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UNITED STATESSECURITIES AND EXCHANGE COMMISSIONWashington, D.C.
20549

FORM 10-Q

[X] QUARTERLY REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES
EXCHANGE ACT OF 1934

For the quarterly period ended: August 31, 2009

or

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

For the transition period from: ___________ to ___________

Commission File Number: 0-12132

SILVERADO GOLD MINES LTD.(EXACT NAME OF REGISTRANT AS SPECIFIED IN ITS CHARTER)

|British Columbia, Canada                                             | 98-0045034                          
|-------------------------------------------------------------------- | ------------------------------------
|(State or other jurisdiction of incorporation or
      organization) | (I.R.S. Employer Identification No.)
|                                                                     |                                     
|1111 West Georgia Street, Suite 1820,                                |                                     
|Vancouver, British Columbia, Canada                                  | V6E 4M3                             
|(Address of principal executive offices)                             | (Zip Code)                          

Registrants telephone number: (800) 665-4646

Former name, former address, and former fiscal year, if changed
since last report: N/A

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 such filing requirements for the past 90 days. Yes [X]   No [ 
   ]

Indicate by check mark whether the Registrant is a large accelerated
  filer, an accelerated filer, a non-accelerated filer, or a smaller reporting
  company.

Large accelerated filer
      [   ]
      Accelerated filer
      [   ]Non-accelerated filer
      [   ]
      Smaller reporting company
      [X]


Indicate by check mark whether the Registrant is a shell company
  (as defined in Rule 12b-2 of the Exchange Act). Yes [   ]   
  No [ X ]

Indicate the number of shares outstanding of each of the issuers
  classes of common stock, as of the latest practicable date: 1,499,894,502
  common shares, no par value, outstanding as of October 6, 2009.

1

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SILVERADO GOLD MINES LTD. AND ITS SUBSIDIARIES(An
Exploration Stage Company)

INDEX

Quarterly Period Ended August 31, 2009

|               |                           |                                                                                                                                                                                                                                                 | Page 
|-------------- | ------------------------- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | -----
|               |                           |                                                                                                                                                                                                                                                 |      
|PART I         | **FINANCIAL INFORMATION** |                                                                                                                                                                                                                                                
|               |                           |                                                                                                                                                                                                                                                 |      
|               | ITEM 1                    | FINANCIAL STATEMENTS                                                                                                                                                                                                                            | 3    
|               |                           |                                                                                                                                                                                                                                                 |      
|               |                           | Consolidated Balance Sheets as of August 31, 2009 (unaudited)
      and November 30, 2008 (audited)                                                                                                                                             | 3    
|               |                           |                                                                                                                                                                                                                                                 |      
|               |                           | Consolidated Statements of Operations for the three months
      and nine months ended August 31, 2009 and 2008, and for the period from
      December 1, 2001 (Recommencement of Exploration Stage) through August 31,
      2009 (unaudited) | 4    
|               |                           |                                                                                                                                                                                                                                                 |      
|               |                           | Consolidated Statements of Cash Flows for the nine months
      ended August 31, 2009 and 2008, and for the period from December 1, 2001
      (Recommencement of Exploration Stage) through August 31, 2009 (unaudited)                        | 5    
|               |                           |                                                                                                                                                                                                                                                 |      
|               |                           | Notes to the Consolidated Financial Statements as of August
      31, 2009 (unaudited)                                                                                                                                                          | 6-24 
|               |                           |                                                                                                                                                                                                                                                 |      
|               | ITEM 2                    | MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION
      AND RESULTS OF OPERATIONS                                                                                                                                                     | 25-37
|               |                           |                                                                                                                                                                                                                                                 |      
|               | ITEM 3                    | QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK                                                                                                                                                                                      | 38   
|               |                           |                                                                                                                                                                                                                                                 |      
|               | ITEM 4                    | CONTROLS AND PROCEDURES                                                                                                                                                                                                                         | 38   
|               |                           |                                                                                                                                                                                                                                                 |      
|PART II        | **OTHER INFORMATION**     |                                                                                                                                                                                                                                                
|               |                           |                                                                                                                                                                                                                                                 |      
|               | ITEM 1                    | LEGAL PROCEEDINGS                                                                                                                                                                                                                               | 39   
|               |                           |                                                                                                                                                                                                                                                 |      
|               | ITEM 2                    | UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS                                                                                                                                                                                     | 39   
|               |                           |                                                                                                                                                                                                                                                 |      
|               | ITEM 3                    | DEFAULTS UPON SENIOR SECURITIES                                                                                                                                                                                                                 | 39   
|               |                           |                                                                                                                                                                                                                                                 |      
|               | ITEM 4                    | SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS                                                                                                                                                                                             | 39   
|               |                           |                                                                                                                                                                                                                                                 |      
|               | ITEM 5                    | OTHER INFORMATION                                                                                                                                                                                                                               | 39   
|               |                           |                                                                                                                                                                                                                                                 |      
|               | ITEM 6                    | EXHIBITS                                                                                                                                                                                                                                        | 40-41
|               |                           |                                                                                                                                                                                                                                                 |      
|**SIGNATURES** | 42                       

2

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PART I FINANCIAL INFORMATION

ITEM 1. FINANCIAL STATEMENTS

SILVERADO GOLD MINES LTD. AND ITS
SUBSIDIARIES(An Exploration Stage Company) CONSOLIDATED
BALANCE SHEETS (Stated In United States Dollars)

|                                                   |   | August 31, 2009 |   |   | November 30, 2008 |  
|-------------------------------------------------- | - | --------------- | - | - | ----------------- | -
|                                                   |   | (Unaudited)     |   |   | (Audited)         |  
|ASSETS                                             |   |                 |   |   |                   |  
|Current Assets                                     |   |                 |   |   |                   |  
|Cash and cash
      equivalents                    | $ | 13,983          |   | $ | 50,991            |  
|Gold inventory                                     |   | 6,316           |   |   | 50,106            |  
|Prepaid and
      other receivables                |   | 751,367         |   |   | 383,358           |  
|Total Current Assets                               |   | 771,666         |   |   | 484,455           |  
|Mineral rights                                     |   | 1,376,671       |   |   | 1,197,591         |  
|Property, plant and equipment, net                 |   | 1,070,540       |   |   | 1,631,824         |  
|TOTAL ASSETS                                       | $ | 3,218,877       |   | $ | 3,313,870         |  
|LIABILITIES                                        |   |                 |   |   |                   |  
|Current Liabilities                                |   |                 |   |   |                   |  
|Accounts payable and accrued
      liabilities     | $ | 783,346         |   | $ | 561,460           |  
|Due to related
      parties                       |   | 1,071,475       |   |   | 1,076,881         |  
|Convertible debentures, current
      portion      |   | -               |   |   | 140,000           |  
|Total Current Liabilities                          |   | 1,854,821       |   |   | 1,778,341         |  
|Asset retirement obligation                        |   | 555,304         |   |   | 537,258           |  
|Mineral claims royalty payable                     |   | 470,000         |   |   | 390,000           |  
|Total Liabilities                                  |   | 2,880,125       |   |   | 2,705,599         |  
|STOCKHOLDERS' EQUITY                               |   |                 |   |   |                   |  
|Common stock                                       |   |                 |   |   |                   |  
|Authorized:                                        |   |                 |   |   |                   |  
|unlimited
      common shares with no par value    |   |                 |   |   |                   |  
|Issued and
      outstanding:                      |   |                 |   |   |                   |  
|1,460,560,884 common shares (2008: 977,437,101)    |   | 99,742,399      |   |   | 94,718,072        |  
|Additional paid-in capital                         |   | 1,200,408       |   |   | 1,200,408         |  
|Subscriptions received                             |   | 70,000          |   |   | -                 |  
|Accumulated deficit during exploration
      stage |   | (100,674,055    | ) |   | (95,310,209       | )
|Total Stockholders' Equity                         |   | 338,752         |   |   | 608,271           |  
|TOTAL LIABILITIES AND STOCKHOLDERS'
      EQUITY   | $ | 3,218,877       |   | $ | 3,313,870         |  

The accompanying notes are an integral part of these condensed
consolidated financial statements 3

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SILVERADO GOLD MINES LTD. AND ITS SUBSIDIARIES(An
Exploration Stage Company) CONSOLIDATED STATEMENTS OF OPERATIONS AND OTHER
COMPREHENSIVE LOSS (UNAUDITED) (Stated In United States Dollars)

|                                                                |   |                          |   |   |                         |   |   |                 |   |   |                 |   |   | Period Since             |  
|--------------------------------------------------------------- | - | ------------------------ | - | - | ----------------------- | - | - | --------------- | - | - | --------------- | - | - | ------------------------ | -
|                                                                |   |                          |   |   |                         |   |   |                 |   |   |                 |   |   | Recommencement           |  
|                                                                |   |                          |   |   |                         |   |   |                 |   |   |                 |   |   | of Exploration           |  
|                                                                |   | Three
      Months Ended |   |   | Nine
      Months Ended |   |   | Stage from      |  
|                                                                |   | August 31, 2009          |   |   | August 31, 2008         |   |   | August 31, 2009 |   |   | August 31, 2008 |   |   | December 1, 2001         |  
|                                                                |   | (Unaudited)              |   |   | (Unaudited)             |   |   | (Unaudited)     |   |   | (Unaudited)     |   |   | to
      August 31, 2009 |  
|General and administrative expenses                             |   |                          |   |   |                         |   |   |                 |   |   |                 |   |   |                          |  
|Accounting and audit                                            | $ | 33,746                   |   | $ | 107,175                 |   | $ | 70,689          |   | $ | 283,099         |   | $ | 788,887                  |  
|Advertising, promotion and travel                               |   | 16,547                   |   |   | 47,250                  |   |   | 39,286          |   |   | 184,234         |   |   | 2,984,576                |  
|Consulting fees                                                 |   | 559,202                  |   |   | 350,941                 |   |   | 2,209,259       |   |   | 847,062         |   |   | 10,156,249               |  
|Depreciation, accretion and impairment                          |   | 49,953                   |   |   | 91,523                  |   |   | 166,855         |   |   | 256,440         |   |   | 2,726,587                |  
|Exploration expenses                                            |   | 348,428                  |   |   | 955,379                 |   |   | 653,568         |   |   | 1,971,920       |   |   | 15,368,375               |  
|Financing activities                                            |   | 2,597                    |   |   | -                       |   |   | 2,597           |   |   | -               |   |   | 304,600                  |  
|Legal and other professional fees                               |   | 61,053                   |   |   | 174,620                 |   |   | 218,660         |   |   | 278,411         |   |   | 1,488,745                |  
|Management services                                             |   | 165,053                  |   |   | 307,439                 |   |   | 595,926         |   |   | 593,145         |   |   | 6,215,162                |  
|Office expenses                                                 |   | 77,601                   |   |   | 285,558                 |   |   | 247,419         |   |   | 651,777         |   |   | 4,855,017                |  
|Related party charges in excess of costs
      incurred         |   |                          |   |   |                         |   |   |                 |   |   |                 |   |   |                          |  
|(net of debt forgiveness of $600,000)                           |   | (434,870                 | ) |   | 411,062                 |   |   | (143,690        | ) |   | 940,654         |   |   | 4,800,178                |  
|Reporting and investor relations                                |   | 100,426                  |   |   | 199,970                 |   |   | 269,367         |   |   | 382,926         |   |   | 1,252,489                |  
|Research                                                        |   | -                        |   |   | 27,000                  |   |   | -               |   |   | 243,500         |   |   | 1,064,735                |  
|Transfer agent and filing fees                                  |   | 27,670                   |   |   | 23,731                  |   |   | 87,154          |   |   | 54,725          |   |   | 365,944                  |  
|Write-off of mineral claim expenditures                         |   | -                        |   |   | -                       |   |   | -               |   |   | -               |   |   | 1,159,529                |  
|Write-down of property, plant and equipment                     |   | -                        |   |   | -                       |   |   | -               |   |   | -               |   |   | 317,425                  |  
|Total expenses                                                  |   | 1,007,406                |   |   | 2,981,648               |   |   | 4,417,090       |   |   | 6,687,893       |   |   | 53,848,498               |  
|Loss from operations                                            |   | (1,007,406               | ) |   | (2,981,648              | ) |   | (4,417,090      | ) |   | (6,687,893      | ) |   | (53,848,498              | )
|Gold income earned during the exploration stage                 |   |                          |   |   |                         |   |   |                 |   |   |                 |   |   |                          |  
|Gold sale proceeds earned during
      the exploration stage    |   | -                        |   |   | 1,748,149               |   |   | 52,450          |   |   | 2,121,064       |   |   | 3,714,310                |  
|Cost of gold sold                                               |   | -                        |   |   | (1,476,916              | ) |   | (43,790         | ) |   | (1,848,048      | ) |   | (3,250,373               | )
|Gold inventory addition from gold
      extraction              |   | -                        |   |   | -                       |   |   | -               |   |   | -               |   |   | 3,248,056                |  
|Total gold income earned during the exploration stage           |   | -                        |   |   | 271,233                 |   |   | 8,660           |   |   | 273,016         |   |   | 3,711,993                |  
|Other income (expenses)                                         |   |                          |   |   |                         |   |   |                 |   |   |                 |   |   |                          |  
|Interest and other income                                       |   | 81                       |   |   | 597                     |   |   | 145             |   |   | 20,941          |   |   | 277,952                  |  
|Interest expenses on capital lease
      obligations            |   | -                        |   |   | -                       |   |   | -               |   |   | (6,611          | ) |   | (333,221                 | )
|Interest expenses on convertible debentures                     |   | -                        |   |   | (2,800                  | ) |   | -               |   |   | (8,400          | ) |   | (707,007                 | )
|Other interest expenses and bank
      charges                  |   | (2,439                   | ) |   | (3,309                  | ) |   | (9,537          | ) |   | (11,274         | ) |   | (69,645                  | )
|Commitment fees                                                 |   | -                        |   |   | -                       |   |   | (960,000        | ) |   | -               |   |   | (960,000                 | )
|Loss on disposal of property,
      plant and equipment         |   | -                        |   |   | -                       |   |   | (173,921        | ) |   | -               |   |   | (285,304                 | )
|Write-off of convertible debentures and accrued
      interests |   | -                        |   |   | -                       |   |   | 260,827         |   |   | -               |   |   | 260,827                  |  
|Total other (expenses)                                          |   | (2,358                   | ) |   | (5,512                  | ) |   | (882,486        | ) |   | (5,344          | ) |   | (1,816,398               | )
|                                                                |   |                          |   |   |                         |   |   |                 |   |   |                 |   |   |                          |  
|Net loss before cumulative effect of accounting
      change    |   | (1,009,764               | ) |   | (2,715,927              | ) |   | (5,290,916      | ) |   | (6,420,221      | ) |   | (51,952,903              | )
|Cumulative effect of accounting change                          |   | -                        |   |   | -                       |   |   | -               |   |   | -               |   |   | (99,481                  | )
|Net loss                                                        |   | (1,009,764               | ) |   | (2,715,927              | ) |   | (5,290,916      | ) |   | (6,420,221      | ) |   | (52,052,384              | )
|Other comprehensive income (loss)                               |   |                          |   |   |                         |   |   |                 |   |   |                 |   |   |                          |  
|(Loss) / Gain on foreign exchange                               |   | (49,842                  | ) |   | 139,297                 |   |   | (72,930         | ) |   | 9,259           |   |   | 283,273                  |  
|Comprehensive loss for the period                               | $ | (1,059,606               | ) | $ | (2,576,630              | ) | $ | (5,363,846      | ) | $ | (6,410,962      | ) | $ | (51,769,111              | )
|Net loss per share                                              | $ | (0.001                   | ) | $ | (0.003                  | ) | $ | (0.004          | ) | $ | (0.007          | ) |   |                          |  
|Basic and diluted weighted average number                       |   |                          |   |   |                         |   |   |                 |   |   |                 |   |   |                          |  
|of common shares outstanding                                    |   | 1,386,724,534            |   |   | 927,792,169             |   |   | 1,197,296,139   |   |   | 899,279,514     |   |   |                          |  

The accompanying notes are an integral part of these condensed
consolidated financial statements 4

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SILVERADO GOLD MINES LTD. AND ITS SUBSIDIARIES(An
Exploration Stage Company) CONSOLIDATED STATEMENTS OF CASH FLOWS
(UNAUDITED) (Stated In United States Dollars)

|                                                                              |   |                         |   |   |                 |   |   | Period Since       |  
|----------------------------------------------------------------------------- | - | ----------------------- | - | - | --------------- | - | - | ------------------ | -
|                                                                              |   |                         |   |   |                 |   |   | Recommencement     |  
|                                                                              |   |                         |   |   |                 |   |   | of Exploration     |  
|                                                                              |   | Nine
      Months Ended |   |   | Stage from      |  
|                                                                              |   | August 31, 2009         |   |   | August 31, 2008 |   |   | December 1, 2001   |  
|                                                                              |   | (Unaudited)             |   |   | (Unaudited)     |   |   | to August 31, 2009 |  
|CASH AND CASH EQUIVALENTS PROVIDED BY (USED
      FOR):                       |   |                         |   |   |                 |   |   |                    |  
|Operating activities:                                                         |   |                         |   |   |                 |   |   |                    |  
|Net comprehensive loss for the
      period                                   | $ | (5,363,846              | ) | $ | (6,410,962      | ) | $ | (51,769,111        | )
|Adjustments to reconcile loss to net cash used
      in operating activities: |   |                         |   |   |                 |   |   |                    |  
|Cumulative
      effect of accounting change                                  |   | -                       |   |   | -               |   |   | 99,481             |  
|Depreciation, amortization,
      accretion and impairment                    |   | 166,855                 |   |   | 256,440         |   |   | 2,726,587          |  
|Loss on disposal
      of property, plant and equipment                       |   | 173,921                 |   |   | -               |   |   | 285,304            |  
|Stock-based compensation
      included in management fees                    |   | -                       |   |   | -               |   |   | 3,375,644          |  
|Stock issued
      for debenture                                              |   | -                       |   |   | -               |   |   | 217,687            |  
|Non-cash consulting and other
      expenses                                  |   |                         |   |   |                 |   |   |                    |  
|resulting
      from share issuance                                           |   | 1,908,036               |   |   | 480,000         |   |   | 5,352,242          |  
|Non-cash prepaid consulting
      fees expensed during the period             |   | 333,500                 |   |   | -               |   |   | 333,500            |  
|Non-cash
      commitment fees resulting from share issuance                  |   | 960,000                 |   |   | -               |   |   | 960,000            |  
|Non-cash financing expense                                                    |   | -                       |   |   | -               |   |   | 252,003            |  
|Interest
      accrued                                                        |   | -                       |   |   | 8,400           |   |   | 497,570            |  
|Write-off of convertible
      debentures and accrued interests               |   | (260,827                | ) |   | -               |   |   | (260,827           | )
|Write-off
      of mineral claim expenditures                                 |   | -                       |   |   | -               |   |   | 1,159,529          |  
|Write-down of property, plant
      and equipment                             |   | -                       |   |   | -               |   |   | 317,425            |  
|Changes in non-cash operating
      working capital:                          |   |                         |   |   |                 |   |   |                    |  
|Gold inventory                                                                |   | 43,790                  |   |   | 1,848,048       |   |   | 2,317              |  
|Prepaid and
      other receivables                                           |   | 38,282                  |   |   | 254,491         |   |   | (8,701             | )
|Accounts payable and accrued
      liabilities                                |   | 342,713                 |   |   | 99,953          |   |   | 286,440            |  
|Asset retirement
      obligation                                             |   | 18,046                  |   |   | 19,539          |   |   | 25,993             |  
|Net cash (used in) operating activities                                       |   | (1,639,530              | ) |   | (3,444,091      | ) |   | (36,146,917        | )
|                                                                              |   |                         |   |   |                 |   |   |                    |  
|Investing activities:                                                         |   |                         |   |   |                 |   |   |                    |  
|Investment in mineral properties                                              |   | (99,080                 | ) |   | (138,505        | ) |   | (1,223,171         | )
|Purchase of property, plant and equipment                                     |   | (2,001                  | ) |   | (308,029        | ) |   | (3,078,519         | )
|Proceeds from sale of property,
      plant and equipment, net                |   | 222,509                 |   |   | -               |   |   | 811,298            |  
|Net cash provided by (used in) investing activities                           |   | 121,428                 |   |   | (446,534        | ) |   | (3,490,392         | )
|                                                                              |   |                         |   |   |                 |   |   |                    |  
|Financing activities:                                                         |   |                         |   |   |                 |   |   |                    |  
|Advances from (to) related party                                              |   | (5,406                  | ) |   | (693,927        | ) |   | 780,163            |  
|Repayment of loans payable                                                    |   | -                       |   |   | -               |   |   | (35,729            | )
|Repayment of capital lease obligation                                         |   | -                       |   |   | (31,013         | ) |   | (1,131,607         | )
|Repayment of convertible debentures                                           |   | -                       |   |   | -               |   |   | (74,999            | )
|Share subscriptions received                                                  |   | 70,000                  |   |   | -               |   |   | 70,000             |  
|Common stock issued for cash (net of share issue
      costs)                 |   | 1,416,500               |   |   | 3,782,046       |   |   | 40,026,371         |  
|Net cash provided by financing activities                                     |   | 1,481,094               |   |   | 3,057,106       |   |   | 39,634,199         |  
|                                                                              |   |                         |   |   |                 |   |   |                    |  
|(Decrease) in cash and cash equivalents                                       |   | (37,008                 | ) |   | (833,519        | ) |   | (3,110             | )
|                                                                              |   |                         |   |   |                 |   |   |                    |  
|Cash and cash equivalents, at beginning
      of the period                   |   | 50,991                  |   |   | 1,073,457       |   |   | 17,093             |  
|                                                                              |   |                         |   |   |                 |   |   |                    |  
|Cash and cash equivalents, at end of the
      period                         | $ | 13,983                  |   | $ | 239,938         |   | $ | 13,983             |  
|Supplemental Cash Flow Information (Note 12)                                  |   |                         |   |   |                 |   |   |                    |  

The accompanying notes are an integral part of these condensed
consolidated financial statements 5

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|SILVERADO GOLD MINES LTD. AND ITS SUBSIDIARIES        
|------------------------------------------------------
|(An Exploration Stage Company)                        
|NOTES TO THE INTERIM CONSOLIDATED FINANCIAL STATEMENTS
|as of August 31, 2009 (Unaudited)                     
|(Stated in United States Dollars)                     
|                                                      

Note 1  Basis of Presentation

The unaudited interim consolidated financial statements include
the accounts of Silverado Gold Mines Ltd. and its wholly-owned subsidiaries
Silverado Gold Mines Inc. and Silverado Green Fuel Inc. (collectively,
Silverado or the Company). All significant inter-company transactions have
been eliminated.

The unaudited interim consolidated financial statements do not
include all information and footnote disclosures required under United States
generally accepted accounting principles. In managements opinion, all
adjustments (consisting solely of normal recurring accruals) considered
necessary for a fair presentation of the financial position as of August 31,
2009, and the results of operations and cash flows for all periods presented,
have been included. Readers of these financial statements should note that
interim results for the periods presented are not necessarily indicative of the
results that can be expected for the entire fiscal year as a whole.

These interim consolidated financial statements should be read
in conjunction with the consolidated financial statements and notes thereto
included in Silverados Annual Report on Form 10-KSB, for the fiscal year ended
November 30, 2008. Certain of the prior periods figures in the statement of
cash flows have been reclassified to conform to the presentation adopted in the
current period.

The Company considers its functional currency to be the U.S.
dollar for its U.S. and Canadian operations. Monetary assets and liabilities
denominated in foreign currencies are translated into U.S. dollar at the rates
of exchange in effect at the period-end. Non-monetary assets and revenue and
expense transactions are translated at the rate in effect at the time at which
the transactions took place. Foreign exchange gains and losses are included in
the determination of results from operations for the periods as other
comprehensive gains and losses.

The accompanying interim consolidated financial statements have
been prepared assuming the Company will continue as a going concern, which
implies the Company will continue to realize its assets and discharge its
liabilities in the normal course of business. The Company lacks sufficient
working capital, has recurring losses and its operations continue to be funded
primarily from sales of its stock. The ability of the Company to continue as a
going concern, including completion of the acquisition, exploration and
development of its mineral properties and completion of the research and
development of its low-rank coal-water fuel project is dependent on the
Companys ability to obtain the necessary capital from sales of its stock or
from debt financings. The interim consolidated financial statements do not
include any adjustments to the recoverability and classification of recorded
asset amounts and classification of liabilities that might be necessary should
the Company be unable to continue as a going concern.

Note 2  Recent Accounting Pronouncements and Significant
Accounting Policies

Recent Accounting Pronouncements and Interpretations

In May 2009, the FASB issued Statement of Financial Accounting
Standards 165, Subsequent Events.(SFAS No. 165). This Statement
establishes general standards of accounting for and disclosures of events that
occur after the balance sheet date but before financial statements are issued or
are available to be issued. It requires disclosure as of the date through which
an entity has evaluated subsequent events (and the basis for that date) and is
effective for interim and annual periods ending after June 15, 2009. The
adoption of SFAS 165 did not have a material impact on the Companys financial
statements.

6

---

|SILVERADO GOLD MINES LTD. AND ITS SUBSIDIARIES        
|------------------------------------------------------
|(An Exploration Stage Company)                        
|NOTES TO THE INTERIM CONSOLIDATED FINANCIAL STATEMENTS
|as of August 31, 2009 (Unaudited)                     
|(Stated in United States Dollars)                     
|                                                      

Note 2  Recent Accounting Pronouncements and Significant
Accounting Policies (Continued)

Recent Accounting Pronouncements and Interpretations
(Continued)

In June 2009, the FASB issued Statement of Financial Accounting
Standards 168, The FASB Accounting Standards Codification and the Hierarchy
of Generally Accepted Accounting Principles (SFAS 168). SFAS 168 will
become the single source of authoritative nongovernmental GAAP (US), superseding
existing FASB, AICPA, EITF, and related accounting literature. SFAS 168
reorganizes the thousands of GAAP pronouncements into roughly 90 accounting
topics and displays them using a consistent structure. Also included is relevant
Securities and Exchange Commission guidance organized using the same topical
structure in separate sections. SFAS 168 will be effective for financial
statements issued for reporting periods that end after September 15, 2009. The
Company will begin to use the new guidelines and numbering system prescribed by
the Codification when referring to GAAP in the 4th quarter of fiscal
2009. As the Codification was not intended to change or alter existing GAAP, it
will not have any impact on the Companys financial statements.

Exploration Stage Company

The Securities and Exchange Commissions Industry Guide 7,
Description of Property by Issuers Engaged or to be Engaged in Significant
Mining Operations requires that mining companies in the exploration stage
not refer to themselves as development stage companies in the financial
statements, even though such companies should comply with Financial Accounting
Standard Board Statement No. 7, if applicable. Accordingly, the Company has not
been referred to as a development stage company. Accumulated results of
operations are presented from December 1, 2001, the date the Company re-entered
the exploration stage.

Income Taxes

The Company uses the assets and liabilities method of
accounting for income taxes pursuant to Statement of Financial Accounting
Standards No. 109 Accounting for Income Taxes (SFAS 109). Under the
assets and liabilities method of SFAS 109, deferred tax assets and liabilities
are recognized for the future tax consequences attributable to temporary
differences between the financial statements carrying amounts of existing assets
and liabilities and their respective tax bases. Deferred tax assets and
liabilities are measured using enacted tax rates expected to apply to taxable
income in the years in which those temporary differences are expected to be
recovered or settled.

Effective December 1, 2007, the Company adopted the provisions
of the FASB Interpretation No. 48, Accounting for Uncertainty in Income
Taxes  an interpretation of FASB Statement No. 109(FIN 48). FIN
48 contains a two-step approach to recognizing and measuring uncertain tax
positions accounted for in accordance with SFAS 109, Accounting for Income
Taxes. The first step is to evaluate the tax position for recognition by
determining if the weight of available evidence indicates it is more likely than
not that the position will be sustained on audit, including resolution of
related appeals or litigation processes, if any. The second step is to measure
the tax benefit as the largest amount which is more than 50% likely of being
realized upon ultimate settlement. We consider many factors when evaluating and
estimating tax positions and tax benefits, which may require periodic
adjustments and which may not accurately anticipate actual outcomes. Based on
our review, there was no impact of FIN 48 on our financial position.

7

---

|SILVERADO GOLD MINES LTD. AND ITS SUBSIDIARIES        
|------------------------------------------------------
|(An Exploration Stage Company)                        
|NOTES TO THE INTERIM CONSOLIDATED FINANCIAL STATEMENTS
|as of August 31, 2009 (Unaudited)                     
|(Stated in United States Dollars)                     
|                                                      

Note 2  Recent Accounting Pronouncements and Significant
Accounting Policies (Continued)

Gold Inventory

The Company values its gold inventories at the lower of cost or
market. The Company is still in the exploration stage. By definition, the
Companys direct and absorbed costs would exceed the market value of any gold
recovery. Therefore, the Company values gold inventory additions from gold
extraction at the spot price as of the date of the addition to the gold
inventory, and records the costs of gold inventory sold on a first-in first-out
basis. Gold sale proceeds and cost of gold sold are recorded as other income
earned during the exploration stage.

Basic and Diluted Loss Per Share

Basic loss per share is computed by dividing the loss for the
year by the weighted average number of common shares outstanding during the
year. Diluted earnings per share reflect the potential dilution that could occur
if potentially dilutive securities were exercised or converted to common stock.
The dilutive effect of options and warrants and their equivalents is computed by
application of the treasury stock method and the effect of convertible
securities by the if converted method. Fully diluted amounts are not presented
when the effects of the computations are anti-dilutive due to the losses
incurred. Accordingly, there is no difference in the amounts presented for basic
and diluted loss per share for the period.

Mineral Rights Payments and Exploration Costs

Pursuant to EITF 04-02, Whether Mineral Rights are Tangible
or Intangible Assets and Related Issues, the Company has modified its
accounting policy with respect to mineral claim payments, retroactively
effective to June 1, 2004, to capitalize the direct costs to acquire or lease
mineral properties and mineral rights as tangible assets. The direct costs
include the costs of signature (lease) bonuses, options to purchase or lease
properties, and brokers and legal fees. If the acquired mineral rights relate
to unproven properties, the Company does not amortize the capitalized mineral
costs, but evaluates the capitalized mineral costs periodically for impairment.
The Company expenses all costs related to the exploration of mineral claims in
which it had secured exploration rights prior to establishment of proven
reserves.

When it has been determined that a mineral property can be
economically developed as a result of establishing proven reserves, the costs
then incurred to develop such property are capitalized. Capitalized costs
related to such property will be amortized using the units-of-production method
over the estimated life of the proven reserve.

Use of Estimates

The preparation of financial statements in conformity with
accounting principles generally accepted in the United States of America
requires management to make estimates and assumptions that affect the reported
amount of assets and liabilities and disclosure of contingent assets and
liabilities at the date of the financial statements and the reported amounts of
revenues and expenses during the reporting period. Actual results could vary
from these estimates.

Revenue Recognition

During the period the Company is in the exploration stage,
proceeds on gold recoveries from test mining are recorded as other income earned
during the exploration stage.

8

---

|SILVERADO GOLD MINES LTD. AND ITS SUBSIDIARIES        
|------------------------------------------------------
|(An Exploration Stage Company)                        
|NOTES TO THE INTERIM CONSOLIDATED FINANCIAL STATEMENTS
|as of August 31, 2009 (Unaudited)                     
|(Stated in United States Dollars)                     
|                                                      

Note 2  Recent Accounting Pronouncements and Significant
Accounting Policies (Continued)

Asset Retirement Obligation

Effective December 1, 2002, the Company adopted SFAS No. 143,
Accounting for Asset Retirement Obligations (SFAS 143), which
addresses financial accounting and reporting for obligations associated with the
retirement of tangible long-lived assets and the associated retirement costs.
The standard applies to legal obligations associated with the retirement of
long-lived assets that result from the acquisition, construction, development
and normal use of the asset.

SFAS 143 requires that the fair value of a liability for an
asset retirement obligation be recognized in the period in which it is incurred
if a reasonable estimate of fair value can be made. The fair value of the
liability is added to the carrying amount of the associated asset and this
additional carrying amount is depreciated over the life of the asset. The
liability is accreted at the end of each period through charges to operating
expense. If the obligation is settled for other than the carrying amount of the
liability, the Company will recognize a gain or loss on settlement.

Cash and Cash Equivalents

Cash and cash equivalents are carried at cost and they comprise
cash on hand, deposits held with banks and other highly liquid investments.
Highly liquid investments are readily convertible to cash and generally have
maturities of three months or less from the time acquired. The Company places
its cash and cash equivalents with high quality financial institutions which the
Company believes limits credit risks.

Accounting for Stock-based Compensation

Effective December 1, 2006, the Company adopted the provisions
of SFAS 123(R) (Share-based Compensation) requiring equity awards granted under
its stock option plan to be accounted for under the fair value method.
Accordingly, share-based compensation is measured at grant date, based on the
fair value of the award. Prior to December 1, 2006, the Company accounted for
awards granted under its stock option plans utilizing the intrinsic value method
prescribed by Accounting Principles Board (APB) Opinion No. 25, Accounting for
Stock Issued to Employees, and related interpretations, and provided the
required pro forma disclosures prescribed by SFAS 123, Accounting for
Stock-Based Compensation, as amended. Under the existing stock option plans,
all options vest entirely on the grant date. Therefore, there were no partially
vested options outstanding as of the SFAS 123(R) adoption date.

Fair Value of Financial Instruments

The carrying value of cash and cash equivalents, gold
inventory, prepaid and other receivables, accounts payable and accrued
liabilities, mineral claims royalty payable and payable to related party
approximate fair value because of the short-term maturity of these instruments.
The carrying amounts reported in the balance sheets for convertible debentures
approximate their fair values as they bear interest at rates which approximate
market rates. Unless otherwise noted, it is managements opinion that the
Company is not exposed to significant interest, currency or credit risks arising
from these financial instruments.

9

---

|SILVERADO GOLD MINES LTD. AND ITS SUBSIDIARIES        
|------------------------------------------------------
|(An Exploration Stage Company)                        
|NOTES TO THE INTERIM CONSOLIDATED FINANCIAL STATEMENTS
|as of August 31, 2009 (Unaudited)                     
|(Stated in United States Dollars)                     
|                                                      

Note 3  Gold Inventory

For the nine months ended August 31, 2009, the Company sold
58.15 troy ounces of gold, (for the nine months ended August 31, 2008: 2,811.74
troy ounces) for net proceeds of $52,450 (August 31, 2008: $2,121,064), which
were recorded as other income earned during the exploration stage. In addition,
the Company wrote off 8.45 troy ounces gold inventory for the inventory
shrinkage, the value of which is $5,556 recorded as cost of gold sold. The
following is a summary of gold inventory changes during the nine months ended
August 31, 2009 and during the fiscal year ended November 30, 2008:

|                                |  |                   |   |   | Weighted      |  |   |            |  
|------------------------------- |  | ----------------- | - | - | ------------- |  | - | ---------- | -
|                                |  | Troy
      Ounces |   |   | Average price |  |   | Value      |  
|Balance as of November 30, 2007 |  | 2,996             |   |   | 657.50        |  |   | 1,969,870  |  
|Cost of gold sold               |  | (2,920            | ) |   | 657.50        |  |   | (1,919,764 | )
|Balance as of November 30, 2008 |  | 76                |   | $ | 657.50        |  | $ | 50,106     |  
|Cost of gold sold               |  | (66               | ) |   | 657.50        |  |   | (43,790    | )
|Balance as of August 31, 2009   |  | 10                |   | $ | 657.50        |  | $ | 6,316      |  

Note 4  Related Party Transactions

(a) Service Agreements

The Company has had related party transactions with Tri-Con
Mining Ltd., Tri-Con Mining Inc. and Tri-Con Mining Alaska Inc. (collectively,
the Tri-Con Group), all of which are controlled by a director and officer of
the Company.

The Tri-Con Group is operations, exploration and development
contractors and has been employed by the Company under contracts since 1972 to
carry out all of the Companys fieldwork and to provide field administrative and
management services. Under the current contracts dated January 1, 1997, work is
charged at cost plus 25% for exploration and cost plus 15% for development and
mining. The term cost means out-of-pocket or actual cost incurred by Tri-Con
Group plus 15% for office overhead including stand-by and contingencies. There
is no mark-up on capital purchases. The Tri-Con Group does not charge the
Company for the services of any of its directors who are also directors of the
Company. In addition, per the terms of the agreements, the Company paid a base
administration fee of CDN $10,000 per month to Tri-Con Mining Ltd. and US
$10,000 per month to Tri-Con Mining Inc.

For the nine months ended August 31, 2009, the Tri-Con Groups
services focused mainly on corporate planning; mining, drilling and engineering
planning and preparation for production on the Companys Nolan property;
equipment and property maintenance; and administration services at both the
field and corporate offices. In recognition of the Companys cash flow
constraints, the Tri-Con Group has forgiven payment on $600,000 of receivables
due from the Company. As of August 31, 2009, after the offset of the amount
forgiven, Silverado owed $1,071,475 (November 30, 2008: $1,076,881) to the
Tri-Con Group for exploration and administration services performed on behalf of
Silverado.

The following is a summary of Tri-Con Group charges for the
nine months ended August 31, 2009 and 2008:

10

---

|SILVERADO GOLD MINES LTD. AND ITS SUBSIDIARIES        
|------------------------------------------------------
|(An Exploration Stage Company)                        
|NOTES TO THE INTERIM CONSOLIDATED FINANCIAL STATEMENTS
|as of August 31, 2009 (Unaudited)                     
|(Stated in United States Dollars)                     
|                                                      

Note 4  Related Party Transactions (Continued)

(a) Service Agreements (Continued)

|                                                                    |   | Nine
      Months Ended |   
|------------------------------------------------------------------- | - | ----------------------- | --
|                                                                    |   | August 31, 2009         |   
|Mineral exploration and administration services                     | $ | 1,213,603               |   
|General administration and management services                      |   | 443,961                 |   
|Amounts forgiven by Tri-Con Group                                   |   | (600,000                | ) 
|                                                                    | $ | 1,057,564               |   
|Amount of total charges in excess (shortage)
      of cost incurred | $ | (143,690                | ) 
|Percentage of excess (shortage) amount charged                      |   | (13.59                  | )%

(b) Consulting Agreement

Effective April 1, 2009, a consulting agreement was signed
between the Company and a private company controlled by a director of the
Company. Pursuant to the agreement, the Company agreed to pay the private
company CDN $7,500 plus GST per month for corporate planning, business
development and investor relations services, as requested by the Company.

Note 5  Mineral Properties and Mineral Rights

The Company holds interests in four groups of mineral
properties in Alaska, U.S.A. All of these properties are in the exploration
stage and have no proven reserves as of August 31, 2009; with the exception of
the Nolan property, which does have a probable reserve. It requires a more
extensive feasibility study to ascertain if such reserve can be classified as a
proven reserve.

Pursuant to EITF 04-02, Whether Mineral Rights are Tangible
or Intangible Assets and Related Issues, the Company, retroactively
effective to June 1, 2004, capitalize the direct costs to acquire or lease
mineral properties and mineral rights as tangible assets. The direct costs
include the costs of signature (lease) bonuses, options to purchase or lease
properties, and brokers and legal fees. Since the Company has no proven
reserves on its properties as of August 31, 2009, the Company does not amortize
the capitalized mineral costs, but evaluates the capitalized mineral costs
periodically for impairment. A summary of such capitalized direct costs for the
nine months ended August 31, 2009 and for the fiscal year ended November 30,
2008 is as follows:

Nolan
    
    
    Ester Dome
    
    
    Hammond
    
    
    Eagle CreekCapitalized Mineral Rights:
    
    (a)
    
    
    (b)
    
    
    (c)
    
    
    (d)
    
    
    TotalBalance as of November 30,
      2007
    $
    582,439
    
    $
    24,837
    
    $
    350,000
    
    $
    55,040
    
    $
    1,012,316Additions during the year:Claim fees paid during the year
    
    75,880
    
    
    6,885
    
    
    7,500
    
    
    10,010
    
    
    100,275Royalty payments
    
    -
    
    
    -
    
    
    50,000
    
    
    5,000
    
    
    55,000Accrued mineral rights
    
    -
    
    
    -
    
    
    30,000
    
    
    -
    
    
    30,000Balance as of November 30, 2008
    
    658,319
    
    
    31,722
    
    
    437,500
    
    
    70,050
    
    
    1,197,591Additions during the period:Claim fees paid
      during the period
    
    85,540
    
    
    140
    
    
    8,400
    
    
    -
    
    
    94,080Royalty payments
    
    -
    
    
    -
    
    
    -
    
    
    5,000
    
    
    5,000Accrued mineral
      rights
    
    -
    
    
    -
    
    
    80,000
    
    
    -
    
    
    80,000Balance as of August 31, 2009
    
    743,859
    
    $
    31,862
    
    $
    525,900
    
    $
    75,050
    
    $
    1,376,671


11

---

|SILVERADO GOLD MINES LTD. AND ITS SUBSIDIARIES        
|------------------------------------------------------
|(An Exploration Stage Company)                        
|NOTES TO THE INTERIM CONSOLIDATED FINANCIAL STATEMENTS
|as of August 31, 2009 (Unaudited)                     
|(Stated in United States Dollars)                     
|                                                      

Note 5  Mineral Properties and Mineral Rights (Continued)

(a) Nolan Gold Project, Wiseman Mining District, Alaska

The Nolan Gold Project consists of 5 contiguous claim groups
covering approximately 6 square miles, 8 miles west of Wiseman and 175 miles
north of Fairbanks, Alaska. In addition, The Clara Creek and Marion Creek claim
groups are located approximately 1.5 and 3 miles north of Coldfoot, Alaska, and
are situated near the Dalton Highway. Both Clara Creek and Marion Creeks are
left limit tributaries to the Middle Fork of the Koyukuk River.

In total, the Company owns a 100% interest in 204 federal
placer mining claims and 407 federal lode claims in the Nolan Gold Project. The
specific claim groups at this site are as follows:

| | i)   | Nolan Placer: This claim group consists of 148 unpatented
      federal placer claims.                                                                                                                        
| | ---- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |      |                                                                                                                                                                                                               
| | ii)  | Thompsons Pup: This claim group consists of 6 unpatented
      federal placer claims and is subject to a royalty of 3% of net profits on
      80% of production.                                            
| |      |                                                                                                                                                                                                               
| | iii) | Dionne (Marys Bench): This claim group consists of 15
      unpatented federal placer claims.                                                                                                                
| |      |                                                                                                                                                                                                               
| | iv)  | Smith Creek: This claim group consists of 28 unpatented
      federal placer claims.                                                                                                                          
| |      |                                                                                                                                                                                                               
| | v)   | Marion Creek and Clara Creek: This claim group consists
      of 2 unpatented federal placer mining claims located on Marion Creek and 5
      unpatented federal placer mining claims located on Clara Creek.
| |      |                                                                                                                                                                                                               
| | vi)  | Nolan Lode: this claim group consists of 407 unpatented
      federal lode claims. The lode claims overlie much of the placer
      properties, and extend beyond them.                                       

During the nine-month period ended August 31, 2009, the Company
paid federal mining claim fees of $85,540 to the Bureau of Land Management
(BLM). During the fiscal year ended November 30, 2008, the Company paid
federal mining claim fees of $76,375 to BLM and received a refund of $495 from
BLM for a 2007 overpayment.

(b) Ester Dome Gold Project, Fairbanks Mining District,
Alaska

The Ester Dome Gold Project encompasses all of the Companys
properties on Ester Dome, which is accessible by road 10 miles northwest of
Fairbanks, Alaska. The specific properties at this site are as follows:

| | i)   | Grant Mine: This property consists of 26 state mineral
      claims subject to payments of 15% of net profits until $2,000,000 has been
      paid and 3% of net profits thereafter. The mill has remained inactive
      since February 1989 and the plant and equipment cost was written down to
      zero on our accounting records. During fiscal 2008 and the nine months
      ended August 31, 2009, the work on the Grant Mine was limited to
      assessment work. The Company paid current year federal mining claim fees
      of $140 to BLM and will pay the necessary state mining claim fees before
      such fees become due. The Company will continue with assessment
    work.
| | ---- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |      |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     
| | ii)  | May (St. Paul)/Barelka: This gold property consists of 22
      state mineral claims subject to payments of 15% of net profits until
      $2,000,000 (inflation indexed from 1979) has been paid and 3% of net
      profits thereafter.                                                                                                                                                                                                                                                                                                                                                                                                                                                           
| |      |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     
| | iii) | Dobbs: This property consists of 1 unpatented federal
      mineral claim and 4 state mineral claims subject to payments of 15% of net
      profits until $1,500,000 has been paid and 3% of net profits
      thereafter.                                                                                                                                                                                                                                                                                                                                                                                                                                                                        

12

---

|SILVERADO GOLD MINES LTD. AND ITS SUBSIDIARIES        
|------------------------------------------------------
|(An Exploration Stage Company)                        
|NOTES TO THE INTERIM CONSOLIDATED FINANCIAL STATEMENTS
|as of August 31, 2009 (Unaudited)                     
|(Stated in United States Dollars)                     
|                                                      

Note 5  Mineral Properties and Mineral Rights (Continued)

(b) Ester Dome Gold Project, Fairbanks Mining District,
Alaska (Continued)

During the nine-month period ended August 31, 2009, the Company
paid federal mining claim fees of $140 to BLM. There were no state mining claim
fees due during the period. During the fiscal year ended November 30, 2008, the
Company paid state mining claim fees of $6,760 to the State of Alaska Department
of Natural Resources and federal mining claim fees of $125 to BLM.

(c) Hammond Property, Wiseman Mining District, Alaska

This property consists of 24 Federal placer claims and 36
Federal lode claims covering one and one-half square miles and adjoining the
Nolan Gold Properties. The Company is obligated to pay a royalty equal to 10% of
gross production and is subject to a minimum royalty of $80,000 per year. At
August 31, 2009, capitalized mineral rights of $525,900 (November 30, 2008:
$437,500) for the Hammond property, including royalty accruals totalling
$470,000 (November 30, 2008: $390,000), are unpaid, in arrears, and included in
mineral claims payable on the accompanying consolidated balance sheets. During
the nine months ended August 31, 2009, the Company accrued $80,000 of minimum
royalties payable and paid federal mining claim fees of $8,400 to BLM. During
the fiscal year ended November 30, 2008, the Company accrued $30,000 and paid
$50,000 of minimum royalties, and paid federal mining claim fees of $7,500 to
BLM.

(d) Eagle Creek Property, Fairbanks Mining District, Alaska

This property consists of 77 state mineral claims. The Company
owns a 50% interest and has an option agreement to purchase a 100% interest in
the property for $400,000, of which $43,000 remains to be paid. A payment in the
amount of $5,000 is due on August 1 of each year until the remaining $43,000 is
paid, with such yearly payment required to be paid to keep the option agreement
in good standing. During the nine-month period ended August 31, 2009, the
Company made the required $5,000 option payment for the year. There were no
state mining claim fees due during the period. During the fiscal year ended
November 30, 2008, the Company paid $10,010 of state mining claim fees and a
$5,000 option payment.

Note 6  Property, plant and equipment

Property, plant and equipment are stated at cost. Depreciation
and amortization is provided on a straight line basis as follows:

Mining equipment
    10
      yearsAuto
      and trucks
    5
      yearsComputer software
    1
      yearComputer equipment
    3
      yearsLeaseholds improvements
    Duration of lease (5-7 years)Furniture and Fittings
    10
      years


Property, plant and equipment primarily include mining
equipment and camp facilities at the Nolan Gold Project. Leasehold improvements
are for both the Vancouver, British Columbia and Fairbanks, Alaska offices.
Assets currently in construction are segregated and will be reclassified as
depreciable assets as soon as they are put into use.

13

---

|SILVERADO GOLD MINES LTD. AND ITS SUBSIDIARIES        
|------------------------------------------------------
|(An Exploration Stage Company)                        
|NOTES TO THE INTERIM CONSOLIDATED FINANCIAL STATEMENTS
|as of August 31, 2009 (Unaudited)                     
|(Stated in United States Dollars)                     
|                                                      

Note 6  Property, plant and equipment (Continued)

A summary of the Companys property, plant and equipment at
August 31, 2009 is as follows:

|                                |   | August
      31, 2009 | 
|------------------------------- | - | --------------------- | 
|                                |   |                       | 
|                                |   |                       | 
|                                |   | Cost                  | 
|Offices                         |   |                       | 
|Office leasehold improvements   | $ | 597,557               | 
|Computer equipment and software |   | 136,169               | 
|Furniture and fittings          |   | 394,358               | 
|                                |   |                       | 
|Mining Project                  |   |                       | 
|Nolan gold project buildings    |   | 63,000                | 
|Leasehold improvements          |   | 48,123                | 
|Nolan mining equipment          |   | 1,069,510             | 
|Auto and trucks                 |   | 19,193                | 
|Capital assets in construction  |   | 24,245                | 
|                                |   |                       | 
|                                | $ | 2,352,155             | 

A summary of the Companys property, plant and equipment at
November 30, 2008 is as follows:

|                                |   | November
      30, 2008 | 
|------------------------------- | - | ----------------------- | 
|                                |   |                         | 
|                                |   |                         | 
|                                |   | Cost                    | 
|Offices                         |   |                         | 
|Office leasehold improvements   | $ | 597,557                 | 
|Computer equipment and software |   | 134,167                 | 
|Furniture and fittings          |   | 394,358                 | 
|                                |   |                         | 
|Mining Project                  |   |                         | 
|Nolan gold project buildings    |   | 63,000                  | 
|Leasehold improvements          |   | 48,123                  | 
|Nolan mining equipment          |   | 1,869,301               | 
|Auto and trucks                 |   | 63,009                  | 
|Capital assets in construction  |   | 24,245                  | 
|                                |   |                         | 
|                                | $ | 3,193,760               | 

14

---

|SILVERADO GOLD MINES LTD. AND ITS SUBSIDIARIES        
|------------------------------------------------------
|(An Exploration Stage Company)                        
|NOTES TO THE INTERIM CONSOLIDATED FINANCIAL STATEMENTS
|as of August 31, 2009 (Unaudited)                     
|(Stated in United States Dollars)                     
|                                                      

Note 7  Accounts Payable and Accrued Liabilities

Accounts payable and accrued liabilities consist of:

August 31, 2009
    
    
    November 30, 2008Accounts payable and accrued
      payables
    $
    783,346
    
    $
    440,633Accrued interest
    
    -
    
    
    120,827$
    783,346
    
    $
    561,460


The accrued interest payable of $120,827 as of November 30,
2008 relates to the convertible debentures (see Note 8  Convertible Debentures,
below). The Company accrued an additional $2,800 of interest payable during the
fiscal quarter ended February 28, 2009. The accrued interest payable along with
the balance due on convertible debentures was taken into other income during the
fiscal quarter ended May 31, 2009.

Note 8  Convertible Debentures

On March 1, 2001, Silverado completed negotiations to
restructure convertible debentures totaling $2,000,000. Replacement debentures
totaling $2,564,400 were issued in consideration of cancellation of the original
debentures plus all accrued interest to March 1, 2001. As of November 30, 2004
the replacement debentures were repaid in full. Certain of the original
convertible debentures, reflecting an aggregate principal amount of $140,000,
were not exchanged for replacement debentures as the Company had been
unsuccessful in its extensive attempts to locate the holders of such
securities.

The Company has been advised by Canadian legal counsel that any
claims relating to the debt arising from such unexchanged debentures is barred
by operation of the British Columbia Limitation Act. As a result, the Company
has taken into other income the full value of the principal and accrued interest
of such unexchanged convertible debentures in the amounts of $140,000 and
$123,627, respectively, for a total of $263,627 during the fiscal quarter ended
May 31, 2009.

Note 9  Asset Retirement Obligation

The asset retirement obligation relates to the closure and
reclamation of the Grant Mine Tailing Pond, and to the reclamation work
associated with the Nolan Gold Project consisting of dismantling and removal of
site structures and equipment, and reshaping and revegetating the disturbed
areas. The Company has no assets legally restricted for purposes of settling
asset retirement obligations. The Nolan Gold and Antimony Properties are covered
under the State of Alaska Department of Natural Resources Statewide Bond Pool.
However, the facilities at the Grant Mine including the Tailings Pond were
constructed prior to the establishment of the State of Alaska Department of
Natural Resources Statewide Bond Pool.

15

---

|SILVERADO GOLD MINES LTD. AND ITS SUBSIDIARIES        
|------------------------------------------------------
|(An Exploration Stage Company)                        
|NOTES TO THE INTERIM CONSOLIDATED FINANCIAL STATEMENTS
|as of August 31, 2009 (Unaudited)                     
|(Stated in United States Dollars)                     
|                                                      

Note 9  Asset Retirement Obligations (Continued)

Grant Mine

The Grant Mine is not an active mine and related assets were
written off as impaired effective December 1, 2001. The retirement obligations
associated with the Grant Mine involves the decommissioning of the Grant Mill
Tailings Pond that was built in the early 1980s and no longer used after 1989.
The Company has retained a geotechnical and environmental consulting firm to
assist with a preliminary report for the closure of the tailings pond. The
preliminary report is part of the closure plan, and further reclamation work
involves another closure phase that needs permits and/or approval by State of
Alaska regulatory agencies. Thus, the fair value of the cost of reclamation at
this time is the original $364,651 as of November 30, 2008 plus a 5% annual
accretion expense. Also, the Company is currently reviewing documentation from
independent licensed environmental and engineering companies that were involved
in geochemical and geotechnical studies and land surveying of the tailings pond
and tailings impoundment to better establish the reclamation cost. The Company
is working on a new cost analysis for the closure of the tailings pond. The
Company should have the new cost analysis for the closure of the tailings pond
by the end of the fiscal year.

Nolan Gold Project

The retirement obligations associated with the Nolan mineral
properties are associated with the reclamation of disturbed land resulting from
normal operations and are not the result of improper operations of an asset such
as environmental remediation liabilities and thus are within the scope of SFAS
143. The Nolan mineral properties are subject to federal mining claims and thus
are under the active supervision of the Bureau of Land Management.

As of August 31, 2009, the Company is obligated to reclaim 21
acres at Nolan Creek. These 21 acres are essential for the Companys operations,
consisting of the camp area, equipment storage area, processing area, explosives
storage area, and the portal area, as well as the roads and core storage area.
The Company estimated that accrued obligations plus 5% annual accretion expense
would be sufficient to reclaim these 21 acres for a potential third party
remediation clean-up. During the nine months ended August 31, 2009, the Company
spent $2,101 (for the fiscal year ended November 30, 2008: $18,518) on
reclamation at the Nolan property.

A summary of asset retirement obligations for the nine months
ended August 31, 2009 and for the fiscal year ended November 30, 2008 is as
follows:

| |                            |   | Grant   |  |   | Nolan   |   |   |         |  
| | -------------------------- | - | ------- |  | - | ------- | - | - | ------- | -
| |                            |   | Mine    |  |   | Project |   |   | Total   |  
| | Balance, November 30, 2007 | $ | 347,287 |  | $ | 182,024 |   | $ | 529,311 |  
| | Accretion expense          |   | 17,364  |  |   | 9,101   |   |   | 26,465  |  
| | Liabilities settled        |   | -       |  |   | (18,518 | ) |   | (18,518 | )
| | Balance, November 30, 2008 |   | 364,651 |  |   | 172,607 |   |   | 537,258 |  
| | Accretion expense          |   | 13,674  |  |   | 6,473   |   |   | 20,147  |  
| | Liabilities settled        |   | -       |  |   | (2,101  | ) |   | (2,101  | )
| | Balance, August 31, 2009   | $ | 378,325 |  | $ | 176,979 |   | $ | 555,304 |  

16

---

|SILVERADO GOLD MINES LTD. AND ITS SUBSIDIARIES        
|------------------------------------------------------
|(An Exploration Stage Company)                        
|NOTES TO THE INTERIM CONSOLIDATED FINANCIAL STATEMENTS
|as of August 31, 2009 (Unaudited)                     
|(Stated in United States Dollars)                     
|                                                      

Note 10  Common Stock

The authorized common stock of the Company consists of an
unlimited number of common shares, without par value. The following is a summary
of the Companys issuances of common stock during the nine-month period ended
August 31, 2009:

|                                                                             |  | Number of     |  |   | Common Stock |  
|---------------------------------------------------------------------------- |  | ------------- |  | - | ------------ | -
|                                                                             |  | Shares        |  |   | Amount       |  
|Balance as of November 30, 2008                                              |  | 977,437,101   |  | $ | 94,718,072   |  
|Shares issued for cash:                                                      |  |               |  |   |              |  
|Private
      placement at $0.003833 per share                               |  | 18,260,870    |  |   | 70,000       |  
|Private placement at
      $0.004 per share                                  |  | 19,250,000    |  |   | 77,000       |  
|Private
      placement at $0.0025 per share                                 |  | 38,000,000    |  |   | 95,000       |  
|Private placement at
      $0.01 per share                                   |  | 53,000,000    |  |   | 530,000      |  
|Private
      placement at $0.01 per unit (1 unit = 1 share and 1 warrant)   |  | 23,400,000    |  |   | 234,000      |  
|Private placement at
      $0.01 per unit (1 unit = 1 share and 1/2 warrant) |  | 44,500,000    |  |   | 445,000      |  
|Commissions paid                                                             |  | -             |  |   | (34,500      | )
|Total shares issued for cash                                                 |  | 196,410,870   |  |   | 1,416,500    |  
|Shares issued for consulting
      fees and other expenses:                  |  |               |  |   |              |  
|Shares issued at $0.0125,
      January 2009                                 |  | 26,000,000    |  |   | 325,000      |  
|Shares
      issued at $0.03, January 2009                                   |  | 25,000,000    |  |   | 750,000      |  
|Shares issued at $0.0085,
      February 2009                                |  | 6,000,000     |  |   | 51,000       |  
|Shares
      issued at $0.01, February 2009                                  |  | 2,000,000     |  |   | 20,000       |  
|Shares issued at $0.0051,
      February 2009                                |  | 6,555,000     |  |   | 33,427       |  
|Shares
      issued at $0.0087, February 2009                                |  | 15,000,000    |  |   | 130,500      |  
|Shares issued at
      $0.00333, February 2009                               |  | 3,109,800     |  |   | 10,356       |  
|Shares
      issued at $0.0125, March 2009                                   |  | 29,000,000    |  |   | 362,500      |  
|Shares issued at
      $0.00644, March 2009                                  |  | 2,112,069     |  |   | 13,606       |  
|Shares
      issued at $0.013, April 2009                                    |  | 15,000,000    |  |   | 195,000      |  
|Shares issued at $0.0122,
      May 2009                                     |  | 357,965       |  |   | 4,367        |  
|Shares
      issued at $0.01063, June 2009                                   |  | 505,927       |  |   | 5,378        |  
|Shares issued at $0.012,
      June 2009                                     |  | 30,000,000    |  |   | 360,000      |  
|Shares
      issued at $0.01491, July 2009                                   |  | 729,809       |  |   | 10,885       |  
|Shares issued at $0.018,
      August 2009                                   |  | 5,000,000     |  |   | 90,000       |  
|Shares
      issued at $0.014, August 2009                                   |  | 20,000,000    |  |   | 280,000      |  
|Shares issued at
      $0.01697, August 2009                                 |  | 342,343       |  |   | 5,808        |  
|Shares issued for commitment
      fees at $0.0096, May 2009                 |  | 100,000,000   |  |   | 960,000      |  
|Total shares issued for non-cash items                                       |  | 286,712,913   |  |   | 3,607,827    |  
|Balance as of August 31, 2009                                                |  | 1,460,560,884 |  | $ | 99,742,399   |  

17

---

|SILVERADO GOLD MINES LTD. AND ITS SUBSIDIARIES        
|------------------------------------------------------
|(An Exploration Stage Company)                        
|NOTES TO THE INTERIM CONSOLIDATED FINANCIAL STATEMENTS
|as of August 31, 2009 (Unaudited)                     
|(Stated in United States Dollars)                     
|                                                      

Note 10  Common Stock (Continued)

The following is a summary of the Companys issuances of common
stock for the fiscal year ended November 30, 2008:

|                                                                        |  | Number of   |  |   | Common Stock |  
|----------------------------------------------------------------------- |  | ----------- |  | - | ------------ | -
|                                                                        |  | Shares      |  |   | Amount       |  
|                                                                        |  |             |  |   |              |  
|Balance as of November 30, 2007                                         |  | 785,607,717 |  | $ | 89,374,641   |  
|Shares issued for cash:                                                 |  |             |  |   |              |  
|Private
      placement at $0.03 per share                              |  | 35,000,000  |  |   | 1,050,000    |  
|Private placement at
      $0.0325 per share                            |  | 80,698,459  |  |   | 2,622,700    |  
|Common
      stock purchase warrants exercised at $0.035, December 2007 |  | 16,513,024  |  |   | 577,956      |  
|Common stock purchase
      warrants exercised at $0.035, January 2008  |  | 1,484,563   |  |   | 51,960       |  
|Common
      stock purchase warrants exercised at $0.035, February 2008 |  | 4,166,667   |  |   | 145,833      |  
|Common stock purchase
      warrants exercised at $0.0125, October 2008 |  | 21,166,671  |  |   | 264,583      |  
|Commissions paid                                                        |  | -           |  |   | (409,601     | )
|Total shares issued for cash                                            |  | 159,029,384 |  |   | 4,303,431    |  
|Shares issued for consulting
      fees:                                |  |             |  |   |              |  
|Shares issued at $0.06,
      January 2008                              |  | 500,000     |  |   | 30,000       |  
|Shares
      issued at $0.10, February 2008                             |  | 1,800,000   |  |   | 180,000      |  
|Shares issued at $0.06,
      February 2008                             |  | 500,000     |  |   | 30,000       |  
|Shares
      issued at $0.03, August 2008                               |  | 8,000,000   |  |   | 240,000      |  
|Shares issued at $0.03,
      September 2008                            |  | 4,000,000   |  |   | 120,000      |  
|Shares
      issued at $0.03, October 2008                              |  | 13,000,000  |  |   | 390,000      |  
|Shares issued at $0.01,
      November 2008                             |  | 5,000,000   |  |   | 50,000       |  
|Total shares issued for
      consulting fees                           |  | 32,800,000  |  |   | 1,040,000    |  
|Balance as of November 30, 2008                                         |  | 977,437,101 |  | $ | 94,718,072   |  

(a) Private Placements

For nine-month period ended August 31, 2009

During the nine-month period ended August 31, 2009, the Company
completed private placements resulting in the issuance of an aggregate of
18,260,870 common shares at $0.0038 per share, 19,250,000 common shares at
$0.004 per share, 38,000,000 common shares at $0.0025 per share and 18,500,000
common shares at $0.01 per share. The Company received aggregate proceeds of
$427,000 from such private placements.

In addition, during the nine-month period ended August 31,
2009, the Company completed private placements resulting in the issuance of
34,500,000 common shares at a price of $0.01 per share. This private placement
generated proceeds of $345,000 from the sale of shares related to the Equity
Line of Credit Agreement (see Note 10(c), below). In accordance with the Equity
Line of Credit Agreement, the Company paid commission fees of $34,500 which was
recorded as a reduction of common stock.

18

---

|SILVERADO GOLD MINES LTD. AND ITS SUBSIDIARIES        
|------------------------------------------------------
|(An Exploration Stage Company)                        
|NOTES TO THE INTERIM CONSOLIDATED FINANCIAL STATEMENTS
|as of August 31, 2009 (Unaudited)                     
|(Stated in United States Dollars)                     
|                                                      

Note 10  Common Stock (Continued)

(a) Private Placements (Continued)

During the nine-month period ended August 31, 2009, the Company
completed private placements resulting in the issuance of an aggregate of
23,400,000 units at $0.01 per unit. Each unit consisted of one share of common
stock and one common stock purchase warrant exercisable for a number of
additional shares of common stock equal to the number of units purchased, at a
per share exercise price of $0.02 within the one year period commencing from the
date of the subscription agreement. The Company received proceeds of $234,000
from such private placements. During the nine-month period ended August 31,
2009, the Company also completed private placements resulting in the issuance of
an aggregate of 44,500,000 units at $0.01 per unit. Each unit consisted of one
share of common stock and one half-warrant, with a full warrant (consisting of
two half-warrants) being exercisable for one share of common stock at a per
share exercise price of $0.02 within the one year period commencing from the
date of the subscription agreement. The Company received proceeds of $445,000
from such private placements.

As of August 31, 2009, the Company also received $70,000 for
the sale of an aggregate of 7,000,000 units at a price of $0.01 per unit. Each
unit consisted of one share of common stock and one common stock purchase
warrant exercisable for a number of additional shares of common stock equal to
the number of units purchased, at a per share exercise price of $0.02 within the
one year period commencing from the date of the subscription agreement. These
private placements were not completed as of August 31, 2009, as shares had not
been issued as of such date, but the purchase price received has been reflected
as subscriptions received in stockholders equity in the accompanying balance
sheet. The Company completed such private placements subsequent to August 31,
2009, as disclosed in Note 14  Subsequent Events (a), below.

For the fiscal year ended November 30, 2008

During the fiscal year ended November 30, 2008, the Company
completed private placements resulting in the issuance of an aggregate of
35,000,000 units at $0.03 per unit and 80,698,459 units at $0.0325 per unit.
Each unit consisted of one share of the Companys restricted common stock and
one half-warrant, with a full warrant (consisting of two half-warrants) being
exercisable for a period of one year at a per share exercise price of $0.07. The
Company received gross proceeds of $3,672,700 from such private placements, of
which $275,136 cash was received before the fiscal year ended November 30, 2007.
In addition, the Company received $1,040,332 from the issuance of 43,330,925
restricted shares of its common stock through warrant exercises during fiscal
year 2008. The Company paid commission fees of $409,601, which was recorded as a
reduction of common stock.

(b) Common Stock Issued for Consulting Fees

During the nine-month period ended August 31, 2009, the Company
entered into several consulting agreements for various corporate planning and
business development services. Pursuant to these consulting agreements, the
Company issued an aggregate of 186,712,913 shares of the Companys common stock
for consulting fees and other expenses, valued at the fair market price at the
dates of various consulting agreements and related agreements, for total
consideration of $2,647,827, of which $1,908,036 was recorded as consulting fees
and $739,791 was recorded as prepaid expenses based on the terms of the
consulting agreements. These shares were issued under the Companys Equity
Compensation Plans (See Note 11(a)  Equity Compensation Plans, below).

19

---

|SILVERADO GOLD MINES LTD. AND ITS SUBSIDIARIES        
|------------------------------------------------------
|(An Exploration Stage Company)                        
|NOTES TO THE INTERIM CONSOLIDATED FINANCIAL STATEMENTS
|as of August 31, 2009 (Unaudited)                     
|(Stated in United States Dollars)                     
|                                                      

Note 10  Common Stock (Continued)

(c) Common Stock Issued as Commitment Fee Under Equity Line
of Credit

During the fiscal year ended November 30, 2008, the Company
issued an aggregate of 32,800,000 shares of the Companys common stock in
payment of consulting fees, valued at the fair market price at the dates of the
consulting agreements, for total consideration of $1,040,000, of which $706,500
was recorded as consulting fees and $333,500 was recorded as prepaid expenses
based on the terms of the consulting agreements. $333,500 of prepaid consulting
fees was subsequently expensed during the nine-month period ended August 31,
2009.

On May 6, 2009, the Company entered into an Equity Line of
Credit Agreement with an accredited investor (the Investor), pursuant to which
the Company may sell to the Investor, if certain conditions are met, up to
$100,000,000 in shares of its common stock over the term of the agreement,
unless earlier terminated.

Upon execution, the Company issued to the Investor 100,000,000
shares of the Companys common stock as payment of a commitment fee, with such
shares valued at the fair market price at the date of issuance ($0.0096 per
share on May 6, 2009). Such shares were deemed fully earned as of the date of
the agreement and therefore the fair market value of such shares ($960,000) was
included in consolidated statements of operations and other comprehensive loss
for the nine months ended August 31, 2009.

As of August 31, 2009, the Company raised $345,000 from the
Investor pursuant to the sale of an aggregate of 34,500,000 common shares at a
price of $0.01 per share and paid related commission fees of $34,500 (see Note
10(a)  Private Placements, above).

Note 11  Stock Options, Equity Compensation Plans and
Common Stock Purchase Warrants

(a) Stock Options and Equity Compensation Plans

On January 29, 2009, the Company adopted the 2009 Equity
Compensation Plan (the 2009 Plan) to encourage certain directors, officers,
employees, and consultants of the Company to acquire and hold stock in the
Company as an added incentive to remain with the Company, to increase their
efforts in promoting the interests of the Company and to enable the Company to
attract and retain capable individuals. The number of shares issued under the
Plan may not exceed 130,000,000 in aggregate. On January 29, 2009, the Company
filed a registration statement on Form S-8 to register all 130,000,000 of such
shares.

On June 1, 2009, the Company adopted the 2009-II Equity
Compensation Plan (the 2009-II Plan) to encourage certain directors, officers,
employees, and consultants of the Company to acquire and hold stock in the
Company as an added incentive to remain with the Company, to increase their
efforts in promoting the interests of the Company and to enable the Company to
attract and retain capable individuals. The number of shares issued under the
Plan may not exceed 80,000,000 in aggregate. On June 1, 2009, the Company filed
a registration statement on Form S-8 to register all 80,000,000 of such
shares.

During nine months ended August 31, 2009, there were no options
granted. Pursuant to several consulting agreements, the Company issued an
aggregate of 186,712,913 shares of the Companys common stock under the
Companys Equity Compensation Plans in payment of consulting fees and other
expenses, valued at the fair market price on the effective dates of the
consulting agreements or based on share price terms in the agreements.

There was no Stock Option Plan adopted and no options granted
by the Company during the fiscal year ended November 30, 2008. During the fiscal
year 2008, the Company issued an aggregate of 32,800,000 shares of the Companys
common stock in payment of consulting fees under the Companys Equity
Compensation Plans adopted in fiscal year 2007.

20

---

|SILVERADO GOLD MINES LTD. AND ITS SUBSIDIARIES        
|------------------------------------------------------
|(An Exploration Stage Company)                        
|NOTES TO THE INTERIM CONSOLIDATED FINANCIAL STATEMENTS
|as of August 31, 2009 (Unaudited)                     
|(Stated in United States Dollars)                     
|                                                      

Note 11  Stock Options, Equity Compensation Plans and
Common Stock Purchase Warrants (Continued)

(a) Stock Options and Equity Compensation Plans (Continued)

A summary of the change in outstanding and exercisable stock
options for the nine-month period ended August 31, 2009 and for the fiscal year
ended November 30, 2008 is as follows:

|                              |  |                 |   |   |                 |  |  | Weighted         | 
|----------------------------- |  | --------------- | - | - | --------------- |  |  | ---------------- | 
|                              |  | Outstanding and |   |   | Weighted        |  |  | Average          | 
|                              |  | Exercisable     |   |   | Average         |  |  | Remaining        | 
|                              |  | Options         |   |   | Excercise Price |  |  | Contractual Life | 
|Balance, November 30, 2007    |  | 72,500,000      |   | $ | 0.06            |  |  | 4.43 years       | 
|Options cancelled and expired |  | (2,100,000      | ) |   | 0.11            |  |  |                  | 
|                              |  |                 |   |   |                 |  |  |                  | 
|Balance, November 30, 2008    |  | 70,400,000      |   |   | 0.06            |  |  | 3.47 years       | 
|Options cancelled and expired |  | (22,200,000     | ) |   | 0.06            |  |  |                  | 
|                              |  |                 |   |   |                 |  |  |                  | 
|Balance, August 31, 2009      |  | 48,200,000      |   | $ | 0.06            |  |  | 2.97 years       | 

The balance of outstanding and exercisable common stock options
as at August 31, 2009 is as follows:

Number of Options
    
    RemainingOutstanding and
    
    Contractual LifeExercisable
    Exercise Price
    (Years)33,900,000
    $            
      0.050
    1.36 - 3.3514,300,000
    0.070
    3.3748,200,000


Fair Value Determination

The Company uses the Black-Scholes option pricing model to
calculate the fair value of stock options when the options are granted under the
following weighted average assumptions:

Expected volatility is based on historical volatility. Because
trading tends to be thin, in relation to the total shares outstanding, average
weekly stock prices were used to calculate volatility. Management believes that
the annualized weekly average of volatility is the best measure of expected
volatility.

U.S. Treasury constant maturity rates were utilized with
maturities most closely approximating the expected term of the option.

The expected term of the options was calculated using the
alternative simplified method permitted by SAB 107, which defines the expected
life as the average of the contractual term of the options and the weighted
average vesting period for all option tranches.

There were no stock options granted and valued during the
nine-month period ended August 31, 2009 and the fiscal year ended November 30,
2008.

21

---

|SILVERADO GOLD MINES LTD. AND ITS SUBSIDIARIES        
|------------------------------------------------------
|(An Exploration Stage Company)                        
|NOTES TO THE INTERIM CONSOLIDATED FINANCIAL STATEMENTS
|as of August 31, 2009 (Unaudited)                     
|(Stated in United States Dollars)                     
|                                                      

Note 11  Stock Options, Equity Compensation Plans and
Common Stock Purchase Warrants (Continued)

(b) Common Stock Purchase Warrants

During the nine-month period ended August 31, 2009, 40,349,230
of the Companys outstanding common stock purchase warrants expired and
45,650,000 common stock purchase warrants were granted by the Company upon the
completion of private placements as of August 31, 2009. Each common stock
purchase warrant granted during the period is exercisable for one share of
common stock at a per share exercise price of $0.02 within the one year period
commencing from the date of the subscription agreement.

In September 2008, the Company reduced the exercise price of
3,666,667 of its common stock purchase warrants from $0.10 to $0.0125 per common
share and 17,500,004 of its common stock purchase warrants from $0.07 to $0.0125
per common share, and all of such warrants were exercised in October 2008.

In November 2007, the Company reduced the exercise price of
16,513,024 of its common stock purchase warrants from $0.12 to $0.035 per common
share, and such warrants were exercised in December 2007. In December 2007, the
Company reduced the exercise price of 990,001 of its common stock purchase
warrants from $0.12 to $0.035 per common share and 495,001 of its common stock
purchase warrants from $0.06 to $0.035 per common share, of which a total of
1,484,563 warrants were exercised in January 2008, and the remaining 439
warrants expired. In December 2007, the Company reduced the exercise price of
4,166,667 of its common stock purchase warrants from $0.10 to $0.035 per common
share, and such warrants were exercised in February 2008.

During fiscal years 2007 and 2008, the Company completed
private placements resulting in the issuance of units consisting of one share of
Company restricted common stock and one half-warrant (with each whole warrant
exercisable for one share of Company restricted common stock). The warrants
referenced above were issued during such private placements. There was no value
assigned to these warrants when they were granted. The exercise price reduction
incentivized the holders to exercise the warrants, which assisted the Company in
meeting its working capital requirements. The Company received less proceeds
from these exercised warrants due to the price reductions, but the Company
believes these warrants would have been left to expire had the Company not
effected the exercise price reductions.

A summary of the change in common stock purchase warrants for
the nine months ended August 31, 2009 and for the fiscal year ended November 30,
2008 is as follows:

|                           |  |             |   |   | Weighted        |  |  | Weighted Average | 
|-------------------------- |  | ----------- | - | - | --------------- |  |  | ---------------- | 
|                           |  | Outstanding |   |   | Average         |  |  | Remaining        | 
|                           |  | Warrants    |   |   | Excercise Price |  |  | Contractual Life | 
|Balance, November 30, 2007 |  | 62,013,003  |   | $ | 0.110           |  |  | 0.32 years       | 
|Warrants issued            |  | 57,849,234  |   |   | 0.070           |  |  |                  | 
|Warrants exercised         |  | (43,330,925 | ) |   | 0.024           |  |  |                  | 
|Warrants expired           |  | (36,182,082 | ) |   | 0.108           |  |  |                  | 
|Balance, November 30, 2008 |  | 40,349,230  |   |   | 0.070           |  |  | 0.17 years       | 
|Warrants issued            |  | 45,650,000  |   |   | 0.020           |  |  |                  | 
|Warrants expired           |  | (40,349,230 | ) |   | 0.070           |  |  |                  | 
|Balance, August 31, 2009   |  | 45,650,000  |   | $ | 0.020           |  |  | 0.86
      years | 

22

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|SILVERADO GOLD MINES LTD. AND ITS SUBSIDIARIES        
|------------------------------------------------------
|(An Exploration Stage Company)                        
|NOTES TO THE INTERIM CONSOLIDATED FINANCIAL STATEMENTS
|as of August 31, 2009 (Unaudited)                     
|(Stated in United States Dollars)                     
|                                                      

Note 11  Stock Options, Equity Compensation Plans and
Common Stock Purchase Warrants (Continued)

(b) Common Stock Purchase Warrants (Continued)

The balance of outstanding and exercisable common stock
purchase warrants as at August 31, 2009 is as follows:

Number of
    
    RemainingWarrants
    Exercise
    Contractual LifeOutstanding
    Price
    (Years)45,650,000
    $         0.020
    0.64 - 0.99


Note 12  Supplemental Cash Flow Information

|                                                                              |   | Nine
      Months Ended | 
|----------------------------------------------------------------------------- | - | ----------------------- | 
|                                                                              |   | August 31, 2009         | 
|Changes in non-cash financing and investing
      activities:                 |   |                         | 
|Common stock issued for consulting and
      other expenses                   | $ | 1,908,036               | 
|Common stock issued for
      commitment fees                                 |   | 960,000                 | 
|Common stock issued for prepaid consulting
      fees                         |   | 739,791                 | 
|Common shares issued for
      subscriptions received                         |   | -                       | 
|Mineral claims royalty payable changes
      at period-end for mineral rights |   | 80,000                  | 
|                                                                              |   |                         | 
|Other cash flow information:                                                  |   |                         | 
|Interest paid                                                                 | $ | 7,230                   | 

Note 13  Commitments

a) Change of Control Agreement and Indemnity Agreements with
Directors

The Company has entered into a change of control agreement with
a director and principal executive officer of the Company. The agreement
provides for severance arrangements where a change of control of the Company
occurs, as defined, and such director is terminated.

In October 2008, the Company entered into Indemnity Agreements
(Agreements) with three directors, Garry L. Anselmo, James F. Dixon and Stuart
McCulloch, a related party, (collectively, the Directors). Pursuant to the
terms of the Agreements, the Company granted a general indemnification to the
Directors against all claims and costs that arise out of the scope or
performance of duties as a director or officer of the Company.

b) Office Lease

The Company entered into a seven year office lease agreement
expiring in July 2014 for its Vancouver office when obliged to vacate its
previous lease location at the expiry of the lease. The Companys future minimum
lease payments under this lease are as follows:

23

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|SILVERADO GOLD MINES LTD. AND ITS SUBSIDIARIES        
|------------------------------------------------------
|(An Exploration Stage Company)                        
|NOTES TO THE INTERIM CONSOLIDATED FINANCIAL STATEMENTS
|as of August 31, 2009 (Unaudited)                     
|(Stated in United States Dollars)                     
|                                                      

Note 13  Commitments (Continued)

b) Office Lease (Continued)

| | Fiscal years ending November 30, 2009 -
      2010 | $ | 154,602 | 
| | -------------------------------------------------- | - | ------- | 
| | Fiscal year ending November 30, 2011               |   | 123,682 | 
| | Fiscal year ending November 30, 2012               |   | 125,268 | 
| | Fiscal year ending November 30, 2013               |   | 128,439 | 
| | Fiscal year ending November 30, 2014               |   | 85,626  | 
| |                                                    | $ | 617,617 | 

Note 14  Subsequent Events

Subsequent to August 31, 2009, the following events took place:

|(a) | The Company completed private placements resulting in the
      issuance of an aggregate of 39,000,000 units at $0.01 per unit. Such units
      consist of 39,000,000 shares and 32,750,000 common stock purchase
      warrants. Each common stock purchase warrant is exercisable for an
      additional share of common stock at a per share exercise price of $0.02
      within the one year period commencing from the date of the subscription
      agreement. The Company recorded $5,000 of commission fees payable to a
      third party.
|--- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        
|(b) | The Company received $80,000 in consideration for the
      sale of an aggregate of 8,000,000 units at a price of $0.01 per unit.
      These private placements have not yet been completed as shares have not
      been issued.                                                                                                                                                                                                                                                                                                                     
|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        
|(c) | On October 6, 2009, the Company issued 333,618 common
      shares at a price of $0.0175 per share for a total of $5,838 in payment of
      investor relation consulting fees, pursuant to a consulting
    agreement.                                                                                                                                                                                                                                                                                                                                
|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        
|(d) | In preparing the Companys consolidated financial
      statements, management has evaluated events subsequent to August 31, 2009
      through October 15, 2009.                                                                                                                                                                                                                                                                                                                                                                                      

24

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ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL
CONDITION AND RESULTS OF OPERATIONS

The following is a discussion of the operating results and
financial position of Silverado Gold Mines Ltd. (Silverado or the Company)
for the nine months ended August 31, 2009. It should be read in conjunction with
the Companys audited consolidated financial statements and footnotes for the
fiscal year ended November 30, 2008 and the interim unaudited consolidated
financial statements for the nine-month period ended August 31, 2009.

All financial information in this Managements Discussion and
Analysis (MD&A) is expressed and prepared in conformity with US generally
accepted accounting principles. All references are in US dollar, the Companys
reporting currency, unless otherwise noted. Some numbers in this MD&A have
been rounded to the nearest thousand for discussion purposes.

Certain forward-looking statements are discussed in this
MD&A with respect to the Companys activities and future financial results,
which are made based upon managements current expectations and beliefs. There
can be no assurance that future developments affecting the Company will be those
anticipated by management.

FORWARD-LOOKING STATEMENTS

The information in this Quarterly Report on Form 10-Q
contains forward-looking statements within the meaning of Section 27A of the
Securities Act of 1933, as amended, and Section 21E of the Securities Exchange
Act of 1934, as amended. These forward-looking statements involve risks and
uncertainties, including statements regarding Silverados capital needs,
business plans and expectations. Such forward-looking statements involve risks
and uncertainties regarding the market price of gold, availability of funds,
government regulations, common share prices, operating costs, capital costs,
outcomes of gold recovery activities and other factors. Forward-looking
statements are made, without limitation, in relation to operating plans,
property exploration and gold recovery activities, availability of funds,
environmental reclamation, operating costs and permit acquisition. Any
statements contained herein that are not statements of historical facts may be
deemed to be forward-looking statements. In some cases, you can identify
forward-looking statements by terminology such as "may", "seek", "should",
"expect", "plan", "intend", "anticipate", "believe", "estimate", "predict",
"potential" or target", the negative of such terms or other comparable
terminology. Actual events or results may differ materially. In evaluating these
statements, you should consider various factors, including the risks outlined
below, and, from time to time, in other reports Silverado files with the
Securities Exchange Commission (the SEC). These factors may cause actual
results to differ materially from any forward-looking statement. Management
disclaims any obligation to publicly update these statements, or disclose any
difference between its actual results and those reflected in these statements.
The information constitutes forward-looking statements within the meaning of the
Private Securities Litigation Reform Act of 1995. Given these uncertainties,
readers are cautioned not to place undue reliance on such forward-looking
statements.

OVERVIEW

The Company is engaged in the acquisition and exploration of
mineral properties in the State of Alaska, through its wholly-owned subsidiary,
Silverado Gold Mines Inc., and is involved with the development of a new
environmentally friendly low-rank coal-water fuel (LRCWF) technology
through its other wholly-owned subsidiary, Silverado Green Fuel, Inc.

The Company has committed over three decades of work to the exploration,
  development and test mining of gold properties throughout North America. In
  the mid-1980s, the Company decided to focus its efforts in Alaska. We have extensive
  experience in geological, geochemical and geophysical exploration techniques.
  Our mineral holdings are located in the Fairbanks Mining District and in the
  Koyukuk Mining District, consisting of both lode and placer mining claims. At
  the present time, the Companys primary focus is the exploration and development
  of our Nolan Gold and Antimony Project and our Hammond Gold Property located
  175 miles north of Fairbanks, Alaska. We are also continuing with exploration
  activities on our Eagle Creek Gold and Antimony Property and our Ester Dome
  Gold Project, which are both located in the Fairbanks Mining District.

25

---

The Company has also been working for seven years through its
LRCWF division on the development of LRCWF, a non-toxic liquid fuel
product derived from sub-bituminous and lignite coal. In its finished form the
fuel would be a non-toxic, non-hazardous environmentally friendly strategic
(liquid) fuel. Silverado is seeking financing to enable us to proceed with the
construction of a commercial demonstration facility designed to document the
combustion characteristics of Green Fuel. A successful demonstration project
could lead to construction of a commercial production facility to manufacture
the low-rank coal-water fuel as a replacement fuel for oil fired boilers and
utility generators. In addition we look forward to our continued planning and
progress designed to create a secondary fuel and other product facility designed
to gasify and liquefy our green fuel to facilitate the creation of low cost
rocket fuel, aviation fuel, gasoline, diesel fuel, synthetic natural gas,
synthetic petrochemical feedstocks, hydrogen for fuel cells, plastic,
fertilizers, explosives, urea, ammonia CO2 for enhanced recovery in oil well
production as well as a host of other products, all free of sulphur, heavy
metals and particulate matter.

MINERAL EXPLORATION

The Company is a mineral exploration company with interests in
properties located throughout the state of Alaska. The majority of such
properties are in the early stages of exploration, and there is no assurance
that a commercially viable mineral deposit exists on such properties.

The Company holds interests in the following four groups of
mineral properties in Alaska:

|1) | Nolan property;          
|-- | -------------------------
|   |                          
|2) | Hammond Property;        
|   |                          
|3) | Eagle Creek Property; and
|   |                          
|4) | Ester Dome Property.     

Based on the completion of a preliminary feasibility study by
an independent and AIPG Certified Professional Geologist (the QP), our Nolan
Gold and Antimony Lode Project has disclosed an economically viable mineral
reserve. The preliminary feasibility study, entitled Update of Mineral Resource
and Reserve Estimates and Preliminary Feasibility Study, Workmans Bench
Antimony-Gold Lode Deposit, Nolan Creek, Wiseman B-1 Quadrangle, Koyukuk Mining
District, Northern Alaska, January 1, 2009 (the Technical Report), concluded
that the resource estimates disclosed by the Company in its Current Report on
Form 8-K filed with the SEC on November 17, 2008 can be reclassified as a
probable reserve. Though there were no material changes to the grades and
quantities previously reported on November 17, 2008, there was additional data
produced that added new grades and there was further work conducted on this zone
that resulted in the aforementioned reclassification.

In response to comments received from the British Columbia Securities
  Commission (BCSC) in May 2009, the Company amended the Technical Report to reflect
  additional data. A copy of the amended Technical Report, dated June 1, 2009,
  was filed on June 3, 2009 on SEDAR and EDGAR, and can also be found at the Companys
  website at www.silverado.com. The measured reserve estimates on
  Workmans Bench, on which the pre-feasibility study was based, have not
  changed. Certain material changes are shown below:

26

---

The Economic Analysis Chapter (Section 18.9) was clarified by
the QP in the amended Technical Report to include: 1) an explanation of metal
price forecasts; 2) analysis of depreciation and sunken costs; 3) a review of
the effect of variable interest rates on the economic model; and 4) multiple
scenarios for the Base Cash Flow case study.

Overall mineral exploration performance during the nine-month
period ended August 31, 2009 and managements plan of operations for each
property are discussed below.

1. NOLAN GOLD AND ANTIMONY PROPERTY

The Company owns a 100 percent interest in numerous mining
claims on the Nolan Creek Project. As of August 31, 2009, the Companys Nolan
Gold Project consist of 204 unpatented, federal placer mining claims covering
approximately 4,080 acres in three non-contiguous groups, and 407 unpatented
federal lode mining claims covering approximately 8,140 acres in one large
contiguous group. Many of the 407 lode mining claims are superimposed over the
placer mining claims.

The majority of the properties comprising our Nolan Gold
Project are adjacent to or within the Nolan Creek Valley, located approximately
8 miles northwest of the small town of Wiseman, and 175 air miles north of
Fairbanks, Alaska in the southern foothills of the Brooks Range. Centrally
located in the historic Koyukuk Mining District, Nolan Creek is a southerly
flowing tributary to Wiseman Creek which flows southeasterly into the Middle
Fork of the Koyukuk River. An all weather road connects the Nolan Creek Camp
with the Dalton Highway and is suitable year-round for semi-tractors loaded with
fuel and equipment. Air transportation is available by several commercial
carriers from Fairbanks to the 4,500 ft long, state maintained Coldfoot Airport.
The community of Coldfoot Alaska is about 15 miles south-southeast of Nolan, and
has Alaskas northernmost gas station, grocery, and public lodging.

All of the Nolan Gold Project properties are on federal land
and located within the Wiseman B-1 Quadrangle. All of the mineral claims, with
the exception noted below, are in the SE 1⁄4, Township 31 North, Range 12 West,
the NE 1⁄4, Township 30 North, Range 12 West, and SW 1⁄4, Township 31 North, Range
11 West, Fairbanks Meridian.

In addition to the Nolan Creek properties, Silverado also has
two smaller placer claim groups on Clara Creek and Marion Creek, located 1.5 and
3 miles north respectively of the town of Coldfoot, Alaska, situated near the
Dalton Highway.

Under Silverados ownership since 1982, a total of 23,153
ounces of placer gold was recovered from channel and bench deposits in the Nolan
Valley through 2006. The largest nugget recovered to date weighed 41.35 ounces
and was valued at US$16,000 by weight. It sold for US$50,000. Most nuggets
recovered at Nolan Valley are suitable for jewelry.

Placer deposits at Nolan Creek can be found in frozen gravel
  beds (ancient channel deposits) some of which can be mined year round. Test
  mining can be carried out by underground methods during the coldest winter months,
  and by surface methods most of the year. In the summer months when the gravel
  has thawed, snow melt water is available for gold recovery by hydraulic sluicing.
  The sluicing process uses only gravity and water within a closed circuit, ensuring
  that there is zero discharge to the environment. Lands disturbed by mining are
  fully reclaimed. The Company operates under 11 combined federal and state permits.

27

---

The Company currently is in a transitional phase between
exploration and development on this property. The preliminary feasibility study,
effective January 1, 2009 and amended on June 1, 2009 to reflect additional
data, supported a probable mineral reserve of antimony and gold underlying the
southwestern portion of the Solomon Shear Zone, an area referred to by the
Company as Workmans Bench. The study by the Companys QP concluded that the
Nolan Gold and Antimony Project in the Workmans Bench area are economically
viable. The results of the January 2009 preliminary feasibility study and the
reserve estimates are disclosed in the Companys Annual Report on Form 10-KSB
filed on March 16, 2009 and the Companys website: www.silverado.com.

The measured reserve estimates on Workmans Bench, on which the
pre-feasibility study was based, have not changed in the amended June 1, 2009
Technical Report. The QP chose to modify inferred Sb and Au resources estimates
on the Pringle Bench upon further review of the distance between drill control
points used in a polygonal analysis of the inferred resources on Pringle bench.
The June 1, 2009 amended inferred resource estimates for the Pringle Bench and
Nolan areas are shown below:

General Note Regarding Estimates

The following information should be considered in connection
with our estimates below, which we are disclosing in accordance with applicable
SEC standards and regulations:

- Assumed Prices of US $700/oz for gold and US $2.25/lb for antimony.
- Process Recovery Rates of 85% for antimony and 90% for gold (as provided
  by Hazen Research from work done on an underground bulk sample from the D
  tunnel of the Workmans Bench A vein and using gravity and water recovery
  systems only).
- Estimated Operating Costs of US $375/ton, based on operation of a 92 ton
  per day underground mine.

A cutoff grade of 4% antimony was used in our analysis. A 4%
cutoff grade should be regarded as 4% antimony equivalent. No cutoff grade was
used for gold, as antimony was the primary commodity being examined, and none of
the resource polygons contained less than 0.05 oz/ton gold.

Cautionary Note to Investors concerning estimates of
Probable Reserve

Readers are cautioned that the following estimates are under
the category of a probable reserve and they are not a proven reserve, which
requires a higher degree of feasibility study. These values are based off of a
preliminary feasibility sturdy, which is not the same as a legal feasibility
study.

Silverados Probable Lode Mineral Reserves, Nolan Creek
  Ares

|Reserve Category | Cut-Off Grade (% Sb) | Quantity (tons) | Grade (% Sb) | Metal (ton Sb) | Grade (oz/ton Au) | Metal (oz Au)
|---------------- | -------------------- | --------------- | ------------ | -------------- | ----------------- | -------------
|Probable         | 4.0                  | 42,412          | 28.00        | 11,880         | 0.408             | 17,300       

|Notes: |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               
|------ | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|       |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               
|      | The effective date of these
        resources is January 1, 2009                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              
|      | Rounding may result in some
        discrepancies.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            
|      | No processing recovery factors
        have been applied to these resource figures.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           
|      | The unit ton refers to short
        tons.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    
|      | Cut-off grade is 4.0% Sb equivalent,
        which the combined values of gold plus antimony expressed in terms of
        antimony alone.                                                                                                                                                                                                                                                                                                                                                                                                                                                                  
|      | Assay results for the 2009 drilling
        program received thus far have been disclosed in three press releases
        on September 3rd, 4thand 22nd. The grades
        and resource estimates above do not reflect these new assays. Additional
        assay results of drill core are pending and the antimony and gold resources
        will significantly change to reflect the new assay results. The new resource
        estimates will be determined by the QP. The additional assay results and
        any new resource estimates will be disclosed on the Company website (www.silverado.com)

28

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Cautionary Note to U.S. Investors concerning estimates of
Inferred Resources

The following table uses the term inferred resources.
Silverado advises U.S. investors that while this term is recognized and required
by Canadian regulations (under National Instrument 43-101 Standards of
Disclosure for Mineral Projects), the U.S. Securities and Exchange Commission
does not recognize this term. U.S. investors are cautioned not to assume that
any part or all of mineral deposits in these categories will ever be converted
into reserves.

Silverados Amended, Inferred Lode Mineral Resources, Nolan
Creek Area

|Resource Category | Cut-off grade (% Sb) | Quantity (ton) | Grade (% Sb) | Metal (ton Sb) | Grade (oz/ton Au) | Metal (oz Au)
|----------------- | -------------------- | -------------- | ------------ | -------------- | ----------------- | -------------
|Inferred          | 4.0                  | 24,077         | 12.45        | 2,997.6        | 0.245             | 5,894.7      

|Notes: |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               
|------ | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|       |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               
|      | The effective date of these
        resources is January 1, 2009; amended June 1, 2009.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       
|      | Rounding may result in some
        discrepancies.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            
|      | No processing recovery factors
        have been applied to these resource figures.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           
|      | The unit ton refers to short
        tons.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    
|      | Cut-off grade is 4.0% Sb equivalent,
        which is the combined values of gold plus antimony expressed in terms
        of antimony                                                                                                                                                                                                                                                                                                                                                                                                                                                                      
|      | Assay results for the 2009 drilling
        program received thus far have been disclosed in three press releases
        on September 3rd, 4thand 22nd. The grades
        and resource estimates above do not reflect these new assays. Additional
        assay results of drill core are pending and the antimony and gold resources
        will significantly change to reflect the new assay results. The new resource
        estimates will be determined by the QP. The additional assay results and
        any new resource estimates will be disclosed on the Company website (www.silverado.com)

Summary of Amended Inferred Antimony and Gold resources from
A and West Zones, Pringle Bench

|Category             | Cut-Off Grade (% Sb) | Quantity (tons) | Grade (% Sb) | Metal (ton Sb) | Grade (oz/ton Au) | Metal (oz Au)
|-------------------- | -------------------- | --------------- | ------------ | -------------- | ----------------- | -------------
|A Vein Inferred    | 4.0                  | 737             | 29.13        | 214.7          | 0.113             | 83.4         
|West Vein Inferred | 4.0                  | 1,951           | 9.86         | 192.3          | 0.049             | 94.7         
|TOTALS               | 4.0                  | 2,688           | 15.14        | 407.0          | 0.067             | 178.1        



|Notes: |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               
|------ | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|       |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               
|      | The effective date of these resources is January
      1, 2009; amended June 1, 2009                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          
|      | Rounding may result in some
        discrepancies.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            
|      | No processing recovery factors
        have been applied to these resource figures.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           
|      | The unit ton refers to short
        tons.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    
|      | Cut-off grade is 4.0% Sb equivalent,
        which is the combined values of gold plus antimony expressed in terms
        of antimony                                                                                                                                                                                                                                                                                                                                                                                                                                                                      
|      | Assay results for the 2009 drilling
        program received thus far have been disclosed in three press releases
        on September 3rd, 4thand 22nd. The grades
        and resource estimates above do not reflect these new assays. Additional
        assay results of drill core are pending and the antimony and gold resources
        will significantly change to reflect the new assay results. The new resource
        estimates will be determined by the QP. The additional assay results and
        any new resource estimates will be disclosed on the Company website (www.silverado.com)

The plan of operation for the Nolan Gold Project for the 2009
fiscal year is the continued advancement toward the development and mining stage
of our Nolan Gold and Antimony Project, especially along the southwestern end of
the Solomon Shear Zone in the Workmans Bench Area. The Workmans Bench area
already has a portal and 570 feet of underground tunnels that will be used to
access the subsurface during the extraction of a permitted 1,000 cubic yard bulk
sample of gold and antimony ore.

During the third quarter of the fiscal year ended August 31,
  2009, the Company continued implementing the recommendations of the preliminary
  feasibility study for the Workmans Bench gold and antimony deposit and
  the Pringle Bench gold and antimony deposit. The Company drilled 20 diamond
  drill holes at Nolan, totaling 4,992 ft. Nine holes, totaling 2,663 ft, were
  drilled into the Solomon Shear Zone along Workmans Bench. Eleven holes,
  totaling 2,329 ft, were drilled into the Solomon Shear Zone along Pringle Bench.
  Drill data combined with both ground and airborne geophysical data and soil
  geochemical data indicate that Workmans Bench and Pringle Bench are part
  of the same structural zone.

29

---

The 2009 drilling program was conducted to extend the lateral
and vertical extent of the gold and antimony mineralization along the Solomon
Shear Zone, which includes the more defined zones; A Zone, West Zone and B
Zone, which are potential resources. Silverado has now completed 71 diamond
drill core holes on the property since beginning the Project drill program in
2007. The 2009 drill program consisted of two phases. The first phase of
drilling involved expanding the current probable reserves of the Workmans Bench
gold and antimony deposit. The second phase of drilling involved not only
expanding the resources of the Pringle Bench area, but verifying that the gold
and antimony mineralized Solomon Shear Zone was a contiguous zone that extended
from Workmans Bench northeast across Pringle Bench and even further northeast
along strike across the newest prospect referred to by the Company as the
Hillside Area. These results may be viewed on our website at www.silverado.com under the loading news and under
news releases of September 3rd, 4th, and 22nd.

All diamond core drilling was performed by Tri-Con Mining Inc.
The core recovery averaged 90-95% in most drill holes. All drill core was logged
and photographed by contract geologists. Once all technical data was derived
from the core, the core was cut lengthwise. The half-core was sampled by
pre-determined intervals based on geology, and placed in sealed sample bags and
labeled with the assigned sample number. All samples were delivered to ALS
Chemex in Fairbanks for analysis. Individual sample shipments (batches) did not
exceed 20 samples, and each batch that was submitted to the lab contained two
(2) standard samples and one (1) blank sample for analysis. From time to time
the Company instructed the laboratory to assay duplicate samples of the pulp
from the drill core.

The first phase of the 2009 diamond drill season focused on
Workmans Bench, specifically on the southern extension of the Solomon Shear
Zones primary resource target known as the A Zone
antimony-quartz-carbonate-gold fault vein. The A Zone encompassed a probable
reserve based on 2007 and 2008 drill data, yet there remained over 250 vertical
feet of potential near surface antimony and gold mineralization, above the
current probable reserve, that had not been drilled into. The A zone remains
open to the south but a topographic survey during the early arctic summer
indicated a drill target of over 250 vertical feet, above the disclosed probable
reserve, that was not drilled into due to lack of heavy equipment access during
2007 and 2008. During 2009, eight of the nine holes drilled at Workmans Bench
intercepted the A Zone above the previously disclosed probable reserve.

The second phase of the 2009 drill program took place along
Pringle Bench and focused on intercepting the A Zone at depths below the 2007
drilled intercepts as well as along strike to the southwest and to the northeast
of previous drilling and trenching geochemical data. During 2009, ten of eleven
holes intercepted the A Zone at Pringle Bench. The Company is waiting on drill
core assay results of the other potential zones at Pringle Bench referred to as
the West and B and C zones.

Eighteen of the 20 holes intercepted the A zone during the
2009 drill program. Two of the holes were abandoned due to drilling difficulties
and therefore did not intercept any significant mineralization. Drill core assay
results of the 2009 drill program have been disclosed in Company news releases
on the 3rd, 4th, and 22nd of September, 2009,
but more assay results are pending. The drill core assay results could increase
the previous resource estimates for both the Workmans Bench and Pringle Bench
properties.

30

---

Readers and investors need to take caution that the Company QP
has not made a final determination of the resource estimates since assay results
are still pending. The QP will look at the spacing of drilled intercepts as well
as the type of mineralization and the geochemical assay results of the
intercepts before the final estimates are disclosed. The Company will release
additional assay results of the drill program as the results are received and
compiled.

Based on the new 2009 drill data, Company and contract
geologists along with the Company QP have confirmed that the gold and antimony
mineralized zones correlate with the surface geochemistry and geophysical data
that extends northeast past Pringle Bench along the strike through an area
referred to as the Hillside Lode Prospect. The Company has stated previously
that the Hillside Area was thought to be the source of the placer gold mined
from the gravel benches located along the left limit of Nolan Creek between
Smith and Archibald Creeks. The Hillside Lode Prospect is located uphill of the
gold-rich gravel benches mined by Silverado as recent as 2006.

In addition to the 2009 drill program, the Company has been
aggressively seeking permits and also compiling various studies by numerous
contractors to meet application requirements for ongoing permits. In order for
the project to advance to the development stage at Nolan, the permitting process
involves various characterization studies. Some of these studies are seasonally
dependent and some require time periods that can delay the permitting process.
The baseline water quality sampling which began in June of 2008 and was halted
due to freezing temperatures during October of 2008 was continued in early June
of 2009. The last baseline water sample for 2009 will be collected in late
September or early October.

The access road into the Nolan Creek camp as well as the 26 man
camp facility received construction upgrades in preparation for the 1,000 cubic
yard bulk ore sample that the Company has been permitted to sample. Essential to
the bulk sample program and future development is the environmental baseline and
characterization studies that include Acid Rock Drainage studies also known as
acid-base accounting, as well as the water quality baseline sampling. Samples of
the ore and wall rock gangue from various core intercepts and also wall rock
from the A zone were submitted by the QP to analytical labs for determination
of acid generating potential. The Companys QP has directed a third party
engineering firm to conduct various geotechnical studies of the wall rock and
ore rock.

The Company, as per the QP, began seeking a calcareous rock
unit that is accessible for extraction on the Nolan property. Permits for the
extraction of the calcareous rock will not be applied for until the Company has
verified that such a rock unit is accessible. The extraction of a calcareous
rock could be used as a buffering liner for temporary storage of waste rock that
may have acid generating potential.

During the next three months, Silverado will continue to
implement the recommendations of the preliminary feasibility study that was
completed by the Company QP Thomas K. Bundtzen. The QP will determine additional
resource estimates and these estimates will be disclosed to the public as soon
as they are completed by the QP. The QP will also oversee geotechnical studies
as well as the acid rock characterization study. The Company will continue
upgrades to the infrastructure at Nolan. The company plans to construct
additional access trails for drilling into the Hillside Zone and will perform
additional surveying for planning and design purposes. The Company will continue
with aggressive permitting and will seek additional capital needed for the
procurement of a pilot mill and equipment that will be used during the
extraction and processing of the permitted 1,000 cubic yard bulk sample of gold
and antimony ore.

In addition to the advice of the QP, Silverado will implement
  the advice and strategy of Mr. Peter Hooper who is a member of the Companys
  new Advisory Board. A brief resume of Mr. Hooper is listed in the August 24,
  2009 news release on Silverados website (www.Silverado.com). Mr.
  Hooper offers the scale of experience that the Company needs to move through
  the development stage and into the mining stage. The Companys Advisory
  Board was created to increase the Companys expertise in financing, mining
  and operations.

31

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During the next three months, Silverado plans to initiate lode
development in the Workmans Bench area as follows:

| | 1. | Continued aggressive permitting.                                                                                                                                                               
| | -- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | 2. | Compilation of all new 2009 drill data and assay results
      in an effort to further increase resource estimates along the gold and
      antimony mineralized Solomon Shear Zone.           
| | 3. | Baseline characterization studies for permitting
      purposes.                                                                                                                               
| | 4. | Acid and Base Accounting (ABA) for potential acid
      drainage issues.                                                                                                                       
| | 5. | Procurement of equipment and infrastructure upgrades
      needed for the underground extraction of a 1,000 cubic yard bulk
      sample.                                                      
| | 6. | Development of additional road infrastructure along the
      northern extension of the Solomon Shear Zone (Hillside Prospect) that has
      not been drilled by a diamond core drill to date.
| | 7. | Underground extraction of a bulk sample of antimony and
      gold ore for additional processing studies and
assays.                                                                           

We will be seeking to raise up to approximately $30,000,000 to
continue our exploration and permitting, while continuing and beginning mining
development activities on the Nolan Gold Project. The actual amount that we
spend on these projects will depend on the actual amount of funds that we are
able to raise. We are presently seeking to obtain sufficient financing to enable
us to proceed with these plans.

On July 6, 2009, the Company engaged the services of D&D
Securities Company as its investment banking firm for the purpose of raising
capital for its ongoing operations.

2. HAMMOND PROPERTY

Our Hammond property is located approximately 8 miles north of
Wiseman, and 175 air miles north of Fairbanks, Alaska in the foothills of the
Brooks Range in an area known as the Koyukuk Mining District. The Hammond
property is located approximately three miles northeast of the Nolan Gold
Project.

The Hammond property is accessible by the Trans-Alaska Pipeline
road about 280 road miles north of Fairbanks, Alaska. An all-weather 4x4 road
connects Hammond to the pipeline road.

The Company leases 24 federal placer mining claims and 36
federal lode mining claims from Alaska Mining Company, Inc. (Alminco). Alminco
has confirmed that our mineral claims and options are in good standing on the
understanding we will use our best efforts to pay the minimum royalty payments,
including the payments that are in arrears for the past four years, when
business conditions permit.

The encouraging drill results to date, the potential of
extending the Slisco Channel to the southeast plus the possibility of
discovering gold bearing tributary channels, make this a prospect for additional
discoveries. This project will require additional funding. Even if funding is
acquired, there is no assurance that a commercial gold bearing placer deposit
will be developed. Even if a gold bearing deposit is developed, additional
funding will be required to mine the deposit, and until a feasibility study is
completed, there is no assurance that the deposit will be profitable to
mine.

3. EAGLE CREEK PROPERTY

32

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The Eagle Creek property is comprised of 77 Alaska state
mineral claims. All claims are contiguous and are located in the Fairbanks North
Star Borough. The total area of the claims equals approximately 3080 acres and
all claims are valid. There has been no legal survey on the claims. Ownership of
the claims is in the name of Silverado Gold Mines Inc. There is an "option to
purchase" agreement with Arley Taylor (i.e., now with his descendants), to
purchase a 100% interest in the property for $400,000, of which $43,000 remains
to be paid. The amount of $5,000 per year is required to be paid to keep the
agreement in good standing. The original option agreement with Arley Taylor was
acquired through an agreement with S. Tan who assigned the agreement to us in
consideration of 15% royalty from production (15% of net operating profits after
payback of costs). We have continued to make option payments on the Eagle Creek
property based on the agreement, and as a result all of our mineral claims and
options are in good standing.

The Eagle Creek property is accessed by the Steese Highway, 10
miles north of Fairbanks, Alaska to Fox, Alaska, then traveling along the Elliot
highway 6 miles north to Murphy Dome Road, then west along Murphy Dome Road
about 5 miles to the property. The Number One Vein on this property was the lode
quartz gold structure that was historically mined commercially for antimony.

Historically, Eagle Creek was Alaskas second largest antimony
producer. In the late 1980s, Silverado built a 100 tons per day (TPD) gravity
plant and processed the old mine dumps, successfully selling all antimony
produced. In addition to the high-grade gold bearing quartz veins found on
Silverados large Eagle Creek property, the Company, in 2006, identified what
appeared to be a gold mineralized pluton which is a granitic or igneous (fire
formed) rock located on the claims above the placer gold Treasure Creek portion
of the property. This may lead to the development of a gold deposit, and may
make ideal feedstock for the Kinross Fort Knox mill nearby.

Annual assessment work will be carried out on the property to
keep the mining claims in good standing. Assessment work will be focused on the
northwest part of the claim block, where drilling and trenching has defined an
intrusive host rock, thought to be a sill, containing low grade gold, silver and
antimony mineralization. If funding permits, the Company will design a drilling
program to further investigate the gold and by-product mineral distribution of
the intrusive and the Number One Vein system.

No funding has been advocated for the 2009 work plan. Whereas
historic commercially viable mining took place on the Number One (or
"Scrafford") Vein, and whereas Silverado has successfully drilled and hit
significant widths of high-grade or massive stibnite (antimony sulfide) and
significant widths with good gold grades, it has nonetheless yet to complete a
definitive drilling program sufficient to indicate reserves, and therefore there
is no assurance that a commercially viable economic mineral deposit exists on
the property.

4. ESTER DOME PROPERTY

The Ester Dome property is comprised of 52 state mineral claims
and 1 unpatented federal mineral claim. The claims are not all contiguous in
that there are 5 separate blocks of claims. Silverado Gold Mines Inc. is the
registered owner of all claims. The total area of all claims equals
approximately 2.5 square miles and all claims are valid. There has been no legal
survey on the claims.

Access to the property is provided by the paved Ester Dome road
and a well-maintained gravel road. The main line of the Alaska Railroad passes
by the west perimeter of the property and a high capacity electrical line
carrying power to the Fort Knox mill passes 300 feet below the Grant Mill on the
property.

Reclamation work to complete the closure of the Grant Mill Tailings
  Pond is in the permitting stages. The earthwork construction required to close
  the tailings pond requires permits issued by the Alaska Department of Environmental
  Conservation. The Company has commissioned a third party environmental and engineering
  firm to assist with the permitting process. A cost analysis of the tailings
  pond closure is under review by the Company and by a third party environmental
  and geotechnical engineering firm. The pond is filled to capacity, and will
  be capped and decommissioned after final approval of the tailings pond closure
  plan is received from State of Alaska regulatory agencies. There will be limited
  field work on the property during the summer of 2009, which will consist of
  small scale surveys and minor geochemical studies.

33

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Due to the current price of gold, the Company is considering
whether to increase exploration efforts on the property. Currently, however, the
Company is primarily focused on the continued exploration and future development
of the Nolan Gold and Antimony Project in northern Alaska.

There is no assurance that further exploration will result in a
final evaluation that a commercially viable mineral deposit exists on any of
Silverados mineral properties (excluding the Nolan Property).

LOW-RANK COAL WATER FUEL PROJECT

The Company commenced development of a low-rank coal-water fuel
business in 2000. The determination to enter into this business was based on a
decision to broaden our business beyond mineral exploration and production. This
aspect of this business is still in the start-up phase of operations and no
revenues have been achieved to date. The Company does not anticipate that
revenues from this technology will be achieved until commercialization of the
technology has been established.

The Company is currently having a $150,000 study conducted on
the chemical and physical characteristics of Mississippi Red Hills Lignite Coal
at the Mineral Industry Research Laboratory at the University of Alaska
(Fairbanks) and expects results by late 2009. Results of the tests as well as
capital availability and an increase in oil prices would all have to be present
and sufficient for the Company to proceed with further development of the LRCWF
project.

LIQUIDITY AND CAPITAL RESOURCES

The Companys cash inflow has been generated mainly from sales
of shares of the Companys common stock, gold sale proceeds earned during the
exploration stage, debentures and loans. The Companys continuing operations as
intended are dependent on managements ability to raise required funding through
future equity or debt financings, asset sales or a combination thereof.

As of August 31, 2009, the Company had a deficit working
capital of $1,083,000 as compared to a deficit working capital of $1,294,000 as
of November 30, 2008. The Companys total assets for such periods were
$3,219,000 (November 30, 2008: $3,314,000) and the total current assets were
$772,000 (November 30, 2008: $484,000), respectively. Current assets consist of
$20,299 (November 30, 2008: $101,097) in cash and gold inventory and $751,367
(November 30, 2008: $383,358) in prepaid and other receivables. Included in
prepaid and other receivables were non-cash prepaid consulting fees of $739,791
(November 30, 2008: $333,500) paid by issuances of the Companys common stock.
The Company had cash and cash equivalents of $13,983 as of August 31, 2009 as
compared to cash and cash equivalents of $50,991 as of November 30, 2008.

The majority of the Companys assets are long-term or non-cash
in nature and thus considered being of lower liquidity. Included in current
liabilities is $1,071,000 due to related parties, which has been classified as
financing activities in the Companys cash flow statements. The Company has not
yet generated revenues since recommencement of the exploration stage from
December 1, 2001.

34

---

During the nine-month period ended August 31, 2009, the Company
raised $1,417,000 of net proceeds through completed private placements and
received $70,000 through uncompleted private placement subscriptions. During the
nine months ended August 31, 2009, the Company received $222,509 as a result of
mining equipment disposals and spent $99,080 of claim fees and a royalty payment
on the Companys mineral properties.

During the nine-month period ended August 31, 2008, the Company
raised $3,782,000 of net proceeds through completed private placements. The
Company paid $694,000 of outstanding payables due to related parties, namely the
Tri-Con Group, which was disclosed as financing activities. In addition, the
Company spent $139,000 of claim fees and royalty payments on the Companys
mineral properties and $308,000 on purchases of equipment.

The Company has been reviewing its budget and financing
requirements for its current business needs and the commencement of further
exploration and early stage production at its Nolan Creek property in Alaska.
With the extensive operations that the Company already has in place in Alaska,
the review is considered a management review of the already established budgets.
The primary objective is to ensure that development costs are still current and
that the budgets are up to date.

With the review and agreement of these budgets, the Company
will continue the current process of seeking to arrange financing of those
operational budgets, exploration and near term production to meet the
requirements of the work program. The Company has also commenced discussions
with various finance groups for its senior financing requirements for the Nolan
Creek project.

During the nine months ended August 31, 2009, The Company has
spent $654,000 on the Companys drilling program and mineral exploration. Our
plan of mining operations in Alaska anticipates that we will need to raise and
expend $10,000,000 during the fiscal year 2009. In addition, we intend to raise
and spend $100,000 on research and development for the Green Fuel project and
approximately $600,000 for the remaining three-month period on general and
administrative costs in the Companys Vancouver head office.

The Company expects to continue to be funded primarily from
equity financings. The ability of the Company to complete the exploration and
development of its mineral properties and the research and development of its
LRCWF project is dependent on the Companys ability to obtain the necessary
financing. There is no assurance that we will be able to raise the financing
necessary to enable us to implement our business plan.

RESULTS OF OPERATIONS  Three Months Ended August 31,
2009 and 2008

The Company has not yet generated revenues since recommencement
of the exploration stage from December 1, 2001. For the three months ended
August 31, 2009, we reported a net loss of $1,010,000, or $0.001 per share,
compared to a net loss of $2,716,000, or $0.003 per share for the three months
ended August 31, 2008. The major increase in the current quarter, as compared to
the same period in 2008, is $208,000 of consulting fees. Such increase was
mainly due to the increased consulting requirements related to the Companys
restructure, equity financing, development and expansion. Included in $559,202
of consulting fees for the three months ended August 31, 2009 was $556,000 of
non-cash consulting fees paid through the Companys common stock issued during
current and prior periods.

During the three months ended August 31, 2009, the Company wrote
  off $600,000 of payables due to the related party, Tri-Con Mining Inc., which
  was recorded as a decrease of related party charges in the consolidated statements
  of operations. In addition, for the three-month period ended August 31, 2009,
  the Companys exploration expenses decreased by $607,000, its related party
  charges in excess of incurred cost decreased by $846,000 (including $600,000
  payables written-off), and its other general and administrative expenses decreased
  by $730,000 as compared to the same period in 2008. The decreases are mainly
  due to cash limitations and the development of a restructuring plan that the
  Company is working on to fund its exploration and development activities.

35

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RESULTS OF OPERATIONS  Nine Months Ended August 31, 2009
and 2008

The Company has not yet generated revenues since recommencement
of the exploration stage from December 1, 2001 to August 31, 2009. For the nine
months ended August 31, 2009, we reported a net loss of $5,291,000, or $0.004
per share, compared to a net loss of $6,420,000, or $0.007 per share for the
nine months ended August 31, 2008. The major increases included in the net loss
for the nine-month period, as compared to the same period in 2008, are increases
of $1,362,000 for consulting fees, $32,000 for transfer agent and filing fees,
$174,000 for loss on disposal of mining equipment and $960,000 for non-cash
commitment fees paid through the Companys common stock. Such increases were
mainly due to the increased consulting requirements related to the Companys
efforts relating to restructuring, equity financing, development and expansion.
Included in $2,209,000 of consulting fees for the nine months ended August 31,
2009 was $2,148,000 of non-cash consulting fees paid through issuances of the
Companys common stock.

During the nine months ended August 31, 2009, the Company wrote
off $261,000 of convertible debentures and accrued interest, and $600,000 of
payables due to the related party, Tri-Con Mining Inc. For the nine-month period
ended August 31, 2009, the Companys exploration expenses decreased by
$1,318,000, its related party charges in excess of incurred cost decreased by
$1,084,000 (including $600,000 payables written-off), and its other general and
administrative expenses decreased by $1,263,000 as compared to the same period
in 2008. The decreases are mainly due to cash limitations and the development of
a restructuring plan that the Company is working on to fund its exploration and
development activities.

Currently the Company is in a transitional phase between
exploration and development at its Nolan gold and antimony property. Our ability
to complete the transition is dependent, in large part, upon our completing
additional equity financings.

RELATED PARTY TRANSACTIONS

1. Service Agreements

The Company has had related party transactions with Tri-Con
Mining Ltd., Tri-Con Mining Inc. and Tri-Con Mining Alaska Inc. (collectively
the Tri-Con Group), all of which are controlled by a director and officer of
the Company.

The Tri-Con Group is operations, exploration and development
contractors and has been employed by the Company under contracts since 1972 to
carry out all of the Companys fieldwork and to provide field administrative and
management services. Under the current contracts dated January 1, 1997, work is
charged at cost plus 25% for exploration and cost plus 15% for development and
mining. The term cost means out-of-pocket or actual cost incurred by Tri-Con
Group plus 15% for office overhead including stand-by and contingencies. There
is no mark-up on capital purchases. The Tri-Con Group does not charge the
Company for the services of any of its directors who are also directors of the
Company. In addition, per the terms of the agreements, the Company paid a base
administration fee of CDN $10,000 per month to Tri-Con Mining Ltd. and US
$10,000 per month to Tri-Con Mining Inc.

For the nine months ended August 31, 2009, the Tri-Con Groups
  services focused mainly on corporate planning; mining, drilling and engineering
  planning and preparation for production on the Companys Nolan property;
  equipment and property maintenance; and administration services at both the
  field and corporate offices. In recognition of the Companys cash flow
  constraints, the Tri-Con Group has forgiven payment on $600,000 of receivables
  due from the Company in June 2009. As of August 31, 2009, after the offset of
  the amount forgiven, Silverado owed $1,071,475 (November 30, 2008: $1,076,881)
  to the Tri-Con Group for exploration and administration services performed on
  behalf of Silverado.

36

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The following is a summary of Tri-Con Group charges for the
nine months ended August 31, 2009 and 2008:

|                                                                    |   | Nine
      Months Ended |   
|------------------------------------------------------------------- | - | ----------------------- | --
|                                                                    |   | August 31, 2009         |   
|Mineral exploration and administration services                     | $ | 1,213,603               |   
|General administration and management services                      |   | 443,961                 |   
|Write-off of charges                                                |   | (600,000                | ) 
|                                                                    | $ | 1,057,564               |   
|Amount of total charges in excess (shortage)
      of cost incurred | $ | (143,690                | ) 
|Percentage of excess (shortage) amount charged                      |   | (13.59                  | )%

2. Consulting Agreement

Effective April 1, 2009, a consulting agreement was signed
between the Company and a private company controlled by a director of the
Company. Pursuant to the agreement, the Company agreed to pay the private
company CDN $7,500 plus GST per month for corporate planning, business
development and investor relations services, as requested by the Company.

OFF-BALANCE SHEET ARRANGEMENTS

We have not entered into any off-balance sheet arrangements
that have or are reasonably likely to have a current or future effect on our
financial condition, changes in financial condition, revenues, or expenses,
results of operations, liquidity, capital expenditures, or capital resources and
would be considered material to investors.

CRITICAL ACCOUNTING POLICIES

Our critical accounting policies (the policies we believe are
most important to the presentation of our financial statements and require the
most difficult, subjective and complex judgments) are outlined in the Notes to
the Companys interim consolidated financial statements as of August 31, 2009.

37

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ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT
MARKET RISK

As a smaller reporting company, Silverado is not required to
provide the information required by this Item.

ITEM 4. CONTROLS AND PROCEDURES

As required by Rule 13a-15 under the Securities Exchange Act of
1934 (the Exchange Act), we carried out an evaluation of the effectiveness of
the design and operation of our disclosure controls and procedures and our
internal control over financial reporting as of August 31, 2009. This evaluation
was carried out under the supervision and with the participation of our Chief
Executive Officer and former Chief Financial Officer, Garry L. Anselmo and our
current Chief Financial Officer, Donald Balletto. Based upon that evaluation, it
was concluded that our disclosure controls and procedures and our internal
control over financial reporting are effective to ensure, among other things,
that the information required to be disclosed by us in the reports that we file
or submit under the Exchange Act is accumulated, recorded, processed,
communicated, and reported within the time periods specified by the rules and
forms of the Securities and Exchange Commission.

The term internal control over financial reporting is defined
as a process designed by, or under the supervision of, our principal executive
and principal financial officers, or persons performing similar functions, and
effected by our board of directors, management and other personnel, 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 and includes those policies and
procedures that:

| | a) | Pertain to the maintenance of records that in reasonable
      detail accurately and fairly reflect our transactions and dispositions of
      assets;                                                                                                                                                                                   
| | -- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |    |                                                                                                                                                                                                                                                                                                                                          
| | b) | Provide reasonable assurance that transactions are
      recorded as necessary to permit preparation of financial statements in
      accordance with generally accepted accounting principles, and that
      receipts and expenditures are being made only in accordance with
      authorizations of our management and directors; and
| |    |                                                                                                                                                                                                                                                                                                                                          
| | c) | Provide reasonable assurance regarding prevention or
      timely detection of unauthorized acquisition, use or disposition of our
      assets that could have a material effect on our financial
    statements.                                                                                                                       

During the nine months ended August 31, 2009, there were no
changes that had a material effect on, or are reasonably likely to affect, our
internal control over financial reporting.

38

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PART II

OTHER INFORMATION

ITEM 1.LEGAL PROCEEDINGS

The Company is not a party to any material pending legal
proceedings, nor is the Companys property the subject of any material pending
legal proceedings. The Company also is not aware of any material legal
proceedings being contemplated by a governmental authority.

ITEM 2.UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF
PROCEEDS

The Company has not sold any unregistered securities during the
period covered by this report other than those previously reported on a Current
Report on Form 8-K filed with the Securities and Exchange Commission.

ITEM 3.DEFAULTS UPON SENIOR SECURITIES

The Company is not currently in material default of
indebtedness that exceeds 5% of the total assets of the Company and its
consolidated subsidiaries.

ITEM 4.SUBMISSION OF MATTERS TO A VOTE OF SECURITY
HOLDERS

No matter was submitted by the Company to a vote of security
holders during the period covered by this Report.

ITEM 5.OTHER INFORMATION

None.

39

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ITEM 6.EXHIBITS

|Number | Description of Exhibit                                                                                                                                                                              
|------ | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|       |                                                                                                                                                                                                     
|3.1    | Articles of
        Incorporation of the Company (1)                                                                                                                                                
|3.2    | Amendment to Articles of Incorporation
        of the Company (2)                                                                                                                                   
|3.3    | Altered Memorandum
        of the Company (3)                                                                                                                                                       
|3.4    | Amendment to Articles of Incorporation
        of the Company (7)                                                                                                                                   
|4.1    | Share certificate
        representing common shares of the capital of the Company (1)                                                                                                              
|10.1   | Agreement for Conditional Purchase
        and Sale of Mining Property between the Company and Roger C. Burggraf
        dated October 6, 1978  Grant Mine Property (1)                            
|10.2   | Agreement for
        Conditional Purchase and Sale of Mining Property between the Company and
        Paul Barelka, Donald May and Mark Thoennes dated May 12, 1979  St.
        Paul Property (1)
|10.3   | Lease of Mining Claims with
        Option to Purchase between the Company and Alaska Mining Company, Inc.
        dated February 3, 1995  Hammond Property (4)                                    
|10.4   | Change of Control
        Agreement between the Company and Garry L. Anselmo dated May, 1995(6)                                                                                                     
|10.5   | Amendment to Change of Control
        Agreement between the Company and Garry L. Anselmo (6)                                                                                                       
|10.6   | Operating Agreement
        between the Company and Tri-Con Mining Ltd. Dated January 1, 1997 (5)                                                                                                   
|10.7   | Operating Agreement between
        the Company and Tri-Con Mining Inc. dated January 1, 1997 (6)                                                                                                   
|10.8   | Operating Agreement
        between the Company and Tri-Con Mining Alaska Inc. dated January 1, 1997
        (6)                                                                                    
|10.9   | Form of Warrant Exercise Agreement
        between the Company and certain of the selling security holders (8)                                                                                      
|10.10  | Form of Delay
        Agreement between the Company and certain of the Selling Shareholders
        (8)                                                                                             
|10.11  | 2006 Stock Option Plan (10)                                                                                                                                                                         
|10.12  | 2006-II Stock
        Option Plan (11)                                                                                                                                                              
|10.13  | 2007 Stock Option Plan (12)                                                                                                                                                                         
|10.14  | Shared Well
        Agreement between the Company and Sukakpak, Inc., dated May 17, 2007 (14)                                                                                                       
|10.15  | 2007-1 Equity Compensation Plan
        (13)                                                                                                                                                        
|10.16  | Lease Agreement
        between the Company and TA Properties (Canada) Ltd., dated March 30, 2007
        (15)                                                                                      
|10.17  | Indemnity Agreements between
        the Company and Garry L. Anselmo, Stuart C. McCulloch, and James F. Dixon,
        each dated October 27, 2008 (16)                                            
|10.18  | 2009 Equity
        Compensation Plan (17)                                                                                                                                                          
|10.19  | 2009-II Equity Compensation
        Plan (18)                                                                                                                                                       
|10.20  | Equity Line
        of Credit Agreement between the Company and Ashborne Finance Ltd.(19)                                                                                                           
|10.21* | Consulting
        Agreement between the Company and 1315781 Ontario Inc.                                                                                                                           
|14.1   | Code of Ethics
        (9)                                                                                                                                                                          
|31.1 * | Certification
        of Principal Executive Officer pursuant to Section 302 of the Sarbanes-
        Oxley Act of 2002                                                                             
|31.2 * | Certification
        of Principal Financial Officer pursuant to Section 302 of the Sarbanes-
        Oxley Act of 2002                                                                             
|32.1 * | Certification
        of Principal Executive Officer pursuant to 18 U.S.C. Section 1350, as
        adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002                               
|32.2 * | Certification
        of Principal Financial Officer pursuant to 18 U.S.C. Section 1350, as
        adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002                               

|(1)  | Filed as an exhibit to the Companys Registration
      Statement on Form 10 filed initially on May 11, 1984, as
amended.
|---- | -------------------------------------------------------------------------------------------------------------------------
|(2)  | Filed as an exhibit to the Companys Quarterly Report on
      Form 10-Q filed on July 15, 1997.                         
|(3)  | Filed as an exhibit to the Companys Current Report on
      Form 8-K filed on September 11, 2002.                       
|(4)  | Filed as an exhibit to the Companys Annual Report on
      Form 10-K for the fiscal year ended November 30, 1995.       
|(5)  | Filed as an exhibit to the Companys Annual Report on
      Form 10-K for the fiscal year ended November 30, 1996.       
|(6)  | Filed as an exhibit to the Companys Annual Report on
      Form 10-KSB for the fiscal year ended November 30, 2002.     
|(7)  | Filed as an exhibit to the Companys Current Report on
      Form 8-K filed on June 13, 2003.                            
|(8)  | Filed as an exhibit to the Companys Registration
      Statement on Form SB-2 filed on May 19, 2004.                    
|(9)  | Filed as an exhibit to the Companys Quarterly Report on
      Form 10-QSB filed on July 15, 2004.                       
|(10) | Filed as an exhibit to the Companys Registration
      Statement on Form S-8 filed on April 11, 2006.                   
|(11) | Filed as an exhibit to the Companys Registration
      Statement on Form S-8 filed on March 31, 2006.                   

40

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|(12) | Filed as an exhibit to the Companys Registration
      Statement on Form S-8 filed on February 20, 2007.           
|---- | --------------------------------------------------------------------------------------------------------------------
|(13) | Filed as an exhibit to the Companys Registration
      Statement on Form S-8 filed on September 7, 2007.           
|(14) | Filed as an exhibit to the Companys Annual Report on
      Form 10-KSB for the fiscal year ended November 30, 2007.
|(15) | Filed as an exhibit to the Companys Quarterly Report on
      Form 10-QSB filed on July 15, 2008.                  
|(16) | Filed as exhibits to the Companys Current Report on Form
      8-K filed on October 29, 2008.                      
|(17) | Filed as an exhibit to the Companys Registration
      Statement on Form S-8 filed on January 29, 2009.            
|(18) | Filed as an exhibit to the Companys Registration
      Statement on Form S-8 filed on June 1, 2009.                
|(19) | Filed as an exhibit to the Companys Current Report on
      Form 8-K filed on May 12, 2009.                        

*   
       Filed herewith.

41

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SIGNATURES

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 GOLD MINES LTD.                    
|---------------------- | ---------------------------------------------
|                       |                                              
|                       |                                              
|DATE: October 15, 2009 | /s/ Garry L. Anselmo                         
|                       | Garry L. Anselmo                             
|                       | President, Chief Executive Officer (Principal
|                       | Executive Officer)                           
|                       |                                              
|                       |                                              
|DATE: October 15, 2009 | /s/ Donald Balletto                          
|                       | Donald Balletto                              
|                       | Chief Financial Officer                      
|                       | (Principal Financial Officer)                

42

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