---

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: February
28,2010

or

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

For the transition period from: ___________ to ___________

Commission File Number: 0-12132

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

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

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

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

Indicate by check mark whether the Registrant (1) has filed all
reports required to be filed by Section 13 or 15(d) of the Securities Exchange
Act of 1934 during the preceding 12 months (or for such shorter period that the
Registrant was required to file such reports), and (2) has been subject to such
filing requirements for the past 90 days. 
Yes [X] No [ ]

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

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

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

Indicate the number of shares outstanding of each of the
issuers classes of common stock, as of the latest practicable date:
1,723,020,139 common shares, no par value, outstanding as of April 12, 2010.

1

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|SILVERADO GOLD MINES LTD. AND ITS SUBSIDIARIES
|----------------------------------------------
|(An Exploration Stage Company)                
|                                              
|INDEX                                         
|                                              
|Quarterly Period Ended February 28, 2010      

|           |                       |                                                                                                                                                                                                                                                            | Page 
|---------- | --------------------- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | -----
|PART I     | FINANCIAL INFORMATION |                                                                                                                                                                                                                                                           
|           | ITEM 1                | FINANCIAL STATEMENTS                                                                                                                                                                                                                                       |      
|           |                       | Consolidated Balance Sheets as of February 28, 2010 (unaudited)
      and November 30, 2009 (audited)                                                                                                                                                      | 3    
|           |                       | Consolidated Statements of Operations and Other Comprehensive Loss for the three months
      ended February 28, 2010 and 2009, and for the period from December 1, 2001
      (Recommencement of Exploration Stage) through February 28, 2010 (unaudited) | 4    
|           |                       | Consolidated Statements of Cash Flows for the three months
      ended February 28, 2010 and 2009, and for the period from December 1, 2001
      (Recommencement of Exploration Stage) through February 28, 2010 (unaudited)                              | 5    
|           |                       | Notes to the Consolidated Financial Statements as of February
      28, 2010 (unaudited)                                                                                                                                                                   | 6-32 
|           | ITEM 2                | MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION
      AND RESULTS OF OPERATIONS                                                                                                                                                                | 33-44
|           | ITEM 3                | QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK                                                                                                                                                                                                 | 45   
|           | ITEM 4                | CONTROLS AND PROCEDURES                                                                                                                                                                                                                                    | 45   
|PART II    | OTHER INFORMATION     |                                                                                                                                                                                                                                                           
|           | ITEM 1                | LEGAL PROCEEDINGS                                                                                                                                                                                                                                          | 46   
|           | ITEM 2                | UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS                                                                                                                                                                                                | 46   
|           | ITEM 3                | DEFAULTS UPON SENIOR SECURITIES                                                                                                                                                                                                                            | 46   
|           | ITEM 4                | SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS                                                                                                                                                                                                        | 45   
|           | ITEM 5                | OTHER INFORMATION                                                                                                                                                                                                                                          | 46   
|           | ITEM 6                | EXHIBITS                                                                                                                                                                                                                                                   | 47-48
|SIGNATURES |                       | 49                                                                                                                                                                                                                                                        

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)             

|                                                                                                          |   | February 28, 2010 |   |   | November 30, 2009 |  
|--------------------------------------------------------------------------------------------------------- | - | ----------------- | - | - | ----------------- | -
|                                                                                                          |   | (Unaudited)       |   |   | (Audited)         |  
|ASSETS                                                                                                    |   |                   |   |   |                   |  
|Current Assets                                                                                            |   |                   |   |   |                   |  
|Cash and cash
      equivalents                                                                           | $ | 96,236            |   | $ | -                 |  
|Gold inventory                                                                                            |   | 6,316             |   |   | 6,316             |  
|Prepaid and
      other receivables                                                                       |   | 276,130           |   |   | 738,473           |  
|Total Current Assets                                                                                      |   | 378,682           |   |   | 744,789           |  
|Mineral rights                                                                                            |   | 1,478,601         |   |   | 1,398,601         |  
|Property, plant and equipment, net                                                                        |   | 953,263           |   |   | 1,002,009         |  
|TOTAL ASSETS                                                                                              | $ | 2,810,546         |   | $ | 3,145,399         |  
|                                                                                                          |   |                   |   |   |                   |  
|                                                                                                          |   |                   |   |   |                   |  
|LIABILITIES                                                                                               |   |                   |   |   |                   |  
|Current Liabilities                                                                                       |   |                   |   |   |                   |  
|Accounts payable and accrued
      liabilities                                                            | $ | 1,000,360         |   | $ | 882,768           |  
|Due to related
      parties                                                                              |   | 1,020,952         |   |   | 1,064,046         |  
|Promissory note                                                                                           |   | 50,000            |   |   | -                 |  
|Convertible debt
      instruments                                                                        |   | 150,267           |   |   | 69,760            |  
|Total Current Liabilities                                                                                 |   | 2,221,579         |   |   | 2,016,574         |  
|Asset retirement obligation                                                                               |   | 547,162           |   |   | 540,407           |  
|Mineral claims royalty payable                                                                            |   | 550,000           |   |   | 470,000           |  
|Total Liabilities                                                                                         |   | 3,318,741         |   |   | 3,026,981         |  
|                                                                                                          |   |                   |   |   |                   |  
|STOCKHOLDERS' EQUITY (DEFICIT)                                                                            |   |                   |   |   |                   |  
|Common stock                                                                                              |   |                   |   |   |                   |  
|Authorized:
                   
      unlimited common shares with no par value                           |   |                   |   |   |                   |  
|Issued and
      outstanding:
                   
      1,651,369,045 common shares (2009: 1,577,667,073) |   | 101,313,453       |   |   | 100,883,269       |  
|Additional paid-in capital                                                                                |   | 1,214,180         |   |   | 1,206,124         |  
|Subscriptions received                                                                                    |   | 172,324           |   |   | 100,000           |  
|Accumulated deficit during exploration
      stage                                                        |   | (103,208,152      | ) |   | (102,070,975      | )
|Total Stockholders' Equity (Deficit)                                                                      |   | (508,195          | ) |   | 118,418           |  
|TOTAL LIABILITIES AND STOCKHOLDERS'
      EQUITY (DEFICIT)                                                | $ | 2,810,546         |   | $ | 3,145,399         |  

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

---

|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 February
      28, |   |   | December 1, 2001 to |  
|                                                                             |   | 2010                                  |   |   | 2009                |   |   | February 28, 2010      |  
|General and administrative expenses                                          |   |                                       |   |   |                     |   |   |                        |  
|Accounting and auditing                                                      | $ | 6,883                                 |   | $ | 8,490               |   | $ | 842,005                |  
|Advertising, promotion and
      travel                                      |   | 12,051                                |   |   | 12,132              |   |   | 3,022,654              |  
|Consulting fees                                                              |   | 563,167                               |   |   | 738,643             |   |   | 11,094,855             |  
|Depreciation, accretion and
      impairment                                 |   | 48,746                                |   |   | 64,239              |   |   | 2,824,561              |  
|Exploration expenses                                                         |   | 85,732                                |   |   | 118,101             |   |   | 15,669,479             |  
|Financing activities                                                         |   | -                                     |   |   | -                   |   |   | 389,503                |  
|Legal and other professional fees                                            |   | 191,819                               |   |   | 98,601              |   |   | 1,757,966              |  
|Management services                                                          |   | 46,417                                |   |   | 231,694             |   |   | 6,445,404              |  
|Office expenses                                                              |   | 75,610                                |   |   | 85,423              |   |   | 5,025,548              |  
|Related party charges in
      excess of costs incurred                      |   | 7,413                                 |   |   | 146,774             |   |   | 4,918,501              |  
|Reporting and investor relations                                             |   | 58,039                                |   |   | 62,816              |   |   | 1,401,390              |  
|Research                                                                     |   | -                                     |   |   | -                   |   |   | 1,064,735              |  
|Transfer agent and filing fees                                               |   | 17,752                                |   |   | 47,333              |   |   | 397,583                |  
|Write-off of mineral claim
      expenditures                                |   | -                                     |   |   | -                   |   |   | 1,159,529              |  
|Write-down of property, plant and equipment                                  |   | -                                     |   |   | -                   |   |   | 329,679                |  
|Total expenses                                                               |   | 1,113,629                             |   |   | 1,614,246           |   |   | 56,343,392             |  
|Loss from operations                                                         |   | (1,113,629                            | ) |   | (1,614,246          | ) |   | (56,343,392            | )
|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                                                    |   | 33                                    |   |   | 45                  |   |   | 278,023                |  
|Interest expenses on capital lease obligations                               |   | -                                     |   |   | -                   |   |   | (333,221               | )
|Interest expenses on
      convertible debentures                            |   | (13,563                               | ) |   | (2,800              | ) |   | (721,046               | )
|Other interest expenses and bank charges                                     |   | (6,977                                | ) |   | (1,872              | ) |   | (79,186                | )
|Commitment fees                                                              |   | -                                     |   |   | -                   |   |   | (960,000               | )
|Loss on disposal of property, plant and
      equipment                      |   | -                                     |   |   | -                   |   |   | (279,529               | )
|Write-off of convertible
      debentures and accrued interests              |   | -                                     |   |   | -                   |   |   | 260,827                |  
|Total other expenses                                                         |   | (20,507                               | ) |   | (4,627              | ) |   | (1,834,132             | )
|Net loss before cumulative effect of
      accounting change                 |   | (1,134,136                            | ) |   | (1,610,213          | ) |   | (54,465,531            | )
|Cumulative effect of accounting change                                       |   | -                                     |   |   | -                   |   |   | (99,481                | )
|Net loss                                                                     |   | (1,134,136                            | ) |   | (1,610,213          | ) |   | (54,565,012            | )
|Other comprehensive income (loss)                                            |   |                                       |   |   |                     |   |   |                        |  
|(Loss) / Gain on foreign
      exchange                                      |   | (3,041                                | ) |   | 49,659              |   |   | 261,804                |  
|Net comprehensive loss for the period                                        | $ | (1,137,177                            | ) | $ | (1,560,554          | ) | $ | (54,303,208            | )
|Net loss per share                                                           | $ | (0.001                                | ) | $ | (0.002              | ) |   |                        |  
|Basic and diluted weighted average number of
      common shares outstanding |   | 1,613,165,291                         |   |   | 1,013,829,201       |   |   |                        |  

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 |  
|                                                                                                  |   | Three Months Ended February
      28, |   |   | December 1, 2001 to |  
|                                                                                                  |   | 2010                                  |   |   | 2009                |   |   | February 28, 2010      |  
|CASH AND CASH EQUIVALENTS PROVIDED BY
      (USED IN):                                            |   |                                       |   |   |                     |   |   |                        |  
|Operating activities:                                                                             |   |                                       |   |   |                     |   |   |                        |  
|Net comprehensive loss for the
      period                                                       | $ | (1,137,177                            | ) | $ | (1,560,554          | ) | $ | (54,303,208            | )
|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                                        |   | 48,746                                |   |   | 64,239              |   |   | 2,824,561              |  
|Loss on disposal
      of property, plant and equipment                                           |   | -                                     |   |   | -                   |   |   | 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 |   | 243,936                               |   |   | 429,211             |   |   | 6,129,974              |  
|Non-cash prepaid
      consulting fees expensed during the period                                 |   | 482,282                               |   |   | 312,500             |   |   | 815,782                |  
|Non-cash commitment fees
      resulting from share issuance                                      |   | -                                     |   |   | -                   |   |   | 960,000                |  
|Non-cash
      financing expense                                                                  |   | -                                     |   |   | -                   |   |   | 252,003                |  
|Interest accrued or incurred on
      convertible debentures                                      |   | 13,563                                |   |   | 2,800               |   |   | 511,609                |  
|Write-off of
      convertible debentures and accrued interests                                   |   | -                                     |   |   | -                   |   |   | (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                                                                     |   | 1,058                                 |   |   | (17,733             | ) |   | (17,675                | )
|Accounts payable
      and accrued liabilities                                                    |   | 117,592                               |   |   | 40,308              |   |   | 503,454                |  
|Asset retirement obligation                                                                       |   | 6,755                                 |   |   | 6,716               |   |   | 17,851                 |  
|Net cash used in operating
      activities                                                       |   | (223,244                              | ) |   | (678,723            | ) |   | (37,102,609            | )
|                                                                                                  |   |                                       |   |   |                     |   |   |                        |  
|Investing activities:                                                                             |   |                                       |   |   |                     |   |   |                        |  
|Investment in mineral properties                                                                  |   | -                                     |   |   | -                   |   |   | (1,245,101             | )
|Purchase of property, plant
      and equipment                                                   |   | -                                     |   |   | -                   |   |   | (3,079,696             | )
|Proceeds from sale of property, plant and
      equipment, net                                    |   | -                                     |   |   | 97,510              |   |   | 825,299                |  
|Net cash provided by (used in) investing
      activities                                         |   | -                                     |   |   | 97,510              |   |   | (3,499,498             | )
|                                                                                                  |   |                                       |   |   |                     |   |   |                        |  
|Financing activities:                                                                             |   |                                       |   |   |                     |   |   |                        |  
|Advances  (to) from related party                                                                 |   | (43,094                               | ) |   | 263,367             |   |   | 729,640                |  
|Repayment of loans payable                                                                        |   | -                                     |   |   | -                   |   |   | (110,728               | )
|Repayment of capital lease obligation                                                             |   | -                                     |   |   | -                   |   |   | (1,131,607             | )
|Convertible debentures                                                                            |   | 75,000                                |   |   | -                   |   |   | 150,000                |  
|Promissory note                                                                                   |   | 50,000                                |   |   | -                   |   |   | 50,000                 |  
|Share subscriptions received                                                                      |   | 172,324                               |   |   | 135,000             |   |   | 172,324                |  
|Common stock issued for cash (net of share
      issue costs)                                     |   | 65,250                                |   |   | 147,000             |   |   | 40,821,621             |  
|Net cash provided by financing
      activities                                                   |   | 319,480                               |   |   | 545,367             |   |   | 40,681,250             |  
|                                                                                                  |   |                                       |   |   |                     |   |   |                        |  
|Increase (Decrease) in cash and cash
      equivalents                                            |   | 96,236                                |   |   | (35,846             | ) |   | 79,143                 |  
|                                                                                                  |   |                                       |   |   |                     |   |   |                        |  
|Cash and cash equivalents, at beginning
      of the period                                       |   | -                                     |   |   | 50,991              |   |   | 17,093                 |  
|                                                                                                  |   |                                       |   |   |                     |   |   |                        |  
|Cash and cash equivalents, at end of the
      period                                             | $ | 96,236                                |   | $ | 15,145              |   | $ | 96,236                 |  

Supplemental Cash Flow Information (Note 14)

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 February 28, 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 receiving 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 February 28, 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.

6

---

|SILVERADO GOLD MINES LTD. AND ITS SUBSIDIARIES        
|------------------------------------------------------
|(An Exploration Stage Company)                        
|NOTES TO THE INTERIM CONSOLIDATED FINANCIAL STATEMENTS
|as of February 28, 2010 (Unaudited)                   
|(Stated in
      United States Dollars)               

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

|a) | Basis of Consolidation (Continued)
|-- | ----------------------------------

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.

|b) | Accounting Standards Codification
|-- | ---------------------------------

In June 2009, the Financial Accounting Standards Board (FASB)
issued FASB Accounting Standards Codification (ASC) 105, GAAP, 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 issued for the fiscal year ended November 30, 2009. The
adoption of FASB ASC 105 did not impact the Companys financial position or
results of operations.

|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 Financial Accounting Standards Board (FASB)
Accounting Standards Codification (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) | Environmental Costs
|-- | -------------------

Environmental expenditures that relate to current operations
are expensed or capitalized as appropriate. Expenditures that relate to an
existing condition caused by past operations and which do not contribute to
current or future revenue generation are expensed. Liabilities are recorded when
environmental assessments and/or remedial efforts are probable, and the costs
can be reasonably estimated. Generally, the timing of these accruals coincides
with the earlier of completion of a feasibility study or the Companys
commitment to a plan of action based on the then known facts.

7

---

|SILVERADO GOLD MINES LTD. AND ITS SUBSIDIARIES        
|------------------------------------------------------
|(An Exploration Stage Company)                        
|NOTES TO THE INTERIM CONSOLIDATED FINANCIAL STATEMENTS
|as of February 28, 2010 (Unaudited)                   
|(Stated in
      United States Dollars)               

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

|e) | Basic and Diluted Loss Per Share
|-- | --------------------------------

Basic loss per share is computed by dividing the loss for the
year by the weighted average number of common shares outstanding during the
year. Diluted earnings per share reflect the potential dilution that could occur
if potentially dilutive securities were exercised or converted to common stock.
The dilutive effect of options and warrants and their 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.

|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.

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) | 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 any embedded conversion features, if there are any, in accordance with
ASC 470-20, Debt With Conversion and Other Options.

|h) | 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.

8

---

|SILVERADO GOLD MINES LTD. AND ITS SUBSIDIARIES        
|------------------------------------------------------
|(An Exploration Stage Company)                        
|NOTES TO THE INTERIM CONSOLIDATED FINANCIAL STATEMENTS
|as of February 28, 2010 (Unaudited)                   
|(Stated in
      United States Dollars)               

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

|i) | 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 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. FASB ASC 740-10 is effective for
fiscal years beginning after December 15, 2006. The Company adopted FASB ASC
740-10 as of December 1, 2007, as required, and determined that the adoption of
FASB ASC 740-10 did not have a material impact on the Companys financial
position and results of operations.

|j) | 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.

|k) | Asset Retirement Obligation
|-- | ---------------------------

Effective December 1, 2002, 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.

9

---

|SILVERADO GOLD MINES LTD. AND ITS SUBSIDIARIES        
|------------------------------------------------------
|(An Exploration Stage Company)                        
|NOTES TO THE INTERIM CONSOLIDATED FINANCIAL STATEMENTS
|as of February 28, 2010 (Unaudited)                   
|(Stated in
      United States Dollars)               

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

|l) | 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.

|m) | 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.

|n) | 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   

|o) | Concentration of Credit Risk and Foreign
      Exchange Rate Risk
|-- | -----------------------------------------------------------------

Financial instruments which potentially subject the Company to
concentrations of credit risk and foreign exchange rate risk consist principally
of cash in banks. The Company deposits its cash in high credit quality financial
institutions which the Company believes reduces these risks.

|p) | 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.

|q) | 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.

10

---

|SILVERADO GOLD MINES LTD. AND ITS SUBSIDIARIES        
|------------------------------------------------------
|(An Exploration Stage Company)                        
|NOTES TO THE INTERIM CONSOLIDATED FINANCIAL STATEMENTS
|as of February 28, 2010 (Unaudited)                   
|(Stated in
      United States Dollars)               

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

|r) | 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 (SFAS 123), 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.

|s) | Research Expenditures
|-- | ---------------------

Research expenditures are expensed in the year incurred.

|t) | Reclassifications
|-- | -----------------

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

11

---

|SILVERADO GOLD MINES LTD. AND ITS SUBSIDIARIES        
|------------------------------------------------------
|(An Exploration Stage Company)                        
|NOTES TO THE INTERIM CONSOLIDATED FINANCIAL STATEMENTS
|as of February 28, 2010 (Unaudited)                   
|(Stated in
      United States Dollars)               

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

|u) | Recent Accounting Pronouncements
|-- | --------------------------------

FASB ASU 2009-13 Multiple-Deliverable Revenue
Arrangements (ASU 2009-13). ASU 2009-13 allows the allocation of
consideration in multiple deliverable arrangements to be more reflective of the
transactions economics and may result in earlier revenue recognition. The new
guidance is effective for fiscal years beginning after June 15, 2010 and may be
applied retrospectively or prospectively for new or materially modified
arrangements. In addition, 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.

Note 3  Gold Inventory

The Companys test production in past years has yielded gold
dust and gold nuggets. Gold dust has yielded sales prices equivalent to the spot
gold price. Gold nuggets, however, are considered to be gem or jewelry items,
which in the industry sell at a higher price than the spot price. They are
valued according to weight, purity, character, and relative flatness (wearing
quality). Historically, the Companys gold nuggets have sold at prices above the
spot gold price.

There were no changes in gold inventory during the three months
ended February 28, 2010. For the three months ended February 28, 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 February 28, 2009, the value of which is $5,556 recorded
as cost of gold sold. The following is a summary of gold inventory changes
during the three months ended February 28, 2010 and during the fiscal year ended
November 30, 2009:

|                                |  |                   |   |   | Weighted      |  |   |         |  
|------------------------------- |  | ----------------- | - | - | ------------- |  | - | ------- | -
|                                |  | Troy
      Ounces |   |   | Average price |  |   | Value   |  
|Balance as of November 30, 2008 |  | 76                |   | $ | 657.50        |  | $ | 50,106  |  
|Cost of gold sold               |  | (66               | ) |   | 657.50        |  |   | (43,790 | )
|Balance as of November 30, 2009 |  | 10                |   |   | 657.50        |  |   | 6,316   |  
|Cost of gold sold               |  | -                 |   |   | -             |  |   | -       |  
|Balance as of February 28, 2010 |  | 10                |   | $ | 657.50        |  | $ | 6,316   |  

12

---

|SILVERADO GOLD MINES LTD. AND ITS SUBSIDIARIES        
|------------------------------------------------------
|(An Exploration Stage Company)                        
|NOTES TO THE INTERIM CONSOLIDATED FINANCIAL STATEMENTS
|as of February 28, 2010 (Unaudited)                   
|(Stated in
      United States Dollars)               

Note 4  Prepaid and Other Receivables

Prepaid and other receivables consist of:

|                                                                      |   | February 28, 2010 |  |   | November 30, 2009 | 
|--------------------------------------------------------------------- | - | ----------------- |  | - | ----------------- | 
|Prepaid consulting and other fees resulting
      from share issuance | $ | 255,581           |  | $ | 608,640           | 
|Shares issued for attorney retainer                                   |   | -                 |  |   | 108,225           | 
|Total prepaid expenses sesulting from share
      issuance            |   | 255,581           |  |   | 716,865           | 
|Insurance deposits, GST refund and others                             |   | 20,549            |  |   | 21,608            | 
|Total                                                                 | $ | 276,130           |  | $ | 738,473           | 

During the three months ended February 28, 2010, the Company
issued an aggregate of 36,701,971 shares of 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, for total consideration of $264,934, of which $20,998 was recorded
as prepaid expenses based on the terms of the agreements (See Note 11 (b)
Common Stock Issued under Equity Compensation Plans, below).

During the fiscal year ended November 30, 2009, the Company
issued an aggregate of 218,319,102 shares of 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, for total consideration of
$3,158,697, of which $716,865 was recorded as prepaid expenses. The Company expensed $482,282 of
these prepaid expenses  during the three months ended February 28,
2010.

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
February 28, 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 February 28, 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 three months
ended February 28, 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 paid during
      the year |   | 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:          |   |         |  |   |            |  |   |         |  |   |             |  |   |           | 
|Accrued royalty payment               |   | -       |  |   | -          |  |   | 80,000  |  |   | -           |  |   | 80,000    | 
|Balance as of February 28, 2010       | $ | 743,859 |  | $ | 40,702     |  | $ | 605,900 |  | $ | 88,140      |  | $ | 1,478,601 | 

13

---

|SILVERADO GOLD MINES LTD. AND ITS SUBSIDIARIES        
|------------------------------------------------------
|(An Exploration Stage Company)                        
|NOTES TO THE INTERIM CONSOLIDATED FINANCIAL STATEMENTS
|as of February 28, 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. The specific claim groups at this site
are as follows:

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

During the fiscal quarter ended August 31, 2009, the Company
paid claim maintenance and holding fees of $85,540 to the Bureau of Land
Management (BLM). The Company currently is in a transitional phase between
exploration and development on this property. The preliminary feasibility study,
effective January 1, 2009 and amended on June 1, 2009 to reflect additional
data, supported a probable mineral reserve of antimony and gold underlying the
southwestern portion of the Solomon Shear Zone, an area referred to by the
Company as Workmans Bench.

|b) | Ester Dome Gold Project, Fairbanks Mining
      District, Alaska
|-- | ----------------------------------------------------------------

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

| | i)   | Grant Mine: This property consists of 26 state mineral
      claims subject to payments of 15% of net profits until $2,000,000 has been
      paid and 3% of net profits thereafter. The mill has remained inactive
      since February 1989 and the plant and equipment cost was written down to
      zero on our accounting records. During fiscal 2009, the work on Grant Mine
      was limited to assessment work.
| | ---- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |      |                                                                                                                                                                                                                                                                                                                                                                                                                          
| | ii)  | May (St. Paul)/Barelka: This gold property consists of 22
      state mineral claims subject to payments of 15% of net profits until
      $2,000,000 has been paid and 3% of net profits thereafter.                                                                                                                                                                                                                    
| |      |                                                                                                                                                                                                                                                                                                                                                                                                                          
| | iii) | Dobbs: This property consists of 1 unpatented Federal
      mineral claim and 4 State mineral claims subject to payments of 15% of net
      profits until $1,500,000 has been paid and 3% of net profits
      thereafter.                                                                                                                                                                                             

14

---

|SILVERADO GOLD MINES LTD. AND ITS SUBSIDIARIES        
|------------------------------------------------------
|(An Exploration Stage Company)                        
|NOTES TO THE INTERIM CONSOLIDATED FINANCIAL STATEMENTS
|as of February 28, 2010 (Unaudited)                   
|(Stated in
      United States Dollars)               

Note 5  Mineral Properties and Mineral Rights
(Continued)

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

The Company has maintained claim rental payments and continued
with assessment work for this property. During the fiscal year ended November
30, 2009, the Company paid state mining claim fees of $8,840 to the State of
Alaska Department of Natural Resources and federal mining claim fees of $140 to
BLM.

|c) | Hammond Property, Wiseman Mining District,
      Alaska
|-- | -------------------------------------------------------

This property consists of 24 Federal placer claims and 36
Federal lode claims covering one and one-half square miles and adjoining the
Nolan Gold Properties. The Company 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. Through February 28, 2010, the Company has paid a total of
$560,000 in minimum royalties to Alminco. As of February 28, 2010, the
capitalized mineral rights of $605,900 (November 30, 2009: $525,900) for the
Hammond property includes royalty accruals totalling $550,000 (November 30,
2009: $470,000) that are unpaid, in arrears, and included in mineral claims
payable on the accompanying consolidated balance sheets. During the fiscal
quarter ended February 28, 2010, the Company accrued $80,000 in payable
royalties. During the fiscal year ended November 30, 2009, the Company paid
$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 $43,000 remains to be paid. A payment in
the amount of $5,000 is due on August 1stof each year until the
remaining $43,000 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 fiscal year ended November 30,
2009, the Company paid the required $5,000 option payment for the year and paid
$13,090 in state mining claim fees.

Note 6  Property, Plant and Equipment

Property, plant and equipment primarily include capital
expenditure associated with the Companys Vancouver office, and mining equipment
and camp facilities at the Nolan Gold Project in Alaska.

In accordance with FASB ASC 360-10, Impairment or Disposal
of Long-Lived Assets, the Company recorded an impairment, as of November
30, 2009, of $12,254 against Nolan mining equipment. Depreciation expenses for
the three months ended February 28, 2010 was $48,746 (2009: $64,239).

A summary of the Companys property, plant and equipment for
the three months ended February 28, 2010 is as follows:

15

---

|SILVERADO GOLD MINES LTD. AND ITS SUBSIDIARIES        
|------------------------------------------------------
|(An Exploration Stage Company)                        
|NOTES TO THE INTERIM CONSOLIDATED FINANCIAL STATEMENTS
|as of February 28, 2010 (Unaudited)                   
|(Stated in
      United States Dollars)               

Note 6  Property, Plant and Equipment (Continued)

|                                |   | February 28, 2010 | 
|------------------------------- | - | ----------------- | 
|                                |   |                   | 
|                                |   |                   | 
|                                |   | 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         | 

A summary of the Companys property, plant and equipment for
the fiscal year ended 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.

16

---

|SILVERADO GOLD MINES LTD. AND ITS SUBSIDIARIES        
|------------------------------------------------------
|(An Exploration Stage Company)                        
|NOTES TO THE INTERIM CONSOLIDATED FINANCIAL STATEMENTS
|as of February 28, 2010 (Unaudited)                   
|(Stated in
      United States Dollars)               

Note 8  Convertible Debt Instruments

|a) | Convertible Note Issued in Fiscal Year
      2010
|-- | -------------------------------------------------

On January 22, 2010, the Company entered into a Note Purchase
Agreement (the Agreement) with St. George Investments, LLC (St. George).
Pursuant to the terms of the Agreement, the Company issued and sold a
convertible promissory note, dated January 22, 2010 (the Note) to St. George
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 St. George from the
proceeds of the sale of the Note and $4,000 of issuance costs was added to the
principal balance of the note pursuant to the agreement.

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 Note provides St. George with the option, at any time prior to
payment in full by the Company, to convert the outstanding amount into shares of
the Companys common stock. The number of common shares to be issued upon
conversion shall be determined by dividing the outstanding amount by 70% of the
average of the three lowest closing bid prices for the Companys common stock
for the twenty trading days immediately preceding the date of the conversion
notice.

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 of $84,000 at the issuance date would be
valued at $83,056 using the effective interest rate of 8.25% . Accordingly, 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 conversion
feature of the convertible note and accordingly has been included in additional
paid-in capital on the consolidated balance sheets. During the three months
ended February 28, 2010, the Company amortized the resulting discount of $12,136
as an increase to interest expense, and will amortize the remaining discount of
$4,920 over the expected life of the debt.

|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 present value of a non-convertible note at the issuance
date would be valued at $69,284 using the effective interest rate of 8.25% .
Accordingly, the Company recorded $69,284 of the liability components of the
convertible note as of the date of issuance and the excess proceeds of $5,716
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. The
Company amortized the resulting discount of $476 as an increase to interest
expenses during the fiscal year ended November 30, 2009 and $1,427 as an
increase to interest expenses during the three months ended February 28, 2010,
and will amortize the remaining discount of $3,813 over the expected life of the
debt.

17

---

|SILVERADO GOLD MINES LTD. AND ITS SUBSIDIARIES        
|------------------------------------------------------
|(An Exploration Stage Company)                        
|NOTES TO THE INTERIM CONSOLIDATED FINANCIAL STATEMENTS
|as of February 28, 2010 (Unaudited)                   
|(Stated in
      United States Dollars)               

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 three months ended February 28, 2010 and the
fiscal year ended November 30, 2009 is as follows:

|                           |   | 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          |   | 4,611   |   |   | 2,144   |   |   | 6,755   |  
|Balance, February 28, 2010 | $ | 373,495 |   | $ | 173,667 |   | $ | 547,162 |  

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 has retained a geotechnical and environmental
consulting firm to assist with a preliminary report for the closure of the
tailings pond. The preliminary report is part of the closure plan, and further
reclamation work involves another closure phase that needs permits and/or
approval by the State of Alaska regulatory agencies.

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 three months ended
February 28, 2010, the Company recorded $4,611 accretion expense. 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 Grant Mine 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.

The Company was bonded for 48.5 acres before the start of 2008
and 27.5 acres were reclaimed at Nolan Creek in 2008. During the fiscal year
ended November 30, 2009, the Company received refunds of $5,456 from the
reclamation bond deposited for these reclaimed 27.5 acres. As of February 28,
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.

18

---

|SILVERADO GOLD MINES LTD. AND ITS SUBSIDIARIES        
|------------------------------------------------------
|(An Exploration Stage Company)                        
|NOTES TO THE INTERIM CONSOLIDATED FINANCIAL STATEMENTS
|as of February 28, 2010 (Unaudited)                   
|(Stated in
      United States Dollars)               

Note 9  Asset Retirement Obligations

Nolan Gold Project (Continued)

The Company believes that the remaining accrued obligations
plus 5% accretion expense per annum until the remaining 21 acres are reclaimed
is sufficient to cover the cost of reclamation. During the three months ended
February 28, 2009, the Company recorded $2,144 accretion expense. During the
fiscal year ended November 30, 2009, the Company recorded $8,630 accretion
expense and spent $4,258 on reclamation at Nolan properties.

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.

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 three months ended February 28, 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 February 28,
2010, there were nominal exploration activities due to the Companys cash flow
constraints and consequently the Tri-Con Group waived US $10,000 and CDN $10,000
monthly fee for a total of US $58,511. As of February 28, 2010, Silverado owed
$1,020,952 (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 three months ended February 28, 2010
and 2009:

19

---

|SILVERADO GOLD MINES LTD. AND ITS SUBSIDIARIES        
|------------------------------------------------------
|(An Exploration Stage Company)                        
|NOTES TO THE INTERIM CONSOLIDATED FINANCIAL STATEMENTS
|as of February 28, 2010 (Unaudited)                   
|(Stated in
      United States Dollars)               

Note 10  Related Party Transactions (Continued)

|(a) | Service Agreements (Continued)
|--- | ------------------------------

|                                                                        |   | Three Months Ended | 
|----------------------------------------------------------------------- | - | ------------------ | 
|                                                                        |   | February 28, 2010  | 
|Exploration Services                                                    | $ | -                  | 
|Administration and management services                                  |   | 56,832             | 
|                                                                        | $ | 56,832             | 
|                                                                        |   |                    | 
|Amount of total charges in excess of the
      Cost                     | $ | 7,413              | 
|                                                                        |   |                    | 
|Percentage of excess of the Cost charged
      over total amount billed |   | 13.04%             | 

During the three months ended February 28, 2010, Tri-Con Group
billed the Company CDN $ 9,375 (2009: CDN $18,750) plus 15% office overhead as
the Cost plus markups for services performed on behalf of Silverado by a Tri-Con
Group employee who is related to a director and chief executive officer of the
Company.

|(b) | Consulting Agreement
|--- | --------------------

Effective April 1, 2009, a consulting agreement was signed
between the Company and a private company controlled by Robert Dynes, a director
of the Company. Pursuant to the agreement, the Company agreed to pay the private
company CDN $7,500 plus GST per month for corporate planning, business
development and investor relations services, as requested by the Company. During
the three months ended February 28, 2010, the Company was billed CDN $22,500
plus GST by the private company controlled by Mr. Dynes pursuant to the terms of
the consulting agreement. During fiscal year 2009, the Company paid $64,644 (CDN
$74,793, including GST) to the private company. The Company also issued a total
of 6,555,000 shares of its common stock to Mr. Dynes for payment of an
additional $57,029 owed to the private company under the consulting
agreement.

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 three months ended
February 28, 2010:

20

---

|SILVERADO GOLD MINES LTD. AND ITS SUBSIDIARIES        
|------------------------------------------------------
|(An Exploration Stage Company)                        
|NOTES TO THE INTERIM CONSOLIDATED FINANCIAL STATEMENTS
|as of February 28, 2010 (Unaudited)                   
|(Stated in
      United States Dollars)               

Note 11  Common Stock (Continued)

|                                                                                    |  | Number of     |   |   | Common      |   |   | Common      |  
|----------------------------------------------------------------------------------- |  | ------------- | - | - | ----------- | - | - | ----------- | -
|                                                                                    |  | Common        |   |   | Stock -     |   |   | Stock to be |  
|                                                                                    |  | Stock         |   |   | Amount      |   |   | Issued      |  
|                                                                                    |  |               |   |   |             |   |   |             |  
|Balance, November 30, 2009                                                          |  | 1,577,667,073 |   | $ | 100,883,269 |   | $ | 100,000     |  
|Shares Issued:                                                                      |  |               |   |   |             |   |   |             |  
|For Private Placements                                                              |  |               |   |   |             |   |   |             |  
|December 31, 2009 @ $0.01 per unit (1 unit = 1 share
      and 1 warrant) cancelled |  | (1,000,000    | ) |   | (10,000     | ) |   | -           |  
|January 04, 2010 @ $0.01 per unit (1
      unit = 1 share and 1 warrant)            |  | 1,500,000     |   |   | 15,000      |   |   | (15,000     | )
|January 04, 2010 @ $0.0035 per unit (1 unit = 1 share
      and 1 warrant)          |  | 25,785,715    |   |   | 90,250      |   |   | (35,000     | )
|January 26, 2010 @ $0.01 per unit (1
      unit = 1 share and 1/2 warrant)          |  | 5,000,000     |   |   | 50,000      |   |   | (50,000     | )
|January 26, 2010 @ $0.0035 per unit (1 unit = 1 share
      and 1 warrant)          |  | 5,714,286     |   |   | 20,000      |   |   | -           |  
|                                                                                    |  | 37,000,001    |   |   | 165,250     |   |   | (100,000    | )
|For Consulting Fees                                                                 |  |               |   |   |             |   |   |             |  
|December 15, 2009 @ $0.007 per share                                                |  | 3,000,000     |   |   | 21,000      |   |   | -           |  
|January 11, 2010 @ $0.00777838 per share                                            |  | 1,238,750     |   |   | 9,635       |   |   | -           |  
|January 11, 2010 @ $0.008 per share                                                 |  | 2,196,875     |   |   | 17,575      |   |   | -           |  
|January 15, 2010 @ $0.007 per share                                                 |  | 8,000,000     |   |   | 56,000      |   |   | -           |  
|January 26, 2010 @ $0.0073 per share                                                |  | 5,000,000     |   |   | 36,500      |   |   | -           |  
|January 29, 2010 @ $0.0073 per share                                                |  | 4,123,987     |   |   | 30,105      |   |   | -           |  
|February 12, 2010 @ $0.0058 per share                                               |  | 1,759,724     |   |   | 10,206      |   |   | -           |  
|                                                                                    |  | 25,319,336    |   |   | 181,022     |   |   | -           |  
|For Investor Relation and Shareholder
      Communication Services                  |  |               |   |   |             |   |   |             |  
|December 17, 2009 @ $0.00888 per share                                              |  | 1,718,325     |   |   | 15,259      |   |   | -           |  
|February 12, 2010 @ $0.0058 per share                                               |  | 2,664,310     |   |   | 15,453      |   |   | -           |  
|                                                                                    |  | 4,382,635     |   |   | 30,712      |   |   | -           |  
|For Legal and Other Service Fees                                                    |  |               |   |   |             |   |   |             |  
|January 26, 2010 @ $0.0076 per share                                                |  | 7,000,000     |   |   | 53,200      |   |   | -           |  
|Share Subscriptions Received for Private
      Placements                           |  | -             |   |   | -           |   |   | 79,763      |  
|Share Subscriptions Received for Warrants Exercise                                  |  | -             |   |   | -           |   |   | 92,561      |  
|                                                                                    |  |               |   |   |             |   |   |             |  
|Balance, February 28, 2010                                                          |  | 1,651,369,045 |   | $ | 101,313,453 |   | $ | 172,324     |  

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

21

---

|SILVERADO GOLD MINES LTD. AND ITS SUBSIDIARIES        
|------------------------------------------------------
|(An Exploration Stage Company)                        
|NOTES TO THE INTERIM CONSOLIDATED FINANCIAL STATEMENTS
|as of February 28, 2010 (Unaudited)                   
|(Stated in
      United States Dollars)               

Note 11  Common Stock (Continued)

|                                                                             |  | Number of   |  |   | Common     |  |   | Common      | 
|---------------------------------------------------------------------------- |  | ----------- |  | - | ---------- |  | - | ----------- | 
|                                                                             |  | Common      |  |   | Stock -    |  |   | Stock to be | 
|                                                                             |  | Stock       |  |   | Amount     |  |   | Issued      | 
|Balance, November 30, 2008                                                   |  | 977,437,101 |  | $ | 94,718,072 |  | $ | -           | 
|Shares Issued:                                                               |  |             |  |   |            |  |   |             | 
|For Private Placements                                                       |  |             |  |   |            |  |   |             | 
|December 31, 2008 @ $0.00383 per share                                       |  | 18,260,870  |  |   | 70,000     |  |   | -           | 
|February 25, 2009 @ $0.004 per share                                         |  | 19,250,000  |  |   | 77,000     |  |   | -           | 
|March 27, 2009 @ $0.0025 per share                                           |  | 38,000,000  |  |   | 95,000     |  |   | -           | 
|May 06, 2009 @ $0.01 per share                                               |  | 25,000,000  |  |   | 250,000    |  |   | -           | 
|May 14, 2009 @ $0.01 per unit (1 unit = 1 share and 1
      warrant)         |  | 3,000,000   |  |   | 30,000     |  |   | -           | 
|May 15, 2009 @ $0.01 per unit (1 unit = 1
      share and 1 warrant)         |  | 1,000,000   |  |   | 10,000     |  |   | -           | 
|June 02, 2009 @ $0.01 per unit (1 unit = 1 share and 1
      warrant)        |  | 500,000     |  |   | 5,000      |  |   | -           | 
|June 03, 2009 @ $0.01 per unit (1 unit = 1
      share and 1 warrant)        |  | 2,000,000   |  |   | 20,000     |  |   | -           | 
|June 12, 2009 @ $0.01 per unit (1 unit = 1 share and 1
      warrant)        |  | 4,900,000   |  |   | 49,000     |  |   | -           | 
|June 12, 2009 @ $0.01 per unit (1 unit = 1
      share and 1/2 warrant)      |  | 10,000,000  |  |   | 100,000    |  |   | -           | 
|June 16, 2009 @ $0.01 per share                                              |  | 9,500,000   |  |   | 95,000     |  |   | -           | 
|June 22, 2009 @ $0.01 per unit (1 unit = 1
      share and 1 warrant)        |  | 1,500,000   |  |   | 15,000     |  |   | -           | 
|July 03, 2009 @ $0.01 per unit (1 unit = 1 share and 1
      warrant)        |  | 1,000,000   |  |   | 10,000     |  |   | -           | 
|July 03, 2009 @ $0.01 per share (1 unit = 1
      share and 1/2 warrant)     |  | 9,000,000   |  |   | 90,000     |  |   | -           | 
|July 22, 2009 @ $0.01 per share                                              |  | 13,500,000  |  |   | 135,000    |  |   | -           | 
|July 27, 2009 @ $0.01 per unit (1 unit = 1
      share and 1 warrant)        |  | 4,000,000   |  |   | 40,000     |  |   | -           | 
|August 12, 2009 @ $0.01 per unit (1 unit = 1 share and 1
      warrant)      |  | 2,000,000   |  |   | 20,000     |  |   | -           | 
|August 17, 2009 @ $0.01 per unit (1 unit =
      1 share and 1 warrant)      |  | 2,500,000   |  |   | 25,000     |  |   | -           | 
|August 27, 2009 @ $0.01 per unit (1 unit = 1 share and 1/2
      warrant)    |  | 23,500,000  |  |   | 235,000    |  |   | -           | 
|August 27, 2009 @ $0.01 per unit (1 unit =
      1 share and 1 warrant)      |  | 1,000,000   |  |   | 10,000     |  |   | -           | 
|August 28, 2009 @ $0.01 per share                                            |  | 5,000,000   |  |   | 50,000     |  |   | -           | 
|August 28, 2009 @ $0.01 per unit (1 unit =
      1 share and 1/2 warrant)    |  | 2,000,000   |  |   | 20,000     |  |   | -           | 
|September 18, 2009 @ $0.01 per unit (1 unit = 1 share and 1
      warrant)   |  | 2,000,000   |  |   | 20,000     |  |   | -           | 
|September 29, 2009 @ $0.01 per unit (1 unit
      = 1 share and 1 warrant)   |  | 20,000,000  |  |   | 200,000    |  |   | -           | 
|September 29, 2009 @ $0.01 per unit (1 unit = 1 share and
      1/2 warrant) |  | 12,500,000  |  |   | 125,000    |  |   | -           | 
|October 06, 2009 @ $0.01 per unit (1 unit =
      1 share and 1 warrant)     |  | 4,500,000   |  |   | 45,000     |  |   | -           | 
|November 03, 2009 @ $0.01 per unit (1 unit = 1 share and 1
      warrant)    |  | 5,000,000   |  |   | 50,000     |  |   | -           | 
|November 09, 2009 @ $0.005 per share                                         |  | 40,000,000  |  |   | 200,000    |  |   | -           | 
|November 18, 2009 @ $0.01 per unit (1 unit = 1 share and 1
      warrant)    |  | 1,500,000   |  |   | 15,000     |  |   | -           | 
|                                                                             |  | 281,910,870 |  |   | 2,106,000  |  |   | -           | 
|For Consulting Fees and Other Expenses                                       |  |             |  |   |            |  |   |             | 
|January 28, 2009 @ $0.0125 per share                                         |  | 1,000,000   |  |   | 12,500     |  |   | -           | 
|January 29, 2009 @ $0.0125 per share                                         |  | 25,000,000  |  |   | 312,500    |  |   | -           | 
|January 29, 2009 @ $0.03 per share                                           |  | 25,000,000  |  |   | 750,000    |  |   | -           | 
|February 12, 2009 @ $0.0085 per share                                        |  | 6,000,000   |  |   | 51,000     |  |   | -           | 
|February 12, 2009 @ $0.01 per share                                          |  | 2,000,000   |  |   | 20,000     |  |   | -           | 
|February 13, 2009 @ $0.0087 per share                                        |  | 15,000,000  |  |   | 130,500    |  |   | -           | 
|February 13, 2009 @ $0.00333 per share                                       |  | 3,109,800   |  |   | 10,356     |  |   | -           | 
|March 27, 2009 @ $0.0125 per share                                           |  | 20,000,000  |  |   | 250,000    |  |   | -           | 
|March 27, 2009 @ $0.0125 per share                                           |  | 9,000,000   |  |   | 112,500    |  |   | -           | 
|April 13, 2009 @ $0.013 per share                                            |  | 15,000,000  |  |   | 195,000    |  |   | -           | 
|June 03, 2009 @ $0.012 per share                                             |  | 30,000,000  |  |   | 360,000    |  |   | -           | 
|August 18, 2009 @ $0.018 per share                                           |  | 5,000,000   |  |   | 90,000     |  |   | -           | 
|August 21, 2009 @ $0.014 per share                                           |  | 20,000,000  |  |   | 280,000    |  |   | -           | 
|October 29, 2009 @ $0.0154 per share                                         |  | 3,500,000   |  |   | 53,900     |  |   | -           | 

22

---

|SILVERADO GOLD MINES LTD. AND ITS SUBSIDIARIES        
|------------------------------------------------------
|(An Exploration Stage Company)                        
|NOTES TO THE INTERIM CONSOLIDATED FINANCIAL STATEMENTS
|as of February 28, 2010 (Unaudited)                   
|(Stated in
      United States Dollars)               

Note 11  Common Stock (Continued)

|                                                                   |  | Number of     |  |   | Common      |   |   | Common      | 
|------------------------------------------------------------------ |  | ------------- |  | - | ----------- | - | - | ----------- | 
|                                                                   |  | Common        |  |   | Stock -     |   |   | Stock to be | 
|                                                                   |  | Stock         |  |   | Amount      |   |   | Issued      | 
|November 03, 2009 @ $0.018 per share                               |  | 5,000,000     |  |   | 90,000      |   |   | -           | 
|November 18, 2009 @ $0.0148 per share                              |  | 5,000,000     |  |   | 74,000      |   |   | -           | 
|November 23, 2009 @ $0.0118 per share                              |  | 4,000,000     |  |   | 47,200      |   |   | -           | 
|                                                                   |  | 193,609,800   |  |   | 2,839,456   |   |   | -           | 
|For Investor Relation and Shareholder
      Communication Services |  |               |  |   |             |   |   |             | 
|February 13, 2009 @ $0.0051 per share                              |  | 6,555,000     |  |   | 33,431      |   |   | -           | 
|March 27, 2009 @ $0.00644 per share                                |  | 2,112,069     |  |   | 13,602      |   |   | -           | 
|May 15, 2009 @ $0.0122 per share                                   |  | 357,965       |  |   | 4,367       |   |   | -           | 
|June 03, 2009 @ $0.01063 per share                                 |  | 505,927       |  |   | 5,378       |   |   | -           | 
|July 03, 2009 @ $0.01504 per share                                 |  | 376,430       |  |   | 5,662       |   |   | -           | 
|July 31, 2009 @ $0.01478 per share                                 |  | 353,379       |  |   | 5,223       |   |   | -           | 
|August 27, 2009 @ $0.016965 per share                              |  | 342,343       |  |   | 5,808       |   |   | -           | 
|October 06, 2009 @ $0.0175 per share                               |  | 333,618       |  |   | 5,838       |   |   | -           | 
|October 20, 2009 @ $0.01733 per share                              |  | 345,493       |  |   | 5,987       |   |   | -           | 
|November 24, 2009 @ $0.01392 per share                             |  | 427,078       |  |   | 5,945       |   |   | -           | 
|                                                                   |  | 11,709,302    |  |   | 91,241      |   |   | -           | 
|For Commitment, Legal and Financing Fees                           |  |               |  |   |             |   |   |             | 
|May 06, 2009 @ $0.0096 per share                                   |  | 100,000,000   |  |   | 960,000     |   |   | -           | 
|October 20, 2009 @ $0.0185 per share                               |  | 8,000,000     |  |   | 148,000     |   |   | -           | 
|November 04, 2009 @ $0.016 per share                               |  | 5,000,000     |  |   | 80,000      |   |   | -           | 
|                                                                   |  | 113,000,000   |  |   | 1,188,000   |   |   | -           | 
|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 three months ended February 28, 2010

During the three months ended February 28, 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 three months ended February 28, 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.

23

---

|SILVERADO GOLD MINES LTD. AND ITS SUBSIDIARIES        
|------------------------------------------------------
|(An Exploration Stage Company)                        
|NOTES TO THE INTERIM CONSOLIDATED FINANCIAL STATEMENTS
|as of February 28, 2010 (Unaudited)                   
|(Stated in
      United States Dollars)               

Note 11  Common Stock (Continued)

|a) | Private Placements (Continued)
|-- | ------------------------------

During the three months ended February 28, 2010, the Company
also completed private placements resulting in the issuance of an aggregate of
31,500,001 units at $0.0035 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
$110,250 from such private placements.

In addition, the Company received $79,763 for the sale of an
aggregate of 22,789,286 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 February 28, 2010,
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.

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.

24

---

|SILVERADO GOLD MINES LTD. AND ITS SUBSIDIARIES        
|------------------------------------------------------
|(An Exploration Stage Company)                        
|NOTES TO THE INTERIM CONSOLIDATED FINANCIAL STATEMENTS
|as of February 28, 2010 (Unaudited)                   
|(Stated in
      United States Dollars)               

Note 11  Common Stock (Continued)

|a) | Private Placements (Continued)
|-- | ------------------------------

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 three months ended February 28,
2010.

|b) | Common Stock Issued under Equity
      Compensation Plans
|-- | ---------------------------------------------------------

A summary of common stock issued under equity compensation
plans (See Note 12(a)  Equity Compensation Plans, below) for the three months
ended February 28, 2010 and the fiscal year ended November 30, 2009 is as
follows:

|                                                    |  | February 28, 2010 |  |   | November 30, 2009 | 
|--------------------------------------------------- |  | ----------------- |  | - | ----------------- | 
|                                                    |  | Number of         |  |   | Value of          | 
|                                                    |  | Shares            |  |   | Shares            | 
|Shares issued for consulting fees:                  |  |                   |  |   |                   | 
|Recorded as consulting fees                         |  | 24,013,940        |  | $ | 171,689           | 
|Recorded as prepaid expenses                        |  | 1,305,396         |  |   | 9,333             | 
|Subtotal:                                           |  | 25,319,336        |  |   | 181,022           | 
|Shares issued for legal fees:                       |  |                   |  |   |                   | 
|Recorded as legal fees                              |  | 7,000,000         |  |   | 53,200            | 
|Recorded as prepaid expenses                        |  | -                 |  |   | -                 | 
|Subtotal:                                           |  | 7,000,000         |  |   | 53,200            | 
|Shares issued for investor relations and            |  |                   |  |   |                   | 
|shareholders communication services                 |  |                   |  |   |                   | 
|Recorded as investor relations fees                 |  | 2,718,027         |  |   | 19,047            | 
|Recorded as prepaid expenses                        |  | 1,664,608         |  |   | 11,665            | 
|Subtotal:                                           |  | 4,382,635         |  |   | 30,712            | 
|Total shares issued under equity compensation plans |  | 36,701,971        |  | $ | 264,934           | 

For the three months ended February 28, 2010

Pursuant to several agreements for corporate planning, business
development and strategies, legal services and media solutions services, the
Company issued an aggregate of 36,701,971 shares of the Companys unrestricted
free trading common stock during the three months ended February 28, 2010,
valued at the fair market price at the dates of agreements or at the dates of
shares issued, for total consideration of $264,934. Of this amount $20,998 was
recorded as prepaid expenses and $243,936 as consulting and other service fees.
These shares were issued under the Companys Equity Compensation Plans (See Note
12(a)  Equity Compensation Plans, below).

25

---

|SILVERADO GOLD MINES LTD. AND ITS SUBSIDIARIES        
|------------------------------------------------------
|(An Exploration Stage Company)                        
|NOTES TO THE INTERIM CONSOLIDATED FINANCIAL STATEMENTS
|as of February 28, 2010 (Unaudited)                   
|(Stated in
      United States Dollars)               

Note 11  Common Stock (Continued)

|b) | Common Stock Issued under Equity
      Compensation Plans (Continued)
|-- | ---------------------------------------------------------------------

For the fiscal year ended November 30, 2009

During the fiscal year ended November 30, 2009, the Company
entered into several agreements for corporate planning, business development and
strategies, legal services and media solutions services. Pursuant to these
agreements, the Company issued an aggregate of 188,609,800 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, for total consideration of $2,839,456. Of this amount $2,230,816
was recorded as consulting fees and $608,640 was recorded as prepaid expenses.
These shares were issued under the Companys Equity Compensation Plans. $374,057
of such prepaid consulting fees was expensed during the three months ended
February 28, 2010.

In addition, during the fiscal year ended November 30, 2009,
the Company entered into consulting agreements for investor relations and
shareholder communication services. Pursuant to these agreements, the Company
issued an aggregate of 11,709,302 shares of the Companys unrestricted free
trading common stock for total consideration of $91,241 which was recorded as
reporting and investor relations expenses. The Company also issued 8,000,000
shares of the Companys unrestricted free trading common stock to an attorney as
retainer. Such shares were valued at the fair market price at the date of the
engagement agreement, for total consideration of $148,000, of which $108,225 was
recorded as prepaid expenses and $39,775 was recorded as legal fees. Such
prepaid legal fees were expensed during the three months ended February 28,
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
|-- | -----------------------------------------------

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(a) Convertible Note Issued in Fiscal Year 2009,
above).

26

---

|SILVERADO GOLD MINES LTD. AND ITS SUBSIDIARIES        
|------------------------------------------------------
|(An Exploration Stage Company)                        
|NOTES TO THE INTERIM CONSOLIDATED FINANCIAL STATEMENTS
|as of February 28, 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

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

During the three months ended February 28, 2010, the Company
issued an aggregate of 36,701,971 shares of the Companys common stock under the
2009-III Companys Equity Compensation Plans in payment of consulting and other
services. Such shares were valued at the fair market price on the effective
dates of the consulting agreements or based on share price terms in the
agreements.

During the fiscal year ended November 30, 2009, the Company
issued an aggregate of 213,319,102 shares of the Companys common stock under
the Companys Equity Compensation Plans in payment of consulting and other
services. Such shares were valued at the fair market price on the effective
dates of the consulting agreements or based on share price terms in the
agreements.

A summary of common stock issued under equity compensation
plans during the three months ended February 28, 2010 and the fiscal year ended
November 30, 2009 is disclosed in Note 11(b)  Common Stock Issued under Equity
Compensation Plans, above.

Stock Options

There were no stock options granted and valued during the three
months ended February 28, 2010 and the fiscal year ended November 30, 2009. A
summary of the change in outstanding and exercisable stock options for the three
months ended February 28, 2010 and the fiscal year ended November 30, 2009 is as
follows:

27

---

|SILVERADO GOLD MINES LTD. AND ITS SUBSIDIARIES        
|------------------------------------------------------
|(An Exploration Stage Company)                        
|NOTES TO THE INTERIM CONSOLIDATED FINANCIAL STATEMENTS
|as of February 28, 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)
|-- | -------------------------------------------------------------

Stock Options (Continued)

|                             |  |                 |   |   |                 |  |  | 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, February 28, 2010   |  | 48,200,000      |   | $ | 0.056           |  |  | 2.47
      years | 

The balance of outstanding and exercisable common stock options
as at February 28, 2010 is as follows:

|Number of Options |  |   |          |  |  | Remaining        | 
|----------------- |  | - | -------- |  |  | ---------------- | 
|Outstanding and   |  |   | Exercise |  |  | Contractual Life | 
|Exercisable       |  |   | Price    |  |  | (Years)          | 
|                  |  |   |          |  |  |                  | 
|2,600,000         |  | $ | 0.05     |  |  | 0.86             | 
|1,500,000         |  | $ | 0.05     |  |  | 1.33             | 
|7,500,000         |  | $ | 0.05     |  |  | 1.36             | 
|22,300,000        |  | $ | 0.05     |  |  | 2.85             | 
|14,300,000        |  | $ | 0.07     |  |  | 2.87             | 
|48,200,000        |  |   |          |  |  |                  | 

Fair Value Determination

There were no stock options granted during the three months
ended February 28, 2010 and the fiscal year ended November 30, 2009. The Company
uses the Black-Scholes option pricing model to calculate the fair value of stock
options when the options are granted under the following weighted average
assumptions:

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

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

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

28

---

|SILVERADO GOLD MINES LTD. AND ITS SUBSIDIARIES        
|------------------------------------------------------
|(An Exploration Stage Company)                        
|NOTES TO THE INTERIM CONSOLIDATED FINANCIAL STATEMENTS
|as of February 28, 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
|-- | ------------------------------

During the three months ended February 28, 2010, 1,000,000 of
the Companys outstanding common stock purchase warrants, exercisable at a per
share exercise price of $0.02, was cancelled. The Company granted 35,500,001
common stock purchase warrants upon the completion of private placements during
the three months ended February 28, 2010. 4,500,000 of such granted common stock
purchase warrants are exercisable at a per share exercise price of $0.02 and
31,000,001 of such granted common stock purchase warrants are exercisable at a
per share exercise price of $0.01, within the one year period commencing from
the date of the subscription agreement. Each common stock purchase warrant
granted during the period is exercisable for one share of common stock. There
was no value assigned to these warrants when they were granted.

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 by the Company upon the completion
of private placements as of November 30, 2009. Each common stock purchase
warrant granted during the period is exercisable for one share of common stock
at a per share exercise price of $0.02 within the one year period commencing
from the date of the subscription agreement. There was no value assigned to
these warrants when they were granted.

In February 2010, the Company reduced the exercise price of
24,500,000 of its common stock purchase warrants from $0.02 to $0.003 per common
share and 6,000,000 of its common stock purchase warrants from $0.01 to $0.003
per common share. Related proceeds of $92,561  was received in February 2010 and
recorded as subscriptions received in stockholders equity in the accompanying
balance sheet. All of such warrants were exercised in March 2010 and all of
proceeds received.

The common stock purchase warrants referenced above were issued
upon the completion of private placements. There was no value assigned to these
warrants when they were granted. The exercise price reduction incentivized the
holders to exercise the warrants, which assisted the Company in meeting its
working capital requirements. The Company received less proceeds from these
exercised warrants due to the price reductions, but the Company believes these
warrants would have been left to expire had the Company not effected the
exercise price reductions.

A summary of the change in common stock purchase warrants
during the three months ended February 28, 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  |   | $ | 0.070           |  |  | 0.17 years       | 
|Warrants issued            |  | 84,900,000  |   |   | 0.020           |  |  |                  | 
|Warrants expired           |  | (40,349,230 | ) |   | 0.070           |  |  |                  | 
|Balance, November 30, 2009 |  | 84,900,000  |   |   | 0.020           |  |  | 0.72 years       | 
|Warrants issued            |  | 35,500,001  |   |   | 0.011           |  |  |                  | 
|Warrants cancelled         |  | (1,000,000  | ) |   | 0.020           |  |  |                  | 
|Warrants price reduced     |  | (30,500,000 | ) |   | 0.018           |  |  |                  | 
|Warrants price reduced     |  | 30,500,000  |   |   | 0.003           |  |  |                  | 
|Balance, February 28, 2010 |  | 119,400,001 |   | $ | 0.014           |  |  | 0.58 years       | 

29

---

|SILVERADO GOLD MINES LTD. AND ITS SUBSIDIARIES        
|------------------------------------------------------
|(An Exploration Stage Company)                        
|NOTES TO THE INTERIM CONSOLIDATED FINANCIAL STATEMENTS
|as of February 28, 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)
|-- | ------------------------------------------

The balance of outstanding and exercisable common stock
purchase warrants as of February 28, 2010 is as follows:

|                   |  |   |                |  |  | Remaining        | 
|------------------ |  | - | -------------- |  |  | ---------------- | 
|Number of Warrants |  |   |                |  |  | Contractual Life | 
|Outstanding        |  |   | Exercise Price |  |  | (Years)          | 
|63,900,000         |  | $ | 0.020          |  |  | 0.14 - 0.88      | 
|25,000,001         |  | $ | 0.010          |  |  | 0.85 - 0.88      | 
|30,500,000         |  | $ | 0.003          |  |  | 0.14 - 0.85      | 
|119,400,001        |  |   |                |  |  |                  | 

Note 13  Segment Disclosures

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
February 28, 2010 and the fiscal year ended November 30, 2009 is as follows:

|As of February 28, 2010                  |   | Canada  |  |   | United States |  |   | Total     | 
|---------------------------------------- | - | ------- |  | - | ------------- |  | - | --------- | 
|Current assets                           | $ | 361,597 |  | $ | 17,085        |  | $ | 378,682   | 
|Mineral rights                           |   | -       |  |   | 1,478,601     |  |   | 1,478,601 | 
|Property, plant and equipment,
      net |   | 397,361 |  |   | 555,902       |  |   | 953,263   | 
|Total assets, as of February 28, 2010    | $ | 758,958 |  | $ | 2,051,588     |  | $ | 2,810,546 | 

|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 three months ended
February 28, 2010 and 2009 is as follows:

|For the Three Months Ended February 28, 2010 |   | Canada  |  |   | United States |  |   | Total     | 
|-------------------------------------------- | - | ------- |  | - | ------------- |  | - | --------- | 
|Total comprehensive loss                     | $ | 962,159 |  | $ | 175,018       |  | $ | 1,137,177 | 

|For the Three Months Ended February 28, 2009 |   | Canada    |  |   | United States |  |   | Total     | 
|-------------------------------------------- | - | --------- |  | - | ------------- |  | - | --------- | 
|Total comprehensive loss                     | $ | 1,160,883 |  | $ | 399,671       |  | $ | 1,560,554 | 

30

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|SILVERADO GOLD MINES LTD. AND ITS SUBSIDIARIES        
|------------------------------------------------------
|(An Exploration Stage Company)                        
|NOTES TO THE INTERIM CONSOLIDATED FINANCIAL STATEMENTS
|as of February 28, 2010 (Unaudited)                   
|(Stated in
      United States Dollars)               

Note 14  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 three months
ended February 28, 2010 and 2009 is as follow:

|                                                                              |   | Three Months Ended February 28, | 
|----------------------------------------------------------------------------- | - | ------------------------------- | 
|                                                                              |   | 2010                            | 
|Changes in non-cash financing and
      investing activities:                 |   |                                 | 
|Common stock issued for consulting fees
      and other expenses              | $ | 243,936                         | 
|Common stock issued for
      prepaid consulting and other service fees       | $ | 20,998                          | 
|Common shares issued for subscriptions
      received                         | $ | 100,000                         | 
|Conversion feature on
      convertible debenture                             | $ | 8,056                           | 
|Mineral claims royalty payable changes
      at period-end for mineral rights | $ | 80,000                          | 
|                                                                              |   |                                 | 
|Other cash flow information:                                                  |   |                                 | 
|Interest paid                                                                 | $ | 4,978                           | 

Note 15  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
|-- | -----------------------------------

On October 27, 2008, the Company entered into Indemnity
Agreements (Agreements) with each of its directors, Garry L. Anselmo, James F.
Dixon and Stuart McCulloch, a related party, (collectively, the Directors).
Pursuant to the terms of the Agreements, the Company granted a general
indemnification to the Directors against all claims and costs that arise out of
the scope or performance of duties as a director or officer of the Company.

Subsequent to November 30, 2009, 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.

31

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|SILVERADO GOLD MINES LTD. AND ITS SUBSIDIARIES        
|------------------------------------------------------
|(An Exploration Stage Company)                        
|NOTES TO THE INTERIM CONSOLIDATED FINANCIAL STATEMENTS
|as of February 28, 2010 (Unaudited)                   
|(Stated in
      United States Dollars)               

Note 15  Commitments and Contingencies (Continued)

|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 | $ | 92,762  | 
| | ------------------------------------ | - | ------- | 
| | 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  | 
| |                                      | $ | 555,777 | 

Note 16  Subsequent Events

Subsequent to February 28, 2010, the following events took
place:

|(a) | The Company completed private placements resulting in the
      issuance of an aggregate of 35,676,337 units at $0.0035 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 proceeds of $124,867 from
      such private placements.
|--- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     
|(b) | The Company issued an aggregate of 5,474,757 shares of
      the Companys unrestricted free trading common stock. These shares were
      issued under the Companys Equity Compensation Plans.                                                                                                                                                                                                                                                                                                                                                                    
|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     
|(c) | The convertible promissory note, dated January 22, 2010
      and issued to St. George, matured on March 15, 2010. The Company and St.
      George are negotiating the terms of their agreement.                                                                                                                                                                                                                                                                                                                                                                   
|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     
|(d) | 44,517,550 of the Companys common stock purchase
      warrants were exercised at a reduced exercise price of $0.003 per common
      share. The Company received proceeds of $91,500 from common stock purchase
      warrant exercises.                                                                                                                                                                                                                                                                                                                          

In preparing the Companys interim consolidated financial
statements, management has evaluated subsequent events  from February 28, 2010
through April 14, 2010.

32

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

The following is a discussion of the operating results and
financial position of Silverado Gold Mines Ltd. (Silverado or the Company)
for the three months ended February 28, 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 three-month period ended February 28, 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.

33

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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.

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. The Company is currently having a $150,000
study conducted on the chemical and physical characteristics of Mississippi Red
Hills Lignite Coal at the Mineral Industry Research Laboratory at the University
of Alaska (Fairbanks) and expects results by late 2010. Results of the tests as
well as capital availability and an increase in oil prices would all have to be
present and sufficient for Silverado Green Fuel Inc. to reconsider construction
of its LRCWF project.

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 February 28, 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.

Based on the completion of a preliminary feasibility study by
an independent and AIPG Certified Professional Geologist (the QP), our Nolan
Gold and Antimony Lode Project has disclosed an economically viable mineral
reserve. The preliminary feasibility study, entitled Update of Mineral Resource
and Reserve Estimates and Preliminary Feasibility Study, Workmans Bench
Antimony-Gold Lode Deposit, Nolan Creek, Wiseman B-1 Quadrangle, Koyukuk Mining
District, Northern Alaska, 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.

The following disclosures incorporate the results of technical
reports prepared during 2008 and 2009 by 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.

34

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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 three month
period ended February 28, 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 February 28, 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.

35

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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 demonstrated 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 $900/oz for gold and US $2.75/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       

36

---

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

37

---

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

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 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
there is a potential for zonation of increased deleterious metals that could
contaminate the antimony ore.

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.

38

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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 summer months we plan to use our diamond core drill for infill drilling for
additional reserve estimates and structural interpretation. We plan to drill a
minimum of 30 shallow (200 to 500 ft) NQ diamond core drill holes, as well 30
deeper holes (> 500 ft) into the Solomon Shear Zone. Also, many of the
formerly mentioned characterization studies will be continued through the summer
months. 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 pilot mill facility. Currently we have a fully
functioning all-season enclosed 23 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. The camp has an abundance
of heavy equipment for excavating and road maintenance.

During the late fall of 2010 we plan to open the Workmans
Bench exploration portal and begin the excavation of a decline for the
extraction of the bulk sample. We plan to extract the majority of vein material
from the A Zone since more than 70% of the current reserve is in this zone. We
plan to use a cut-and-fill stopping method. Once a stop is driven, the vein
structure will be shot off the rib at an estimated width of 2 feet and mucked
out for storage and processing at the surface. Waste rock will be temporarily
stored on lined pads along the left limit Bench of Nolan Creek Valley, an area
used previously by the Company for seasonal storage of bulk samples.

The Companys engineers and geologists have designed the
subsurface routes for an access decline and egress routes for the extraction of
the bulk sample material, as well as located sites for temporary tailings
storage and additional layout sites and mill design. However, depending on
various characterization studies and additional infill drilling results during
2010, the subsurface plan may be amended.

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.

The proposed drilling program for 2010 will be aimed at lode
gold and antimony exploration. Lode drilling will focus on Pringle Bench,
Workmans Bench and the Hillside Prospect along the Solomons Shear trend, and
is designed to provide a better three dimensional understanding of the
mineralized sections of the structure and how it is related to the placer gold
deposits of the Nolan Creek area. 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.

Based on the new 2010 drill data, Company and contract
geologists along with the Company QP have confirmed that the gold and antimony
mineralized zones correlate with the surface geochemistry and geophysical data
that extends northeast past Pringle Bench along the strike through an area
referred to as the Hillside Lode Prospect. The Company has stated previously
that the Hillside Area was thought to be the source of the placer gold mined
from the gravel benches located along the left limit of Nolan Creek between
Smith and Archibald Creeks. The Hillside Lode Prospect is located uphill of the
gold-rich gravel benches mined by Silverado as recent as 2006.

39

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In addition to the drill program, the Company has been
aggressively seeking permits and also compiling various studies by numerous
contractors to meet application requirements for ongoing permits. In order for
the project to advance to the development stage at Nolan, the permitting process
involves various characterization studies. Some of these studies are seasonally
dependent and some require time periods that can delay the permitting process.
The baseline water quality sampling which began in June of 2008, 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.

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 pilot mill and equipment that will be used during the
extraction and processing of the permitted 1,000 cubic yard bulk sample of gold
and antimony ore.

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

| | 1. | Continued aggressive permitting.                                                                                                                                                                                                                                                                        
| | -- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | 2. | Begin the 2010 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. | Underground extraction of a bulk sample of antimony and
      gold ore for additional processing studies and
assays.                                                                                                                                                                                    

40

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

2. HAMMOND PROPERTY

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

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

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

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

3. EAGLE CREEK PROPERTY

The Eagle Creek property is comprised of 77 Alaska state
mineral claims. All claims are contiguous and are located in the Fairbanks North
Star Borough. The total area of the claims equals approximately 3080 acres and
all claims are valid. There has been no legal survey on the claims. Ownership of
the claims is in the name of Silverado Gold Mines Inc. There is an "option to
purchase" agreement with Arley Taylor (i.e., now with his descendants), to
purchase a 100% interest in the property for $400,000, of which $43,000 remains
to be paid. The amount of $5,000 per year is required to be paid to keep the
agreement in good standing 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
gold deposit, and may make ideal feedstock for the Kinross Fort Knox mill
nearby.

41

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

No funding has been advocated for the 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.

4. ESTER DOME PROPERTY

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

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

Reclamation work to complete the closure of the Grant Mill
Tailings Pond is in the permitting stages. The earthwork construction required
to close the tailings pond requires permits issued by the Alaska Department of
Environmental Conservation. The Company has commissioned a third party
environmental and engineering firm to assist with the permitting process. A cost
analysis of the tailings pond closure is under review by the Company and by a
third party environmental and geotechnical engineering firm. The pond is filled
to capacity, and will be capped and decommissioned after final approval of the
tailings pond closure plan is received from State of Alaska regulatory agencies.
There will be limited field work on the property during the summer of 2010,
which will consist of small scale surveys and minor geochemical studies.

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 February 28, 2010 was 0.17 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.

42

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As of February 28, 2010, the Company had a working capital
deficit of $1,843,000 as compared to a working capital deficit of $1,272,000 as
of November 30, 2009. The Company had $96,236 cash on hand as of February 28,
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 $2,811,000 (November 30,
2009: $3,145,000) and the total current assets were $379,000 (November 30, 2009:
$745,000).

As of February 28, 2010, the Companys current assets consist
of $96,236 (November 30, 2009: $Nil) in cash, $6,316 (November 30, 2009: $6,316)
in gold inventory and $276,130 (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 $255,581 (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 $1,479,000 as of
February 28, 2010 as compared to $1,399,000 as of November 30, 2009, an increase
of $80,000 or 6%. The increase in the value of our mineral rights this past
three months is directly attributable to $80,000 in an accrued royalty payment.
The net book value of our fixed assets was $953,000 as of February 28, 2010 as
compared to $1,002,000 as of November 30, 2009, a decrease of approximately
$49,000 or 5%. The decrease in the net book value of our fixed assets was due to
depreciation.

The current liabilities as of February 28, 2010 totaled
$2,222,000 as compared to $2,017,000 as of November 30, 2009, an increase of
approximately $205,000 or 10%. Included in current liabilities are $1,021,000
(November 30, 2009: $1,064,000) due to related parties, which has been
classified as financing activities in the Companys cash flow statements, and
$1,000,000 (November 30, 2009: $883,000) of accounts payable and accrued
liabilities.

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 fiscal quarter ended
February 28, 2010, the Company raised $65,250 of net proceeds through completed
private placements and received $172,324 through uncompleted private placement
subscriptions and warrants exercise. 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 mining
equipment disposals and $52,000 as a result of gold inventory sales during the
fiscal year ended November 30, 2009.

During the three months ended February 28, 2010, the Company
spent $86,000 (2009: 118,000) on the mineral exploration program. In addition,
the Company has spent $1,028,000 (2009: 1,496,000) 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 $10,560,000 during fiscal year 2010.
We will also need to raise and spend approximately $3,000,000 on general and
administrative costs during fiscal year 2010.

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.

43

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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.
A summary of financial information by geographical areas is disclosed in
footnote 13 of the Companys interim consolidated financial statements for the
fiscal quarter ended February 28, 2010 (Item 1, above).

RESULTS OF OPERATIONS  Three Months Ended February 28,
2010 and 2009

The Company has not generated revenues since recommencement of
the exploration stage from December 1, 2001 to February 28, 2010. For the three
months ended February 28, 2010, we reported a net loss of $1,134,000, or $0.001
per share, compared to a net loss of $1,610,000, or $0.002 per share for the
same period ended February 28, 2009, a decrease of approximately 30%.

The major decreases in three months ended February 28, 2010, as
compared to the same period in 2009, were the Companys exploration expenses by
$32,000, its related party charges in excess of cost by $139,000, management
service fees by $185,000, consulting fees by $175,000, office expenses by
$10,000 and transfer agent and filing fees by $30,000. 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 three months
ended February 28, 2010, as compared to the same period in 2009, were increases
of $93,000 for legal and other professional fees and $16,000 interest expenses.
Such increases were mainly due to cash constraints and the increased legal and
other profession requirements related to the Companys efforts relating to
restructuring, equity financing, development and expansion.

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 February 28, 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 February 28, 2010 (Item 1, above).

OFF-BALANCE SHEET ARRANGEMENTS

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

44

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|ITEM 3. | QUANTITATIVE AND QUALITATIVE DISCLOSURES
      ABOUT MARKET RISK
|------- | ----------------------------------------------------------------

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

|ITEM 4. | CONTROLS AND PROCEDURES
|------- | -----------------------

As required by Rule 13a-15 under the Securities Exchange Act of
1934 (the Exchange Act), we carried out an evaluation of the effectiveness of
the design and operation of our disclosure controls and procedures and our
internal control over financial reporting as of February 28, 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:

| | 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 three months ended February 28, 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.

45

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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
|------- | ---------------------------------------------------------

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

|ITEM 5. | OTHER INFORMATION
|------- | -----------------

None.

46

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|ITEM 6. | EXHIBITS
|------- | --------

|Number | Description of Exhibit                                                                                                                                                                              
|------ | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|       |                                                                                                                                                                                                     
|3.1    | Articles of Incorporation
        of the Company (1)                                                                                                                                                
|3.2    | Amendment to Articles of Incorporation
        of the Company (2)                                                                                                                                   
|3.3    | Altered Memorandum
        of the Company (3)                                                                                                                                                       
|3.4    | Amendment to Articles of Incorporation
        of the Company (7)                                                                                                                                   
|4.1    | Share certificate
        representing common shares of the capital of the Company (1)                                                                                                              
|10.1   | Agreement for Conditional Purchase
        and Sale of Mining Property between the Company and Roger C. Burggraf
        dated October 6, 1978  Grant Mine Property (1)                            
|10.2   | Agreement for
        Conditional Purchase and Sale of Mining Property between the Company and
        Paul Barelka, Donald May and Mark Thoennes dated May 12, 1979  St.
        Paul Property (1)
|10.3   | Lease of Mining Claims with Option
        to Purchase between the Company and Alaska Mining Company, Inc. dated
        February 3, 1995  Hammond Property (4)                                    
|10.4   | Change of Control
        Agreement between the Company and Garry L. Anselmo dated May, 1995(6)                                                                                                     
|10.5   | Amendment to Change of Control
        Agreement between the Company and Garry L. Anselmo (6)                                                                                                       
|10.6   | Operating Agreement
        between the Company and Tri-Con Mining Ltd. Dated January 1, 1997 (5)                                                                                                   
|10.7   | Operating Agreement between the
        Company and Tri-Con Mining Inc. dated January 1, 1997 (6)                                                                                                   
|10.8   | Operating Agreement
        between the Company and Tri-Con Mining Alaska Inc. dated January 1, 1997
        (6)                                                                                    
|10.9   | Form of Warrant Exercise Agreement
        between the Company and certain of the selling security holders (8)                                                                                      
|10.10  | Form of Delay
        Agreement between the Company and certain of the Selling Shareholders
        (8)                                                                                             
|10.11  | 2006 Stock Option Plan (10)                                                                                                                                                                         
|10.12  | 2006-II Stock
        Option Plan (11)                                                                                                                                                              
|10.13  | 2007 Stock Option Plan (12)                                                                                                                                                                         
|10.14  | Shared Well Agreement
        between the Company and Sukakpak, Inc., dated May 17, 2007 (14)                                                                                                       
|10.15  | 2007-1 Equity Compensation Plan
        (13)                                                                                                                                                        
|10.16  | Lease Agreement
        between the Company and TA Properties (Canada) Ltd., dated March 30, 2007
        (15)                                                                                      
|10.17  | Indemnity Agreements between
        the Company and Garry L. Anselmo, Stuart C. McCulloch, and James F. Dixon,
        each dated October 27, 2008 (16)                                            
|10.18  | 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 (17)  
|10.19  | 2009 Equity Compensation Plan
        (18)                                                                                                                                                          
|10.20  | 2009-II Equity
        Compensation Plan (19)                                                                                                                                                       
|10.21  | Equity Line of Credit Agreement
        between the Company and Ashborne Finance Ltd.(20)                                                                                                           
|10.22  | Consulting Agreement
        between the Company and 1315781 Ontario Inc. (21)                                                                                                                      
|10.23  | Note Purchase Agreement between
        the Company and St. George Investments, LLC. (22)                                                                                                           
|10.24  | 2009-III Equity
        Compensation Plan (23)                                                                                                                                                      
|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.                            

47

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|(8)  | Filed as an exhibit to the Companys Registration
      Statement on Form SB-2 filed on May 19, 2004.               
|---- | --------------------------------------------------------------------------------------------------------------------
|(9)  | Filed as an exhibit to the Companys Quarterly Report on
      Form 10-QSB filed on July 15, 2004.                  
|(10) | Filed as an exhibit to the Companys Registration
      Statement on Form S-8 filed on April 11, 2006.              
|(11) | Filed as an exhibit to the Companys Registration
      Statement on Form S-8 filed on March 31, 2006.              
|(12) | Filed as an exhibit to the Companys Registration
      Statement on Form S-8 filed on February 20, 2007.           
|(13) | Filed as an exhibit to the Companys Registration
      Statement on Form S-8 filed on September 7, 2007.           
|(14) | Filed as an exhibit to the Companys Annual Report on
      Form 10-KSB for the fiscal year ended November 30, 2007.
|(15) | Filed as an exhibit to the Companys Quarterly Report on
      Form 10-QSB filed on July 15, 2008.                  
|(16) | Filed as exhibits to the Companys Current Report on Form
      8-K filed on October 29, 2008.                      
|(17) | Filed as exhibits to the Companys Current Report on Form
      8-K filed on December 23, 2009.                     
|(18) | Filed as an exhibit to the Companys Registration
      Statement on Form S-8 filed on January 29, 2009.            
|(19) | Filed as an exhibit to the Companys Registration
      Statement on Form S-8 filed on June 1, 2009.                
|(20) | Filed as an exhibit to the Companys Current Report on
      Form 8-K filed on May 12, 2009.                        
|(21) | Filed as an exhibit to the Companys Quarterly Report on
      Form 10-Q filed on October 15, 2009.                 
|(22) | Filed as an exhibit to the Companys Current Report on
      Form 8-K filed on January 28, 2010.                    
|(23) | Filed as an exhibit to the Companys Registration
      Statement on Form S-8 filed on December 16,
2009.           

|* | Filed herewith.
|- | ---------------

48

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

49

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