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UNITED STATESSECURITIES AND EXCHANGE COMMISSIONWashington, D.C. 20549FORM 10-Q /A Amendment no.
  1[X] QUARTERLY REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGEACT OF 1934
  For the quarterly period ended: February 28,2011

or

[ ] TRANSITION REPORT UNDER SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGEACT OF 1934For the transition period from:
___________to ___________Commission File Number:
0-12132SILVERADO 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.)
|                                                                     |                                     
|5455 152ndStreet, Suite 308                                          |                                     
|Surrey, British Columbia, Canada                                     | V3S 5A5                             
|(Address of principal executive offices)                             | (Zip Code)                          

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

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

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

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

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

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

Indicate the number of shares outstanding of each of the
issuers classes of common stock, as of the latest practicable date:
2,914,377,244 common shares, no par value, outstanding as of April 14, 2011.

1

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|SILVERADO GOLD MINES LTD. AND ITS SUBSIDIARIES
|----------------------------------------------
|(An Exploration Stage Company)                
|                                              
|INDEX                                         
|                                              
|Quarterly Period Ended February 28, 2011      

|           |                             |                                                                                                                                                                                                                                                                  | Page 
|---------- | --------------------------- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | -----
|PART I     | FINANCIAL
      INFORMATION |                                                                                                                                                                                                                                                                 
|           |                             |                                                                                                                                                                                                                                                                 
|           | ITEM 1                      | FINANCIAL STATEMENTS                                                                                                                                                                                                                                             | 3    
|           |                             |                                                                                                                                                                                                                                                                  |      
|           |                             | Consolidated
      Balance Sheets as of February 28, 2011 (unaudited) and November 30, 2010
      (audited)                                                                                                                                                      | 3    
|           |                             |                                                                                                                                                                                                                                                                  |      
|           |                             | Consolidated
      Statements of Operations and Comprehensive Loss for the three months ended
      February 28, 2011 and 2010, and for the period from December 1, 2001
      (Recommencement of Exploration Stage) through February 28, 2011
      (unaudited) | 4    
|           |                             |                                                                                                                                                                                                                                                                  |      
|           |                             | Consolidated
      Statements of Cash Flows for the three months ended February 28, 2011 and
      2010, and for the period from December 1, 2001 (Recommencement of
      Exploration Stage) through February 28, 2011 (unaudited)                              | 5    
|           |                             |                                                                                                                                                                                                                                                                  |      
|           |                             | Notes
      to the Consolidated Financial Statements as of February 28, 2011
      (unaudited)                                                                                                                                                                   | 6-24 
|           |                             |                                                                                                                                                                                                                                                                  |      
|           | ITEM
      2                | MANAGEMENT'S
      DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS                                                                                                                                                                      | 25-33
|           |                             |                                                                                                                                                                                                                                                                  |      
|           | ITEM
      3                | QUANTITATIVE
      AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK                                                                                                                                                                                                 | 34   
|           |                             |                                                                                                                                                                                                                                                                  |      
|           | ITEM
      4                | CONTROLS
      AND PROCEDURES                                                                                                                                                                                                                                    | 34   
|           |                             |                                                                                                                                                                                                                                                                  |      
|PART II    | OTHER
      INFORMATION     |                                                                                                                                                                                                                                                                 
|           |                             |                                                                                                                                                                                                                                                                 
|           | ITEM
      1                | LEGAL
      PROCEEDINGS                                                                                                                                                                                                                                          | 35   
|           |                             |                                                                                                                                                                                                                                                                  |      
|           | ITEM
      2                | UNREGISTERED
      SALES OF EQUITY SECURITIES AND USE OF PROCEEDS                                                                                                                                                                                                | 35   
|           |                             |                                                                                                                                                                                                                                                                  |      
|           | ITEM
      3                | DEFAULTS
      UPON SENIOR SECURITIES                                                                                                                                                                                                                            | 35   
|           |                             |                                                                                                                                                                                                                                                                  |      
|           | ITEM
      4                | [REMOVED AND RESERVED]                                                                                                                                                                                                                                           | 35   
|           |                             |                                                                                                                                                                                                                                                                  |      
|           | ITEM
      5                | OTHER
      INFORMATION                                                                                                                                                                                                                                          | 35   
|           |                             |                                                                                                                                                                                                                                                                  |      
|           | ITEM
      6                | EXHIBITS                                                                                                                                                                                                                                                         | 36-37
|           |                             |                                                                                                                                                                                                                                                                  |      
|SIGNATURES |                             | 38                                                                                                                                                                                                                                                              

2

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PART IFINANCIAL 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, |   |  | November 30, |  
|------------------------------------------------------------------------------------------------------------------------------------------------------------ |  | ------------ | - |  | ------------ | -
|                                                                                                                                                             |  | 2011         |   |  | 2010         |  
|                                                                                                                                                             |  | $            |   |  | $            |  
|                                                                                                                                                             |  | (unaudited)  |   |  |              |  
|ASSETS                                                                                                                                                       |  |              |   |  |              |  
|Current Assets                                                                                                                                               |  |              |   |  |              |  
|Cash                                                                                                                                                         |  | 41,216       |   |  | 66,267       |  
|Gold inventory (Note 3)                                                                                                                                      |  | 6,316        |   |  | 6,316        |  
|Prepaid expenses and other receivables (Note
      4)                                                                                                        |  | 138,138      |   |  | 316,393      |  
|Total Current Assets                                                                                                                                         |  | 185,670      |   |  | 388,976      |  
|Mineral Properties and Rights (Note 5)                                                                                                                       |  | 1,621,692    |   |  | 1,600,442    |  
|Property and
      Equipment (Note 6)                                                                                                                        |  | 471,248      |   |  | 494,416      |  
|Total Assets                                                                                                                                                 |  | 2,278,610    |   |  | 2,483,834    |  
|                                                                                                                                                             |  |              |   |  |              |  
|LIABILITIES AND STOCKHOLDERS DEFICIT                                                                                                                        |  |              |   |  |              |  
|Current Liabilities                                                                                                                                          |  |              |   |  |              |  
|Accounts payable and accrued
      liabilities                                                                                                               |  | 894,679      |   |  | 915,819      |  
|Due to related parties (Note 10)                                                                                                                             |  | 665,765      |   |  | 871,744      |  
|Promissory notes (Note 7)                                                                                                                                    |  | 50,000       |   |  | 62,327       |  
|Convertible debt, net of unamortized discount
      of $330,226 (Note 8)                                                                                     |  | 19,774       |   |  | 10,620       |  
|Mineral claims royalty payable                                                                                                                               |  | 571,250      |   |  | 550,000      |  
|Total Current Liabilities                                                                                                                                    |  | 2,201,468    |   |  | 2,410,510    |  
|Asset Retirement Obligation (Note 9)                                                                                                                         |  | 572,079      |   |  | 565,016      |  
|Total Liabilities                                                                                                                                            |  | 2,773,547    |   |  | 2,975,526    |  
|Commitments and Contingencies (Notes 1 and
      15)                                                                                                         |  |              |   |  |              |  
|Subsequent Event (Note 19)                                                                                                                                   |  |              |   |  |              |  
|Stockholders Deficit                                                                                                                                        |  |              |   |  |              |  
|Common Stock, unlimited shares authorized, no par value;
      2,921,377,244 shares issued and outstanding (November 30, 2010 -
      2,441,343,879 shares ) |  | 105,584,639  |   |  | 103,999,508  |  
|Additional Paid-in Capital                                                                                                                                   |  | 1,368,584    |   |  | 1,397,805    |  
|Shares To Be Issued                                                                                                                                          |  | 251,671      |   |  | 207,716      |  
|Deficit Accumulated During the Exploration Stage                                                                                                             |  | (107,699,831 | ) |  | (106,096,721 | )
|Total
      Shareholders Deficit                                                                                                                            |  | (494,937     | ) |  | (491,692     | )
|Total Liabilities and Stockholders Deficit                                                                                                                  |  | 2,278,610    |   |  | 2,483,834    |  

The accompanying notes are an integral part of these
consolidated financial statements3

---

|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)                                       

|                                                                                                  |  | Accumulated From   |   |  |                    |   |  |                      |  
|------------------------------------------------------------------------------------------------- |  | ------------------ | - |  | ------------------ | - |  | -------------------- | -
|                                                                                                  |  | December 1, 2001   |   |  |                    |   |  |                      |  
|                                                                                                  |  | (Date of           |   |  |                    |   |  |                      |  
|                                                                                                  |  | Recommencement of  |   |  |                    |   |  |                      |  
|                                                                                                  |  | Exploration Stage) |   |  | Three Months Ended |  
|                                                                                                  |  | to February 28,    |   |  | February 28,       |  
|                                                                                                  |  | 2011               |   |  | 2011               |   |  | 2010                 |  
|                                                                                                  |  | $                  |   |  | $                  |   |  | $                    |  
|                                                                                                  |  |                    |   |  |                    |   |  | (Restated  Note 20) |  
|                                                                                                  |  |                    |   |  |                    |   |  |                      |  
|Revenue                                                                                           |  |                   |   |  |                   |   |  |                     |  
|                                                                                                  |  |                    |   |  |                    |   |  |                      |  
|Expenses                                                                                          |  |                    |   |  |                    |   |  |                      |  
|                                                                                                  |  |                    |   |  |                    |   |  |                      |  
|Accounting and
      auditing                                                                     |  | 981,443            |   |  | 85,402             |   |  | 6,883                |  
|Advertising, promotion and
      travel                                                           |  | 3,028,547          |   |  | 2,203              |   |  | 12,051               |  
|Consulting fees                                                                                   |  | 13,079,180         |   |  | 1,042,271          |   |  | 563,167              |  
|Depreciation and accretion                                                                        |  | 2,968,689          |   |  | 24,679             |   |  | 48,746               |  
|Exploration
      expenses                                                                        |  | 16,117,826         |   |  | 94,980             |   |  | 85,732               |  
|Amortization of debt issuance
      costs                                                         |  | 320,828            |   |  | 1,525              |   |  | 1,825                |  
|Foreign exchange
      (gain) loss                                                                |  | (392,825           | ) |  | (792               | ) |  | 3,041                |  
|Legal and other professional
      fees                                                           |  | 1,893,848          |   |  | 28,518             |   |  | 191,819              |  
|Management
      services (Note 10)                                                               |  | 6,583,692          |   |  | 40,446             |   |  | 46,417               |  
|Office expenses                                                                                   |  | 5,464,540          |   |  | 132,125            |   |  | 75,610               |  
|Related party
      charges in excess of cost incurred (Note 10)                                  |  | 4,936,979          |   |  | 4,953              |   |  | 7,413                |  
|Reporting and investor relations                                                                  |  | 1,587,514          |   |  | 29,602             |   |  | 58,039               |  
|Research                                                                                          |  | 1,064,735          |   |  |                   |   |  |                     |  
|Transfer agent and filing fees                                                                    |  | 454,995            |   |  | 13,991             |   |  | 17,752               |  
|Impairment of
      mineral claim expenditures                                                    |  | 1,159,529          |   |  |                   |   |  |                     |  
|Impairment of property and
      equipment                                                        |  | 329,679            |   |  |                   |   |  |                     |  
|Impairment of leasehold
      improvements                                                        |  | 340,821            |   |  |                   |   |  |                     |  
|                                                                                                  |  |                    |   |  |                    |   |  |                      |  
|Total Operating Expenses                                                                          |  | 59,920,020         |   |  | 1,499,903          |   |  | 1,118,495            |  
|                                                                                                  |  |                    |   |  |                    |   |  |                      |  
|Operating Loss                                                                                    |  | (59,920,020        | ) |  | (1,499,903         | ) |  | (1,118,495           | )
|                                                                                                  |  |                    |   |  |                    |   |  |                      |  
|Gold income earned during the exploration
      stage                                             |  |                    |   |  |                    |   |  |                      |  
|                                                                                                  |  |                    |   |  |                    |   |  |                      |  
|Gold sale
      proceeds earned during the exploration stage                                      |  | 3,714,310          |   |  |                   |   |  |                     |  
|Cost of gold sold                                                                                 |  | (3,250,373         | ) |  |                   |   |  |                     |  
|Gold inventory addition from
      gold extraction                                                |  | 3,248,056          |   |  |                   |   |  |                     |  
|                                                                                                  |  |                    |   |  |                    |   |  |                      |  
|Total Gold Income Earned During the Exploration Stage                                             |  | 3,711,993          |   |  |                   |   |  |                     |  
|                                                                                                  |  |                    |   |  |                    |   |  |                      |  
|Other Income (Expense)                                                                            |  |                    |   |  |                    |   |  |                      |  
|                                                                                                  |  |                    |   |  |                    |   |  |                      |  
|Interest and
      other income                                                                   |  | 278,067            |   |  |                   |   |  | 33                   |  
|Interest expenses on capital
      lease obligations                                              |  | (333,221           | ) |  |                   |   |  |                     |  
|Accretion of
      discount on convertible and promissory debentures                              |  | (1,224,220         | ) |  | (107,342           | ) |  | (25,176              | )
|Other interest expenses and bank
      charges                                                    |  | (136,833           | ) |  | (8,192             | ) |  | (6,977               | )
|Penalty on
      convertible debt                                                                 |  | (75,000            | ) |  |                   |   |  |                     |  
|Commitment fees                                                                                   |  | (960,000           | ) |  |                   |   |  |                     |  
|Loss on disposal
      of property and equipment                                                  |  | (279,529           | ) |  |                   |   |  |                     |  
|Gain on derivatives                                                                               |  | (29,797            | ) |  |                   |   |  | 14,292               |  
|Gain on
      derecognition of convertible debentures, promissory note and accrued
      interest |  | 273,154            |   |  | 12,327             |   |  |                     |  
|                                                                                                  |  |                    |   |  |                    |   |  |                      |  
|Total Other Expenses                                                                              |  | (2,487,379         | ) |  | (103,207           | ) |  | (17,828              | )
|                                                                                                  |  |                    |   |  |                    |   |  |                      |  
|Loss before cumulative effect of accounting
      change                                          |  | (58,695,406        | ) |  | (1,603,110         | ) |  | (1,136,323           | )
|                                                                                                  |  |                    |   |  |                    |   |  |                      |  
|Cumulative effect of accounting change                                                            |  | (99,481            | ) |  |                   |   |  |                     |  
|                                                                                                  |  |                    |   |  |                    |   |  |                      |  
|Net Loss                                                                                          |  | (58,794,887        | ) |  | (1,603,110         | ) |  | (1,136,323           | )
|                                                                                                  |  |                    |   |  |                    |   |  |                      |  
|Net Loss Per Share  Basic and Diluted                                                            |  |                    |   |  | (0.00              | ) |  | (0.00                | )
|                                                                                                  |  |                    |   |  |                    |   |  |                      |  
|Weighted Average Shares Outstanding                                                               |  |                    |   |  | 2,820,131,327      |   |  | 1,613,165,291        |  

The accompanying notes are an integral part of these
consolidated financial statements4

---

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

|                                                                                      |  | Accumulated From       |   |  |                    |   |  |                      |  
|------------------------------------------------------------------------------------- |  | ---------------------- | - |  | ------------------ | - |  | -------------------- | -
|                                                                                      |  | December 1, 2001 (Date |   |  |                    |   |  |                      |  
|                                                                                      |  | of Recommencement of   |   |  |                    |   |  |                      |  
|                                                                                      |  | Exploration Stage)     |   |  | Three Months Ended |  
|                                                                                      |  | to February 28,        |   |  | February 28,       |  
|                                                                                      |  | 2011                   |   |  | 2011               |   |  | 2010                 |  
|                                                                                      |  | $                      |   |  | $                  |   |  | $                    |  
|                                                                                      |  |                        |   |  |                    |   |  | (Restated  Note 20) |  
|                                                                                      |  |                        |   |  |                    |   |  |                      |  
|Operating Activities                                                                  |  |                        |   |  |                    |   |  |                      |  
|Net loss                                                                              |  | (58,794,887            | ) |  | (1,603,110         | ) |  | (1,136,323           | )
|Adjustments to
      reconcile net loss to cash used in operating activities:         |  |                        |   |  |                    |   |  |                      |  
|Cumulative effect
      of accounting change                                          |  | 99,481                 |   |  |                   |   |  |                     |  
|Amortization of debt issue costs                                                      |  | 7,500                  |   |  |                   |   |  | 1,825                |  
|Depreciation and
      accretion                                                      |  | 2,968,689              |   |  | 24,679             |   |  | 48,746               |  
|Loss on disposal of property and equipment                                            |  | 279,529                |   |  |                   |   |  |                     |  
|Stock-based
      compensation included in management fees                            |  | 3,375,644              |   |  |                   |   |  |                     |  
|Stock issued for debenture                                                            |  | 217,687                |   |  |                   |   |  |                     |  
|Stock issued for
      consulting and other expenses                                  |  | 7,796,962              |   |  | 885,893            |   |  | 243,936              |  
|Prepaid consulting fees expensed                                                      |  | 1,249,059              |   |  | 198,693            |   |  | 482,282              |  
|Stock issued for
      commitment fees                                                |  | 960,000                |   |  |                   |   |  |                     |  
|Financing expense                                                                     |  | 252,003                |   |  |                   |   |  |                     |  
|Accretion of
      discount on convertible debt                                       |  | 1,014,783              |   |  | 107,342            |   |  | 25,176               |  
|Loss (gain) on derivative                                                             |  | 29,797                 |   |  |                   |   |  | (14,292              | )
|Gain
      on derecognition of convertible debt, promissory note and accrued interest |  | (273,154               | ) |  | (12,327            | ) |  |                     |  
|Impairment of mineral claim expenditures                                              |  | 1,159,529              |   |  |                   |   |  |                     |  
|Impairment of
      property and equipment                                            |  | 329,679                |   |  |                   |   |  |                     |  
|Impairment of leasehold improvements                                                  |  | 340,821                |   |  |                   |   |  |                     |  
|Changes in operating assets and
      liabilities:                                    |  |                        |   |  |                    |   |  |                      |  
|Gold inventory                                                                        |  | 2,317                  |   |  |                   |   |  |                     |  
|Prepaid expenses
      and deposits                                                   |  | (44,409                | ) |  | 2,167              |   |  | 1,058                |  
|Accounts payable and accrued liabilities                                              |  | 652,575                |   |  | 31,218             |   |  | 117,592              |  
|Advances to
      related party                                                       |  | 374,451                |   |  | (205,981           | ) |  | (43,094              | )
|Asset retirement
      obligation                                                     |  | 42,768                 |   |  | 7,063              |   |  | 6,756                |  
|Net Cash Used in
      Operating Activities                                           |  | (37,959,176            | ) |  | (564,363           | ) |  | (266,338             | )
|Investing Activities                                                                  |  |                        |   |  |                    |   |  |                      |  
|Investment in mineral properties and
      rights                                     |  | (1,366,942             | ) |  |                   |   |  |                     |  
|Purchase of property
      and equipment                                              |  | (3,082,630             | ) |  | (1,511             | ) |  |                     |  
|Proceeds from sale of property and equipment, net                                     |  | 825,299                |   |  |                   |   |  |                     |  
|Net Cash (Used In) Provided By Investing Activities                                   |  | (3,624,273             | ) |  | (1,511             | ) |  |                     |  
|Financing Activities                                                                  |  |                        |   |  |                    |   |  |                      |  
|Repayment of loans
      payable                                                      |  | (110,728               | ) |  |                   |   |  |                     |  
|Repayment of capital lease obligation                                                 |  | (1,131,607             | ) |  |                   |   |  |                     |  
|Proceeds from issuance
      of convertible debt, net                                 |  | 570,000                |   |  |                   |   |  | 75,000               |  
|Proceeds from issuance of promissory
      notes                                      |  | 62,327                 |   |  |                   |   |  | 50,000               |  
|Share subscriptions
      received                                                    |  | 203,745                |   |  | 104,453            |   |  | 172,324              |  
|Proceeds from issuance of common stock,
      net                                     |  | 41,782,029             |   |  | 431,877            |   |  | 65,250               |  
|Proceeds from exercise of warrants                                                    |  | 231,806                |   |  | 4,493              |   |  |                     |  
|Net Cash Provided
      By Financing Activities                                       |  | 41,607,572             |   |  | 540,823            |   |  | 362,574              |  
|Increase (Decrease) In Cash                                                           |  | 24,123                 |   |  | (25,051            | ) |  | 96,236               |  
|Cash - Beginning
      of Period                                                      |  | 17,093                 |   |  | 66,267             |   |  |                     |  
|Cash - End of Period                                                                  |  | 41,216                 |   |  | 41,216             |   |  | 96,236               |  
|                                                                                      |  |                        |   |  |                    |   |  |                      |  
|Supplemental Disclosures                                                              |  |                        |   |  |                    |   |  |                      |  
|Interest paid                                                                         |  |                        |   |  |                   |   |  | 4,978                |  
|Income taxes paid                                                                     |  |                        |   |  |                   |   |  |                     |  

The accompanying notes are an integral part of these
consolidated financial statements5

---

|SILVERADO GOLD MINES LTD. AND ITS SUBSIDIARIES        
|------------------------------------------------------
|(An Exploration Stage Company)                        
|NOTES TO THE INTERIM CONSOLIDATED FINANCIAL STATEMENTS
|as of February 28, 2011 (Unaudited)                   
|(Stated in
      United States Dollars)               

|1. | Nature 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 Company is considered to be an Exploration Stage
      Company, as defined by Financial Accounting Standards Board (FASB)
      Accounting Standards Codification (ASC) 915, Development Stage
      Entities. Accumulated results of operations and cash flows are
      presented from December 1, 2001, the date the Company re-entered the
      exploration stage.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 
|   | The accompanying 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
      has never paid any dividends and is unlikely to pay dividends or generate
      earnings in the immediate or foreseeable future. As at February 28, 2011,
      the Company has a working capital deficiency of $2,015,798 and has
      accumulated losses of $107,699,831 since inception 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.
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 
|   | The Company's plan for the 2011 exploration season for
      its Alaska operations is to drill further reserves and core analysis
      through a contracted diamond drill operation at the Nolan project and to
      use the Company's own smaller diamond drill core rig for preliminary
      exploration drilling on its Eagle Creek property 8 miles North of
      Fairbanks, Alaska. The Company intends to fund these activities through
      debt and equity financing arrangements, which may be insufficient to fund
      its capital expenditures, working capital and other cash requirements for
      the year ending November 30, 2011. There is no assurance that the Company
      will obtain the necessary financing to complete its objectives.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 
|2. | Summary of Significant Accounting Policies                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 
|   | a)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 
|   | b)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 

6

---

|SILVERADO GOLD MINES LTD. AND ITS SUBSIDIARIES        
|------------------------------------------------------
|(An Exploration Stage Company)                        
|NOTES TO THE INTERIM CONSOLIDATED FINANCIAL STATEMENTS
|as of February 28, 2011 (Unaudited)                   
|(Stated in
      United States Dollars)               

|2. | Summary of Significant Accounting Policies
    (continued)
|-- | ----------------------------------------------------------
|   |                                                           
|   | c)                                                        
|   |                                                           
|   |                                                           
|   |                                                           
|   | d)                                                        
|   |                                                           
|   |                                                           
|   |                                                           
|   | e)                                                        
|   |                                                           
|   |                                                           

Mining equipment
    10 yearsAuto and trucks
    5 yearsComputer equipment
    3 yearsComputer software
    1 yearLeasehold improvements
    5  7 yearsFurniture and fittings
    10 years


|f) | 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 ASC 820, 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 values of
      cash, other receivables, accounts payable, mineral claims royalty payable,
      promissory notes, and due to related parties approximate fair values
      because of the short-term maturity of these instruments. The carrying
      amount reported in the balance sheet for convertible debt approximates
      fair value based on current market rates for similar financial
      instruments. 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) | 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.                                                                                                                                                                                                                                                                  

7

---

|SILVERADO GOLD MINES LTD. AND ITS SUBSIDIARIES        
|------------------------------------------------------
|(An Exploration Stage Company)                        
|NOTES TO THE INTERIM CONSOLIDATED FINANCIAL STATEMENTS
|as of February 28, 2011 (Unaudited)                   
|(Stated in
      United States Dollars)               

|2. | Summary of Significant Accounting Policies
    (continued)
|-- | ----------------------------------------------------------
|   |                                                           
|   | h)                                                        
|   |                                                           
|   |                                                           
|   |                                                           
|   | i)                                                        
|   |                                                           
|   |                                                           
|   |                                                           
|   | j)                                                        
|   |                                                           
|   |                                                           
|   |                                                           
|   | k)                                                        
|   |                                                           
|   |                                                           
|   |                                                           
|   | l)                                                        
|   |                                                           
|   |                                                           
|   |                                                           
|   | m)                                                        
|   |                                                           
|   |                                                           

8

---

|SILVERADO GOLD MINES LTD. AND ITS SUBSIDIARIES        
|------------------------------------------------------
|(An Exploration Stage Company)                        
|NOTES TO THE INTERIM CONSOLIDATED FINANCIAL STATEMENTS
|as of February 28, 2011 (Unaudited)                   
|(Stated in
      United States Dollars)               

|2. | Summary of Significant Accounting Policies
    (continued)
|-- | ----------------------------------------------------------
|   |                                                           
|   |                                                           
|   |                                                           
|   | n)                                                        
|   |                                                           
|   |                                                           
|   |                                                           
|   | o)                                                        
|   |                                                           
|   |                                                           
|   |                                                           
|   | p)                                                        
|   |                                                           
|   |                                                           
|   |                                                           
|   | q)                                                        
|   |                                                           
|   |                                                           
|   |                                                           
|   | r)                                                        
|   |                                                           
|   |                                                           
|   |                                                           
|   | s)                                                        
|   |                                                           
|   |                                                           

9

---

|SILVERADO GOLD MINES LTD. AND ITS SUBSIDIARIES        
|------------------------------------------------------
|(An Exploration Stage Company)                        
|NOTES TO THE INTERIM CONSOLIDATED FINANCIAL STATEMENTS
|as of February 28, 2011 (Unaudited)                   
|(Stated in
      United States Dollars)               

|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. The following is a
      summary of gold inventory changes during the three months ended February
      28, 2011, and during the fiscal year ended November 30,
  2010:

| |                                 |  |             |  |   | Weighted      |  |   |       | 
| | ------------------------------- |  | ----------- |  | - | ------------- |  | - | ----- | 
| |                                 |  | Troy Ounces |  |   | Average Price |  |   | Value | 
| |                                 |  |             |  |   |               |  |   |       | 
| | Balance as of November 30, 2009 |  | 10          |  | $ | 657.50        |  | $ | 6,316 | 
| | Cost of gold sold               |  |            |  |   |              |  |   |      | 
| | Balance as of November 30, 2010 |  | 10          |  | $ | 657.50        |  | $ | 6,316 | 
| | Cost of gold sold               |  |            |  |   |              |  |   |      | 
| | Balance as of February 28, 2011 |  | 10          |  | $ | 657.50        |  | $ | 6,316 | 

|4. | Prepaid Expenses and Other Receivables Prepaid expenses
      and other receivables consist of:
|-- | -----------------------------------------------------------------------------------------------

| |                                                                       |   |                   |  |   | November 30, | 
| | --------------------------------------------------------------------- | - | ----------------- |  | - | ------------ | 
| |                                                                       |   | February 28, 2011 |  |   | 2010         | 
| |                                                                       |   |                   |  |   |              | 
| | Prepaid consulting and other fees resulting
      from share issuance | $ | 2,605             |  | $ | 223,193      | 
| | Shares issued for attorney retainer                                   |   | 92,500            |  |   | 48,000       | 
| | Total prepaid expenses resulting from share
      issuance            |   | 95,105            |  |   | 271,193      | 
| | Insurance deposits, GST refund and others                             |   | 43,033            |  |   | 45,200       | 
| | Total                                                                 | $ | 138,138           |  | $ | 316,393      | 

During the three months ended February
28, 2011, the Company issued an aggregate of 251,252,211 shares of the Companys
common stock for consulting and other service fees, valued at the fair market
price on the measurement date, for total consideration of $908,498, of which
$22,605 was recorded as prepaid expenses at February 28, 2011.

Of the shares of the Companys common
stock issued for consulting and other services, 225,000,000 shares with a fair
value of $817,500 were issued to a consultant to render services for a 3 month
period commencing on December 3, 2010.

|5. | Mineral Properties and 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, 2011. 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.

10

---

|SILVERADO GOLD MINES LTD. AND ITS SUBSIDIARIES        
|------------------------------------------------------
|(An Exploration Stage Company)                        
|NOTES TO THE INTERIM CONSOLIDATED FINANCIAL STATEMENTS
|as of February 28, 2011 (Unaudited)                   
|(Stated in
      United States Dollars)               

|5. | Mineral Properties and Rights (continued)                                                                                                                                                                                                                                                                                                                                                                                                                                             
|-- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       
|   | Since the Company has no proven reserves on its
      properties as of February 28, 2011, the Company does not amortize the
      capitalized mineral costs, but evaluates the capitalized mineral costs
      periodically for impairment in accordance with ASC 360 and has not
      recognized any impairment. A summary of such capitalized direct costs for
      the three months ended February 28, 2011, and for the fiscal year ended
      November 30, 2010 is as follows:

Nolan
    
    
    Ester Dome
    
    
    Hammond
    
    
    Eagle Creek
    
    
    Total(a)
    
    
    (b)
    
    
    (c)
    
    
    (d)Balance as of November 30, 2009
    $
    743,859
    
    $
    40,702
    
    $
    525,900
    
    $
    88,140
    
    $
    1,398,601Additions during the year:Claim fees paid during
      the year
    
    85,953
    
    
    9,398
    
    
    8,400
    
    
    13,090
    
    
    116,841Royalty payment
    
    
    
    
    
    
    
    
    
    
    5,000
    
    
    5,000Accrued royalty payment
    
    
    
    
    
    
    
    80,000
    
    
    
    
    
    80,000Balance as of November 30, 2010
    
    829,812
    
    
    50,100
    
    
    614,300
    
    
    106,230
    
    
    1,600,442Additions during the period:Claim fees paid during the period
    
    
    
    
    
    
    
    
    
    
    
    
    
    Royalty payment
    
    
    
    
    
    
    
    
    
    
    
    
    
    Accrued royalty payment
    
    
    
    
    
    
    
    20,000
    
    
    1,250
    
    
    21,250Balance as of February 28, 2011
    $
    829,812
    
    $
    50,100
    
    $
    634,300
    
    $
    107,480
    
    $
    1,621,692


| | 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)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        
| |    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           
| |    | ii)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       
| |    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           
| |    | iii)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      
| |    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           
| |    | iv)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       
| |    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           
| |    | v)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        
| |    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           
| |    | vi)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       
| |    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           
| |    | 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.                                                 

11

---

|SILVERADO GOLD MINES LTD. AND ITS SUBSIDIARIES        
|------------------------------------------------------
|(An Exploration Stage Company)                        
|NOTES TO THE INTERIM CONSOLIDATED FINANCIAL STATEMENTS
|as of February 28, 2011 (Unaudited)                   
|(Stated in
      United States Dollars)               

|5. | Mineral Properties and Rights (continued)
|-- | -----------------------------------------
|   |                                          
|   | b)                                       
|   |                                          
|   |                                          
|   |                                          
|   |                                          
|   |                                          
|   |                                          
|   |                                          
|   |                                          
|   |                                          
|   |                                          
|   |                                          
|   | c)                                       
|   |                                          
|   |                                          
|   |                                          
|   | d)                                       
|   |                                          
|   |                                          

12

---

|SILVERADO GOLD MINES LTD. AND ITS SUBSIDIARIES        
|------------------------------------------------------
|(An Exploration Stage Company)                        
|NOTES TO THE INTERIM CONSOLIDATED FINANCIAL STATEMENTS
|as of February 28, 2011 (Unaudited)                   
|(Stated in
      United States Dollars)               

|6. | Property and Equipment                                                                                                                                                                                                                                                                                              
|-- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|   |                                                                                                                                                                                                                                                                                                                     
|   | Property and equipment primarily include capital
      expenditures associated with the Companys Vancouver office, and mining
      equipment and camp facilities at the Nolan Gold Project in Alaska.
      Depreciation expense for the three months ended February 28, 2011, was
      $24,679 (2010 - $48,746).
|   |                                                                                                                                                                                                                                                                                                                     
|   | A summary of the Companys property and equipment as of
      February 28, 2011, and November 30, 2010, is as
follows:                                                                                                                                                                                              

| |                                 |  |           |  |  |              |  |  | February 28, |  |  | November 30, | 
| | ------------------------------- |  | --------- |  |  | ------------ |  |  | ------------ |  |  | ------------ | 
| |                                 |  |           |  |  |              |  |  | 2011         |  |  | 2010         | 
| |                                 |  |           |  |  | Accumulated  |  |  | Net Carrying |  |  | Net Carrying | 
| |                                 |  | Cost      |  |  | Depreciation |  |  | Value        |  |  | Value        | 
| |                                 |  | $         |  |  | $            |  |  | $            |  |  | $            | 
| |                                 |  |           |  |  |              |  |  |              |  |  |              | 
| | Offices                         |  |           |  |  |              |  |  |              |  |  |              | 
| | Computer equipment and software |  | 140,079   |  |  | 136,324      |  |  | 3,755        |  |  | 3,951        | 
| | Furniture and fittings          |  | 394,559   |  |  | 390,769      |  |  | 3,790        |  |  | 3,725        | 
| |                                 |  |           |  |  |              |  |  |              |  |  |              | 
| | Mining Project                  |  |           |  |  |              |  |  |              |  |  |              | 
| | Nolan gold project buildings    |  | 63,000    |  |  | 63,000       |  |  |             |  |  |             | 
| | Leasehold improvements          |  | 48,123    |  |  | 33,686       |  |  | 14,437       |  |  | 16,843       | 
| | Nolan mining equipment          |  | 1,017,987 |  |  | 601,923      |  |  | 416,064      |  |  | 435,735      | 
| | Auto and trucks                 |  | 19,193    |  |  | 10,236       |  |  | 8,957        |  |  | 9,917        | 
| | Assets under construction       |  | 24,245    |  |  |             |  |  | 24,245       |  |  | 24,245       | 
| |                                 |  | 1,707,186 |  |  | 1,235,938    |  |  | 471,248      |  |  | 494,416      | 

Assets under construction are not
subject to depreciation until substantially complete.

|7. | Promissory Notes                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              
|-- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               
|   | 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 matured on September 1, 2010. As
      of February 28, 2011, the Company has not repaid the note and has accrued
      interest of $8,650 which is recorded in accrued liabilities.
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               
|   | During the fiscal year ended November 30, 2010, the
      Company received advances of $12,327 from a consultant which is due on
      demand, and bears interest at 7% per annum. During the three months ended
      February 28, 2011, the advances were forgiven by the consultant and the
      Company recognized a gain of $12,327.                                                                                                                                                                                                                                                                    
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               
|8. | Convertible Debt                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               
|   | a)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               

13

---

|SILVERADO GOLD MINES LTD. AND ITS SUBSIDIARIES        
|------------------------------------------------------
|(An Exploration Stage Company)                        
|NOTES TO THE INTERIM CONSOLIDATED FINANCIAL STATEMENTS
|as of February 28, 2011 (Unaudited)                   
|(Stated in
      United States Dollars)               

|8. | Convertible Debt (continued)
|-- | ----------------------------
|   |                             
|   |                             
|   |                             
|   |                             
|   |                             
|   | b)                          
|   |                             
|   |                             
|   |                             
|   |                             
|   |                             
|   |                             
|   |                             
|   | c)                          
|   |                             
|   |                             
|   |                             
|   |                             

14

---

|SILVERADO GOLD MINES LTD. AND ITS SUBSIDIARIES        
|------------------------------------------------------
|(An Exploration Stage Company)                        
|NOTES TO THE INTERIM CONSOLIDATED FINANCIAL STATEMENTS
|as of February 28, 2011 (Unaudited)                   
|(Stated in
      United States Dollars)               

|8. | Convertible Debt (continued)
|-- | ----------------------------
|   |                             
|   |                             
|   |                             
|   | d)                          
|   |                             
|   |                             
|   |                             
|   |                             
|   |                             
|   |                             
|   |                             
|   | e)                          
|   |                             
|   |                             
|   |                             
|   |                             

15

---

|SILVERADO GOLD MINES LTD. AND ITS SUBSIDIARIES        
|------------------------------------------------------
|(An Exploration Stage Company)                        
|NOTES TO THE INTERIM CONSOLIDATED FINANCIAL STATEMENTS
|as of February 28, 2011 (Unaudited)                   
|(Stated in
      United States Dollars)               

|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 re-vegetating 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, 2011, and for the fiscal year ended November 30, 2010, is as
      follows:

| |                                 |   | Grant   |   |   | Nolan   |   |   |         |  
| | ------------------------------- | - | ------- | - | - | ------- | - | - | ------- | -
| |                                 |   | Mine    |   |   | Project |   |   | Total   |  
| | Balance as of November 30, 2009 | $ | 368,884 |   | $ | 171,523 |   | $ | 540,407 |  
| | Accretion expense               |   | 18,444  |   |   | 8,576   |   |   | 27,020  |  
| | Liabilities settled             |   | (1,511  | ) |   | (900    | ) |   | (2,411  | )
| | Balance as of November 30, 2010 | $ | 385,817 |   | $ | 179,199 |   | $ | 565,016 |  
| | Accretion expense               |   | 4,823   |   |   | 2,240   |   |   | 7,063   |  
| | Liabilities settled             |   |        |   |   |        |   |   |        |  
| | Balance as of February 28, 2011 | $ | 390,640 |   | $ | 181,439 |   | $ | 572,079 |  

| | a) | 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, 2011, the Company recorded $4,823 (2010 -
      $4,611) accretion expense.                                                                                                           
| |    |                                                                                                                                                                                                                                                                                                                                                                                                                                            
| | b) | Nolan Gold Project                                                                                                                                                                                                                                                                                                                                                                                                                         
| |    |                                                                                                                                                                                                                                                                                                                                                                                                                                            
| |    | The retirement obligations associated with the Nolan
      mineral properties are associated with the reclamation of disturbed land
      resulting from normal operations and are not the result of improper
      operations of an asset such as environmental remediation liabilities. The
      Nolan mineral properties are on Federal mining claims and thus are under
      the active supervision of the Bureau of Land Management.
| |    |                                                                                                                                                                                                                                                                                                                                                                                                                                            
| |    | As of February 28, 2011, and November 30, 2010, the
      Company is obligated to reclaim 21 acres at Nolan Creek. These 21 acres
      are areas essential for the Companys operations and consist of the camp
      area, equipment storage area, processing area, explosives storage area,
      and the portal area, as well as the roads and core storage area.                                                                      
| |    |                                                                                                                                                                                                                                                                                                                                                                                                                                            
| |    | The Company believes that the remaining accrued
      obligations plus 5% accretion expense per annum until the remaining 21
      acres are reclaimed is sufficient to cover the cost of reclamation. During
      the three months ended February 28, 2011, the Company recorded $2,240
      (2010 - $2,144) accretion expense.                                                                                                         

16

---

|SILVERADO GOLD MINES LTD. AND ITS SUBSIDIARIES        
|------------------------------------------------------
|(An Exploration Stage Company)                        
|NOTES TO THE INTERIM CONSOLIDATED FINANCIAL STATEMENTS
|as of February 28, 2011 (Unaudited)                   
|(Stated in
      United States Dollars)               

|10. | Related Party Transactions / Balances
|--- | -------------------------------------
|    |                                      
|    | a)                                   
|    |                                      
|    |                                      
|    |                                      
|    |                                      
|    |                                      
|    |                                      

| |                                                                         |   | Three months      |  |   | Three months      | 
| | ----------------------------------------------------------------------- | - | ----------------- |  | - | ----------------- | 
| |                                                                         |   | ended             |  |   | ended             | 
| |                                                                         |   | February 28, 2011 |  |   | February 28, 2010 | 
| |                                                                         |   |                   |  |   |                   | 
| | Exploration services                                                    | $ |                  |  | $ |                  | 
| | Administration and management services                                  |   | 37,970            |  |   | 56,832            | 
| | Amounts forgiven by Tri-Con Group                                       |   |                  |  |   |                  | 
| |                                                                         | $ | 37,970            |  | $ | 56,832            | 
| | Amount of total charges in excess of the
      cost                     | $ | 4,953             |  | $ | 7,413             | 
| | Percentage of excess of the cost charged over total amount
      billed |   | 13.04%            |  |   | 13.04%            | 

| | b) | As of February 28, 2011, the Company owed $3,120
      (November 30, 2010  $3,120) to the President of the Company for amounts
      advanced. The advances are due on demand, unsecured, and non-interest
      bearing.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    
| | -- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               
| | c) | As of November 30, 2010, the Company owed $19,598
      (Cdn$20,000) to a director of the Company for amounts advanced. The
      advances were due on demand, unsecured and bore interest at 5% per annum.
      During the three months ended February 28, 2011, the Company repaid the
      advances.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     
| |    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               
| | d) | Effective April 1, 2009, a consulting agreement was
      signed between the Company and a private company controlled by a former
      director of the Company who resigned on April 20, 2010. Pursuant to the
      agreement, the Company agreed to pay the private company Cdn $7,500 plus
      GST per month for corporate planning, business development and investor
      relations services, as requested by the Company. During the three months
      ended February 28, 2011, the Company was billed $15,101 (Cdn$15,000) (2010
      - $21,746 (Cdn$22,500)) by the private company. At February 28, 2011, the
      Company is indebted to the private company for $3,260 (November 30, 2010 
      $15,372). This amount has been recorded in accounts payable and accrued
      liabilities.

17

---

|SILVERADO GOLD MINES LTD. AND ITS SUBSIDIARIES        
|------------------------------------------------------
|(An Exploration Stage Company)                        
|NOTES TO THE INTERIM CONSOLIDATED FINANCIAL STATEMENTS
|as of February 28, 2011 (Unaudited)                   
|(Stated in
      United States Dollars)               

|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, 2011:

| |                                                                                                                          |  | Number of     |  |  | Common      |   |  | Shares  |  
| | ------------------------------------------------------------------------------------------------------------------------ |  | ------------- |  |  | ----------- | - |  | ------- | -
| |                                                                                                                          |  | Common        |  |  | Stock       |   |  | to be   |  
| |                                                                                                                          |  | Shares        |  |  | Amount      |   |  | Issued  |  
| |                                                                                                                          |  | #             |  |  | $           |   |  | $       |  
| | Balance as of November 30, 2010                                                                                          |  | 2,441,343,879 |  |  | 103,999,508 |   |  | 207,716 |  
| | Share Issued:                                                                                                            |  |               |  |  |             |   |  |         |  
| | For Private Placements                                                                                                   |  |               |  |  |             |   |  |         |  
| | $0.004 per share                                                                                                         |  | 75,000,000    |  |  | 300,000     |   |  |        |  
| | $0.0021 per unit (1 unit = 1
      share and 1 warrant)                                                                  |  | 100,000,000   |  |  | 210,000     |   |  | (78,000 | )
| |                                                                                                                          |  | 175,000,000   |  |  | 510,000     |   |  | (78,000 | )
| | For Warrant Exercises                                                                                                    |  |               |  |  |             |   |  |         |  
| | $0.00233 per share                                                                                                       |  | 1,928,572     |  |  | 4,494       |   |  |        |  
| | For Conversion of Debentures                                                                                             |  |               |  |  |             |   |  |         |  
| | $0.0021 per share                                                                                                        |  | 40,405,695    |  |  | 84,852      |   |  |        |  
| | $0.002184 per share                                                                                                      |  | 11,446,887    |  |  | 25,000      |   |  |        |  
| |                                                                                                                          |  | 51,852,582    |  |  | 109,852     |   |  |        |  
| | Shares granted under Equity
      Compensation Plans                                                                     |  |               |  |  |             |   |  |         |  
| | For
      consulting fees granted at a weighted average price of $0.00372                                                |  | 230,468,002   |  |  | 835,000     |   |  |        |  
| | For
      investor relation and shareholder communication services granted at a
      weighted average price of $0.00346 |  | 8,536,084     |  |  | 29,536      |   |  |        |  
| | For
      legal and other services granted at a weighted average price of $0.00359                                       |  | 12,248,125    |  |  | 43,962      |   |  |        |  
| |                                                                                                                          |  | 251,252,211   |  |  | 908,498     |   |  |        |  
| | Reclassification of beneficial conversion
      features on conversions of convertible debt                              |  |               |  |  | 52,410      |   |  |         |  
| | Stock issuance costs                                                                                                     |  |               |  |  | (123        | ) |  |         |  
| | Stock subscriptions received                                                                                             |  |               |  |  |             |   |  | 104,453 |  
| | Shares issuable for services                                                                                             |  |               |  |  |             |   |  | 17,502  |  
| | Balance as of February 28, 2011                                                                                          |  | 2,921,377,244 |  |  | 105,584,639 |   |  | 251,671 |  

| | a) | During the three months ended February 28, 2011, the
      Company issued 75,000,000 shares of common stock at $0.004 per share for
      gross proceeds of $300,000.                                                                                                                                                                                                                                                                                                                                           
| | -- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 
| | b) | During the three months ended February 28, 2011, the
      Company issued 100,000,000 units at $0.0021 per unit for gross proceeds of
      $210,000. Each unit consists of one share of common stock and one share
      purchase warrant. Each warrant is exercisable at a price of $0.01 per
      share for a period of one year.                                                                                                                                                                           
| |    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 
| | c) | During the three months ended February 28, 2011, the
      Company issued 1,928,572 shares of common stock upon the exercise of share
      purchase warrants at $0.00233 per share for gross proceeds of
    $4,494.                                                                                                                                                                                                                                                                                           
| |    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 
| | d) | Pursuant to several agreements for various corporate
      planning, business development and strategies, media solutions and legal
      services, the Company issued an aggregate of 251,252,211 shares of the
      Companys unrestricted free trading common stock during the three months
      ended February 28, 2011, valued at the fair market price on the
      measurement date, for total consideration of $908,498. These shares were
      issued under the Companys Equity Compensation Plans.
| |    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 
| | e) | During the three months ended February 28, 2011, the
      Company issued an aggregate of 51,852,582 shares of common stock upon the
      conversion of the convertible notes in the amount of
  $109,852.                                                                                                                                                                                                                                                                                                     

18

---

|SILVERADO GOLD MINES LTD. AND ITS SUBSIDIARIES        
|------------------------------------------------------
|(An Exploration Stage Company)                        
|NOTES TO THE INTERIM CONSOLIDATED FINANCIAL STATEMENTS
|as of February 28, 2011 (Unaudited)                   
|(Stated in
      United States Dollars)               

|12. | Equity Compensation Plans                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   
|--- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             
|    | On June 3, 2010, the Company adopted the 2010-I Equity
      Compensation Plan (the 2010-I 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 2010-I Plan may not exceed 180,000,000 in
      aggregate. On June 9, 2010, the Company filed a registration statement on
      Form S-8 to register all 180,000,000 of such shares.                                                                                                                                                                                                                                                                                                                      
|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             
|    | On December 2, 2010, the Company adopted the 2010-II
      Equity Compensation 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 2010-II Plan may not exceed 400,000,000 in aggregate. On
      December 2, 2010, the Company filed a registration statement on Form S-8
      to register all 400,000,000 of such shares.                                                                                                                                                                                                                                                                                                                                
|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             
|    | During the three months ended February 28, 2011, the
      Company issued an aggregate of 251,252,211 (2010  36,701,971) shares of
      common stock under the Companys Equity Compensation Plans in payment of
      consulting and other services.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     
|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             
|13. | Stock Options                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               
|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             
|    | There were no stock options granted during the three
      months ended February 28, 2011. The Company uses the Black- Scholes option
      pricing model to calculate the fair value of stock options when the
      options are granted. 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.
|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             
|    | The following table summarizes the continuity of the
      Companys stock options:                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         

| |                                |  |            |   |  |          |   |  | Weighted-        |  |  |           | 
| | ------------------------------ |  | ---------- | - |  | -------- | - |  | ---------------- |  |  | --------- | 
| |                                |  |            |   |  | Weighted |   |  | Average          |  |  |           | 
| |                                |  | Number     |   |  | Average  |   |  | Remaining        |  |  |           | 
| |                                |  | of         |   |  | Exercise |   |  | Contractual Term |  |  | Intrinsic | 
| |                                |  | Options    |   |  | Price    |   |  | (years)          |  |  | Value     | 
| |                                |  |            |   |  | $        |   |  |                  |  |  |           | 
| | Outstanding, November 30, 2009 |  | 48,200,000 |   |  | 0.056    |   |  | 2.72             |  |  |           | 
| | Cancelled                      |  | (3,900,000 | ) |  | (0.058   | ) |  |                  |  |  |           | 
| | Outstanding, November 30, 2010 |  | 44,300,000 |   |  | 0.056    |   |  | 1.68             |  |  |          | 
| | Expired                        |  | (2,600,000 | ) |  | (0.050   | ) |  |                  |  |  |           | 
| | Outstanding, February 28, 2011 |  | 41,700,000 |   |  | 0.056    |   |  | 1.54             |  |  |          | 

19

---

|SILVERADO GOLD MINES LTD. AND ITS SUBSIDIARIES        
|------------------------------------------------------
|(An Exploration Stage Company)                        
|NOTES TO THE INTERIM CONSOLIDATED FINANCIAL STATEMENTS
|as of February 28, 2011 (Unaudited)                   
|(Stated in
      United States Dollars)               

|13. | Stock Options (continued)                                                                          
|--- | ---------------------------------------------------------------------------------------------------
|    |                                                                                                    
|    | As at February 28, 2011, the following common stock
      options were outstanding and exercisable:

RemainingContractualExercise Price
    Life (years)Number of Options$1,500,000
    0.05
    0.337,500,000
    0.05
    0.3620,000,000
    0.05
    1.8512,700,000
    0.07
    1.8741,700,000


|14. | Stock Purchase Warrants                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            
|--- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    
|    | During the three months ended February 28, 2011,
      12,785,715 stock purchase warrants, exercisable at weighted average
      exercise price of $0.012 per share, expired. The Company issued
      100,000,000 common stock purchase warrants upon the completion of a
      private placement during the three months ended February 28, 2011. Each
      common stock purchase warrant issued during the period is exercisable into
      one share of common stock for a period of one year commencing from the
      date of the subscription agreement. There was no value assigned to these
      warrants when they were issued. During the three month period ended
      February 28, 2011, the Company issued 1,928,572 shares of common stock
      upon the exercise of stock purchase warrants for gross proceeds of
      $4,494.
|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    
|    | A summary of the changes in the Companys common share
      purchase warrants is presented below:                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 

| |                           |  |             |   |  | Weighted Average | 
| | ------------------------- |  | ----------- | - |  | ---------------- | 
| |                           |  | Number      |   |  | Exercise Price   | 
| |                           |  |             |   |  | $                | 
| | Balance November 30, 2009 |  | 84,900,000  |   |  | 0.020            | 
| | Issued                    |  | 172,307,324 |   |  | 0.0079*          | 
| | Exercised                 |  | (82,917,550 | ) |  | 0.0027*          | 
| | Expired                   |  | (48,000,000 | ) |  | 0.020            | 
| | Balance November 30, 2010 |  | 126,289,774 |   |  | 0.010            | 
| | Issued                    |  | 100,000,000 |   |  | 0.01             | 
| | Exercised                 |  | (1,928,572  | ) |  | 0.00233*         | 
| | Expired                   |  | (12,785,715 | ) |  | 0.004            | 
| | Balance February 28, 2011 |  | 211,575,487 |   |  | 0.01             | 

*Weighted average exercise price were
calculated based on reduced exercise prices.

As at February 28, 2011, the following
common share purchase warrants were outstanding:

RemainingContractual LifeExercise Price
    (years)Number of Warrants$101,575,487
    0.010
    0.07  0.6310,000,000
    0.0023
    0.41100,000,000
    0.01
    0.77211,575,487


20

---

|SILVERADO GOLD MINES LTD. AND ITS SUBSIDIARIES        
|------------------------------------------------------
|(An Exploration Stage Company)                        
|NOTES TO THE INTERIM CONSOLIDATED FINANCIAL STATEMENTS
|as of February 28, 2011 (Unaudited)                   
|(Stated in
      United States Dollars)               

|15. | Commitments
|--- | -----------
|    |            
|    | a)         
|    |            
|    | b)         
|    |            
|    | c)         

Fiscal year ending November 30, 2011
    $
    50,872 (Cdn$49,544)Fiscal year ending November 30, 2012
    
    76,308 (Cdn$74,316)Fiscal year ending November 30, 2013
    
    76,884 (Cdn$74,879)Fiscal year ending November 30, 2014
    
    79,764 (Cdn$77,694)Fiscal year ending November 30, 2015
    
    79,764 (Cdn$77,694)$
    363,592 (Cdn$354,127)


| | d) | On November 26, 2010, the Company entered into three year
      equipment lease that expires on November 30, 2013. The lease payment for
      the first 35 months will be $2,567 (Cdn$2,500) and the last month will be
      $1,654 (Cdn$1,611). The lease is secured by the leased
equipment.                                                                                                                                                                                                                                         
| | -- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          
| | e) | On March 27, 2010, the Company entered into a 1 year
      consulting agreement in which the Company will issue shares of the
      Companys common stock equal in value to Cdn$6,000 plus GST at the average
      price over the immediate 20 preceding days payable on the 20thof each month, for an aggregate maximum of 6,000,000 shares of
      common stock if the consulting services are provided for the full term of
      this agreement. The Company will pay the consultant a commitment fee of
      $8,625 (Cdn$8,400).

21

---

|SILVERADO GOLD MINES LTD. AND ITS SUBSIDIARIES        
|------------------------------------------------------
|(An Exploration Stage Company)                        
|NOTES TO THE INTERIM CONSOLIDATED FINANCIAL STATEMENTS
|as of February 28, 2011 (Unaudited)                   
|(Stated in
      United States Dollars)               

|16. | 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.
|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        
|    | Long-lived assets by geographical segment as of February
      28, 2011, and November 30, 2010 are as
follows:                                                                                                                                                                                                                                                                                                                                                                                         

| |                                     |   | Canada |  |   | United States |  |   | Total     | 
| | ----------------------------------- | - | ------ |  | - | ------------- |  | - | --------- | 
| | As of February 28, 2011             |   |        |  |   |               |  |   |           | 
| | Mineral properties and rights       |   | -      |  |   | 1,621,692     |  |   | 1,621,692 | 
| | Property and equipment              |   | 7,544  |  |   | 463,704       |  |   | 471,248   | 
| |                                     | $ | 7,544  |  | $ | 2,085,396     |  | $ | 2,092,940 | 
| |                                     |   |        |  |   |               |  |   |           | 
| | As of November 30, 2010             |   |        |  |   |               |  |   |           | 
| | Mineral properties and
      rights |   | -      |  |   | 1,600,442     |  |   | 1,600,442 | 
| | Property and equipment              |   | 7,676  |  |   | 486,740       |  |   | 494,416   | 
| |                                     | $ | 7,676  |  | $ | 2,087,182     |  | $ | 2,094,858 | 

|17. | 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, 2011, and 2010 is as
  follow:

| |                                                                               |  | Three Months Ended | 
| | ----------------------------------------------------------------------------- |  | ------------------ | 
| |                                                                               |  | February 28,       | 
| |                                                                               |  | 2011               | 
| |                                                                               |  | $                  | 
| | Changes in non-cash financing and investing
      activities:                 |  |                    | 
| | Common stock issued on conversion of
      convertible debentures             |  | 109,852            | 
| | Mineral
      claims royalty payable changes at period-end for mineral rights |  | 21,250             | 
| | Convertible debenture issued on
      repayment of accounts payable           |  | 34,852             | 

|18. | Fair Value Measurements                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     
|--- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             
|    | ASC 820, Fair Value Measurements and Disclosuresrequires an entity to maximize the use of observable inputs and
      minimize the use of unobservable inputs when measuring fair value. ASC 820
      establishes a fair value hierarchy based on the level of independent,
      objective evidence surrounding the inputs used to measure fair value. A
      financial instruments categorization within the fair value hierarchy is
      based upon the lowest level of input that is significant to the fair value
      measurement. ASC 820 prioritizes the inputs into three levels that may be
      used to measure fair value:

Level 1

Level 1 applies to assets or
liabilities for which there are quoted prices in active markets for identical
assets or liabilities. Valuations are based on quoted prices that are readily
and regularly available in an active market and do not entail a significant
degree of judgment.

22

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|SILVERADO GOLD MINES LTD. AND ITS SUBSIDIARIES        
|------------------------------------------------------
|(An Exploration Stage Company)                        
|NOTES TO THE INTERIM CONSOLIDATED FINANCIAL STATEMENTS
|as of February 28, 2011 (Unaudited)                   
|(Stated in
      United States Dollars)               

|18. | Fair Value Measurements
(continued)
|--- | -----------------------------------

Level 2

Level 2 applies to assets or
liabilities for which there are other than Level 1 observable inputs such as
quoted prices for similar assets or liabilities in active markets; quoted prices
for identical assets or liabilities in markets with insufficient volume or
infrequent transactions (less active markets); or model-derived valuations in
which significant inputs are observable or can be derived principally from, or
corroborated by, observable market data.

Level 2 instruments require more
management judgment and subjectivity as compared to Level 1 instruments. For
instance: determining which instruments are most similar to the instrument being
priced requires management to identify a sample of similar securities based on
the coupon rates, maturity, issuer, credit rating and instrument type, and
subjectively select an individual security or multiple securities that are
deemed most similar to the security being priced; and determining whether a
market is considered active requires management judgment.

Level 3

Level 3 applies to assets or
liabilities for which there are unobservable inputs to the valuation methodology
that are significant to the measurement of the fair value of the assets or
liabilities. The determination of fair value for Level 3 instruments requires
the most management judgment and subjectivity.

Pursuant to ASC 825, cash is based on
"Level 1" inputs and due to related parties, promissory notes and convertible
debt are valued based on Level 2 inputs, consisting of model driven
valuations. The Company believes that the recorded values of these financial
instruments, other receivables and accounts payable approximate their current
fair values because of their nature or respective relatively short
durations.

Assets measured at fair value on a
recurring basis were presented on the Companys consolidated balance sheet as of
February 28, 2011, as follows.

| |         |  | Fair Value Measurements Using |  |  |             | 
| | ------- |  | ----------------------------- |  |  | ----------- | 
| |         |  | Quoted Prices in              |  |  | Significant | 
| |         |  | Active Markets                |  |  | Other       | 
| |         |  | For Identical                 |  |  | Observable  | 
| |         |  | Instruments                   |  |  | Inputs      | 
| |         |  | (Level 1)                     |  |  | (Level 2)   | 
| |         |  | $                             |  |  | $           | 
| | Assets: |  |                               |  |  |             | 
| | Cash    |  | 41,216                        |  |  |            | 

As at February 28, 2011, there were no
liabilities measured at fair value on a recurring basis presented on the
Companys consolidated balance sheet.

|19 | Subsequent Event
|-- | ----------------

On April 1, 2011, the Company received
a loan in the amount of $15,000 which is unsecured, non-interest bearing and due
on demand.

23

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|SILVERADO GOLD MINES LTD. AND ITS SUBSIDIARIES        
|------------------------------------------------------
|(An Exploration Stage Company)                        
|NOTES TO THE INTERIM CONSOLIDATED FINANCIAL STATEMENTS
|as of February 28, 2011 (Unaudited)                   
|(Stated in
      United States Dollars)               

|20. | Restatement                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 
|--- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             
|    | During the year ended November 30, 2010, the Company
      identified an error relating to the accounting for the convertible debt
      described in Note 8(a) in its financial statements included in the
      Companys Form 10-K filed with the SEC on March 12, 2010. The Company had
      previously separately accounted for the liability and equity components of
      convertible debentures to reflect the fair value of the liability
      component based on the Companys non-convertible borrowing cost at the
      issuance date. The value attributed to the conversion feature of the
      convertible note was included in additional paid-in capital on the
      consolidated balance sheet. Debt issuance costs of $7,500 and shares
      issued with the convertible debt valued at $80,000 were expensed in the
      statement of operations. After further review, the Company has determined
      that the proceeds should have been allocated based on the relative fair
      values of the convertible note and the shares at time of issuance, the
      resulting beneficial conversion of the convertible note recorded in
      additional paid-in capital, and debt issuance costs capitalized as
      deferred charges and amortized over the term of the convertible
    debt.
|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             
|    | The Company also identified an error related to the
      accounting for the convertible debt described in Note 8(a) in its
      financial statements included in the Companys Form 10-Q filed with the
      SEC on April 14, 2010. The Company had previously separately accounted for
      the liability and equity components of convertible debentures to reflect
      the fair value of the liability component based on the Companys
      non-convertible borrowing cost at the issuance date. The value attributed
      to the conversion feature of the convertible note was included in
      additional paid-in capital on the consolidated balance sheet. After
      further review, the Company has determined that the conversion option
      should be separated from the host contract and accounted for as a
      derivative at time of issuance, the conversion feature classified as
      liability and measured at fair value with changes in fair value recorded
      in the statement of operations.                                                                                                                                                                                                                                                                                      
|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             
|    | The following table reflects the adjustment and restated
      amounts:                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     

| |                                                                      |  | For the Three Months Ended February 28, 2010 | 
| | -------------------------------------------------------------------- |  | -------------------------------------------- | 
| |                                                                      |  | As Reported                                  | 
| | Consolidated Statement of Operations                                 |  | $                                            | 
| | Operating expenses                                                   |  |                                              | 
| | Amortization of debt issuance costs                                  |  |                                             | 
| |                                                                      |  |                                              | 
| | Total operating expenses                                             |  | 1,116,670                                    | 
| |                                                                      |  |                                              | 
| | Accretion of discount on convertible and
      promissory debentures |  | 13,563                                       | 
| | Gain on fair value of
      derivative liability                     |  |                                             | 
| |                                                                      |  |                                              | 
| | Net Loss                                                             |  | 1,137,177                                    | 

| | a) | To amortize debt issuance costs.                                                         
| | -- | -----------------------------------------------------------------------------------------
| |    |                                                                                          
| | b) | To record accretion of discount on convertible
    debts.                                
| |    |                                                                                          
| | c) | To recognized change in fair value of derivative
      liability as at February 28, 2010.

24

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

The following is a discussion of the operating results and
financial position of Silverado Gold Mines Ltd. (Silverado or the Company)
for the three months ended February 28, 2011. It should be read in conjunction
with the Companys audited consolidated financial statements and footnotes for
the fiscal year ended November 30, 2010 and the interim unaudited consolidated
financial statements for the three-month period ended February 28, 2011.

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. 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 in the development of a liquid fuel derived from
low-rank coal through its other wholly-owned subsidiary, Silverado Green Fuel,
Inc.

The Company has committed over three decades of work to the
exploration, development and test mining of gold properties throughout North
America. In the mid-1980s, the Company decided to focus its efforts in Alaska.
We have extensive experience in geological, geochemical and geophysical
exploration techniques.

25

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

The Company has also been working on the development of
low-rank coal-water fuel (Green Fuel), a non-toxic liquid fuel product derived
from sub-bituminous and lignite coal. In its finished form, the fuel is a
non-toxic, non-hazardous environmentally friendly strategic (liquid) fuel.
Silverado is seeking financing to enable us to proceed with the construction of
a commercial demonstration facility designed to document the combustion
characteristics of Green Fuel. A successful demonstration project could lead to
construction of a commercial production facility to manufacture the low-rank
coal-water fuel as a replacement fuel for oil fired boilers and utility
generators.

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 Gold Project;             
|-- | --------------------------------
|   |                                 
|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, 2011, with the exception of the Nolan
property, which has a probable reserve but requires a more extensive feasibility
study to ascertain if such probable reserve can be classified as a proven
reserve.

The following disclosures incorporate the results of technical
reports prepared during 2008 and 2009 by Thomas K. Bundtzen (Bundtzen/the
QP), a third party independent qualified person and certified professional
geologist, 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.

The Nolan Gold Project has been the focus of the Companys
exploration strategy since 2007 and will be the focus again in 2011. Although a
lack of sufficient capital did not allow for the permitted 1,000 cubic yard bulk
sample under Workmans Bench in 2010, the Company plans to continue exploration
drilling for the purpose of defining additional mineral resources associated
with the Solomon Shear Zone.

Following the 2009 drill program at Nolan Creek, the Company
determined that a larger core drilling rig will be needed in order to move
forward with drilling in 2011. The current Company owned drill rig is limited to
less than 500 feet of drilling. Any additional drilling beyond the current
resource blocks will require larger and more powerful drills that can drill over
1,000 feet.

26

---

During 2010 there was no additional drilling within the current
probable reserve block at Workmans Bench and therefore there have been no
changes to the probable mineral reserve which amounts to 42,412 tons grading 28%
antimony, and 0.408 ounces/ton gold. Through the end of 2008, the Workmans and
Pringle Bench gold and antimony deposits contained a total inferred resource
amounting to 24,077 tons grading 12.45% antimony and 0.245 ounces/ton gold (for
both estimates, see January 1, 2009 NI-43-101 Technical Report for Nolan Creek
which was amended June 1, 2009).

Our plan of operations for the next twelve months are as
follows:

1. NOLAN GOLD PROJECT

The Company owns a 100 percent interest in numerous mining
claims on the Nolan Creek Project. As of February 28, 2011, 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. There has been no legal survey on any of the 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. The Nolan Gold Project is accessible by the Elliott
and the James Dalton Highways, about 280 road miles north of Fairbanks Alaska.
An all weather road connects the Nolan Creek Camp with the James 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. Coldfoot also has a weather station
provided by the Alaska State Weather Service, and a post office.

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
James 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.

Based on a preliminary feasibility analysis of January 1, 2009,
as amended June 1, 2009, we have economically viable reserves on our properties
that comprise the Nolan Gold Project, subject to a final feasibility study. We
plan to carry out activities on the Nolan Gold Project. The objective of the
activities on the Nolan Gold Project is to complete permitting, drill, and
continue underground development and bulk sampling and processing.

27

---

The primary plan of operations for the Company is the
advancement of the Nolan Project toward the development stage and depending on
obtaining sufficient financing, management will pursue a responsible timeline
that will meet the needs of the Project and the budget. The procurement of
supplies and equipment for the construction of a pilot mill at Nolan for the
processing of a 1,000 cubic yard sample is important to the advancement of the
operation. Depending on available capital, the procurement of supplies for the
pilot mill could stall the bulk sample program in which case the Company will
continue with the drilling program and other exploration activities on the Nolan
Creek Property and focus on the increase in mineral resources.

The plan of operation for the Nolan Gold Project for the 2011
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 Area. The Company is in a transitional
phase between exploration and development. The recent preliminary feasibility
study effective January 1, 2009, amended June 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 Thomas K. Bundtzen (Bundtzen or QP) concluded that the
Nolan Gold and Antimony Project in the Workmans Bench area is economically
viable.

Our plan of operations for the next three years 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.

The plan of operations for 2011 involves the continuation of a
variety of characterization studies in preparation for the development stage and
for permitting requirements necessary for the future production of the
antimony-gold deposit underlying the Workmans Bench. These studies include but
are not limited to additional hydrologic studies proximal to our planned
underground workings, as well as 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 2011 is seasonal 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 20 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, the Company plans 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.

28

---

During the late fall of 2011, we plan to open our portal and
begin the excavation of a decline to begin 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
stoping method. Once a stope 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.

Currently, 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.

Readers and investors are cautioned that much of the work
planned in 2011 is contingent upon available funding and the success and speed
of the permitting process.

Our exploration plans are to further define lode gold and
antimony resources.. The program includes drilling and trenching, as well as the
review of geological and geophysical data. Our proposed drilling program for
2011 will be aimed at lode gold and antimony exploration. Lode drilling will
focus on Pringle Bench, Workmans Bench and the Hillside 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.

We have been working on interpreting the geology of the Nolan
area since 1979, when we first acquired the project. Our latest and most
extensive exploration program began in early 2007 and was directed at improving
our placer deposit definition and discovering potential lode sources of the
placer gold. Our exploration geologists and mining engineers have worked to move
this objective forward. Our exploration efforts have included the analysis of
geophysical data, geochemical sampling results, Company records and analysis
provided by government mineral investigation efforts and publications as well as
the trenching and exploration drilling of target areas.

If we can raise the necessary capital, we plan to spend up to
$10,000,000 in the next twelve months in carrying out our exploration,
permitting and development activities for the Nolan Gold Project. Of this
amount, $3,600,000 is projected for lode drilling on the Solomon Shear Zone. The
actual amount that we spend on exploration will depend on the actual amount of
funds that we have available for exploration. 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 Company leases 24 federal placer mining claims and 36
federal lode mining claims from Alaska Mining Company, Inc. (Alminco). As of
February 28, 2011, we were in arrears of required mineral property claims and
option payments of $570,000 and therefore our rights to the property were
adversely affected. We are currently re-negotiating the terms and conditions of
the Alminco agreement with 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, when business conditions permit; however there is no assurance
that we will be able to successfully renegotiate the terms and conditions of the
Alminco agreement.

29

---

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

3. EAGLE CREEK PROPERTY

The Eagle Creek property is comprised of 77 Alaska state
mineral claims. All claims are contiguous and are located in the Fairbanks North
Star Borough. The total area of the claims equals approximately 3080 acres and
all claims are valid. There has been no legal survey on the claims. Ownership of
the claims is in the name of Silverado Gold Mines Inc. There is an "option to
purchase" agreement with Arley Taylor (i.e., now with his descendants), to
purchase a 100% interest in the property for $400,000, of which $38,000 remains
to be paid. The amount of $5,000 per year is required to be paid to keep the
agreement in good standing. 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.

During 2011, we plan to move forward with an exploration
program which will include both trenching and diamond core drilling. The
majority of the permits required for the proposed exploration program have been
approved. If funding permits, the Company will design a drilling program to
further investigate the gold mineralization associated with the mineralized
structures known as vein-faults.

A commercially viable economic mineral deposit has not been
defined on the property, and there is no assurance that a commercially viable
economic mineral deposit exists on the property. Any proposed exploration
program that includes drilling is dependent on available capital and there is no
assurance that the Company will be able to initiate such a program.

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. There are three separate agreements covering these 53
claims on the Ester Dome property.

During 2011, we plan to move forward with the closure of the
Grant Mill Tailings Pond. This pond is filled to capacity, and will be capped
and decommissioned after a final approval of the tailings pond closure plan is
received from State of Alaska regulatory agencies. A meaningful exploration
program may be completed during the summer months to explore for and identify
small high-grade gold anomalies as well as larger low-grade gold anomalies.
Completing the 2011 exploration work plan will be contingent on available
funding.

LOW-RANK COAL-WATER FUEL PROJECT

Silverado 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 in 2011.

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 Green Fuel project.

30

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LIQUIDITY AND CAPITAL RESOURCES

Our current ratio (current assets divided by current
liabilities) as of February 28, 2011 was 0.08 as compared to 0.16 as of November
30, 2010. This ratio is commonly used as a measure of a companys liquidity. We
look at actual dollars in analyzing our liquidity. Since the Companys cash
inflow has been generated mainly from sales of shares of the Companys common
stock, gold sale proceeds earned during the exploration stage, debentures and
loans, it will be very difficult for the Company to meet the current and
anticipated obligations without raising additional capital. If we are not able
to raise adequate capital and to do so in a timely manner, we will not be able
to fully implement our business plan or sustain ongoing operations.

As of February 28, 2011, the Company had a working capital
deficit of $2,016,000 as compared to a working capital deficit of $2,022,000 as
of November 30, 2010. The Company had $41,216 cash on hand as of February 28,
2011 as compared to $66,267 cash on hand as of November 30, 2010. The Companys
total assets for such periods were $2,279,000 (November 30, 2010: $2,484,000)
and the total current assets were $186,000 (November 30, 2010: $389,000).

As of February 28, 2011, the Companys current assets consist
of $41,216 (November 30, 2010: $66,267) in cash, $6,316 (November 30, 2010:
$6,316) in gold inventory and $138,138 (November 30, 2010: $316,393) in prepaid
and other receivables. Included in prepaid and other receivables were non-cash
prepaid consulting and other fees of $95,105 (November 30, 2010: $271,193) 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 have a carrying value at
$1,622,000 as of February 28, 2011 as compared to $1,600,000 as of November 30,
2010, an increase of $22,000 or 1%. The increase in the value of our mineral
rights this past three months is directly attributable to $22,000 in an accrued
royalty payment. The net book value of our fixed assets was $471,000 as of
February 28, 2011 as compared to $494,000 as of November 30, 2010, a decrease of
approximately $23,000 or 5%. The decrease in the net book value of our fixed
assets was due to depreciation.

The current liabilities as of February 28, 2011 totaled
$2,201,000 as compared to $2,411,000 as of November 30, 2010, a decrease of
approximately $210,000 or 9%. Included in current liabilities are $666,000
(November 30, 2010: $872,000) due to related parties, which has been classified
as operating activities in the Companys cash flow statements, and $895,000
(November 30, 2010: $916,000) 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, 2011, the Company raised $432,000 of net proceeds through completed
private placements of which $78,000 was received from uncompleted private
placement subscriptions in fiscal year ended November 30, 2010. The Company also
received $108,947 through warrants exercise, of which $104,453 is included in
common stock subscribed. During the fiscal year ended November 30, 2010, the
Company raised $594,000 of net proceeds through completed private placements of
which $100,000 was received from uncompleted private placement subscriptions in
the fiscal year ended November 30, 2009.

During the three months ended February 28, 2011, the Company
incurred $22,000 (2010: $80,000) on mineral rights and $95,000 (2010: $86,000)
on the mineral exploration and drilling program.

31

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In addition, the Company has incurred $1,405,000 (2010:
$1,032,000) 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 2011. We will also need to raise
and spend approximately $3,000,000 on general and administrative costs during
fiscal year 2011.

The Company is currently seeking capital to place the Nolan
mine into the development and production phase.

The Company expects to continue to be funded primarily from
equity financings and will continue the current process of seeking to arrange
financing of those operational budgets, exploration and near term production to
meet the requirements of the work program. The ability of the Company to
complete the exploration and development of its mineral properties is dependent
on the Companys ability to obtain the necessary financing. There is no
assurance that we will be able to raise the financing necessary to enable us to
implement our business plan.

SEGMENT INFORMATION

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

| |                                                    |   | Canada    |  |   | United States |  |   | Total     | 
| | -------------------------------------------------- | - | --------- |  | - | ------------- |  | - | --------- | 
| | As of February 28, 2011                            |   |           |  |   |               |  |   |           | 
| | Mineral properties and rights                      |   | -         |  |   | 1,621,692     |  |   | 1,621,692 | 
| | Property and equipment                             |   | 7,544     |  |   | 463,704       |  |   | 471,248   | 
| |                                                    | $ | 7,544     |  | $ | 2,085,396     |  | $ | 2,092,940 | 
| |                                                    |   |           |  |   |               |  |   |           | 
| | As of November 30, 2010                            |   |           |  |   |               |  |   |           | 
| | Mineral properties and
      rights                |   | -         |  |   | 1,600,442     |  |   | 1,600,442 | 
| | Property and equipment                             |   | 7,676     |  |   | 486,740       |  |   | 494,416   | 
| |                                                    | $ | 7,676     |  | $ | 2,087,182     |  | $ | 2,094,858 | 
| |                                                    |   |           |  |   |               |  |   |           | 
| | For the Three Months Ended February 28,
      2011 |   |           |  |   |               |  |   |           | 
| | Total net loss and comprehensive loss              | $ | 1,463,982 |  | $ | 139,128       |  | $ | 1,603,110 | 
| |                                                    |   |           |  |   |               |  |   |           | 
| | For the Three Months Ended February 28, 2010       |   |           |  |   |               |  |   |           | 
| | Total net loss and
      comprehensive loss        | $ | 961,305   |  | $ | 175,018       |  | $ | 1,136,323 | 

RESULTS OF OPERATIONS  Three Months Ended February 28,
2011 and 2010

The Company has not generated revenues since recommencement of
the exploration stage from December 1, 2001 to February 28, 2011. For the three
months ended February 28, 2011, we reported a net loss of $1,603,000, or $0.00
per share, compared to a net loss of $1,136,000, or $0.00 per share for the same
period ended February 28, 2010, an increase of approximately 41%.

32

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The major decreases in three months ended February 28, 2011, as
compared to the same period in 2010, were the Companys legal and other
professional fees by $163,000, and reporting and investor relations expenses by
$28,000. 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, 2011, as compared to the same period in 2010, were increases
of $78,000 in accounting and auditing fees, $479,000 in consulting fees, $56,000
in office expenses, and $82,000 in accretion of discount on convertible and
promissory debentures. Such increases were mainly due to increased funding
during the period for equity and convertible debt financings and the Companys
efforts relating to restructuring, 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, 2011 (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, 2011 (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.

33

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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

***Management’s
  Report on Disclosure Controls and Procedures***

We maintain
  disclosure controls and procedures that are designed to ensure that information
  required to be disclosed in our reports filed under the Securities Exchange
  Act of 1934, as amended, is recorded, processed, summarized and reported within
  the time periods specified in the Securities and Exchange Commission's rules
  and forms, and that such information is accumulated and communicated to our
  management, including our president (also our principal executive officer) and
  our chief financial officer (also our principal financial officer and principal
  accounting officer) to allow for timely decisions regarding required disclosure.

As of February
  28, 2011, the end of our first quarter covered by this report, we carried out
  an evaluation, under the supervision and with the participation of our president
  (also our principal executive officer and our principal financial officer and
  principal accounting officer), of the effectiveness of the design and operation
  of our disclosure controls and procedures. Based on the foregoing, our president
  (also our principal executive officer) and our chief financial officer (also
  our principal financial officer and principal accounting officer) concluded
  that our disclosure controls and procedures were effective as of the end of
  the period covered by this quarterly report.

***Changes
  in Internal Control over Financial Reporting***

There have
  been no changes in our internal controls over financial reporting that occurred
  during the quarter ended February 28, 2011 that have materially or are reasonably
  likely to materially affect, our internal controls over financial reporting.

34

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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

On  December 15, 2010, the Company completed the sale and issuance of 11,446,887  shares of its restricted common stock under Rule 506 of Regulation D of the Act  to one accredited investor following such investor’s conversion of a  convertible promissory note. The per share conversion price of such shares was  US $0.002184, resulting in a conversion price of US $25,000.

On  December 20, 2010, the Company entered into one Regulation D Subscription  Agreement pursuant to which it sold and issued an aggregate of 25,000,000 shares  under Rule 506 of Regulation D of the Act to one accredited investor for the  aggregate purchase price of US $100,000.

On  January 4, 2011, the Company entered into one Regulation D Subscription  Agreement pursuant to which it sold and issued an aggregate of 25,000,000  shares under Rule 506 of Regulation D of the Act to one accredited investor for  the aggregate purchase price of US $100,000.

On  January 5, 2011, the Company completed the sale and issuance of 11,904,762  shares of its restricted common stock under Rule 506 of Regulation D of the Act  to one accredited investor following such investor’s conversion of a  convertible promissory note. The per share conversion price of such shares was  US $0.0021, resulting in a conversion price of US $25,000.

On  January 7, 2011, the Company completed the sale and issuance of 500,000 shares  of its restricted common stock under Rule 506 of Regulation D of the Act to one  accredited investor following such investor’s exercise of common stock purchase  warrants.  The per share exercise price  of such shares was US $0.00233, resulting in a purchase price of US $1,165.

On  January 12, 2011, the Company completed the sale and issuance of 1,428,572  shares of its restricted common stock under Rule 506 of Regulation D of the Act  to one accredited investor following such investor’s exercise of common stock  purchase warrants.  The per share  exercise price of such shares was US $0.00233, resulting in a purchase price of  US $3,328.

On  January 13, 2011, the Company completed the sale and issuance of 11,904,762  shares of its restricted common stock under Rule 506 of Regulation D of the Act  to one accredited investor following such investor’s conversion of a  convertible promissory note. The per share conversion price of such shares was  US $0.0021, resulting in a conversion price of US $25,000.

The Company completed the foregoing transactions in reliance upon the exemption from registration provided by Regulation D of the Act and the rules thereunder insofar as: (i) each of the investors was accredited within the meaning of Rule 501(a); (ii) the securities sold and issued were restricted by the Company in accordance with Rule 502(d); (iii) there were no more than 35 non-accredited investors in all of the transactions completed by the Company under Rule 506 within the six months preceding or following any of the transactions disclosed herein; (iv) the Company satisfied the information requirements set forth in Rule 502(b); and (v) none of the offers and sales were effected through any general solicitation or general advertising within the meaning of Rule 502(c).

The Company did not pay any commissions to third parties in connection with the foregoing transactions.

The Company has not sold any unregistered securities during the period  covered by this report other than those reported herein or 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. [REMOVED AND RESERVED]

ITEM 5. OTHER INFORMATION

None.

35

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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)                                                                                                                                                  
|10.25  | 2010-I Equity Compensation Plan(24)                                                                                                                                                           
|10.26  | 2010-II Equity Compensation Plan(25)                                                                                                                                                          
|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.     

36

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|(7)  | Filed as an exhibit to the Companys Current Report on
      Form 8-K filed on June 13, 2003.                       
|---- | --------------------------------------------------------------------------------------------------------------------
|(8)  | Filed as an exhibit to the Companys Registration
      Statement on Form SB-2 filed on May 19, 2004.               
|(9)  | Filed as an exhibit to the Companys Quarterly Report on
      Form 10-QSB filed on July 15, 2004.                  
|(10) | Filed as an exhibit to the Companys Registration
      Statement on Form S-8 filed on April 11, 2006.              
|(11) | Filed as an exhibit to the Companys Registration
      Statement on Form S-8 filed on March 31, 2006.              
|(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.           
|(24) | Filed as an exhibit to the Companys Registration
    Statement on Form S-8 filed on June 9, 2010.                  
|(25) | Filed as an exhibit to the Company’s Registration Statement on Form S-8 filed on December 2, 2010.                  

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

37

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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: July
      20, 2011 | /s/ Garry L.
      Anselmo                         
|                          | Garry L. Anselmo                                   
|                          | President, Chief Executive
      Officer (Principal
|                          | Executive Officer)                                 
|                          |                                                    
|                          |                                                    
|DATE: July
      20, 2011 | /s/ Donald Balletto                                
|                          | Donald Balletto                                    
|                          | Chief Financial Officer                            
|                          | (Principal Financial Officer)                      

38

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