---

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 31,2010

or

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

For the transition period from: ___________to ___________

Commission File Number: 000-12132

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:
2,245,357,531 common shares, no par value, outstanding as of October 12,
2010.

1

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

INDEX

Quarterly Period Ended August 31, 2010

|           |                         |                                                                                                                                                                                                                                                                                    | Page 
|---------- | ----------------------- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | -----
|PART I     | FINANCIAL INFORMATION   |                                                                                                                                                                                                                                                                                   
|           |                         |                                                                                                                                                                                                                                                                                   
|           | ITEM 1                  | FINANCIAL STATEMENTS                                                                                                                                                                                                                                                               |      
|           |                         |                                                                                                                                                                                                                                                                                    |      
|           |                         | Consolidated
      Balance Sheets as of August 31, 2010 (unaudited) and November 30, 2009
      (audited)                                                                                                                                                                          | 3    
|           |                         |                                                                                                                                                                                                                                                                                    |      
|           |                         | Consolidated
      Statements of Operations and Other Comprehensive Loss for the three months
      and nine months ended August 31, 2010 and 2009, and for the period from
      December 1, 2001 (Recommencement of Exploration Stage) through August 31,
      2010 (unaudited) | 4    
|           |                         |                                                                                                                                                                                                                                                                                    |      
|           |                         | Consolidated
      Statements of Cash Flows for the nine months ended August 31, 2010 and
      2009, and for the period from December 1, 2001 (Recommencement of
      Exploration Stage) through August 31, 2010 (unaudited)                                                     | 5    
|           |                         |                                                                                                                                                                                                                                                                                    |      
|           |                         | Notes
      to the Consolidated Financial Statements as of August 31, 2010 (unaudited)                                                                                                                                                                                             | 6-26 
|           |                         |                                                                                                                                                                                                                                                                                    |      
|           | ITEM
      2            | MANAGEMENT'S
      DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS                                                                                                                                                                                        | 27-39
|           |                         |                                                                                                                                                                                                                                                                                    |      
|           | ITEM
      3            | QUANTITATIVE
      AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK                                                                                                                                                                                                                   | 39   
|           |                         |                                                                                                                                                                                                                                                                                    |      
|           | ITEM
      4            | CONTROLS
      AND PROCEDURES                                                                                                                                                                                                                                                      | 39   
|           |                         |                                                                                                                                                                                                                                                                                    |      
|PART II    | OTHER
      INFORMATION |                                                                                                                                                                                                                                                                                   
|           |                         |                                                                                                                                                                                                                                                                                   
|           | ITEM
      1            | LEGAL
      PROCEEDINGS                                                                                                                                                                                                                                                            | 41   
|           |                         |                                                                                                                                                                                                                                                                                    |      
|           | ITEM
      2            | UNREGISTERED
      SALES OF EQUITY SECURITIES AND USE OF PROCEEDS                                                                                                                                                                                                                  | 41   
|           |                         |                                                                                                                                                                                                                                                                                    |      
|           | ITEM
      3            | DEFAULTS
      UPON SENIOR SECURITIES                                                                                                                                                                                                                                              | 41   
|           |                         |                                                                                                                                                                                                                                                                                    |      
|           | ITEM
      4            | SUBMISSION
      OF MATTERS TO A VOTE OF SECURITY HOLDERS                                                                                                                                                                                                                          | 41   
|           |                         |                                                                                                                                                                                                                                                                                    |      
|           | ITEM
      5            | OTHER
      INFORMATION                                                                                                                                                                                                                                                            | 41   
|           |                         |                                                                                                                                                                                                                                                                                    |      
|           | ITEM
      6            | EXHIBITS                                                                                                                                                                                                                                                                           | 42-43
|           |                         |                                                                                                                                                                                                                                                                                    |      
|SIGNATURES |                         | 44                                                                                                                                                                                                                                                                                

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, 2010 |   |   | November 30, 2009 |  
|-------------------------------------------------------------------------------------------------------- | - | --------------- | - | - | ----------------- | -
|                                                                                                         |   | (Unaudited)     |   |   | (Audited)         |  
|ASSETS                                                                                                   |   |                 |   |   |                   |  
|Current Assets                                                                                           |   |                 |   |   |                   |  
|Cash and cash
      equivalents                                                                          | $ | 17,655          |   | $ | -                 |  
|Gold inventory                                                                                           |   | 6,316           |   |   | 6,316             |  
|Prepaid and
      other receivables                                                                      |   | 86,457          |   |   | 738,473           |  
|Total Current Assets                                                                                     |   | 110,428         |   |   | 744,789           |  
|Mineral rights                                                                                           |   | 1,577,681       |   |   | 1,398,601         |  
|Property, plant and equipment, net                                                                       |   | 859,838         |   |   | 1,002,009         |  
|TOTAL ASSETS                                                                                             | $ | 2,547,947       |   | $ | 3,145,399         |  
|                                                                                                         |   |                 |   |   |                   |  
|LIABILITIES                                                                                              |   |                 |   |   |                   |  
|Current Liabilities                                                                                      |   |                 |   |   |                   |  
|Accounts payable
      and accrued liabilities                                                           | $ | 1,163,811       |   | $ | 882,768           |  
|Due to related parties                                                                                   |   | 946,915         |   |   | 1,064,046         |  
|Promissory note                                                                                          |   | 54,500          |   |   | -                 |  
|Convertible debt instruments                                                                             |   | 268,674         |   |   | 69,760            |  
|Total Current Liabilities                                                                                |   | 2,433,900       |   |   | 2,016,574         |  
|Asset retirement obligation                                                                              |   | 558,261         |   |   | 540,407           |  
|Mineral claims royalty payable                                                                           |   | 550,000         |   |   | 470,000           |  
|Total Liabilities                                                                                        |   | 3,542,161       |   |   | 3,026,981         |  
|                                                                                                         |   |                 |   |   |                   |  
|STOCKHOLDERS' (DEFICIT) EQUITY                                                                           |   |                 |   |   |                   |  
|Common stock                                                                                             |  
|Authorized:    
                
    unlimited common shares with no par value                           |  
|Issued and
      outstanding: 
                  2,114,975,373
      common shares (2009: 1,577,667,073) |   | 102,824,264     |   |   | 100,883,269       |  
|Additional paid-in capital                                                                               |   | 1,217,161       |   |   | 1,206,124         |  
|Shares to be issued                                                                                      |   | 33,250          |   |   | 100,000           |  
|Accumulated deficit during exploration stage                                                             |   | (105,068,889    | ) |   | (102,070,975      | )
|Total Stockholders' (Deficit) Equity                                                                     |   | (994,214        | ) |   | 118,418           |  
|TOTAL LIABILITIES AND STOCKHOLDERS' (DEFICIT) EQUITY                                                     | $ | 2,547,947       |   | $ | 3,145,399         |  

The accompanying notes are an integral part of these
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 Stage from |  
|                                                                             |   | Three Months Ended August 31, |   |   | Nine Months Ended August 31, |   |   | December 1, 2001 to |  
|                                                                             |   | 2010                          |   |   | 2009                         |   |   | 2010                |   |   | 2009          |   |   | August 31 2010         |  
|General and administrative expenses                                          |   |                               |   |   |                              |   |   |                     |   |   |               |   |   |                        |  
|Accounting and auditing                                                      | $ | 29,492                        |   | $ | 33,746                       |   | $ | 48,082              |   | $ | 70,689        |   | $ | 883,204                |  
|Advertising, promotion and travel                                            |   | 221                           |   |   | 16,547                       |   |   | 15,643              |   |   | 39,286        |   |   | 3,026,246              |  
|Consulting fees                                                              |   | 262,222                       |   |   | 559,202                      |   |   | 1,123,750           |   |   | 2,209,259     |   |   | 11,655,438             |  
|Depreciation, accretion and impairment                                       |   | 53,328                        |   |   | 36,521                       |   |   | 163,642             |   |   | 166,855       |   |   | 2,939,457              |  
|Exploration expenses                                                         |   | 74,405                        |   |   | 361,860                      |   |   | 346,919             |   |   | 653,568       |   |   | 15,930,666             |  
|Financing activities                                                         |   | 270,738                       |   |   | 2,597                        |   |   | 271,100             |   |   | 2,597         |   |   | 660,603                |  
|Legal and other professional fees                                            |   | 33,964                        |   |   | 61,053                       |   |   | 270,654             |   |   | 218,660       |   |   | 1,836,801              |  
|Management services                                                          |   | 42,993                        |   |   | 165,053                      |   |   | 111,841             |   |   | 595,926       |   |   | 6,510,828              |  
|Office expenses                                                              |   | 83,450                        |   |   | 77,601                       |   |   | 316,841             |   |   | 247,419       |   |   | 5,266,779              |  
|Related party charges in excess of costs incurred                            |   | (23,108                       | ) |   | (434,870                     | ) |   | 17,048              |   |   | (143,690      | ) |   | 4,928,136              |  
|Reporting and investor relations                                             |   | 34,252                        |   |   | 100,426                      |   |   | 165,233             |   |   | 269,367       |   |   | 1,508,584              |  
|Research                                                                     |   | -                             |   |   | -                            |   |   | -                   |   |   | -             |   |   | 1,064,735              |  
|Transfer agent and filing fees                                               |   | 20,234                        |   |   | 27,670                       |   |   | 50,557              |   |   | 87,154        |   |   | 430,388                |  
|Write-off of mineral claim expenditures                                      |   | -                             |   |   | -                            |   |   | -                   |   |   | -             |   |   | 1,159,529              |  
|Write-down of property, plant and
      equipment                            |   | -                             |   |   | -                            |   |   | -                   |   |   | -             |   |   | 329,679                |  
|Total expenses                                                               |   | 882,191                       |   |   | 1,007,406                    |   |   | 2,901,310           |   |   | 4,417,090     |   |   | 58,131,073             |  
|Loss from operations                                                         |   | (882,191                      | ) |   | (1,007,406                   | ) |   | (2,901,310          | ) |   | (4,417,090    | ) |   | (58,131,073            | )
|Gold income earned during the exploration stage                              |   |                               |   |   |                              |   |   |                     |   |   |               |   |   |                        |  
|Gold sale proceeds earned
      during the exploration stage                 |   | -                             |   |   | -                            |   |   | -                   |   |   | 52,450        |   |   | 3,714,310              |  
|Cost of gold sold                                                            |   | -                             |   |   | -                            |   |   | -                   |   |   | (43,790       | ) |   | (3,250,373             | )
|Gold inventory addition from
      gold extraction                           |   | -                             |   |   | -                            |   |   | -                   |   |   | -             |   |   | 3,248,056              |  
|Total gold income earned during the exploration
      stage                  |   | -                             |   |   | -                            |   |   | -                   |   |   | 8,660         |   |   | 3,711,993              |  
|Other income (expenses)                                                      |   |                               |   |   |                              |   |   |                     |   |   |               |   |   |                        |  
|Interest and other income                                                    |   | -                             |   |   | 81                           |   |   | 77                  |   |   | 145           |   |   | 278,067                |  
|Interest expenses on capital
      lease obligations                         |   | -                             |   |   | -                            |   |   | -                   |   |   | -             |   |   | (333,221               | )
|Accrued interests on convertible and
      promissory debentures             |   | (20,004                       | ) |   | -                            |   |   | (40,714             | ) |   | -             |   |   | (748,197               | )
|Other interest expenses and
      bank charges                               |   | 50,358                        |   |   | (2,439                       | ) |   | (39,280             | ) |   | (9,537        | ) |   | (111,489               | )
|Commitment fees                                                              |   | -                             |   |   | -                            |   |   | -                   |   |   | (960,000      | ) |   | (960,000               | )
|Loss on disposal of property,
      plant and equipment                      |   | -                             |   |   | -                            |   |   | -                   |   |   | (173,921      | ) |   | (279,529               | )
|Forgiveness of convertible debentures and
      accrued interests            |   | -                             |   |   | -                            |   |   | -                   |   |   | 260,827       |   |   | 260,827                |  
|Total other income (expenses)                                                |   | 30,354                        |   |   | (2,358                       | ) |   | (79,917             | ) |   | (882,486      | ) |   | (1,893,542             | )
|Net loss before cumulative effect of accounting
      change                 |   | (851,837                      | ) |   | (1,009,764                   | ) |   | (2,981,227          | ) |   | (5,290,916    | ) |   | (56,312,622            | )
|Cumulative effect of
      accounting change                                 |   | -                             |   |   | -                            |   |   | -                   |   |   | -             |   |   | (99,481                | )
|Net loss                                                                     |   | (851,837                      | ) |   | (1,009,764                   | ) |   | (2,981,227          | ) |   | (5,290,916    | ) |   | (56,412,103            | )
|Other comprehensive income (loss)                                            |   |                               |   |   |                              |   |   |                     |   |   |               |   |   |                        |  
|Gain (Loss) on foreign exchange                                              |   | 28,171                        |   |   | (49,842                      | ) |   | (16,687             | ) |   | (72,930       | ) |   | 248,158                |  
|Net comprehensive loss for the
      period                                  | $ | (823,666                      | ) | $ | (1,059,606                   | ) | $ | (2,997,914          | ) | $ | (5,363,846    | ) | $ | (56,163,945            | )
|Net loss per share                                                           | $ | (0.0004                       | ) | $ | (0.0007                      | ) | $ | (0.0017             | ) | $ | (0.0044       | ) |   |                        |  
|Basic and diluted weighted average
      number of common shares outstanding |   | 1,961,368,207                 |   |   | 1,386,724,534                |   |   | 1,774,211,507       |   |   | 1,197,296,139 |   |   |                        |  

The accompanying notes are an integral part of these
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 Stage from |  
|                                                                                                |   | Nine Months Ended August 31, |   |   | December 1, 2001 to |  
|                                                                                                |   | 2010                         |   |   | 2009                |   |   | August 31, 2010        |  
|CASH AND CASH EQUIVALENTS PROVIDED BY (USED IN):                                                |   |                              |   |   |                     |   |   |                        |  
|Operating activities:                                                                           |   |                              |   |   |                     |   |   |                        |  
|Net comprehensive loss for the
      period                                                     | $ | (2,997,914                   | ) | $ | (5,363,846          | ) | $ | (56,163,945            | )
|Adjustments to reconcile net comprehensive
      loss to net cash used in operating activities: |   |                              |   |   |                     |   |   |                        |  
|Cumulative
      effect of accounting change                                                    |   | -                            |   |   | -                   |   |   | 99,481                 |  
|Depreciation,
      amortization, accretion and impairment                                      |   | 163,642                      |   |   | 166,855             |   |   | 2,939,457              |  
|Loss on disposal
      of property, plant and equipment                                         |   | -                            |   |   | 173,921             |   |   | 279,529                |  
|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                            |   | 1,007,366                    |   |   | 1,908,036           |   |   | - 6,893,404            |  
|Non-cash prepaid
      consulting fees expensed during the period                               |   | 716,865                      |   |   | 333,500             |   |   | 1,050,365              |  
|Non-cash
      commitment fees resulting from share issuance                                    |   | -                            |   |   | 960,000             |   |   | 960,000                |  
|Non-cash
      financing expense                                                                |   | 75,000                       |   |   | -                   |   |   | 327,003                |  
|Finance costs
      accrued or incurred on convertible debentures                               |   | 36,213                       |   |   | -                   |   |   | 534,259                |  
|Accrued interest
      on promissory debentures                                                 |   | 4,500                        |   |   | -                   |   |   | 4,500                  |  
|Forgiveness 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                                               |   | -                            |   |   | -                   |   |   | 329,679                |  
|Changes in non-cash operating
      assets and liabilities:                                     |   |                              |   |   |                     |   |   |                        |  
|Gold inventory                                                                                  |   | -                            |   |   | 43,790              |   |   | 2,317                  |  
|Prepaid and
      other receivables                                                             |   | (10,139                      | ) |   | 38,282              |   |   | (28,872                | )
|Accounts payable
      and accrued liabilities                                                  |   | 281,043                      |   |   | 342,713             |   |   | 666,905                |  
|Advances (to)
      from related party                                                          |   | (117,131                     | ) |   | (5,406              | ) |   | 655,603                |  
|Asset retirement
      obligation                                                               |   | (2,411                       | ) |   | 18,046              |   |   | 8,685                  |  
|Net cash used in operating
      activities                                                     |   | (842,966                     | ) |   | (1,644,936          | ) |   | (36,949,597            | )
|                                                                                                |   |                              |   |   |                     |   |   |                        |  
|Investing activities:                                                                           |   |                              |   |   |                     |   |   |                        |  
|Investment in mineral
      properties, net                                                     |   | (99,080                      | ) |   | (99,080             | ) |   | (1,344,181             | )
|Purchase of property, plant
      and equipment                                                 |   | (1,206                       | ) |   | (2,001              | ) |   | (3,080,902             | )
|Proceeds from sale of
      property, plant and equipment, net                                  |   | -                            |   |   | 222,509             |   |   | 825,299                |  
|Net cash (used in) provided by investing
      activities                                       |   | (100,286                     | ) |   | 121,428             |   |   | (3,599,784             | )
|                                                                                                |   |                              |   |   |                     |   |   |                        |  
|Financing activities:                                                                           |   |                              |   |   |                     |   |   |                        |  
|Repayment of loans payable                                                                      |   | -                            |   |   | -                   |   |   | (110,728               | )
|Repayment of capital lease
      obligation                                                     |   | -                            |   |   | -                   |   |   | (1,131,607             | )
|Convertible debentures, net                                                                     |   | 251,000                      |   |   | -                   |   |   | 326,000                |  
|Promissory note                                                                                 |   | 50,000                       |   |   | -                   |   |   | 50,000                 |  
|Shares to be issued                                                                             |   | 33,250                       |   |   | 70,000              |   |   | 33,250                 |  
|Common stock issued for cash
      (net of share issue costs)                                   |   | 626,657                      |   |   | 1,416,500           |   |   | 41,383,028             |  
|Net cash provided by financing
      activities                                                 |   | 960,907                      |   |   | 1,486,500           |   |   | 40,549,943             |  
|                                                                                                |   |                              |   |   |                     |   |   |                        |  
|Increase (Decrease) in cash and cash
      equivalents                                          |   | 17,655                       |   |   | (37,008             | ) |   | 562                    |  
|                                                                                                |   |                              |   |   |                     |   |   |                        |  
|Cash and cash equivalents, at beginning
      of the period                                     |   | -                            |   |   | 50,991              |   |   | 17,093                 |  
|                                                                                                |   |                              |   |   |                     |   |   |                        |  
|Cash and cash equivalents, at end of the
      period                                           | $ | 17,655                       |   | $ | 13,983              |   | $ | 17,655                 |  

**Supplemental Cash Flow Information (Note 13)**

The accompanying notes are an integral part of these
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, 2010 (Unaudited)                     
|(Stated in
      United States Dollars)               

Note 1  Nature and Continuance of Operations

Silverado Gold Mines Ltd. (Silverado or the Company) was
incorporated under the laws of British Columbia, Canada in June 1963. The
Company is engaged in the exploration of mineral properties in the State of
Alaska, through its wholly-owned subsidiary, Silverado Gold Mines Inc.
(incorporated under the laws of the State of Alaska, U.S.A. on May 29, 1981) and
in the research and development of low-rank coal-water fuel as a replacement
fuel for oil fired boilers and utility generators through its other wholly-owned
subsidiary, Silverado Green Fuel, Inc. (incorporated under the laws of the State
of Alaska, U.S.A. on August 14, 2006).

The accompanying interim consolidated financial statements have
been prepared assuming the Company will continue as a going concern, which
implies that the Company would 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 and the sale of gold extracted during
exploration activities. 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 financing from sales of its stock and debt financings. The
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  Basis of Presentation and Summary of Significant
Accounting Policies

These interim consolidated financial statements are prepared in
conformity with United States of America generally accepted accounting
principles (GAAP). The application of Canadian generally accepted accounting
principles to these financial statements would not result in material
measurement or disclosure differences.

The unaudited interim consolidated financial statements do not
include all information and footnote disclosures required under GAAP. 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, 2010, 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 unaudited 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-K, for the fiscal
year ended November 30, 2009.

The financial statements have, in managements opinion, been
properly prepared within the framework of the significant accounting policies
summarized below:

a) Basis of Consolidation

The 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. All significant inter-company transactions
have been eliminated.

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 the U.S. dollar at the
rates of exchange in effect at the consolidated balance sheet date. Non-monetary
assets and liabilities are translated at the rate in effect at the time at which
the transactions took place. Revenue and expense transactions are translated at
the average rate of exchange for the period. Foreign exchange gains and losses
are included in the determination of results from operations for the periods as
other comprehensive gains and losses.

6

---

|SILVERADO GOLD MINES LTD. AND ITS SUBSIDIARIES        
|------------------------------------------------------
|(An Exploration Stage Company)                        
|NOTES TO THE INTERIM CONSOLIDATED FINANCIAL STATEMENTS
|as of August 31, 2010 (Unaudited)                     
|(Stated in
      United States Dollars)               

Note 2  Basis of Presentation and Summary of Significant
Accounting Policies (Continued)

b)        Accounting
Standards Codification

In June 2009, the Financial Accounting Standards Board (FASB)
issued FASB Accounting Standards Codification (ASC) 105, Generally
Accepted Accounting Principles, which establishes the FASB ASC as the sole
source of authoritative GAAP. All existing accounting standards are superseded
as described in FASB ASC No. 168, aside from those issued by the SEC. All other
accounting literature not included in the Codification is non-authoritative. In
accordance with the ASC, references to previously issued accounting standards
have been replaced by ASC references. Subsequent revisions to GAAP will be
incorporated into the ASC through Accounting Standards Updates (ASU). Pursuant
to this codification, the Company has updated references to GAAP in its
financial statements.

c)        Exploration
Stage Company

The Company has not generated revenues since recommencement of
the exploration stage from December 1, 2001, and is considered to be in the
development stage, as defined in FASB ASC 915-10-05. However, 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 should not refer to themselves as
development stage companies in the financial statements, even though such
companies should comply with FASB ASC 915-10-05, if applicable. Accordingly, the
Company has been referred to as an exploration stage company, not a development
stage company. Accumulated results of operations and cash flows are presented
from December 1, 2001, the date the Company re-entered the exploration
stage.

d)        Basic and
Diluted Loss Per Share

Basic loss per share is computed by dividing the loss for the
period by the weighted average number of common shares outstanding during the
period. 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 equivalent 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.

e)        Gold
Inventory

The Company values its gold inventories at the lower of cost or
market. Since 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.

f)        Fair Value
of Financial Instruments

FASB ASC 820, Fair Value Measurements and Disclosures,
defines fair value, establishes a framework for measuring fair value under
generally accepted accounting principles and enhances disclosures about fair
value measurements. Fair value is defined as the price that would be received to
sell an asset or paid to transfer a liability in an orderly transaction between
market participants at the measurement date. Valuation techniques used to
measure fair value, as required by Topic 820 of the FASB ASC, must maximize the
use of observable inputs and minimize the use of unobservable inputs.

7

---

|SILVERADO GOLD MINES LTD. AND ITS SUBSIDIARIES        
|------------------------------------------------------
|(An Exploration Stage Company)                        
|NOTES TO THE INTERIM CONSOLIDATED FINANCIAL STATEMENTS
|as of August 31, 2010 (Unaudited)                     
|(Stated in
      United States Dollars)               

Note 2  Basis of Presentation and Summary of Significant
Accounting Policies (Continued)

f)        Fair Value
of Financial Instruments (Continued)

The Companys assessment of the significance of a particular
input to the fair value measurements requires judgment, and may affect the
valuation of the assets and liabilities being measured and their placement
within the fair value hierarchy. The carrying value of gold inventory,
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 of
the date of issuance. 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.

g)        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 in 2008 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 and
probable reserves.

When it has been determined that a mineral property can be
economically developed as a result of establishing proven and probable 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 probable reserve.

h)        Convertible
Debt Instruments

The Company separately accounts for the liability and equity
components of convertible debentures to reflect the fair value of the liability
component based on our non-convertible borrowing cost at the issuance date.
Accordingly, the Company has recorded the liability components of the
convertible debentures at fair value as of the date of issuance based on
effective interest rate and amortized the resulting discount as an increase to
interest expense over the expected life of the debt. The excess proceeds
received over the fair value of the debt at the date of issuance are attributed
to the conversion feature of the convertible debentures and included in
additional paid-in capital on the consolidated balance sheets. The Company will
account for any embedded conversion features, if there are any, in accordance
with ASC 470-20, Debt With Conversion and Other Options.

i)        Asset
Retirement Obligation

The Company adopted FASB ASC 410-20, Asset Retirement
Obligations,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.

FASB ASC 410-20 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.

8

---

|SILVERADO GOLD MINES LTD. AND ITS SUBSIDIARIES        
|------------------------------------------------------
|(An Exploration Stage Company)                        
|NOTES TO THE INTERIM CONSOLIDATED FINANCIAL STATEMENTS
|as of August 31, 2010 (Unaudited)                     
|(Stated in
      United States Dollars)               

Note 2  Basis of Presentation and Summary of Significant
Accounting Policies (Continued)

j)        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, 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 differ
from these estimates or assumptions.

k)        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.

l)        Property,
Plant and Equipment

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

|Mining equipment       | 10 years   
|---------------------- | -----------
|Auto and trucks        | 5 years    
|Computer equipment     | 3 years    
|Computer software      | 1 year     
|Leasehold improvements | 5  7 years
|Furniture and fittings | 10 years   

m)        Long Lived
Asset Impairment

In accordance with FASB ASC 360-10, Impairment or Disposal
of Long-Lived Assets,long-lived assets held and used by the Company are
reviewed for impairment whenever events or changes in circumstances indicate
that the carrying amount of an asset may not be recoverable. The Company
recognizes impairment when the sum of the expected undiscounted future cash
flows is less than the carrying amount of the asset. Impairment losses, if any,
are measured as the excess of the carrying amount of the asset over its
estimated fair value.

n)        Accounting
for Stock-based Compensation

The Company follows FASB ASC 718, Compensation  Stock
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 (APB 25), 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 FASB ASC 718 adoption date.

o)        Revenue
Recognition

Proceeds from the sale of gold recoveries from test mining are
recorded as other income earned during the exploration stage, retroactively
effective from the period since recommencement of exploration stage from
December 1, 2001.

9

---

|SILVERADO GOLD MINES LTD. AND ITS SUBSIDIARIES        
|------------------------------------------------------
|(An Exploration Stage Company)                        
|NOTES TO THE INTERIM CONSOLIDATED FINANCIAL STATEMENTS
|as of August 31, 2010 (Unaudited)                     
|(Stated in
      United States Dollars)               

Note 2  Basis of Presentation and Summary of Significant
Accounting Policies (Continued)

p)        Income
Taxes

The Company accounts for income taxes in accordance with FASB
ASC 740, Income Taxes. FASB ASC 740 prescribes the use of the liability
method thereby deferred tax asset and liability account balances are determined
based on differences between the financial reporting and tax bases of assets and
liabilities and are measured using the enacted tax rates and laws that will be
in effect when the differences are expected to reverse. The Company provides a
valuation allowance, if necessary, to reduce deferred tax assets to their
estimated realizable value. Deferred tax assets will be reflected on the balance
sheet when it is determined that it is more likely than not that the asset will
be realized.

FASB ASC 740-10 also clarifies the accounting for income taxes,
by prescribing a minimum recognition threshold a tax position is required to
meet before being recognized in the financial statements. It also provides
guidance on derecognizing, measurement and classification of amounts relating to
uncertain tax positions, accounting for and disclosure of interest and
penalties, accounting in interim periods, disclosures and transition relating to
the adoption of the new accounting standard.

q)        Reclassifications

Certain prior years comparative figures have been reclassified
to conform to the financial statement presentation adopted for this year.

r)        Recent
Accounting Pronouncements

FASB ASU 2010-17 Revenue Recognition  Milestone Method
(Topic 605) (ASU 2010-17). This Update provides guidance on defining a
milestone under Topic 605 and determining when it may be appropriate to apply
the milestone method of revenue recognition for research or development
transactions. Consideration that is contingent on achievement of a milestone in
its entirety may be recognized as revenue in the period in which the milestone
is achieved only if the milestone is judged to meet certain criteria to be
considered substantive. Milestones should be considered substantive in their
entirety and may not be bifurcated. An arrangement may contain both substantive
and nonsubstantive milestones that should be evaluated individually. The
amendments in this Update are effective on a retrospective or prospective basis
for milestones achieved in fiscal years, and interim periods within those years,
beginning on or after June 15, 2010. Early adoption is permitted. The Company is
currently evaluating the early adoption option and does not anticipate that the
adoption would have a material impact on the consolidated financial
statements.

FASB ASU 2010-13 Compensation  Stock Compensation (Topic
718) (ASU 2010-13).This ASU codifies the consensus reached in EITF
issue No. 09-J, Effect of Denominating the Exercise Price of a Share-Based
Payment Award in the Currency of the Market in Which the Underlying Equity
Security Trades. The amendments to the Codification clarify that an employee
share-based payment award with an exercise price denominated in the currency of
a in which a substantial portion of the entitys equity shares trades should not
be considered to contain a condition that is not a market, performance, or
service condition. Therefore, the Company would not classify such an award as a
liability if it otherwise qualifies as equity.

The Company has evaluated all other recently issued
pronouncements and does not believe that there are any other new accounting
pronouncements that have been issued that might have a material impact on its
financial position or results of operations.

10

---

|SILVERADO GOLD MINES LTD. AND ITS SUBSIDIARIES        
|------------------------------------------------------
|(An Exploration Stage Company)                        
|NOTES TO THE INTERIM CONSOLIDATED FINANCIAL STATEMENTS
|as of August 31, 2010 (Unaudited)                     
|(Stated in
      United States Dollars)               

Note 3  Gold Inventory

There were no changes in gold inventory during the nine months
ended August 31, 2010. For the nine months ended August 31, 2009, the Company
sold 58.15 troy ounces of gold for net proceeds of $52,450, 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 during the
period ended August 31, 2009, the value of which is $5,556 recorded as cost of
gold sold.

Note 4  Prepaid and Other Receivables

The Company issued the Companys common stock for consulting
and other service fees, valued at the fair market price at the dates of the
agreements or at the dates of shares issued in accordance with the agreements.
Non-cash prepaid expenses were recorded based on the terms of the
agreements.

Non-cash prepaid and other receivables consist of:

|                                                                      |   | August 31, 2010 |  |   | November 30, 2009 | 
|--------------------------------------------------------------------- | - | --------------- |  | - | ----------------- | 
|Prepaid consulting and other fees resulting
      from share issuance | $ | 54,710          |  | $ | 608,640           | 
|Shares issued for attorney retainer                                   |   | -               |  |   | 108,225           | 
|Total prepaid expenses resulting from share
      issuance            |   | 54,710          |  |   | 716,865           | 
|Insurance deposits, GST refund and others                             |   | 31,747          |  |   | 21,608            | 
|Total                                                                 | $ | 86,457          |  | $ | 738,473           | 

Note 5  Mineral Properties and Mineral Rights

The Company holds interests in four groups of mineral
properties, Nolan, Ester Dome, Hammond and Eagle Creek, in Alaska, U.S.A. All of
these properties are in the exploration stage and have no proven reserves as of
August 31, 2010. The Nolan property has a probable reserve; however, a more
extensive feasibility study is required to ascertain if such probable 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, has capitalized 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, 2010, the Company does not amortize
the capitalized mineral costs, but evaluates the capitalized mineral costs
periodically for impairment in accordance with EITF 04-02 and has not recognized
any impairment. A summary of such capitalized direct costs for the nine months
ended August 31, 2010 and for the fiscal year ended November 30, 2009 is as
follows:

|Capitalized Mineral Rights:     |   | Nolan   |  |   | Ester Dome |  |   | Hammond |  |   | Eagle Creek |  |   | Total     | 
|------------------------------- | - | ------- |  | - | ---------- |  | - | ------- |  | - | ----------- |  | - | --------- | 
|                                |   | (a)     |  |   | (b)        |  |   | (c)     |  |   | (d)         |  |   |           | 
|Balance as of November 30, 2008 | $ | 658,319 |  | $ | 31,722     |  | $ | 437,500 |  | $ | 70,050      |  | $ | 1,197,591 | 
|Additions during the year:      |   |         |  |   |            |  |   |         |  |   |             |  |   |           | 
|Claim fees payment              |   | 85,540  |  |   | 8,980      |  |   | 8,400   |  |   | 13,090      |  |   | 116,010   | 
|Royalty payment                 |   | -       |  |   | -          |  |   | -       |  |   | 5,000       |  |   | 5,000     | 
|Accrued royalty payment         |   | -       |  |   | -          |  |   | 80,000  |  |   | -           |  |   | 80,000    | 
|Balance as of November 30, 2009 |   | 743,859 |  |   | 40,702     |  |   | 525,900 |  |   | 88,140      |  |   | 1,398,601 | 
|Additions during the period:    |   |         |  |   |            |  |   |         |  |   |             |  |   |           | 
|Claim fees payment              |   | 85,540  |  |   | 140        |  |   | 8,400   |  |   | -           |  |   | 94,080    | 
|Royalty payment                 |   | -       |  |   | -          |  |   | -       |  |   | 5,000       |  |   | 5,000     | 
|Accrued royalty payment         |   | -       |  |   | -          |  |   | 80,000  |  |   | -           |  |   | 80,000    | 
|Balance as of August 31, 2010   | $ | 829,399 |  | $ | 40,842     |  | $ | 614,300 |  | $ | 93,140      |  | $ | 1,577,681 | 

11

---

|SILVERADO GOLD MINES LTD. AND ITS SUBSIDIARIES        
|------------------------------------------------------
|(An Exploration Stage Company)                        
|NOTES TO THE INTERIM CONSOLIDATED FINANCIAL STATEMENTS
|as of August 31, 2010 (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.

During the nine months ended August 31, 2010, the Company paid
claim maintenance and holding fees of $85,540 (fiscal year ended November 30,
2009: $85,540) to the Bureau of Land Management (BLM). The Company currently
is in a transitional phase between exploration and development on this property.

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. This property consists of 1 unpatented Federal claim and 52
state mineral claims. The Grant Mine mill in this gold project has remained
inactive since February 1989 and the plant and equipment cost was written down
to zero on our accounting records.

During the nine months ended August 31, 2010, the Company paid
claim maintenance and holding fees of $140 (Fiscal year ended November 30, 2009:
$140) to BLM. During the fiscal year ended November 30, 2009, the Company also
paid state mining claim fees of $8,840 to the State of Alaska Department of
Natural Resources.

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 has leased this property from Alaska Mining
Company, Inc. (Alminco) since December 14, 1994 and is obligated to pay a
royalty equal to 10% of gross production and is subject to a minimum royalty of
$80,000 per year. As of August 31, 2010, the capitalized mineral rights of
$614,300 (November 30, 2009: $525,900) for the Hammond property includes royalty
accruals totalling $550,000 (November 30, 2009: $470,000) that are unpaid, and
are included in mineral claims payable on the accompanying consolidated balance
sheets. During the nine months ended August 31, 2010, the Company accrued
$80,000 in payable royalties. During the nine months ended August 31, 2010, the
Company paid $8,400 (fiscal year ended November 30, 2009: $8,400) in federal
claim fees to BLM.

d)        Eagle
Creek Property, Fairbanks Mining District, Alaska

This property consists of 77 state mineral claims. All claims
are contiguous and are located in the Fairbanks North Star Borough. The Company
owns a 50% interest and has an option to purchase a full 100% interest in the
property for $400,000, towards which $38,000 remains to be paid. A payment in
the amount of $5,000 is due on August 1stof each year until the
remaining $38,000 is paid. Such yearly payment is required to keep the option in
good standing. Ownership of the claims is in the name of the Companys
subsidiary, Silverado Gold Mines Inc. During the nine months ended August 31,
2010, the Company paid the required $5,000 option payment. During the fiscal
year ended November 30, 2009, the Company paid the required $5,000 option
payment and $13,090 in state mining claim fees.

12

---

|SILVERADO GOLD MINES LTD. AND ITS SUBSIDIARIES        
|------------------------------------------------------
|(An Exploration Stage Company)                        
|NOTES TO THE INTERIM CONSOLIDATED FINANCIAL STATEMENTS
|as of August 31, 2010 (Unaudited)                     
|(Stated in
      United States Dollars)               

Note 6  Property, Plant and Equipment

Property, plant and equipment primarily include capital
expenditures associated with the Companys Vancouver office, and mining
equipment and camp facilities at the Nolan Gold Project in Alaska. A summary of
the Companys property, plant and equipment as of August 31, 2010 is as
follows:

|                                |   | August 31, 2010 | 
|------------------------------- | - | --------------- | 
|                                |   |                 | 
|                                |   |                 | 
|                                |   | Cost            | 
|Offices                         |   |                 | 
|Office leasehold improvements   | $ | 597,557         | 
|Computer equipment and software |   | 138,552         | 
|Furniture and fittings          |   | 394,358         | 
|Mining Project                  |   |                 | 
|Nolan gold project buildings    |   | 63,000          | 
|Leasehold improvements          |   | 48,123          | 
|Nolan mining equipment          |   | 1,017,987       | 
|Auto and trucks                 |   | 19,193          | 
|Capital assets in construction  |   | 24,245          | 
|                                |   |                 | 
|                                | $ | 2,303,015       | 

A summary of the Companys property, plant and equipment as of
November 30, 2009 is as follows:

|                                |   | November 30, 2009 | 
|------------------------------- | - | ----------------- | 
|                                |   |                   | 
|                                |   |                   | 
|                                |   | Cost              | 
|Offices                         |   |                   | 
|Office leasehold improvements   | $ | 597,557           | 
|Computer equipment and software |   | 137,346           | 
|Furniture and fittings          |   | 394,358           | 
|Mining Project                  |   |                   | 
|Nolan gold project buildings    |   | 63,000            | 
|Leasehold improvements          |   | 48,123            | 
|Nolan mining equipment          |   | 1,017,987         | 
|Auto and trucks                 |   | 19,193            | 
|Capital assets in construction  |   | 24,245            | 
|                                |   |                   | 
|                                | $ | 2,301,809         | 

Note 7  Promissory Note

In February 2010, the Company received $50,000 from an investor
and issued a promissory note dated as of March 1, 2010. The unpaid principal
balance of the note bears interest at a rate equal to twelve percent (12%) per
annum if repaid by the Company within ninety (90) days from the date of the
note, or eighteen percent (18%) per annum if repaid at any time thereafter. The
note matures on September 1, 2010. The Company accrued interest of $4,500 during
the nine months ended August 31, 2010.

13

---

|SILVERADO GOLD MINES LTD. AND ITS SUBSIDIARIES        
|------------------------------------------------------
|(An Exploration Stage Company)                        
|NOTES TO THE INTERIM CONSOLIDATED FINANCIAL STATEMENTS
|as of August 31, 2010 (Unaudited)                     
|(Stated in
      United States Dollars)               

Note 8  Convertible Debt Instruments

The Company separately accounts for the liability and equity
components of convertible debentures to reflect the fair value of the liability
component based on our non-convertible borrowing cost at the issuance date. The
present value of a non-convertible note at the issuance date would be valued
using the effective interest rate of 8.25% . The Company records the liability
components of the convertible note as of the date of issuance and the excess
proceeds received over the fair value of the debt at the date of issuance were
attributed to the conversion feature of the convertible note and accordingly has
been included in additional paid-in capital on the consolidated balance sheets.
At the date of conversion, the company reverses related conversion feature from
the additional paid-in capital to the common stock. The Company amortizes the
resulting discount as an increase to financing cost expense on convertible
debentures.

|i)  | On January 22, 2010, the Company entered into a Note
      Purchase Agreement (the Agreement) with an investor (the
      Investor). Pursuant to the terms of the Agreement, the Company issued
      and sold a convertible promissory note, dated January 22, 2010 (the
      Note) to the Investor for the purchase price of $80,000 with a maturity
      date of March 15, 2010. An origination fee of $5,000 was paid by the
      Company to the Investor from the proceeds of the sale of the Note.                                                                                                                                                                                                                                                                                                                                                                                 
|--- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   
|    | The Company recorded $66,944 of the liability components
      of the convertible note as of the date of issuance and the excess proceeds
      of $8,056 received over the fair value of the debt at the date of issuance
      were attributed to the additional paid-in capital. During the period ended
      August 31, 2010, $65,000 of the Note was converted into 36,111,111 shares
      of the Companys common stock at a price of $0.0018 per share. The Company
      reversed related conversion feature of $6,546 from the additional paid-in
      capital to the common stock.                                                                                                                                                                                                                                                                                                   
|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   
|    | The Note provides that interest on the unpaid principal
      balance of the Note shall not accrue unless a trigger event, as set forth
      therein, occurs. The Company failed to repay the Note on March 15, 2010
      and the principal balance of the Note increased by $75,000 plus $6,844 of
      accrued interests and issuance costs based on the agreement during the
      quarter ended August 31, 2010. The remaining outstanding carrying value of
      $96,844 plus additional $1,231 of accrued interests for a total of $98,075
      were settled by $83,075 of cash payment and $15,000 of conversion to
      10,431,154 shares in September 2010, subsequent to the quarter-end.                                                                                                                                                                                         
|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   
|ii) | On April 28, 2010, the Company entered into a Secured
      Convertible Note Agreement (the Note Agreement) with an investor. Pursuant to the terms of the Note Agreement, the Company sold and
      issued a convertible note in the sum of $50,000 with a maturity date of
      April 28, 2011. An origination fee of $5,000 was paid by the Company to
      the Note holder from the proceeds of the sale of the Note. The Note bears
      no interest and is to be paid in full on the maturity date, unless
      previously paid or converted into the Companys common stock. The Note
      holder has the right to convert any unpaid principal portion, at a
      conversion price per share equal to the lower of $0.003 or 70% of the
      average of the three lowest closing bid prices of the Companys common
  stock for the 20 trading days preceding a conversion date.
|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   
|    | The Company issued 13,000,000 shares of the Companys
      common stock to the Note holder as compensation costs. Such shares were
      valued at $61,100 using the closing price of the Companys common stock on
      April 27, 2010 and were recorded as financing costs.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   
|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   
|    | The Company recorded $41,189 of the liability components
      of the convertible note as of the date of issuance and the excess proceeds
      of $8,811 received over the fair value of the debt at the date of issuance
      were attributed to the additional paid-in capital. During the nine months
      ended August 31, 2010, the Company recorded amortization of the resulting
      discount of $3,018 as an increase to financing cost expense on convertible
      debentures, and will amortize the remaining discount of $5,793 over the
      expected life of the debt. At August 31, 2010, the carrying value of the
      Note was $44,207.                                                                                                                                                                                                                                  

14

---

|SILVERADO GOLD MINES LTD. AND ITS SUBSIDIARIES        
|------------------------------------------------------
|(An Exploration Stage Company)                        
|NOTES TO THE INTERIM CONSOLIDATED FINANCIAL STATEMENTS
|as of August 31, 2010 (Unaudited)                     
|(Stated in
      United States Dollars)               

Note 8  Convertible Debt Instruments (Continued)

|a)   | Convertible Notes Issued in Fiscal Year 2010
      (Continued)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           
|---- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|     |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          
|iii) | In June 2010, the Company entered into two Note
      Agreements with an investor. Pursuant to the terms of the Note
      Agreements, the Company sold and issued two convertible notes with a
      principal amount of $75,000 per each Note for a total of $150,000. The
      maturity dates of these two Notes are June 15, 2011 and June 27, 2011,
      respectively. An original issue discount of $7,500 per each note for a
      total of $15,000 was paid by the Company to the Note holder from the
      proceeds of the sale of the Note. The Note bears no interest and is to be
      paid in full on the maturity date, unless previously paid or converted
      into the Companys common stock. The Note holder has the right to convert
      any unpaid principal portion commencing December 1, 2010, at a conversion
      price per share equal to the lower of $0.003 or 70% of the average of the
      three lowest closing bid prices of the Companys common stock for the 20
  trading days preceding a conversion date.
|     |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          
|     | The Company issued 40,000,000 shares of the Companys
      common stock to the Note holder as compensation costs. Such shares were
      valued at $135,000 using the closing price of the Companys common stock
      on the date before the Note date and were recorded as financing
    costs.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      
|     |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          
|     | The Company recorded $123,568 of the liability components
      and the excess proceeds of $26,432 received over the fair value of the
      debt were attributed to the additional paid-in capital. During the nine
      months ended August 31, 2010, the Company recorded amortization of the
      resulting discount of $4,055 as an increase to financing cost expense on
      convertible debentures, and will amortize the remaining discount of
      $22,377 over the expected life of the debt. At August 31, 2010, the
      carrying value of these two Notes was $127,623.                                                                                                                                                                                                                                                                                                                                                                                                                                                               
|     |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          
|b)   | Convertible Note Issued in Fiscal Year
  2009                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            

On October 30, 2009, the Company sold and issued a convertible
note in the sum of $75,000 with a maturity date of October 30, 2010. The note
bears no interest and is to be paid in full on the maturity date, unless
previously paid or converted into the Companys common stock. The Note holder
has the right from March 1, 2010 to convert any unpaid principal portion, at a
conversion price per share equal to 70% of the average of the three lowest
closing bid prices of the Companys common stock for the 20 trading days
preceding a conversion date.

The Company issued 5,000,000 shares of the Companys common
stock to the Note holder as compensation and issuance costs reimbursement. Such
shares were valued at $80,000 using the closing price of the Companys common
stock on October 29, 2009 and were recorded as financing costs. The Company also
paid $7,500 cash to a third party as a finders fee on this note.

The Company recorded $69,284 of the liability components of the
convertible note and the excess proceeds of $5,716 received over the fair value
of the debt were attributed to the additional paid-in capital. The Company
amortized the resulting discount of $476 during the fiscal year ended November
30, 2009 and $5,240 during the nine months ended August 31, 2010 as an increase
to financing cost expenses on convertible. During the nine months ended August
31, 2010, the Note was fully converted into 32,258,055 shares of the Companys
common stock at a weighted average price of $0.00233 per share. The Company
reversed related conversion feature of $5,716 from the additional paid-in
capital to the common stock.

Note 9  Asset Retirement Obligations

Asset retirement obligations relate to the closure and
reclamation of the Grant Mill Tailings Pond and the Mill complex, 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. A summary of assets
retirement obligation for the nine months ended August 31, 2010 and the fiscal
year ended November 30, 2009 is as follows:

15

---

|SILVERADO GOLD MINES LTD. AND ITS SUBSIDIARIES        
|------------------------------------------------------
|(An Exploration Stage Company)                        
|NOTES TO THE INTERIM CONSOLIDATED FINANCIAL STATEMENTS
|as of August 31, 2010 (Unaudited)                     
|(Stated in
      United States Dollars)               

Note 9  Asset Retirement Obligations (Continued)

|                           |   | Grant   |   |   | Nolan   |   |   |         |  
|-------------------------- | - | ------- | - | - | ------- | - | - | ------- | -
|                           |   | Mine    |   |   | Project |   |   | Total   |  
|Balance, November 30, 2008 | $ | 364,651 |   | $ | 172,607 |   | $ | 537,258 |  
|Accretion expense          |   | 18,233  |   |   | 8,630   |   |   | 26,863  |  
|Liabilities settled        |   | (14,000 | ) |   | (4,258  | ) |   | (18,258 | )
|Reclamation bond refunded  |   | -       |   |   | (5,456  | ) |   | (5,456  | )
|Balance, November 30, 2009 |   | 368,884 |   |   | 171,523 |   |   | 540,407 |  
|Accretion expense          |   | 13,833  |   |   | 6,432   |   |   | 20,265  |  
|Liabilities settled        |   | (1,511  | ) |   | (900    | ) |   | (2,411  | )
|Balance, August 31, 2010   | $ | 381,206 |   | $ | 177,055 |   | $ | 558,261 |  

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 and the Mill complex that was built in the early 1980s and no
longer used after 1989.

The Company believes that the estimated fair value of the cost
of reclamation at this time will approximate the accrued obligations plus 5%
accretion expense per annum until reclaimed. During the nine months ended August
31, 2010, the Company recorded $13,833 accretion expense and spent $1,511 on the
Grant Mine closure. During the fiscal year ended November 30, 2009, the Company
recorded $18,233 accretion expense, paid $1,511 to the State of Alaska
regulatory agencies and spent another $12,489 on the closure.

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. The Nolan mineral properties are on
Federal mining claims and thus are under the active supervision of the Bureau of
Land Management. As of May 31, 2010 and November 30, 2009, the Company is
obligated to reclaim 21 acres at Nolan Creek. These 21 acres are areas essential
for the Companys operations and consist 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 believes that the remaining accrued obligations
plus 5% accretion expense per annum is sufficient to cover the cost of
reclamation. During the nine months ended August 31, 2010, the Company recorded
$6,432 accretion expense and spent $900 on reclamation. During the fiscal year
ended November 30, 2009, the Company recorded $8,630 accretion expense and spent
$4,258 on reclamation.

Note 10  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.

16

---

|SILVERADO GOLD MINES LTD. AND ITS SUBSIDIARIES        
|------------------------------------------------------
|(An Exploration Stage Company)                        
|NOTES TO THE INTERIM CONSOLIDATED FINANCIAL STATEMENTS
|as of August 31, 2010 (Unaudited)                     
|(Stated in
      United States Dollars)               

Note 10  Related Party Transactions (Continued)

(a) Service Agreements (Continued)

The Tri-Con Group are operations, exploration and development
contractors and have been employed by the Company under contract since 1972 to
carry out all the Companys fieldwork and to provide administrative and
management services. Under the current contracts dated January 1, 1997, Tri-Con
Group has billed the Company 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 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., respectively.

During the nine months ended August 31, 2010, 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; and administration services. During the period ended August 31, 2010,
there were nominal exploration activities due to the Companys cash flow
constraints and consequently the Tri-Con Group waived the US $10,000 and the CDN
$10,000 monthly fee for the nine months ended August 31, 2010 for a total of US
$176,264.

As of August 31, 2010, Silverado owed $946,915 (November 30,
2009: $1,064,046) 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, 2010 and 2009:

|                                                                    |   | Nine Months Ended | 
|------------------------------------------------------------------- | - | ----------------- | 
|                                                                    |   | August 31, 2010   | 
|Exploration Services                                                | $ | -                 | 
|Administration and management services                              |   | 130,702           | 
|Amounts forgiven by Tri-Con Group                                   |   | -                 | 
|                                                                    | $ | 130,702           | 
|                                                                    |   |                   | 
|Amount of total charges in excess of Tri-Cons costs
      incurred | $ | 17,048            | 
|                                                                    |   |                   | 
|Percentage of excess amount charged                                 |   | 13.04%            | 

(b) Consulting Agreement

Effective April 1, 2009, a consulting agreement was signed
between the Company and a private company controlled by a former director of the
Company who resigned on April 20, 2010. 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 11  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 months ended August
31, 2010:

17

---

|SILVERADO GOLD MINES LTD. AND ITS SUBSIDIARIES        
|------------------------------------------------------
|(An Exploration Stage Company)                        
|NOTES TO THE INTERIM CONSOLIDATED FINANCIAL STATEMENTS
|as of August 31, 2010 (Unaudited)                     
|(Stated in
      United States Dollars)               

Note 11  Common Stock (Continued)

|                                                                                                                   |  | Number of     |   |   | Common Stock |   |   | Shares to be |  
|------------------------------------------------------------------------------------------------------------------ |  | ------------- | - | - | ------------ | - | - | ------------ | -
|                                                                                                                   |  | Common Shares |   |   | Amount       |   |   | Issued       |  
|                                                                                                                   |  |               |   |   |              |   |   |              |  
|Balance, November 30, 2009                                                                                         |  | 1,577,667,073 |   | $ | 100,883,269  |   | $ | 100,000      |  
|Shares Issued:                                                                                                     |  |               |   |   |              |   |   |              |  
|For Private Placements                                                                                             |  |               |   |   |              |   |   |              |  
|$0.01 per unit (1 unit = 1 share and 1
      warrant) cancelled                                                    |  | (1,000,000    | ) |   | (10,000      | ) |   | -            |  
|$0.01 per unit (1 unit = 1
      share and 1 warrant)                                                              |  | 1,500,000     |   |   | 15,000       |   |   | (15,000      | )
|$0.01 per unit (1 unit = 1 share and 1/2
      warrant)                                                            |  | 5,000,000     |   |   | 50,000       |   |   | (50,000      | )
|$0.0035 per unit (1 unit = 1
      share and 1 warrant)                                                            |  | 68,106,838    |   |   | 238,374      |   |   | (35,000      | )
|$0.003 per unit (1 unit = 1 share and 1
      warrant)                                                             |  | 77,588,335    |   |   | 232,765      |   |   | -            |  
|                                                                                                                   |  | 151,195,173   |   |   | 526,139      |   |   | (100,000     | )
|For Warrants Exercise                                                                                              |  |               |   |   |              |   |   |              |  
|$0.003 per share                                                                                                   |  | 50,917,550    |   |   | 152,753      |   |   | -            |  
|$0.00233 per share                                                                                                 |  | 20,500,000    |   |   | 47,765       |   |   | -            |  
|                                                                                                                   |  | 71,417,550    |   |   | 200,518      |   |   | -            |  
|For Conversion of Debenture                                                                                        |  |               |   |   |              |   |   |              |  
|$0.0024 per share                                                                                                  |  | 8,333,333     |   |   | 20,000       |   |   | -            |  
|$0.00233 per share                                                                                                 |  | 8,583,690     |   |   | 20,000       |   |   | -            |  
|$0.00232 per share                                                                                                 |  | 7,552,870     |   |   | 17,500       |   |   | -            |  
|$0.002247 per share                                                                                                |  | 7,788,162     |   |   | 17,500       |   |   | -            |  
|$0.0018 per share                                                                                                  |  | 36,111,111    |   |   | 65,000       |   |   | -            |  
|                                                                                                                   |  | 68,369,166    |   |   | 140,000      |   |   | -            |  
|For Financing Costs                                                                                                |  |               |   |   |              |   |   |              |  
|$0.0047 per share                                                                                                  |  | 13,000,000    |   |   | 61,100       |   |   | -            |  
|$0.00357 per share                                                                                                 |  | 20,000,000    |   |   | 75,000       |   |   | -            |  
|$0.003 per share                                                                                                   |  | 20,000,000    |   |   | 60,000       |   |   | -            |  
|                                                                                                                   |  | 53,000,000    |   |   | 196,100      |   |   | -            |  
|Shares Granted under Equity Compensation Plans                                                                     |  |               |   |   |              |   |   |              |  
|For Consulting Fees Granted at
      a Weighted Average Price of $0.00422                                          |  | 120,752,641   |   |   | 509,715      |   |   |              |  
|For Investor Relation and Shareholder
      Communication Services Granted at a Weighted Average Price of $0.00468 |  | 26,394,185    |   |   | 123,444      |   |   | -            |  
|For Exploration Services Fees
      Granted at a Weighted Average Price of $0.00524                                |  | 24,179,585    |   |   | 126,617      |   |   |              |  
|For Legal Service Fees Granted at a Weighted
      Average Price of $0.00524                                       |  | 22,000,000    |   |   | 106,200      |   |   |              |  
|                                                                                                                   |  | 193,326,411   |   |   | 865,976      |   |   | -            |  
|Conversion feature on converted debentures                                                                         |  | -             |   |   | 12,262       |   |   | -            |  
|Share Subscriptions Received                                                                                       |  | -             |   |   | -            |   |   | 33,250       |  
|Balance, August 31, 2010                                                                                           |  | 2,114,975,373 |   | $ | 102,824,264  |   | $ | 33,250       |  

18

---

|SILVERADO GOLD MINES LTD. AND ITS SUBSIDIARIES        
|------------------------------------------------------
|(An Exploration Stage Company)                        
|NOTES TO THE INTERIM CONSOLIDATED FINANCIAL STATEMENTS
|as of August 31, 2010 (Unaudited)                     
|(Stated in
      United States Dollars)               

Note 11  Common Stock (Continued)

The following is a summary of the Companys issuances of common
stock for the fiscal year ended November 30, 2009:

|                                                                                                                                  |  | Number of     |  |   | Common Stock |   |   | Shares to be | 
|--------------------------------------------------------------------------------------------------------------------------------- |  | ------------- |  | - | ------------ | - | - | ------------ | 
|                                                                                                                                  |  | Common Shares |  |   | Amount       |   |   | Issued       | 
|Balance, November 30, 2008                                                                                                        |  | 977,437,101   |  | $ | 94,718,072   |   | $ | -            | 
|Shares Issued:                                                                                                                    |  |               |  |   |              |   |   |              | 
|For Private Placements                                                                                                            |  |               |  |   |              |   |   |              | 
|$0.00383 per share                                                                                                                |  | 18,260,870    |  |   | 70,000       |   |   | -            | 
|$0.004 per share                                                                                                                  |  | 19,250,000    |  |   | 77,000       |   |   | -            | 
|$0.01 per share                                                                                                                   |  | 53,000,000    |  |   | 530,000      |   |   | -            | 
|$0.005 per share                                                                                                                  |  | 40,000,000    |  |   | 200,000      |   |   | -            | 
|$0.0025 per share                                                                                                                 |  | 38,000,000    |  |   | 95,000       |   |   | -            | 
|$0.01 per unit
      (1 unit = 1 share and 1 warrant)                                                                             |  | 56,400,000    |  |   | 564,000      |   |   | -            | 
|$0.01 per unit (1 unit = 1 share
      and 1/2 warrant)                                                                           |  | 57,000,000    |  |   | 570,000      |   |   | -            | 
|                                                                                                                                  |  | 281,910,870   |  |   | 2,106,000    |   |   | -            | 
|                                                                                                                                  |  |               |  |   |              |   |   |              | 
|For Commitment Fees at $0.0096 Per Share                                                                                          |  | 100,000,000   |  |   | 960,000      |   |   | -            | 
|For Financing costs at $0.0016 Per Share                                                                                          |  | 5,000,000     |  |   | 80,000       |   |   | -            | 
|Shares Granted under Equity Compensation
      Plans                                                                              |  |               |  |   |              |   |   |              | 
|For Consulting Fees Granted at a Weighted
      Average Price of $0.0147 Per Share                                                |  | 193,609,800   |  |   | 2,839,456    |   |   |              | 
|For Investor Relation and
      Shareholder Communication Services Granted at a Weighted Average Price of
      $0.0078 Per Share |  | 11,709,302    |  |   | 91,241       |   |   | -            | 
|For Legal Service Fees Granted at $0.0185
      Per Share                                                                         |  | 8,000,000     |  |   | 148,000      |   |   |              | 
|                                                                                                                                  |  | 213,319,102   |  |   | 3,078,697    |   |   | -            | 
|Share Subscriptions Received                                                                                                      |  | -             |  |   | -            |   |   | 100,000      | 
|Share Issue Costs                                                                                                                 |  | -             |  |   | (59,500      | ) |   | -            | 
|                                                                                                                                  |  |               |  |   |              |   |   |              | 
|Balance, November 30, 2009                                                                                                        |  | 1,577,667,073 |  | $ | 100,883,269  |   | $ | 100,000      | 

a)        Private
Placements

For the nine months ended August 31, 2010

During the nine months ended August 31, 2010, the Company
completed a private placement resulting in the issuance of 1,500,000 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 gross proceeds of $15,000 from such private
placement. In December 2009, a subscription agreement related to 1,000,000 units
at $0.01 per unit was cancelled and issued units were returned and cancelled
accordingly.

During the nine months ended August 31, 2010, the Company
completed a private placement resulting in the issuance of 5,000,000 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 $50,000 from such private placement.

During the nine months ended August 31, 2010, the Company
completed private placements resulting in the issuance of an aggregate of
68,106,838 units at $0.0035 per unit and 67,588,335 units at $0.003 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 $0.01 within the
one year period commencing from the date of the subscription agreement. The
Company received gross proceeds of $441,139 from such private placements.

19

---

|SILVERADO GOLD MINES LTD. AND ITS SUBSIDIARIES        
|------------------------------------------------------
|(An Exploration Stage Company)                        
|NOTES TO THE INTERIM CONSOLIDATED FINANCIAL STATEMENTS
|as of August 31, 2010 (Unaudited)                     
|(Stated in
      United States Dollars)               

Note 11  Common Stock (Continued)

a)        Private
Placements (Continued)

During the nine months ended August 31, 2010, the Company also
completed a private placement resulting in the issuance of 10,000,000 units at
$0.003 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
$0.00233 within the one year period commencing from the date of the subscription
agreement. The Company received gross proceeds of $30,000 from such private
placements.

For the fiscal year ended November 30, 2009

During the fiscal year ended November 30, 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, 40,000,000
common shares at $0.005 per share and 18,500,000 common shares at $0.01 per
share. The Company received aggregate gross proceeds of $627,000 from such
private placements and paid related commission fees of $20,000 which was
recorded as a reduction of common stock.

In addition, during the fiscal year ended November 30, 2009,
the Company completed private placements resulting in the issuance of 34,500,000
common shares at a price of $0.01 per share. These private placements generated
gross proceeds of $345,000 from the sale of shares related to the Equity Line of
Credit Agreement (see Note 11(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.

During the fiscal year ended November 30, 2009, the Company
completed private placements resulting in the issuance of an aggregate of
56,400,000 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 gross proceeds of
$564,000 from such private placements and paid commission fees of $5,000 which
was recorded as a reduction of common stock. Subsequent to November 30, 2009, a
subscription agreement related to 1,000,000 units was cancelled and issued units
were returned and cancelled accordingly.

During the fiscal year ended November 30, 2009, the Company
also completed private placements resulting in the issuance of an aggregate of
57,000,000 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 $570,000 from such
private placements.

As of November 30, 2009, the Company received $65,000 for the
sale of an aggregate of 6,500,000 common shares and 4,000,000 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 also received $35,000 for the sale of an aggregate of 10,000,000 units
at a price of $0.0035 per unit. Each unit consisted of one share of common stock
and one common stock purchase warrant exercisable at a per share exercise price
of $0.01 for the purchase of one share of common stock within the one year
period commencing from the subscription agreement. These private placements were
not completed as of November 30, 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 during the six months ended May 31, 2010.

20

---

|SILVERADO GOLD MINES LTD. AND ITS SUBSIDIARIES        
|------------------------------------------------------
|(An Exploration Stage Company)                        
|NOTES TO THE INTERIM CONSOLIDATED FINANCIAL STATEMENTS
|as of August 31, 2010 (Unaudited)                     
|(Stated in
      United States Dollars)               

Note 11  Common Stock (Continued)

b)        Common
Stock Issued under Equity Compensation Plans

The Company entered into several agreements for corporate
planning, business development and strategies, investor relation services, legal
services and media solutions services. Pursuant to these agreements, the Company
issued its common stock under equity compensation plans (See Note 12(a)  Equity
Compensation Plans, below).

For the nine months ended August 31, 2010

The Company issued an aggregate of 193,326,411 shares of the
Companys unrestricted free trading common stock during the nine months ended
August 31, 2010, valued at the fair market price at the dates of agreements or
at the dates of shares issued, for total consideration of $865,976. Of this
amount $811,266 was recorded as consulting, legal and other service fees and
$54,710 was recorded as prepaid expenses based on the terms of the agreements.
These shares were issued under the Companys Equity Compensation Plans.

For the fiscal year ended November 30, 2009

During the fiscal year ended November 30, 2009, the Company
issued an aggregate of 208,319,102 shares of the Companys unrestricted free
trading common stock and 5,000,000 shares of the Companys restricted common
stock, valued at the fair market price at the dates of agreements or at the
dates of shares issued, for total consideration of $3,078,697. Of this amount
$2,361,832 was recorded as consulting fees and $716,865 was recorded as prepaid
expenses. Such prepaid expenses were expensed during the nine months ended
August 31, 2010.

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

On May 6, 2009, the Company entered into an Equity Line of
Credit Agreement with an accredited investor pursuant to which the Company could
have sold to the investor, if certain conditions were 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 fiscal year ended November 30, 2009. As of November 30, 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 11(a)  Private Placements, above).

On December 16, 2009, the Company terminated the Equity Line of
Credit Agreement in connection with its efforts to secure alternate sources for
capital.

d)        Common
Stock Issued as Financing Expenses

During the nine months ended August 31, 2010, the Company
issued 53,000,000 shares of the Companys common stock to convertible notes
holders as compensation costs. Such shares were valued at $196,100 using the
market closing price one day before the convertible note issuance date and
recorded as financing expenses (See Note 8(a) Convertible Note Issued in Fiscal
Year 2010, above).

In November 2009, the Company issued 5,000,000 shares of the
Companys common stock to a convertible note holder as compensation and issuance
costs reimbursement. Such shares were valued at $80,000 using the market closing
price one day before the convertible note issuance date and recorded as
financing expenses (See Note 8(b) Convertible Note Issued in Fiscal Year 2009,
above).

21

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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, 2010 (Unaudited)                     
|(Stated in
      United States Dollars)               

Note 12 Equity Compensation Plans, Stock Options and Common
Stock Purchase Warrants

a)        Equity
Compensation Plans and Stock Options

Equity Compensation Plans

The Company has adopted Equity Compensation Plans 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.

On January 29, 2009, the Company adopted the 2009 Equity
Compensation Plan (the 2009 Plan). 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.
These shares were granted during the fiscal year ended November 30, 2009.

On June 1, 2009, the Company adopted the 2009-II Equity
Compensation Plan (the 2009-II Plan). The number of shares issued under the
2009-II 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. These shares were granted during the fiscal year ended November 30,
2009.

On December 11, 2009, the Company adopted the 2009-III Equity
Compensation Plan (the 2009-III Plan). The number of shares issued under the
2009-III Plan may not exceed 120,000,000 in aggregate. On December 16, 2009, the
Company filed a registration statement on Form S-8 to register all 120,000,000
of such shares. These shares were granted during the nine months ended August
31, 2010.

On June 3, 2010, the Company adopted the 2010-I Equity
Compensation Plan (the 2010-I Plan). The number of shares issued under the
2010-I Plan may not exceed 180,000,000 in aggregate. On June 9, 2010, the
Company filed a registration statement on Form S-8 to register all 180,000,000
of such shares. A total of 65,208,799 of such shares were granted during the nine months
ended August 31, 2010.

Stock Options

There were no stock options granted and valued during the nine
months ended August 31, 2010 and the fiscal year ended November 30, 2009. A
summary of the change in outstanding and exercisable stock options for the nine
months ended August 31, 2010 and the fiscal year ended November 30, 2009 is as
follows:

|                             |  |                 |   |   |                 |  |  | Weighted         | 
|---------------------------- |  | --------------- | - | - | --------------- |  |  | ---------------- | 
|                             |  | Outstanding and |   |   | Weighted        |  |  | Average          | 
|                             |  | Exercisable     |   |   | Average         |  |  | Remaining        | 
|                             |  | Options         |   |   | Excercise Price |  |  | Contractual Life | 
|Balance, November 30, 2008   |  | 70,400,000      |   | $ | 0.056           |  |  | 3.47 years       | 
|Options cancelled or expired |  | (22,200,000     | ) | $ | 0.055           |  |  |                  | 
|                             |  |                 |   |   |                 |  |  |                  | 
|Balance, November 30, 2009   |  | 48,200,000      |   | $ | 0.056           |  |  | 2.72 years       | 
|Options cancelled or expired |  | -               |   |   |                 |  |  |                  | 
|Balance, August 31, 2010     |  | 48,200,000      |   | $ | 0.056           |  |  | 1.97
      years | 

22

---

|SILVERADO GOLD MINES LTD. AND ITS SUBSIDIARIES        
|------------------------------------------------------
|(An Exploration Stage Company)                        
|NOTES TO THE INTERIM CONSOLIDATED FINANCIAL STATEMENTS
|as of August 31, 2010 (Unaudited)                     
|(Stated in
      United States Dollars)               

Note 12  Equity Compensation Plans, Stock Options and
Common Stock Purchase Warrants (Continued)

a)        Equity
Compensation Plans and Stock Options (Continued)

The balance of outstanding and exercisable common stock options
as at August 31, 2010 is as follows:

|Number of Options |   |          |  |  | Remaining        | 
|----------------- | - | -------- |  |  | ---------------- | 
|Outstanding and   |   | Exercise |  |  | Contractual Life | 
|Exercisable       |   | Price    |  |  | (Years)          | 
|                  |   |          |  |  |                  | 
|33,900,000        | $ | 0.05     |  |  | 0.36 - 2.35      | 
|14,300,000        | $ | 0.07     |  |  | 2.37             | 
|48,200,000        |   |          |  |  |                  | 

b) Common Stock Purchase Warrants

A summary of the change in common stock purchase warrants
during the nine months ended August 31, 2010 and the fiscal year ended November
30, 2009 is as follows:

|                              |  |             |   |   |                 |  |  | Weighted         | 
|----------------------------- |  | ----------- | - | - | --------------- |  |  | ---------------- | 
|                              |  |             |   |   | Weighted        |  |  | Average          | 
|                              |  | Outstanding |   |   | Average         |  |  | Remaining        | 
|                              |  | Warrants    |   |   | Excercise Price |  |  | Contractual Life | 
|Balance, November 30, 2008    |  | 40,349,230  |   | $ | 0.0700          |  |  | 0.17 years       | 
|Warrants issued               |  | 84,900,000  |   | $ | 0.0200          |  |  |                  | 
|Warrants expired              |  | (40,349,230 | ) | $ | 0.0700          |  |  |                  | 
|Balance, November 30, 2009    |  | 84,900,000  |   | $ | 0.0200          |  |  | 0.72 years       | 
|Warrants issued               |  | 149,695,173 |   | $ | 0.0098          |  |  |                  | 
|Warrants exercised            |  | (71,417,550 | ) | $ | 0.0028          |  |  |                  | 
|Warrants cancelled or expired |  | (27,250,000 | ) | $ | 0.0200          |  |  |                  | 
|Balance, August 31, 2010      |  | 135,927,623 |   | $ | 0.0116          |  |  | 0.58
      years | 

The balance of outstanding and exercisable common stock
purchase warrants as of August 31, 2010 is as follows:

|                   |   |                |  |  | Remaining        | 
|------------------ | - | -------------- |  |  | ---------------- | 
|Number of Warrants |   |                |  |  | Contractual Life | 
|Outstanding        |   | Exercise Price |  |  | (Years)          | 
|29,750,000         | $ | 0.0200         |  |  | 0.05 - 0.22      | 
|96,177,623         | $ | 0.0100         |  |  | 0.35 - 0.98      | 
|10,000,000         | $ | 0.0023         |  |  | 0.91             | 
|135,927,623        |   |                |  |  |                  | 

23

---

|SILVERADO GOLD MINES LTD. AND ITS SUBSIDIARIES        
|------------------------------------------------------
|(An Exploration Stage Company)                        
|NOTES TO THE INTERIM CONSOLIDATED FINANCIAL STATEMENTS
|as of August 31, 2010 (Unaudited)                     
|(Stated in
      United States Dollars)               

Note 12  Equity Compensation Plans, Stock Options and
Common Stock Purchase Warrants (Continued)

b) Common Stock Purchase Warrants (Continued)

During the nine months ended August 31, 2010, 27,250,000 of the
Companys outstanding common stock purchase warrants cancelled or expired and
149,695,173 of common stock purchase warrants were granted at a per share
weighted average exercise price of $0.0098. Each common stock purchase warrant
issued during the period is exercisable for one share of common stock within the
one year period commencing from the date of the subscription agreement.

During the nine months ended August 31, 2010, the Company
reduced the exercise price of 31,400,000 of its common stock purchase warrants
from $0.02 to $0.003, 19,517,550 from $0.01 to $0.003 per common share and
20,500,000 from $0.01 to $0.00233 per common share. All of such warrants were
exercised during the period. 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.

During the fiscal year ended November 30, 2009, 40,349,230 of
the Companys outstanding common stock purchase warrants expired and 84,900,000
common stock purchase warrants were granted at a per share exercise price of
$0.02. 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.

Note 13  Supplemental Cash Flow Information

Investing and financing activities that do not have a direct
impact on current cash flows are excluded from the cash flow statements. A
summary of non-cash transactions and other cash information for the nine months
ended August 31, 2010 and 2009 is as follow:

|                                                                              |   | Nine Months Ended August 31, | 
|----------------------------------------------------------------------------- | - | ---------------------------- | 
|                                                                              |   | 2010                         | 
|Changes in non-cash financing and investing
      activities:                 |   |                              | 
|Common stock issued for
      consulting fees and other expenses              | $ | 1,007,366                    | 
|Common stock issued for prepaid
      consulting and other service fees       | $ | 54,710                       | 
|Common stock issued for
      commitment fees                                 | $ | -                            | 
|Common shares issued for subscriptions
      received                         | $ | 100,000                      | 
|Common shares issued
      for convertible debentures                         | $ | 140,000                      | 
|Conversion feature reverse on converted
      debentures                      | $ | 12,262                       | 
|Conversion feature on
      convertible debenture                             | $ | 11,037                       | 
|Non-cash convertible debentures                                               | $ | 75,000                       | 
|Mineral claims royalty
      payable changes at period-end for mineral rights | $ | 80,000                       | 
|                                                                              |   |                              | 
|Other cash flow information:                                                  |   |                              | 
|Interest paid or incurred                                                     | $ | 73,830                       | 

24

---

|SILVERADO GOLD MINES LTD. AND ITS SUBSIDIARIES        
|------------------------------------------------------
|(An Exploration Stage Company)                        
|NOTES TO THE INTERIM CONSOLIDATED FINANCIAL STATEMENTS
|as of August 31, 2010 (Unaudited)                     
|(Stated in
      United States Dollars)               

Note 14  Commitments and Contingencies

a)        Severance
Agreement with Director

The Company has entered into a severance agreement with a
director and chief executive officer of the Company. The agreement provides for
severance arrangements where a change of control of the Company occurs, as
defined, and the director is terminated. The compensation payable to the
director aggregates $4,000,000 plus the amount of annual bonuses and other
benefits that he would have received in the eighteen months following
termination.

b)        Indemnity
Agreements with Directors

The Company entered into Indemnity Agreements (Agreements)
dated December 23, 2009, with each of its directors and executives, Garry L.
Anselmo, Stuart McCulloch, Donald G. Balletto, Robert M. Dynes, and John Mackay
(collectively, the Executives). These agreements supersede all prior
agreements whether oral or written. Pursuant to the terms of the Agreements, the
Company granted a general indemnification to the Executives against all claims
and costs that arise out of the scope or performance of duties as a director or
executive officer of the Company. The Agreements are conclusively deemed to
commence on, and be effective as of, the day upon which the Executive first
became or becomes a director or officer of the Company and survive and remain in
full force and effect after the Executive ceases to be a director or officer of
the Company and after the termination of the Executives employment with the
Company.

c)        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:

|Fiscal year ending November 30, 2010 | $ | 30,921  | 
|------------------------------------ | - | ------- | 
|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  | 
|                                     | $ | 493,936 | 

Note 15  Subsequent Events

The Company has evaluated subsequent events subsequent to
August 31, 2010 through the date the financial statements were made available
for issuance. Below are the reportable events.

|a) | On September 13, 2010, the Company sold and issued a 6%
      Convertible Redeemable Note to an investor in the principal amount of
      $98,660 in lieu of past due payments dating from August through
      December 2009. The holder of this note is entitled, at its option, at any
      time, to convert all or any amount of the outstanding principal face
      amount into shares of the Companys common stock, at a conversion price for each share of common stock
      equal to 65% of the variable weighted average price (the VWAP) comprised
      of 3 of the lowest VWAP prices for the prior 20 trading days. This note
      was converted to 52,339,348 of the Companys restricted common shares at a
    price of $ 0.00189 per share in September 2010.
|-- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

25

---

|SILVERADO GOLD MINES LTD. AND ITS SUBSIDIARIES        
|------------------------------------------------------
|(An Exploration Stage Company)                        
|NOTES TO THE INTERIM CONSOLIDATED FINANCIAL STATEMENTS
|as of August 31, 2010 (Unaudited)                     
|(Stated in
      United States Dollars)               

Note 15  Subsequent Events (Continued)

|b) | On October 5, 2010, the Company sold and issued a 6%
      Convertible Redeemable Note to an investor in the principal amount of
      $77,229 in lieu of past due payments dating prior to March 8, 2010. The
      holder of this note is entitled, at its option, at any time, to convert
      all or any amount of the outstanding principal face amount into shares of
      the Companys common stock, at a
      conversion price for each share of common stock equal to 65% of the VWAP
      comprised of three of the lowest VWAP prices for the prior 35 trading
      days. This note was converted to 40,970,328 of the Companys restricted
    common shares at a price of $0.00189 per share in October 2010. 
|-- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  
|c) | On October 14, 2010, the Company sold and issued a 6%
      Convertible Redeemable Note to an investor in the principal amount of
      $26,555 in lieu of past due payments dating prior to March 8, 2010. The
      holder of this note is entitled, at its option, at any time, to convert
      all or any amount of the outstanding principal face amount into shares of
      the Companys common stock, at a
      conversion price for each share of common stock equal to 65% of the VWAP
      comprised of three of the lowest VWAP prices for the prior 35 trading
      days. This note was converted to 14,087,347 of the Companys restricted
    common shares at a price of $0.00189 per share in October 2010.
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  
|d) | On September 17, 2010, the Company sold and issued a
      Secured Convertible Note (the Note) to an investor (the Holder) for
      the purchase price of $165,000. An original issue discount of 10% of the
      principal amount of the Note took effect upon issuance, and the Company
      also will issue 20,000,000 shares of its common stock to the Holder in
      connection with the issuance of the Note. Unless sooner converted in full
      by the Holder, the Note shall mature on September 17, 2011. The Note
      provides the Holder with the option, from and after October 1, 2010, to
      convert the outstanding amount of the Note into shares of the Companys
      common stock.          
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  
|e) | The Company issued 10,000,000 shares at a price of
      $0.00320 per share, 2,918,195 shares at a price of $0.00290, 8,132,991
      shares at a price of $0.00522 per share and 1,758,525 shares at a price of
      $0.0066108 per share totaling $94,542 as various service fees.                                                                                                                                                                                                                                                                                                                                                                                                                                            
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  
|f) | The Company issued 9,500,000 restricted common shares at
      a price of $0.00233 totaling $22,135 following certain investors exercise
    of common stock purchase warrants.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  
|g) | The Company completed two private placements resulting in
      the issuance of 15,945,484 units at a price of $ 0.003 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
      $0.01 within the one year period commencing from the date of the
      subscription agreement. The Company received $47,836 from such private
      placements.                                                                                                                                                                           
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  
|h) | The Company completed the sale and issuance of 10,431,154
      restricted common shares to one accredited investor following such
      investors partial conversion of a convertible promissory note. The per
      share conversion price of such shares was $ 0.00144, resulting in a
      conversion price of $ 15,000.                                                                                                                                                                                                                                                                                                                                                                                                   

26

---

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, 2010. It should be read in conjunction with
the Companys audited consolidated financial statements and footnotes for the
fiscal year ended November 30, 2009 and the interim unaudited consolidated
financial statements for the nine-month period ended August 31, 2010.

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 located 175
miles north of Fairbanks, Alaska. We are also continuing with exploration
activities on our Hammond Gold Property, located approximately three miles
northeast of our Nolan Property, and on our Eagle Creek Gold and Antimony
Property and Ester Dome Gold Project, which are both located in the Fairbanks
Mining District.

27

---

The Company has also been working 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.

Since May 2008, the Mineral Industry Research Laboratory
(MIRL), University of Alaska Fairbanks, has been conducting research for the
Company on the hydrothermal upgrading of Mississippi lignite coal from the Red
Hills Mine. This lignite was the targeted feedstock for a LRCWF Demonstration
Project proposed for the Red Hills Ecoplex, Ackerman, MS.

To date, research findings show that the lignite responds well
to hydrothermal treatment (HT). HT at 290° C, for a residence time of 20
minutes, produces an upgraded lignite product suitable for LRCWF production,
provided acceptable ash levels can be achieved. These HT conditions are
essentially the same as those previously used by Silverado during its
preliminary design of the demonstration project facilities. MIRL research has
also produced valuable grinding circuit design parameters. Overall, MIRL
research concludes that the MS lignites response to hydrothermal treatment
follows a common pattern exhibited by low rank coals previously studied at MIRL
since 1989. Future research at MIRL will address lignite ash reduction and ash
chemistry, HT modeling, and HT process water and gas composition.

SUMMARY OF MINERAL EXPLORATION PROGRAM AND PLAN OF
OPERATION

The Company holds interests in the following four groups of
mineral properties in Alaska, U.S.A.:

1) ****Nolan
property;

2) ****Hammond
Property (Slisco Bench);

3) ****Eagle
Creek Property; and

4) ****Ester
Dome Property.

All of these properties are in the exploration stage and have
no proven reserves as of August 31, 2010, with the exception of the Nolan
property, which has a probable reserve but requires a more extensive feasibility
study to ascertain if such probable reserve can be classified as a proven
reserve.

The following disclosures incorporate the results of technical
reports prepared during 2008 and 2009 by an independent and AIPG Certified
Professional Geologist (the QP), in accordance with the requirements of
Canadian National Instrument 43-101  Standards of Disclosure for Mineral
Projects (NI 43-101). Investors may view the NI 43-101 reports at the
Companys website at www.silverado.com. The NI 43-101 reports provide
disclosure regarding Silverados Alaska properties in accordance with NI 43-101.
U.S. Investors are cautioned that the United States Securities and Exchange
Commission does not recognize the termsindicated resourcesandinferred
resources.

Based on the completion of a preliminary feasibility study by
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, dated January 1, 2009 and amended
June 1, 2009 (the Technical Report), concluded that the resource estimates
disclosed by the Company on November 17, 2008 could be
reclassified as a probable reserve. The Technical Report can also be found at
the Companys website at www.silverado.com.

28

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Likewise, the 2009 lode exploration program (core drilling) at
Nolan did not change the probable mineral reserve estimates, but there was a
significant increase in the estimated indicated lode mineral resources at both
Workmans and Pringle Bench. The new resource estimates were disclosed to the
public on January 7, 2010. Refer to the Silverado 2009 10-K report which can be
found on SEDAR and EDGAR for the updated Nolan Gold and Antimony Project
resource estimates. The mineral resource estimates for the Nolan Gold and
Antimony project are also listed on the Company website atwww.silverado.com, under NEWS  Released on January 7,
2010.

Overall mineral exploration performance during the nine month
period ended August 31, 2010 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, 2010, 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.

29

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The Company currently is in a transitional phase between
exploration and development on this property. The preliminary hardrock
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, did not change in the amended June 1, 2009
Technical Report. Also, the current probable reserves at Workmans Bench did not
change following the 2009 exploration program at the Nolan Creek property.
The current mineral resource estimates from the Workmans Bench and
Pringle Bench lode prospects were determined by the Company QP following the
2009 drill program, and the estimates were disclosed to the public on January 7,
2009. Resources were increased substantially after the 2009 drilling and January
7, 2010 report analysis. Investors need to be cautioned that the new resource
estimates are not reserves and have not been subjected to enough relevant
testing to demonstrate economic viability.The current resource
estimates for the Nolan Gold and Antimony Project are listed 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 $1,100/oz for gold and US $4.00/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.

Total Probable Lode Mineral Reserves, Nolan Creek Area
effective January, 1 2009

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 study, which is not the same as a legal feasibility
study.

Silverados Probable Lode Mineral Reserves, Nolan Creek Area

|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          

30

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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.                                                         
|-- | Effective date of the estimate is January 1. 2009. The
      2009 drill program was not involved with the current reserve block and as
      such did not affect the grade or tonnage listed.

Total Indicated Lode Mineral Resources, Nolan Creek Area
effective January 7, 2010

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

The following table uses the term indicated 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.

The following table summarizes the indicated mineral
resources for the Workmans Bench gold and antimony deposit as a result of the
2009 investigation.The 2009 exploration program focused on the A Zone in
an area vertically above the current mineral reserve block and was not
previously drilled or investigated prior to 2009. The effective date of these
resources is January 7, 2010.

Silverados Indicated Lode Mineral Resources, Nolan Creek
Property

|Resource Category | Vein-Fault Ore Zone     | Cut-off (% Sb) | Quantity (short tons) | Grade (% Sb) | Metal (ton Sb) | Grade (oz/ton Au) | Metal (oz Au)
|----------------- | ----------------------- | -------------- | --------------------- | ------------ | -------------- | ----------------- | -------------
|Indicated         | A Zone                  | 4.0            | 11,394                | 20.00        | 2,278.4        | 0.244             | 2,777.0      
|Indicated         | B Zone                  | 4.0            | 645                   | 20.51        | 132.3          | 0.099             | 64.1         
|Indicated         | A and B 
      Combined | 4.0            | 12,039                | 20.02        | 2,410.7        | 0.236             | 2,841.1      

Notes:

- Mineral Resources which are not mineral reserves do not have demonstrated
  economic viability. The estimate of mineral resources may be materially
  affected by environmental, permitting, legal, title, taxation,
  socio-political, marketing, or other relevant issues.
- 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 refers to the combined values
  of gold plus antimony expressed in terms of antimony alone.

Mineral Resources that are not mineral reserves do not have
demonstrated economic viability.

Total Inferred Lode Mineral Resources, Nolan Creek Area
effective January 7, 2010

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. investorsare cautioned not to assume that any part or all of mineral
deposits in these categories will ever be converted into reserves.

31

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The following table summarizes the inferred mineral
resources for the gold and antimony deposit, effective January 7,
2010.

|Resource Category | Deposit                    | Cut-off (% Sb) | Quantity (short tons) | Grade (% Sb) | Metal (ton Sb) | Grade (oz/ton Au) | Metal (oz Au)
|----------------- | -------------------------- | -------------- | --------------------- | ------------ | -------------- | ----------------- | -------------
|Inferred          | Pringle                    | 4.0            | 12,817                | 19.61        | 2,513.8        | 0.499             | 6,390.4      
|Inferred          | Workmans                  | 4.0            | 21,389                | 12.11        | 2,590.6        | 0.272             | 5,816.6      
|Inferred          | Pringle + 
      Workmans | 4.0            | 34,206                | 14.92        | 5,104.4        | 0.357             | 12,207.0     

Notes:

- Mineral Resources which are not mineral reserves do not have demonstrated
  economic viability. The estimate of mineral resources may be materially
  affected by environmental, permitting, legal, title, taxation,
  socio-political, marketing, or other relevant issues.
- 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 refers to the combined values
  of gold plus antimony expressed in terms of antimony alone.

Mineral Resources that are not mineral reserves do not have
demonstrated economic viability.

Plan of Operations:

The plan of operations for the Nolan Gold Project for the
remainder of the 2010 fiscal year is the 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, Pringle and
Hillside Areas. The Company is in a transitional phase between exploration and
development. The recent preliminary feasibility study effective January 1, 2009,
supported a 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 2008 feasibility study by Bundtzen (QP) concluded that the
Nolan Gold and Antimony Project in the Workmans Bench area is economically
viable.

Our plan of operations involves collecting a 1,000 cu yd bulk
sample of the stibnite-gold vein material from the mineralized zones referred to
as the A Zone and possibly B and West Zones. The bulk sample will be for
larger scale milling and processing tests, and a more accurate mineralogical
determination of the gold, especially what the Company has termed nugget
effect of the gold found in the massive stibnite veins. The Company believes
that the grade of gold will increase upon the extraction of the larger scale
bulk sample due to the nugget effect which is not represented during the
drilling effort. The successful extraction of a 1,000 cu yd sample will give a
better indication of the special and physical relationships between the gold and
the antimony. The bulk sample is also necessary for additional verification of
the purity of the antimony content in the stibnite and whether or not at depth
the current exceptional purity is sustainable.

Also, the plan of operations for 2010 involves performing a
variety of characterization studies in preparation for the development stage and
for permitting requirements necessary for the future production of the
antimony-gold deposit underlying the Workmans Bench. These studies include but
are not limited to additional hydrologic studies proximal to our planned
underground workings, environmental baseline studies of the flora and fauna and
the baseline chemical and physical parameters of the creek water, and acid-base
accounting (ABA) studies of the ore-hosting rock determining an appropriate,
effective and safe disposal of acid mine waste rock.

Much of the work planned for 2010 is season-dependent. During
the next 3 months we plan to perform maintenance and upgrades to our diamond
core drill rig as well as other mechanized equipment which is kept on site at Nolan Creek. Also, additional drill core samples from
previous drilling campaigns will be selected for geochemical analyses for
in-fill purposes. The samples will be collected from the areas between the
previously determined A and B and West zones. The Company does not plan to
sample between the B and C zones. Sampling the intermediate areas is in response
to the increase in gold prices and the Company wants to make a determination of
a possible bulk minable resource which would require geochemical assays across
broader zones

32

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Depending on available capital, we plan the procurement of
necessary facility and system upgrades, as well as the acquisition of necessary
equipment and the construction of a 500 ton per day mill facility. Currently we
have a fully functioning all-season enclosed 26 man camp with three functioning
offices with computers and internet access. The camp has a STW treatment plant
for sewage and graywater treatment. The camp site also has a large mechanics
shop for working on heavy equipment such as backhoes and bulldozers. The camp
also has multiple ADEC approved containments with tanks capable of storing
30,000 gallons of diesel fuel, and a peripheral explosives storage area.

In response to the studies last fall and this spring of core
drilled in 2009 on Pringle Bench disclosing continual antimony and more
significantly the discovery in drill core of high grade drill core assays (+1 to
+6 oz gold/ton) along with the continued encountering of wide sections of quartz
carbonate stock work veins surrounding the main vein with widths of up to 60
feet showing native gold and stibnite (antimony sulfide); the Company has
determined it could accomplish its metallurgical work on both the Pringle and SW
Workmans Bench areas by taking a split of the large HQ2 diamond drill core and
creating bulk samples from select zones as identified by geologic core logging
and the work performed on these bulk samples would suffice for metallurgical
information rather than samples taken directly from underground. This is
possible due largely to the continuity of the mineralized vein from one hole to
another and to the competency of the country rock around the main vein and
between veins in the area of the mineralized quartz carbonate stockwork. 71 of
71 drill holes encountered the ore vein over a continuous strike length of 3,500
feet by a depth of 500 feet.

Readers and investors need to take caution, in that much
of the work planned in 2010 is contingent upon available funding and the success
and speed of the permitting process.

Since the Project is advancing into the development stage,
exploration drilling will not be conducted in the Fortress area which is part of
a gold bearing east-west trending deformation zone.

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.

The Company has been and will continue 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, was halted due to
freezing temperatures during October of 2008, and was continued in early June of
2009. The last baseline water sample for 2009 was collected in late September,
and the sampling was continued in 2010 and will again cease in October of
2010.

On May 14, 2010 the United States Army Corps of Engineers
issued a five year permit from that date. The permit allows the Company to
conduct Hard Rock Exploration to include diamond core drilling at the Nolan
Creek Mine.

33

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The access road into the Nolan Creek camp as well as the 26 man
camp facility received construction upgrades in 2009 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, is still 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 500 ton per day 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, as well as on-going ore processing.

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

| | 1. | Continued aggressive permitting.                                                                                                                                                                                                                                                                              
| | -- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | 2. | Prepare for the 2011 diamond core drill program which
      will utilize a minimum of two mobile drill rigs. Depending on access to
      the more remote drill sites, the Company plans on drilling a minimum of
      30,000 feet of NQ2 or larger diameter core from the Solomon Shear Zone at
      Nolan.
| | 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. | Prepare for a possible 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 $50,000,000 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. The full expenditure of $50,000,000 is expected
to place the operation in profitable continuous production with a 500 ton per
day mill and a 200 ton per day mine advancing to 500 ton per day by year
three.

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.

34

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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

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 $38,000 remains
to be paid. The amount of $5,000 per year is required to be paid to keep the
agreement in good standing and applies to the buyout price. 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 ton 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 rock
located on the claims above the placer gold Treasure Creek portion of the
property. This may lead to the development of a bulk mineable 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
numerous mineralized targets which includes both gold-bearing mineralized
intrusive rock similar to the Fort Knox deposit operated by Kinross as well gold
and antimony mineralized vein-faults such as the Scrafford vein-fault (Number
One Vein) which was mined numerous times by different companies for over half a
century. 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 and Number Two Vein systems.

No funding has been advocated for the 2010 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.

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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 was limited field work on the property during the summer of 2010, which
consisted of small scale surveys and minor geologic assessment studies and data
compilation

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.

LIQUIDITY AND CAPITAL RESOURCES

Our current ratio (current assets divided by current
liabilities) as of August 31, 2010 was 0.05 as compared to 0.37 as of November
30, 2009. This ratio is commonly used as a measure of a companys liquidity. We
look at actual dollars in analyzing our liquidity. Since 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, it will be very difficult for the Company to meet the current and
anticipated obligations without raising additional capital. If we are not able
to raise adequate capital and to do so in a timely manner, we will not be able
to fully implement our business plan or sustain ongoing operations.

As of August 31, 2010, the Company had a working capital
deficit of $2,323,000 as compared to a working capital deficit of $1,272,000 as
of November 30, 2009. The Company had $17,655 cash on hand as of August 31, 2010
as compared to no cash and cash equivalents on hand as of November 30, 2009. The
Companys total assets for such periods were $2,548,000 (November 30, 2009:
$3,145,000) and the total current assets were $110,000 (November 30, 2009:
$745,000).

As of August 31, 2010, the Companys current assets consist of
$17,655 (November 30, 2009: $Nil) in cash, $6,316 (November 30, 2009: $6,316) in
gold inventory and $86,457 (November 30, 2009: $738,473) in prepaid and other
receivables. Included in prepaid and other receivables were non-cash prepaid
consulting and other fees of $54,710 (November 30, 2009: $716,865) paid through
issuances of the Companys common stock under the Companys equity compensation
plans. The majority of the Companys assets are long-term or non-cash in nature
and thus considered being of lower liquidity.

The Companys mineral rights were valued at $1,578,000 as of
August 31, 2010 as compared to $1,399,000 as of November 30, 2009, an increase
of $179,000 or 13%. The increase in the value of our mineral rights this past
nine months is directly attributable to $94,000 in claim fees
payment, $5,000 in royalty payment and $80,000 in an accrued royalty payment.
The net book value of our fixed assets was $860,000 as of August 31, 2010 as
compared to $1,002,000 as of November 30, 2009, a decrease of approximately
$142,000 or 14%. The decrease in the net book value of our fixed assets was due
to depreciation.

36

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The current liabilities as of August 31, 2010 totaled
$2,434,000 as compared to $2,017,000 as of November 30, 2009, an increase of
approximately $417,000 or 21%. Included in current liabilities are $947,000
(November 30, 2009: $1,064,000) due to related parties, $1,164,000 (November 30,
2009: $883,000) of accounts payable and accrued liabilities and $269,000
(November 30, 2009: $70,000) of convertible debt instruments.

The Company has not yet generated revenues since recommencement
of the exploration stage on December 1, 2001 and our cash was primarily
generated from the sale of our securities. During the nine months ended August
31, 2010, the Company raised $426,000 of net proceeds through completed private
placements, received $33,250 through uncompleted private placement subscriptions
and $201,000 through warrants exercise. The Company also received $251,000 of
net proceeds through the sale of convertible debentures and $50,000 through the sale of a promissory
note. In addition, the Companys related parties made loans as needed to the
Company during the nine months ended August 31, 2010 when the Companys
cash-flow was constrained.

During the fiscal year ended November 30, 2009, the Company
raised $2,047,000 of net proceeds through completed private placements and
received $100,000 through uncompleted private placement subscriptions. In
addition, the Company received $237,000 as a result of used mining equipment
disposals and $52,000 as a result of gold inventory sales during the fiscal year
ended November 30, 2009.

During the nine months ended August 31, 2010, the Company spent
$367,000 (2009: $654,000) on the mineral exploration program. In addition, the
Company has spent $2,592,000 (2009: $3,764,000) on other operating activities.
The Company has been reviewing its budgets for its current business needs and
its further exploration and early stage production at its Nolan Creek property
in Alaska. Our plan of mining operations in Alaska anticipates that we will need
to raise and expend approximately $10,000,000. We will also need to raise and
spend approximately $3,000,000 on general and administrative costs.

The Company expects to continue to be funded primarily from
equity financings and 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 ability of the Company to
complete the exploration and development of its mineral properties 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.

SEGMENT INFORMATION

The Company operates in one reportable segment, located in
United States, being the acquisition and exploration of mineral properties. The
Companys development of low-rank coal-water fuel, located in United States, is
in its initial stages and is not a reportable segment. Segmented information has
been compiled based on the geographic regions that the Company and its
subsidiaries registered and performed exploration and administration activities.

Assets by geographical segment as of the fiscal quarter ended
August 31, 2010 and the fiscal year ended November 30, 2009 is as follows:

37

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|As of August 31, 2010                                                                                |   | Canada    |  |   | United States |  |   | Total     | 
|---------------------------------------------------------------------------------------------------- | - | --------- |  | - | ------------- |  | - | --------- | 
|Current assets                                                                                       | $ | 85,737    |  | $ | 24,691        |  | $ | 110,428   | 
|Mineral rights                                                                                       |   | -         |  |   | 1,577,681     |  |   | 1,577,681 | 
|Property, plant and
      equipment, net                                                             |   | 350,157   |  |   | 509,681       |  |   | 859,838   | 
|Total assets, as of August 31, 2010                                                                  | $ | 435,894   |  | $ | 2,112,053     |  | $ | 2,547,947 | 
|                                                                                                     |   |           |  |   |               |  |   |           | 
|As of November 30, 2009                                                                              |   | Canada    |  |   | United States |  |   | Total     | 
|Current assets                                                                                       | $ | 720,088   |  | $ | 24,701        |  | $ | 744,789   | 
|Mineral rights                                                                                       |   | -         |  |   | 1,398,601     |  |   | 1,398,601 | 
|Property, plant and
      equipment, net                                                             |   | 423,121   |  |   | 578,888       |  |   | 1,002,009 | 
|Total assets, as of November 30, 2009                                                                | $ | 1,143,209 |  | $ | 2,002,190     |  | $ | 3,145,399 | 
|                                                                                                     |   |           |  |   |               |  |   |           | 
|Loss by geographical segment for the nine months
      ended August 31, 2010 and 2009 is as follows: |  
|                                                                                                     |   |           |  |   |               |  |   |           | 
|For the Nine Months Ended August 31, 2010                                                            |   | Canada    |  |   | United States |  |   | Total     | 
|Total comprehensive
      loss                                                                       | $ | 2,492,085 |  | $ | 505,829       |  | $ | 2,997,914 | 
|                                                                                                     |   |           |  |   |               |  |   |           | 
|For the Nine Months Ended August 31,
      2009                                                      |   | Canada    |  |   | United States |  |   | Total     | 
|Total comprehensive loss                                                                             | $ | 4,332,202 |  | $ | 1,031,644     |  | $ | 5,363,846 | 

RESULTS OF OPERATIONS  Nine months ended August 31, 2010
and 2009

The Company has not generated revenues since recommencement of
the exploration stage from December 1, 2001 to August 31, 2010. For the nine
months ended August 31, 2010, we reported a net loss of $2,981,000, or $0.002
per share, compared to a net loss of $5,364,000, or $0.004 per share for the
same period ended August 31, 2009, a decrease of approximately 44%.

The major decreases in nine months ended August 31, 2010, as
compared to the same period in 2009, were the Companys consulting fees by
$1,086,000, exploration expenses by $307,000, management services fees by
$484,000, reporting and investor relations by $104,000 and transfer agent and
filing fees by $37,000. These decreases were 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.

The major increases included in the net loss for nine months
ended August 31, 2010, as compared to the same period in 2009, were increases of
$269,000 for financing fees, $52,000 for legal and other professional fees and
$70,000 for interest expenses. Such increases were mainly due to cash
constraints and the increased legal and other profession requirements related to
the Companys efforts on restructuring, equity financing, development and
expansion.

During the nine months ended August 31, 2009, the Company wrote
off $261,000 of convertible debentures and accrued interest. Also, the Company
wrote off $600,000 of payables due to the related party, Tri-Con Mining Inc. and
issued 100,000,000 shares of the Companys common stock to an investor, valued
at $960,000, as payment of a commitment fee for an Equity Line of Credit
Agreement entered on May 6, 2009. These transactions are due to cash constraints
and the increased requirements related to the Companys efforts on equity
financing.

RESULTS OF OPERATIONS  Three months ended August 31,
2010 and 2009

The Company has not generated revenues since recommencement of
the exploration stage from December 1, 2001 to August 31, 2010. For the three
months ended August 31, 2010, we reported a net loss of $852,000, compared to a
net loss of $1,010,000 for the same period ended August 31, 2009, a decrease of
approximately 16%.

The major decreases in three months ended August 31, 2010, as
compared to the same period in 2009, were the Companys exploration expenses by
$287,000, management service fees by $122,000, consulting fees by $297,000, and reporting and investor relations by $66,000.
These decreases were 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.

38

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The major increases included in the net loss for three months
ended August 31, 2010, as compared to the same period in 2009, were increases of
$268,000 of financing expenses and $20,000 accrued interests on convertible and
promissory debentures. Such increases were mainly due to the increased
requirements related to the Companys efforts on equity financing.

RELATED PARTY TRANSACTIONS

The details of related party transactions are disclosed in
footnote 10 of the Companys interim unaudited consolidated financial statements
for the fiscal quarter ended August 31, 2010 (Item 1, above).

CRITICAL ACCOUNTING POLICIES

The details of our critical accounting policies are disclosed
in footnote 2 of the Companys interim unaudited consolidated financial
statements for the fiscal quarter ended August 31, 2010 (Item 1, above).

OFF-BALANCE SHEET ARRANGEMENTS

During the quarter ended August 31, 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 that would be considered material to
investors.

INFLATION

The amounts presented in the financial statements do not
provide for the effect of inflation on our operations or financial position. The
net operating losses shown would be greater than reported if the effects of
inflation were reflected either by charging operations with amounts that
represent replacement costs or by using other inflation adjustments.

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, 2010. This evaluation
was carried out under the supervision and with the participation of our Chief
Executive Officer Garry L. Anselmo and our 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:

39

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| | 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, 2010, there were no
changes that had a material effect on, or are reasonably likely to affect, our
internal control over financial reporting.

It should be noted that an internal control system, however
well designed and operated, can provide only reasonable, and not absolute,
assurance that the objectives of the controls system are met. Because of the
inherent limitations in all control systems, no evaluation of controls can
provide absolute assurance that all control issues and instances of fraud, if
any, within a company have been detected. In addition, this evaluation was made
in light of the fact the Company has no operation revenues and limited cash on
hand.

40

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PART II

OTHER INFORMATION

ITEM 1. LEGAL PROCEEDINGS

The Company is not a party to, and its property is not the
subject of, any material pending legal proceeding, in either case other than
ordinary routine litigation incidental to the business. The Company also is not
aware of any proceeding that a governmental authority is contemplating.

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

Not applicable.

ITEM 5. OTHER INFORMATION

None.

41

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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  | Shared Well Agreement between the Company and
      Sukakpak, Inc., dated May 17, 2007 (10)                                                                                                   
|10.12  | Lease Agreement between the
      Company and TA Properties (Canada) Ltd., dated March 30, 2007
      (11)                                                                                    
|10.13  | Indemnity Agreements between the Company and
      Garry L. Anselmo, Stuart C. McCulloch, and James F. Dixon, each dated
      October 27, 2008 (12)                                          
|10.14  | Indemnity Agreements between
      the Company and Garry L. Anselmo, Stuart C. McCulloch, Donald G. Balletto,
      Robert M. Dynes and John Mackay, each dated December 23, 2009
      (13)  
|10.15  | 2009 Equity Compensation Plan (14)                                                                                                                                                            
|10.16  | 2009-II Equity Compensation
      Plan (15)                                                                                                                                                   
|10.17  | Equity Line of Credit Agreements between the
      Company and Ashborne Finance Ltd.(16)                                                                                                      
|10.18  | Consulting Agreements between
      the Company and 1315781 Ontario Inc. (17)                                                                                                                 
|10.19  | Note Purchase Agreement between the Company and
      St. George Investments, LLC. (18)                                                                                                       
|10.20  | 2009-III Equity Compensation
      Plan (19)                                                                                                                                                  
|10.21  | 2010-I Equity Compensation Plan (20)                                                                                                                                                          
|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.                    

42

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|(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 Annual Report on
      Form 10-KSB for the fiscal year ended November 30, 2007.
|(11) | Filed as an exhibit to the Companys Quarterly Report on
      Form 10-QSB filed on July 15, 2008.                  
|(12) | Filed as exhibits to the Companys Current Report on Form
      8-K filed on October 29, 2008.                      
|(13) | Filed as exhibits to the Companys Current Report on Form
      8-K filed on December 23, 2009.                     
|(14) | Filed as an exhibit to the Companys Registration
      Statement on Form S-8 filed on January 29, 2009.            
|(15) | Filed as an exhibit to the Companys Registration
      Statement on Form S-8 filed on June 1, 2009.                
|(16) | Filed as an exhibit to the Companys Current Report on
      Form 8-K filed on May 12, 2009.                        
|(17) | Filed as an exhibit to the Companys Quarterly Report on
      Form 10-Q filed on October 15, 2009.                 
|(18) | Filed as an exhibit to the Companys Current Report on
      Form 8-K filed on January 28, 2010.                    
|(19) | Filed as an exhibit to the Companys Registration
      Statement on Form S-8 filed on December 16, 2009.           
|(20) | Filed as an exhibit to the Companys Registration
      Statement on Form S-8 filed on June 9, 2010.                

*    Filed herewith.

43

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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 14, 2010 | /s/ Garry L. Anselmo                         
|                       | Garry L. Anselmo                             
|                       | President, Chief Executive Officer (Principal
|                       | Executive Officer)                           
|                       |                                              
|                       |                                              
|DATE: October 14, 2010 | /s/ Donald Balletto                          
|                       | Donald Balletto                              
|                       | Chief Financial Officer                      
|                       | (Principal Financial Officer)                

44

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