FORM 10Q



                       SECURITIES AND EXCHANGE COMMISSION
                              Washington, DC 20549





[X]  QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE
     ACT OF 1934 FOR THE QUARTER ENDED August 31, 1996

                                       OR


[ ]  TRANSITION  REPORT  PURSUANT  TO SECTION  13 OR 15(d) OF THE  SECURITIES
     EXCHANGE ACT OF 1934.


Commission file number 0-12132

                              SILVERADO MINES LTD.
--------------------------------------------------------------------------------
             (Exact name of registrant as specified in its charter)

                            British Columbia, Canada
         (State or other jurisdiction of incorporation or organization)

                                   98 -0045034
                           (I.R.S. Employer I.D. No.)

                      Suite 505, 1111 West Georgia Street
                  Vancouver, British Columbia, Canada V6E 4M3
                    (Address of Principal Executive Offices)

                                 (604) 689-1535
                        (Registrant's telephone number)
--------------------------------------------------------------------------------


Indicate by check mark whether the registrant (1) has filed all reports required
to be filed by Section 13 or 13(d) of the  Securities  and  Exchange Act of 1934
during the preceding 12 months (or for a shorter  period that the registrant was
required  to file  such  reports),  and  (2) has  been  subject  to such  filing
requirements for the past 90 days. 
Yes [X] No [ ]

Indicate the number of shares  outstanding  of each of the  issuer's  classes of
common stock, as of the latest practicable date.

                    Class: Outstanding at September 3, 1996
                                   52,056,493
                              (Common stock (npv))

                                       1
<PAGE>

SILVERADO MINES LTD.
CONSOLIDATED BALANCE SHEETS                           
(EXPRESSED IN U.S. DOLLARS)
                                                               As at
                                                      August 31     November 30
                                                        1996           1995    
                                                    ------------   ------------
ASSETS

Current Assets
  Cash and cash equivalents                         $  1,223,135   $    155,849
  Gold inventory (Note 2)                                356,279        389,119
  Accounts receivable                                      8,452          1,010
  Prepaid expenses                                        31,541         72,005
  Receivable from related parties                        250,802           --
                                                    ------------   ------------
                                                       1,870,209        617,983
Mineral Properties and Development
  Claims and options                                   2,208,160      1,755,811
  Deferred exploration and 
     development expenditures                         10,837,091     10,084,116
                                                    ------------   ------------
                                                      13,045,251     11,839,927
  Less accumulated amortization                       (1,293,247)    (1,260,834)
                                                    ------------   ------------
                                                      11,752,004     10,579,093

  Building, Plant and Equipment                        3,759,816      3,806,350

Deferred Financing Fees
  (net of amortization of $77,738: 1995 - $49,838)       108,262        136,162
                                                    ------------   ------------
                                                    $ 17,490,291   $ 15,139,588
                                                    ============   ============

LIABILITIES AND SHAREHOLDERS' EQUITY

Current Liabilities
  Accounts payable and accrued liabilities (Note 4) $    451,921   $    527,352
  Loans payable secured by gold inventory                 66,511        176,568
  Current portion of mineral claims payable              240,000        330,000
  Capital lease obligations - current                     88,575        203,203
  Payable to related parties                                --          851,610
                                                    ------------   ------------
                                                         847,007      2,088,733
Long Term Liabilities
  Mineral claims payable                                    --          200,000
  Capital lease obligations                              144,576        194,569
  Convertible debenture (Note 6)                       2,000,000      2,000,000
                                                    ------------   ------------
                                                       2,144,576      2,394,569
Shareholders' Equity
  Share capital (Note 5)
  Authorized: 75,000,000 common shares
  Issued and outstanding: 
     August 31, 1996 - 51,056,493 shares              36,162,211     28,775,211
     November 30, 1995 - 37,431,493 shares
  Capital surplus                                         46,352         46,352
  Deficit                                            (21,709,855)   (18,165,277)
                                                    ------------   ------------
                                                      14,498,708     10,656,286
                                                    ------------   ------------

                                                    $ 17,490,291   $ 15,139,588
                                                    ============   ============

See accompanying notes to consolidated financial statements


                                       2
<PAGE>

SILVERADO MINES LTD.
CONSOLIDATED STATEMENTS OF OPERATIONS AND ACCUMULATED DEFICIT
(EXPRESSED IN U.S. DOLLARS)
                                                   Nine Months Ended August 31
                                                       1996            1995    
                                                  -------------   -------------

Revenue from gold sales                           $     209,278   $   2,477,784
                                                  -------------   -------------

Operating costs
  Mining and processing costs                          (157,007)     (2,905,790)
  Amortization of property and development costs        (32,413)       (321,484)
                                                  -------------   -------------
Net Gain (Loss)                                          19,858        (749,490)

Write Down of Inventory to Net Realizable Value            --          (145,410)

Miscellaneous Revenue                                      --           385,923

Administrative expenditures                          (1,272,965)     (1,819,131)

Contracted services (Note 5)                         (2,291,471)       (208,800)

Loss for the period                                  (3,544,578)     (2,536,908)

Accumulated deficit at beginning of period          (18,165,277)    (14,070,721)
                                                  -------------   -------------

Accumulated deficit at end of period              $ (21,709,855)  $ (16,607,629)
                                                  =============   =============


Loss per share                                    $      (0.085)  $      (0.071)
                                                  =============   =============


                                                   Three Months Ended August 31
                                                       1996            1995    
                                                  -------------   -------------

Revenue from gold sales                           $     110,630   $     957,611
                                                  -------------   -------------

Operating costs
  Mining and processing costs                           (77,889)     (1,386,217)
  Amortization of property and development costs        (32,413)       (135,216)
                                                  -------------   -------------
Net Gain (Loss)                                             328        (563,822)

Write Down of Inventory to Net Realizable Value            --          (145,410)

Miscellaneous Revenue                                      --           339,405

Administrative expenditures                            (471,584)       (999,026)

Contracted services (Note 5)                           (634,693)        190,963

Loss for the period                                  (1,105,949)     (1,177,890)

Accumulated deficit at beginning of period          (20,603,906)    (15,429,740)
                                                  -------------   -------------

Accumulated deficit at end of period              $ (21,709,855)  $ (16,607,630)
                                                  =============   =============

Loss per share                                    $      (0.024)  $      (0.033)
                                                  =============   =============

See accompanying notes to consolidated financial statements


                                       3
<PAGE>

SILVERADO MINES LTD.
CONSOLIDATED STATEMENTS OF CASH FLOWS
(EXPRESSED IN U.S. DOLLARS)

                                                   Nine Months Ended August 31,
                                                       1996            1995    
                                                  -------------   -------------
CASH PROVIDED BY (USED FOR):

Operations:
  Net earnings (loss) for the period              $  (3,544,578)  $  (2,536,908)
  Items not involving cash:
    Contracted services                               2,291,471         208,800
    Depreciation                                        151,856         126,361
    Amortization of deferred financing fees              27,900          27,900
    Amortization of property and development costs       32,413         135,216
  Changes in non-cash operating working capital:       (179,040)        753,821
                                                  -------------   -------------
                                                     (1,219,978)     (1,284,810)

Financing:
  Shares issued for cash                              5,265,000         725,850
  Shares issued for consulting services                    --            97,157
  Loans payable secured by gold inventory 
    and forward sales                                  (110,057)           --
  Related parties                                    (1,102,412)        320,662
  Advances on gold                                         --           549,000
  Decrease in mineral claims payable                   (290,000)           --
  Decrease in capital lease obligation                 (164,621)       (128,637)
                                                  -------------   -------------
                                                      3,597,910       1,564,032

Investments:
  Mineral claims and options                           (452,349)        (32,900)
  Deferred exploration and 
    development expenditures                           (752,975)       (210,709)
  Purchases of equipment                               (105,322)        (67,364)
                                                  -------------   -------------
                                                     (1,310,646)       (310,973)


INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS      1,067,286         (31,751)
Cash and cash equivalents:
  Beginning of period                                   155,849         190,724
  End of period                                       1,223,135         158,973
                                                  -------------   -------------


Supplemental cash flow information
  Interest paid                                   $     160,000   $      40,000
                                                  =============   =============

See accompanying notes to consolidated financial statements


                                       4
<PAGE>

SILVERADO MINES LTD.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(Expressed In U.S. Dollars) (Unaudited) August 31, 1996

1.   Basis of Presentation

     The financial information at August 31, 1996 and for the nine month periods
     ended  August 31, 1996 and August 31, 1995  included  herein is  unaudited;
     however,  such information  reflects all adjustments  (consisting solely of
     normal  recurring  adjustments)  which are, in the  opinion of  management,
     necessary for a fair  statement of results for the interim  periods.  These
     consolidated   financial   statements  are  presented  in  accordance  with
     generally accepted accounting  principles in the United States. The results
     of  operations  for the nine month  period  ended  August 31,  1996 are not
     necessarily indicative of the results to be expected for the full year.

2.   Inventories

     Gold inventory is valued at the lower of weighted average cost or estimated
     net realizable value.

3.   Deferred Production Expenditures

     Costs  associated  with waste removal and preparation for gold recovery are
     deferred and charged to production on a unit of production basis.

4.   Accounts Payable

     Accounts payable and accrued liabilities consists of:

                                                   August 31,    November 30,
                                                      1996           1995
                                                  ===========    ===========
     Accounts payable                                 236,154        360,941
     Accrued interest                                  26,739         66,411
     Accrued contract services (Note 5)               129,142           --
     Accrued reclamation expenses                      59,886        100,000
                                                  ===========    ===========
                                                  $   451,921    $   527,352
                                                  ===========    ===========

                                       5
<PAGE>

5.   Share Capital

     (a)  Employee Options. From time to time the Company issues options for the
          purchase of common  shares to  selected  part time  employees  as sole
          compensation for contracted  services in accordance with the terms and
          conditions  of its April 20, 1994,  Stock Option and Stock Bonus Plan.
          On July 9,  1996,  the  Company's  directors  increased  the number of
          shares  authorized  under this plan from 12,100,000 to 21,100,000.  At
          August 31, 1996, 15,655,250 shares had been exercised.

     (b)  Directors  Options.  The Company  has  reserved  3,475,000  shares for
          issuance in accordance  with the terms and  conditions of its December
          12, 1994, Stock Option Plan. No changes have occurred in this original
          authorization.

     (c)  Other Share  Transactions.  The Company has reserved  1,000,000 shares
          for issuance upon the potential conversion of a convertible debenture.

6.   Convertible Debenture

     In July,  1994,  the Company issued an 8%  convertible  callable  debenture
     which is unsecured and is due July 2, 1999,  subject to prior redemption or
     conversion.  The  debenture  may be  converted  in  whole or in part by the
     holder into common  shares of the  Company at a  Conversion  Price of $2.00
     U.S.  per share (the  "Conversion  Price").  In  addition,  the Company may
     require the holder to convert the  debenture at the  Conversion  Price,  in
     whole or in part, if the average  market price of the Company's  shares has
     exceeded  125% of the  Conversion  Price  for a  period  of 20  consecutive
     trading  days.  Financing  fees paid  related  to the  debenture  have been
     deferred  and are being  amortized  on a straight  line basis over the five
     year term of the debenture.


7.   Commitments and Contingencies

     The  Company has a lease  agreement  for office  premises  for a term of 10
     years commencing April 1, 1994, with an approximate annual rate of $120,000
     (Cdn.) including operating costs.


8.   Subsequent Events

     None.

                                       6
<PAGE>

                      MANAGEMENT DISCUSSION AND ANALYSIS OF
                  FINANCIAL CONDITION AND RESULTS OF OPERATIONS



The following is  management's  discussion and analysis of certain factors which
have  significantly  affected the  Company's  financial  position and  operating
results during the period included in the  accompanying  condensed  consolidated
financial statements.

Nine Months 1996 v. 1995
------------------------

Revenue during the first nine months of 1996 was derived from continued sales of
gold from the Company's gold inventory. Production from the Company's Nolan Gold
Project  was  reduced as the  Company  refocused  its  efforts on its  Fairbanks
properties  in  response  to the  increased  activity  of several  major  mining
companies on closely proximate  projects.  Contracted services expense increased
as a function of the increased  number of shares  exercised  under the Company's
1994 Stock  Option  and Bonus  Plan (see Note 5).  The total of  current  assets
remained relatively  constant,  though the cash portion of such assets increased
to $1.2 million,  reflecting the company's efforts to reduce its liabilities and
improve its liquidity. Current liabilities were reduced primarily as a result of
a reduction  in  payables to related  parties.  Long term  liabilities  remained
relatively  unchanged,  and  consist  primarily  of a $2.0  million  convertible
debenture (see Note 6).

Liquidity and Capital Resources at August 31, 1996
--------------------------------------------------

At  August  31,  1996,   the  Company's   cash  position  of  $1.2  million  was
significantly  greater than at November 30, 1995. Funds were received from sales
of gold inventory and through the exercise of options.

Results of Operations
---------------------

(a)  Ester Dome Gold Project

     At Ester Dome, near Fairbanks,  Alaska,  the Company continued an intensive
     program of trenching and sampling on the St. Paul Shear, preparatory to the
     commencement of drilling.

(b)  Marshall Dome Gold Project

     At Marshall Dome,  also near Fairbanks,  Alaska,  the Company has continued
     reconnaissance  surface  exploration.  The property is on a regional  trend
     with the True North Gold Deposit  presently  being developed by Newmont and
     La Teko.

(c)  Whiskey Gulch Property

     The Company  acquired this four-claim  property in August of 1996. It is on
     the  geologic  trend  between  the True North  Deposits  and the  Company's
     Marshall Dome Property, and immediately adjoins the True North Claims.

                                       7
<PAGE>

(d)  Nolan Gold Project

     At the Nolan Gold Project in northern  Alaska,  the Company  continued  its
     gold  production  activities  and  reclamation  efforts.  During  the third
     quarter,  the Company  realized  the  benefits of  additional  cost-control
     measures  implemented  late last year by  successfully  producing gold at a
     cash cost of $292 per ounce.

(e)  Hammond Property

     This  property,  located  adjacent to the  Company's  Nolan Gold Project in
     northern  Alaska,  has  a  history  of  gold  production  and  the  Company
     anticipates  that it will add to the  potential for  developing  additional
     gold reserves. The property also has lode gold and antimony potential.


                                OTHER INFORMATION



Item 4   None.
------

Item 5   None.
------

Item 6   None.
------

--------------------------------------------------------------------------------

Pursuant  to the  requirements  of the  Securities  Exchange  Act of  1934,  the
registrant  has duly  caused  this  report  to be  signed  on its  behalf by the
undersigned thereunto duly authorized.


SILVERADO MINES LTD.



/J.P. Tangen/
-------------
President / CEO / CFO

                                       8