily within the United States and, as noted above, in March 2009 reduced
significantly our land holdings in Bolivia. We considered a number of factors when
evaluating our options with respect to our Bolivian operations, including: </FONT></P>


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<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0>
<TR VALIGN=TOP>
<TD ALIGN=RIGHT WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>o&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;  </FONT></TD>
<TD ALIGN=LEFT WIDTH=95%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
The
re-election of Bolivia's president who has been inimical to U.S. investment in Bolivia
and the current and continuing                   negative political and social
environment relative to U.S. companies; </FONT></TD>
</TR>
</TABLE>
<BR>

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<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0>
<TR VALIGN=TOP>
<TD ALIGN=RIGHT WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>o&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;  </FONT></TD>
<TD ALIGN=LEFT WIDTH=95%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
The
Bolivian tax structure for mining companies that we believe would serve to limit the
ability of our Bolivian operations                   to become profitable; </FONT></TD>
</TR>
</TABLE>
<BR>

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<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0>
<TR VALIGN=TOP>
<TD ALIGN=RIGHT WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>o&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;  </FONT></TD>
<TD ALIGN=LEFT WIDTH=95%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
The
current Bolivian administration's apparent commitment to enact a new mining law that
creates a degree of uncertainty in                   the mining sector; </FONT></TD>
</TR>
</TABLE>
<BR>

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<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0>
<TR VALIGN=TOP>
<TD ALIGN=RIGHT WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>o&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;  </FONT></TD>
<TD ALIGN=LEFT WIDTH=95%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
Our
continuing difficulties in meeting our obligations in Bolivia and in the United States
due to our significant working                   capital shortages and operating losses,
including the likely loss of our mining claims due to our inability to pay
                  the fees that, for example, were paid on March 1, 2010 by the
unaffiliated third-party Swiss corporation mentioned                   above; and </FONT></TD>
</TR>
</TABLE>
<BR>

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<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0>
<TR VALIGN=TOP>
<TD ALIGN=RIGHT WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>o&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;  </FONT></TD>
<TD ALIGN=LEFT WIDTH=95%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
Our
need to focus its limited resources to more fully realize the potential of our 4,000 tpd
Gold Bar gold mill, to seek out                   other mining and milling opportunities
that may enhance our shareholders' value, and to continue seeking recovery of
                  just compensation from our litigation with Yukon-Nevada Gold Corp.
regarding its breach of our operating contract                   for the Jerritt Canyon
gold mill north of Elko, Nevada. </FONT></TD>
</TR>
</TABLE>
<BR>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Based in large part on the above
factors, we believed it was in our best interests to sell our Bolivian assets and
operations, and continue focusing our efforts and resources on our operations and assets
within the United States. As a result, effective March 10, 2010 we transferred control of
all of our Bolivian assets and operations, and hopes to transfer ownership of those assets
during the second quarter of 2010 (of which there can be no assurance). </FONT></P>

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<A NAME=A019></A>
<P ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>B. <U>U.S. Assets and
Operations</U> </FONT></P>


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<P ALIGN="Center"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>5 </FONT></P>


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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Starting in our third quarter of 2008
through June 10, 2009 we were engaged in contract gold milling operations in the state of
Nevada. In October 2008 we entered into an agreement with Queenstake Resources USA, Inc.
(&#147;Queenstake USA&#148;), a wholly-owned subsidiary of Queenstake Resources Ltd. and
Yukon-Nevada Gold Corp., to operate the Jerritt Canyon gold mill located 50 miles north of
Elko, Nevada (the &#147;Jerritt Canyon Mill&#148;). However, on June 10, 2009 Queenstake
USA notified us that it believed that the agreement was terminated. We are currently
engaged in litigation with Queenstake USA in the Fourth District Court for Elko County,
Nevada in an attempt to enforce our contractual rights and to obtain damages. As
appropriate, and subject to our financial resources, we intend to continue to devote time
and resources to the on-going litigation with Queenstake USA. </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Going forward we expect to focus our
operations primarily within the United States. Currently, and as further described in this
report, we own a gold mill (the &#147;Gold Bar Mill&#148;) in Nevada and are exploring and
evaluating various options with respect to that mill. The Gold Bar Mill has not operated
for more than the past ten years (including our period of ownership since 2004). </FONT></P>

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<A NAME=A020></A>
<H1 ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Assets. </FONT></H1>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>As of March 31, 2010, we had total
net assets of 5,262,673 compared to total assets of $5,608,436 as of December 31, 2009.
These assets include current assets, such as cash and prepaid expenses. Our current assets
decreased to $1,046,731 as of March 31, 2010 from $1,234,453 as of December 31, 2009 </FONT></P>


<TABLE CELLPADDING="0" CELLSPACING="0" BORDER="1" WIDTH="600" ALIGN="Center">
<TR VALIGN=Bottom>
     <TH><FONT FACE="Times New Roman" SIZE=2></FONT></TH>
     <TH><FONT FACE="Times New Roman" SIZE=2></FONT></TH>
     <TH><FONT FACE="Times New Roman" SIZE=2></FONT></TH></TR>
<TR VALIGN=Bottom>
     <TD WIDTH=45% ALIGN=LEFT STYLE="border-bottom:solid 1px #000000;"><FONT FACE="Times New Roman" SIZE=2>Current Assets</FONT></TD>
     <TD WIDTH=30% ALIGN=RIGHT STYLE="border-bottom:solid 1px #000000;"><FONT FACE="Times New Roman" SIZE=2>March 31, 2010&nbsp;</FONT></TD>
     <TD WIDTH=25% ALIGN=RIGHT STYLE="border-bottom:solid 1px #000000;"><FONT FACE="Times New Roman" SIZE=2>December 31, 2009&nbsp;</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>Cash and cash equivalents</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=2>$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;126&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=2>$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2,029&nbsp;</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>Net accounts receivable(1)</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=2>998,747&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=2>1,178,463&nbsp;</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT ><FONT FACE="Times New Roman" SIZE=2>Prepaid expenses</FONT></TD>
     <TD ALIGN=RIGHT STYLE="border-bottom:solid 1px #000000;"><FONT FACE="Times New Roman" SIZE=2>47,858&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT STYLE="border-bottom:solid 1px #000000;"><FONT FACE="Times New Roman" SIZE=2>53,961&nbsp;</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>Total current assets</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=2>$1,046,731&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=2>$1,234,453&nbsp;</FONT></TD></TR>
</TABLE><BR>


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               <TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0 BORDER=0>
                    <TR VALIGN=TOP>
                    <TD WIDTH=10%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
                    <TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2><SUP>(1)</SUP> </FONT></TD>
                    <TD WIDTH=85%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
                    Net accounts receivable are all due from Queenstake Resources, USA, Inc. for the
                    reimbursement of expenses related to the operation of the Jerritt Canyon mill as
                    well as our cost-plus administration fee. Accounts receivable totaled $2,026,876
                    less $1,078,129 for an allowance for uncollectible accounts for a net receivable
                    from Queenstake Resources USA of $948,747. While we fully expect to recover
                    payment for monies owed to Golden eagle by Queenstake, we have taken an
                    allowance for bad debt in the event we are unable to collect the full amount. We
                    cannot guarantee that we will be able to recover any funds due to Golden Eagle
                    and we may increase our allowance for bad debt in the future if our efforts to
                    collect these funds are unsuccessful or if our legal and collection efforts take
                    longer than expected. </FONT></TD>
                    </TR>
                    </TABLE>
                    <BR>


<TABLE CELLPADDING="0" CELLSPACING="0" BORDER="1" WIDTH="600" ALIGN="Center">
<TR VALIGN=Bottom>
     <TH><FONT FACE="Times New Roman" SIZE=2></FONT></TH>
     <TH><FONT FACE="Times New Roman" SIZE=2></FONT></TH>
     <TH><FONT FACE="Times New Roman" SIZE=2></FONT></TH></TR>
<TR VALIGN=Bottom>
     <TD WIDTH=40% ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2></FONT></TD>
     <TD WIDTH=30% ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=2></FONT></TD>
     <TD WIDTH=30% ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=2></FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT STYLE="border-bottom:solid 1px #000000;"><FONT FACE="Times New Roman" SIZE=2>Fixed Assets</FONT></TD>
     <TD ALIGN=RIGHT STYLE="border-bottom:solid 1px #000000;"><FONT FACE="Times New Roman" SIZE=2>March 31, 2010</FONT></TD>
     <TD ALIGN=RIGHT STYLE="border-bottom:solid 1px #000000;"><FONT FACE="Times New Roman" SIZE=2>December 31, 2009&nbsp;</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>Mining equipment</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=2>$&nbsp;&nbsp;&nbsp;&nbsp;395,503&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=2>$&nbsp;&nbsp;&nbsp;&nbsp;496,426&nbsp;</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>Gold Bar mill and plant (idle)</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=2>3,980,000&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=2>3,980,000&nbsp;</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>Mine development costs</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=2>752,339&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=2>752,339&nbsp;</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>Mineral properties</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=2>1,427,740&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=2>1,372,977&nbsp;</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>Office equipment</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=2>57,657&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=2>57,657&nbsp;</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT STYLE="border-bottom:solid 1px #000000;"><FONT FACE="Times New Roman" SIZE=2>Accumulated depreciation and depletion and Impairment</FONT></TD>
     <TD ALIGN=RIGHT STYLE="border-bottom:solid 1px #000000;"><FONT FACE="Times New Roman" SIZE=2>(2,397,298)</FONT></TD>
     <TD ALIGN=RIGHT STYLE="border-bottom:solid 1px #000000;"><FONT FACE="Times New Roman" SIZE=2>(2,285,427)</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT STYLE="border-bottom:solid 2px #000000;"><FONT FACE="Times New Roman" SIZE=2>Fixed assets net</FONT></TD>
     <TD ALIGN=RIGHT STYLE="border-bottom:solid 2px #000000;"><FONT FACE="Times New Roman" SIZE=2>$&nbsp;4,215,942&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT STYLE="border-bottom:solid 2px #000000;"><FONT FACE="Times New Roman" SIZE=2>$&nbsp;4,373,983&nbsp;</FONT></TD></TR>
</TABLE>

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<A NAME=A021></A>
<H1 ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Capital Expenditures and
Requirements </FONT></H1>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Our capital commitments are set out
below: </FONT></P>

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<P ALIGN="Center"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>6 </FONT></P>

<TABLE CELLPADDING="0" CELLSPACING="0" BORDER="1" WIDTH="600" ALIGN="Center">
<TR VALIGN=Bottom>
     <TH><FONT FACE="Times New Roman" SIZE=2></FONT></TH>
     <TH><FONT FACE="Times New Roman" SIZE=2></FONT></TH>
     <TH><FONT FACE="Times New Roman" SIZE=2></FONT></TH>
     <TH><FONT FACE="Times New Roman" SIZE=2></FONT></TH>
     <TH><FONT FACE="Times New Roman" SIZE=2></FONT></TH></TR>
<TR VALIGN=Bottom>
     <TD WIDTH=38% ALIGN=LEFT STYLE="border-bottom:solid 1px #000000;"><FONT FACE="Times New Roman" SIZE=2>Contractual Cash Obligations</FONT></TD>
     <TD WIDTH=15% ALIGN=RIGHT STYLE="border-bottom:solid 1px #000000;"><FONT FACE="Times New Roman" SIZE=2>Total&nbsp;</FONT></TD>
     <TD WIDTH=18% ALIGN=RIGHT STYLE="border-bottom:solid 1px #000000;"><FONT FACE="Times New Roman" SIZE=2>Less than 1 year&nbsp;</FONT></TD>
     <TD WIDTH=15% ALIGN=RIGHT STYLE="border-bottom:solid 1px #000000;"><FONT FACE="Times New Roman" SIZE=2>1 to 3 years</FONT></TD>
     <TD WIDTH=15% ALIGN=RIGHT STYLE="border-bottom:solid 1px #000000;"><FONT FACE="Times New Roman" SIZE=2>3 to 5 years</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>Accounts payable and accrued expenses</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=2>$1,707,512&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=2>$1,707,512&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=2>$-</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=2>$-</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>Deferred wages</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=2>385,633&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=2>385,633&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=2>-</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=2>-</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>Other notes payable</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=2>558,909&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=2>558,909&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=2>-</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=2>-</FONT></TD></TR>

<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>Related party payable</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=2>141,500&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=2>141,500&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=2>-</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=2>-</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>Accrued interest</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=2>248,092&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=2>248,092&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=2>-</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=2>-</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>Debentures payable</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=2>137,000&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=2>127,000&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=2>10,000</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=2>-</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT STYLE="border-bottom:solid 1px #000000;" ><FONT FACE="Times New Roman" SIZE=2>Building leases</FONT></TD>
     <TD ALIGN=RIGHT STYLE="border-bottom:solid 1px #000000;"><FONT FACE="Times New Roman" SIZE=2>3,238&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT STYLE="border-bottom:solid 1px #000000;"><FONT FACE="Times New Roman" SIZE=2>3,238&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT STYLE="border-bottom:solid 1px #000000;"><FONT FACE="Times New Roman" SIZE=2>-</FONT></TD>
     <TD ALIGN=RIGHT STYLE="border-bottom:solid 1px #000000;"><FONT FACE="Times New Roman" SIZE=2>-</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT STYLE="border-bottom:solid 2px #000000;"><FONT FACE="Times New Roman" SIZE=2>Total contractual cash obligations</FONT></TD>
     <TD ALIGN=RIGHT STYLE="border-bottom:solid 2px #000000;"><FONT FACE="Times New Roman" SIZE=2>$3,181,884&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT STYLE="border-bottom:solid 2px #000000;"><FONT FACE="Times New Roman" SIZE=2>$3,171,884&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT STYLE="border-bottom:solid 2px #000000;"><FONT FACE="Times New Roman" SIZE=2>$ 10,000</FONT></TD>
     <TD ALIGN=RIGHT STYLE="border-bottom:solid 2px #000000;"><FONT FACE="Times New Roman" SIZE=2>$-</FONT></TD></TR>
</TABLE>



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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>We have material capital commitments
that will likely require us to obtain adequate financing to meet these obligations.
Because of our lack of liquidity we may be unable to pay these capital commitments and as
such they are subject to risks of default which could result in the forfeiture of property
and mining claim rights. The occurrence of any such risks will negatively affect our
operations and potential revenues. These commitments are: </FONT></P>

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               <TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0 BORDER=0>
                    <TR VALIGN=TOP>
                    <TD WIDTH=10%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
                    <TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>1. </FONT></TD>
                    <TD WIDTH=85%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
                    Our accounts payable and accrued expenses of $1,707,512, which include trade
                    payables and general obligations. These obligations will either become due
                    within the next month, are currently due, or are in some cases more than 90 days
                    past due. Of the total accounts payable amount, $1,271,691 is related to
                    accounts and wages payable incurred as the operator of the Jerritt Canyon mill.
                    We are reliant on payments from Queenstake Resources USA, Inc. to meet these
                    obligations. At the time of this filing, Queenstake owes us $2,026,876 out of
                    which we intend to pay our accounts payable. Queenstake has not made payments to
                    us to cover these obligations incurred on their behalf. We have filed a
                    complaint against Queenstake Resources USA in the Fourth Judicial District Court
                    of the state of Nevada for Elko County to obtain payment to retire these
                    obligations. A more detail description of this action is contained under part
                    II, Item 1, Legal Proceedings. We are in litigation with Queenstake USA at the
                    present time and do not expect to receive the cash for the amount due until the
                    litigation is resolved, and then only to the extent that Queenstake USA is
                    capable of making payment to us, or to the extent we are able to hold its parent
                    liable for its debts. While we have booked an allowance for uncollectible
                    accounts in the amount of $1,078,129. To the extent that we do not receive the
                    cash payments from Queenstake USA timely, we may have to write the collectible
                    balance to zero and reverse the accounting entry into income &#150; which will
                    reduce our revenues during that period by an additional $948,747. It should be
                    noted that the production costs incurred during the six month period is greater
                    than the amount of cash received from Queenstake USA (although less than the
                    amount we believe is due to us). We have an obligation to pay these expenses
                    notwithstanding Queenstake USA&#146;s failure to make payment to us. In
                    addition, $162,000 of the payable amount relates to our Bolivian operations
                    which we have sold to an unaffiliated third party. If the transaction is
                    completed (of which there can be no assurance), we will be paid for the
                    obligation or it will be assumed by the third party and will no longer be our
                    obligation. </FONT></TD>
                    </TR>
                    </TABLE>
                    <BR>

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                    <TD WIDTH=10%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
                    <TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>2. </FONT></TD>
                    <TD WIDTH=85%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
                    Our deferred wages are payable in cash to our officers in the United States in
                    the amount of $270,687 plus additional payroll taxes of $18,863. Of this amount,
                    $96,082 is owed to employees in Bolivia and relates to our Bolivian operations
                    which we have sold to an unaffiliated third party. If the transaction is
                    completed (of which there can be no assurance), we will be paid for this
                    obligation or it will be assumed by the third party and will no longer be our
                    obligation. </FONT></TD>
                    </TR>
                    </TABLE>
                    <BR>

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                    <TD WIDTH=10%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
                    <TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>3. </FONT></TD>
                    <TD WIDTH=85%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
                    We have other notes payable, including: </FONT></TD>
                    </TR>
                    </TABLE>
                    <BR>

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               <TD WIDTH=20%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
               <TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>(a) </FONT></TD>
               <TD WIDTH=75%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
               A note in the face amount of $220,000 payable to Casco Credit with an interest
               rate of 12%, which matured on March 24, 2009. We did not pay this note when it
               was due. The creditor has not yet demanded payment or declared default. At the
               option of the holder, the holder may declare a default which will result in the
               note beginning to accrue interest at a default rate of 5% per month. This note
               is secured by our Gold Bar Mill, and if the creditor declares a default the
               holder could attempt to foreclose against this asset. As of March 31, 2010, we
               had accrued $140,968 in interest on this note. </FONT></TD>
               </TR>
               </TABLE>
               <BR>

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               <TD WIDTH=20%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
               <TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>(b) </FONT></TD>
               <TD WIDTH=75%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
               A note in the face amount of $33,000 payable to Casco Credit with and interest
               rate of 12%, which matured on February 21, 2010. We did not pay this note when
               it was due. The creditor has not yet demanded payment or declared default. At
               the option of the holder, the holder may declare a default which will result in
               the note beginning to accrue interest at a default rate of 5% per month. This
               note is secured by our Gold Bar Mill, and if the creditor declares a default the
               holder attempt to foreclose against this asset. </FONT></TD>
               </TR>
               </TABLE>
               <BR>

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               <TD WIDTH=20%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
               <TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>(c) </FONT></TD>
               <TD WIDTH=75%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
               A note in the face amount of $70,909 payable to Edmundo Arauz with an interest
               rate of 8% per annum which matures on December 31, 2010. </FONT></TD>
               </TR>
               </TABLE>
               <BR>

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               <TD WIDTH=20%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
               <TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>(d) </FONT></TD>
               <TD WIDTH=75%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
               A note totaling $15,000 payable to John Saunders with an interest rate of 8% per
               annum which matured on March 31, 2010. We were unable to pay this amount when it
               became due. </FONT></TD>
               </TR>
               </TABLE>
               <BR>

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               <TD WIDTH=20%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
               <TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>(e) </FONT></TD>
               <TD WIDTH=75%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
               A note payable to Lonestar Equity Group with an interest rate of 8% maturing on
               December 31, 2009. On June 30, 2009 this note was converted into 5,500 shares of
               our Series D preferred stock. On December 24, 2009 we entered into a new note
               with Lonestar Equity Group upon the receipt of $220,000 in cash. This note
               carries an interest rate of 8% per annum and matures on December 31, 2010. </FONT></TD>
               </TR>
               </TABLE>
               <BR>

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<P ALIGN="Center"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>7 </FONT></P>

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                    <TD WIDTH=10%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
                    <TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>4. </FONT></TD>
                    <TD WIDTH=85%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
                    Effective February 6, 2007 we issued Tracy Madsen, our Chief Financial Officer,
                    a promissory note to cover the payment of contractual retention bonuses payable
                    that we originally intended to pay through the issuance of our common stock.
                    This note originally was for $50,000, had a term of 2 years, and was convertible
                    into 11,112 shares of our common stock. Our Board of Directors elected to use a
                    convertible promissory note to meet this retention bonus commitment because in
                    large part because we did not have sufficient amount of common stock available
                    for issuance. On April 1, 2009 an additional $25,000 in stock owing to Mr.
                    Madsen 55,556 shares was added to this note and on February 6, 2010 an
                    additional $25,000 convertible into 55,556 shares was added to this note for a
                    total $100,000. This note has been extended until July 31, 2010. As March 31,
                    2010 we had accrued $14,846 in interest on this note. </FONT></TD>
                    </TR>
                    </TABLE>
                    <BR>

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                    <TD WIDTH=10%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
                    <TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>5. </FONT></TD>
                    <TD WIDTH=85%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
                    As of December 31, 2009, we had convertible debentures outstanding totaling
                    $127,000. Each of these debentures carries an interest rate of 8% per annum
                    payable at maturity. Two of these debentures matured on May 16, 2010 and July 7,
                    2010 and the other debenture in the face amount of $52,000 matured on March 19,
                    2010. By their terms each debenture, and its accrued interest, is convertible
                    into restricted shares of our common stock. These debentures are convertible
                    into a total of 298,824 shares of our restricted common stock. On February 3,
                    2010 we entered into an additional debenture totaling $10,000. This debenture
                    matures on February 3, 2012 and carries an interest rate of 10% per annum. It is
                    convertible into 44,445 shares of our restricted common stock. </FONT></TD>
                    </TR>
                    </TABLE>
                    <BR>

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<TD WIDTH=15%>&nbsp;</TD>
<TD WIDTH=85%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
As
these debentures carry a conversion rate that is less the than market rate the rules of
beneficial conversion apply. The difference between the conversion rate and the market
rate is classified as a discount on the debentures and accreted over the term of the
debenture. The aggregate face amount of the outstanding debentures is $137,000. On the
balance sheet they have been discounted by $18,542 to $118,458 as of March 31, 2010. The
discounted amount is accreted over the term of the debenture or in its entirety if the
debenture is converted during the term. During the quarter ended March 31, 2010,
$23,208was accreted to financing costs. </FONT></TD>
</TR>
</TABLE>
<BR>

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                    <TD WIDTH=10%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
                    <TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>6. </FONT></TD>
                    <TD WIDTH=85%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
                    Our obligation to pay accrued interest on Items 2-4 in the amount of $248,092.
                    Interest on these notes is expensed each quarter and accrued. </FONT></TD>
                    </TR>
                    </TABLE>
                    <BR>

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                    <TD WIDTH=10%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
                    <TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>7. </FONT></TD>
                    <TD WIDTH=85%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
                    Our obligation for monthly lease payments of $1,619 per month for our Salt Lake
                    City, Utah office, which matures on July 31, 2010. We have the option of
                    canceling the remaining lease by paying of one additional month&#146;s rent. </FONT></TD>
                    </TR>
                    </TABLE>
                    <BR>

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                    <TD WIDTH=10%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
                    <TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>8. </FONT></TD>
                    <TD WIDTH=85%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
                    Our obligation to pay Livstar Management Services (Livstar), 5% of the
                    compensation (not including reimbursement of expenses incurred) we received as a
                    result of our mill operating agreement with Queenstake USA through a settlement
                    agreement entered into on October 31, 2008, which amended a Consulting Agreement
                    entered into on June 2, 2007, which replaced an earlier agreement dated April
                    18, 2007. As of March 31, 2010, we owed Livstar $37,076 which is included in our
                    accounts payable. These commissions are only payable upon receipt of payment
                    from Queenstake USA and will decrease with any decrease in the management fee
                    ultimately received by us from Queenstake. We cannot offer any assurance when,
                    if ever, we will receive payments from Queenstake USA. </FONT></TD>
                    </TR>
                    </TABLE>
                    <BR>

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                    <TD WIDTH=10%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
                    <TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>9. </FONT></TD>
                    <TD WIDTH=85%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
                    Our obligation to pay Blane Wilson, our Chief Operating Officer, 3% of the
                    compensation (not including reimbursement of expenses incurred) we receive as a
                    result of our agreement with Queenstake USA, and 3% of any revenues that may be
                    generated from our Gold Bar mill, as part of his employment contract. As of
                    March 31, 2010, we owed Mr. Wilson $28,696 under this agreement, which is
                    included in our accounts payable. These commissions are only payable upon
                    receipt of payment from Queenstake USA and will decrease with any decrease in
                    the management fee ultimately received by us from Queenstake. We cannot offer
                    any assurance when, if ever, we will receive payments from Queenstake USA. </FONT></TD>
                    </TR>
                    </TABLE>
                    <BR>

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                    <TD WIDTH=10%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
                    <TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>10. </FONT></TD>
                    <TD WIDTH=85%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
                    While it is not a cash obligation, we have a commitment to pay $75,000 in stock
                    to Harlan (Mac) DeLozier as part of his employment agreement for the years 2006,
                    2007 and 2008. Mr. Delozier is our Vice President of Bolivian Operations and a
                    member of our Board of Directors. Additionally, as of March 31, 2010, we have
                    accrued $12,882 in interest on this stock payable as we currently do not have
                    sufficient shares to satisfy this obligation. </FONT></TD>
                    </TR>
                    </TABLE>
                    <BR>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Costs to maintain our properties have
higher priority than other current capital requirements. As a result, we have delayed
payment to some of our other creditors. </FONT></P>

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<P ALIGN="Center"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>8 </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Many of the foregoing obligations are
past due, and we may not be able to timely pay others that become due in the near future.
Should we be unable to generate sufficient revenues through business operations, or raise
additional funding from outside investors, industry participants, or other sources, we
will be forced to attempt to negotiate extensions to certain of our obligations or take
other actions to protect our interest in our properties. Since Queenstake USA unilaterally
and abruptly (and we believe wrongfully) terminated its operating agreement with us, we
are no longer engaged in any operations and (therefore) we cannot expect to receive any
revenues from operations (although we are seeking judicial assistance in resolving the
outstanding issues). Historically, we have financed our capital requirements through
short-term loans from affiliates and non-affiliates, as well as from private placements of
our securities to accredited investors. There is no assurance that we will be successful
in financing our business operations by these means. Further, if we seek to raise
additional capital through the sale of our debt or equity securities there is no assurance
that capital will be available to us on reasonable terms, if at all. Ultimately, our
ability to finance our operations will be dependent on our ability to generate positive
cash flow from operations in amounts sufficient to support all of our financial
obligations. We have attempted, and will continue to attempt, to develop new grant and
funding sources from United States, Canada, and overseas government agencies, private
lenders, and financial institutions. We may also conduct negotiations with other mining
companies regarding a possible merger or joint ventures to obtain economies of scale and
access to capital markets </FONT></P>

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<A NAME=A022></A>
<H1 ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Equity </FONT></H1>


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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>On March 23, 2010 our shareholders
approved an amendment to our Articles of Incorporation to effect a 1-for-500 reverse stock
split. Since that date we have taken steps to effect the reverse stock split, including
filing an amendment to our Articles of Incorporation (which amendment became effective
under Colorado law on April 28, 2010) and notifying the Financial Industry Regulatory
Authority (&#147;FINRA&#148;) of the reverse split. On May 13, 2010, subsequent to the end
of the period being reported, FINRA took the necessary actions, and made the required
notifications, to cause the reverse stock split to be reflected in the trading markets.
Upon the reverse split being effected every 500 shares of our issued and outstanding
common stock was automatically combined into one issued and outstanding share without any
change in the par value of such shares.&nbsp; No fractional shares are being issued in
connection with the reverse stock split.&nbsp; Shareholders who were entitled to a
fractional share are entitled to receive a whole share. The reverse split affected all of
the holders of our common stock uniformly and did not affect any shareholder&#146;s
percentage of ownership interest, except to the extent that the reverse split resulted in
any holder being granted a whole share for any fractional share that resulted from the
reverse split. The number of common shares into which each of our outstanding series of
Preferred Stock may be convertible into, as well as the shares of common stock underlying
options, warrants and convertible debentures was proportionately reduced and the exercise
prices of any warrants or options, and the conversion prices of any convertible
debentures, was proportionately increased by the reverse stock split.&nbsp; </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Following the reverse stock split,
there will remain 2,000,000,000 shares of common stock authorized, and 10,000,000 shares
of preferred stock authorized. The preferred stock outstanding will remain outstanding,
but the number of shares of common stock into which the various series of preferred stock
outstanding are convertible were proportionally adjusted. The convertible debentures,
convertible notes, stock payable, and stock options will also remain outstanding, but the
number of shares of common stock issuable upon conversion or exercise will also be
proportionally reduced. The following table only sets forth approximate numbers because
the rounding up of fractional shares will occur on a shareholder-by-shareholder basis. </FONT></P>



<TABLE CELLPADDING="0" CELLSPACING="0" BORDER="1" WIDTH="600" ALIGN="Center">
<TR VALIGN=Bottom>
     <TH><FONT FACE="Times New Roman" SIZE=2></FONT></TH>
     <TH><FONT FACE="Times New Roman" SIZE=2></FONT></TH>
     <TH><FONT FACE="Times New Roman" SIZE=2></FONT></TH></TR>
<TR VALIGN=Bottom>
     <TD WIDTH=50% ALIGN=LEFT STYLE="border-bottom:solid 1px #000000;"><FONT FACE="Times New Roman" SIZE=2>Fully diluted shares<BR>(as if the 1-for 500 reverse stock split were in effect)</FONT></TD>
     <TD WIDTH=25% ALIGN=RIGHT STYLE="border-bottom:solid 1px #000000;"><FONT FACE="Times New Roman" SIZE=2>For the three  months ended <BR>March 31, 2010<BR></FONT></TD>
     <TD WIDTH=25% ALIGN=RIGHT STYLE="border-bottom:solid 1px #000000;"><FONT FACE="Times New Roman" SIZE=2>  For the year ended  <BR>December 31, 2009</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2></FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=2></FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=2></FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>Basic shares outstanding</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=2>3,950,102&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=2>3,950,102&nbsp;</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>Series B preferred conversion</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=2>40,000&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=2>40,000&nbsp;</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>Series C preferred conversion</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=2>975,493&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=2>975,493&nbsp;</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>Series D preferred conversion</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=2>3,696,095&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=2>3,696,095&nbsp;</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>Convertible debentures &amp; convertible notes payable</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=2>298,824&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=2>298,824&nbsp;</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>Stock payable</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=2>106,250&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=2>106,250&nbsp;</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT ><FONT FACE="Times New Roman" SIZE=2>Stock options approved</FONT></TD>
     <TD ALIGN=RIGHT STYLE="border-bottom:solid 1px #000000;"><FONT FACE="Times New Roman" SIZE=2>240,531&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT STYLE="border-bottom:solid 1px #000000;"><FONT FACE="Times New Roman" SIZE=2>203,829&nbsp;</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT STYLE="border-bottom:solid 1px #000000;" ><FONT FACE="Times New Roman" SIZE=2>Total</FONT></TD>
     <TD ALIGN=RIGHT STYLE="border-bottom:solid 1px #000000;"><FONT FACE="Times New Roman" SIZE=2>9,307,295*</FONT></TD>
     <TD ALIGN=RIGHT STYLE="border-bottom:solid 1px #000000;"><FONT FACE="Times New Roman" SIZE=2>9,270,593*</FONT></TD></TR>
</TABLE>

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<TD WIDTH=5%>&nbsp;</TD>
<TD WIDTH=95%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
*
       Approximate, due to likely rounding errors. </FONT></TD>
</TR>
</TABLE>
<BR>

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<A NAME=A023></A>
<H1 ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Results of Operations </FONT></H1>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>The following sets forth certain
information regarding our results of operations for the three-month period ended March 31,
2010, compared with the same period in 2009. </FONT></P>


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<P ALIGN="Center"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>9 </FONT></P>


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<A NAME=A024></A>
<H1 ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>(a) Three Months Ended
March 31, 2010/Three Months Ended March 31, 2009 </FONT></H1>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2><U>Revenues.</U>&nbsp;&nbsp; During
the three months ended March 31, 2010, we generated revenues of $0 compared to $814,683 in
revenue during the same 2009 period. All revenues generated during the three-month periods
ended March 31, 2010 and 2009, were from our mill operating agreement with Queenstake
Resources USA, Inc. (&#147;Queenstake&#148; the wholly owned subsidiary of Yukon-Nevada
Gold Corp. [&#147;YNG&#148;]) for maintenance and milling operations at the Jerritt Canyon
gold mill in central Nevada (which agreement has been terminated by Queenstake USA as we
have discussed above, as well as in Part II, Item 1 below). Through the termination of our
mill operating agreement by Queenstake USA at the Jerritt Canyon mill we had 82 employees
working on-site at the Jerritt Canyon mill performing duties related to its operation. </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2><U>Production Costs</U>. During the
three-month period ending March 31, 2010, we had cost of goods sold of $0 related to
expenses at our Jerritt Canyon mill operations. During the corresponding 2009 period we
recorded production costs of $676,332.&nbsp; Production costs during the three month
period ended March 31, 2009 were to our operation contract with Queenstake Resources, USA.
It should be noted that the production costs incurred during the three month period is
greater than the amount of cash received from Queenstake USA (although less than the
amount we believe is due to us). We have an obligation to pay these expenses
notwithstanding Queenstake USA&#146;s failure to make payment to us. </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2><U>Exploration and Development
Expenses</U>. Exploration and development costs decreased by $25,318, to $16,510 for the
three months ended March 31, 2010, from $41,828 for the comparable 2009 period.&nbsp;
Exploration and development costs decreased as a result of the discontinuation of
operations at the C Zone in Bolivia. Most exploration and development costs that were
incurred were related to maintenance work conducted at our Gold Bar mill. </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2><U>General &amp; Administrative
Expenses.</U> General and administrative expenses increased by $1,567,&nbsp;to $270,612
for the three months ended March 31, 2010, from $269,045 during the three months ended
March 31, 2009.&nbsp; The increase in our general administrative expense is primarily
attributable&nbsp;to the increase in legal expenses which were directly related to our
litigation with Queenstake in order to recover monies owed to us as a result of the
termination of our agreement to operate the Jerritt Canyon mill. We anticipate that
additional legal expenses will be incurred during subsequent quarters until which time our
legal action against Queenstake is settled. We cannot however provide an accurate estimate
at this time as to the total amount of legal expenses that will be accrued. We also
accrued additional expenses related to our solicitation for proxies and our shareholders
meeting held on March 23, 2010. </FONT></P>



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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2><U> Bad Debt Expense</U>. Bad debt
expense increased to $202,688 during the three months ended March 31, 2010 from $0 during
the three month period ended March 31, 2009. This increase in bad debt expense was the
result of an allowance for uncollectible Queenstake receivables of $202,688. Due to the
suspension of our contract with Queenstake Resources USA and the subsequent lawsuit we
cannot guarantee that we will be able to collect all fund s owed to us under the operating
contract. We have entered an allowance of 10% of the outstanding receivable balance from
Queenstake during the quarter for a total allowance for uncollectible receivables of
$1,078,129. While we fully expect to recover payment for monies owed to Golden Eagle by
Queenstake, we have taken an allowance for bad debt in the event we are unable to collect
the full amount. We cannot guarantee that we will be able to recover any funds due to
Golden Eagle and we may increase our allowance for bad debt in the future if our efforts
to collect these funds are unsuccessful or if our legal and collection efforts take longer
than expected. </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2><U>Depreciation and Depletion
Expenses</U>.&nbsp; Depreciation and depletion decreased by $18,825 to $51 during the
three months ended March 31, 2010, from $18,876 during the same period in 2009.&nbsp; The
decrease was the result of the impairment of virtually all fixed assets in Bolivia as of
December 31, 2009, related to the sale of our Bolivian operations during the quarter ended
March 31, 2010. </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2><U>Operating Loss.</U>&nbsp;
Operating loss increased by $298,461 to $489,859 for the three&nbsp;months ended March 31,
2010, from an operating loss of $191,398 for the three months ended March 31, 2009.&nbsp;
The increased loss was primarily due to the bad debt expense we accrued in the amount of
$202,688 and legal fees related to the collection of Queenstake receivables. If the
amounts due to us from Queenstake USA prove not to be collectible, or of delayed
collectibility, we may not be able to recognize those amounts as revenues. Such a
restatement of financial statements (if required) would increase our operating loss for
the period by $998,747. </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2><U>Interest Expense.</U>&nbsp;
Interest expense for the three-month period ended March 31, 2010, increased by $33,115 to
$53,533, from $20,418 during the same 2009 period.&nbsp; The increase was primarily the
result of penalty interest which accrued on our Casco notes payable. <U>Loss on Sale of
Assets.</U>&nbsp; During the quarter ended March 31, 2010, we incurred a net loss of
$8,261 from the sale and disposition of assets in Bolivia. During the same 2009 period
there was a $3,965 gain on the sale of fixed assets. </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2><U>Accretion of Note Discount.</U>
During the three-month period ended March 31, 2010<U>,</U> we incurred $23,208 in costs
related to the accretion of the discount on debentures and convertible notes payable
compared to $36,923 during the same 2009 period. As of March 31, 2010, we had four
Convertible Debentures outstanding totaling $137,000. . On the balance sheet they have
been discounted by $18,542 to $118,458. The discounted amount is accreted over the term of
the debenture or in its entirety if the debenture is converted during the term. During the
three months ended March 31, 2010, $23,208 was accreted to financing costs. </FONT></P>

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<P ALIGN="Center"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>10 </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2><U>Other Net Expenses and
Income.</U>&nbsp; Other expenses net of other income for the quarter ended March 31, 2010,
were $1,198 compared to other expense of $209,154 during the same 2009 period. </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2><U>Net Loss.</U>&nbsp; Net loss for
the three-month period ended March 31, 2010, increased by $176,894 to $630,822 from
$453,928 during the same 2009 period.&nbsp; The increase was primarily due to the increase
in legal costs and the bad debt expense related to the collection of receivables from
Queenstake. </FONT></P>

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<A NAME=A025></A>
<H1 ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Liquidity and capital
resources </FONT></H1>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Our auditors issued a going concern
opinion on our audited financial statements for the fiscal year ended December 31, 2009 as
we had a significant working capital deficit and we had substantial losses since our
inception. These and other matters raise substantial doubt about our ability to continue
as a going concern. Due to our working capital deficit of $2,113,272at March 31, 2010 and
$1,649,318 at December 31, 2009, we are unable to satisfy our current cash requirements
for any substantial period of time through our existing capital. We anticipate total
operating expenditures of approximately $1,000,000 pending adequate financing over the
next twelve months for general and administrative expenses. </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Our cash balance of $126 as of March
31, 2010, is insufficient to meet these planned expenses. In order to continue to pay our
expenses we may seek to raise additional cash by means of debt and/or equity financings.
We have substantial commitments as summarized under our Capital Commitments and
Requirements Section above that are subject to risks of default and forfeiture of property
and mining rights. If we are unable to meet our obligations, or negotiate satisfactory
arrangements, we may have to liquidate our business and undertake any or all the steps
outlined below. </FONT></P>


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<TR VALIGN=TOP>
<TD ALIGN=RIGHT WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>o&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;  </FONT></TD>
<TD ALIGN=LEFT WIDTH=95%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
Significantly
reduce, eliminate or curtail our business operating activities to reduce operating costs; </FONT></TD>
</TR>
</TABLE>
<BR>

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<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0>
<TR VALIGN=TOP>
<TD ALIGN=RIGHT WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>o&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;  </FONT></TD>
<TD ALIGN=LEFT WIDTH=95%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
Sell,
assign or otherwise dispose of our assets, if any, to raise cash or to settle claims by
creditors; </FONT></TD>
</TR>
</TABLE>
<BR>

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<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0>
<TR VALIGN=TOP>
<TD ALIGN=RIGHT WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>o&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;  </FONT></TD>
<TD ALIGN=LEFT WIDTH=95%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
Pay
our liabilities in order of priority, if we have available cash to pay such liabilities; </FONT></TD>
</TR>
</TABLE>
<BR>

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<TR VALIGN=TOP>
<TD ALIGN=RIGHT WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>o&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;  </FONT></TD>
<TD ALIGN=LEFT WIDTH=95%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
If
any cash remains after we satisfy amounts due to our creditors, distribute any remaining
cash to our shareholders in an          amount equal to the net market value of our net
assets; </FONT></TD>
</TR>
</TABLE>
<BR>

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<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0>
<TR VALIGN=TOP>
<TD ALIGN=RIGHT WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>o&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;  </FONT></TD>
<TD ALIGN=LEFT WIDTH=95%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
File
a Certificate of Dissolution with the State of Colorado to dissolve our corporation and
close our business; </FONT></TD>
</TR>
</TABLE>
<BR>

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<TR VALIGN=TOP>
<TD ALIGN=RIGHT WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>o&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;  </FONT></TD>
<TD ALIGN=LEFT WIDTH=95%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
Make
the appropriate filings with the Securities and Exchange Commission so that we will no
longer be required to file          periodic and other required reports with the
Securities and Exchange Commission; and </FONT></TD>
</TR>
</TABLE>
<BR>

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<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0>
<TR VALIGN=TOP>
<TD ALIGN=RIGHT WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>o&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;  </FONT></TD>
<TD ALIGN=LEFT WIDTH=95%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
Make
the appropriate filings with FINRA to affect a de-listing of our stock. </FONT></TD>
</TR>
</TABLE>
<BR>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>If we have any liabilities that we
are unable to satisfy and we qualify for protection under the U.S. Bankruptcy Code, we may
voluntarily file for reorganization under Chapter 11 or liquidation under Chapter 7. Our
creditors may also file a Chapter 7 or Chapter 11 bankruptcy petition. If our creditors or
we file for Chapter 7 or Chapter 11 bankruptcy, our creditors will take priority over our
stockholders. If we fail to file for bankruptcy under Chapter 7 or Chapter 11 and we have
creditors; such creditors may institute proceedings against us seeking forfeiture of our
assets, if any. At the date of this filing, we have not contemplated seeking any
protection in bankruptcy and have always been able to resolve our pending liabilities
satisfactorily. However, we cannot guarantee that this will always be the case in the
future. </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>We do not know and cannot determine
which, if any, of these actions we will be forced to take. If any of these foregoing
events occur, investors could lose their entire investment in our shares. </FONT></P>

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<A NAME=A026></A>
<H1 ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Plan of Operations </FONT></H1>

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<A NAME=A027></A>
<P ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>A. <U>U.S. Operations and
Assets</U> </FONT></P>

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<A NAME=A028></A>
<P ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2><U><I>The Jerritt Canyon Gold
Mill</I></U> </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>At the present time we are not
engaged in any business operations with respect to the Jerritt Canyon Gold Mill, although
we continue to believe that we have a contractual right to be engaged in those operations
and have brought litigation in an effort to assert our rights as we interpret them to be.
This litigation is further described below. </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>As part of our program of
diversification into north-central Nevada, on October 14, 2008 we entered into a Mill
Operating Agreement (the &#147;Queenstake Agreement&#148;) with Queenstake USA, to operate
the 4,000 ton-per-day (tpd) Jerritt Canyon CIL gold mill located 50 miles north of Elko,
Nevada. The Jerritt Canyon Mill shut down in August 2008 due to certain mechanical and
labor issues, and in September 2008, pursuant to a verbal agreement with Queenstake USA,
we undertook the maintenance and environmental regulatory compliance operations at the
Jerritt Canyon Mill with the aim of bringing it back on-line in full operation. </FONT></P>


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<P ALIGN="Center"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>11 </FONT></P>


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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Through March 25, 2009 we had several
full-time employees on-site at the Jerritt Canyon Mill, including our Chief Operating
Officer, Blane W. Wilson, as well as a number of part-time employees. On March 25, 2009,
the Nevada Division of Environmental Protection authorized the&nbsp;restart of operations
at the Jerritt Canyon Mill. At that time, in reliance on Queenstake USA&#146;s
representations and actions that it intended to restart milling operations, we began
hiring additional personnel. As of June 10, 2009 we had 90 employees working for us at the
Jerritt Canyon Mill. </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Queenstake USA funded all costs of
the maintenance and regulatory environmental compliance operations prior to the
recommencement of operations at the Jerritt Canyon Mill. Additionally, pursuant to the
Queenstake Agreement, Queenstake USA was obligated to pay us an administrative fee equal
to 20% of those costs. However, due to the unexpected length of time involved in getting
the Jerritt Canyon Mill back into operation, and in solidarity with Queenstake USA, we
agreed to accept an 8% administrative fee on operational costs and to defer the balance of
the 20% fee until the mill commenced full processing operations. We have accrued the 12%
difference on our financial statements as an accounts receivable, however it is unclear
when or if we will ever collect all or part of that receivable, although collection of
that receivable is one of the focuses of the litigation. From March 25, 2009, through the
alleged termination of the Queenstake Agreement on June 10, 2009, we continued to operate
under the belief that we were due the full 20% administrative fee for the period until
milling operations recommenced at the Jerritt Canyon Mill. </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>In accordance with the Queenstake
Agreement, once the Jerritt Canyon Mill was in full operation, we were to be the mill
operator for a term of 5 years, which was renewable at the option of Queenstake USA for an
additional 5-year term. We were entitled to a fee of 8% of all operator costs, as well as
a percentage fee or profit share of 20% of the net profits from operations. Furthermore,
we were also to receive a $500,000 interest-free loan for initial operating capital from
Queenstake USA, payable in equal monthly installments over the first 5-year term of the
Queenstake Agreement. Additionally, we were entitled to certain production bonuses which
were to be triggered on the occurrence of certain events or the achievement of certain
milestones. </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>On June 10, 2009 Queenstake USA
notified us that it believed the Queenstake Agreement was terminated. We believe that
Queenstake wrongfully attempted to terminate the Queenstake Agreement and are currently in
litigation with Queenstake USA in which through our crossclaims we have asserted various
legal claims against Queenstake USA (<I>See</I>, Item II, Part 1, Legal Proceedings
below.). Based on statements in reports filed by Yukon Gold (Queenstake USA&#146;s parent
corporation) with the Securities and Exchange Commission, which we believe are false, we
may assert additional claims against Yukon-Nevada Gold and/or Queenstake USA. </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>In early January 2010, the court
denied our motion for a Writ of Restitution which sought to put us back in possession of
the Jerritt Canyon Mill under the Queenstake Agreement. However, the court has not yet
made any rulings with respect to the claims for damages we have asserted against
Queenstake USA. As such, we do not expect to engage in any operations at the Jerritt
Canyon Mill during fiscal 2010. </FONT></P>

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<A NAME=A029></A>
<P ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2><I>The Gold Bar Mill.</I> </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>In 2004, we purchased the 3,500 to
4,500 tpd Gold Bar CIP gold mill (the &#147;Gold Bar Mill&#148;) located 25 miles
northwest of Eureka, Nevada.&nbsp; Initially, our plan was to disassemble the Gold Bar
Mill and transport it to Bolivia to be reconstructed on our former A Zone project in
eastern Bolivia. However, for various reasons we determined that the best course of action
with regards to the Gold Bar Mill was to leave it in place and explore our options related
to the mill in Nevada. The Gold Bar Mill was not in operation when we acquired it and it
has not been in operation during our period of ownership. </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>The Gold Bar Mill is located in the
center of the Cortez Trend, a series of gold deposits at the southern end of the Battle
Mountain-Eureka Gold Belt (the second largest gold-producing area in Nevada, and estimated
to contain or have produced 31.5 million troy ounces of gold). The Cortez Trend runs
parallel to the Carlin Trend (the largest gold producer in Nevada and one of the top three
gold fields in the world with production and estimated resources of 180 million ounces). </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>We are exploring and considering
various alternatives with respect to the Gold Bar Mill. Among the options we are
considering with respect to the Gold Bar Mill are: </FONT></P>

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<P ALIGN="Center"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>12 </FONT></P>


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<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0>
<TR VALIGN=TOP>
<TD ALIGN=RIGHT WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>-&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;  </FONT></TD>
<TD ALIGN=LEFT WIDTH=95%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
Rehabilitating
the Gold Bar Mill for toll refining (which is defined as processing ore through our mill
for a fixed fee or               toll that is produced by a third-party mining company
from its mine) on its current site, </FONT></TD>
</TR>
</TABLE>
<BR>

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<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0>
<TR VALIGN=TOP>
<TD ALIGN=RIGHT WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>-&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;  </FONT></TD>
<TD ALIGN=LEFT WIDTH=95%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
Engaging
in a joint venture with other parties that may be able to produce ore from their mines
and wish to utilize the               mill, and </FONT></TD>
</TR>
</TABLE>
<BR>

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<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0>
<TR VALIGN=TOP>
<TD ALIGN=RIGHT WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>-&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;  </FONT></TD>
<TD ALIGN=LEFT WIDTH=95%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
An
outright sale either for cash, or stock and other consideration. </FONT></TD>
</TR>
</TABLE>
<BR>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Our ability to accomplish any of the
foregoing is contingent on our obtaining sufficient financing and identifying a joint
venture partner or a suitable buyer. In some cases, because (following the sale of the
Bolivian assets if it should be completed) the Gold Bar Mill will be our sole remaining
asset (other than cash and other current assets and our litigation), shareholder approval
may be required. </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>If we seek to commence a toll
processing or a joint venture operation at the Gold Bar Mill, we would be required to
obtain numerous permits from both the federal government and the State of Nevada, which
would be time consuming and expensive. If we are able to recommence operations or engage
in a joint venture with respect to the Gold Bar Mill we expect that we would be performing
milling operations and/or toll milling on behalf of a third party and thus it is not
likely we would be engaged the actual sale or distribution of products. Although we
believe there is a shortage of gold mills in the area of the Gold Bar Mill, there are
other companies in the general area providing milling and toll refining services in the
area including Barrick Gold Corporation, Newmont Mining, Ltd. and Yukon-Nevada Gold Corp.,
who have greater financial resources and a longer history of operations than we do. </FONT></P>

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<A NAME=A030></A>
<P ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>B. <U>Bolivian Operations
and Assets</U> </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>As described above, although we owned
certain prospects and assets in Bolivia through its 2009 fiscal year, as of March 10, 2010
we transferred control of these assets and operations (although retaining ownership). We
hope to transfer ownership of these assets and operations during the second quarter of
fiscal 2010 (of which there can be no assurance). Nevertheless the unaffiliated third
party who acquired control of the Bolivian assets and which has contracted to obtain
ownership is not in strict compliance with the terms of its agreement and, therefore, we
cannot offer any assurance that the third party will complete its contractual obligations
and obtain ownership of our Bolivian assets. If the third party defaults on its
obligations, we will continue to seek other companies that may be interested in acquiring
those assets. Unless circumstances in Bolivia and with respect to our financial condition
change markedly between now and March 2011, we do not intend to pay the claims fees for
our remaining properties which would be due on March 1, 2011. The following discussion
sets forth information regarding our Bolivian operations since we still maintain ownership
of those assets. </FONT></P>

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<A NAME=A031></A>
<P ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2><U><I>The C Zone Gold Mill and
Mine.</I></U> </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>During 2007 we completed exploration
and feasibility work on the gold mineralization of the C Zone of our Precambrian
properties in eastern Bolivia. The C Zone gold project is located approximately 5
kilometers (3.1 miles) from our former A Zone Buen Futuro gold and copper project.
Additionally, between 2006 and 2007 we operated a pilot plant on the C Zone, which we used
to refine the metallurgical process on the mineralization in the Zone. During September of
2007, as a result of environmental issues, we moved the location of our production mill
(the &#147;C Zone Mill&#148;)) from the pilot plant location approximately 700 meters
(2,300 feet) to eliminate the potential impact on a nearby marshland and to permit the
potential capacity of our Mill to increase to 2,000 tpd from the original 1,000 tpd of our
original plant design. We commenced mill operations on June 26, 2008. </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Beginning in July through October
2008, many of the residents of five eastern Bolivia departments or states began a campaign
of civil unrest to push for more autonomy for those departments from Bolivia&#146;s
central government. This civil unrest took the form of protest marches and road blockades,
which on some occasions became violent. The movement of commerce on the roads in these
departments was paralyzed during the period of unrest. As a result, our operations at the
C Zone were also paralyzed for lack of diesel fuel and other critical supplies. Once the
road blockades lifted, Bolivia immediately began to experience a scarcity of diesel fuel
throughout the country, but more acutely in the eastern departments that had participated
in the autonomy protests. Through this period of time, we were only been able to get small
lots of diesel fuel, which only allowed us to carry out a simple maintenance program at
our C Zone operations. </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>On September 11, 2008 the U.S.
Ambassador to Bolivia was declared persona non grata and on September 14, 2008 was
expelled from Bolivia. Subsequently, the U.S. Drug Enforcement Administration, the U.S.
Agency for International Development, and the Central Intelligence Agency also were
expelled from Bolivia. The Peace Corps and several other U.S. affiliated groups
voluntarily left Bolivia in light of these circumstances. </FONT></P>

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<P ALIGN="Center"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>13</FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Bolivia&#146;s also enacted new taxes
in 2009 associated with the Bolivian Mining Code that we initially believed would be
rescinded due to social pressure from the strong mining interests in western Bolivia, or
would be invalidated by the Bolivian Supreme Court. However, it does not appear that those
changes will not be rescinded or invalidated. Moreover, new taxes were recently added to
the existing tax regimen and certain taxes were changed from being deductible against
gross revenues to not being deductible. We believe that Bolivia&#146;s current mining tax
structure, at current international prices for gold, effectively levies a prohibitively
high tax on U.S. based companies such as Golden Eagle to engage in mining operations in
Bolivia. </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Given the recent civil unrest (and
likelihood that it may arise in some form in the future), on-going shortages of diesel
fuel, Bolivia&#146;s current public policy on mining taxes, and the entire political
situation in Bolivia, we suspended our operations in Bolivia as of late 2008 to analyze
our best course of action with respect to our Bolivian prospects &#150; which ultimately
resulted in our decision to transfer control of these assets with the goal of transferring
ownership entirely. We did generate $19,307 in revenue from sales of gold from our C Zone
mine and plant during the quarter ended December 31, 2008. </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>While we did not conduct mining and
milling operations at the C Zone mill during 2009, or through the end of the first
quarter, March 31, 2010, we did continue to employ an onsite security and maintenance
staff. To date in 2010 we have not conducted any active mining or milling operations with
respect to our Bolivian assets or operations. </FONT></P>

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<A NAME=A032></A>
<P ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2><I><U>Mine
Camp for A &amp; C Zone Projects.</U></I></FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>During 2007 and 2008 we completed
construction of our mine camp situated between our A Zone project and the C Zone mine and
mill in Bolivia. The mine camp includes dormitories, a dining hall, sanitation facilities,
administration buildings and warehouses and serves as camp for the construction and
operation of the C Zone mill, and the exploration and development of our A Zone project.
Activities in the mine camp are subject to the same political and economic issues
described above. </FONT></P>

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<A NAME=A033></A>
<P ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2><I><U>A Zone Buen Futuro Gold
and Copper Project.</U></I> </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>During 2009 we continued to examine
means of further developing the potential of the A Zone Buen Futuro gold and copper
project on our Precambrian properties, although our ability to do so (even assuming we had
adequate financing) was subject to the same Bolivian political and economic issues
described above. During most of 2007 and 2008 we pursued this development by obtaining
third-party advice regarding our feasibility and exploration studies by a major
independent mining and engineering firm, Washington Group International, Inc. Additional
feasibility work was also dependent on our ability to raise sufficient funds to pay our
consultants and contractors. During 2009 we suspended all exploration and development work
on the A Zone Buen Futuro gold and copper project. </FONT></P>

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<A NAME=A034></A>
<P ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2><I><U>Cangalli Gold Project.</U></I> </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>During 2009 we determined to
discontinue our efforts to develop our Cangalli and Tipuani Valley gold project in Western
Bolivia. On March 1, 2009, we elected not to renew our claims in this region. </FONT></P>

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<A NAME=A035></A>
<P ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>C. <U>Plan of Operations</U> </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Going
forward we expect to focus on business operations on the following activities summarized
below: </FONT></P>

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                    <TR VALIGN=TOP>
                    <TD WIDTH=10%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
                    <TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>1. </FONT></TD>
                    <TD WIDTH=85%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
                    Exploring and pursuing our options with respect to the Gold Bar Mill that we own
                    in Nevada, which include potentially refurbishing the mill for active
                    operations, selling the mill, and/or entering into a joint venture or other
                    business relationship with respect to an active gold mining company in the area
                    that may wish to utilize the mill. The region around the Gold Bar Mill has
                    recently experienced increased gold mining activity as a result of the current
                    international price for gold. We also believe that there is a milling shortage
                    in the region that may present us an opportunity to recommence the Gold Bar mill
                    operations on a contract basis as a tolling facility. We estimate that it will
                    take approximately $1,000,000 to bring the Gold Bar Mill back into operation and
                    able to accept contract milling and processing work, however, certain other or
                    additional improvements could cost significantly more. We currently lack the
                    necessary financial resources to refurbish the Gold Bar Mill. Identifying and
                    executing upon a business opportunity with respect to the Gold Bar Mill will
                    likely require us to raise a significant amount of capital. </FONT></TD>
                    </TR>
                    </TABLE>
                    <BR>

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                    <TR VALIGN=TOP>
                    <TD WIDTH=10%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
                    <TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>2. </FONT></TD>
                    <TD WIDTH=85%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
                    Continuing our on-going litigation with Queenstake USA to enforce our
                    contractual rights, obtain monies we believe are due and owing from Queenstake
                    USA, to obtain the award of damages, and recoup certain costs and expenses.
                    Additional disclosure regarding the status of this litigation is set forth in
                    Item II &#147;Legal Proceedings&#148; below. </FONT></TD>
                    </TR>
                    </TABLE>
                    <BR>

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<P ALIGN="Center"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>14 </FONT></P>

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                    <TR VALIGN=TOP>
                    <TD WIDTH=10%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
                    <TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>3. </FONT></TD>
                    <TD WIDTH=85%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
                    Finalizing the transfer of ownership of our Bolivian operations and assets.
                    Following the transfer of ownership of these operations and assets we will no
                    longer have any Bolivian operations or assets (and we expect that our
                    outstanding obligations in Bolivia will be satisfied). If the Swiss corporation
                    does not fulfill its various payment obligations to acquire these assets (as
                    described above), we intend to explore other alternatives with respect to these
                    operations and assets, although there can be no assurance that we will be able
                    to identify and execute upon any such alternatives. </FONT></TD>
                    </TR>
                    </TABLE>
                    <BR>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>In order to assist in financing our
planned operations, we will continue to seek joint venture partners, as well as merger and
acquisition candidates, or other industry participants who would enter into joint
development efforts on our Precambrian prospects or northern Nevada milling possibilities;
however, there is no assurance that any potential joint-venture or merger partners will be
interested in evaluating these prospects or in negotiating an agreement with us on
reasonable or acceptable terms. </FONT></P>

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<A NAME=A036></A>
<H1 ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Impact of inflation and
changing prices </FONT></H1>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>We have not experienced any material
impact from the effects of inflation during the last two annual operating periods or
during the first three months of 2010. </FONT></P>

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<A NAME=A037></A>
<H1 ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Off balance sheet
arrangements </FONT></H1>

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<A NAME=A038></A>
<P ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>None </FONT></P>

<A NAME="ge_10qmar10item3quan"></A>
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<H1 ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Item 3. Quantitative and

Qualitative Disclosures About Market Risk </FONT></H1>


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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>None. </FONT></P>


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<A NAME=ge_10qmar10item4t></A>
<H1 ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Item 4T. <U>Controls and
procedures</U> </FONT></H1>


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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2><B>Disclosure Controls and Procedures</B>.
 We maintain disclosure controls and procedures that are designed to ensure that
information required to be disclosed in our filings under the Exchange Act is recorded,
processed, summarized and reported within the periods specified in the rules and forms of
the SEC.  This information is accumulated and communicated to our executive officer to
allow timely decisions regarding required disclosure.  Our Chief Executive Officer
evaluated the effectiveness of our disclosure controls and procedures (as defined in Rule
13a-15(e) and Rule 15d-15(e) of the Exchange Act) as of the end of the period covered by
this report.  Based on that evaluation and the requirements of the Exchange Act, our
Chief Executive Officer concluded that, as of March 31, 2010, our disclosure controls and
procedures needed to be declared as ineffective.  The small size of our company does not
provide for the desired separation of control functions, and we do not have the required
level of documentation of our monitoring and control procedures.  The remedies for this
situation are described below. </FONT></P>

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<H1 ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Management&#146;s Report on
Internal Control over Financial Reporting </FONT></H1>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Our management
is responsible for  establishing and maintaining  adequate  internal control over
financial reporting (as defined in Rule  13a-15(f)  under the Exchange Act).  Management
 conducted an evaluation of the  effectiveness  of our internal  control over  financial
 reporting and  determined  that our internal control over  financial  reporting  was
 ineffective  as of March 31, 2010 due to material  weaknesses.  A material  weakness  in
 internal  control  over  financial  reporting  is defined  by the  Public  Company
Accounting  Oversight Board&#146;s Audit Standard No. 5 as a deficiency,  or a combination of
deficiencies,  in internal  control over financial  reporting,  such that there is a
reasonable  possibility that a material misstatement  of the company's  annual or interim
 financial  statements will not be prevented or detected on a timely  basis.  A
 significant  deficiency is a  deficiency,  or a combination  of  deficiencies,  in
internal  control over  financial  reporting that is less severe than a material
 weakness,  yet important enough to merit attention by those responsible for oversight of
our financial reporting.  Management&#146;s  assessment  identified the following material
 weaknesses in internal control over financial reporting: </FONT></P>

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<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0>
<TR VALIGN=TOP>
<TD ALIGN=RIGHT WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>o&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </FONT></TD>
<TD ALIGN=LEFT WIDTH=95%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
The
small size of our Company  limits our ability to achieve the desired level of separation
 our          internal  controls and  financial  reporting.  We do have a separate  CEO
and CFO,  however we do          not have an Audit  Committee to review and oversee the
financial  policies and  procedures of the          Company.  Until such time as we are
able to install  an audit  comittee,  we do not meet the full          requirement  for
separation.  In the interim,  we will continue to strengthen the role of our CEO
         and CFO and their review of our internal control procedures. </FONT></TD>
</TR>
</TABLE>
<BR>

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<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0>
<TR VALIGN=TOP>
<TD ALIGN=RIGHT WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>o&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </FONT></TD>
<TD ALIGN=LEFT WIDTH=95%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
We
 have  not  achieved  the  desired  level  of  documentation  of  our  internal  controls
 and          procedures.  This  documentation  will be will be  strengthened  to limit
the  possibility of any          lapse in controls occurring.  In light of the material
weaknesses  described above for the 2010 first quarter,  we performed  additional
analysis  and  other  post-closing  procedures  to  ensure  our  financial  statements
 were  prepared  in accordance  with generally  accepted  accounting  principles.
 Accordingly,  we believe that the financial statements  included in this report fairly
present,  in all material  respects,  our financial  condition, results of operations and
cash flows for the periods presented.  Management  intends to further  mitigate the risk
of the material  weaknesses  going  forward by utilizing external financial consulting
 services,  in a more effective manner, prior to the review by our principal independent
 accounting firm to ensure that all information  required to be disclosed by us in the
reports that we file or submit under the Exchange Act is recorded,  processed,
 summarized and reported accurately and within the time periods specified in the
Commission&#146;s rule and forms. </FONT></TD>
</TR>
</TABLE>
<BR>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Our management
 determined  that there were no other changes made in our internal  controls over
financial reporting  during the first quarter of 2010 that have  materially  affected,
 or are reasonably  likely to materially affect our internal control over financial
reporting.  </FONT></P>


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<A NAME=A040></A>
<H1 ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>PART II &#150; OTHER
INFORMATION </FONT></H1>

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<A NAME=ge_10qmar10-item1legal></A>
<H1 ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Item 1. Legal proceedings </FONT></H1>

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     <P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;1.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
          <I><U>GEII v. Queenstake Resources USA, Inc., Yukon-Nevada Gold Corp., et al.</U></I> </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>On June 10, 2009, we received a
notice (the &#147;Notice&#148;) from Queenstake Resources USA, Inc. (&#147;Queenstake
USA&#148;), the wholly owned subsidiary of Yukon-Nevada Gold Corp., (&#147;YNG&#148;),
advising us that Queenstake USA allegedly terminated the agreement between Golden Eagle
and Queenstake USA regarding the operation of the Jerritt Canyon Mill. The Notice provided
that Queenstake USA believed that the termination was effective immediately. </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Also on June 10, 2009, Queenstake USA
filed a complaint against us in the Fourth Judicial District Court of the State of Nevada
for Elko County (<I>Queenstake Resources USA, Inc.(Plaintiff) v. Golden Eagle
International, Inc (Defendant).; Golden Eagle International, Inc. (Counterclaimant) v.
Queenstake Resources USA, Inc. (Counter Defendant); Golden Eagle International, Inc.
(Third Party Plaintiff) v. Francois Marland, John Does 1-10, Queenstake Resources, Ltd.
and Yukon-Nevada Gold Corp. (Third-Party Defendants), </I>case no. CVC-C-09-544 Dept 2).
In the complaint, Queenstake USA alleges that Golden Eagle breached an agreement between
the parties with respect to the operation of the Jerritt Canyon Mill; breached an implied
covenant of good faith and fair dealing; and committed negligence in the operation of the
Jerritt Canyon Mill. Further, in the complaint Queenstake USA sought a declaratory
judgment that Golden Eagle is obligated to leave the Jerritt Canyon Mill site and cease
operating the mill. </FONT></P>

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<P ALIGN="Center"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>15 </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>We believed then, and continue to
believe, that Queenstake USA&#146;s allegations are false and wholly without merit. On
July 9, 2009, we filed an answer, counterclaim and third-party complaints. Our answer
specifically denies those allegations made in the complaint filed (but never served) by
Queenstake USA on June 10, 2009. Our counterclaim alleges that by a pattern of fraud,
misrepresentation, material omissions and deceptive business practices Queenstake USA
induced Golden Eagle to enter into a mill operating agreement on October 14, 2008, which
called for Golden Eagle to operate the Jerritt Canyon Mill for a 5-year period and provide
extensive services to prepare the mill for operations and bring it into environmental
compliance. The counterclaim further alleges that Queenstake USA continued between October
2008 and June 2009, through fraudulent and deceptive means, to induce Golden Eagle to
continue to provide its administrative services and engage employees, providers, suppliers
and third-party contractors, which resulted in a liability for costs incurred by Golden
Eagle, and administrative fees owed to Golden Eagle, in excess of $2.23 million. Our
allegations include that Yukon-Nevada and one of its significant investors deemed Golden
Eagle&#146;s contract &#147;too lucrative&#148; and then tortiously interfered with the
mill operating agreement by compelling Queenstake USA to breach its agreement and covenant
of good faith and fair dealing. We allege that this breach caused Golden Eagle to lose the
&#147;benefit of the bargain,&#148; or lost profit from the agreement, in excess of $40
million based on Queenstake USA&#146;s own calculations and representations to Golden
Eagle and the Nevada Division of Environmental Protection. </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>We also allege in our counterclaim
that the mill operating agreement had all of the characteristics of a lease, putting
Golden Eagle in possession of the mill property and its full use; ensuring Golden
Eagle&#146;s quiet enjoyment of the premises; requiring Golden Eagle to maintain and
repair the property; granting Golden Eagle access to the &#147;common areas&#148; on the
mill complex, etc. As a result of these lease characteristics, we sought statutory relief
under Nevada&#146;s Forcible Entry and Detainer statutes and sought an order of the court
based on those statutes putting Golden Eagle back in immediate possession of the mill
property. The court denied our motion for and Writ of Restitution putting us back in
possession of the property. We are continuing to press our other allegations in the
lawsuit. </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>We further allege in our counterclaim
and third-party complaints that Queenstake USA, Yukon-Nevada (Yukon USA&#146;s parent
corporation) and a significant Queenstake USA investor have caused us irreparable harm. As
a result, we ask the court for a declaratory judgment and a Writ of Mandamus that order
that Golden Eagle be allowed full possession of the mill property so that it may complete
its contract term of 5 years. </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>We claim in our counterclaim and
third-party complaints that Queenstake USA, Yukon-Nevada and a significant Queenstake USA
investor have committed acts of oppression, fraud or malice, express or implied, and that
Golden Eagle is entitled under Nevada law to recover punitive damages, which are
calculated as three times the amount of compensatory damages. </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Finally, we allege in our
counterclaim and third-party complaints that Queenstake Canada unconditionally guaranteed
the agreement between Golden Eagle and Queenstake USA, and furthermore, unconditionally
guaranteed the covenant of good faith and fair dealing between the parties. As a result,
Queenstake Canada was also named as a Third-Party Defendant sharing joint liability with
its wholly owned subsidiary, Queenstake USA. </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>On July 15, 2009 we recorded a notice
of mechanics/materialmen&#146;s lien and a notice of mill lien (the &#147;Liens&#148;)
against the Jerritt Canyon Mill, in the total amount of $1,307,813 in the official records
of the Elko County Recorder, State of Nevada. Notice of the liens was served on Queenstake
Resources, USA and Yukon-Nevada Gold Corp. pursuant to Nevada State law by certified or
registered mail on July 15 and 16, 2009. </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>On July 17, 2009 we filed an amended
answer, counterclaim and third-party complaints seeking to foreclose on the Liens
described above, as well as maintaining the causes of action originally set out in the
pleading filed on July 9, 2009 in the matter of <I>Queenstake Resources USA,
Inc.(Plaintiff) v. Golden Eagle International, Inc (Defendant).; Golden Eagle
International, Inc. (Counterclaimant) v. Queenstake Resources USA, Inc. (Counter
Defendant); Golden Eagle International, Inc. (Third Party Plaintiff) v. Francois Marland,
John Does 1-10, Queenstake Resources, Ltd. and Yukon-Nevada Gold Corp. (Third-Party
Defendants)</I>, CV-C-09-544, in the Fourth Judicial District Court for Nevada, In and For
the County of Elko. </FONT></P>

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     <P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;2.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
          <I><U>United Rentals Northwest, Inc. v. Golden Eagle International, Inc.,
          Queenstake Resources USA, Inc., Yukon-Nevada Gold Corp., et. al.</U></I><U></U>
          On December 31, 2009 United Rentals Northwest, Inc. filed a complaint against
          us, Yukon-Nevada Gold Corporation and Queenstake Resources USA, Inc. in the
          Fourth District Court in Elko, Nevada. In its complaint United Rentals is
          seeking payment for construction rental equipment supplied to us, Yukon-Nevada
          Gold Corporation and Queenstake Resources USA in the amount of $52,845 plus
          attorney&#146;s fees. A notice and claim of lien was recorded on the Jerritt
          Canyon mill on October 6, 2009. </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>On February 16, 2010, we filed an
answer to this complaint in the Fourth District Judicial Court in Elko, Nevada. In our
answer we allege that we had contracted with Queenstake Resources USA, Inc. and that
Queenstake/YNG are responsible for payments to United Rentals Northwest, Inc. We believe
that this matter has been settled by YNG and United Rentals, but have not formally been
informed of the outcome and the Plaintiff&#146;s complaint has not yet been dismissed. </FONT></P>

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<P ALIGN="Center"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>16 </FONT></P>


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     <P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;3.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
          <I><U>Bright v. Golden Eagle International, Inc., Rocky Mountain Hospital and
          Medical Service, Anthem Blue Cross and Blue Shield, et. al.</U></I><U></U> On
          February 26, 2010, we were served with a complaint in the case of <I>Bright v.
          Golden Eagle, et al., </I>filed in the Fourth District Court of Elko County that
          alleges that we breached our employment agreement to Mr. Bright, who was our
          employee until June 10, 2010, by not maintaining his health insurance through
          the period in which his wife gave birth to the Bright&#146;s child in the Rocky
          Mountain Hospital. The complaint alleges further that all of the defendants
          breached their various contractual obligations and duties to the Brights, were
          negligent in the failure to pay the Brights&#146; medical bills associated with
          the delivery of their child, and negligently and intentionally inflicted
          emotional distress on the Brights. Anthem Blue Cross and Blue Shield has sought
          to have this matter removed to the Federal District Court in Reno, Nevada. The
          case is ongoing and we have, and expect to continue to, defend this matter. </FONT></P>

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     <P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;4.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
          <I><U>Old Dominion Freight Line, Inc. v. Golden Eagle International,
          Inc.</U></I><U></U> On April 15, 2010, Old Dominion Freight Line, Inc.
          (&#147;Old Dominion&#148;) filed a complaint in the Third District Court of Utah
          against us to collect $3,327.89 for freight charges on deliveries that Old
          Dominion made to the Jerritt Canyon mill north of Elko, Nevada. We filed an
          answer to Old Dominion&#146;s complaint alleging mistake on Old Dominion&#146;s
          part as to various specific allegations that it made in its complaint, and
          further asserting affirmative defenses that the matter should have been brought
          in Elko County, Nevada, were all of the acts complained of occurred and the
          location of all of the witnesses to the event. Moreover, we alleged that Old
          Dominion failed to join two indispensable parties, Queenstake Resources USA,
          Inc. and Yukon-Nevada Gold Corp., the real parties in interest and the ultimate
          beneficiaries of any consideration or service given by Old Dominion. The case is
          ongoing and we have, and expect to continue to, defend this matter. </FONT></P>





<A NAME="ge_10qmar10-item2un"></A>
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<H1 ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Item 2.  <U>Unregistered
sales of equity securities and use of proceeds.</U> </FONT></H1>

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<A NAME=A042></A>
<P ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>1) Convertible Debentures </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>During the three month period ending
February 3, 2010 we entered into a Convertible Debenture Agreement and issued a
Convertible Debentures totaling $10,000 to Richard Newberg. This debenture carries an
interest rate of 10% per annum payable at maturity and matures two years from the date of
the debenture. The debenture, and its accrued interest, is convertible into restricted
shares of our common stock at any time by the holder of the debenture. If converted into
restricted common stock, the conversion shall be at $.225 per share. </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>In the sale described
above we relied upon Sections 4(2) and 4(6) of the Securities Act for the offer and sale.
We believed that Sections 4(2) and 4(6) were available because the offer and sale did
not involve a public offering, there was no general solicitation or general advertising
involved in the offer or sale and the purchaser was an accredited investor. We will place
restrictive legends on the certificates representing these securities, if converted,
stating that the securities are not registered under the Securities Act and are subject to
restrictions on their transferability and resale. </FONT></P>

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     <P><FONT FACE="Times New Roman, Times, Serif" SIZE=2><I>2)</I>&nbsp;&nbsp;&nbsp;&nbsp;
          <I>Subsequent Events.</I> </FONT></P>

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     <P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;a)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
          Unregistered sales of equity securities and use of proceeds upon effective
          date of reverse split of common stock. </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>On May 13, 2010, subsequent to the
end of the period being reported, the Financial Industry Regulatory Authority
(&#147;FINRA&#148;) took the necessary actions, and made the required notifications, to
cause the reverse stock split discussed below in Part II, Item 5(3), to be reflected in
the trading markets. Upon the reverse split being effected, every 500 shares of our issued
and outstanding common stock was automatically combined into one issued and outstanding
share without any change in the par value of such shares.&nbsp;On May 13, 2010, five of
our debt holders elected to convert their promissory notes into our restricted common
stock, and on May 19, 2010, one of our Series D preferred shareholders converted to our
common stock. The details of these conversions are as follows: </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>On May 13, 2010, we issued 647,200
shares of our restricted common stock to Miguel Simon Guardia in exchange for a promissory
note dated April 15, 2008, plus accrued interest, totaling $64,720. The conversion was
executed at $.10 per share.</FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>On May 13, 2010, we issued 878,822
shares of our restricted common stock to Harlan McSpadden DeLozier in exchange for a
promissory note first dated February 6, 2007, plus accrued interest, totaling $87,822. The
conversion was executed at $.10 per share. </FONT></P>

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<P ALIGN="Center"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>17 </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>On May 13, 2010, we issued 574,230
shares of our restricted common stock to Tracy A. Madsen in exchange for a promissory note
dated February 6, 2007, plus accrued interest, totaling $57,423. The conversion was
executed at $.10 per share. </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>On May 13, 2010, we issued 151,970
shares of our restricted common stock to Sabrina Martinez in exchange for a promissory
note dated September 20, 2009, plus accrued interest, totaling $15,197. The conversion was
executed at $.10 per share. </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>On May 13, 2010, we issued 270,044
shares of our restricted common stock to VHB International, Inc. in exchange for a
promissory note dated April 14, 2008, plus accrued interest, totaling $27,004. The
conversion was executed at $.10 per share. </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>On May 19, 2010, we issued 75,000
shares of our restricted common stock to Meridian International Holdings, S.A. in exchange
for 15,000 shares of our Series D preferred stock with a post-reverse split exchange rate
of 5 common shares for every Series D preferred share. The conversion was executed at $.20
per shares pursuant to the face conversion rate of the Series D preferred share. </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>In every issuance or sale
described above we relied upon Sections 4(2) and 4(6) of the Securities Act for the offer
and sale. We believed that Sections 4(2) and 4(6) were available because the offers and
sales did not involve a public offering, there was no general solicitation or general
advertising involved in the offers or sales and the purchasers were accredited investors.
We placed restrictive legends on the certificates representing these securities, if
converted, stating that the securities are not registered under the Securities Act and are
subject to restrictions on their transferability and resale.  </FONT></P>


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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;b) &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Convertible
Debenture Subsequent to the End of the Period. </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>On May 13, 2010 we rolled over a
Convertible Debenture Agreement that had come due and payable, and issued a new
Convertible Debentures that included the principal and interest from the initial
debenture totaling $56,484.07 to the Dewey L. Williams Profit Sharing Plan and Trust.
This debenture carries an interest rate of 10% per annum payable at maturity and matures
one year from the date of the debenture. The debenture, and its accrued interest, is
convertible into restricted shares of our common stock at any time by the holder of the
debenture. If converted into restricted common stock, the conversion shall be at one half
of the close of our share price on May 10, 2010, or $.10 per share.  </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>In the sale described above we
relied upon Sections 4(2) and 4(6) of the Securities Act for the offer and sale. We
believed that Sections 4(2) and 4(6) were available because the offer and sale did not
involve a public offering, there was no general solicitation or general advertising
involved in the offer or sale and the purchaser was an accredited investor. We will place
restrictive legends on the certificates representing these securities, if converted,
stating that the securities are not registered under the Securities Act and are subject
to restrictions on their transferability and resale.  </FONT></P>


<A NAME="ge_10qmar10-item3def"></A>
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<H1 ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Item 3. <U>Defaults Upon
Senior Securities</U> </FONT></H1>

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<A NAME=A043></A>
<P ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>None </FONT></P>


<A NAME="ge_10qmar10item4"></A>
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<H1 ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Item 4.  <U>Submission of
Matters to a Vote of Security Holders</U> </FONT></H1>

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<A NAME=A044></A>
<P ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>None </FONT></P>

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<A NAME=ge_10qmar10-item5other></A>
<H1 ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Item 5. <U>Other Information</U> </FONT></H1>

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<A NAME=A046></A>
<P ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>(1) Revised 2009 Equity
Incentive Plan </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>On October 7, 2009 our Board of
Directors approved the Golden Eagle International, Inc. 2009 Revised Equity Incentive Plan (the
&#147;Plan&#148;). The Plan is intended to provide incentives to officers, employees and
other persons, including consultants and advisers, who contribute to our success by
offering them the opportunity to acquire an ownership interest in it or increase their
ownership interest. The Board of Directors believes that this also will help to align the
interests of our management and employees with the interests of its shareholders. </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>The Plan provides for a maximum of
750,000,000 shares of common stock to be reserved to be issued upon the exercise of
options (&#147;Options&#148;) or the grant of restricted stock awards
(&#147;Bonuses&#148;). Adoption by the Board of Directors is contingent upon obtaining
shareholder approval by October 7, 2010. The Plan includes two types of Options. Options
intended to qualify as incentive stock options under Section 422 of the Internal Revenue
Code of 1986, as amended (the &#147;Code&#148;) are referred to as &#147;Incentive
Options.&#148; Options, which are not intended to qualify as Incentive Options are
referred to as &#147;Non-Qualified Options.&#148; Bonuses, which may also be granted under
the Plan, are the outright issuance of shares of Common Stock. </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Shareholder approval was received on March 23, 2010. </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>The Plan is administered by the Board
of Directors since we have not appointed a Compensation Committee. In addition to
determining who will be granted Options or Bonuses, the Committee (or the Board in the
absence of the Committee) has the authority and discretion to determine when Options and
Bonuses will be granted and the number of Options and Bonuses to be granted. The Board
(or, if appointed, the Committee) also may determine a vesting and/or forfeiture schedule
for Bonuses and/or Options granted, the time or times when each Option becomes
exercisable, the duration of the exercise period for Options and the form or forms of the
agreements, certificates or other instruments evidencing grants made under the Plan. The
Board (or Committee) may determine the purchase price of the shares of common stock
covered by each Option and determine the Fair Market Value per share. The Board (or
Committee) also may impose additional conditions or restrictions not inconsistent with the
provisions of the Plan. The Board (or Committee) may adopt, amend and rescind such rules
and regulations as in its opinion may be advisable for the administration of the Plan. If
the number of shares reserved under the Plan is increased, shareholder approval must be
obtained on the amendment to increase the shares reserved. </FONT></P>


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<P ALIGN="Center"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>18 </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>The Board (or Committee) also has the
power to interpret the Plan and the provisions in the instruments evidencing grants made
under it, and is empowered to make all other determinations deemed necessary or advisable
for the administration of it. </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>The grant of Options or Bonuses under
the Plan does not confer any rights with respect to continuation of employment, and does
not interfere with the right of the recipient or the Company to terminate the
recipient&#146;s employment, although a specific grant of Options or Bonuses may provide
that termination of employment or cessation of service as an employee, officer, or
consultant may result in forfeiture or cancellation of all or a portion of the Bonuses or
Options. </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In
the event a change, such as a stock split, is made in our capitalization which results in
an exchange or other adjustment of each share of Common Stock for or into a greater or
lesser number of shares, appropriate adjustments will be made to unvested bonuses and in
the exercise price and in the number of shares subject to each outstanding Option. The
Board (or, if appointed, the Committee) also may make provisions for adjusting the number
of bonuses or underlying outstanding Options in the event we effect one or more
reorganizations, recapitalizations, rights offerings, or other increases or reductions of
shares of our outstanding Common Stock. Options and Bonuses may provide that in the event
of the dissolution or liquidation of the Company, a corporate separation or division or
the merger or consolidation of the Company, the holder may exercise the Option on such
terms as it may have been exercised immediately prior to such dissolution, corporate
separation or division or merger or consolidation; or in the alternative, the Board (or,
if appointed, the Committee) may provide that each Option granted under the Plan shall
terminate as of a date fixed by the Committee. </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
exercise price of any Option granted under the Plan must be no less than 100% of the
&#147;fair market value&#148; of our Common Stock on the date of grant. Any Incentive
Stock Option granted under the Plan to a person owning more than 10% of the total combined
voting power of the Common Stock shall be at a price of no less than 110% of the Fair
Market Value per share on the date of grant. </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
exercise price of an Option may be paid in cash, in shares of our Common Stock or other
property having a fair market value equal to the exercise price of the Option, or in a
combination of cash, shares and property. Unless otherwise stated by Board (or Committee)
resolution, the Options can also be exercised pursuant to &#147;net exercise&#148;
procedures which permit the fair market value of the Options (equal to the value of the
underlying shares less the exercise price) to be used to pay the exercise price. The Board
(or Committee) shall determine whether or not property other than cash or Common Stock or
a net exercise may be used to purchase the shares underlying an Option and shall determine
the value of the property received. The Plan provides that, unless otherwise provided by
the Board (or the Committee), Options granted under the Plan survive a Change of Control
(as that term is defined in the Plan) and for 18 months following a Change of Control if
the holder is terminated as an employee of the Company without cause following a Change of
Control </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;At
the time of adoption of the Plan, the Board also granted certain options to a number of
officers and key employees. The Options were granted subject to shareholder approval, and
if the shareholders do not approve the Plan by October 7, 2010, the options granted to the
officers and key employees will be lost. The shareholers approved the plan on March 23, 2010.  The Options granted have an exercise period of three years from the date
of grant (that is, through October 7, 2012) at an exercise price of $0.55 per share (the
average of the closing price for the 10 trading days prior to October 7, 2009, plus an
additional 25% above that average price). The Board considered several factors in granting
the options to our executives and key employees such as length of service; sacrifices made
during the period of service, such as foregoing salary, personal operating loans made to
us to allow us to continue in operation, voluntary reductions in salary, forgiveness of
significant salary arrearages for the benefit of the Company, etc.; the past and ongoing
contribution made to maintaining the Company in operation despite significant challenges,
and to its recent successes in opening potential new avenues for progress. The following
is a list of the options granted executive officers under the Plan: </FONT></P>




<TABLE CELLPADDING="0" CELLSPACING="0" BORDER="1" WIDTH="600" ALIGN="Center">
<TR VALIGN=Bottom>
     <TH><FONT FACE="Times New Roman" SIZE=2></FONT></TH>
     <TH><FONT FACE="Times New Roman" SIZE=2></FONT></TH>
     <TH><FONT FACE="Times New Roman" SIZE=2></FONT></TH></TR>
<TR VALIGN=Bottom>
     <TD WIDTH=80% ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>Terry C. Turner, President, Chief Operating Officer and <BR>Chairman of the Board of Directors</FONT></TD>
     <TD WIDTH=20% ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=2>200,000,000&nbsp;</FONT></TD>
     </TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>Harlan (Mac) DeLozier, Vice President for Bolivian Operations and Director</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=2>100,000.000</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>Tracy A. Madsen, Vice President for U.S. Operations, Chief Financial Officer, <BR>Corporate Secretary and Treasurer</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=2>75,000,000&nbsp;</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2></FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>Alvaro Riveros, Director</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=2>10,000,000&nbsp;</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>Blane W. Wilson, Chief Operating Officer</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=2>80,000,000&nbsp;</FONT></TD></TR>
</TABLE>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Options to acquire 36,500,000 shares
were granted on the same terms to persons who are neither executive officers nor directors
of the Company. The Plan will be presented in more detail in a Proxy Statement when the
shareholders&#146; consideration and approval for the Plan is sought at a future date. </FONT></P>


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<P ALIGN="Center"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>19 </FONT></P>


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<A NAME=A047></A>
<H1 ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>2.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Executive
Employment Agreements. </FONT></H1>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;On
October 7, 2009, we entered into employment agreements with (a) Terry Turner, our Chief
Executive Officer, President and Chairman (the &#147;Turner Agreement&#148;); and (b)
Tracy Madsen, our Chief Financial Officer and Vice President (the &#147;Madsen
Agreement&#148;). Both of these agreements were contingent on receiving shareholder
approval. On March 23, 2010 our shareholders approved the terms of both the Turner
Agreement and the Madsen Agreement, and each became effective and binding on that date. </FONT></P>

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<A NAME=A048></A>
<H1 ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>3. Reverse Stock Split </FONT></H1>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;On
March 23, 2010 our shareholders approved an amendment to our Articles of Incorporation to
effect a 1-for-500 reverse stock split. Since that date we have taken steps to effect the
reverse stock split, including filing an amendment to our Articles of Incorporation (which
amendment became effective under Colorado law on April 28, 2010) and notifying the
Financial Industry Regulatory Authority (&#147;FINRA&#148;) of the reverse split On May
13, 2010, subsequent to the end of the period being reported, FINRA took the necessary
actions, and made the required notifications, to cause the reverse stock split to be
reflected in the trading markets. Upon the reverse split being effected every 500 shares
of our issued and outstanding common stock was automatically combined into one issued and
outstanding share without any change in the par value of such shares.&nbsp; No fractional
shares are being issued in connection with the reverse stock split.&nbsp; Shareholders who
were entitled to a fractional share are entitled to receive a whole share. The reverse
split affected all of the holders of our common stock uniformly and did not affect any
shareholder&#146;s percentage of ownership interest, except to the extent that the reverse
split resulted in any holder being granted a whole share for any fractional share that
resulted from the reverse split. The number of common shares into which each of our
outstanding series of Preferred Stock may be convertible into, as well as the shares of
common stock underlying options, warrants and convertible debentures was proportionately
reduced and the exercise prices of any warrants or options, and the conversion prices of
any convertible debentures, was proportionately increased by the reverse stock

split.&nbsp; </FONT></P>


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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Following
the reverse stock split, there will remain 2,000,000,000 shares of common stock
authorized, and 10,000,000 shares of preferred stock authorized. The preferred stock
outstanding will remain outstanding, but the number of shares of common stock into which
the various series of preferred stock outstanding are convertible were proportionally
adjusted. The convertible debentures, convertible notes, stock payable, and stock options
will also remain outstanding, but the number of shares of common stock issuable upon
conversion or exercise will also be proportionally reduced. The following table only sets
forth approximate numbers because the rounding up of fractional shares will occur on a
shareholder-by-shareholder basis. </FONT></P>




<TABLE CELLPADDING="0" CELLSPACING="0" BORDER="1" WIDTH="600" ALIGN="Center">
<TR VALIGN=Bottom>
     <TH><FONT FACE="Times New Roman" SIZE=2></FONT></TH>
     <TH><FONT FACE="Times New Roman" SIZE=2></FONT></TH>
     <TH><FONT FACE="Times New Roman" SIZE=2></FONT></TH></TR>
<TR VALIGN=Bottom>
     <TD WIDTH=50% ALIGN=LEFT STYLE="border-bottom:solid 1px #000000;"><FONT FACE="Times New Roman" SIZE=2>Fully diluted shares
<BR>(as if the 1-for 500 reverse stock split were in effect)</FONT></TD>
     <TD WIDTH=25% ALIGN=RIGHT STYLE="border-bottom:solid 1px #000000;"><FONT FACE="Times New Roman" SIZE=2>For the three months ended <BR>March 31, 2010</FONT></TD>
     <TD WIDTH=25% ALIGN=RIGHT STYLE="border-bottom:solid 1px #000000;"><FONT FACE="Times New Roman" SIZE=2>For the year ended <BR>December 31, 2009</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>Basic shares outstanding</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=2>3,950,102&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=2>3,950,102&nbsp;</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>Series B preferred conversion</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=2>40,000&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=2>40,000&nbsp;</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>Series C preferred conversion</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=2>975,493&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=2>975,493&nbsp;</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>Series D preferred conversion</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=2>3,696,095&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=2>3,696,095&nbsp;</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>Convertible debentures &amp; convertible notes payable</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=2>298,824&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=2>298,824&nbsp;</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>Stock payable</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=2>106,250&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=2>106,250&nbsp;</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT STYLE="border-bottom:solid 1px #000000;"><FONT FACE="Times New Roman" SIZE=2>Stock options approved</FONT></TD>
     <TD ALIGN=RIGHT STYLE="border-bottom:solid 1px #000000;"><FONT FACE="Times New Roman" SIZE=2>240,531&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT STYLE="border-bottom:solid 1px #000000;"><FONT FACE="Times New Roman" SIZE=2>203,829&nbsp;</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>Total</FONT></TD>
     <TD ALIGN=RIGHT STYLE="border-bottom:solid 2px #000000;"><FONT FACE="Times New Roman" SIZE=2>9,307,295*</FONT></TD>
     <TD ALIGN=RIGHT STYLE="border-bottom:solid 2px #000000;"><FONT FACE="Times New Roman" SIZE=2>9,270,593*</FONT></TD></TR>
</TABLE>

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<TR VALIGN=TOP>
<TD WIDTH=5%>&nbsp;</TD>
<TD WIDTH=95%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
*
       Approximate, due to likely rounding errors. </FONT></TD>
</TR>
</TABLE>
<BR>

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<A NAME=A049></A>
<H1 ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>4. Transfer of Control
of Bolivian Subsidiary </FONT></H1>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Effective
March 10, 2010, we transferred control of our Bolivian operations to an unaffiliated Swiss
corporation by granting that Swiss corporation a power of attorney. The Swiss corporation
has paid $112,000 to the Bolivian authorities as claims fees to maintain our concessions
in eastern Bolivia. The Swiss corporation has also paid us $50,000, and has further paid
approximately $53,000 (out of its obligation of $100,000) to satisfy certain of our
obligations in Bolivia. </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Upon
transfer of ownership of the properties to the Swiss corporation which is expected to
occur in the second quarter of 2010 (if it should occur, of which there can be no
assurance), the Swiss corporation is required to pay an additional $100,000 of our
obligations to Bolivian creditors (for a total of $200,000); to assume certain Golden
Eagle obligations in Bolivia in an estimated amount of $170,000; and to pay Golden Eagle a
3% net smelter return on all minerals produced from the properties of up to $3 million.
The net smelter return will be on a quarterly basis if and when mineral production is
achieved from the mining concessions owned by the Bolivian subsidiary. </FONT></P>

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<P ALIGN="Center"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>20 </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We
cannot offer any assurance that the Swiss corporation will fulfill its remaining payment
obligations to us with respect to our Bolivian assets and operations. If we are unable to
complete the sale of these assets and operations we will continue to hold them and explore
other alternatives with respect them. However, if we are unable to complete the sale of
these assets during 2010 we do not expect to engage in active exploration or mining
operations in Bolivia and it is likely that the concessions will expire in March 2011 as
we do not intend to pay the 2011 claims fees. </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Although
our Bolivian assets and operations were once the primary focus of the Company, starting in
late 2008 we have focused our operations primarily within the United States and, as noted
above, in March 2009 reduced significantly our land holdings in Bolivia. We considered a
number of factors when evaluating our options with respect to our Bolivian operations,
including: </FONT></P>


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<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0>
<TR VALIGN=TOP>
<TD ALIGN=RIGHT WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>o&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;  </FONT></TD>
<TD ALIGN=LEFT WIDTH=95%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
The
re-election of Bolivia's president who has been inimical to U.S. investment in Bolivia
and the current and continuing                   negative political and social
environment relative to U.S. companies; </FONT></TD>
</TR>
</TABLE>
<BR>

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<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0>
<TR VALIGN=TOP>
<TD ALIGN=RIGHT WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>o&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;  </FONT></TD>
<TD ALIGN=LEFT WIDTH=95%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
The
Bolivian tax structure for mining companies that Golden Eagle believes would serve to
limit the ability of its Bolivian                   operations to become profitable; </FONT></TD>
</TR>
</TABLE>
<BR>

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<TR VALIGN=TOP>
<TD ALIGN=RIGHT WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>o&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;  </FONT></TD>
<TD ALIGN=LEFT WIDTH=95%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
The
current Bolivian administration's apparent commitment to enact a new mining law that
creates a degree of uncertainty in                   the mining sector; </FONT></TD>
</TR>
</TABLE>
<BR>

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<TR VALIGN=TOP>
<TD ALIGN=RIGHT WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>o&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;  </FONT></TD>
<TD ALIGN=LEFT WIDTH=95%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
Our
continuing difficulties in meeting our obligations in Bolivia and in the United States
due to our significant working                   capital shortages and operating losses,
including the likely loss of our mining claims due to our inability to pay
                  the fees that, for example, were paid on March 1, 2010 by the
unaffiliated third-party Swiss corporation mentioned                   above; and </FONT></TD>
</TR>
</TABLE>
<BR>

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<TR VALIGN=TOP>
<TD ALIGN=RIGHT WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>o&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;  </FONT></TD>
<TD ALIGN=LEFT WIDTH=95%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
Golden
Eagle's need to focus its limited resources to more fully realize the potential of our
4,000 tpd Gold Bar gold mill,                   to seek out other mining and milling
opportunities that may enhance our shareholders' value, and to continue seeking
                  recovery of just compensation from our litigation with Yukon-Nevada
Gold Corp. regarding its breach of our operating                   contract for the
Jerritt Canyon gold mill north of Elko, Nevada. </FONT></TD>
</TR>
</TABLE>
<BR>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Based
in large part on the above factors, the Company believed it was in the Company&#146;s best
interests to sell its Bolivian assets operations and continue focusing the Company&#146;s
efforts and resources on its operations and assets within the United States. As a result,
effective March 10, 2010 we transferred control of all of our Bolivian assets and
operations, and hopes to transfer ownership of those assets during the second quarter of
2010 (of which there can be no assurance). </FONT></P>

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     <P><FONT FACE="Times New Roman, Times, Serif" SIZE=2><B>5.</B>&nbsp;&nbsp;&nbsp;&nbsp;
          <B><U>Blane Wilson appointed Executive Mining Advisor for Klondex Mines
          Ltd</U></B><U>.</U> </FONT></P>

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<TR VALIGN=TOP>
<TD WIDTH=10%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH=90%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In
February 2010 our Chief Operating Officer Blane Wilson was appointed as Executive Mining
Advisor, Nevada Operations, by Klondex Mines Ltd. (&#147;KDX&#148;). In that capacity Mr.
Wilson will oversee KDX&#146;s underground mining program at its Fire Creek high-grade
gold deposit. However, Mr. Wilson will continue to serve as Golden Eagle&#146;s COO,
pursuant to his existing employment agreement with his primary focus on development
efforts for the Company&#146;s Gold Bar Mill located in Nevada. </FONT>
</TD>
</TR>
</TABLE>
<BR>

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<A NAME=ge_10qmar10-item6exh></A>
<H1 ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Item 6. <U>Exhibits</U>: </FONT></H1>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Exhibits required by Item 601 of
Regulation S-K: </FONT></P>

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<TR VALIGN="BOTTOM">
     <TH><FONT FACE="Times New Roman, Times, Serif" SIZE="2"></FONT></TH>
     <TH><FONT FACE="Times New Roman, Times, Serif" SIZE="2"></FONT></TH>
     <TH><FONT FACE="Times New Roman, Times, Serif" SIZE="2"></FONT></TH></TR>

<TR VALIGN="TOP">
     <TD><FONT FACE="Times New Roman, Times, Serif" SIZE="2">31.</FONT></TD>
     <TD><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
     <TD><FONT FACE="Times New Roman, Times, Serif" SIZE="2">Certifications pursuant to Rule 13a-14(a)</FONT></TD></TR>
<TR VALIGN="TOP">
     <TD><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD></TR>
<TR VALIGN="TOP">
     <TD><FONT FACE="Times New Roman, Times, Serif" SIZE="2"></FONT></TD>
     <TD><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
     <TD><FONT FACE="Times New Roman, Times, Serif" SIZE="2">31.1   <A HREF="#ge_10qmar10-exh312">Certification of the Chief Executive Officer</A></FONT></TD></TR>

<TR VALIGN="TOP">
     <TD><FONT FACE="Times New Roman, Times, Serif" SIZE="2"></FONT></TD>
     <TD><FONT FACE="Times New Roman, Times, Serif" SIZE="2"></FONT></TD>
     <TD><FONT FACE="Times New Roman, Times, Serif" SIZE="2"></FONT></TD></TR>
<TR VALIGN="TOP">
     <TD><FONT FACE="Times New Roman, Times, Serif" SIZE="2"></FONT></TD>
     <TD><FONT FACE="Times New Roman, Times, Serif" SIZE="2"></FONT></TD>
     <TD><FONT FACE="Times New Roman, Times, Serif" SIZE="2">31.2     <A HREF="#ge_10qmar10-exh312">Certification of the Chief Financial Officer</A></FONT></TD></TR>
<TR VALIGN="TOP">
     <TD><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD></TR>
<TR VALIGN="TOP">
     <TD><FONT FACE="Times New Roman, Times, Serif" SIZE="2">32. </FONT></TD>
     <TD><FONT FACE="Times New Roman, Times, Serif" SIZE="2"></FONT></TD>
     <TD><FONT FACE="Times New Roman, Times, Serif" SIZE="2">Certifications pursuant to 18 U.S.C.ss.1350.</FONT></TD></TR>
<TR VALIGN="TOP">
     <TD><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD></TR>
<TR VALIGN="TOP">
     <TD><FONT FACE="Times New Roman, Times, Serif" SIZE="2"></FONT></TD>
     <TD><FONT FACE="Times New Roman, Times, Serif" SIZE="2"></FONT></TD>
     <TD><FONT FACE="Times New Roman, Times, Serif" SIZE="2"> 32.1 <A HREF="#ge_10qmar10-exh321">Certification of the Chief Executive Officer</A>    </FONT></TD></TR>
<TR VALIGN="TOP">
     <TD><FONT FACE="Times New Roman, Times, Serif" SIZE="2"></FONT></TD>
     <TD><FONT FACE="Times New Roman, Times, Serif" SIZE="2"></FONT></TD>
     <TD><FONT FACE="Times New Roman, Times, Serif" SIZE="2">32.2 <A HREF="#ge_10qmar10-exh322">Certification of the Chief Financial Officer</A>     </FONT></TD></TR>
</TABLE>
<BR>
<BR><BR><BR><BR><BR>
<BR><BR><BR>

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<P ALIGN="Center"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>21 </FONT></P>



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<A NAME=ge_10qmar10-sigs></A>
<H1 ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2><U>SIGNATURES </U></FONT></H1>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Pursuant to the requirements of
Section 13 or 15(d) of the Securities Exchange Act of 1934, Golden Eagle has duly caused
this report to be signed on its behalf by the undersigned, thereunto duly authorized. </FONT></P>







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<TD WIDTH=40%><FONT FACE="Times New Roman, Times, Serif" SIZE=2></FONT></TD>
<TD WIDTH=10%><FONT FACE="Times New Roman, Times, Serif" SIZE=2></FONT></TD>
<TD WIDTH=50%><FONT FACE="Times New Roman, Times, Serif" SIZE=2><B>GOLDEN EAGLE INTERNATIONAL,INC. <BR>(Golden Eagle)</B><BR><BR>
<BR>By: /s/ Terry C. Turner<BR>&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;<BR>
Terry C. Turner<BR>President and Principal Executive Officer<BR><BR>Date: May 24, 2010 </FONT></TD>
</TR>
</TABLE>
<BR>


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ge_10qsmar10-exh312

<P ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>EXHIBIT 31.1 <BR>CERTIFICATION PURSUANT
TO <BR>
SECURITIES
EXCHANGE ACT OF 1934: RULES 13a-14, 13a-15, 15d-14, and 15d-15 <BR>SECTION 302 OF THE
SARBANES-OXLEY ACT OF 2002</FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>I, Terry C. Turner, certify that: </FONT></P>

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          <TR VALIGN=TOP>
          <TD ALIGN=RIGHT WIDTH=15%><FONT FACE="Times New Roman, Times, Serif" SIZE=2></FONT></TD>
          <TD ALIGN=LEFT WIDTH=85%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>

           1.  I have reviewed this quarterly report on Form 10-Q for the period
ended March 31, 2010 of Golden Eagle International, Inc. <BR>2. Based on my knowledge, this
          report does not contain any untrue statement of a material fact or omit to state
          a material fact necessary to make the statements made, in light of the
          circumstances under which such statements were made, not misleading with respect
          to the period covered by this report; <BR>3. Based on my knowledge, the financial
          statements, and other financial information included in this report, fairly
          present in all material respects the financial condition, results of operations
          and cash flows of the registrant as of, and for, the periods presented in this
          report;<BR>4. The registrant&#146;s the other certifying officer(s) and I are
          responsible for establishing and maintaining disclosure controls and procedures
          (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control
          over financial reporting (as defined in Exchange Act Rules 13a-15(f) and
          15d-15(f)) for the registrant and have: <BR>a)
           designed such disclosure controls and procedures, or caused such disclosure
          controls and procedures to be designed under our supervision, to ensure that
          material information relating to the registrant, including its consolidated
          subsidiaries, is made known to us by others within those entities, particularly
          during the period in which this report is being prepared; <BR>b) designed such
          internal control over financial reporting, or caused such internal control over
          financial reporting to be designed under our supervision, to provide reasonable
          assurance regarding the reliability of financial reporting and the preparation
          of financial statements for external purposes in accordance with generally
          accepted accounting principles;<BR>c) evaluated the effectiveness of the
          registrant&#146;s disclosure controls and procedures and presented in this
          report our conclusions about the effectiveness of the disclosure controls and
          procedures, as of the end of the period covered by this report based on such
          evaluation;<BR> d) disclosed in this report any change in the registrant&#146;s
          internal control over financial reporting that occurred during the
          registrant&#146;s most recent fiscal quarter that has materially affected, or is
          reasonably likely to materially affect, the registrant&#146;s internal control
          over financial reporting; and <BR>5. The registrant&#146;s the other certifying
          officer(s) and I have disclosed, based on our most recent evaluation of internal
          control over financial reporting, to the registrant&#146;s auditors and the
          audit committee of registrant&#146;s board of directors (or persons performing
          the equivalent functions): <BR>a) all significant deficiencies and material
          weaknesses in the design or operation of internal control over financial
          reporting which are reasonably likely to adversely affect the registrant&#146;s
          ability to record, process, summarize and report financial information; and <BR>b)
          any fraud, whether or not material, that involves management or other employees
          who have a significant role in the registrant&#146;s internal control over
          financial reporting. </FONT></TD>
          </TR>
          </TABLE>
          <BR>


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<TR VALIGN=TOP>
<TD WIDTH=40%><FONT FACE="Times New Roman, Times, Serif" SIZE=2></FONT></TD>
<TD WIDTH=10%><FONT FACE="Times New Roman, Times, Serif" SIZE=2></FONT></TD>
<TD WIDTH=50%><FONT FACE="Times New Roman, Times, Serif" SIZE=2><B></B><BR><BR>
<BR>By: /s/ Terry C. Turner<BR>&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;<BR>
Terry C. Turner<BR>President, <BR>Principal Executive Officer<BR><BR>May 24, 2010</FONT></TD>
</TR>
</TABLE>
<BR>





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<A NAME=ge_10qsmar10-exh312></A>


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<A NAME=ge_10qsept3009-exh312r></A>
<P ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>EXHIBIT 31.2 </FONT></P>

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<P ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>CERTIFICATION PURSUANT
TO <BR>
SECURITIES
EXCHANGE ACT OF 1934: RULES 13a-14, 13a-15, 15d-14, and 15d-15 <BR>SECTION 302 OF THE
SARBANES-OXLEY ACT OF 2002</FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>I, Tracy A. Madsen, certify that: </FONT></P>

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          <TR VALIGN=TOP>
          <TD ALIGN=RIGHT WIDTH=15%><FONT FACE="Times New Roman, Times, Serif" SIZE=2> </FONT></TD>
          <TD ALIGN=LEFT WIDTH=85%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>

           1.  I have reviewed this quarterly report on Form 10-Q for the period ended March 31, 2010 of Golden Eagle International, Inc. <BR>2. Based on my knowledge, this
          report does not contain any untrue statement of a material fact or omit to state
          a material fact necessary to make the statements made, in light of the
          circumstances under which such statements were made, not misleading with respect
          to the period covered by this report; <BR>3. Based on my knowledge, the financial
          statements, and other financial information included in this report, fairly
          present in all material respects the financial condition, results of operations
          and cash flows of the registrant as of, and for, the periods presented in this
          report; <BR>4. The registrant&#146;s the other certifying officer(s) and I are
          responsible for establishing and maintaining disclosure controls and procedures
          (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control
          over financial reporting (as defined in Exchange Act Rules 13a-15(f) and
          15d-15(f)) for the registrant and have: <BR>a)

           designed such disclosure controls and procedures, or caused such disclosure
          controls and procedures to be designed under our supervision, to ensure that
          material information relating to the registrant, including its consolidated
          subsidiaries, is made known to us by others within those entities, particularly
          during the period in which this report is being prepared; <BR>b) designed such
          internal control over financial reporting, or caused such internal control over
          financial reporting to be designed under our supervision, to provide reasonable
          assurance regarding the reliability of financial reporting and the preparation
          of financial statements for external purposes in accordance with generally
          accepted accounting principles;<BR> c) evaluated the effectiveness of the
          registrant&#146;s disclosure controls and procedures and presented in this
          report our conclusions about the effectiveness of the disclosure controls and
          procedures, as of the end of the period covered by this report based on such
          evaluation; <BR>d) disclosed in this report any change in the registrant&#146;s
          internal control over financial reporting that occurred during the
          registrant&#146;s most recent fiscal quarter that has materially affected, or is
          reasonably likely to materially affect, the registrant&#146;s internal control
          over financial reporting; and <BR>5. The registrant&#146;s the other certifying
          officer(s) and I have disclosed, based on our most recent evaluation of internal
          control over financial reporting, to the registrant&#146;s auditors and the
          audit committee of registrant&#146;s board of directors (or persons performing
          the equivalent functions):<BR> a) all significant deficiencies and material
          weaknesses in the design or operation of internal control over financial
          reporting which are reasonably likely to adversely affect the registrant&#146;s
          ability to record, process, summarize and report financial information; and <BR>b)
          any fraud, whether or not material, that involves management or other employees
          who have a significant role in the registrant&#146;s internal control over
          financial reporting. </FONT></TD>
          </TR>
          </TABLE>
          <BR>





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<TR VALIGN=TOP>
<TD WIDTH=40%><FONT FACE="Times New Roman, Times, Serif" SIZE=2></FONT></TD>
<TD WIDTH=10%><FONT FACE="Times New Roman, Times, Serif" SIZE=2></FONT></TD>
<TD WIDTH=50%><FONT FACE="Times New Roman, Times, Serif" SIZE=2><B></B><BR><BR>
<BR>/s/ Tracy A. Madsen<BR>&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;<BR>
Tracy A. Madsen<BR>Principal Financial
Officer<BR><BR>May 24, 2010</FONT></TD>
</TR>
</TABLE>
<BR>






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<A NAME=ge_10qsept3009-exh321></A>



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<P ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>EXHIBIT 32.1 </FONT></P>

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<P ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>CERTIFICATION PURSUANT
TO <BR>18 U.S.C. SECTION 1350, <BR>AS ADOPTED PURSUANT TO <BR>SECTIONS 906 OF THE
SARBANES-OXLEY ACT OF 2002 </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>In connection with the Quarterly
Report of Golden Eagle International, Inc. (&#147;the Company&#148;) on Form 10-Q for the
period ended March 31, 2010, as filed with the Securities and Exchange Commission on the
date hereof (&#147;the Report&#148;), I, Terry C. Turner, President and Principal
Executive Officer, hereby certify, pursuant to 18 U.S.C. Section 1350, as adopted pursuant
to Section 906 of the Sarbanes-Oxley Act of 2002, that: </FONT></P>

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          <TR VALIGN=TOP>
          <TD WIDTH=15%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
          <TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>(1) </FONT></TD>
          <TD WIDTH=80%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
          the Report fully complies with the requirements of Section 13(a) or 15(d) of the
          Securities Exchange Act of 1934; and </FONT></TD>
          </TR>
          </TABLE>
          <BR>

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          <TR VALIGN=TOP>
          <TD WIDTH=15%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
          <TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>(2) </FONT></TD>
          <TD WIDTH=80%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
          the information contained in the Report fairly presents, in all material
          respects, the financial condition and results of operations of the Company. </FONT></TD>
          </TR>
          </TABLE>
          <BR>



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<TABLE WIDTH=100% CELLSPACING=0 CELLPADDING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=40%><FONT FACE="Times New Roman, Times, Serif" SIZE=2></FONT></TD>
<TD WIDTH=10%><FONT FACE="Times New Roman, Times, Serif" SIZE=2></FONT></TD>
<TD WIDTH=50%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Date: May 24, 2010<BR><BR>
<BR>/s/ Terry C. Turner<BR>&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;<BR>
Terry C. Turner<BR>President and Principal Executive Officer</FONT></TD>
</TR>
</TABLE>
<BR>



<DIV TITLE="EE+ Page Break" STYLE="page-break-after:always;" ALIGN="Center">25</DIV>


<A NAME=ge_10qsept3009-exh322></A>


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<A NAME=ge_10qsept3009-exh322r></A>
<P ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>EXHIBIT 32.2 </FONT></P>

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<P ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>CERTIFICATION PURSUANT
TO <BR>18 U.S.C. SECTION 1350, <BR>AS ADOPTED PURSUANT TO <BR>SECTIONS 906 OF THE
SARBANES-OXLEY ACT OF 2002 </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>In connection with the Quarterly
Report of Golden Eagle International, Inc. (&#147;the Company&#148;) on Form 10-Q for the
period ended March 31, 2010, as filed with the Securities and Exchange Commission on the
date hereof (&#147;the Report&#148;), I, Tracy A. Madsen, Vice President and Principal
Accounting Officer, hereby certify, pursuant to 18 U.S.C. Section 1350, as adopted
pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that: </FONT></P>

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          <TR VALIGN=TOP>
          <TD WIDTH=15%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
          <TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>(1) </FONT></TD>
          <TD WIDTH=80%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
          the Report fully complies with the requirements of Section 13(a) or 15(d) of the
          Securities Exchange Act of 1934; and </FONT></TD>
          </TR>
          </TABLE>
          <BR>

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          <TR VALIGN=TOP>
          <TD WIDTH=15%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
          <TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>(2) </FONT></TD>
          <TD WIDTH=80%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
          the information contained in the Report fairly presents, in all material
          respects, the financial condition and results of operations of the Company. </FONT></TD>
          </TR>
          </TABLE>
          <BR>
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<TABLE WIDTH=100% CELLSPACING=0 CELLPADDING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=40%><FONT FACE="Times New Roman, Times, Serif" SIZE=2></FONT></TD>
<TD WIDTH=10%><FONT FACE="Times New Roman, Times, Serif" SIZE=2></FONT></TD>
<TD WIDTH=50%><FONT FACE="Times New Roman, Times, Serif" SIZE=2><B></B><BR><BR>
<BR>/s/ Tracy A. Madsen<BR>&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;<BR>
Tracy A. Madsen<BR>Principal Financial
Officer<BR><BR>May 24, 2010</FONT></TD>
</TR>
</TABLE>
<BR>




<DIV TITLE="EE+ Page Break" STYLE="page-break-after:always;" ALIGN="Center">26</DIV>











<A NAME=ge_10qmar10-balshe></A>

<TABLE CELLPADDING="0" CELLSPACING="0" BORDER="0" WIDTH="600" ALIGN="Center">
<TR VALIGN=Bottom>
     <TH><FONT FACE="Times New Roman" SIZE=2></FONT></TH>
     <TH><FONT FACE="Times New Roman" SIZE=2></FONT></TH>
     <TH><FONT FACE="Times New Roman" SIZE=2></FONT></TH></TR>
<TR VALIGN=Bottom>
     <TD colspan=3 ALIGN=LEFT><HR></TD></TR>
<TR VALIGN=Bottom>
     <TD WIDTH=60% ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=3><B>Golden Eagle International, Inc.</B></FONT></TD>
     <TD WIDTH=20% ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD>
     <TD WIDTH=20% ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2><B>Condensed Consolidated Balance Sheets</B></FONT></TD></TR>

<TR VALIGN=Bottom>
     <TD colspan=3 ALIGN=LEFT><HR></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=2><B>(Unaudited)</B>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=2><B></B>&nbsp;</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=2><B>March 31,<BR>2010</B>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=2><B>December 31,<BR>2009</B>&nbsp;</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD colspan=3 ALIGN=LEFT><HR color="black"></TD></TR>






<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD></TR>

<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2><B>ASSETS</B></FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD></TR>


<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2><B>CURRENT ASSETS</B></FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Cash &amp; cash equivalents</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=2>$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;126&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=2>$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2,029&nbsp;</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net accounts receivable</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=2>998,747&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=2>1,178,463&nbsp;</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Prepaid expenses</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=2>47,858&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=2>53,961&nbsp;</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD colspan=3 ALIGN=LEFT><HR></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I>Total current assets</I></FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=2>1,046,731&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=2>1,234,453&nbsp;</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD colspan=3 ALIGN=LEFT><HR></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD></TR>

<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2><B>PROPERTY AND EQUIPMENT</B></FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Mining equipment and property</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=2>395,503&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=2>496,426&nbsp;</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Plant and mill - idle</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=2>3,980,000&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=2>3,980,000&nbsp;</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Mine development costs</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=2>752,339&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=2>752,339&nbsp;</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Mineral properties</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=2>1,427,740&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=2>1,372,977&nbsp;</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Office equipment</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=2>57,657&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=2>57,657&nbsp;</FONT></TD></TR>

<TR VALIGN=Bottom>
     <TD colspan=3 ALIGN=LEFT><HR></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=2>6,613,239&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=2>6,659,399&nbsp;</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Less accumulated depreciation and impairment</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=2>(2,397,298)</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=2>(2,285,417)</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD colspan=3 ALIGN=LEFT><HR></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I>Total property and equipment</I></FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=2>4,215,942&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=2>4,373,983&nbsp;</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD colspan=3 ALIGN=LEFT><HR></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD></TR>

<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2><B>Total Assets</B></FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=2>$&nbsp;&nbsp;&nbsp;5,262,673&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=2>$&nbsp;&nbsp;&nbsp;5,608,436&nbsp;</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD colspan=3 ALIGN=LEFT><HR color="black"></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD></TR>

<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2><B>LIABILITIES AND STOCKHOLDERS' EQUITY</B></FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD></TR>

<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2><B>CURRENT LIABILITIES</B></FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Accounts payable and accrued expenses</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=2>$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1,707,512&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=2>$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1,733,283&nbsp;</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Deferred wages</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=2>385,633&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=2>276,770&nbsp;</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Other notes payable</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=2>558,909&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=2>508,909&nbsp;</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Related party payable</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=2>141,500&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=2>75,000&nbsp;</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Debentures (net)</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=2>118,458&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=2>95,250&nbsp;</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Accrued interest payable</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=2>248,092&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=2>194,559&nbsp;</FONT></TD></TR>


<TR VALIGN=Bottom>
     <TD colspan=3 ALIGN=LEFT><HR></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I>Total current liabilities</I></FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=2>3,160,103&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=2>2,883,771&nbsp;</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD colspan=3 ALIGN=LEFT><HR></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Convertible notes payable-net</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=2>-&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=2>-</FONT></TD></TR>





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     <TH><FONT FACE="Times New Roman" SIZE=2></FONT></TH>
     <TH><FONT FACE="Times New Roman" SIZE=2></FONT></TH>
     <TH><FONT FACE="Times New Roman" SIZE=2></FONT></TH></TR>
<TR VALIGN=Bottom>
     <TD colspan=3 ALIGN=LEFT><HR></TD></TR>
<TR VALIGN=Bottom>
     <TD WIDTH=62% ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I>Total long term liabilities</I></FONT></TD>
     <TD WIDTH=21% ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=2>-&nbsp;</FONT></TD>
     <TD WIDTH=17% ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=2>-&nbsp;</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD colspan=3 ALIGN=LEFT><HR></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD></TR>

<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Common stock payable</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=2>75,000&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=2>85,000&nbsp;</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Commitments and contingencies</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=2>-&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=2>-&nbsp;</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD colspan=3 ALIGN=LEFT><HR></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I>Total Liabilities</I></FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=2>3,235,103&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=2>2,968,771&nbsp;</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD colspan=3 ALIGN=LEFT><HR></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD></TR>

<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2><B>STOCKHOLDERS' EQUITY</B></FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Preferred stock, par value $.01 per share; 10,000,000 shares authorized,819,220 and 819,220 issued and outstanding respectively</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=2>8,192&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=2>8,192&nbsp;</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Common stock, par value $.0001 per share; 2,000,000,000 authorized shares;3,950,102 and 3,950,102  issued and outstanding shares, respectively restated</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=2>395&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=2>395&nbsp;</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Additional paid-in capital</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=2>63,630,155&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=2>63,611,428&nbsp;</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Accumulated (deficit)</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=2>(61,611,173)</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=2>(60,980,351)</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD colspan=3 ALIGN=LEFT><HR></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I>Total stockholders' equity</I></FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=2>2,027,570&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=2>2,639,665&nbsp;</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD colspan=3 ALIGN=LEFT><HR></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2><B>Total Liabilities and Stockholders' Equity</B></FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=2>$&nbsp;&nbsp;&nbsp;5,262,673&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=2>$&nbsp;&nbsp;&nbsp;5,608,436&nbsp;</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD colspan=3 ALIGN=LEFT><HR color="black"></TD></TR>
</TABLE>
<BR><BR>

<!-- MARKER Page Break='Start' -->
<div title="ee+ page break" style="page-break-after:always; text-align:center">The footnotes are an integral part of these financial statements<BR>F-1</div>
<!-- MARKER Page Break='End' -->
<BR><BR>

<A NAME=ge_10qmar10-stofop></A>

<TABLE CELLPADDING="0" CELLSPACING="0" BORDER="0" WIDTH="600" ALIGN="Center">
<TR VALIGN=Bottom>
     <TH><FONT FACE="Times New Roman" SIZE=2></FONT></TH>
     <TH><FONT FACE="Times New Roman" SIZE=2></FONT></TH>
     <TH><FONT FACE="Times New Roman" SIZE=2></FONT></TH></TR>
<TR VALIGN=Bottom>
     <TD colspan=3 ALIGN=LEFT><HR></TD></TR>
<TR VALIGN=Bottom>
     <TD WIDTH=67% ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=3><B>Golden Eagle International, Inc.</B></FONT></TD>
     <TD WIDTH=18% ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD>
     <TD WIDTH=15% ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2><B> Condensed Consolidated Statements of Operations (Unaudited)</B></FONT></TD></TR>

<TR VALIGN=Bottom>
     <TD colspan=3 ALIGN=LEFT><HR></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=2><B>March 31,<BR>2010&nbsp;</B></FONT></TD>
     <TD ALIGN=RIGHT ><FONT FACE="Times New Roman" SIZE=2><B>March 31, <BR>2009&nbsp;</B></FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD colspan=3 ALIGN=LEFT><HR></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2><B>REVENUES</B></FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=2>$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;-&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=2>$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;814,683&nbsp;</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD></TR>

<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2><B>OPERATING EXPENSES</B></FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Production Costs</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=2>-&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=2>676,332&nbsp;</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Exploration and development</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=2>16,510&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=2>41,828&nbsp;</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;General and administration</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=2>270,610&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=2>269,044&nbsp;</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Bad debt expense</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=2>202,688&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=2>-&nbsp;</FONT></TD></TR>

<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Depreciation and depletion</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=2>51&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=2>18,876&nbsp;</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD colspan=3 ALIGN=LEFT><HR></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I>Total operating expenses</I></FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=2>489,859&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=2>1,006,081&nbsp;</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD colspan=3 ALIGN=LEFT><HR></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2><B>OPERATING INCOME (LOSS)</B></FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=2>(489,859)</FONT></TD>
     <TD ALIGN=RIGHT ><FONT FACE="Times New Roman" SIZE=2>(191,398)</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD colspan=3 ALIGN=LEFT><HR></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2><B>OTHER INCOME (EXPENSE)</B></FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Interest expense</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=2>(53,533)</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=2>(20,418)</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Gain (loss) on sale of assets</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=2>(8,261)&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=2>3,965&nbsp;</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Asset Impairment</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=2>(54,763)&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=2>-&nbsp;</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Accretion of note discount</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=2>(23,208)</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=2>(36,923)</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Other, net</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=2>(1,198)</FONT></TD>
     <TD ALIGN=RIGHT ><FONT FACE="Times New Roman" SIZE=2>(209,154)&nbsp;</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD colspan=3 ALIGN=LEFT><HR></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I>Total other income (expense)</I></FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=2>(140,963)</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=2>(262,530)</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD colspan=3 ALIGN=LEFT><HR></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Loss before income taxes</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=2>(630,822)</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=2>(453,928)</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Income taxes</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=2>-&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT ><FONT FACE="Times New Roman" SIZE=2>-&nbsp;</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD colspan=3 ALIGN=LEFT><HR></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2><B>NET (LOSS)</B></FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=2>$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(630,822)</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=2>$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(453,928)</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD></TR>

<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Dividends for preferred shareholders</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=2>-&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT ><FONT FACE="Times New Roman" SIZE=2>-&nbsp;</FONT></TD></TR>

<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2><B>NET (LOSS) AVAILABLE FOR COMMON STOCK SHAREHOLDERS</B></FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=2>$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(630,822)</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=2>$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(453,928)</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD colspan=3 ALIGN=LEFT><HR></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>Basic and diluted (loss) per share</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=2>(0.16)</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=2>(0.12)</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>Weighted average shares outstanding - basic and diluted</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=2>3,950,102&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=2>3,796,736&nbsp;</FONT></TD></TR>
</TABLE>

<BR><BR>
<!-- MARKER Page Break='Start' -->
<div title="ee+ page break" style="page-break-after:always; text-align:center">F-2</div>
<!-- MARKER Page Break='End' -->





<A NAME=ge_10qmar10-statecash></A>

<TABLE CELLPADDING="0" CELLSPACING="0" BORDER="0" WIDTH="600" ALIGN="CENTER">
<TR VALIGN=Bottom>
     <TH><FONT FACE="Times New Roman" SIZE=2></FONT></TH>
     <TH><FONT FACE="Times New Roman" SIZE=2></FONT></TH>
     <TH><FONT FACE="Times New Roman" SIZE=2></FONT></TH></TR>

<TR VALIGN=Bottom>
     <TD colspan=3 ALIGN=LEFT><HR></TD></TR>
<TR VALIGN=Bottom>
     <TD WIDTH="60%" ALIGN="Left"><FONT FACE="Times New Roman" SIZE=3><B>Golden Eagle International, Inc.</B></FONT></TD>
     <TD WIDTH="20%" ALIGN="RIGHT"><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD>
     <TD WIDTH="20%" ALIGN="RIGHT"><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN="LEFT"><FONT FACE="Times New Roman" SIZE=2><B>Condensed Consolidated Statements of Cash Flows<BR>For the Three Months Ended (Unaudited)</B></FONT></TD>
</TR>

<TR VALIGN=Bottom>
     <TD colspan=3 ALIGN=LEFT><HR></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN="LEFT"><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman" SIZE=2><B>March 31, <BR><I>2010</I></B>&nbsp;</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman" SIZE=2><B>March 31, <BR><I>2009</I></B>&nbsp;</FONT></TD></TR>



<TR VALIGN=Bottom>
<TD ALIGN="LEFT"><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD>
<TD colspan=2 ALIGN=LEFT><HR></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN="LEFT"><FONT FACE="Times New Roman" SIZE=2>&nbsp;<B>CASH FLOWS FROM OPERATING ACTIVITIES</B></FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD></TR>

<TR VALIGN=Bottom>
     <TD ALIGN="LEFT"><FONT FACE="Times New Roman" SIZE=2>&nbsp;Net (loss)</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman" SIZE=2>$(630,822)</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman" SIZE=2>$(453,928)</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN="LEFT"><FONT FACE="Times New Roman" SIZE=2>&nbsp;Adjustments to reconcile net (loss)</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN="LEFT"><FONT FACE="Times New Roman" SIZE=2>&nbsp;&nbsp;&nbsp;to net cash (used) by operating activities:</FONT></TD></TR>

<TR VALIGN=Bottom>
     <TD ALIGN="LEFT"><FONT FACE="Times New Roman" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;Stock payable for services</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman" SIZE=2>15,000&nbsp;</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman" SIZE=2>50,000</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN="LEFT"><FONT FACE="Times New Roman" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;Bad debt expense</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman" SIZE=2>202,688&nbsp;</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman" SIZE=2>-&nbsp;</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN="LEFT"><FONT FACE="Times New Roman" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;Depreciation</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman" SIZE=2>51&nbsp;</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman" SIZE=2>18,876&nbsp;</FONT></TD></TR>


<TR VALIGN=Bottom>
     <TD ALIGN="LEFT"><FONT FACE="Times New Roman" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;Accretion of note discount</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman" SIZE=2>23,208&nbsp;</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman" SIZE=2>36,923&nbsp;</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN="LEFT"><FONT FACE="Times New Roman" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;Value of options granted </FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman" SIZE=2>8,726&nbsp;</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman" SIZE=2>11,354&nbsp;</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN="LEFT"><FONT FACE="Times New Roman" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;Gain (los) on disposition of assets</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman" SIZE=2>(8,261)</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman" SIZE=2>(3,964)</FONT></TD></TR>


<TR VALIGN=Bottom>
     <TD ALIGN="LEFT"><FONT FACE="Times New Roman" SIZE=2>&nbsp;Changes in operating assets and liabilities</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN="LEFT"><FONT FACE="Times New Roman" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;Decrease (increase) in accounts receivable</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman" SIZE=2>179,716</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman" SIZE=2>(302,236)</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN="LEFT"><FONT FACE="Times New Roman" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;Decrease (increase) in prepaid expense and other costs</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman" SIZE=2>6,103&nbsp;</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman" SIZE=2>9,035&nbsp;</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN="LEFT"><FONT FACE="Times New Roman" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;Increase (decrease) in deferred wages</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman" SIZE=2>108,863&nbsp;</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman" SIZE=2>23,595&nbsp;</FONT></TD></TR>

<TR VALIGN=Bottom>
     <TD ALIGN="LEFT"><FONT FACE="Times New Roman" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;Increase (decrease) in accounts payable</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman" SIZE=2>(25,771)&nbsp;</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman" SIZE=2>251,908&nbsp;</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN="LEFT"><FONT FACE="Times New Roman" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;Increase (decrease) in accrued interest</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman" SIZE=2>53,533&nbsp;</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman" SIZE=2>10,867</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD colspan=3 ALIGN=LEFT><HR></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN="LEFT"><FONT FACE="Times New Roman" SIZE=2>&nbsp;<I>Net cash flows (used by) operating activities</I></FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman" SIZE=2>(66,966)</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman" SIZE=2>(347,570)</FONT></TD></TR>


<TR VALIGN=Bottom>
     <TD colspan=3 ALIGN=LEFT><HR></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN="LEFT"><FONT FACE="Times New Roman" SIZE=2>&nbsp;<B>CASH FLOWS FROM INVESTING ACTIVITIES</B></FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD></TR>

<TR VALIGN=Bottom>
     <TD ALIGN="LEFT"><FONT FACE="Times New Roman" SIZE=2>&nbsp;Investment in property and equipment</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman" SIZE=2>(40,587)&nbsp;</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman" SIZE=2>178,774</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN="LEFT"><FONT FACE="Times New Roman" SIZE=2>&nbsp;Proceeds from sale of fixed assets</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman" SIZE=2>-&nbsp;</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman" SIZE=2>-</FONT></TD></TR>

<TR VALIGN=Bottom>
     <TD colspan=3 ALIGN=LEFT><HR></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN="LEFT"><FONT FACE="Times New Roman" SIZE=2>&nbsp;<I>Net cash flows provided by (used) in investing activities</I></FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman" SIZE=2>(40,587)&nbsp;</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman" SIZE=2>178,774</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD colspan=3 ALIGN=LEFT><HR></TD></TR>

<TR VALIGN=Bottom>
     <TD ALIGN="LEFT"><FONT FACE="Times New Roman" SIZE=2>&nbsp;<B>&nbsp;</B></FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN="LEFT"><FONT FACE="Times New Roman" SIZE=2>&nbsp;<B>CASH FLOWS FROM FINANCING ACTIVITIES</B></FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD></TR>

<TR VALIGN=Bottom>
     <TD ALIGN="LEFT"><FONT FACE="Times New Roman" SIZE=2>&nbsp;&nbsp;&nbsp;Borrowings from related parties</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman" SIZE=2>45,650&nbsp;</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman" SIZE=2>55,000&nbsp;</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN="LEFT"><FONT FACE="Times New Roman" SIZE=2>&nbsp;&nbsp;&nbsp;Repayments to related parties</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman" SIZE=2>-&nbsp;</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman" SIZE=2>(7,525))</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN="LEFT"><FONT FACE="Times New Roman" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;Proceeds from other notes payable</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman" SIZE=2>50,000&nbsp;</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman" SIZE=2>54,160&nbsp;</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN="LEFT"><FONT FACE="Times New Roman" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;Proceeds from debentures</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman" SIZE=2>10,000</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman" SIZE=2>-</FONT></TD></TR>



<TR VALIGN=Bottom>
     <TD ALIGN="LEFT"><FONT FACE="Times New Roman" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;Common stock sold</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman" SIZE=2>-&nbsp;</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman" SIZE=2>20,000&nbsp;</FONT></TD></TR>

<TR VALIGN=Bottom>
     <TD colspan=3 ALIGN=LEFT><HR></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN="LEFT"><FONT FACE="Times New Roman" SIZE=2>&nbsp;&nbsp;&nbsp;<I>Net cash flows provided by financing activities</I></FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman" SIZE=2>105,650</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman" SIZE=2>121,635</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD colspan=3 ALIGN=LEFT><HR></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN="LEFT"><FONT FACE="Times New Roman" SIZE=2>&nbsp;<B>NET INCREASE (DECREASE) IN CASH</B></FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman" SIZE=2>(1,903)</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman" SIZE=2>(47,161)</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN="LEFT"><FONT FACE="Times New Roman" SIZE=2>&nbsp;<B>CASH - BEGINNING OF PERIOD</B></FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman" SIZE=2>2,029</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman" SIZE=2>54,883</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD colspan=3 ALIGN=LEFT><HR></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN="LEFT"><FONT FACE="Times New Roman" SIZE=2>&nbsp;<B>CASH - END OF PERIOD</B></FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman" SIZE=2>$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;126&nbsp;</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman" SIZE=2>$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7,722&nbsp;</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD colspan=3 ALIGN=LEFT><HR COLOR="BLACK"></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN="LEFT"><FONT FACE="Times New Roman" SIZE=2><B>SUPPLEMENTAL CASH FLOW INFORMATION</B></FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN="LEFT"><FONT FACE="Times New Roman" SIZE=2>&nbsp;&nbsp;<I><B>Non cash financing and investing activities (see note b)</B></I></FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN="LEFT"><FONT FACE="Times New Roman" SIZE=2>&nbsp;&nbsp;&nbsp;Preferred and common stock issued for debt </FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman" SIZE=2>$&nbsp;-&nbsp;</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman" SIZE=2>$&nbsp;&nbsp;&nbsp;189,221&nbsp;</FONT></TD></TR>

<TR VALIGN=Bottom>
     <TD ALIGN="LEFT"><FONT FACE="Times New Roman" SIZE=2>&nbsp;&nbsp;<I><B>Cash paid for</B></I></FONT></TD>
<TD ALIGN="RIGHT"><FONT FACE="Times New Roman" SIZE=2></FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman" SIZE=2></FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD colspan=3 ALIGN=LEFT><HR></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN="LEFT"><FONT FACE="Times New Roman" SIZE=2>&nbsp;&nbsp;&nbsp;Interest</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman" SIZE=2>$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;-&nbsp;</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman" SIZE=2>$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9,258&nbsp;</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN="LEFT"><FONT FACE="Times New Roman" SIZE=2>&nbsp;&nbsp;&nbsp;Income taxes</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman" SIZE=2>-&nbsp;</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman" SIZE=2>-&nbsp;</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD colspan=3 ALIGN=LEFT><HR></TD></TR>
</TABLE>
<BR><BR>
<!-- MARKER Page Break='Start' -->
<div title="ee+ page break" style="page-break-after:always; text-align:center">The footnotes are an integral part of these financial statements<BR>F-3</div>
<!-- MARKER Page Break='End' -->
<BR><BR>


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<A NAME=ge_10qmar10notes></A>
<H1 ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Golden Eagle
International, Inc.<BR>Notes to Condensed Consolidated Financial Statements <BR>(Unaudited) </FONT></H1>

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<A NAME=A004></A>
<H1 ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Note A &#150; Basis of
Presentation </FONT></H1>


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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>The accompanying financial statements
are unaudited. However, in our opinion, the accompanying financial statements reflect all
adjustments, consisting of only normal recurring adjustments, necessary for fair
presentation. Interim results of operations are not necessarily indicative of results for
the quarter ended March 31, 2010. These financial statements should be read in conjunction
with our Annual Report on Form 10-K for the year ended December 31, 2009. </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Except for the historical information
contained in this Form 10-Q, this Form contains forward-looking statements that involve
risks and uncertainties. Our actual results could differ materially from those discussed
in this Report. Factors that could cause or contribute to such differences include, but
are not limited to, those discussed in this Report and any documents incorporated herein
by reference, as well as the Annual Report on Form 10-K for the year ended December 31,
2009. </FONT></P>


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<A NAME=A005></A>
<H1 ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Note B &#151;
Organization and Nature of Business </FONT></H1>


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<A NAME=A006></A>
<P ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2></FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2><U><I>Organization and Nature
of Business</I></U> <BR>Golden Eagle International, Inc.
(&#147;we,&#148; &#147;us&#148; or &#147;Golden Eagle&#148;) was incorporated in Colorado
on July 21, 1988. From late 2008 until June 10, 2009 we were engaged in contract gold
milling operations in the state of Nevada in the United States. </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>We have also been involved in the
business of minerals exploration, mining and milling operations, in Bolivia through our
Bolivian-based wholly-owned subsidiary, Golden Eagle International, Inc. (Bolivia);
however, those operations are suspended in 2009 in part as the result of the negative
political and social environment in Bolivia as well changes in the Bolivian taxing scheme;
and in March 2010 we transferred control of our Bolivian assets and operations although we
retain ownership of those assets. </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Additionally, as of December 31, 2009
we owned the following gold mills which are not currently in operation: </FONT></P>




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<TR VALIGN=Bottom>
     <TH><FONT FACE="Times New Roman" SIZE=2></FONT></TH>
     <TH><FONT FACE="Times New Roman" SIZE=2></FONT></TH>
     <TH><FONT FACE="Times New Roman" SIZE=2></FONT></TH></TR>
<TR VALIGN=Bottom>
     <TD WIDTH=33% ALIGN=LEFT STYLE="border-bottom:solid 1px #000000;"><FONT FACE="Times New Roman" SIZE=2><I>Mill</I></FONT></TD>
     <TD WIDTH=57% ALIGN=LEFT STYLE="border-bottom:solid 1px #000000;"><FONT FACE="Times New Roman" SIZE=2><I>Location</I></FONT></TD>
     <TD WIDTH=10% ALIGN=LEFT STYLE="border-bottom:solid 1px #000000;"><FONT FACE="Times New Roman" SIZE=2><I>Status</I></FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>Gold Bar Mill</FONT></TD>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>Eureka, Nevada</FONT></TD>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>Owned</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>C Zone Mill (1)</FONT></TD>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>Ascension de Guarayos, Bolivia</FONT></TD>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>Owned</FONT></TD></TR>
</TABLE>
<BR><BR><BR><BR>



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<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=5%>&nbsp;</TD>
<TD WIDTH=95%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
<SUP>1
</SUP>On March 10, 2010 control of the C Zone Mill was transferred to an unaffiliated
Swiss corporation, although we retain ownership of the C Zone Mill. There can be no
assurance that the unaffiliated third party will complete the acquisition of our Bolivian
assets. </FONT></TD>
</TR>
</TABLE>
<BR>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>As of the 2009 year-end, we owned the
following mineral prospects in Bolivia which are not currently in operation, but are being
maintained (except as set forth in notes 1 and 2, below): </FONT></P>




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<TR VALIGN=Bottom>
     <TH><FONT FACE="Times New Roman" SIZE=2></FONT></TH>
     <TH><FONT FACE="Times New Roman" SIZE=2></FONT></TH>
     <TH><FONT FACE="Times New Roman" SIZE=2></FONT></TH></TR>
<TR VALIGN=Bottom>
     <TD WIDTH=56% ALIGN=LEFT STYLE="border-bottom:solid 1px #000000;"><FONT FACE="Times New Roman" SIZE=2><I>Precambrian Shield &sup2;</I></FONT></TD>
     <TD WIDTH=34% ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD>
     <TD WIDTH=10% ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>Precambrian prospect</FONT></TD>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>111,500 acres</FONT></TD>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>Owned</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>Buen Futuro claim</FONT></TD>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>2,500 acres</FONT></TD>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>Owned</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>Cobra claim</FONT></TD>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>22,500 acres</FONT></TD>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>Owned</FONT></TD></TR>
</TABLE>



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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2><SUP>2 </SUP>On March 1, 2009, we
elected to reduce our mining concessions in the Precambrian Shield in eastern Bolivia from
136,500 acres to 42,731 acres. We retained the Buen Futuro claims containing the A Zone on
which we have generated the most drill and other sampling data, as well as the Gran
Serpiente claims on which the C Zone gold mill and mine are located. We also retained the
Cobra claims on the northern end of the Ascension Gold-Copper Trend. As a subsequent
event, control of these assets was transferred to an unaffiliated Swiss Corporation on
March 10, 2010, although we retain ownership of the underlying assets. </FONT></P>

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<P ALIGN="Center"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>F-4 </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>On March 1, 2009, we elected not to
renew our mining concessions for the Tipuani-Cangalli prospect in western Bolivia, which
consisted of 12,000 acres in the Tipuani River Valley. We have no further interest in the
Tipuani-Cangalli prospect. </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>We entered into an agreement with
Queenstake USA to operate the Jerritt Canyon gold mill (the &#147;Jerritt Canyon
Mill&#148;) located 50 miles north of Elko, Nevada on October 14, 2008. From mid September
2008 until March 23, 2009 we performed maintenance and environmental regulatory compliance
functions at the mill and assisted the mill owner, Queenstake USA, Inc. (&#147;Queenstake
USA&#148;) in securing approval from the Nevada Division of Environmental Protection to
restart milling operations. On March 25, 2009 approval was granted to recommence
operations at the Jerritt Canyon Mill and operations recommenced on that day. However, on
June 10, 2009 the agreement with Queenstake USA to operate the mill was purportedly
terminated by Queenstake USA, and we are currently engaged in litigation in the Fourth
District Court for Elko County, Nevada, which is still pending, to enforce our contractual
rights. We have asserted cross claims for damages and performance obligations against
Queenstake USA, Queenstake Resources, Ltd., the guarantor corporation on the agreement,
Yukon-Nevada Gold Corp. (&#147;YNG&#148;), Queenstake USA&#146;s parent corporation, and
an investor in YNG who is a French national residing in Switzerland. </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>None of our mining prospects are
currently in the production stage. We believe the Bolivian government has become more
hostile to investment from the United States, and as a result during 2009 reduced our
operations in Bolivia significantly. We also discontinued mining and milling operations on
our C Zone mine and mill in December of 2008 due to the shortage of diesel fuel, political
instability and a substantial change in the Bolivian tax structure for mining companies
that severely limited our ability to become profitable on our Bolivian operations. </FONT></P>

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<A NAME=A007></A>
<H1 ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2> </FONT></H1>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2><U><I>Organization of
Subsidiaries and Bolivian Mining Activities</I></U><BR>In January 1996, we organized two
Bolivian corporations, Golden Eagle Bolivia Mining, S.A. (&#147;GEBM&#148;) and Eagle
Mining of Bolivia, Ltd. (&#147;EMB&#148;), to acquire mining rights to 5,000 acres from
United Cangalli Gold Mining Cooperative, Ltd. (&#147;UCL&#148;). We own a majority
interest in those companies. In 2001, Golden Eagle formed a wholly owned Bolivian
corporation, Golden Eagle International, Inc. Bolivia (&#147;GEII Bolivia&#148;) to
conduct all continuing operations in Bolivia. In 2002, we transferred substantially all
agreements, obligations, assets and mining rights in Bolivia to GEII Bolivia. GEBM and EMB
are currently inactive. As a subsequent event, control of GEII Bolivia was transferred to
an unaffiliated Swiss Corporation on March 10, 2010, although we continue to own GEII
Bolivia and the underlying assets. There can be no assurance that the unaffiliated third
party will complete the acquisition of our Bolivian assets. </FONT></P>

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<A NAME=A008></A>
<H1 ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2> </FONT></H1>


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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2><U><I>Going Concern
Considerations</I></U><BR>The accompanying financial statements
have been presented assuming we will continue as a going concern, which contemplates the
realization of assets and the satisfaction of liabilities in the normal course of
business. However, we had a working capital deficit of $2,113,372 as of March 31, 2010
and we have incurred substantial losses of $61,611,173 since our inception. In addition,
we discontinued operations at our C Zone mine and mill in December 2008. Our agreement
with Queenstake USA to operate the Jerritt Canyon Mill was purportedly terminated by
Queenstake USA on June 10, 2009, and we have not engaged in any revenue producing
operations since that time. We can provide no assurance as to if or when we may generate
revenues or recommence any milling operations. </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>There is substantial doubt about our
ability to continue as a going concern. The financial statements do not include any
adjustments to reflect the possible future effect on the recoverability and classification
of assets or the amounts and classification of liabilities that may result from the
outcome of these uncertainties. </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>We will likely seek to obtain
additional funds, through private placements of debt or equity securities, short-term
loans, suitable joint venture relationships and long-term debt financing. However, there
can be no assurance that capital or financing will be available to us on reasonable terms,
if at all. </FONT></P>


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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>F-5 </FONT></P>


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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2><I><U>Reclassifications
</U></I><BR>Certain amounts for the three months ended March 31, 2009 have been
reclassified to conform to the March 31, 2010 presentation. These reclassifications were
not material to the financial statements. </FONT></P>


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<A NAME=A009></A>
<H1 ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Note C &#150; (Loss) Per
Share </FONT></H1>


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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>The computation of basic earnings
(loss) per common share is based on the weighted average number of shares outstanding
during each year. </FONT></P>




<TABLE CELLPADDING="0" CELLSPACING="0" BORDER="1" WIDTH="600" ALIGN="Center">
<TR VALIGN=Bottom>
     <TH><FONT FACE="Times New Roman" SIZE=2></FONT></TH>
     <TH><FONT FACE="Times New Roman" SIZE=2></FONT></TH>
     <TH><FONT FACE="Times New Roman" SIZE=2></FONT></TH></TR>
<TR VALIGN=Bottom>
     <TD WIDTH=73% ALIGN=LEFT STYLE="border-bottom:solid 1px #000000;"><FONT FACE="Times New Roman" SIZE=2>Loss per share for the periods ended March 31,</FONT></TD>
     <TD WIDTH=15% ALIGN=RIGHT STYLE="border-bottom:solid 1px #000000;"><FONT FACE="Times New Roman" SIZE=2>2010</FONT></TD>
     <TD WIDTH=12% ALIGN=RIGHT STYLE="border-bottom:solid 1px #000000;"><FONT FACE="Times New Roman" SIZE=2>2009</FONT></TD></TR>

<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>Net loss available to common stock shareholders</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=2>$&nbsp;&nbsp;(630,822)</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=2>$&nbsp;&nbsp;(453,928)</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>Weighted average shares outstanding - basic and diluted</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=2>3,950,102&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=2>3,796,736&nbsp;</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>Basic and diluted (loss) per share</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=2>$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(.16)</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=2>$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(.12)</FONT></TD></TR>

</TABLE>


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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>The computation of diluted earnings
per common share is based on the weighted average number of shares outstanding during the
year plus the common stock equivalents as detailed in the following chart. The inclusion
of these shares would have resulted in a weighted average shares fully diluted number that
was anti-dilutive and as such they are excluded from the weighted average shares basic and
diluted calculation. All of the information in the below table regarding the fully diluted
outstanding capital of the Company gives effect to the 1-for-500 combination of our common
stock (see Note L &#150; Approval of Reverse Stock Split). </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Stock equivalents considered but not
included in fully diluted shares due to anti-dilusion for the three months ended March 31,
2010 </FONT></P>




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<TR VALIGN=Bottom>
     <TH><FONT FACE="Times New Roman" SIZE=2></FONT></TH>
     <TH><FONT FACE="Times New Roman" SIZE=2></FONT></TH>
     <TH><FONT FACE="Times New Roman" SIZE=2></FONT></TH></TR>
<TR VALIGN=Bottom>
     <TD WIDTH=55% ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD>
     <TD WIDTH=26% ALIGN=RIGHT STYLE="border-bottom:solid 1px #000000;"><FONT FACE="Times New Roman" SIZE=2>2009&nbsp;</FONT></TD>
     <TD WIDTH=19% ALIGN=RIGHT STYLE="border-bottom:solid 1px #000000;"><FONT FACE="Times New Roman" SIZE=2>2008&nbsp;</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>Series B conversion</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=2>40,000&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=2>40,000&nbsp;</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>Series C conversion</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=2>975,493&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=2>975,493&nbsp;</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>Series D conversion</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=2>3,696,095&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=2>3,696,095&nbsp;</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>Convertible debentures</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=2>298,824&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=2>298,824&nbsp;</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>Options</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=2>240,531&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=2>203,829&nbsp;</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT STYLE="border-bottom:solid 1px #000000;"><FONT FACE="Times New Roman" SIZE=2>Common stock payable</FONT></TD>
     <TD ALIGN=RIGHT STYLE="border-bottom:solid 1px #000000;"><FONT FACE="Times New Roman" SIZE=2>106,250&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT STYLE="border-bottom:solid 1px #000000;"><FONT FACE="Times New Roman" SIZE=2>106,250&nbsp;</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT STYLE="border-bottom:solid 1px #000000;"><FONT FACE="Times New Roman" SIZE=2>Total</FONT></TD>
     <TD ALIGN=RIGHT STYLE="border-bottom:solid 1px #000000;"><FONT FACE="Times New Roman" SIZE=2>5,357,193&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT STYLE="border-bottom:solid 1px #000000;"><FONT FACE="Times New Roman" SIZE=2>5,320,491&nbsp;</FONT></TD></TR>
</TABLE>





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<A NAME=A010></A>
<H1 ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Note D &#150; Statement
of Cash Flows Information and Supplemental Non-Cash Financing Activities </FONT></H1>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Cash and cash equivalents include
cash and short-term investments with original maturities of three months or less. Non-cash
investing and financing transactions during the periods consist of the following: </FONT></P>



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<TR VALIGN=Bottom>
     <TH><FONT FACE="Times New Roman" SIZE=2></FONT></TH>
     <TH><FONT FACE="Times New Roman" SIZE=2></FONT></TH>
     <TH><FONT FACE="Times New Roman" SIZE=2></FONT></TH></TR>
<TR VALIGN=Bottom>
     <TD WIDTH=70% ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2><B>Three Months ended March 31,</B></FONT></TD>
     <TD WIDTH=15% ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=2><B>2010</B></FONT></TD>
     <TD WIDTH=15% ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=2><B>2009</B>&nbsp;</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>Issuance of common stock for the conversion of debt, payables and interest</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=2>$-</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=2>$302,919&nbsp;</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT STYLE="border-bottom:solid 1px #000000;"><FONT FACE="Times New Roman" SIZE=2>Issuance of common stock for convertible debentures and interest (3)</FONT></TD>
     <TD ALIGN=RIGHT STYLE="border-bottom:solid 1px #000000;"><FONT FACE="Times New Roman" SIZE=2>-</FONT></TD>
     <TD ALIGN=RIGHT STYLE="border-bottom:solid 1px #000000;"><FONT FACE="Times New Roman" SIZE=2>20,000&nbsp;</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT STYLE="border-bottom:solid 2px #000000;"><FONT FACE="Times New Roman" SIZE=2>Total</FONT></TD>
     <TD ALIGN=RIGHT STYLE="border-bottom:solid 2px #000000;"><FONT FACE="Times New Roman" SIZE=2>$-</FONT></TD>
     <TD ALIGN=RIGHT STYLE="border-bottom:solid 2px #000000;"><FONT FACE="Times New Roman" SIZE=2>$322,919&nbsp;</FONT></TD></TR>
</TABLE>
<BR>


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     <TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0 BORDER=0>
          <TR VALIGN=TOP>
          <TD WIDTH=15%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
          <TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>(1) </FONT></TD>
          <TD WIDTH=80%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
          On January 28, 2009 we issued 364,000 shares of our restricted common stock to
          Jose Edmundo Arauz in exchange for $262,974 in debt at a price of $1.70 per
          share. </FONT></TD>
          </TR>
          </TABLE>
          <BR>

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<P ALIGN="Center"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>F-6 </FONT></P>

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     <TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0 BORDER=0>
          <TR VALIGN=TOP>
          <TD WIDTH=15%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
          <TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>(2) </FONT></TD>
          <TD WIDTH=80%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
          On January 28, 2009 we issued 117,734,972 shares of our restricted common stock
          to Nestor Dimas Perez in exchange for $39,945 in debt and $1,262 in accrued
          interest at a price of $1.70 per share. </FONT></TD>
          </TR>
          </TABLE>
          <BR>





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     <TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0 BORDER=0>
          <TR VALIGN=TOP>
          <TD WIDTH=15%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
          <TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>(3) </FONT></TD>
          <TD WIDTH=80%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
          On January 28, 2009 we issued 29,448,571 shares of our restricted common stock
          to Dewey Williams in exchange for $20,000 in debentures and $614 in accrued
          interest. Additionally we issued Mr. Williams 28,571,429 shares of our
          restricted common stock for $20,000 in cash. </FONT></TD>
          </TR>
          </TABLE>
          <BR>


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<A NAME=A011></A>
<H1 ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Note E &#150; Payables </FONT></H1>


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<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>1.  </FONT></TD>
<TD WIDTH=90%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Our
accounts payable and accrued expenses of $1,707,512, which include trade
          payables and general obligations. These obligations will either become due
          within the next month, are currently due, or are in some cases more than 90
days           past due. Of the total accounts payable amount, $1,271,691 is related to
          accounts and wages payable incurred as the operator of the Jerritt Canyon mill.
          We are reliant on payments from Queenstake Resources USA, Inc. to meet these
          obligations. At the time of this filing, Queenstake owes us $2,026,876 out of
          which we intend to pay our accounts payable. Queenstake has not made payments
to           us to cover these obligations incurred on their behalf. We have filed a
          complaint against Queenstake Resources USA in the Fourth Judicial District
Court           of the state of Nevada for Elko County to obtain payment to retire these
          obligations. A more detail description of this action is contained under part
          II, Item 1, Legal Proceedings. We are in litigation with Queenstake USA at the
          present time and do not expect to receive the cash for the amount due until the
          litigation is resolved, and then only to the extent that Queenstake USA is
          capable of making payment to us, or to the extent we are able to hold its
parent           liable for its debts. While we have booked an allowance for
uncollectible           accounts in the amount of $1,078,129. To the extent that we do
not receive the           cash payments from Queenstake USA timely, we may have to write
the collectible           balance to zero and reverse the accounting entry into income
&#150; which will           reduce our revenues during that period by an additional
$948,747. It should be           noted that the production costs incurred during the six
month period is greater           than the amount of cash received from Queenstake USA
(although less than the           amount we believe is due to us). We have an obligation
to pay these expenses           notwithstanding Queenstake USA&#146;s failure to make
payment to us. In           addition, 162,000 of the payable amount relates to our
Bolivian operations which           we have sold to an unaffiliated third party. If the
transaction is completed (of           which there can be no assurance), we will be paid
for the obligation or it will           be assumed by the third party and will no longer
be our obligation.  </FONT></TD>
</TR>
</TABLE>
<BR>

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<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>2.  </FONT></TD>
<TD WIDTH=90%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Our
deferred wages are payable in cash to our officers in the United States in           the
amount of $270,687 plus additional payroll taxes of $18,863. Of this amount,
          $96,082 is owed to employees in Bolivia and relates to our Bolivian operations
          which we have sold to an unaffiliated third party. If the transaction is
          completed (of which there can be no assurance), we will be paid for this
          obligation or it will be assumed by the third party and will no longer be our
          obligation.  </FONT></TD>
</TR>
</TABLE>
<BR>

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<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>3.  </FONT></TD>
<TD WIDTH=90%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>We
have other notes payable, including:  </FONT></TD>
</TR>
</TABLE>
<BR>


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<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=15%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2> (a)  </FONT></TD>
<TD WIDTH=80%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>A
note in the face amount of $220,000 payable to Casco Credit with an interest
          rate of 12%, which matured on March 24, 2009. We did not pay this note when it
          was due. The creditor has not yet demanded payment or declared default. At the
          option of the holder, the holder may declare a default which will result in the
          note beginning to accrue interest at a default rate of 5% per month. This note
          is secured by our Gold Bar Mill, and if the creditor declares a default the
          holder could attempt to foreclose against this asset. As of December 31, 2009,
          we had accrued $140,968 in interest on this note.  </FONT></TD>
</TR>
</TABLE>
<BR>



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<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=15%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2> (b) </FONT></TD>
<TD WIDTH=80%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>A
note in the face amount of $33,000 payable to Casco Credit with and interest
          rate of 12%, which matured on February 21, 2010. We did not pay this note when
          it was due. The creditor has not yet demanded payment or declared default. At
          the option of the holder, the holder may declare a default which will result in
          the note beginning to accrue interest at a default rate of 5% per month. This
          note is secured by our Gold Bar Mill, and if the creditor declares a default
the           holder attempt to foreclose against this asset.  </FONT></TD>


</TR>
</TABLE>
<BR>

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<P ALIGN="Center"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>F-7 </FONT></P>



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<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=15%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>  (c)  </FONT></TD>
<TD WIDTH=80%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>A
note in the face amount of $70,909 payable to Edmundo Arauz with an interest
          rate of 8% per annum which matures on December 31, 2010.  </FONT></TD>
</TR>
</TABLE>
<BR>



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<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=15%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>  (d)  </FONT></TD>
<TD WIDTH=80%><FONT FACE="Times New Roman, Times, Serif" SIZE=2> A
note totaling $15,000 payable to John Saunders with an interest rate of 8%           per
annum which matured on March 31, 2010. We were unable to pay this amount           when
it became due.  </FONT></TD>
</TR>
</TABLE>
<BR>



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<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=15%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>     (e)  </FONT></TD>
<TD WIDTH=80%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>A
note payable to Lonestar Equity Group with an interest rate of 8% maturing on
          December 31, 2009. On June 30, 2009 this note was converted into 5,500 shares
of           our Series D preferred stock. On December 24, 2009 we entered into a new
note           with Lonestar Equity Group upon the receipt of $220,000 in cash. This note
          carries an interest rate of 8% per annum and matures on December 31, 2010.  </FONT></TD>
</TR>
</TABLE>
<BR>

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<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>4.  </FONT></TD>
<TD WIDTH=90%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Effective
February 6, 2007 we issued Tracy Madsen, our Chief Financial Officer a
          promissory note to cover the payment of contractual retention bonuses payable
          that we originally intended to pay through the issuance of our common stock.
          This note originally was for $50,000, had a term of 2 years, and was
convertible           11,112 shares of our Our Board of Directors elected to use a
convertible           promissory note to meet this retention bonus commitment because in
large part           because we did not have sufficient amount of common stock available
for           issuance. On April 1, 2009 an additional $25,000 in stock owing to Mr.
Madsen           55,556 was added to this note and on February 6, 2010 an additional
$25,000           convertible into 55,556 shares was added to this note for a total
$100,000. This           note has been extended until July 31, 2010. As March 31, 2010 we
had accrued           $14,846 in interest on this note.  </FONT></TD>
</TR>
</TABLE>
<BR>

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<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>5.  </FONT></TD>
<TD WIDTH=90%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>As
of December 31, 2009, we had convertible debentures outstanding totaling
          $127,000. Each of these debentures carries an interest rate of 8% per annum
          payable at maturity. Two of these debentures matured on May 16, 2010 and July
7,           2010 and the other debenture in the face amount of $52,000 matured on March
19,           2010. By their terms each debenture, and its accrued interest, is
convertible           into restricted shares of our common stock. These debentures are
convertible           into a total of 298,824 shares of our restricted common stock . On
February 3,           2010 we entered into an additional debenture totaling $10,000. This
debenture           matures on February 3, 2012 and carries an interest rate of 10% per
annum. It is           convertible into 44,445 shares of our restricted common stock.  </FONT></TD>
</TR>
</TABLE>
<BR>

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<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>  </FONT></TD>
<TD WIDTH=90%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>As these
debentures carry a conversion rate that is less the than market rate the rules of
beneficial conversion apply. The difference between the conversion rate and the market
rate is classified as a discount on the debentures and accreted over the term of the
debenture. The aggregate face amount of the outstanding debentures is $137,000. On the
balance sheet they have been discounted by $18,542 to $118,458 as of March 31, 2010. The discounted amount is
accreted over the term of the debenture or in its entirety if the debenture is converted
during the term. During the quarter ended March 31, 2010, $23,208 was accreted to
financing costs.  </FONT></TD>
</TR>
</TABLE>
<BR>

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<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>6.  </FONT></TD>
<TD WIDTH=90%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Our
obligation to pay accrued interest on Items 2-4 in the amount of $248,092.
          Interest on these notes is expensed each quarter and accrued.  </FONT></TD>
</TR>
</TABLE>
<BR>

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<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>7.  </FONT></TD>
<TD WIDTH=90%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Our
obligation for monthly lease payments of $1,619 per month for our Salt Lake
          City, Utah office, which matures on July 31, 2010. We have the option of
          canceling the remaining lease by paying of one additional month&#146;s rent.,.  </FONT></TD>
</TR>
</TABLE>
<BR>

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<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>8.  </FONT></TD>
<TD WIDTH=90%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Our
obligation to pay Livstar Management Services (Livstar), 5% of the           compensation
(not including reimbursement of expenses incurred) we received as a           result of
our mill operating agreement with Queenstake USA through a settlement           agreement
entered into on October 31, 2008, which amended a Consulting Agreement           entered
into on June 2, 2007, which replaced an earlier agreement dated April           18, 2007.
As of June 30, 2009, we owed Livstar $37,203 which is included in our           accounts
payable. These commissions are only payable upon receipt of payment           from
Queenstake USA. We cannot offer any assurance when, if ever, we will           receive
payments from Queenstake USA.  </FONT></TD>
</TR>
</TABLE>
<BR>

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<P ALIGN="Center"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>F-8</FONT></P>

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<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>9.  </FONT></TD>
<TD WIDTH=90%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Our
obligation to pay Blane Wilson, our Chief Operating Officer, 3% of the
          compensation (not including reimbursement of expenses incurred) we receive as a
          result of our agreement with Queenstake USA, and 3% of any revenues that may be
          generated from our Gold Bar mill, as part of his employment contract. As of
June           30, 2009, we owed Mr. Wilson $28,722 under this agreement, which is
included in           our accounts payable. These commissions are only payable upon
receipt of payment           from Queenstake USA. We cannot offer any assurance when, if
ever, we will           receive payments from Queenstake USA.  </FONT></TD>
</TR>
</TABLE>
<BR>

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<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>10.  </FONT></TD>
<TD WIDTH=90%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>While
it is not a cash obligation, we have a commitment to pay $75,000 in stock           to
Harlan (Mac) DeLozier as part of his employment agreement for the years 2006,
          2007 and 2008. Mr. Delozier is our Vice President of Bolivian Operations and a
          member of our Board of Directors. Additionally, as of September 30, 2009 we
have           accrued $12,882 in interest on this stock payable as we currently do not
have           sufficient shares to satisfy this obligation.  </FONT></TD>
</TR>
</TABLE>
<BR>


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<A NAME=A012></A>
<H1 ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Note F &#150; Beneficial
Conversion Feature of Debentures, Convertible Notes Payable and Convertible Preferred
Stock </FONT></H1>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>In accordance with Emerging Issues
Task Force No. 98-5, <I>Accounting for Convertible Securities with Beneficial Conversion
Features or Contingently Adjustable Conversion Ratios</I>, and No. 00-27, <I>Application
of Issue No. 98-5 to Certain Convertible Instruments</I>, we recognize the advantageous
value of conversion rights attached to convertible debt. Such rights give the debt holder
the ability to convert his debt into common stock at a price per share that is less than
the trading price to the public on the day the loan is made to us. The beneficial value is
calculated as the intrinsic value (the market price of the stock at the commitment date in
excess of the conversion rate) of the beneficial conversion feature of debentures and
related accruing interest is recorded as a discount to the related debt and an addition to
additional paid in capital. The discount is amortized over the remaining outstanding
period of related debt using the interest method. </FONT></P>


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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>As of December 31, 2009, we had f
convertible debentures outstanding totaling $127,000. Each of these debentures carries an
interest rate of 8% per annum payable at maturity. Two of these debentures matured on May
16, 2010 and July 7, 2010 and the other debenture in the face amount of $52,000 matured on
March 19, 2010. By their terms each debenture, and its accrued interest, is convertible
into restricted shares of our common stock. These debentures are convertible into a total
of 298,824 shares of our restricted common stock . On February 3, 2010 we entered into an
additional debenture totaling $10,000. This debenture matures on February 3, 2012 and
carries an interest rate of 10% per annum. It is convertible into 44,445 shares of our
restricted common stock. </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>As these debentures carry a
conversion rate that is less the than market rate the rules of beneficial conversion
apply. The difference between the conversion rate and the market rate is classified as a
discount on the debentures and accreted over the term of the debenture. The aggregate face
amount of the outstanding debentures is $137,000. On the balance sheet they have been
discounted by <I>$31,750 to $95,250. The discounted amount is accreted over the term of
the debenture or in its entirety if the debenture is converted during the term. During the
quarter ended March 31, 2010, $182,645 was accreted to financing costs.</I> </FONT></P>


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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>With the issuance of the Series D
Preferred Stock, the company calculated the beneficial conversion feature using the
intrinsic value method, however, due to the contingent convertibility feature, and with
the lack of available common shares to allow a conversion, pursuant to EITF 98-5 paragraph
13, the contingent beneficial conversion feature was measured using the commitment date
stock price but has not been recognized in earnings until the contingency is resolved. The
amount that will be recorded as a preferred dividend once the contingency has been
resolved will be $794,449. Pursuant to EITF 98-5 paragraph 8, any recorded discount
resulting from an allocation of proceeds to the beneficial conversion feature is analogous
to a dividend and should be recognized as a return to the preferred shareholders using the
effective yield method. </FONT></P>


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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2><B>Note G &#150; Unregistered sales

of equity securities (not previously reported on Forms 10K, 10Q or 8K).</B> </FONT></P>


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<P ALIGN="Center"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>F-9</FONT></P>

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<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>1)  </FONT></TD>
<TD WIDTH=90%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Convertible
Debentures </FONT></TD>
</TR>
</TABLE>
<BR>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>During the three month period ending
March 31, 2010, on February 3, 2010, we entered into a Convertible Debenture Agreement
and issued a Convertible Debenture totaling $10,000 to Richard Newberg. This debenture
carries an interest rate of 10% per annum payable at maturity and matures two years from
the date of the debenture.  The debenture, and its accrued interest, is convertible into
restricted shares of our common stock at any time by the holder of the debenture. If
converted into restricted common stock, the conversion shall be at $.225 per share. </FONT></P>


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<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>2)  </FONT></TD>
<TD WIDTH=90%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;Subsequent
Events  </FONT></TD>
</TR>
</TABLE>
<BR>

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<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=10%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>         a)  </FONT></TD>
<TD WIDTH=85%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;Unregistered
sales of equity securities and use of proceeds upon effective date of reverse split of
common                     stock.  </FONT></TD>
</TR>
</TABLE>
<BR>

<!-- MARKER FORMAT-SHEET="Para (List) Flush Lv 0- TNR" FSL="Workstation" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>On May 13,
2010, subsequent to the end of the period being reported, the Financial Industry
Regulatory Authority (&#147;FINRA&#148;) took the necessary actions, and made the
required notifications, to cause the reverse stock split discussed below in Part II, Item
5(3),  to be reflected in the trading markets. Upon the reverse split being effected,
every 500 shares of our issued and outstanding common stock was automatically combined
into one issued and outstanding share without any change in the par value of such shares.
On May 13, 2010, five of our debt holders elected to convert their promissory notes into
our restricted common stock; and on May 19, 2010, one of our Series D preferred
shareholders converted to our common stock. The details of these conversions are as
follows: </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>On May 13,
2010, we issued 647,200 shares of our restricted common stock to Miguel Simon Guardia in
exchange for a promissory note dated April 15, 2008, plus accrued interest, totaling
$64,720. The conversion was executed at $.10 per share. </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>On May 13,
2010, we issued 878,822 shares of our restricted common stock to Harlan McSpadden
DeLozier in exchange for a promissory note first dated February 6, 2007, plus accrued
interest, totaling $87,822. The conversion was executed at $.10 per share. </FONT></P>


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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>On May 13,
2010, we issued 574,230 shares of our restricted common stock to Tracy A. Madsen in
exchange for a promissory note dated February 6, 2007, plus accrued interest, totaling
$57,423. The conversion was executed at $.10 per share. </FONT></P>


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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>On May 13,
2010, we issued 151,970 shares of our restricted common stock to Sabrina Martinez in
exchange for a promissory note dated September 20, 2009, plus accrued interest, totaling
$15,197. The conversion was executed at $.10 per share. </FONT></P>


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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>On May 13,
2010, we issued 270,044 shares of our restricted common stock to VHB International, Inc.
in exchange for a promissory note dated April 14, 2008, plus accrued interest, totaling
$27,004. The conversion was executed at $.10 per share. </FONT></P>


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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>On May 19,
2010, we issued 75,000 shares of our restricted common stock to Meridian International
Holdings, S.A. in exchange for 15,000 shares of our Series D preferred stock with a
post-reverse split exchange rate of 5 common shares for every Series D preferred share.
The conversion was executed at $.20 per shares pursuant to the face conversion rate of
the Series D preferred share. </FONT></P>


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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>In every
issuance or sale described above we relied upon Sections 4(2) and 4(6) of the Securities
Act for the offer and sale. We believed that Sections 4(2) and 4(6) were available
because the offers and sales did not involve a public offering, there was no general
solicitation or general advertising involved in the offers or sales and the purchasers
were accredited investors. We placed restrictive legends on the certificates representing
these securities, if converted, stating that the securities are not registered under the
Securities Act and are subject to restrictions on their transferability and resale. </FONT></P>


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<P ALIGN="Center"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>F-10 </FONT></P>


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<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=10%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>         b)  </FONT></TD>
<TD WIDTH=85%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;Convertible
Debenture Subsequent to the End of the Period.  </FONT></TD>
</TR>
</TABLE>
<BR>

<!-- MARKER FORMAT-SHEET="Para (List) Flush Lv 0- TNR" FSL="Workstation" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>On May 13,
2010 we rolled over a Convertible Debenture Agreement that had come due and payable, and
issued a new Convertible Debentures that included the principal and interest from the
initial debenture totaling $56,484.07 to the Dewey L. Williams Profit Sharing Plan and
Trust. This debenture carries an interest rate of 10% per annum payable at maturity and
matures one year from the date of the debenture. The debenture, and its accrued interest,
is convertible into restricted shares of our common stock at any time by the holder of
the debenture. If converted into restricted common stock, the conversion shall be at one
half of the close of our share price on May 10, 2010, or $.10 per share. </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>In the sale
described above we relied upon Sections 4(2) and 4(6) of the Securities Act for the offer
and sale. We believed that Sections 4(2) and 4(6) were available because the offer and
sale did not involve a public offering, there was no general solicitation or general
advertising involved in the offers or sales and the purchasers were accredited investors.
We will place restrictive legends on the certificates representing these securities, if
converted, stating that the securities are not registered under the Securities Act and
are subject to restrictions on their transferability and resale. </FONT></P>








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<A NAME=ge_10qmar10noteh></A>
<H1 ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Note H &#150; Recent
accounting pronouncements </FONT></H1>


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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>In January 2010, the FASB issued
Accounting Standards Update 2010-02, Consolidation (Topic 810): Accounting and Reporting
for Decreases in Ownership of a Subsidiary. This amendment to Topic 810 clarifies, but
does not change, the scope of current US GAAP. It clarifies the decrease in ownership
provisions of Subtopic 810-10 and removes the potential conflict between guidance in that
Subtopic and asset derecognition and gain or loss recognition guidance that may exist in
other US GAAP. An entity will be required to follow the amended guidance beginning in the
period that it first adopts FAS 160 (now included in Subtopic 810-10). For those entities
that have already adopted FAS 160, the amendments are effective at the beginning of the
first interim or annual reporting period ending on or after December 15, 2009. The
amendments should be applied retrospectively to the first period that an entity adopted
FAS 160. The Company does not expect the provisions of ASU 2010-02 to have a material
effect on the financial position, results of operations or cash flows of the Company. </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>In January 2010, the FASB issued
Accounting Standards Update 2010-01, Equity (Topic 505): Accounting for Distributions to
Shareholders with Components of Stock and Cash (A Consensus of the FASB Emerging Issues
Task Force). This amendment to Topic 505 clarifies the stock portion of a distribution to
shareholders that allows them to elect to receive cash or stock with a limit on the amount
of cash that will be distributed is not a stock dividend for purposes of applying Topics
505 and 260. Effective for interim and annual periods ending on or after December 15,
2009, and would be applied on a retrospective basis. The Company does not expect the
provisions of ASU 2010-01 to have a material effect on the financial position, results of
operations or cash flows of the Company. </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>In October 2009, the FASB issued
Accounting Standards Update 2009-14, Software (Topic 985): Certain Revenue Arrangements
That Include Software Elements. This update changed the accounting model for revenue
arrangements that include both tangible products and software elements. Effective
prospectively for revenue arrangements entered into or materially modified in fiscal years
beginning on or after June 15, 2010. Early adoption is permitted. The Company does not
expect the provisions of ASU 2009-14 to have an effect on the financial position, results
of operations or cash flows of the Company. </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>In October 2009, the FASB issued
Accounting Standards Update 2009-13, Revenue Recognition (Topic 605): Multiple-Deliverable
Revenue Arrangements. This update addressed the accounting for multiple-deliverable
arrangements to enable vendors to account for products or services (deliverables)
separately rather than a combined unit and will be separated in more circumstances that
under existing US GAAP. This amendment has eliminated that residual method of allocation.
Effective prospectively for revenue arrangements entered into or materially modified in
fiscal years beginning on or after June 15, 2010. Early adoption is permitted. The Company
does not expect the provisions of ASU 2009-13 to have a material effect on the financial
position, results of operations or cash flows of the Company. </FONT></P>

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<P ALIGN="Center"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>F-11</FONT></P>

<!-- MARKER FORMAT-SHEET="Para Flush Lv 0-TNR" FSL="Workstation" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>In September 2009, the FASB issued
Accounting Standards Update 2009-12, Fair Value Measurements and Disclosures (Topic 820):
Investments in Certain Entities That Calculate Net Asset Value per Share (or Its
Equivalent). This update provides amendments to Topic 820 for the fair value measurement
of investments in certain entities that calculate net asset value per share (or its
equivalent). It is effective for interim and annual periods ending after December 15,
2009. Early application is permitted in financial statements for earlier interim and
annual periods that have not been issued. The Company does not expect the provisions of
ASU 2009-12 to have a material effect on the financial position, results of operations or
cash flows of the Company. </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>In July 2009, the FASB ratified the
consensus reached by EITF (Emerging Issues Task Force) issued EITF No. 09-1, (ASC Topic
470) &#147;Accounting for Own-Share Lending Arrangements in Contemplation of Convertible
Debt Issuance&#148; (&#147;EITF 09-1&#148;). The provisions of EITF 09-1, clarifies the
accounting treatment and disclosure of share-lending arrangements that are classified as
equity in the financial statements of the share lender. An example of a share-lending
arrangement is an agreement between the Company (share lender) and an investment bank
(share borrower) which allows the investment bank to use the loaned shares to enter into
equity derivative contracts with investors. EITF 09-1 is effective for fiscal years that
beginning on or after December 15, 2009 and requires retrospective application for all
arrangements outstanding as of the beginning of fiscal years beginning on or after
December 15,2009. Share-lending arrangements that have been terminated as a result of
counterparty default prior to December 15, 2009, but for which the entity has not reached
a final settlement as of December 15, 2009 are within the scope. Effective for
share-lending arrangements entered into on or after the beginning of the first reporting
period that begins on or after June 15, 2009. The Company does not expect the provisions
of EITF 09-1 to have a material effect on the financial position, results of operations or
cash flows of the Company. </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>In March 2008, the FASB issued FASB
ASC 815-10 (Prior authoritative literature: SFAS No. 161, <I>&#147;Disclosures about
Derivative Instruments and Hedging Activities</I>&#148;), which is effective January 1,
2009. FASB ASC 815-10 requires enhanced disclosures about derivative instruments and
hedging activities to allow for a better understanding of their effects on an
entity&#146;s financial position, financial performance, and cash flows. Among other
things, this standard requires disclosures of the fair values of derivative instruments
and associated gains and losses in a tabular formant. This standard is not currently
applicable to the Company since we do not have derivative instruments or engage in hedging
activity. </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>In May 2008, the FASB issued FASB ASC
944 (Prior authoritative literature: SFAS No. 163, <I>&#147;Accounting for Financial
Guarantee Insurance Contracts &#151; an interpretation of FASB Statement No. 60&#148;).
FASB ASC 944 </I>interprets Statement 60 and amends existing accounting pronouncements to
clarify their application to the financial guarantee insurance contracts included within
the scope of that Statement.&nbsp;This standard is effective for financial statements
issued for fiscal years beginning after December 15, 2008, and all interim periods within
those fiscal years.&nbsp; As such, the Company was required to adopt these provisions at
the beginning of the fiscal year ended December 31, 2008.&nbsp;The Company does not
believe this standard will have any impact on the financial statements. </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>In April, 2009, the FASB issued FASB
ASC 810-10-65 (Prior authoritative literature: SFAS No. 164, <I>&#147;Not-for-Profit
Entities: Mergers and Acquisitions&#148;)&nbsp;</I>which governs the information that a
not-for-profit entity should provide in its financial reports about a combination with one
or more other not-for-profit entities, businesses or nonprofit activities and sets out the
principles and requirements for how a not-for-profit entity should determine whether a
combination is in fact a merger or an acquisition. This standard is effective for mergers
occurring on or after Dec. 15, 2009 and for acquisitions where the acquisition date is on
or after the beginning of the first annual reporting period, beginning on or after Dec.
15, 2009. This standard does not apply to the Company since the Company is considered a
for-profit entity. </FONT></P>

<!-- MARKER FORMAT-SHEET="Para Flush Lv 0-TNR" FSL="Workstation" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>In May 2009, FASB issued FASB ASC
855-10 (Prior authoritative literature:&nbsp;&nbsp;SFAS No. 165, <I>&#147;Subsequent
Events&#148;).</I> FASB ASC 855-10 establishes principles and requirements for the
reporting of events or transactions that occur after the balance sheet date, but before
financial statements are issued or are available to be issued. FASB ASC 855-10 is
effective for financial statements issued for fiscal years and interim periods ending
after June 15, 2009. As such, the Company adopted these provisions at the beginning of the
interim period ended June 30, 2009. Adoption of FASB ASC 855-10 did not have a material
effect on our financial statements. </FONT></P>

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<P ALIGN="Center"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>F-12 </FONT></P>

<!-- MARKER FORMAT-SHEET="Para Flush Lv 0-TNR" FSL="Workstation" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>In June&nbsp;2009, the FASB ASC
860-10 (Prior authoritative literature: issued SFAS No.&nbsp;166, &#147;<I>Accounting for
Transfers of Financial Assets, an Amendment of FASB Statement No.&nbsp;140</I>&#148;),
which eliminates the concept of a qualifying special-purpose entity (&#147;QSPE&#148;),
clarifies and amends the de-recognition criteria for a transfer to be accounted for as a
sale, amends and clarifies the unit of account eligible for sale accounting and requires
that a transferor initially measure at fair value and recognize all assets obtained and
liabilities incurred as a result of a transfer of an entire financial asset or group of
financial assets accounted for as a sale. This standard is effective for fiscal years
beginning after November&nbsp;15, 2009. The Company is currently evaluating the potential
impact of this standard on its financial statements, but does not expect it to have a
material effect. </FONT></P>

<!-- MARKER FORMAT-SHEET="Para Flush Lv 0-TNR" FSL="Workstation" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>In June&nbsp;2009, the FASB issued
FASB ASC 810-10-65 (Prior authoritative literature:&nbsp;&nbsp;SFAS No.&nbsp;167,
<I>&#147;Amendments to FASB Interpretation No. 46(R)</I>&#148;) which amends the
consolidation guidance applicable to a variable interest entity (&#147;VIE&#148;). This
standard also amends the guidance governing the determination of whether an enterprise is
the primary beneficiary of a VIE, and is therefore required to consolidate an entity, by
requiring a qualitative analysis rather than a quantitative analysis. Previously, the
standard required reconsideration of whether an enterprise was the primary beneficiary of
a VIE only when specific events had occurred. This standard is effective for fiscal years
beginning after November&nbsp;15, 2009, and for interim periods within those fiscal years.
Early adoption is prohibited. The Company is currently evaluating the potential impact of
the adoption of this standard on its financial statements, but does not expect it to have
a material effect. </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>TM (Codification) as the source of
authoritative accounting principles recognized by the FASB to be applied by
nongovernmental entities in the preparation of financial statements in conformity with
GAAP. FASB ASC 105-10 is effective for financial statements issued for fiscal years and
interim periods ending after September 15, 2009. As such, the Company is required to adopt
these provisions at the beginning of the fiscal year ending December 31,
2009.&nbsp;&nbsp;Adoption of FASB ASC 105-10 did not have a material effect on the
Company&#146;s financial statements. </FONT></P>


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<H1 ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Note I &#150; Stock
based compensation </FONT></H1>


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     <P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>(1)&nbsp;&nbsp;&nbsp;&nbsp;
          As of January 1, 2006, we elected to measure and record compensation cost
          relative to stock option costs in accordance with FASB ASC 718,
          <I>&#147;Accounting For Stock Based Compensation,</I>&#148; (prior authoritative
          literature: SFAS 123R) which requires the company to use the Black-Scholes
          pricing model to estimate the fair value of the options at the grant date. </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>As part of employment agreement with
Blane Wilson, our Chief Operating Officer, dated April 18, 2008 we agreed to grant Mr.
Wilson the following stock options: </FONT></P>

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     <TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0>
          <TR VALIGN=TOP>
          <TD ALIGN=RIGHT WIDTH=20%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>(a) </FONT></TD>
          <TD ALIGN=LEFT WIDTH=80%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

           Signing option. Mr. Wilson was granted a signing bonus in the form of an option
          on the date of the execution of his employment agreement. Subject to certain
          exceptions, the option is exercisable for a term of three years. Giving effect
          to the 1-for-500 combination of our common stock (see Note I(3) &#150;
          Subsequent Events &#150; Approval of Reverse Stock Split), the option has an
          exercise price of $3.59 and is exercisable to acquire 27,855 shares of our
          common stock . This option vested immediately upon grant. </FONT></TD>
          </TR>
          </TABLE>
          <BR>

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     <TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0>
          <TR VALIGN=TOP>
          <TD ALIGN=RIGHT WIDTH=20%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>(b) </FONT></TD>
          <TD ALIGN=LEFT WIDTH=80%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

           Quarterly option bonus.<B> </B>We agreed to grant Mr. Wilson a quarterly bonus
          in the form of an option at each 90-day that he remains a Company employee.
          Subject to certain exceptions, each quarterly option has a three-year term, and
          permits Mr. Wilson may purchase that number of shares of Company common stock
          that could be purchased with $25,000 in cash (based on then current market
          conditions) at an exercise price equal to the average of the closing sales
          prices of our common stock for the 10 trading days prior to the date of grant.
          We expensed $87,800 during 2008 and $46,380 in 2009 in connection with the grant
          of these options. All of the information in the below table regarding the option
          prices and quantities give effect to the 1-for-500 combination of our common
          stock (see Note I(3) &#150; Subsequent Events &#150; Approval of Reverse Stock
          Split). </FONT></TD>
          </TR>
          </TABLE>
          <BR>

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<P ALIGN="Center"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>F-13</FONT></P>



<TABLE CELLPADDING="0" CELLSPACING="0" BORDER="1" WIDTH="600" ALIGN="Center">
<TR VALIGN=Bottom>
     <TH><FONT FACE="Times New Roman" SIZE=2></FONT></TH>
     <TH><FONT FACE="Times New Roman" SIZE=2></FONT></TH>
     <TH><FONT FACE="Times New Roman" SIZE=2></FONT></TH>
     <TH><FONT FACE="Times New Roman" SIZE=2></FONT></TH>
     <TH><FONT FACE="Times New Roman" SIZE=2></FONT></TH></TR>
<TR VALIGN=Bottom>
     <TD WIDTH=23% ALIGN=LEFT STYLE="border-bottom:solid 1px #000000;"><FONT FACE="Times New Roman" SIZE=2><B>Date</B></FONT></TD>
     <TD WIDTH=18% ALIGN=RIGHT STYLE="border-bottom:solid 1px #000000;"><FONT FACE="Times New Roman" SIZE=2><B>Amount</B>&nbsp;</FONT></TD>
     <TD WIDTH=25% ALIGN=RIGHT STYLE="border-bottom:solid 1px #000000;"><FONT FACE="Times New Roman" SIZE=2><B>Option Price</B>&nbsp;</FONT></TD>
     <TD WIDTH=18% ALIGN=RIGHT STYLE="border-bottom:solid 1px #000000;"><FONT FACE="Times New Roman" SIZE=2><B>Quantity</B>&nbsp;</FONT></TD>
     <TD WIDTH=16% ALIGN=RIGHT STYLE="border-bottom:solid 1px #000000;"><FONT FACE="Times New Roman" SIZE=2><B>Expiration</B></FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>04/18/2008</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=2>$100,000&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=2>$3.59</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=2>27,855&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=2>4/18/2011</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>07/17/2008</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=2>25,000&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=2>3.36</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=2>7,440&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=2>7/172011</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>10/15/08</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=2>25,000&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=2>.1.63&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=2>15,337&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=2>10/15/2011</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>01/13/09</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=2>25,000&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=2>.82</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=2>30,303&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=2>1/13/2012</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>04/13/09</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=2>25,000&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=2>.78</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=2>32,051&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=2>4/13/2012</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>07/13/09</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=2>25,000&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=2>.48</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=2>52,083&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=2>7/13/2012</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>10/13/09</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=2>25,000&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=2>.64</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=2>38,760&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=2>10/13/2012</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT STYLE="border-bottom:solid 1px #000000;"><FONT FACE="Times New Roman" SIZE=2>01/13/2010</FONT></TD>
     <TD ALIGN=RIGHT STYLE="border-bottom:solid 1px #000000;"><FONT FACE="Times New Roman" SIZE=2>25,000&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT STYLE="border-bottom:solid 1px #000000;"><FONT FACE="Times New Roman" SIZE=2>.66</FONT></TD>
     <TD ALIGN=RIGHT STYLE="border-bottom:solid 1px #000000;"><FONT FACE="Times New Roman" SIZE=2>37,878&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT STYLE="border-bottom:solid 1px #000000;"><FONT FACE="Times New Roman" SIZE=2>1/13/2013</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT STYLE="border-bottom:solid 1px #000000;"><FONT FACE="Times New Roman" SIZE=2>Total</FONT></TD>
     <TD ALIGN=RIGHT STYLE="border-bottom:solid 1px #000000;"><FONT FACE="Times New Roman" SIZE=2>$275,000&nbsp;</FONT></TD>
<TD ALIGN=RIGHT STYLE="border-bottom:solid 1px #000000;"><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT STYLE="border-bottom:solid 1px #000000;"><FONT FACE="Times New Roman" SIZE=2>241,707</FONT></TD>
<TD ALIGN=RIGHT STYLE="border-bottom:solid 1px #000000;"><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD></TR>
</TABLE>


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     <P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>(2)&nbsp;&nbsp;&nbsp;&nbsp;
          On October 7, 2009 our Board of Directors approved the Golden Eagle
          International, Inc. 2009 Revised Equity Incentive Plan (the &#147;Plan&#148;). The Plan
          is intended to provide incentives to officers, employees and other persons,
          including consultants and advisers, who contribute to our success by offering
          them the opportunity to acquire an ownership interest in it or increase their
          ownership interest. The Board of Directors believes that this also will help to
          align the interests of our management and employees with the interests of its
          shareholders. </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>The Plan provides for a maximum of
1,500,000 post reverse split shares of common stock to be reserved to be issued upon the
exercise of options (&#147;Options&#148;) or the grant of restricted stock awards
(&#147;Bonuses&#148;). Adoption by the Board of Directors is contingent upon obtaining
shareholder approval by October 7, 2010. The Plan includes two types of Options. Options
intended to qualify as incentive stock options under Section 422 of the Internal Revenue
Code of 1986, as amended (the &#147;Code&#148;) are referred to as &#147;Incentive
Options.&#148; Options, which are not intended to qualify as Incentive Options are
referred to as &#147;Non-Qualified Options.&#148; Bonuses, which may also be granted under
the Plan, are the outright issuance of shares of Common Stock. </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>On March 23, 2010 we received shareholder approval
of the Plan. </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>The Plan is administered by the Board
of Directors since we have not appointed a Compensation Committee. In addition to
determining who will be granted Options or Bonuses, the Committee (or the Board in the
absence of the Committee) has the authority and discretion to determine when Options and
Bonuses will be granted and the number of Options and Bonuses to be granted. The Board
(or, if appointed, the Committee) also may determine a vesting and/or forfeiture schedule
for Bonuses and/or Options granted, the time or times when each Option becomes
exercisable, the duration of the exercise period for Options and the form or forms of the
agreements, certificates or other instruments evidencing grants made under the Plan. The
Board (or Committee) may determine the purchase price of the shares of common stock
covered by each Option and determine the Fair Market Value per share. The Board (or
Committee) also may impose additional conditions or restrictions not inconsistent with the
provisions of the Plan. The Board (or Committee) may adopt, amend and rescind such rules
and regulations as in its opinion may be advisable for the administration of the Plan. If
the number of shares reserved under the Plan is increased, shareholder approval must be
obtained on the amendment to increase the shares reserved. </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>The Board (or Committee) also has the
power to interpret the Plan and the provisions in the instruments evidencing grants made
under it, and is empowered to make all other determinations deemed necessary or advisable
for the administration of it. </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>The grant of Options or Bonuses under
the Plan does not confer any rights with respect to continuation of employment, and does
not interfere with the right of the recipient or the Company to terminate the
recipient&#146;s employment, although a specific grant of Options or Bonuses may provide
that termination of employment or cessation of service as an employee, officer, or
consultant may result in forfeiture or cancellation of all or a portion of the Bonuses or
Options. </FONT></P>

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<P ALIGN="Center"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>F-14 </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>In the event a change, such as a
stock split, is made in our capitalization which results in an exchange or other
adjustment of each share of Common Stock for or into a greater or lesser number of shares,
appropriate adjustments will be made to unvested bonuses and in the exercise price and in
the number of shares subject to each outstanding Option. The Board (or, if appointed, the
Committee) also may make provisions for adjusting the number of bonuses or underlying
outstanding Options in the event we effect one or more reorganizations, recapitalizations,
rights offerings, or other increases or reductions of shares of our outstanding Common
Stock. Options and Bonuses may provide that in the event of the dissolution or liquidation
of the Company, a corporate separation or division or the merger or consolidation of the
Company, the holder may exercise the Option on such terms as it may have been exercised
immediately prior to such dissolution, corporate separation or division or merger or
consolidation; or in the alternative, the Board (or, if appointed, the Committee) may
provide that each Option granted under the Plan shall terminate as of a date fixed by the
Committee. </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>The exercise price of any Option
granted under the Plan must be no less than 100% of the &#147;fair market value&#148; of
our Common Stock on the date of grant. Any Incentive Stock Option granted under the Plan
to a person owning more than 10% of the total combined voting power of the Common Stock
shall be at a price of no less than 110% of the Fair Market Value per share on the date of
grant. </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>The exercise price of an Option may
be paid in cash, in shares of our Common Stock or other property having a fair market
value equal to the exercise price of the Option, or in a combination of cash, shares and
property. Unless otherwise stated by Board (or Committee) resolution, the Options can also
be exercised pursuant to &#147;net exercise&#148; procedures which permit the fair market
value of the Options (equal to the value of the underlying shares less the exercise price)
to be used to pay the exercise price. The Board (or Committee) shall determine whether or
not property other than cash or Common Stock or a net exercise may be used to purchase the
shares underlying an Option and shall determine the value of the property received. The
Plan provides that, unless otherwise provided by the Board (or the Committee), Options
granted under the Plan survive a Change of Control (as that term is defined in the Plan)
and for 18 months following a Change of Control if the holder is terminated as an employee
of the Company without cause following a Change of Control </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>At the time of adoption of the Plan,
the Board also granted certain options to a number of officers and key employees. The
Options were granted subject to shareholder approval, and if the shareholders do not
approve the Plan by October 7, 2010, the options granted to the officers and key employees
will be lost. The shareholders approved the Plan on March 23, 2010. The Options
granted have an exercise period of three years from the date of grant (that is, through
March 26, 2012) at an exercise price of $.55 post reverse split per share (the average of
the closing price for the 10 trading days prior to October 7, 2009, plus an additional 25%
above that average price). The Board considered several factors in granting the options to
our executives and key employees such as length of service; sacrifices made during the
period of service, such as foregoing salary, personal operating loans made to us to allow
us to continue in operation, voluntary reductions in salary, forgiveness of significant
salary arrearages for the benefit of the Company, etc.; the past and ongoing contribution
made to maintaining the Company in operation despite significant challenges, and to its
recent successes in opening potential new avenues for progress. The following is a list of
the options granted executive officers under the Plan: </FONT></P>



<TABLE CELLPADDING="0" CELLSPACING="0" BORDER="1" WIDTH="600" ALIGN="Center">
<TR VALIGN=Bottom>
     <TH><FONT FACE="Times New Roman" SIZE=2></FONT></TH>
     <TH><FONT FACE="Times New Roman" SIZE=2></FONT></TH>
     <TH><FONT FACE="Times New Roman" SIZE=2></FONT></TH></TR>
<TR VALIGN=Bottom>
     <TD WIDTH=80% ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>Terry C. Turner, President, Chief Operating Officer and <BR>Chairman of the Board of Directors</FONT></TD>
     <TD WIDTH=20% ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=2>400,000&nbsp;</FONT></TD>
     </TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>Harlan (Mac) DeLozier, Vice President for Bolivian Operations and Director</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=2>200,000&nbsp;</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>Tracy A. Madsen, Vice President for U.S. Operations, Chief Financial Officer, <BR>Corporate Secretary and Treasurer</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=2>150,000&nbsp;</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2></FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>Alvaro Riveros, Director</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=2>20,000&nbsp;</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>Blane W. Wilson, Chief Operating Officer</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=2>160,000&nbsp;</FONT></TD></TR>
</TABLE>


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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Options to acquire 36,500,000 shares
were granted on the same terms to persons who are neither executive officers nor directors
of the Company. The Plan will be presented in more detail in a Proxy Statement when the
shareholders&#146; consideration and approval for the Plan is sought at a future date. </FONT></P>



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<P ALIGN="Center"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>F-15 </FONT></P>


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<P ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2><B>Note
J &#150; Legal action</B></FONT></P>






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<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0>
<TR VALIGN=TOP>
<TD ALIGN=RIGHT WIDTH=5%></TD>
<TD WIDTH=95%><P ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;1.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>  <I>GEII v.Queenstake
Resources USA, Inc., Yukon-Nevada Gold Corp., et al.</I></U>  On June 10, 2009, we received
a notice (the &#147;Notice&#148;) from Queenstake Resources USA, Inc. (&#147;Queenstake
USA&#148;), the wholly owned subsidiary of Yukon-Nevada Gold Corp., (&#147;YNG&#148;),
advising us that Queenstake USA allegedly terminated the agreement between Golden Eagle
and Queenstake USA regarding the operation of the Jerritt Canyon Mill. The Notice

provided that Queenstake USA believed that the termination was effective immediately.  </FONT></P></TD>

</TR>
</TABLE>
<BR>


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<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=5%>&nbsp;</TD>
<TD WIDTH=95%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
Also
on June 10, 2009, Queenstake USA filed a complaint against us in the Fourth Judicial
District Court of the State of Nevada for Elko County (<I>Queenstake </I> <I>Resources
USA, </I> <I>Inc.(Plaintiff) v. </I> <I>Golden Eagle </I> <I>International, Inc </I>
<I>(Defendant).; Golden </I> <I>Eagle International, </I> <I>Inc. (Counterclaimant) </I>
<I>v. Queenstake Resources </I> <I>USA, Inc. (Counter </I> <I>Defendant); Golden </I>
<I>Eagle International, </I> <I>Inc. (Third Party </I> <I>Plaintiff) v. Francois </I>
<I>Marland, John Does </I> <I>1-10, Queenstake </I> <I>Resources, Ltd. and </I>
<I>Yukon-Nevada Gold Corp. </I> <I>(Third-Party </I> <I>Defendants), </I>case no.
CVC-C-09-544 Dept 2). In the complaint, Queenstake USA alleges that Golden Eagle breached
an agreement between the parties with respect to the operation of the Jerritt Canyon Mill;
breached an implied covenant of good faith and fair dealing; and committed negligence in
the operation of the Jerritt Canyon Mill. Further, in the complaint Queenstake USA sought
a declaratory judgment that Golden Eagle is obligated to leave the Jerritt Canyon Mill
site and cease operating the mill. </FONT></TD>
</TR>
</TABLE>
<BR>

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<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=5%>&nbsp;</TD>
<TD WIDTH=95%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
We
believed then, and continue to believe, that Queenstake USA&#146;s allegations are false
and wholly without merit. On July 9, 2009, we filed an answer, counterclaim and
third-party complaints. Our answer specifically denies those allegations made in the
complaint filed (but never served) by Queenstake USA on June 10, 2009. Our counterclaim
alleges that by a pattern of fraud, misrepresentation, material omissions and deceptive
business practices Queenstake USA induced Golden Eagle to enter into a mill operating
agreement on October 14, 2008, which called for Golden Eagle to operate the Jerritt Canyon
Mill for a 5-year period and provide extensive services to prepare the mill for operations
and bring it into environmental compliance. The counterclaim further alleges that
Queenstake USA continued between October 2008 and June 2009, through fraudulent and
deceptive means, to induce Golden Eagle to continue to provide its administrative services
and engage employees, providers, suppliers and third-party contractors, which resulted in
a liability for costs incurred by Golden Eagle, and administrative fees owed to Golden
Eagle, in excess of $2.23 million. Our allegations include that Yukon-Nevada and one of
its significant investors deemed Golden Eagle&#146;s contract &#147;too lucrative&#148;
and then tortiously interfered with the mill operating agreement by compelling Queenstake
USA to breach its agreement and covenant of good faith and fair dealing. We allege that
this breach caused Golden Eagle to lose the &#147;benefit of the bargain,&#148; or lost
profit from the agreement, in excess of $40 million based on Queenstake USA&#146;s own
calculations and representations to Golden Eagle and the Nevada Division of Environmental
Protection. </FONT></TD>
</TR>
</TABLE>
<BR>

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<TR VALIGN=TOP>
<TD WIDTH=5%>&nbsp;</TD>
<TD WIDTH=95%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
We
also allege in our counterclaim that the mill operating agreement had all of the
characteristics of a lease, putting Golden Eagle in possession of the mill property and
its full use; ensuring Golden Eagle&#146;s quiet enjoyment of the premises; requiring
Golden Eagle to maintain and repair the property; granting Golden Eagle access to the
&#147;common areas&#148; on the mill complex, etc. As a result of these lease
characteristics, we sought statutory relief under Nevada&#146;s Forcible Entry and
Detainer statutes and sought an order of the court based on those statutes putting Golden
Eagle back in immediate possession of the mill property. The court denied our motion for
and Writ of Restitution putting us back in possession of the property. We are continuing
to press our other allegations in the lawsuit. </FONT></TD>
</TR>
</TABLE>
<BR>

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<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=5%>&nbsp;</TD>
<TD WIDTH=95%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
We
further allege in our counterclaim and third-party complaints that Queenstake USA,
Yukon-Nevada (Yukon USA&#146;s parent corporation) and a significant Queenstake USA
investor have caused us irreparable harm. As a result, we ask the court for a declaratory
judgment and a Writ of Mandamus that order that Golden Eagle be allowed full possession of
the mill property so that it may complete its contract term of 5 years. </FONT></TD>
</TR>
</TABLE>
<BR>

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<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=5%>&nbsp;</TD>
<TD WIDTH=95%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
We
claim in our counterclaim and third-party complaints that Queenstake USA, Yukon-Nevada and
a significant Queenstake USA investor have committed acts of oppression, fraud or malice,
express or implied, and that Golden Eagle is entitled under Nevada law to recover punitive
damages, which are calculated as three times the amount of compensatory damages. </FONT></TD>
</TR>
</TABLE>
<BR>



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<P ALIGN="Center"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>F-16 </FONT></P>


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<TR VALIGN=TOP>
<TD WIDTH=5%>&nbsp;</TD>
<TD WIDTH=95%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
Finally,
we allege in our counterclaim and third-party complaints that Queenstake Canada
unconditionally guaranteed the agreement between Golden Eagle and Queenstake USA, and
furthermore, unconditionally guaranteed the covenant of good faith and fair dealing
between the parties. As a result, Queenstake Canada was also named as a Third-Party
Defendant sharing joint liability with its wholly owned subsidiary, Queenstake USA. </FONT></TD>
</TR>
</TABLE>
<BR>

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<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=5%>&nbsp;</TD>
<TD WIDTH=95%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
On
July 15, 2009 we recorded a notice of mechanics/materialmen&#146;s lien and a notice of
mill lien (the &#147;Liens&#148;) against the Jerritt Canyon Mill, in the total amount of
$1,307,813 in the official records of the Elko County Recorder, State of Nevada. Notice of
the liens was served on Queenstake Resources, USA and Yukon-Nevada Gold Corp. pursuant to
Nevada State law by certified or registered mail on July 15 and 16, 2009. </FONT></TD>
</TR>
</TABLE>
<BR>

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<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=5%>&nbsp;</TD>
<TD WIDTH=95%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
On
July 17, 2009 we filed an amended answer, counterclaim and third-party complaints seeking
to foreclose on the Liens described above, as well as maintaining the causes of action
originally set out in the pleading filed on July 9, 2009 in the matter of <I>Queenstake
</I> <I>Resources USA, </I> <I>Inc.(Plaintiff) v. </I> <I>Golden Eagle </I>
<I>International, Inc </I> <I>(Defendant).; Golden </I> <I>Eagle International, </I>
<I>Inc. (Counterclaimant) </I> <I>v. Queenstake Resources </I> <I>USA, Inc. (Counter </I>
<I>Defendant); Golden </I> <I>Eagle International, </I> <I>Inc. (Third Party </I>
<I>Plaintiff) v. Francois </I> <I>Marland, John Does </I> <I>1-10, Queenstake </I>
<I>Resources, Ltd. and </I> <I>Yukon-Nevada Gold Corp. </I> <I>(Third-Party </I>
Defendants), CV-C-09-544, in the Fourth Judicial District Court for Nevada, In and For the
County of Elko. </FONT></TD>
</TR>
</TABLE>
<BR>


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<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0>
<TR VALIGN=TOP>
<TD ALIGN=RIGHT WIDTH=5%></TD>
<TD WIDTH=95%><P ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;2.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I><U>Rentals
Northwest, Inc. v. Golden Eagle International,
Inc., Queenstake Resources USA, Inc.,
Yukon-Nevada Gold Corp., et. al.</U></I> On December 31, 2009
United Rentals Northwest, Inc. filed a complaint against us, Yukon-Nevada Gold
Corporation and Queenstake Resources USA, Inc. in the Fourth District Court in Elko,
Nevada. In its complaint United Rentals is seeking payment for construction rental
equipment supplied to us, Yukon-Nevada Gold Corporation and Queenstake Resources USA in
the amount of $52,845 plus attorney&#146;s fees. A notice and claim of lien was recorded
on the Jerritt Canyon mill on October 6, 2009.  </FONT></P></TD>
</TR>
</TABLE>
<BR>

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<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=5%>&nbsp;</TD>
<TD WIDTH=95%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
On
February 16, 2010, we filed an answer to this complaint in the Fourth District Judicial
Court in Elko, Nevada. In our answer we allege that we had contracted with Queenstake
Resources USA, Inc. and that Queenstake/YNG are responsible for payments to United Rentals
Northwest, Inc. We believe that this matter has been settled by YNG and United Rentals,
but have not formally been informed of the outcome and the Plaintiff&#146;s complaint has
not yet been dismissed. </FONT></TD>
</TR>
</TABLE>
<BR>

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          <TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0>
               <TR VALIGN=TOP>
               <TD ALIGN=RIGHT WIDTH=5%></TD>
               <TD WIDTH=95%><P ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;3.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
               <I><U>Bright v. Golden Eagle </U></I><U></U> <I><U>International, Inc.,
               </U></I><U></U> <I><U>Rocky Mountain Hospital </U></I><U></U> <I><U>and Medical
               Service, </U></I><U></U> <I><U>Anthem Blue Cross and </U></I><U></U> <I><U>Blue
               Shield, et. al. </U></I><U></U> On February 26, 2010, we were served with a
               complaint in the case of <I>Bright v. Golden </I> <I>Eagle, et al., </I>filed in
               the Fourth District Court of Elko County that alleges that we breached our
               employment agreement to Mr. Bright, who was our employee until June 10, 2010, by
               not maintaining his health insurance through the period in which his wife gave
               birth to the Bright&#146;s child in the Rocky Mountain Hospital. The complaint
               alleges further that all of the defendants breached their various contractual
               obligations and duties to the Brights, were negligent in the failure to pay the
               Brights&#146; medical bills associated with the delivery of their child, and
               negligently and intentionally inflicted emotional distress on the Brights.
               Anthem Blue Cross and Blue Shield has sought to have this matter removed to the
               Federal District Court in Reno, Nevada. The case is ongoing and we have, and
               expect to continue to, defend this matter. </FONT></P></TD>
               </TR>
               </TABLE>
               <BR>



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<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0>
<TR VALIGN=TOP>
<TD ALIGN=RIGHT WIDTH=5%></TD>
<TD WIDTH=95%><P ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;4.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I><U>Old
Dominion Freight Line, Inc. v. Golden eagle International, Inc.</U></I>  On April 15, 2010, Old Dominion Freight Line, Inc. (&#147;Old Dominion&#148;) filed a complaint in the Third District Court of Utah against us to collect
$3,327.89 for freight charges on deliveries that Old Dominion made to the Jerritt Canyon mill north of
Elko, Nevada. We filed an answer to Old Dominion&#146;s complaint alleging mistake on Old Dominion&#146;s part as
to various specific allegations that it made in its complaint, and further asserting affirmative
defenses that the matter should have been brought in Elko County, Nevada, were all of the acts
complained of occurred and the location of all of the witnesses to the event. Moreover, we alleged that
Old Dominion failed to join two indispensable parties, Queenstake Resources USA, Inc. and Yukon-Nevada
Gold Corp., the real parties in interest and the ultimate beneficiaries of any consideration or service
given by Old Dominion. The case is ongoing and we have, and expect to continue to, defend this matter.
 </FONT></P></TD>
</TR>
</TABLE>
<BR>

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<P ALIGN="Center"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>F-17 </FONT></P>

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<H1 ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Note K &#150; Transfer
of control of Bolivian subsidiary  </FONT></H1>



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<TR VALIGN=TOP>
<TD WIDTH=5%>&nbsp;</TD>
<TD WIDTH=95%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
Effective
March 10, 2010, we transferred control of our Bolivian operations and assets to an
unaffiliated Swiss corporation by granting that Swiss corporation a power of attorney
although we have not yet transferred ownership of those assets. The Swiss corporation has
paid $112,000 to the Bolivian authorities as claims fees to maintain our concessions in
eastern Bolivia. The Swiss corporation has also paid us $50,000, and has further paid
approximately $53,000 (out of its obligation of $100,000) to satisfy certain of our
obligations in Bolivia.  </FONT></TD>
</TR>
</TABLE>
<BR>

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<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=5%>&nbsp;</TD>
<TD WIDTH=95%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
Upon
transfer of ownership of the properties to the Swiss corporation which is expected to
occur in the second quarter of 2010 (if it should occur, of which there can be no
assurance), the Swiss corporation is required to pay an additional $100,000 of our
obligations to Bolivian creditors (for a total of $200,000); to assume certain Golden
Eagle obligations in Bolivia in an estimated amount of $170,000; and to pay Golden Eagle a
3% net smelter return on all minerals produced from the properties of up to $3 million.
The net smelter return will be on a quarterly basis if and when mineral production is
achieved from the mining concessions owned by the Bolivian subsidiary. The sale of
Bolivian operations occurred during February 2010. As the sale price designated a value of
our Bolivian assets, we impaired our assets to the level of consideration to be received
for the sale which is $200,000 to be paid in Bolivia, $50,000 paid in the United States
and the assumption of $143,000 in US liabilities. The result was an impairment expense of
$1,196,070 on the December 31, 2009 financial statements. </FONT></TD>
</TR>
</TABLE>
<BR>

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<TD WIDTH=5%>&nbsp;</TD>
<TD WIDTH=95%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
We
cannot offer any assurance that the Swiss corporation will fulfill its remaining payment
obligations to us with respect to our Bolivian assets and operations. If we are unable to
complete the sale of these assets and operations we will continue to hold them and explore
other alternatives with respect them. However, if we are unable to complete the sale of
these assets during 2010 we do not expect to engage in active exploration or mining
operations in Bolivia and it is likely that the concessions will expire in March 2011 as
we do not intend to pay the 2011 claims fees.  </FONT></TD>
</TR>
</TABLE>
<BR>

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<H1 ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Note L &#150; Approval
of reverse stock split </FONT></H1>

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<TD WIDTH=5%>&nbsp;</TD>
<TD WIDTH=95%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
On March 23, 2010 our shareholders approved an amendment to our Articles of Incorporation to effect a
1-for-500 reverse stock split.  Since that date we have taken steps to effect the reverse stock split,
including filing an amendment to our Articles of Incorporation (which amendment became effective under
Colorado law on April 28, 2010) and notifying the Financial Industry Regulatory Authority (&#147;FINRA&#148;) of
the reverse split  On May 13, 2010, subsequent to the end of the period being reported, FINRA took the
necessary actions, and made the required notifications, to cause the reverse stock split to be reflected
in the trading markets. Upon the reverse split being effected every 500 shares of our issued and
outstanding common stock was automatically combined into one issued and outstanding share without any
change in the par value of such shares.  No fractional shares are being issued in connection with the
reverse stock split.  Shareholders who were entitled to a fractional share are entitled to receive a
whole share.  The reverse split affected all of the holders of our common stock uniformly and did not
affect any shareholder&#146;s percentage of ownership interest, except to the extent that the reverse split
resulted in any holder being granted a whole share for any fractional share that resulted from the
reverse split.  The number of common shares into which each of our outstanding series of Preferred Stock
may be convertible into, as well as the shares of common stock underlying options, warrants and
convertible debentures was proportionately reduced and the exercise prices of any warrants or options,
and the conversion prices of any convertible debentures, was proportionately increased by the reverse
stock split.
 </FONT></TD>
</TR>
</TABLE>
<BR>

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<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=5%>&nbsp;</TD>
<TD WIDTH=95%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
Following the reverse stock split, there will remain 2,000,000,000 shares of common stock authorized,
and 10,000,000 shares of preferred stock authorized.  The preferred stock outstanding will remain
outstanding, but the number of shares of common stock into which the various series of preferred stock
outstanding are convertible were proportionally adjusted.  The convertible debentures, convertible
notes, stock payable, and stock options will also remain outstanding, but the number of shares of common
stock issuable upon conversion or exercise will also be proportionally reduced.  The following table
only sets forth approximate numbers because the rounding up of fractional shares will occur on a
shareholder-by-shareholder basis.
 </FONT></TD>
</TR>
</TABLE>
<BR>

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<P ALIGN="Center"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>F-18 </FONT></P>

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<H1 ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Note M &#150; Turner and
Madsen Employment Agreements </FONT></H1>



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<TD WIDTH=5%>&nbsp;</TD>
<TD WIDTH=95%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
On
October 7, 2009, we entered into employment agreements with (a) Terry Turner, our Chief
Executive Officer, President and Chairman (the &#147;Turner Agreement&#148;); and (b)
Tracy Madsen, our Chief Financial Officer and Vice President (the &#147;Madsen
Agreement&#148;). Both of these agreements were contingent on receiving shareholder
approval. On March 23, 2010 our shareholders approved the terms of both the Turner
Agreement and the Madsen Agreement, and each became effective and binding on that date. </FONT></TD>
</TR>
</TABLE>
<BR>

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<H1 ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Note N &#150; Blane
Wilson appointed Executive Mining Advisor for Klondex Mines Ltd. </FONT></H1>



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<TD WIDTH=5%>&nbsp;</TD>
<TD WIDTH=95%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
In
February 2010 our Chief Operating Officer Blane Wilson was appointed as Executive Mining
Advisor, Nevada Operations, by Klondex Mines Ltd. (&#147;KDX&#148;). In that capacity Mr.
Wilson will oversee KDX&#146;s underground mining program at its Fire Creek high-grade
gold deposit. However, Mr. Wilson will continue to serve as Golden Eagle&#146;s COO,
pursuant to his existing employment agreement with his primary focus on development
efforts for the Company&#146;s Gold Bar Mill located in Nevada. </FONT></TD>
</TR>
</TABLE>
<BR>

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<P ALIGN="Center"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>F-19 </FONT></P>


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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2><A HREF="#ge_10qmar10-tableof">Back to
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end
</TEXT>
</DOCUMENT>
</SUBMISSION>
