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UNITED STATESSECURITIES AND EXCHANGE COMMISSIONWashington, D.C. 20549

FORM 10-KSB

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

For the fiscal year ended: November 30, 2007

OR

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

For the transition period from ____________ to ____________

Commission File Number0-12132

SILVERADO GOLD MINES LTD.(NAME OF SMALL BUSINESS ISSUER IN ITS CHARTER)

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

Issuer's telephone number: (800) 665-4646

Securities registered under Section 12(b) of the Exchange Act:
**None.**

Securities registered under Section 12(g) of the Exchange Act:
**Common Stock, no par value.**

|Title of each class        | Name of each exchange on which registered
|-------------------------- | -----------------------------------------
|Common Stock, no par value | None                                     

Check whether the issuer is not required to file reports pursuant
  to Section 13 or 15(d) of the Exchange Act. [   ]

Check whether the issuer (1) filed all reports required to be
  filed by Section 13 or 15(d) of the Exchange Act during the past 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 [   ]

Check if there is no disclosure of delinquent filers in response
  to Item 405 of Regulation S-B contained in this form, and no disclosure will
  be contained, to the best of registrants knowledge, in definitive proxy
  or information statements incorporated by reference in Part III of this Form
  10-KSB or any amendment to this Form 10-KSB. [   ]

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

State issuers revenues for its most recent fiscal year:
  $0

The aggregate market value of the voting and non-voting common
  equity held by non-affiliates computed by reference to the price at which the
  common equity was sold, or the average bid and asked price of such common equity,
  as of a specified date within the past 60 days: $58,663,794 as of February 21,
  2008.

The number of shares outstanding of each of the issuers
  classes of common equity, as of the latest practicable date: 926,270,430 common
  shares, no par value, outstanding as of February 21, 2008.

Documents Incorporated By Reference: None.

Transitional Small Business Disclosure Format (check one): Yes
  [   ]   No [X]

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PART 1

ITEM 1. DESCRIPTION OF BUSINESS.

FORWARD-LOOKING STATEMENTS

The information in this Annual Report on Form 10-KSB contains
  forward-looking statements within the meaning of Section 27A of the Securities
  Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934,
  as amended. These forward-looking statements involve risks and uncertainties,
  including statements regarding our 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 test mining activities
  and other factors. Forward-looking statements are made, without limitation,
  in relation to operating plans, property exploration activities, including test
  mining 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,
  will, should, expect,
  plan, intend, anticipate,
  believe, estimate, predict,
  potential, or continue, and 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 we file with the SEC. These factors may cause our actual results to
  differ materially from any forward-looking statement. We disclaim 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.

INTRODUCTION

Silverado Gold Mines Ltd. (Silverado or 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.

Silverado has committed over three decades of work to the exploration,
  development and test mining of gold properties throughout North America. In
  the mid-1980s, the Company decided to focus its efforts in Alaska. We have extensive
  experience in geological, geochemical and geophysical exploration techniques.
  Our mineral holdings are located in the Fairbanks Mining District and in the
  Koyukuk Mining District, consisting of both lode and placer mining claims. At
  the present time, our primary focus is the exploration and development of our
  Nolan Gold Project and our Hammond property 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.

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Silverado has been working for seven years through its Low-Rank
  Coal-Water Fuel (Green Fuel) division on the development of 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. In addition we look forward
  to our continued planning and progress designed to create a secondary fuel and
  other product facility designed to gasify and liquefy our green fuel to facilitate
  the creation of low cost rocket fuel, aviation fuel, gasoline, diesel fuel,
  synthetic natural gas, synthetic petrochemical feedstocks, hydrogen for
  fuel cells, plastic, fertilizers, explosives, urea, ammonia CO2 for enhanced
  recovery in oil well production as well as a host of other products, all free
  of sulphur, heavy metals and particulate matter.

CORPORATE ORGANIZATION

Silverado Gold Mines Ltd. was incorporated under the laws of
British Columbia, Canada in June 1963. Silverado operates in the United States
through its wholly owned subsidiaries, Silverado Gold Mines Inc., (incorporated
May 29, 1981) and Silverado Green Fuel Inc. (incorporated August 14, 2006). We
filed a transition application and notice of articles with the British Columbia
Registrar of Companies on April 20, 2004 in order to replace our former
memorandum adopted under the British Columbia Company Act and to alter our
current articles to the extent necessary to ensure compliance with the British
Columbia Business Corporations Act (the BC Business Corporations Act). The BC
Business Corporations Act came into force in British Columbia on March 29, 2004
and replaced the former British Columbia Company Act. The transition notice and
notice of articles was filed under the BC Business Corporations Act that
requires any British Columbia company incorporated under the former British
Columbia Company Act to effect transition under the BC Business Corporations Act
by filing with the British Columbia Registrar of Companies a transition
application and notice of articles within two years following the coming into
force of the BC Business Corporations Act.

Our exploration activities are managed and conducted by
affiliated companies, Tri-Con Mining Ltd. (Tri-Con) and Tri-Con Mining Inc.,
pursuant to written operating agreements. Each of Tri-Con, and Tri-Con Mining
Inc. are privately-owned corporations controlled by Garry L. Anselmo, who is our
president, chief executive officer, chief financial officer, and the chairman of
our board of directors.

MINERAL EXPLORATION BUSINESS

We are an exploration stage company. All of our properties are
presently in the exploration stage. We do not have any commercially viable
reserves on any of our properties. There is no assurance that a commercially
viable mineral deposit exists on any of our mineral properties. Further
exploration will be required before a final evaluation as to the economic and
legal feasibility of mining of any of our properties is determined. There is no
assurance that further exploration will result in a final evaluation that a
commercially viable mineral deposit exists on any of our mineral properties.

We hold interests in the following four groups of mineral
properties in Alaska:

| | 1. | Nolan Gold Project;
| | -- | -------------------

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| | 2. | Ester Dome Gold properties;
| | -- | ---------------------------
| | 3. | Hammond properties; and    
| | 4. | Eagle Creek properties.    

A description of our operations with respect to each of these
mineral properties is as follows:

1      Nolan Gold Project

The Nolan Gold Project consists of two areas of exploration and
development. The Nolan Placer Gold project involves exploration and development
of gold occurring in placer deposits such as stream channels or ancient remnants
of placer gold deposits. The second part of the project is the Nolan Lode Gold
Project. The lode gold project consists of exploration work designed to locate
bedrock structures or formations of bedrock which host gold and antimony
mineralization. The two facets of the Nolan Gold Project, complement each other,
as every stone or pebble in a placer deposit is a piece of rock eroded from some
near or distant bedrock formation, each gold nugget or grain of gold in a placer
deposit was originally part of a bedrock formation or structure with lode gold
mineralization. The search for a lode source is unraveling the sequences of
events that caused a placer deposit to form. During 2007, we removed scrap
materials and sealed the Swede Channel and Marys East portals as part of our
reclamation obligations with the Bureau of Land Management. During 2008, we will
continue to work on our reclamation obligations with the Bureau of Land
Management.

1.1   Swede Channel and Marys East bulk sampling
projects

The Swede Channel Placer Gold Deposit (Swede Channel)
is a glacial drainage perched several hundred feet above the Nolan Creek Valley.
During the ice age, a glacial event caused the Swede Gulch to rapidly erode a
deep, narrow water channel across earlier gold bearing river gravel deposits.
Erosion and transportation caused the gold bearing gravel to be re-concentrated
due to removal of the lighter gangue minerals, while much of the heavier gold,
along with boulders and coarse gravel common to a high energy drainage
environment, was deposited to the Swede Channel. Subsequent post glacial uplift
and erosion has established the present topography including the perched Swede
Channel location on the westerly flank of Smith Dome, and overlain by up to 100
feet of overburden making it an unidentifiable surface topographic
expression.

The Marys East Placer Gold Deposit (Marys East) is
located a few hundred yards northeast of the Swede Channel and directly east of
Marys Bench Placer Gold Deposit. Unlike the gold concentrations in the Swede
Channel, the placer gold in Marys East is concentrated in landslide material
that was deposited onto a bedrock shelf during the ice age.

There is no assurance that a commercially viable mineral
deposit exists on any of our mineral properties. Further exploration will be
required before a final evaluation as to the economic and legal feasibility of
mining of any of our properties is determined. There is no assurance that
further exploration will result in a final evaluation that a commercially viable
mineral deposit exists on any of our mineral properties.

1.1.1 Swede Channel and Marys East 2007 Work

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During the winter of 2006, Silverado re-opened the Swede portal
and continued with its underground exploration and development program on the
remaining sections of the Swede Channel until its completion by the middle of
January 2007. A total of 8,963 loose cubic yards (LCY) of gravel material was
stockpiled from the remaining Swede Channel.

In early January 2007, crews installed a portal into Marys
East, and began an underground drift into the Marys East deposit. The Marys
East project was completed at the end of March 2007 and 9,357 LCY of gravel
material was stockpiled from this project.

The 2006-2007 winter stockpile contained 18,320 LCY (Swede
Channel and Marys East combined) of gravel material, and was processed from
June through Julyof 2007 at the existing sluice plant location,
yielding 2,811.74 troy ounces of gold nugget gold and over 207 pounds of
concentrate that contained gold particles smaller than 1⁄4 inch in size. The fine
concentrate yielded 915.06 troy ounces of gold (30% gold), which when combined
with 2811.74 troy ounces of nugget gold recovered in 2007 totals 3726.80 troy
ounces. Also, the fine concentrates yielded 65.10 troy ounces of silver or 2.15%
silver.

The Swede channel and Marys East portals were both sealed
after completion of the underground bulk sampling projects. Both sites were
reclaimed in summer 2007 as required by the Bureau of Land Management.

1.2   Nolan Gold Project Exploration

1.2.1 Nolan Placer Gold Exploration

During March and April 2007, placer gold exploration focused on
drilling along the left limit of Nolan Creek to explore both north and south of
the Marys East and Swede Channel deposits. Further placer drilling was carried
out within the area between the Marys East/Swede Channel Deposits and the
Topnotch Prospect. A total of 130 drill holes were completed during that
drilling program with a total drill footage of 6,005 feet. The placer drilling
was performed by a drill contractor. Out of the 130 drill holes, 52 show the
presence of gold, ranging from 0.001 to 0.055 troy ounces of gold per bank cubic
yard (Toz/BCY). This placer drilling program discovered an entirely new zone of
placer gold which has been named Jack London Bench. Jack London Bench located
200 feet north-east of and 50 feet above the Marys East Bench.

The drill samples were processed on site by industry accepted
standard gravity methods.

1.2.2 Nolan Placer Gold Exploration 2008 Work Plan

The Company intends to carry out more placer drilling on Jack
London Bench and other benches along the left limit of Nolan Creek in 2008. The
drilling will be performed by a drill contractor. All of the targets are well
above the elevation of Nolan Creek.

The Company also intends to carry out placer drilling in the
Workmans Bench area, located near the confluence of Smith and Nolan Creek.
Workmans Bench was mined on a small scale during 1999-2000.

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Budget projections for this project are detailed under the
section Projected Annual Budget for 2008.

There is no assurance a commercially viable placer gold deposit
will be developed as a result of this drilling.

1.3   Nolan Lode Gold Exploration

1.3.1 Nolan Lode Gold Exploration

During 2007, exploration for a lode gold and antimony deposit
on the companys Nolan property focused on the Nolan Creek area within the
Solomon Shear Zone and the Fortress area. The Solomon Shear Zone is a five mile
long gold and antimony bearing shear zone, which is a possible source of placer
gold in the Nolan valley drainages, and bench deposits such as Swede Channel,
Marys East Bench, Marys Bench, Eureka Bench, and Workmans Bench.

The 2007 lode exploration program consisted of extensive ground
geochemical soil surveys and ground geophysical very low
frequency-electromagnetic (VLF-EM) surveys, extensive backhoe trenching and a
first phase diamond core drilling program to follow up on the significant
results achieved by backhoe trenching.

1.3.1.1 Nolan Creek Area

In May, June and July, the Company undertook an extensive
geochemical soil sampling campaign on the lower Smith Creek Dome hillside
between Archibald Creek and Smith Creek (the Hillside), and south of
Smith Creek in the lower western part of Midnight Dome. A total of 695 soil
samples were collected during the campaign on a 196.85 x 98.43 foot grid. All
soil samples were sent to ALS Chemex in Fairbanks for analysis. The assay
results of the soil sampling campaign show a distinct arsenic and antimony
anomalous trend on the eastern part of the Solomon Shear trend. Arsenic
anomalies are strong indicators for the presence of gold. The highest gold in
soil anomalies were found in the Pringle Bench area, north of Smith Creek. Here,
the Company undertook backhoe trenching and RC drilling in 2006 and discovered
16 antimony-quartz veins over a width of 192 feet. The Company undertook more
backhoe trenching and diamond core drilling at Pringle Bench in 2007 which is
described below in more detail.

Along with the soil sampling campaign, Silverado conducted an
extensive very low frequency - electromagnetic (VLF-EM) ground geophysical
survey on the lower Smith Creek Dome hillside between Archibald Creek and Smith
Creek, and south of Smith Creek in the lower western part of Midnight Dome, to
identify structures such as shear zones, faults, and veins that occur within the
bedrock. The VLF-EM survey successfully identified structural trends in the
Solomon Shear Zone that are overlain by arsenic, antimony and gold in soil
anomalies.

In June, July and August, the Company undertook backhoe
trenching on Pringle Bench and Workmans Bench. This program was followed up by
a first phase diamond core drilling program.

1.3.1.2 Pringle Bench

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Backhoe trenching and RC drilling on Pringle Bench in 2006
resulted in the discovery of 16 antimony veins over a width of 192 feet. Assay
results were as high as 0.83 ounces gold per ton and yielded antimony grades as
high as 46%. In 2007, the Company followed up on the significant results
achieved in 2006 and excavated six additional trenches, totaling 1296 feet, to
further investigate the gold bearing antimony-quartz veins previously identified
in 2006. A total of 153 combined continuous chip and select chip rock samples
were collected and sent to ALS Chemex in Fairbanks for analysis. Significant
gold values were found in all trenches which reached as high as 5.22 troy ounces
per ton (179 g/t). The antimony values yielded up to 64.76% .

Pringle Bench represents an area 500 feet wide by 700 feet long
and consists of a series of sub parallel gold bearing antimony-quartz veins.
Trenching successfully identified three lode zones that contain the gold bearing
antimony-quartz veins. The widths of the veins vary, from a quarter inch to
seven inches. Spacing of veins also varies, from a quarter inch to several feet.

Following up on the encouraging results achieved by backhoe
trenching, the company started a first phase drilling program at Pringle Bench
at the end of August 2007 using its own diamond core drill rig. Eleven drill
holes were drilled on Pringle Bench totaling 2,415 feet. The core drilling
program was designed to check for down-dip continuity of the gold bearing
antimony-quartz vein systems in the three zones identified so far. The core
drilling successfully confirmed the presence of stibnite (antimony) and quartz
veins at varying depths, with widths up to several inches.

All drill core was logged and photographed by Silverado
geologists. Once all technical data had been derived from the core, the core was
cut lengthwise. The half-core was sampled by pre-determined interval based on
geology, and placed in sealed sample bags labeled with the assigned sample
number. All samples were delivered to ALS Chemex in Fairbanks for analysis.A sample quality control/quality assurance program was
implemented.

As of November 30, 2007, assay results from the Pringle Bench
drilling program were still pending.

1.3.1.3 Workmans Bench

Workmans Bench is located near the confluence of Smith and
Nolan Creek. It is reported that during World War II about six tons of stibnite
ore (antimony) was mined from the Workmans Bench area.

In July 2007, the Company excavated one trench in the old
Workmans Bench pit with a total length of 125 feet. This trench exposed the
largest antimony veins discovered in the Nolan Creek area to that date, with
widths up to 10 inches. A total of 15 continuous chip samples were collected and
sent to ALS Chemex in Fairbanks for analysis. Significant gold values were found
in the Workmans Bench trench which reached as high as 0.12 troy ounces per ton
(4.17 g/t). The antimony values yielded up to 30.30% .

A first phase exploration drilling program on Workmans
  Bench using the Companys own diamond core drill rig started at the end
  of August 2007 and ended on October 23, 2007 due to weather conditions. Seven
  drill holes were drilled totaling 2,140 feet. This drilling program was designed
  to check for down-dip continuity of the gold bearing antimony-quartz veins previously
  discovered. Visual observation of the drill core had identified the presence
  of many antimony-quartz and quartz veins with varying widths up to one foot.
  The majority of these veins were found to be contained in an 80 foot wide zone.

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All drill core was logged and photographed by Silverado
geologists. Once all technical data had been derived from the core, the core was
cut lengthwise. The half-core was sampled by pre-determined interval based on
geology, and placed in sealed sample bags labeled with the assigned sample
number. All samples were delivered to ALS Chemex in Fairbanks for analysis.A sample quality control/quality assurance program was
implemented.

As of the date of this filing, assay results from the Workmans
Bench drilling program were still pending.

At the end of November, the Company started to drive a tunnel
into the Workmans Bench mineralized zone to intersect the 80 feet wide zone
that contains the gold bearing antimony-quartz veins. The Company intends to
collect a bulk sample from the mineralized zone for metallurgical test work. The
underground exposure of the mineralized zone will play an important key role for
the Company in obtaining a better understanding of the nature of the
structurally controlled gold and antimony mineralization in the Solomon Shear
Zone. This will significantly support Silverados exploration strategy.

1.3.1.4 Fortress Area

The Fortress area is located 2 miles northeast of Nolan camp
and north of Smith Creek Dome. This area exposes several outcropping
northwest-striking quartz veins, some of which contain significant gold
mineralization. The Company investigated the Fortress area in late summer 2007
and collected several quartz vein samples and confirmed anomalous gold
concentrations in vein samples.

Based on the very encouraging results, the Company conducted a
VLF-EM ground geophysical survey along with a ground geochemical soil survey
over the central part of the Fortress area. A total of 290 soil samples were
collected on a regular grid during the campaign. All soil samples were sent to
ALS Chemex in Fairbanks for analysis.

The VLF-EM survey revealed two east-west trending fault zones
that are overlain by strong arsenic and gold in soil anomalies, which are up to
over 1,500 feet in length. Arsenic is a strong indicator for the presence of
gold mineralization. The Company strongly believes that the formation of the
northwest striking gold-bearing quartz veins was controlled by east-west
trending deformation zones, as evidenced for other areas in the southern Brooks
Range. The VLF-EM ground geophysical survey along with the ground geochemical
soil survey conducted in the Fortress area, confirmed the presence of the
gold-bearing antimony quartz vein system on the Saddle, as part of the Solomon
Shear trend, in the southern part of the Fortress area. The VLF-EM survey
revealed two northeast trending deformation zones of which the southern
deformation zone is overlain by strong antimony and arsenic in soil
anomalies.

The two different striking gold-bearing vein systems that occur
in the Fortress area along with defined structural trends overlain by gold,
antimony and arsenic anomalies make the Fortress area an exciting lode gold
exploration target in addition to the Nolan Creek lode gold targets

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1.3.2 Nolan Lode Gold Exploration 2008 Work Plan

During 2008, lode exploration work will consist ground
geochemical soil sampling, VLF-EM ground geophysical surveying, trenching and
drilling in the five mile long gold and antimony mineralization containing
Solomon Shear Zone and the gold mineralization containing Fortress area.

Hillside: A minimum of eight trenches will be excavated
to expose the underlying bedrock in areas which have yielded encouraging results
from geologic, geochemical and geophysical investigations. The trenches will be
mapped and sampled in detail. This information will be integrated and useful in
the selection targets for lode exploration drilling. Once trenching sample data
has been analyzed and integrated with existing data, a series of drill holes
will be drilled to identify bedrock structures and any associated mineralized
bedrock formations. A minimum of 20 drill holes are planned for the hillside.
Drilling will be performed with the companys own diamond core drill rig.

Pringle Bench: A minimum of two trenches and minimum of
20 diamond core drill holes are planned for the Pringle Bench area to further
investigate the gold bearing antimony-quartz vein systems in the three zones
identified so far. Pringle Bench represents an area 500 feet wide by 700 feet
long. Drilling will be performed with the companys own diamond core drill rig.

Workmans Bench: A minimum of 20 diamond core drill
holes are planned for the Workmans Bench area to further investigate the gold
bearing antimony-quartz vein systems in the mineralized zone identified so far.
It is further planned to continue tunneling into the Workmans Bench mineralized
zone to intersect the 80 foot wide zone that contains the gold bearing
antimony-quartz veins. The Company intends to collect a bulk sample from the
mineralized zone for metallurgical test work. The underground exposure of the
mineralized zone will play an important key role for the Company in obtaining a
better understanding of the nature of the structurally controlled gold and
antimony mineralization in the Solomon Shear Zone. This will significantly
support Silverados exploration strategy

Fortress Area: More geochemical soil sampling along with
a VLF-EM ground geophysical survey is planned for the Fortress area. The Company
also plans to excavate a minimum of three trenches and plans to drill a minimum
of 10 drill holes to investigate the two east-west trending fault zones that are
overlain by strong arsenic and gold in soil anomalies, which are up to over
1,500 feet in length.

All laboratory analytical work will be performed by an outside
certified assay laboratory. Samples from all areas are carefully collected and
transported under a chain of custody system to ensure sample integrity. Sample
splits are retained by the Company for verification and additional testing, if
necessary. The total amount of lode exploration drilling performed during 2008
will be determined early in the year, and are contingent on funding availability
and the quantity and extent of drill targets developed during the trenching
phase of the program.

Budget projections for this project are detailed under the section
  Projected Annual Budget for 2008.

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There is no assurance that a commercially viable lode gold bearing
  mineral deposit exists on the Nolan Gold Project. Further exploration will be
  required before sufficient information is available to determine the presence
  of a lode gold deposit at Nolan. Even if a lode gold occurrence exists on the
  property, there is no assurance that it would be economically feasible as an
  ore deposit.

2      Ester Dome Property

2.1   Ester Dome Property 2007 Work

The properties comprising our Ester Dome gold project are
discussed in detail under the heading Description of Properties in this annual
report. In recent years, all exploration trenches were backfilled, stabilized,
and seeded to resist surface erosion. Annual assessment work for 2008 was
completed and all claim rental payments were made to maintain the property in
good standing. Fairbanks North Star Borough 2007 taxes were paid on the mill
facility and mine facilities in the sum of $8,535.42.

2.2   Ester Dome Property 2008 Work Plan

During 2008, we plan to continue work toward completion of the
closure of the Grant Mill Tailings Pond. This pond, which is filled to capacity
with tailings, will be capped and decommissioned after a final approval of the
tailings pond closure plan is received from the Alaska Department of
Environmental Conservation (ADEC). We also plan to continue reclamation work
on our Ester Dome holdings during 2008.

Several large-scale projects have been proposed over the past
ten years, but shelved either as a result of poor market conditions or due to
internal decisions to favor shifting financial and manpower resources to the
Nolan Project. One project that remains under consideration is environmentally
friendly bio-degradable urea heap leaching of crushed and agglomerated gold ore
after coarse gold has been recovered from the crushed ore by conventional
gravity and water methods. A second project that continues under study involves
mining of the O'Dea structure by underground methods. All past mining stopped at
the 200 foot level of the workings, which is just above the water table. Close
spaced diamond drilling between the 200 foot and 1,000 foot levels prove the
existence of several significant high grade ore shoots within the ODea breccia
zone.

3      Hammond Property

3.1   Hammond Property 2007 Work

The placer claims comprising our Hammond property are discussed
in detail under the heading Description of Properties in this annual report.
During 2007, rental payments were made to keep the mining claims in good
standing.

3.2   Hammond Property 2008 Work Plan

RC placer drilling in 1995 and 2006 identified a channel
containing placer gold that extends for a length of over 1,800 feet. The
channel, named the Slisco Channel, remains open to the southeast and there is
evidence of one or more tributary channels that remain to be explored in the
near future. Within the Slisco Channel, the placer gold occurs on bedrock and on
a second horizon about 20 feet above the bedrock channel.

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The higher placer gold values in both pay layers are located
within the left limit of the Slisco Channel. In addition to the encouraging
drill results to date, the potential of extending the channel to the southeast
plus the possibility of discovering gold bearing tributary channels, make this a
prospect for additional discoveries. During the summer of 2008, a series of
drill holes will be completed to explore for the extension of the Slisco Channel
to the south. Presently, it has been traced for 1,800 feet. The drill program
will also seek to define any gold bearing tributaries to the Slisco Channel.

This project may require the Company to secure additional
funding. Even if funding is acquired, there is no guarantee 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 guarantee that the deposit will be
profitable to mine.

4      Eagle Creek Property

The properties comprising our Eagle Creek property are
discussed in detail under the heading Description of Properties in this annual
report. During 2007, annual assessment work was completed on the property, and
rental payments were made to keep the mining claims in good standing.

4.1   Eagle Creek Property 2008 Work Plan

During 2008, annual assessment work will be completed on the
property to keep the mining claims in good standing. Assessment work will be
focused on the northwest part of the claim block, where drilling and trenching
has defined an intrusive host rock, thought to be a sill, containing low grade
gold, silver and antimony mineralization. If funding permits, the company will
design a trenching and drilling program to further investigate the gold and
byproduct mineral distribution of the intrusive. Additional work which includes
trenching and drilling will also be completed on the Number One Vein. The Number
One Vein was the lode quartz gold structure which has been mined commercially
for antimony. The drilling will be performed by a drill contractor.

Completing the 2008 work plan will be contingent on available
funding. Even if funding becomes available, there is no assurance that a
commercial gold-silver-antimony deposit will be defined. 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.

2008 Exploration Budget

Projected Annual Budget for Fiscal Year 2008

Nolan Gold Project

|Drilling and Exploration Program - Nolan
      Gold Project | $ | 3,000,000 | 
|----------------------------------------------------------- | - | --------- | 
|Underground mining Program - Nolan Gold Project             |   | 2,000,000 | 
|Total Costs for the Nolan Gold Project                      |   | 5,000,000 | 
|Total Costs for the Eagle Creek Project                     |   | 500,000   | 

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|Total Costs for the Ester Dome Project |   | 500,000   | 
|-------------------------------------- | - | --------- | 
|Total Costs for the Hammond Project    |   | 50,000    | 
|Administration  All Projects          |   | 500,000   | 
|Total Budget All Projects              | $ | 6,550,000 | 

Completion of all of the projects described in the 2008 work
plan may be contingent on additional funding. There is no assurance that
additional funding, if required will be obtained. Even if the additional funding
is obtained, there is no assurance that a commercial ore deposit will be
developed. Revenues from any anticipated gold sales may be insufficient to cover
the costs of the gold recovery.

LOW-RANK COAL-WATER FUEL BUSINESS

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

We entered the fuel sector in 2000 by forming a new Fuel
Technology division which operates out of Fairbanks, Alaska. This division of
the business is operated by our wholly owned subsidiary, Silverado Green Fuel
Inc., under the supervision of Dr. Warrack Willson, Vice-President of Fuel
Technology. The fuel product is called low-rank coal-water fuel (LRCWF or Green
Fuel), which is a low-cost, non-toxic, non-hazardous alternative to oil fuels
used in commercial boilers for the production of electricity and industrial
heat. As a liquid fuel Green Fuel enjoys all the benefits of liquid handling and
storage, Green Fuel allows coal to be used sight unseen and is made from coal,
Americas most abundant fossil energy resource. This fuel is produced by the
fine grinding of low-rank coal, and subsequent hydrothermal treatment of the
finely ground coal particles. Hydrothermal treatment (HT) is an advanced
technology, featuring moderate temperature/pressure, non-evaporative treatment
or hot water drying, which irreversibly removes most of the inherent moisture
from low-rank coal and allows the formulation of commercially viable LRCWFs. HT
is similar in many respects to pressure cooking, and the product retains all of
the desirable combustion characteristics of low-rank coal. When Green Fuel is
injected into a boiler, the particles ignite and burn rapidly, which leads to
little or no boiler de-rating when substituted for oil. We believe that demand
for the Green Fuel and its production and utilization technology exists because
of the high cost of oil and the desire for economical alternatives to oil that
are environmentally friendly.

On December 18, 2006, Silverado Green Fuel Inc. announced the
signing of a Memorandum of Understanding (MOU) between Choctaw County, the
Choctaw County Economic Development District, the Mississippi Development
Authority (MDA) and Silverado Green Fuel Inc. The MOU is an agreement to build
the countrys first Low-Rank Coal-Water fuel commercial demonstration plant at
the Red Hills Ecoplex just outside of Ackerman, MS. It is anticipated that the
$26 million Silverado Green Fuel Demonstration Project will be located on a
14-acre site, and is being designed to utilize the state's vast supply of
low-rank coal reserves by converting them into green fuel, a new form of
coal-based, environmentally friendly, low-cost, alternative fuel.

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Under the terms of the MOU, Choctaw County Economic Development
District will provide Silverado Green Fuel Inc. a 14 acre site at the Ecoplex.
Choctaw County will clear the site in preparation for construction. The County
has also agreed to construct the plant facility building based on Silverados
specifications. The MDA will provide for the infrastructure through a series of
grants. Silverado Green Fuel Inc. will provide the proprietary technology
developed by Dr. Warrack Willson. Silverado will run the facility, which is
expected to produce hundreds of jobs during the construction phase and 45
permanent jobs.

During late May of 2007, Silverado environmental staff met in a
pre-permitting meeting with representatives of the Mississippi Department of
Environmental Quality (MDEQ). At that meeting all the various sections of MDEQ
that would be involved in the permitting of the Green Fuel industrial process
were present, representatives of these sections were assigned to our project,
and the lead MDEQ regulator that will serve as our point-of-contact was
designated.

As we await full funding of the project, preliminary work on
aspects of the various permits involved will continue during fiscal 2008. The
development of an Environmental Management System (EMS) that was initiated in
2007 upon the signing of the MOU will also continue during fiscal 2008.
Silverado has also agreed to fund a study by the University of Alaska Fairbanks
of the chemical and physical characteristics of Mississippi lignite coal, and it
is anticipated that that study will commence during fiscal 2008.

GOVERNMENT REGULATION

Our Nolan Gold Project and Hammond River project are comprised
of non-patented federal mining claims located on federal land managed by the
U.S. Bureau of Land Management (BLM). Our exploration activities on these
projects are carried out under a BLM-approved plan of operations obtained
through the State of Alaska's Department of Natural Resources (ADNR) Alaska
Placer Mining Application (APMA) process. This process subjects our work plans
to a multi-agency analysis that determines plan compliance and stipulations in
accordance with the following non-exhaustive list of principal laws and
regulations:

| | 1.  | General Mining Law of 1872, as amended,                                                                 
| | --- | --------------------------------------------------------------------------------------------------------
| | 2.  | Federal Land Policy and Management Act of 1976,                                                         
| | 3.  | Alaska National Interest Lands Conservation Act of 1980,
      as amended,                              
| | 4.  | Executive Order 11988 of 1977, as amended -
      Floodplains                                           
| | 5.  | Executive Order 11990 of 1977 - Protection of
      Wetlands,                                           
| | 6.  | Endangered Species Act of 1973, as amended,                                                             
| | 7.  | Antiquities Act of 1906,                                                                                
| | 8.  | National Historic Preservation Act of 1966, as
      amended,                                           
| | 9.  | Archaeological Resources Protection Act (ARPA) of
      1979,                                           
| | 10. | Clean Air Act, as amended,                                                                              
| | 11. | Clean Water Act of 1977,                                                                                
| | 12. | Resource Conservation and Recovery Act (RCRA) of 1976
      (Solid Waste Disposal Act), as amended,     
| | 13. | Comprehensive Environmental Response, Compensation and
      Liability Act (CERCLA) of 1970, as amended,
| | 14. | 40 Code of Federal Regulations Subparts 110 and 112,
      and                                          
| | 15. | 43 Code of Federal Regulations Subparts 3809 and
    3715.                                              

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The ADNR also distributes our APMAs for review and/or approval
by other agencies, including the Alaska Department of Environmental Conservation
(ADEC), Alaska Department of Fish and Game (ADFG), the State Historic
Preservation Office (SHPO), U.S. Environmental Protection Agency (EPA), and
the U.S. Army Corps of Engineers (COE).

Our 2007 exploration activities on the Nolan Gold Project are
being carried out under a BLM-approved plan of operations, and a comprehensive
multi-year APMA for operations that we propose to undertake during the period of
2008 - 2010 was submitted during November of 2007.

We post an annual reclamation bond in the amount required by
the laws of the State of Alaska for each acre of proposed disturbance that
exceeds reclaimed acreage. We have currently posted the appropriate bonding, and
as a matter of company policy have endeavored for many years to conduct an
ongoing program of reclamation of surface disturbances as soon as practicable
upon the conclusion of work in any particular area.

Nolan Creek is one of only seven freshwater waterways in the
State of Alaska legally classified with a primary categorization as an
industrial water supply (State of Alaska 18 AAC 70.230(e)(13)) . This
classification does not relieve us from our various permit obligations, but
nonetheless serves to place our industrial diversions of fresh water ahead of
other potential uses that could be conceived of for Nolan Creek.

We hold several EPA National Pollutant Discharge Elimination
System (NPDES) permits for the major creeks and streams of the project. In the
event of any discharge we are required to monitor "background" streamflow and
the subject discharge, and through comparison demonstrate our compliance with
EPA permit conditions regarding turbidity, suspended solids, and heavy metals.
Although we submit annual Discharge Monitoring Reports (DMRs) to the EPA, it
should be noted that we maintain a closed-circuit, zero-discharge recycling pond
system that serves all our Nolan Gold Project placer gold recovery operations.

Our exploration program's industrial activities are also
regulated by the federal Mine Safety and Health Administration (MSHA). This
agency's inspectors periodically visit our project to monitor the health and
safety of our workers, and to inspect our equipment and installations for
compliance with various MSHA regulatory requirements. All of our workers have
completed MSHA safety training and are required to complete annual MSHA
refresher courses. A designated company safety officer for the project is also
on site at all times.

Our Nolan Gold Project placer claim holdings are comprised of
  199 contiguous unpatented federal placer mining claims located within the Nolan
  and Hammond River drainage systems. Silverado also holds 2 unpatented federal
  placer mining claims located on Marion Creek and 5 unpatented federal placer
  mining claims located on Clara Creek. Both Clara and Marion Creeks are left
  limit tributaries to the Middle Fork of the Koyukuk River. The Clara Creek and
  Marion Creek claims are located approximately 1.5 and 3 miles north of Coldfoot,
  Alaska, respectively, and are situated near the Dalton Highway. Silverado is
  the registered owner of all 206 placer claims. Over the years Silverado has
  conducted operations on this property entitled: the Nolan Deep Channel, Smith
  Creek, Thomsons Pup, Marys Bench, Swede Channel, Marys East,
  Archibald Creek, Marys East, Workman's Bench, Upper Nolan Creek, Dolney
  Bench, West Block, "3B1" on Nolan Creek, and Eureka Bench, et al. The main block
  of contiguous Nolan Placer claims cover approximately 6 square miles of creeks
  and fluvial terraces and uplands.

- 14 -

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Of these claims, the Thomsons Pup claims consist of 6
unpatented federal placer claims registered in the name of Silverado Gold Mines
Inc. Our ownership in these claims is subject to a royalty of 3% of net profits
on 80% of production payable to Frank Figlinski and Lyle R. Carlson.

Our Ester Dome Project is comprised of fifty-two (52)
unpatented state mining claims and one (1) federal non-patented mining claim.
State claims are managed by the State of Alaska. Federal claims are managed by
the Bureau of Land Management. Our exploration and mining activities on these
lands are carried out under approved plans of operations obtained through the
ADNRs APMA process. This process subjects our work plans to a multi-agency
analysis that determines plan compliance and stipulations in accordance with the
non-exhaustive list of principal laws and regulations given above at the head of
this section. The claims which contain the Grant Mill facility, support
structures and offices, are located inside the Fairbanks North Star Borough
(FNSB) and are subject to annual tax assessments. During 2007, property taxes
were paid to the FNSB in the amount of $ 8,535.42.

Our Eagle Creek Property is comprised of seventy-seven (77)
state non-patented mining claims. State claims are managed by the State of
Alaska. Our exploration and mining activities on these lands are carried out
under approved plans of operations obtained through the ADNRs APMA process.
This process subjects our work plans to a multi-agency analysis that determines
plan compliance and stipulations in accordance with the non-exhaustive list of
principal laws and regulations given above at the head of this section.

COMPETITION

We are a mineral resource exploration company. We compete with
other mineral resource exploration companies for financing and for the
acquisition of new mineral properties. Many of the mineral resource exploration
companies with whom we compete have greater financial and technical resources
than those available to us. Accordingly, these competitors may be able to spend
greater amounts on acquisitions of mineral properties of merit, on exploration
of their mineral properties and on development of their mineral properties. In
addition, they may be able to afford more geological expertise in the targeting
and exploration of mineral properties. This competition could result in
competitors having mineral properties of greater quality and interest to
prospective investors who may finance additional exploration. This competition
could adversely impact on our ability to finance further exploration and to
achieve the financing necessary for us to develop our mineral properties.

EMPLOYEES

We do not have any employees. Our operating and administrative
activities are carried out through our agreement with the Tri-Con Mining Group.

RESEARCH AND DEVELOPMENT EXPENDITURES

We have spent the following amounts on research and development
activities during the past two fiscal years:

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|                         | December 1, 2006     | December 1, 2005    
|------------------------ | -------------------- | --------------------
|                         | to November 30, 2007 | to November 30, 2006
|Research and Development |                      |                     
|Expenditures:            | $34,313              | $129,698            

Research and development activities were primarily attributable
to the pursuit of the development of our Green Fuel business. During 2004 and
2005, the majority of the research and development costs attributable to the
low-rank coal-water fuel technology related to further technical work on the
fuel creation temperature and the preparation of a United States grant
application.

ENFORCEABILITY OF CIVIL LIABILITIES

Our headquarters are located in, and our officers and directors
are residents of, Canada. Further, some of our assets are, or may be, located
outside the United States. Accordingly, it may be difficult for investors to
effect service of process within the United States on us or our officers and
directors, or to enforce against them judgments obtained in United States courts
predicated upon the civil liability provisions of the United States federal
securities laws. There is also uncertainty as to both an investors ability to
enforce, in an appropriate foreign court, judgments of United States courts
based upon the civil liability provisions of the United States federal
securities laws, and an investors ability to bring an original action in an
appropriate foreign court to enforce liabilities against us or any person based
upon the United States federal securities laws. If investors have questions with
respect to these issues, they should seek the advice of their legal counsel.

ITEM 1A. RISK FACTORS

We face risks in completing our exploration plans and
achieving revenues. The following risks are material risks that we face. If any
of these risks occur, our business, our ability to achieve revenues, our ability
to produce gold, our operating results and our financial condition could be
seriously harmed.

If we do not obtain new financings, the amount of funds
available to us to pursue exploration activities at the Nolan Gold Project and
to pursue further exploration of our mineral properties will be reduced.

We have relied on recent private placement financings in order
to fund exploration of the Nolan Gold Project. We will continue to require
additional financing to complete our plan of operations for exploration work at
the Nolan Gold Project and to carry out our exploration programs on our other
mineral properties. While our financing requirements may be reduced through gold
recoveries, any impairment in our ability to raise additional funds through
financings would reduce the available funds for the exploration of the Nolan
Gold Project, including additional test mining activities, with the result that
our plan of operations may be adversely affected and potential recoveries
reduced or delayed.

As we have not reported revenues in our last three fiscal
years there is no assurance that we will be able to achieve the financing
necessary to enable us to proceed with our exploration activities, including
test mining activities.

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We had working capital of $1,759,774 as of November 30, 2007.
We did not report revenues in our last three fiscal years ended November 30,
2007, 2006 or 2005. Our plan of operations calls for expenditures of a minimum
of $6,550,000 to be incurred by us over the next twelve months in order to
continue our mining exploration activities at the Nolan Gold, Ester Dome, Eagle
Creek and Hammond Projects. While we will apply proceeds from gold sales
generated from our test mining activities to cover our exploration expenditures,
we anticipate that proceeds from gold sales over the next twelve months may not
exceed our projected expenditures during this period with the result that we
will require substantial financing in order for us to pursue our plan of
operations. If we do not achieve the necessary financing, then we will not be
able to proceed with our planned exploration activities, including our planned
test mining activities, and our financial condition, business prospects and
results of operations will be materially adversely affected.

As we have not established that there are any commercially
viable mineral deposits on our Nolan property and we have not established
commercially viable operations on the Nolan Gold Project, there is no assurance
that any amounts we recover from test mining activities on the Nolan Gold
Project will exceed the costs of recovering this gold.

Our activities at the Nolan Gold Project are in the exploration
stage. While we have undertaken test mining activities at the Nolan Gold Project
as part of our exploration programs, we have not yet established a commercially
viable operation on our Nolan Gold Project. Further, we have historically
attempted to mine the placer gold deposits at the Nolan Gold Project without
obtaining sufficient drilling and sampling information to meet data density
standards commonly used by commercial-sized placer mining companies. We may
continue with test mining activities at the Nolan Gold Project without
establishing that the placer deposits contain commercially viable mineral
deposits. As we may proceed with these activities without first establishing
that the placer deposits contain commercially viable mineral deposits, there is
no assurance that we will recover quantities of gold that will enable us to
achieve sales of gold that will exceed our costs of recovering the gold. In this
event, our costs of exploration will exceed any amount recovered from test
mining activities that we carry out as part of our exploration program on the
Nolan Gold Project.

If we are unable to achieve projected gold recoveries from
our test mining activities at the Nolan Gold Project, then our financial
condition will be adversely affected and we will have less cash with which to
pursue our operations.

We plan to undertake test mining activities as part of our
exploration program for the Nolan Gold Project. Our objective is to recover gold
from test mining activities to offset the exploration cost of our test mining
activities. As we have not established any reserves on this property, there is
no assurance that actual recoveries of gold from material mined during test
mining activities will equal or exceed our exploration costs. If gold recoveries
are less than projected, then our gold sales will be less than anticipated and
may not equal or exceed the cost of exploration and recovery in which case our
operating results and financial condition will be adversely affected.

If the price of gold declines, our financial condition and
ability to obtain future financings will be impaired.

- 17 -

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Our business is extremely dependent on the price of gold. Our
recoveries from sales of gold for the current fiscal year are dependent on the
price of gold in addition to the quantity of gold that we are able to recover.
If gold prices decline prior to the recovery and sale of gold from the Nolan
Gold Project, then our recoveries from sales of gold and financial condition
will be adversely impacted. We have not undertaken any hedging transactions in
order to protect us from a decline in the price of gold. A decline in the price
of gold may also decrease our ability to obtain future financings to fund our
planned exploration programs activities.

The price of gold is affected by numerous factors, all of which
are beyond our control. Factors that tend to cause the price of gold to decrease
include the following:

|(a) | Sales or leasing of gold by governments and central
      banks;                                                                                                              
|--- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|(b) | A low rate of inflation and a strong US dollar;                                                                                                                               
|(c) | Speculative trading;                                                                                                                                                          
|(d) | Decreased demand for golds industrial, jewellery and
      investment uses;                                                                                                  
|(e) | High supply of gold from production, disinvestment, scrap
      and hedging;                                                                                                  
|(f) | Sales by gold producers and foreign transactions and
      other hedging transactions;                                                                                        
|(g) | Devaluing local currencies (relative to gold price in US
      dollars) leading to lower production costs and higher production in
      certain major gold producing regions.

If costs of gold recovery at our Nolan Gold Project are
higher than anticipated, then our financial condition and ability to pursue
additional exploration will be adversely affected.

We have proceeded with test mining activities on the Nolan Gold
Project on the basis of estimated capital and operating costs. If capital and
operating costs are greater than anticipated, then cash used in test mining
activities at the Nolan Gold Project will be greater than anticipated. Increased
cash used in test mining activities will cause us to have less funds for other
expenses, such as administrative and overhead expenses and exploration of our
other mineral properties and further test mining activities on the Nolan Gold
Project. In this event, our financial condition will be adversely affected and
will have fewer funds with which to pursue our exploration programs.

If our exploration costs are higher than anticipated, then
our financial condition and ability to pursue additional exploration will be
adversely affected.

We are currently proceeding with exploration of our mineral
properties on the basis of estimated exploration costs. This exploration program
includes drilling programs at various locations within the Nolan Gold Project.
If our exploration costs are greater than anticipated, then we will have fewer
funds for our exploration activities, including test mining activities that we
plan to carry out at our Nolan Gold Project, and for our general and
administrative expenses. In this event, our financial condition will be
adversely affected, our losses will increase and we will have fewer funds with
which to pursue our exploration programs. Factors that could cause exploration
costs to increase include adverse weather conditions, difficult terrain and
shortages of qualified personnel.

Exploration activities, including test mining and operating
activities are inherently hazardous.

Mineral exploration activities, including test mining
activities, involve many risks that even a combination of experience, knowledge
and careful evaluation may not be able to overcome.

- 18 -

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Operations that we undertake will be subject to all the hazards
and risks normally incidental to exploration, test mining and recovery of gold
and other metals, any of which could result in work stoppages, damage to
property and possible environmental damage. The nature of these risks are such
that liabilities might result in us being forced to incur significant costs that
could have a material adverse effect on our financial condition and business
prospects.

There is no assurance that any of our mineral resources will
ever be classified as reserves under the disclosure standards of the Securities
and Exchange Commission.

This annual report discusses our mineral resources in
accordance with Canadian National Instrument 43-101, as discussed under the
section of this annual report entitled Description of Properties.
Resources are classified as measured resources, indicated resources
and inferred resources under NI 43-101. However, U.S. investors are
cautioned that the United States Securities and Exchange Commission does not
recognize these resource classifications. There is no assurance that any of our
mineral resources will be converted into reserves under the disclosure standards
of the United States Securities and Exchange Commission. Further, inferred
resources have a great amount of uncertainty as to their existence, and
economic and legal feasibility. It cannot be assumed that all or any part of an
inferred mineral resource will ever be upgraded to a higher category. Under
Canadian rules, estimates of inferred mineral resources may not form the basis
of feasibility or pre-feasibility studies, except in rare cases. Investors are
cautioned not to assume that part or all of an inferred resource
exists, or is economically or legally mineable.

If we experience exploration accidents or other adverse
events at our Nolan Gold Project, then our financial condition and profitability
could be adversely affected.

Our exploration activities, including test mining activities,
at the Nolan Gold Project are subject to adverse operating conditions.
Exploration accidents or other adverse incidents, such as cave-ins or flooding,
could affect our ability to continue test mining activities at the Nolan Gold
Project. A particular concern at the Nolan Gold Project is warm temperatures
that can reduce the winter season during which we can safely conduct underground
test mining activities. The occurrence of any of these events could cause a
delay in production of gold or could reduce the amount of gold that we are able
to recover, with the result that our ability to achieve recoveries from gold
sales and to sustain operations would be adversely impacted. Adverse operating
conditions may also cause our operating costs to increase. Exploration accidents
or other adverse events could also result in an adverse environmental impact to
the land on which our operations are located with the result that we may become
subject to the liabilities for environmental clean up and remediation.

If we become subject to increased environmental laws and
regulation, our operating expenses may increase.

Our exploration activities, including test mining activities,
are regulated by both US Federal and State of Alaska environmental laws that
relate to the protection of air and water quality, hazardous waste management
and mine reclamation. These regulations may impose operating costs on us. If the
regulatory environment for our operations changes in a manner that increases
costs of compliance and reclamation, then our operating expenses would increase
with the result that our financial condition and operating results would be
adversely affected.

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Because of the speculative nature of exploration of mineral
properties, there is no assurance that our exploration activities will result in
the discovery of new commercially exploitable quantities of minerals or that we
will be able to establish proven and probable reserves as a result of our
exploration.

We plan to continue exploration on our mineral properties. The
search for valuable minerals as a business is extremely risky. We can provide
investors with no assurance that additional exploration on our properties will
establish that additional commercially exploitable reserves of gold exist on our
properties. Problems such as unusual or unexpected geological formations or
other variable conditions are involved in exploration and often result in
exploration efforts being unsuccessful. The additional potential problems
include, but are not limited to, unanticipated problems relating to exploration
and attendant additional costs and expenses that may exceed current estimates.
These risks may result in us being unable to establish the presence of
commercial exploitable quantities of ore on our mineral claims with the result
that our ability to fund future exploration activities may be impeded

As we face intense competition in the exploration industry,
we will have to compete with our competitors for financing and for qualified
managerial and technical employees.

The exploration industry is intensely competitive in all of its
phases. Competition includes large established exploration companies with
substantial capabilities and with greater financial and technical resources than
we have. As a result of this competition, we may be unable to acquire additional
attractive mining claims or financing on terms we consider acceptable. We also
compete with other exploration companies in the recruitment and retention of
qualified managerial and technical employees. If we are unable to successfully
compete for financing or for qualified employees, our exploration programs may
be slowed down or suspended.

Our business venture into the low rank coal water fuel
business is subject to a high risk of failure.

Our business venture into the low rank coal water fuel technology
  business is at a very early stage and is subject to a high risk of failure.
  The low rank coal water fuel technology has not been proven by us to be a commercially
  viable fuel alternative. In order to establish commercial viability, we will
  have to undertake the construction and operation of the contemplated demonstration
  facility. The construction and three year operation of the demonstration facility
  would cost approximately $26 million. Even if the demonstration facility were
  constructed and operational, there is no assurance that the commercial viability
  of this process would be established or that we would be able to expand the
  facility into a commercially viable operation or to generate revenues from this
  technology. We are pursuing funding from the United States federal and state
  governments and from private sources to fund the construction of the demonstration
  facility. There is no assurance that we will succeed in obtaining government
  or private funding for this project. Even if funding is obtained and the demonstration
  facility constructed, there is no assurance that we would be able to generate
  profits or revenues from the operation of the demonstration facility.

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ITEM 2. DESCRIPTION OF PROPERTY

Our head office is located at Suite 1820, 1111 West Georgia Street,
  Vancouver, British Columbia, Canada V6E 4M3. These premises are comprised of
  approximately 4,752 square feet and are leased for a term expiring in July 2014.

Our four groups of mineral properties located in Alaska are
described below. This disclosure incorporates the results of a technical report
prepared by J.W. Murton and Associates, J.W. Murton P. Eng. in accordance with
the requirements of Canadian National Instrument 43-101  Standards of
Disclosure for Mineral Projects (NI 43-101). Mr. Murton is a
qualified person under NI 43-101 who is independent of Silverado. This
technical report is referred to as the B.C. Technical Report. The Company has
filed the B.C. Technical Report with the British Columbia Securities Commission.
Investors may view the B.C. Technical Report at the SEDAR web site at
www.sedar.com.

The B.C. Technical Report provides disclosure regarding
Silverados Alaska properties in accordance with NI 43-101. U.S. Investors are
cautioned that the United States Securities Commission does not recognize the
terms indicated resources and inferred resources, as more
particularly discussed below.

NOLAN GOLD PROJECT

We do not have any commercially viable reserves on any of our
properties that comprise the Nolan Gold Project or any of our other properties.
We plan to carry out exploration activities on the Nolan Gold Project that are
referred to as test mining activities. The objective of the test mining
activities on the Nolan Gold Project is to expand our knowledge and geological
data of the mineralization of the placer deposits and the lode mineralization
occurrences on the Nolan Gold Project and to recover gold from test mining
activities in order to pay for a portion of the expense associated with
exploration of the Nolan Gold Project. As we have not established commercially
viable reserves on the Nolan Gold Project, we anticipate that recoveries of gold
from test mining activities maynot be sufficient to pay for the full
cost of exploration. There is no assurance that our test mining activities will
result in a final evaluation that a commercially viable mineral deposit exists
on any of our mineral properties that comprise the Nolan Gold Project.

1.      Location and Access

The properties comprising our Nolan Gold Project are located
approximately 8 miles west 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 Nolan Gold Project is accessible by the Elliott and the
Dalton Highways, about 280 road miles north of Fairbanks Alaska. An all weather
road connects Nolan Creek to the Dalton Highway and is suitable year-round for
semi-tractors loaded with fuel and equipment. Air transportation is available by
several commercial carriers on two daily flights to Coldfoot, Alaska, about 15
miles south-southeast of Nolan.

A map illustrating the location and access to the Nolan Gold
Project is provided below:

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2.      Ownership Interest

The Nolan properties are comprised of four non-continuous
groups of federal unpatented mining claims. There has been no legal survey on
any of the claims. These groups of properties are described as follows:

(a)   Nolan Gold Project Placer Property

Our Nolan Gold Project placer claim holdings are comprised of
  199 contiguous unpatented federal placer mining claims located within the Nolan
  and Hammond River drainage systems. Silverado also holds 2 unpatented federal
  placer mining claims located on Marion Creek and 5 unpatented federal placer
  mining claims located on Clara Creek. Both Clara and Marion Creeks are left
  limit tributaries to the Middle Fork of the Koyukuk River. The Clara Creek and
  Marion Creek claims are located approximately 1.5 and 3 miles north of Coldfoot,
  Alaska, respectively, and are situated near the Dalton Highway. Silverado is
  the registered owner of all 206 placer claims. Over the years Silverado has
  conducted operations on this property entitled: the Nolan Deep Channel, Smith
  Creek, Thomsons Pup, Marys Bench, Swede Channel, Marys East,
  Archibald Creek, Marys East, Workman's Bench, Upper Nolan Creek, Dolney
  Bench, West Block, "3B1" on Nolan Creek, and Eureka Bench, et al. The main block
  of contiguous Nolan Placer claims cover approximately 6 square miles of creeks
  and fluvial terraces and uplands.

- 22 -

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Of these claims, the Thomsons Pup claims consist of 6
unpatented federal placer claims registered in the name of Silverado Green Fuel.
Our ownership in these claims is subject to a royalty of 3% of net profits on
80% of production payable to Frank Figlinski and Lyle R. Carlson.

(b)   Nolan Lode

The Nolan Lode claims are comprised of 404 unpatented federal
lode claims. A claim staking program added 242 of these claims during 2006, and
95 more during 2007. Ownership of these federal lode claims is in the name of
Silverado Gold Mines Inc. This area encompasses approximately 11 square
miles.

3.      History of
Operations

Placer mining on Nolan Creek and its tributaries was first
recorded at about the turn of the last century. During the ensuing years and up
to 1942, recoveries of approximately 120,000 oz. of placer gold were reported.
This gold is well known for its coarse size and high fineness. The early miners
mined Nolan Creek and its left limit tributaries, particularly Fay, Archibald
and Smith creeks by surface methods on the upper areas and by underground
methods in the lower reaches of the creeks when overburden became too deep.
Shafts are found throughout these areas.

We first began acquiring placer claims on Nolan Creek in 1979.
The following table summarizes gold production and gold recoveries by year from
the Nolan properties since 1980.

YEAR
    STATUS OF OPERATIONS
    NATURE OF **OPERATIONS**
    **LOCATION**
    BCY **MINED**
    Tr.Oz. GOLD RECOVERED
    RECOVERED **GRADE**
      OZ/BCY (Bank Cubic Yards)1980-88
    Test Mining During Exploration
    Surface Operations
    Archibald / Fay Creek
    40,000est
    2,400 *
    0.060est1993
    Production
    Surface Operations
    Thompson Pup
    33,800
    1,304
    0.0381994
    Production
    Underground Operations
    Marys Bench Underground
    16,143
    2,697
    0.1671994
    Production
    Surface Operations
    Eureka Bench Open Cut
    29,300
    5,733
    0.1961995
    Production
    Surface Operations
    Phase 3 Open Cut
    22,285
    2,394
    0.1071995
    Production
    Underground Operations
    3B1 Underground
    12,991
    1,006
    0.077


- 23 -

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YEAR
    STATUS OF OPERATIONS
    NATURE OF **OPERATIONS**
    **LOCATION**
    BCY **MINED**
    Tr.Oz. GOLD RECOVERED
    RECOVERED **GRADE**
      OZ/BCY (Bank Cubic Yards)1995
    Production
    Surface Operations
    West Block Open Cut
    18,988
    1,305
    0.0691995
    Production
    Surface Operations
    Marys Bench hydraulic
    600
    27
    0.0451996
    Test Mining During Exploration
    Surface Operations
    Dolney Bench Surface
    5,042
    126
    0.0251998
    Test Mining During Exploration
    Surface Operations
    Archibald Creek Surface
    5,947
    128
    0.0221999
    Test Mining During Exploration
    Underground Operations
    Swede Channel Underground
    4,575
    623
    0.1361999
    Test Mining During Exploration
    Surface Operations
    Workmans Bench Open Cut
    5,580
    112
    0.0202000
    Test Mining During Exploration
    Surface Operations
    Workmans Bench Open Cut
    14,919
    201
    0.0132003
    Test Mining During Exploration
    Underground Operations for Nolan Deep
      Channel; Surface Operations for Wooll Bench, Marys
      Bench and other
    Nolan Deep Channel, Wooll, Marys
      Bench, Other
    30,279
    451
    0.0152006
    Test Mining During Exploration
    Underground Operations
    Swede Channel Underground
    6,843
    939
    0.1372007
    Test Mining During Exploration
    Underground Operations
    Swede Channel and Marys East
      Underground
    14,092
    3,726.8
    0.264TOTALS
    
    
    
    261,384
    23,172.8
    0.089


*Includes 1,320 ounces produced by lessee.

- 24 -

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We have not achieved profitability in any of the years during
which we have carried out production or test mining activities at the Nolan Gold
Project.

We did not carry out any gold recovery operations during 2004
and 2005 as we focused on lode exploration on the property, as opposed to test
placer mining activities.

During the winter of 2005, Silverado began an underground
exploration and development program on the Swede Channel. Continuing into 2006,
Silverado installed about 900 feet of exploration drifts by underground
tunneling methods into the Swede Channel. Prior bulk sampling had shown the
channel to contain gold in the basal gravels, so the project was designed to
obtain a large bulk sample from the tunnel being advanced into the channel. The
2005-2006 winter stockpile contained 8,896 LCY of gravel material, and was
processed between June 28th through July 20thof 2006,
yielding 939.07 troy ounces of gold nuggets and dust. The Swede portal was
re-opened in early November of 2006, and gravel extraction on the remaining
sections of the Swede Channel continued until its completion by the middle of
January 2007. A total of 8,963 LCY of gravel material was stockpiled from the
remaining Swede Channel.

In early January 2007, crews installed a portal into Marys
East, and began an underground drift into the Marys East deposit. The Marys
East project was completed at the end of March 2007 and 9,357 LCY of gravel
material was stockpiled from this project.

The 2006-2007 winter stockpile contained 18,320 LCY (Swede
Channel and Marys East combined) of gravel material, and was processed from
June through Julyof 2007 at the existing sluice plant location,
yielding 2,811.74 troy ounces of gold nugget gold and over 207 pounds of
concentrate that contained gold particles smaller than 1⁄4 inch in size. The fine
concentrate yielded 915.06 try ounces of gold (30% gold), which when combined
with 2811.74 troy ounces of nugget gold recovered in 2007 totals 3726.80 troy
ounces. Also, the fine concentrates yielded 65.10 troy ounces of silver or 2.15%
silver.

4.      Present Condition of the
Property and Current State of Exploration

We have spent approximately $32,700,000 over the last 19 years
  acquiring, exploring and undertaking test mining activities and test exploration
  on the Nolan Gold Project. Up to November 30, 2007, we have completed 851 placer
  drill holes with a cumulative total of 49,370 feet of drilling. About 219 of
  those drill holes were completed along the frozen gold bearing deep channel
  of the Nolan Creek known as the Nolan Deep Channel. We have also completed 28
  lode exploration drill holes with a cumulative total of 6,870 feet of drilling.

We also have a gold recovery facility located at the Nolan Gold
Project that is used to recover gold from gravel that we extract during test
mining activities as part of our exploration of the Nolan Gold Project. This
gold recovery facility was modernized in 2006. Our gold recovery facility
incorporates nugget traps, hydraulic riffles, classification and gravity
concentration processes in order to remove gold present in gravel material. The
gold recovery facility has a processing rate of 75 cubic yards of gravel
material per hour. The gold facility can only be operated in the late spring to
early fall months when free-flowing water is available to operate the plant.

- 25 -

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On May 17, 2007, Silverado entered into a 10-year "shared well
agreement" with Sukakpak, Inc., an Alaskan corporation, through which Silverado
designed, drilled and installed at its expense a high-capacity water well in the
nearby rural community of Wiseman, Alaska, to serve both as a source of
high-quality drinking water, and a high-volume source of sample processing
water. In addition, Silverado upgraded its Nolan Gold Project drinking water
storage facility to a series of three fully-enclosed 2,000-gallon plastic
storage tanks, and also a modern multi-modular kitchen and dining facility.
Silverado also expended approximately $85,400 for the design and installation of
a state-of-the-art "fast activated sludge treatment" (FAST®) arctic-capable
wastewater treatment facility designed by Lifewater Engineering Company of
Fairbanks, Alaska that is capable of serving the treatment needs of up to 24
personnel, and that treats the camp's domestic wastewater to such a high quality
that it can be discharged directly to the land surface. The design, construction
and installation of the wastewater facility was undertaken under the approval of
the Alaska Department of Environmental Conservation (ADEC).

During the winter of 2005, Silverado began an underground
exploration and development on the Swede Channel. Continuing into 2006,
Silverado installed about 900 feet of exploration drifts by underground
tunneling methods into the Swede Channel. Prior bulk sampling had shown the
channel to contain gold in the basal gravels, so the project was designed to
obtain a large bulk sample from the tunnel being advanced into the channel. The
2005-2006 winter stockpile contained 8,896 LCY of gravel material, and was
processed between June 28 and July 20of 2006, yielding 939.07 troy
ounces of gold nuggets and dust. The Swede portal was re-opened in early
November of 2006, and gravel extraction on the remaining sections of the Swede
Channel continued until its completion by the middle of January 2007. A total of
8,963 LCY of gravel material was stockpiled from the remaining Swede
Channel.

In early January 2007, crews installed a portal into Marys
East, and began an underground drift into the Marys East deposit. The Marys
East Placer Deposit was discovered by drilling in 2004. Subsequent infill
drilling during 2006 showed a bedrock shelf perched about 40 feet higher in
elevation than the Marys Bench deposit, which hosted gold bearing gravel layers
at the bedrock contact. The Marys East project was completed at the end of
March 2007 and 9,357 LCY of gravel material was stockpiled from this project.

The 2006-2007 winter stockpile contained 18,320 LCY (Swede
Channel and Marys East combined) of gravel material, and was processed from
June through Julyof 2007 at the existing sluice plant location,
yielding 2,811.74 troy ounces of gold nugget gold and over 207 pounds of
concentrate that contained gold particles smaller than 1⁄4 inch in size. The fine
concentrate yielded 915.06 try ounces of gold (30% gold), which when combined
with 2811.74 troy ounces of nugget gold recovered in 2007 totals 3726.80 troy
ounces. Also, the fine concentrates yielded 65.10 troy ounces of silver or 2.15%
silver.

The Nolan Gold Project does not include any commercially viable
reserves and our activities at the Nolan Gold Project, including test mining
activities, are exploratory in nature.

Exploration Objectives for the Nolan Gold Project

Our exploration plans are to further define gold deposits in
  order to provide a basis for the assessment of the feasibility of future additional
  test mining activities at the Nolan project. We are currently undertaking an
  extensive geological exploration program on the Nolan Gold Project. The program
  includes drilling, as well as the review of geological and geophysical data.
  The overall objectives of our exploration program are as follows:

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| | 1. | To identify surface or sub-surface placer deposits at our
      Nolan Gold Project that are prospective for test mining operations. In
      general, these deposits are located on benches that are ancient river beds
      and lakeshore deposits located above the present channel of Nolan Creek.
      These deposits include Marys Bench, Jack London Bench, Wooll Bench,
      Workmans Bench, Swede Channel, Upper Nolan Creek (deep channel), Lower
      Nolan Bench and Marys East including areas adjoining to the north, east
      and south. The objectives of our drilling program will include the
      determination of the nature and extent of areas of known bench deposits
      that are prospects for test mining operations and the identification of
      new bench deposits that may be prospects for test mining operations.
      Marys Bench East and areas adjoining north, east and south as well as,
      the Swede Channel and the areas adjoining to the east and south, in that
      order, are our exploration priorities as they have showed the most
      positive results from earlier exploration that we have completed. Wooll
      Bench and Workmans Bench have been less extensively explored with only
      limited drilling. The Lower Nolan Bench has not been drilled. The newly
      discovered Jack London Bench may also be a priority target during fiscal
      2008.
| | -- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          
| | 2. | To determine whether there is a potential lode gold and
      antimony deposit which may be the source of the placer gold found on the
      Nolan Gold Project. A lode deposit of gold occurs when gold is present in
      its host rock as differentiated from placer gold which is gold that has
      been removed from its host rock by the process of erosion. Our reverse
      circulation and diamond core drilling, trenching, geologic and geophysical
      work will be part of our on-going investigations to determine whether
      there exist one or more lode deposits on the Nolan Gold project that could
      be the source of our placer gold deposits.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         
| |    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          
| | 3. | To identify any placer deposits at Slisco Bench, which is
      located on our Hammond River property that are prospective for test mining
      operations. The Slisco Bench (deep channel) deposit is approximately 3 to
      4 miles northeast of the Nolan Deep Channel.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            

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.

5.      Geology

The Nolan Area properties are located in the Brooks Range of
  northern Alaska. Regionally, the area is underlain by a series of metasedimentary
  rocks of the Coldfoot subterrain and Hammond subterrain of the Arctic Alaska
  terrain. The metasedimentary rocks have been assigned a Middle to Upper Devonian
  age. During Late to Early Cretaceous time, the Middle Devonian metasedimentary
  rocks of the Coldfoot subterrain were thrust northward onto the Middle to Upper
  Devonian metasedimentary rocks of the Hammond Subterrain. This is represented
  by a large thrust belt in the Nolan area and resulted in regional metamorphism
  of the continental rocks that were overridden.

- 27 -

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The property area is underlain by grayblack phyllite, black
slate and metasiltstone, grayblack and brown slate, brown micaceous schist and
phyllite, grayblack micaceous schist, gray green to black muscovite schist that
locally contains abundant pyrite and arsenopyrite, and banded quartzite
interbedded with chloritic quartzite and quartz mica schist.

The valley bottoms and side hills are mantled by a heavy cover
of glacial outwash and lake bottom sediments. Depth of overburden varies from a
very few feet on the upper slopes to tens to hundreds of feet in the lower
valley bottoms on the claims. Deeper areas of cover are permanently frozen.
There have been four periods of glaciation on the Nolan properties and the
placer gold distribution has been variously affected by the glaciation.

The placer deposits are of three types:

| | 1. | Shallow placers concentrated in present stream and river
      valleys;                                                                                                                                                                                   
| | -- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | 2. | Placer gold concentrated on bedrock in deeply incised
      bedrock channels that have been covered by 10 to 100s of feet of gravel
      and organic material; and                                                                                      
| | 3. | Placer deposits concentrated on benches lying anywhere
      from 10 to 400 feet above present stream levels. These bench gravels were
      deposited when streams were flowing at higher levels relative to present
      due to damming by glacial ice.

Placer gold, lode gold and antimony are the main type of
mineralization of interest on the property. We are currently exploring for a
lode source for the placer gold. Known gold-bearing lodes identified on the
Nolan Lode properties consist of stibnite-bearing quartz veins, and quartz veins
containing free gold, which fill fractures cutting phyllite and metasiltstones.

Analysis of obtained airborne geophysical data identified a
linear resistivity low that has been named the Solomon Shear trend. The
resistivity low is coincident with a geochemical anomaly for gold, antimony,
arsenic and other indicator minerals. This anomaly trends sub-parallel to Nolan
Creek along the east side from south of Smith Creek into the Hammond River
drainage.

The Company has identified a new zone with anomalous gold
mineralization, which has been named the Fortress. The Fortress area is part
of an east-west tending deformation zone that is overlain by strong arsenic and
gold in soil anomalies, which are up to over 1,500 feet in length.

We will continue our 2008 exploration program with the
objective of identifying mineralization of commercial significance along this
zone.

6.      Estimates of Indicated and
Inferred Resources

We have not established any commercially viable reserves on any
of our properties that comprise the Nolan Gold Project.

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In the B.C. Technical Report prepared by Mr. W. Murton, P.
Eng., an independent qualified person under Canadian Policy NI 43  101, he
reported the following indicated and inferred resource estimates for the Nolan
area properties. These resource estimates have been prepared in accordance with
Canadian standards for reporting resources and reserves as set out in NI 43-101
and are summarized below. BCY refers to bank cubic yards in the following
tables:

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

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

Name
    Location
    No. of Drill Holes
    Volume
    Grade
    CategoryD Block, #1 Below Disclover, Nolan Creek
    On claim Discovery & #1 Below
      Discovery, Nolan Creek
    15
    11,100 BCY
    0.35 oz./BCY
    Indicated Resource


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

The following table uses the term inferred resources.
Silverado advises U.S. investors that while this term is recognized and required
by Canadian regulations (under National Instrument 43-101 Standards of
Disclosure for Mineral Projects), the U.S. Securities and Exchange
Commission does not recognize it. Inferred resources have a great amount of
uncertainty as to their existence, and great uncertainty as to their economic
and legal feasibility. It cannot be assumed that all or any part of an Inferred
Mineral Resource will ever be upgraded to a higher category. Under Canadian
rules, estimates of Inferred Mineral Resources may not form the basis of
feasibility or pre-feasibility studies, except in rare cases. U.S. investors
are cautioned not to assume that part or all of an inferred resource exists, or
is economically or legally mineable.

Name
    Location
    No. of Drill Holes
    Volume
    Grade
    CategoryD Block #2 Below Discovery, Nolan Creek
    On claim #2 Below Discovery, Nolan
      Creek
    11
    55,000 BCY
    0.04 oz./BCY
    Inferred Resource3B3 Block
    Nolan Creek below D Block #2
    12
    14,600 BCY
    0.1 oz /BCY
    Inferred Resource


- 29 -

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Name
    Location
    No. of Drill Holes
    Volume
    Grade
    CategoryWooll Bench
    Right limit of Archibald Creek
    4
    26,000 BCY
    0.02 oz /BCY
    Inferred ResourceSwede Gulch
    Left limit of Nolan Creek
    5
    16,000 BCY
    0.13 oz/BCY
    Inferred ResourceHammond / Slisco Bench
    Right limit of Hammond River and
      right limit of Vermont Creek
    64
    42,800 BCY
    0.03 oz/BCY
    Inferred ResourceSmith Creek Camp
    Right limit of Smith Creek
    5
    35,500 BCY
    0.03 oz/BCY
    Inferred Resource


TOTAL INFERRED RESOURCE  NOLAN AREA
PROPERTIES

BCY:
    189,900Grade:
    0.045 oz/BCY


When estimating the above resources, emphasis was placed on
reported assay values for individual drill holes. The drill hole intercept
length was combined with the assay value to create a value of oz./BCY (bank
cubic yard). The drill hole locations were plotted and an area of influence
created around each hole to generate a total BCY figure. The density of drilling
and values for contained gold were the criteria used for the final
calculations.

We have discovered a number of new areas that contain placer
gold mineralization on the Nolan property that are too loosely defined under NI
43-101 to allow the mineralization to be categorized as a resource. Additional
exploration drilling and testing may bring these mineralized areas up to a
higher level of confidence and thus a higher category which could be included in
the total gold inventory of the property. There is no assurance however that
this upgrade will take place.

Mr. Murton also concluded that there are indications of lode
gold mineralization on the Nolan properties, but exploration is in a very early
phase and more work is required before any assessment of this mineralization may
be a completed.

HAMMOND PROPERTY (SLISCO BENCH)

1.      Location and Access

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.

- 30 -

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

A map illustrating the location and access to the Hammond
property is provided above under the heading Nolan Gold Project.

2.      Ownership Interest

As of November 30, 2007, we were in arrears of required mineral
property claims and option payments of $360,000 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 for the past four years, 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.

3.      History of
Operations

In 1993 we acquired the group of placer gold mining claims
overlying the Slisco Bench, and located along the right limit of the Hammond
River. The Hammond River drainage has been the subject of intense exploration
since the early 1900s. Poor exposures, difficult terrain, and deep overburden
confronted the first explorers and early miners in the Hammond River region.
Those miners who worked with persistence succeeded for the most part in
developing small-scale projects constrained in scope by the inadequacies of
their mechanical equipment, and the lack of technical knowledge and financial
support. Nevertheless, because of the work done by these early explorers, the
Hammond River has produced approximately eighty thousand ounces of placer gold,
including the second largest gold nugget ever discovered in Alaska  a nugget
weighing more than 135ounces.

The Bench was first staked by Martin Slisco, and prospected by
  hand methods since the 1930s, but no commercial production was recorded.
  During the late 1970s, placer gold, including some nuggets characteristic of
  the Koyukuk Mining District were recovered by open cut prospecting and bulk
  sampling from a prospect pit at the northern end of the bench. The prospect
  pit was open to bedrock and with a nominal 20 feet of overburden exposed, indications
  were favourable for defining a large open pit mine-able placer gold deposit.
  The surface topography indicates the bench could extend up to 4,500 feet southerly
  from the prospect pit. Beyond that distance the bench is intersected by the
  present Hammond River Channel where past and ongoing erosion has removed all
  surface expression of the bench. Below that intersection, the bench has been
  eroded and during 1995, Silverado completed a Phase I drill program, completing
  64 drill holes to the south of the prospect pit. Analysis of the data from the
  Phase I program determined that the Slisco Bench surface topography conceals
  an ancient gold bearing channel. Depths of drilling to bedrock were much deeper
  than anticipated. Several hundred feet south of the prospect pit bedrock depths
  are about 60 feet below surface, increasing to more than 230 feet in depth at
  a distance of 1,200 feet south of the prospect pit. The gravel layer at bedrock
  was found to contain encouraging and sometimes, significant placer gold content
  at channel bottom intercepts.

- 31 -

---

In 2006, Silverado commenced drilling along the Slisco deep
channel which completed additional 39 drill holes with a total footage of 4,782
feet. This exploration work was done to define the length of the Slisco deep
channel. Phase one and Phase two drilling, sampling, and sample analysis of a
total of 103 drill holes, has served to delineate the Slisco deep channel for a
total length of 1800 lineal feet. Surface topography indicates that the channel
could cover a length of up to 4,500 feet.

4.      Present Condition of the
Property and Current State of Exploration

A drilling program is planned to explore the remaining 2,700
feet extending south from the present known location of the Slisco deep channel.
Additional in-fill drilling will be necessary along the length of the channel,
as well as potential gold bearing tributaries, and other areas by drilling
fences or lines of drill holes with close hole spacing across the channel
bottom. These holes will be necessary to ascertain the width of the channel, and
to collect adequate sample data at close spacing, for mining feasibility
studies. After completing the Phase one and Phase two drilling, data showed the
channel to be narrower than the surface topography indicated and bedrock depths
increased to the south. Present known maximum depth is 230 feet. We presently
estimate that as many as several hundred additional drill holes would be
necessary to fully define and evaluate the Slisco deep channel. The Slisco deep
channel is presently in a state of ongoing exploration, and there is no camp,
production facilities, or equipment located on the property. Currently, there is
no power supply to the Hammond property. All support for ongoing and planned
work on the property is currently provided from the Nolan Creek Camp.

5.      Geology

The primary areas of geological interest on the Hammond
Property are the placer gold deposits, which are similar to the placer gold
deposits present on the adjoining Nolan Gold Project.Geologically, the
Slisco Bench gold-placer deposit is a deeply buried, permanently frozen, ancient
and now abandoned river channel of the Hammond River. Subsequent to the geologic
processes that forced the Hammond River to abandon its channel at Slisco Bench,
glacial and peri-glacial processes (processes acting upon permanently frozen
terraines ) buried the gold-bearing gravel of the Slisco deposit with as much as
230 feet of frozen sedimentary detritus. The deep thickness of frozen overburden
identified probably prohibits the economical application of traditional open-pit
methodologies. Underground placer gold recovery methods which we have utilized
extensively would probably be used to remove the gold-bearing gravel.

Mineral investigations by our geologists in conjunction with a
federal study of mineral resources in the area have revealed the presence of
west-north-westerly striking gold bearing hydro-thermal quartz veins on the
property. Those veins, in conjunction with a north-easterly trending shear zone
are thought to have contributed, at least in part, to the placer gold found on
the property.

- 32 -

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6.      Estimates of Indicated and
Inferred Resources

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

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

Name
    Location
    No. Of Drill Holes
    Volume
    Grade
    CategoryHammond / Slisco Bench
    Right limit of Hammond
      River and right limit of
      Vermont Creek
      64
      42,800 BCY
      0.03 oz/BCY
    Inferred Resource


We have not established any commercially viable reserves on the
Hammond Property.

The conclusions of the BC Technical Report regarding mineral
resources on the Hammond Property are summarized above under the heading
Nolan Gold Project  Estimates of Indicated and Inferred Resources.

ESTER DOME PROJECT

The Ester Dome Project encompasses all of our optioned
properties on Ester Dome.

1.      Location and Access

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

A map illustrating the location and access to the Ester Dome
Project is provided below:

- 33 -

---



2.      Ownership Interest

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 until September 1, 2008. There has been no legal
survey on the claims.

- 34 -

---

There are 3 separate agreements covering the above mentioned 53
claims on the Ester Dome property.

| | (a) | Grant Mine                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     
| | --- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |     |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                
| |     | The 26 State mineral claims called the Grant Mine claims
      are covered by an option to purchase agreement with Mr. Roger Burggraf
      dated October 6, 1978, as amended in October 1997. Our ownership interest
      is subject to the payment of 15% of net profits until $2,000,000 has been
      paid, and 3% of net profits thereafter. Our minimum work requirements are
      $15,000 per year. In December of 1997, for the purpose of facilitating an
      agreement with Placer Dome U.S. Inc. and in consideration for us making a
      payment of $20,000, the conditional purchase and sale agreement was
      amended to reduce the royalty payments to 3% of net profits as defined in
      the agreement. Subsequent to November 30, 2003 we made delinquent payments
      in the amount of $20,000. The owner of the claims has confirmed our
      agreement is in good standing.
| |     |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                
| | (b) | St. Paul / Barelka                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             
| |     |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                
| |     | The 22 State mineral claims called the St. Paul / Barelka
      claims are covered by a purchase agreement with Don May and Paul Barelka
      dated May 12, 1979. Our ownership interest is subject to the payment of
      15% of net profits until $2,000,000 (inflation indexed from 1979) has been
      paid and 3% of net profits thereafter.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           
| |     |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                
| | (c) | Dobbs                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          
| |     |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                
| |     | The remaining 4 state mineral claims and 1 federal
      mineral claim called the Dobbs claims are covered by a purchase agreement
      with Mr. G. Dobbs dated November 6, 1984, as amended on August 4, 1996.
      Our ownership interest is subject to the payment of 15% of net profits
      until $1,500,000 has been paid and 3% of net profits thereafter. Our
      minimum work requirements are $1,500 per year. Access to Dobbs is the same
      route as St. Paul / Barelka. Our lease on this property is for 10 years,
      beginning in 1984, with five-year renewals thereafter. Subsequent to
      November 30, 2003, we paid delinquent payments in the amount of $9,117.
      The owner of the claims has confirmed our agreement is in good
      standing.                                                                                                                         

3.      History of
Operations

The Ester Dome property first became known as a result of the
discovery of placer gold in the creeks draining Ester Dome in about 1902. By
1909, approximately 1.5 million oz. had been mined from alluvial deposits.
Ultimately, approximately 4 million ounces of placer gold have been mined from
creeks draining Ester Dome.

Shortly after the discovery of placer gold, lode claims were
staked on quartz veins discovered on Ester Dome. By 1912, four stamp mills were
operating in the area.

- 35 -

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(a) Grant Mine

Work at the Grant Mine, on the eastern flank of Ester Dome, was
initiated in about 1928 with the sinking of shafts to bedrock to attempt to
locate buried alluvial gold. This work, while it did not locate alluvial gold,
did reveal quartz rubble near bedrock containing free gold. Mr. Grant, the claim
owner, sunk two shafts through about 80 of loess (silt) cover and by 1931 had
reportedly mined about 600 tons from the newly discovered Irishman Vein. This
work was all completed from the only levels established, the 50, 100 and
150-foot levels. Mr. Roger Burggraf purchased the claims from Grants heirs in
1973 and deepened the shaft to the 200-foot level. This work revealed a new
vein, the ODea vein which has eclipsed the Irishman vein in importance.
Burggraf completed limited development on the Irishman vein and the ODea vein
during the next 5 years, and in 1978 entered into a lease option agreement with
Silverado.

Over the subsequent 8 years up to 1986, we completed an
extensive surface exploration and underground development program as well as
test milling the underground development muck from work on the ODea structure,
in a small (approximately 50 tons per day) gravity mill, during 1980  1982. In
1984, we entered into a joint venture agreement with Aurex Inc., a subsidiary of
Marubeni America Corporation to further explore and develop the Grant Mine plus
a larger area of interest around the mine. Aurex withdrew from the joint venture
at the end of 1985 and the mill was shut down in Jan. 1986. A total of
approximately 22,000 tons of gold bearing rock were mined from the ODea
structure during the period 1980 to January 1986, yielding 4,090 ounces of
gold.

When Aurex became involved in the joint venture, a decision was
made to construct a 230 ton per day gravity / cyanide mill to treat the expanded
resource that had been outlined on the ODea structure above the 200 level.
This mill and related support facilities were constructed by Tri-con Mining Inc.
for Silverado using a design provided by Melis Consulting Engineers Ltd. The
completed mill was commissioned in October 1985 and was shut down in January
1986. During the short mill run, the plant operated above design capacity. Lower
feed grades than had been forecast plus other underground problems caused Aurex
to elect to withdraw from the project and a premature shutdown of the facility.

During the period 1987  1989, we decided to open pit mine the
Ethel - Elmes structures, located a short distance from the mill facility on the
Dobbs claims adjacent to the Grant Mine. This mining operation generated
approximately 71,620 tons of gold bearing material. Combined with the previously
mined stockpile from the ODea vein, (11,000 tons), and material from another
source (Silver Dollar), the total tonnage processed amounted to 111,852
tons.

The total tonnage processed through the Grant mill up to 1989
amounts to 111,852 tons with a total of 11,215 oz. of gold produced for an
average calculated recovered grade of 0.10 oz/ton. Gold recoveries from the
Grant Mine are summarized as follows:

- 36 -

---

YEAR
    DRY TONS MILLED
    RECOVERED OZ. GOLD
    RECOVERED GRADE1980  1981(1)
    4,170
    1,424
    0.3411985 1986
    7,069
    1,372
    0.1931987 - 1989
    100,586
    8,419
    0.083TOTALS
    111,852
    11,215
    0.10


|(1) | This material was processed through a 20 ton per day
      pilot plant prior to the construction of the Grant
Mill.
|--- | -------------------------------------------------------------------------------------------------------------------

We did not make a profit from our operations at the Grant Mine
during any of the above periods during which we achieved gold recoveries.

The mill has been properly secured and remains in good
condition.

In June of 1990, ACNC (American Copper and Nickel Company)
entered into a joint venture with us on the Grant Mine claims and a larger area
of Ester Dome. This included the Dobbs, and St Paul / Barelka properties.

On the Grant Mine property, ACNC completed the drilling of 10
diamond drill holes and fourteen wedge cuts on the ODea  Irishman system
totaling 10,097. This work confirmed the previous drill grades and intercept
width encountered by Silverado and helped to further define the ODea structure.

(b) St. Paul / Barelka

The St. Paul / Barelka claims have undergone a significant
amount of exploration since the early 1980s when they were first acquired by us.
The early work was in the form of electromagnetic surveys, geochemical soil
sampling, trenching and diamond and percussion drilling. Most recently, in
1991-1992, ACNC completed 9 diamond drill holes and 3 rotary reverse circulation
holes. Subsequent work in 1996-1997 amounted to significant trenching and 91
drill holes focusing on the St Paul structure which had been partially defined
by our previous work.

(c) Dobbs

The Dobbs property contains the Ethel  Elmes vein system and
structure which had been located in the first work and prospecting that took
place on Ester Dome in the early 1900s. Exploration in the 1980s by us
revealed a mineralized shear zone up to 25 wide containing high grade quartz
veins and veinlets. This was the structure mined in 1987  1989 which generated
approximately 71,620 tons of gold bearing material. Combined with the previously
mined stockpile from the ODea vein, (11,000 tons), a total of approximately
82,620 tons were mined and milled during 1988  1989 producing 7,362 oz. of
gold.

- 37 -

---

4.      Present Condition of the
Property and Current State of Exploration (a) Grant Mine-ODea Vein:

The Grant Mine operations, including camp, buildings, machine
shops and related equipment, were constructed in the late 1980s. Our mill and
equipment are in operating condition but are not currently operating. The mill
has remained inactive since February 1989. The plant and equipment cost us
$2,076,780. This amount has been written down to $nil on our audited financial
statements. Power to the Grant Mine operations is provided by diesel powered
generators located on site. Commercial power transmission lines cross through
the property, and could provide power to the facilities for any future
operations. Auxiliary power to the Grant Mine operations will be provided by
diesel powered generators located on site. During fiscal 2007, our work on the
property was limited to assessment work. We plan to maintain claim rental
payments for the current fiscal year and to continue with assessment work.

If gold prices remain strong, we may re-commence exploratory
drilling on our Ester Dome properties with the objective of increasing our
database of geological information on these properties.

(b) May (St. Paul) / Barelka:

The St. Paul property is undeveloped and does not contain any
open-pit or underground mines. There is no plant or equipment located on the St.
Paul property. Currently, there is no power supply to the St. Paul property.

We have no plans at this time to do any work other than as
required for annual claims maintenance and when we do there is no guarantee the
work will present economic viability for this deposit.

(c) Dobbs:

The Dobbs property is undeveloped and does not contain any
open-pit or underground mines. There is no plant or equipment located on the
Dobbs property. Currently, there is no power supply to the Dobbs property.

We have no plans at this time to do any work other than as
required for annual claims maintenance.

5.      Geology

The Fairbanks Mining District is in the northwest part of the
Yukon  Tanana metamorphic complex. This region, referred to variably as Yukon
Crystalline Terrain, Yukon Cataclastic Complex or Yukon Tanana Terrain is an
enormous tract of multiple deformed and metamorphosed rocks occupying much of
east central Alaska and adjoining Yukon Territory.

The Fairbanks District is underlain by three metamorphosed stratigraphic
  packages all in apparent thrust fault contact. From oldest to youngest these
  are: (1) Chatanika Terrain, a Precambrian eclogite-garnet-amphibolite unit exposed
  on the northern edge of the district; (2) Fairbanks Schist, a dominant lithology
  and host to the majority of gold occurrences in the district, comprised of late
  Proterozoic to early Paleozoic sedimentary and volcanic rocks metamorphosed
  to greenschist facies; and (3) Chena River Sequence, an early to mid Paleozoic
  unit metamorphosed to lower amphibolite facies.

- 38 -

---

Stocks and dikes are common in the Fairbanks District, varying
from diorite to granite. In recent years they have been conclusively linked to
significant gold mineralizing systems. Mid Cretaceous ages have been determined
for two of the stocks. Lamprophyre dikes are locally present in the
district.

The Ester Dome property is underlain by late Proterozoic to
early Paleozoic sedimentary and volcanic rocks that have been metamorphosed to
greenschist facies. Dominant lithologies are quartz-mica schist, graphitic
phyllite and micaceous quartzite, with lesser chlorite schist and calcareous
schist. The schists are locally intruded by fine grained granitic to dioritic
dikes and sills with minor porphyritic phases.

Four main structural patterns that crosscut stratigraphy and
folding are present on Ester Dome. The most prominent is northeast trending
shearing that is probably related to northeast thrusting in the region. Most of
the past and present exploration has taken place along mineralized veins and
shears parallel to this trend.

6.      Estimates of Indicated and
Inferred Resources

We have not established any commercially viable reserves on any
of our properties that comprise the Ester Dome Project.

A.      GRANT MINE - ODEA
STRUCTURE

The determinations of indicated resources at the Grant Mine -
ODea Structure in the BC Technical Report are summarized as follows:

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

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

INDICATED
    RESOURCE
    ESTIMATEBLOCK
    SQ. FEET
    WIDTH FEET
    TONS
    GRADE OZ /TONCORE
    305,620
    10.9
    266,500
    0.31


B.      DOBBS  (ETHEL 
ELMES)

The determinations of inferred resources at the Dobbs
(Ethel-Elmes) property are summarized in the BC Technical Report as follows:

- 39 -

---

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

The following table uses the term inferred resources.
Silverado advises U.S. investors that while this term is recognized and required
by Canadian regulations (under National Instrument 43-101 Standards of
Disclosure for Mineral Projects), the U.S. Securities and Exchange
Commission does not recognize it. Inferred resources have a great amount of
uncertainty as to their existence, and great uncertainty as to their economic
and legal feasibility. It cannot be assumed that all or any part of an Inferred
Mineral Resource will ever be upgraded to a higher category. Under Canadian
rules, estimates of Inferred Mineral Resources may not form the basis of
feasibility or pre-feasibility studies, except in rare cases. U.S. investors
are cautioned not to assume that part or all of an inferred resource exists, or
is economically or legally mineable.

INFERRED
    RESOURCE
    ESTIMATEBLOCK
    SQ. FEET
    WIDTH FEET
    TONS
    GRADE OZ/TONUNDER ELMES PIT
    102,270
    11
    90,000
    0.05UNDER ETHEL PIT
    102,270
    11
    90,000
    0.05TOTAL
    
    
    180,000
    0.05


C.      ST. PAUL

The determinations of inferred resources at the St. Paul
property are summarized in the BC Technical Report as follows:

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

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

INDICATED
    RESOURCE
    ESTIMATEBLOCK
    SQ. FEET
    WIDTH FEET
    TONS
    GRADE OZ/TONDRILLED OFF
    62,500
    40
    200,000
    0.08


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

The following table uses the term inferred resources.
  Silverado advises U.S. investors that while this term is recognized and required
  by Canadian regulations (under National Instrument 43-101 Standards of Disclosure
  for Mineral Projects), the U.S. Securities and Exchange Commission does
  not recognize it. Inferred resources have a great amount of uncertainty
  as to their existence, and great uncertainty as to their economic and legal
  feasibility. It cannot be assumed that all or any part of an Inferred Mineral
  Resource will ever be upgraded to a higher category. Under Canadian rules, estimates
  of Inferred Mineral Resources may not form the basis of feasibility or pre-feasibility
  studies, except in rare cases.

- 40 -

---

U.S. investors are cautioned not to assume that part or all of an inferred
  resource exists, or is economically or legally mineable.

INFERRED
    RESOURCE
    ESTIMATEBLOCK
    SQ. FEET
    WIDTH FEET
    TONS
    GRADE OZ/TONBELOW INDICATED
    24,062
    40
    77,000
    0.08


Mr. Murton recommended that, when funds become available,
Silverado reassess the voluminous data base available on the properties before
planning future work. Mr. Murton concluded that the Ester Dome property does
have merit and warrants additional work.

EAGLE CREEK PROPERTY

1.      Location and Access

The Eagle Creek property is accessed by the Steese Highway, 10
miles north of Fairbanks, Alaska to Fox, Alaska, then traveling along the Elliot
highway 6 miles north to Murphy Dome Road, then west along Murphy Dome Road
about 5 miles to the property. A map illustrating the location and access to the
Eagle Creek property is provided below:

- 41 -

---



2.      Ownership Interest

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 until September 1, 2008. 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 $53,000 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). As of August 10, 2007 we had
  continued to make option payments on the Eagle Creek property, and as a result
  of this all of our mineral claims and options are in good standing.

- 42 -

---

3.      History of
Operations

Earliest work on the property started approximately in 1913,
with the original owner exploring for antimony. A number of companies have
explored the property from 1964 to the present.

During the early 1980s, geochemical surveys located anomalous
gold and antimony targets. Drilling conducted on the property during 1991 and
1992 resulted in the outlining definition of gold mineralization hosted in
intrusive rocks. Further in-fill drilling is necessary to determine continuity
of the gold bearing sequence, and to ascertain grades of gold within the
deposit. We will consider doing additional work on the gold-antimony bearing
veins upon which the property was founded.

4.      Present Condition of the
Property and Current State of Exploration

We did not complete any exploration activity on the Eagle Creek
property during 2007 other than assessment work and maintenance, however, an
exploration work plan that includes trenching and drilling was developed and
successfully permitted through the APMA process during 2007. However, extensive
exploration drilling has shown gold mineralization throughout the property.
Exploration of the Eagle Creek property is currently in the preliminary stages.

The Eagle Creek property is undeveloped and does not contain
any open-pit or underground mines. There is no plant or equipment located on the
Eagle Creek property. Currently, there is no power supply to the Eagle Creek
property, although GVEA power transmission lines run through the property and
could supply power in the event a facility is warranted for ore processing in
the future. Surface exploration work, including geochemical and geophysical
surveys is recommended to be continued as a means of tracing promising mineral
bearing rock units. Drilling is recommended to test the subsurface continuity
and gold content of the rock units.

5.      Geology

The Eagle Creek property is located within the same regional
geology as the Ester Dome property.

The Eagle Creek property is 90% underlain by late Proterozoic
to early Paleozoic sedimentary and volcanic rocks that have been metamorphosed
to greenschist facies. Dominant lithologies are quartz mica schist, micaceous
quartzite, graphitic phyllite and chlorite schist, with lesser calc-schist,
feldspathic schist, graphitic schist and minor quartz sericite schist.

- 43 -

---

The remaining 10% of the property is underlain by felsic
igneous rocks which intrude the schists in all sectors of the property.
Compositions range from biotite quartz monzonite to muscovite granite.
Porphyritic phases with quartz and feldspar phenocrysts are ubiquitous. Contact
relations observed from mapped distribution of granitic rock fragments in soil
and from diamond drill core indicate the intrusives are dikes and sills up to
200 thick.

6.     Estimates of Indicated and Inferred
  Resources

The BC Technical Report concluded that there are no mineral
resources or mineral reserves on the Eagle Creek property.

FEDERAL CLAIM MAINTENANCE FEES AND STATE CLAIM RENTALS

We pay an annual federal claim maintenance fee to the Bureau of
Land Management of $125 for each federal mineral claim that is owned by us or
held under a purchase or lease agreement. We paid aggregate annual federal claim
maintenance fees of $39,500 during fiscal 2005, $71,375 during fiscal 2006, and
$83,750 during 2007. The annual increases are due to the continued acquisition
of placer and lode claims that solidify and protect our land holdings in the
Koyukuk Mining District. We anticipate an amount similar to that paid for 2007
will be due in fiscal 2008.

Annual Alaska state claim rentals are due for each state mining
claim that is owned or held by us under a purchase or lease agreement. An annual
fee of $130 per claim is payable by us to the Alaska Department of Revenue for
each claim. We paid aggregate Alaska state claim rental fees of $15,945 during
fiscal 2004, 2005 and fiscal 2006 and $16,770 in fiscal 2007. We anticipate that
a similar amount will be paid in fiscal 2008.

GLOSSARY OF TERMS

The definitions of geological and technical terms used in this
Annual Report on Form 10-KSB are provided below:

|Amphibolite Facies  | An assemblage of minerals formed under medium to high
      pressure during regional metamorphism                              
|------------------- | -------------------------------------------------------------------------------------------------------------------------------
|                    |                                                                                                                                
|Arsenopyrite        | Mineral composed of iron, arsenic and sulphur.                                                                                 
|                    |                                                                                                                                
|Auriferous          | Containing gold.                                                                                                               
|                    |                                                                                                                                
|Bedrock             | Rock units which underlie unconsolidated surface
      overburden or soils.                                                    
|                    |                                                                                                                                
|Brecciated          | Rock composed of angular fragments held together in a
      matrix.                                                            
|                    |                                                                                                                                
|Calcareous Schist   | A laminated metamorphic rock containing calcium
      carbonate.                                                               
|                    |                                                                                                                                
|Chlorite Schist     | A laminated metamorphic rock containing prominent
      chlorite, which is a hydrated silicate of aluminum, iron and magnesium.
|                    |                                                                                                                                
|Chloritic Quartzite | A metamorphic rock composed primarily of quartz (silicon
      dioxide)                                                        

- 44 -

---

|                      | with minor chlorite (see previous entry).                                                                                                                                                                                                                                                                                                                                              
|--------------------- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|                      |                                                                                                                                                                                                                                                                                                                                                                                        
|Dikes                 | A tabular intrusive body of rock with a vertical or near
      vertical orientation.                                                                                                                                                                                                                                                                                                   
|                      |                                                                                                                                                                                                                                                                                                                                                                                        
|Diorite               | A body of intrusive rock composed of feldspars, amphibole
      and a small amount of quartz.                                                                                                                                                                                                                                                                                          
|                      |                                                                                                                                                                                                                                                                                                                                                                                        
|Dioritic Dikes        | See dikes. See diorite.                                                                                                                                                                                                                                                                                                                                                                
|                      |                                                                                                                                                                                                                                                                                                                                                                                        
|Dominant Lithology    | In a given area, the rock type occurring at the highest
      percentage.                                                                                                                                                                                                                                                                                                              
|                      |                                                                                                                                                                                                                                                                                                                                                                                        
|Drilling              | The process of boring a hole in the rock to obtain a
      sample for determination of metal content. Diamond Drillinginvolves the use of a hollow bit with diamonds on the cutting surface
      to recover a cylindrical core of rock. Reverse Circulation Drilling
      involves chips of rock being forced back through the center of the drill
      pipe using air or water.
|                      |                                                                                                                                                                                                                                                                                                                                                                                        
|Exploration           | The process of using prospecting, geological mapping,
      geochemical and geophysical surveys, drilling, sampling and other means to
      detect and perform initial evaluations of mineral deposits.                                                                                                                                                                               
|                      |                                                                                                                                                                                                                                                                                                                                                                                        
|Fairbanks Schist      | A grouping of metasedimentary rocks which underlie much
      of the Fairbanks District.                                                                                                                                                                                                                                                                                               
|                      |                                                                                                                                                                                                                                                                                                                                                                                        
|Federal Lode Claims,  | Mineral claims up to 20 acres, located on federal land
      under the U.S.                                                                                                                                                                                                                                                                                                            
|                      |                                                                                                                                                                                                                                                                                                                                                                                        
|Federal Placer Claims | Exploration Law of 1872. See below for definitions of
      Lode and Placer.                                                                                                                                                                                                                                                                                                       
|                      |                                                                                                                                                                                                                                                                                                                                                                                        
|Felsic                | A mnemonic adjective derived from (fe) for feldspar. (l)
      for feldpathoids and (s) for silica and is applied to light-colored rocks
      containing an abundance of one or all of these constituents.                                                                                                                                                                            
|                      |                                                                                                                                                                                                                                                                                                                                                                                        
|Geochemical Survey    | Sample of soil, rock, silt, water or vegetation analyzed
      to detect the presence of valuable metals or other metals which may
      accompany them. E.g., Arsenic may indicate the presence of gold.                                                                                                                                                                              
|                      |                                                                                                                                                                                                                                                                                                                                                                                        
|Geophysical Survey    | Electrical, magnetic and other means used to detect
      features, which may be associated with mineral deposits.                                                                                                                                                                                                                                                                     
|                      |                                                                                                                                                                                                                                                                                                                                                                                        
|Gold Deposit          | A concentration of gold in rock sufficient to be of
      economic interest.                                                                                                                                                                                                                                                                                                           
|                      |                                                                                                                                                                                                                                                                                                                                                                                        
|Granite               | An intrusive rock which includes feldspar, mica and
      quartz.                                                                                                                                                                                                                                                                                                                      
|                      |                                                                                                                                                                                                                                                                                                                                                                                        
|Graphitic Phyllite    | Metamorphic rock intermediate between slate and schist,
      and containing graphite (carbon).                                                                                                                                                                                                                                                                                        

- 45 -

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|Greenschist Facies  | An assemblage of minerals formed under low to medium
      pressure during regional metamorphism.                                                                                                                                                                                                                                                                                                                                                                              
|------------------- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|                    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                
|Host Rocks          | A term used for a rock unit which, as a result of
      favorable structural or chemical characteristics, provides an environment
      for precipitation or deposition of metals or other foreign materials.                                                                                                                                                                                                                                                                  
|                    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                
|Lode Source         | The lode mineral deposit from which placer minerals have
      been derived by erosion.                                                                                                                                                                                                                                                                                                                                                                                        
|                    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                
|Lode                | Mineral in place in the host rock, as in lode gold.                                                                                                                                                                                                                                                                                                                                                                                                                          
|                    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                
|Metamorphic Complex | A grouping of metamorphic rocks which have complicated
      structural relationships.                                                                                                                                                                                                                                                                                                                                                                                         
|                    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                
|Metamorphism        | Processes, including pressure, heat and introduction of
      new chemical substances, by which consolidated rocks are changed from one
      form to another.                                                                                                                                                                                                                                                                                                                 
|                    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                
|Metasedimentary     | Partially metamorphosed sedimentary rocks.                                                                                                                                                                                                                                                                                                                                                                                                                                     
|                    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                
|Metasiltsone        | A rock formed from consolidated silt, which has been
      partially changed to schist.                                                                                                                                                                                                                                                                                                                                                                                        
|                    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                
|Micaceous Quartzite | A metamorphic rock, mostly quartz with minor mica.                                                                                                                                                                                                                                                                                                                                                                                                                             
|                    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                
|Micaceous           | Containing mica, usually referring to metamorphic rocks.                                                                                                                                                                                                                                                                                                                                                                                                                       
|                    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                
|Mineral Claims      | General term used to describe the manner of land
      acquisition under which the right to explore, develop and extract metals
      is established.                                                                                                                                                                                                                                                                                                                          
|                    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                
|Mineral reserve     | Securities and Exchange Commission Industry Guide 7
      Description of Property by Issuers Engaged or to be Engaged in Significant
      Mining Operations of the Securities and Exchange Commission defines a
      reserve as that part of a mineral deposit which could be economically and
      legally extracted or produced at the time of the reserve determination.
      Reserves consist of:                                                                     
|                    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                
|                    | (1) Proven (Measured) Reserves. Reserves for which: (a)
      quantity is computed from dimensions revealed in outcrops, trenches,
      workings or drill holes; grade and/or quality are computed from the
      results of detailed sampling; and (b) the sites for inspection, sampling
      and measurement are spaced so closely and the geologic character is so
      well defined that size, shape, depth and mineral content of reserves are
      well-established.
|                    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                
|                    | (2) Probable (Indicated) Reserves. Reserves for which
      quantity and grade and/or quality are computed from information similar to
      that used for proven (measured) reserves, but the sites for inspection,                                                                                                                                                                                                                                                           

- 46 -

---

|                 | sampling and measurement are farther apart or are
      otherwise less adequately spaced. The degree of assurance, although lower
      than that for proven (measured) reserves, is high enough to assume
      continuity between points of observation.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       
|---------------- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|                 |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  
|Mineral resource | National Instrument 43-101 Standards of Disclosure for
      Mineral Projects of the Canadian Securities Administrators defines a
      Mineral Resource as a concentration or occurrence of natural, solid,
      inorganic or fossilized organic material in or on the Earths crust in
      such form and quantity and of such a grade or quality that it has
      reasonable prospects for economic extraction. The location, quantity,
      grade, geological characteristics and continuity of a mineral resource are
      known, estimated or interpreted from specific geological evidence and
      knowledge.                                                                                                                                    
|                 |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  
|                 | Mineral Resources are sub-divided, in order of increasing
      geological confidence, into Inferred, Indicated and Measured categories.
      An Inferred Mineral Resource has a lower level of confidence than that
      applied to an Indicated Mineral Resource. An Indicated Mineral Resource
      has a higher level of confidence than an Inferred Mineral Resource but has
      a lower level of confidence than a Measured Mineral Resource.                                                                                                                                                                                                                                                                                                         
|                 |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  
|                 | (1) Inferred Mineral Resource. An Inferred Mineral
      Resource is that part of a Mineral Resource for which quantity and grade
      or quality can be estimated on the basis of geological evidence and
      limited sampling and reasonably assumed, but not verified, geological and
      grade continuity. The estimate is based on limited information and
      sampling gathered through appropriate techniques from locations such as
      outcrops, trenches, pits, workings and drill holes.                                                                                                                                                                                                                                                   
|                 |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  
|                 | (2) Indicated Mineral Resource.An Indicated
      Mineral Resource is that part of a Mineral Resource for which quantity,
      grade or quality, densities, shape and physical characteristics can be
      estimated with a level of confidence sufficient to allow the appropriate
      application of technical and economic parameters, to support mine planning
      and evaluation of the economic viability of the deposit. The estimate is
      based on detailed and reliable exploration and testing information
      gathered through appropriate techniques from locations such as outcrops,
      trenches, pits, workings and drill holes that are spaced closely enough
      for geological and grade continuity to be reasonably assumed.
|                 |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  
|                 | (3) Measured Mineral Resource.A Measured Mineral
      Resource is that part of a Mineral Resource for which quantity, grade or
      quality, densities, shape, physical characteristics are so well
      established that they can be estimated with confidence sufficient to allow
      the appropriate application of technical and economic parameters, to
      support production planning and evaluation of the economic viability                                                                                                                                                                                                                                                                                                                   

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|                                   | of the deposit. The estimate is based on detailed and
      reliable exploration, sampling and testing information gathered through
      appropriate techniques from locations such as outcrops, trenches, pits,
      workings and drill holes that are spaced closely enough to confirm both
      geological and grade continuity.
|---------------------------------- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|                                   |                                                                                                                                                                                                                                                                                                                                       
|                                   | Industry Guide 7  Description of Property by Issuers
      Engaged or to be Engaged in Significant Mining Operationsof
      the Securities and Exchange Commission does not define or recognize
      resources. As used in this Annual Report on Form 10-KSB, resourcesare as defined in National Instrument 43-101.           
|                                   |                                                                                                                                                                                                                                                                                                                                       
|Muscovite                          | A light coloured mica.                                                                                                                                                                                                                                                                                                                
|                                   |                                                                                                                                                                                                                                                                                                                                       
|Phyllite                           | An argillaceous rock intermediate between slate and
      schist.                                                                                                                                                                                                                                                                     
|                                   |                                                                                                                                                                                                                                                                                                                                       
|Placer                             | Mineral, which has been separated from its host rock by
      natural processes and is often reconcentrated in streams as placer
      deposits or placer gold.                                                                                                                                                                   
|                                   |                                                                                                                                                                                                                                                                                                                                       
|Porphyritic Phases                 | Areas of rock in which one or more minerals occur as
      larger crystals in a relatively finer groundmass.                                                                                                                                                                                                                          
|                                   |                                                                                                                                                                                                                                                                                                                                       
|Pyrite                             | A mineral containing iron and sulphur.                                                                                                                                                                                                                                                                                                
|                                   |                                                                                                                                                                                                                                                                                                                                       
|Quartzite                          | A metamorphic rock composed mostly of quartz (silicon
      dioxide)                                                                                                                                                                                                                                                                  
|                                   |                                                                                                                                                                                                                                                                                                                                       
|Quartz-Mica Schist Resistivity Low | A laminated metamorphic rock with roughly equal quartz
      and mica. In geophysical surveying, an area with higher electromagnetic
      conductivity than the surrounding area.                                                                                                                                                    
|                                   |                                                                                                                                                                                                                                                                                                                                       
|Schist                             | Flat plate-like metamorphic rock formations, which
      contain primarily mica.                                                                                                                                                                                                                                                      
|                                   |                                                                                                                                                                                                                                                                                                                                       
|Slate                              | A metamorphosed mudstone.                                                                                                                                                                                                                                                                                                             
|                                   |                                                                                                                                                                                                                                                                                                                                       
|State Claims                       | Mineral claims up to 40 acres, located on State of Alaska
      lands.                                                                                                                                                                                                                                                                
|                                   |                                                                                                                                                                                                                                                                                                                                       
|Stibnite                           | A mineral composed of antimony and sulphur.                                                                                                                                                                                                                                                                                           
|                                   |                                                                                                                                                                                                                                                                                                                                       
|Stocks                             | Small intrusive bodies of rock.                                                                                                                                                                                                                                                                                                       
|                                   |                                                                                                                                                                                                                                                                                                                                       
|**Thrust Fault Contact**           | One rock type pushed over top of
      another at a relatively low angle.                                                                                                                                                                                                                                                             

ITEM 3. LEGAL PROCEEDINGS.

We currently are not a party to any pending legal proceedings
and, to our knowledge, there are no legal proceedings are threatened or
contemplated.

- 48 -

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

No matters were submitted to a vote of our security holders,
through the solicitation of proxies or otherwise, during our fourth quarter
ended November 30, 2007.

PART II

|ITEM 5. | MARKET FOR COMMON EQUITY AND RELATED STOCKHOLDER
      MATTERS AND SMALL BUSINESS ISSUER PURCHASES OF EQUITY
      SECURITIES
|------- | -----------------------------------------------------------------------------------------------------------------------------

Our common shares are quoted on the OTC Bulletin Board under
the symbol SLGLF, on the Berlin Stock Exchange under the symbol SLGL, and on
the Frankfurt Stock Exchange under the symbol SLGL. The following table
indicates the range of high and low bid information of our common shares for
each quarter within the last two fiscal years:

**OTCBB:**QUARTER ENDED
      HIGH BID
      LOW BIDNovember 30, 2005
      $0.07
      $0.04February 28, 2006
      $0.21
      $0.05May 31, 2006
      $0.17
      $0.10August 31, 2006
      $0.11
      $0.06November 30, 2006
      $0.08
      $0.05February 28, 2007
      $0.14
      $0.06May 31, 2007
      $0.16
      $0.09August 31, 2007
      $0.11
      $0.06November 30, 2007
      $0.09
      $0.07**BERLIN:**QUARTER ENDED
      HIGH BID
      LOW BIDNovember 30, 2005
      $0.06
      $0.03February 28, 2006
      $0.15
      $0.04May 31, 2006
      $0.13
      $0.08August 31, 2006
      $0.08
      $0.04November 30, 2006
      $0.06
      $0.04February 28, 2007
      $0.14
      $0.06May 31, 2007
      $0.016
      $0.09August 31, 2007
      $0.11
      $0.06November 30, 2007
      $0.09
      $0.07**FRANKFURT**QUARTER ENDED
      HIGH BID
      LOW BIDNovember 30, 2005
      $0.06
      $0.03February 28, 2006
      $0.16
      $0.04May 31, 2006
      $0.13
      $0.07


- 49-

---

August
      31, 2006
    $0.08
    $0.05November 30, 2006
    $0.06
    $0.04February 28, 2007
    $0.11
    $0.05May 31, 2007
    $0.12
    $0.07August
      31, 2007
    $0.08
    $0.04November 30, 2007
    $0.07
    $0.05


The source of the high and low bid information is the NASD OTC
Bulletin Board. The market quotations provided reflect inter-dealer prices,
without retail mark-up, markdown or commission and may not represent actual
transactions.

Holders

As at February 21, 2008 we had 926,270,430 common shares issued
and outstanding that were held by approximately 4,000 registered holders.

Dividends

We have not declared any dividends on our common stock in our
two most recent fiscal years.

We are restricted in our ability to pay dividends by
limitations under British Columbia law relating to the sufficiency of profits
from which dividends may be paid. In addition, Silverados Articles (the
equivalent of the Bylaws of a United States corporation) provide that no
dividend shall be paid otherwise than out of funds or assets properly available
for the payment of dividends and declaration by the directors as to the amount
of such funds or assets available for dividends shall be conclusive.

Securities Authorized For Issuance Under Equity Compensation
  Plans

Set forth in the table below is information regarding
outstanding equity awards made through equity compensation plans as of the end
of the most recently completed fiscal year.

Equity Compensation Plan Information

|Plan Category                                                    | Number of securities to be
      issued upon exercise of outstanding
      options, warrants, and rights | Weighted average exercise
      price of outstanding options,
      warrants, and rights | Number of securities
      available for future plan issuance
|---------------------------------------------------------------- | -------------------------------------------------------------------------------------------------------- | ---------------------------------------------------------------------------------------- | -------------------------------------------------------------
|Equity compensation plans
      approved by security holders     | N/A                                                                                                      | N/A                                                                                      | N/A                                                          
|Equity compensation plans not approved by
      security holders |                                                                                                          |                                                                                          |                                                              
|2007 Stock Option Plan                                           | 25,000,000                                                                                               | $0.07                                                                                    | 3,500,000                                                    
|2006-II Stock Option Plan                                        | 27,300,000                                                                                               | $0.07                                                                                    | 700,000                                                      
|*2006 Stock Option Plan*                                         | 31,100,000                                                                                               | $0.05                                                                                    | 5,900,000                                                    

- 50 -

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On January 11, 2007, our Board of Directors adopted the 2007
Stock Option Plan (the "2007 Plan"). The 2007 Plan authorizes the issuance of
options to purchase our common stock to directors, officers, employees, and
eligible consultants. We reserved 25,000,000 shares of our Common Stock for
awards to be made under the 2007 Plan. On February 20, 2007, we filed a
registration statement on Form S-8 to register all 25,000,000 of such shares.
The 2007 Plan is to be administered by a committee of two or more members of the
Board of Directors. The 2007 Plan allows for the issuance of incentive stock
options (which can only be granted to employees) and non-qualified stock
options. The committee shall determine the type of option granted, the exercise
price, the option term (which may be no more than ten years), and terms and
conditions of exercisability.

On March 29, 2006, our Board of Directors adopted the 2006-II
Stock Option Plan (the "2006-II Plan"). The 2006-II Plan authorizes the issuance
of options to purchase our common stock to directors, officers, employees, and
eligible consultants. We reserved 28,000,000 shares of our Common Stock for
awards to be made under the 2006-II Plan. On March 31, 2006, we filed a
registration statement on Form S-8 to register all 28,000,000 of such shares.
The 2006-II Plan is to be administered by a committee of one or more members of
the Board of Directors, and Mr. Garry L. Anselmo and Mr. James F. Dixon were
named members of the committee charged with administering the 2006-II Plan. The
2006-II Plan allows for the issuance of incentive stock options (which can only
be granted to employees) and non-qualified stock options. The committee shall
determine the type of option granted, the exercise price, the option term (which
may be no more than ten years), and terms and conditions of exercisability.

On January 4, 2006, our Board of Directors adopted the 2006
Stock Option Plan (the "2006 Plan"). The 2006 Plan authorizes the issuance of
options to purchase our common stock to directors, officers, employees, and
eligible consultants. We reserved 37,000,000 shares of our Common Stock for
awards to be made under the 2006 Plan. On April 11, 2006, we filed a
registration statement on Form S-8 to register all 37,000,000 of such shares.
The 2006 Plan is to be administered by a committee of two or more members of the
Board of Directors. The 2006 Plan allows for the issuance of incentive stock
options (which can only be granted to employees) and non-qualified stock
options. The committee shall determine the type of option granted, the exercise
price, the option term (which may be no more than ten years), and terms and
conditions of exercisability.

Recent Sales of Unregistered Securities

We have not sold any unregistered securities during the last
fiscal year other than those we previously reported in Quarterly Reports on Form
10-QSB or Current Reports on Form 8-K and filed with the Securities and Exchange
Commission.

ITEM 6. MANAGEMENT'S DISCUSSION AND ANALYSIS OR PLAN
OF OPERATION.

PLAN OF OPERATION

Our plan of operation for the next twelve months is as
follows:

- 51 -

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The Nolan Gold Project

We are continuing our exploration program on the Nolan Gold
Project. The objective of this exploration program is to continue with tunneling
into the Workmans Bench mineralized zone to intersect the 80 foot wide zone
that contains gold bearing antimony-quartz veins. The company intends to collect
a bulk sample from the mineralized zone for metallurgical test work. The
underground exposure of the mineralized zone will play an important key role for
the company in obtaining a better understanding of the nature of the
structurally controlled gold and antimony mineralization in the Solomon Shear
Zone. This will significantly support Silverados exploration strategy. The
underground work will continue until the end of January, 2008.

Reclamation work will be in progress throughout the summer and
into fall. Our objective will be to reclaim 10 acres of disturbed surface area,
while limiting 2008 surface disturbance to 5 acres or less. We work closely with
the government agencies responsible for managing the lands that we work, and
pride ourselves in being responsive and responsible stewards of the land.

Our drilling program will be aimed at lode gold and antimony
exploration, and placer gold 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. Further exploration drilling will be conducted in the
Fortress area which is part of a gold bearing east-west trending deformation
zone. Placer drilling will focus on a series of targets on the hillside benches.
Our exploration work will provide a basis for the assessment of the feasibility
of future additional exploration activities, including test mining activities,
at the Nolan Gold Project.

Our exploration plans are to further define gold deposits in
order to provide a basis for the assessment of the feasibility of future
additional test mining activities at the Nolan project. We are currently
undertaking an extensive geological exploration program on the Nolan Gold
Project. The program includes drilling and trenching, as well as the review of
geological and geophysical data. The overall objectives of our exploration
program are as follows:

| | 1. | To identify surface or sub-surface placer deposits at our
      Nolan Gold Project that are prospective for test mining operations. In
      general, these deposits are located on benches that are ancient river beds
      and lakeshore deposits located above the present channel of Nolan Creek.
      These deposits include Marys Bench, Jack London Bench, Wooll Bench,
      Workmans Bench, Swede Channel, Upper Nolan Creek (deep channel), Lower
      Nolan Bench and Marys East including areas adjoining to the north, east
      and south. The objectives of our drilling program will include the
      determination of the nature and extent of areas of known bench deposits
      that are prospects for test mining operations and the identification of
      new bench deposits that may be prospects for test mining operations.
      Marys Bench East and areas adjoining north, east and south as well as,
      the Swede Channel and the areas adjoining to the east and south, in that
      order, are our exploration priorities as they have showed the most
      positive results from earlier exploration that we have completed. Wooll
      Bench and Workmans Bench have been less extensively explored with only
      limited drilling. The Lower Nolan Bench has not been drilled. The newly
      discovered Jack London Bench may
| | -- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

- 52 -

---

| |    | also be a priority target during fiscal 2008.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   
| | -- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 
| | 2. | To determine whether there is a potential lode gold and
      antimony deposit which may be the source of the placer gold found on the
      Nolan Gold Project. A lode deposit of gold occurs when gold is present in
      its host rock as differentiated from placer gold which is gold that has
      been removed from its host rock by the process of erosion. Our reverse
      circulation and diamond core drilling, trenching, geologic and geophysical
      work will be part of our on-going investigations to determine whether
      there exist one or more lode deposits on the Nolan Gold project that could
      be the source of our placer gold deposits.
| |    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 
| | 3. | To identify any placer deposits at Slisco Bench, which is
      located on our Hammond River property that are prospective for test mining
      operations. The Slisco Bench (deep channel) deposit is approximately 3 to
      4 miles northeast of the Nolan Deep Channel.                                                                                                                                                                                                                                                                                                                                                                                                   

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.

We plan to spend up to $5,000,000 in the next twelve months in
carrying out our exploration activities for the Nolan Gold Project. Of this
amount, we anticipate approximately $3,000,000 will be spent on test mining
activities, with the balance being spent on maintaining our properties, and
other exploration activities, including placer drilling, and lode drilling and
trenching on the Solomons Shear. 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 sufficient financing to enable us to
proceed with these plans and will require additional financing if we are able to
proceed with our exploration plans, including our ongoing underground test
mining activities. Further, while the amount of exploration expenditures may be
off-set by any recoveries from sales of gold that we may achieve from test
mining activities, we anticipate that these recoveries will not exceed our costs
of exploration. However, at this time we are achieving recoveries from sales of
gold.

Our plan of operations at the Nolan Gold Project will be continually
  evaluated and modified as exploration and gold recovery results become available.
  Modifications to our plans will be based on many factors, including: results
  of exploration, assessment of data, weather conditions, exploration costs, the
  price of gold and available capital. Further, the extent of our exploration
  programs that we undertake will be dependent upon the amount of financing available
  to us.

- 53 -

---

We do not have any commercially viable reserves on any of our
  properties that comprise the Nolan Gold Project or any of our other properties.
  We plan to carry out exploration activities on the Nolan Gold Project that are
  referred to as test mining activities. The objective of the
  test mining activities on the Nolan Gold Project is to expand our knowledge
  of the placer deposits and lode gold occurrences on the Nolan Gold Project and
  to develop a cost effective method for working the deposits. While the irregular
  high grade nature of these deposits may preclude attainment of reserve
  categories; management does believe that we may be attaining profitability presently
  or soon, depending on the considerable increase of recovered gold this year
  anticipated over last. Profitability is the objective, while at the minimum
  we endeavor to pay for a portion of the expense associated with exploration
  of the Nolan Gold Project. As we have not established commercially viable reserves
  on the Nolan Gold Project, we anticipate that recoveries of gold from test mining
  activities may not be sufficient to pay for the full cost of exploration. There
  is no assurance that our test mining activities will result in a final evaluation
  that a commercially viable lode or placer mineral deposit exists on any of our
  mineral properties that comprise the Nolan Gold Project.

Ester Dome Property

During 2008, we plan to complete 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 2008 exploration work plan will be contingent on
available funding.

Hammond Property

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. During the summer of 2008, a series of drill holes may be completed
to explore for the extension of the Slisco Channel to the south. Presently, it
has been traced for 1,800 feet. The drill program will also seek to define any
gold bearing tributaries to the Slisco Channel.

This project will require additional funding for the company.
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.

Eagle Creek Property

During 2008, annual assessment work will be completed on the
  Eagle Creek property to keep the mining claims in good standing. Assessment
  work will be focused on the northwest part of the claim block, where drilling
  and trenching has defined an intrusive host rock, thought to be a sill, containing
  low grade gold, silver and antimony mineralization. If funding permits, the
  company will design a drilling program to further investigate the gold and by-product
  mineral distribution of the intrusive. Additional work which includes trenching
  and drilling will also be completed on the Number One. The Number One Vein was
  the lode quartz structure which has been mined commercially for antimony.

- 54 -

---

be defined. 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.

Completing the 2008 work plan will be contingent on available
  funding. Even if funding becomes available, there is no assurance that a commercial
  gold-silver-antimony deposit will

Low-Rank Coal-Water Fuel Project

On December 18, 2006, Silverado Green Fuel Inc. announced the
signing of a Memorandum of Understanding (MOU) between Choctaw County, the
Choctaw County Economic Development District, the Mississippi Development
Authority (MDA) and Silverado Green Fuel Inc. The MOU is an agreement to build
the countrys first Low-Rank Coal-Water fuel commercial demonstration plant at
the Red Hills Ecoplex just outside of Ackerman, MS. The anticipated $26 million
Silverado Green Fuel Demonstration Project will be located on a 14-acre site,
and is being designed to utilize the state's vast supply of low-rank coal
reserves by converting them into green fuel, a new form of coal-based,
environmentally friendly, low-cost, alternative fuel.

During late May of 2007 Silverado environmental staff met in a
pre-permitting meeting with representatives of the Mississippi Department of
Environmental Quality (MDEQ). At that meeting all the various sections of MDEQ
that would be involved in the permitting of the Green Fuel industrial process
were present, representatives of these sections were assigned to our project,
and the lead MDEQ regulator that will serve as our point-of-contact was
designated.

As we await full funding of the project, preliminary work on
aspects of the various permits involved will continue during fiscal 2008. The
development of an Environmental Management System (EMS) that was initiated in
2007 upon the signing of the MOU will also continue during fiscal 2008.
Silverado has also agreed to fund a study by the University of Alaska Fairbanks
of the chemical and physical characteristics of Mississippi lignite coal, and it
is anticipated that that study will commence during fiscal 2008.

There is no assurance that any financing will be obtained from
either government or private sources to fund this project. It is the case,
however, that two divisions of the state of Mississippi government have agreed
to begin funding the start-up of our demonstration facility subject to certain
terms and conditions as outlined in the MOU.

We expect to spend approximately $171,500 to fund the research
into lignite coal conversion in conjunction with the University of Fairbanks,
Alaska, referred to above, and the preparation of a Phase I feasibility study
and cost estimate for the Mississippi Commercial Low Rank Coal Water Fuel plant.
In addition we expect to incur administration costs of approximately $150,000
relating to the Green Fuel project.

Cash Requirements and Additional Financings

At November 30, 2007, we had working capital of $1,759,774.
During the first quarter of 2008 we raised $3,860,388 in additional share
capital. Our plan of mining operations in Alaska anticipates that we will expend
$6,550,000 during fiscal year 2008. In addition, we expect to spend $321,500 on
research and development for the Green Fuel project and approximately $2,000,000
on administrative costs in the Companys Vancouver office.

- 55 -

---

Our management is confident that they will be able to raise additional
  capital during the second, third and fourth quarters of Fiscal 2008 to cover
  the resulting anticipated shortfall of approximately $3,250,000. However, there
  is no assurance that we will be able to raise the financing necessary to enable
  us to implement our business plan.

Planned operations as described above could be curtailed if funding
  were not available. In addition, as of the date of this filing gold is trading
  above the spot price used to value the Company's inventory at November 30, 2007.
  Furthermore, historically, the Company has sold its gold inventory at a premium
  to the spot price. These benefits, although presently determinable, would serve
  to further reduce the anticipated shortfall.

CRITICAL ACCOUNTING POLICIES

Exploration Stage Company

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

Mineral claim payments and exploration costs

We expense all costs related to the acquisition, maintenance
and exploration of mineral claims in which we have secured exploration rights
prior to establishment of proven and probable reserves. To date, we have not
established the commercial feasibility of our exploration prospects, therefore,
all costs are being expensed.

Asset retirement obligation

Effective December 1, 2002, we adopted SFAS 143, Accounting for
Asset Retirement Obligations, which addresses financial accounting and reporting
for obligations associated with the retirement of tangible long-lived assets and
the associated retirement costs. The standard applies to legal obligations
associated with the retirement of long-lived assets that result from the
acquisition, construction, development and normal use of the asset.

SFAS No. 143 requires that the fair value of a liability for an
asset retirement obligation be recognized in the period in which it is incurred
if a reasonable estimate of fair value can be made. The fair value of the
liability is added to the carrying amount of the associated asset and this
additional carrying amount is depreciated over the life of the asset. The
liability is accreted at the end of each period through charges to operating
expense. If the obligation is settled for other than the carrying amount of the
liability, we will recognize a gain or loss on settlement.

Stock Based Compensation

Effective November 1, 2002, we adopted the fair value recognition
  provisions of FASB Statement No. 123, Accounting for Stock-Based Compensation.
  Under the modified prospective method of adoption selected by us under the provisions
  of FASB Statement No. 148, Accounting for Stock-Based Compensation  Transition
  and Disclosure, compensation cost recognized in 2003 is the same as that which
  would have been recognized had the recognition provisions of Statement 123 been
  applied from its original effective date. Results for prior years have not been
  restated. The value of shares issued to non-employees for services is measured
  at the date the services are performed.

- 56 -

---

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.

ITEM 7. FINANCIAL STATEMENTS.

Our audited financial statements for the year ended November
30, 2007, as set forth below, are included with this Annual Report on Form
10-KSB. Our audited financial statements are prepared on the basis of accounting
principles generally accepted in the United States and are expressed in U.S.
dollars.

|                                                                                                                                                                                                                                         | Page             
|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | -----------------
|                                                                                                                                                                                                                                         |                  
|Report
      of Independent Registered Public Accounting Firm                                                                                                                                                                            | F-1              
|                                                                                                                                                                                                                                         |                  
|Consolidated
      Balance Sheets as of November 30, 2007 and 2006                                                                                                                                                                       | F-2              
|                                                                                                                                                                                                                                         |                  
|Consolidated
      Statements of Operations and other Comprehensive Loss for the Years Ended
      November 30, 2007 and 2006 and for the period since Recommencement of
      Exploration Stage, December 1, 2001, to November 30, 2007 | F-3              
|                                                                                                                                                                                                                                         |                  
|Consolidated
      Statement of Stockholders Equity for the years from Recommencement of
      Exploration Stage, December 1, 2001, to November 30, 2007                                                                                | F-4
      to F-10
|                                                                                                                                                                                                                                         |                  
|Consolidated
      Statements of Cash Flows for the Years Ended November 30, 2007 and 2006
      and for the period since Recommencement of Exploration Stage, December 1,
      2001, to November 30, 2007                              | F-11             
|                                                                                                                                                                                                                                         |                  
|Notes
      to Consolidated Financial Statements                                                                                                                                                                                         | F-12 to F-24     

- 57 -

---

REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING
FIRM

To the Board of Directors and Stockholders of Silverado Gold
Mines Ltd.

(An Exploration Stage Company)

We have audited the accompanying consolidated balance sheets of
Silverado Gold Mines Ltd. and Subsidiaries (An Exploration Stage Company) as of
November 30, 2007 and 2006, and the related consolidated statements of
operations and other comprehensive loss, stockholders equity, and cash flows
for the years then ended. These consolidated financial statements are the
responsibility of the companys management. Our responsibility is to express an
opinion on these financial statements based on our audits. Our opinion on the
consolidated statements of operations and other comprehensive loss,
stockholders equity, and cash flows for the period since recommencement of the
exploration stage, December 1, 2001 to November 30, 2007 insofar as it relates
to amounts for the prior periods through November 30, 2004 is based on the
reports of other auditors.

We conducted our audits in accordance with the standards of the
Public Company Accounting Oversight Board (United States). Those standards
require that we plan and perform the audits to obtain reasonable assurance about
whether the financial statements are free of material misstatement. The company
is not required to have, nor were we engaged to perform, an audit of its
internal control over financial reporting. Our audits included consideration of
internal control over financial reporting as a basis for designing audit
procedures that are appropriate in the circumstances, but not for the purpose of
expressing an opinion on the effectiveness of the companys internal control
over financial reporting. Accordingly, we express no such opinion. An audit also
includes examining, on a test basis, evidence supporting the amounts and
disclosures in the financial statements, assessing the accounting principles
used and significant estimates made by management, as well as evaluating the
overall financial statement presentation. We believe that our audits provide a
reasonable basis for our opinion.

In our opinion, the consolidated financial statements referred
to above present fairly, in all material respects, the financial position of
Silverado Gold Mines Ltd. and Subsidiaries (An Exploration Stage Company) as of
November 30, 2007 and 2006, and the results of its operations and its cash flows
for the years then ended in conformity with accounting principles generally
accepted in the United States of America.

/s/ Berkovits & Company, LLPFort
Lauderdale, Florida February 21, 2008

F-1

---

SILVERADO GOLD MINES LTD.(An Exploration Stage
Company) CONSOLIDATED BALANCE SHEETSNovember 30, 2007 and 2006
(Stated in United States Dollars)

|                                                            |   | 2007        |   |   | 2006        |  
|----------------------------------------------------------- | - | ----------- | - | - | ----------- | -
|**ASSETS**                                                  |  
|                                                            |   |             |   |   |             |  
|Current Assets                                              |   |             |   |   |             |  
|Cash and cash equivalents                                   | $ | 1,073,457   |   | $ | 3,509,418   |  
|Gold inventory                                              |   | 2,347,946   |   |   | 511,629     |  
|Other receivables                                           |   | 294,505     |   |   | 9,972       |  
|Total Current Assets                                        |   | 3,715,908   |   |   | 4,031,019   |  
|                                                            |   |             |   |   |             |  
|Property, plant and equipment, net                          |   | 2,158,379   |   |   | 1,053,533   |  
|                                                            |   |             |   |   |             |  
|Total Assets                                                | $ | 5,874,287   |   | $ | 5,084,552   |  
|                                                            |   |             |   |   |             |  
|LIABILITIES                                                 |  
|Current Liabilities                                         |   |             |   |   |             |  
|Accounts payable and accrued
      liabilities              | $ | 210,404     |   | $ | 332,229     |  
|Mineral claims royalty payable                              |   | 360,000     |   |   | 380,000     |  
|Payable to related party                                    |   | 1,214,717   |   |   | 359,834     |  
|Convertible debentures                                      |   | 140,000     |   |   | 140,000     |  
|Capital lease obligation,
      current portion             |   | 31,013      |   |   | 129,286     |  
|                                                            |   |             |   |   |             |  
|Total Current Liabilities                                   |   | 1,956,134   |   |   | 1,341,349   |  
|Asset retirement obligation                                 |   | 529,311     |   |   | 521,058     |  
|Capital lease obligations                                   |   | -           |   |   | 247,129     |  
|                                                            |   |             |   |   |             |  
|Total Liabilities                                           |   | 2,485,445   |   |   | 2,109,536   |  
|                                                            |   |             |   |   |             |  
|STOCKHOLDERS EQUITY                                        |  
|Common stock                                                |   |             |   |   |             |  
|Authorized: unlimited common shares
      with no par value |   |             |   |   |             |  
|Issued and outstanding:                                     |   |             |   |   |             |  
|785,607,717 common shares (2006:
      630,785,052)         |   | 89,374,641  |   |   | 82,538,598  |  
|Additional paid-in capital                                  |   | 1,200,408   |   |   | 466,314     |  
|Common stock to be issued                                   |   | 275,136     |   |   | 273,600     |  
|Accumulated deficit during exploration stage                |   | (87,461,343 | ) |   | (80,303,496 | )
|                                                            |   |             |   |   |             |  
|Total Stockholders Equity                                  |   | 3,388,842   |   |   | 2,975,016   |  
|                                                            |   |             |   |   |             |  
|Total Liabilities and Stockholders Equity                  | $ | 5,874,287   |   | $ | 5,084,552   |  

THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL
STATEMENTS

F-2

---

SILVERADO GOLD MINES LTD.(An Exploration Stage
Company)
  CONSOLIDATED STATEMENTS OF OPERATIONS AND OTHER COMPREHENSIVE GAIN (LOSS) 
  for the years ended November 30, 2007 and 2006 
  (Stated in United
States Dollars)

|                                                     |   |                               |   |   |                  |   |   | Period Since      |  
|---------------------------------------------------- | - | ----------------------------- | - | - | ---------------- | - | - | ----------------- | -
|                                                     |   |                               |   |   |                  |   |   | Recommencement Of |  
|                                                     |   |                               |   |   |                  |   |   | Exploration Stage |  
|                                                     |   | Years
      ended November 30 |   |   | December 1, 2001 |  
|                                                     |   |                               |   |   |                  |   |   | To November 30,   |  
|                                                     |   | 2007                          |   |   | 2006             |   |   | 2007              |  
|General and Administrative Expenses                  |   |                               |   |   |                  |   |   |                   |  
|Accounting and audit                                 | $ | 106,298                       |   | $ | 109,623          |   | $ | 389,935           |  
|Advertising and promotion                            |   | 928,416                       |   |   | 327,082          |   |   | 2,733,015         |  
|Consulting fees                                      |   | 1,157,569                     |   |   | 1,223,060        |   |   | 6,763,859         |  
|Depreciation, accretion
      and impairment         |   | 255,264                       |   |   | 226,587          |   |   | 2,225,511         |  
|Exploration expenses - net of gold proceeds
      of |   | 1,241,181                     |   |   | 3,252,320        |   |   | 13,120,861        |  
|$1,169,509
      (2006: $87,357) and inventory       |   |                               |   |   |                  |   |   |                   |  
|change of $1,836,317 (2006: nil)                     |   |                               |   |   |                  |   |   |                   |  
|Financing activities                                 |   | 50,000                        |   |   | -                |   |   | 302,003           |  
|Interest on convertible debentures                   |   | 11,200                        |   |   | 11,200           |   |   | 695807            |  
|Interest on capital lease
      obligations          |   | 16,518                        |   |   | 43,187           |   |   | 317,294           |  
|Legal                                                |   | 175,758                       |   |   | 264,169          |   |   | 711,415           |  
|Management services                                  |   | 1,367,652                     |   |   | 1,028,335        |   |   | 4,318,506         |  
|Office                                               |   | 1,041,794                     |   |   | 941,372          |   |   | 3,770,110         |  
|Other interest and bank
      charges                |   | 10,990                        |   |   | 8,845            |   |   | 47,472            |  
|Reporting and investor relations                     |   | 228,604                       |   |   | 197,147          |   |   | 540,390           |  
|Research                                             |   | 34,313                        |   |   | 129,698          |   |   | 769,690           |  
|Stock-based compensation                             |   | 734,094                       |   |   | -                |   |   | 734,094           |  
|Transfer agent fees and
      mailing                |   | 59,443                        |   |   | 60,688           |   |   | 211,480           |  
|Write-off of mineral claim expenditures              |   | -                             |   |   | -                |   |   | 1,159,529         |  
|Write-down of property,
      plant and equipment    |   | -                             |   |   | -                |   |   | 285,875           |  
|                                                     |   |                               |   |   |                  |   |   |                   |  
|Total General and Administrative Expenses            |   | 7,419,094                     |   |   | 7,823,313        |   |   | 39,096,846        |  
|                                                     |   |                               |   |   |                  |   |   |                   |  
|Loss from Operations                                 |   | (7,419,094                    | ) |   | (7,823,313       | ) |   | (39,096,846       | )
|                                                     |   |                               |   |   |                  |   |   |                   |  
|Interest and other income                            |   | 18,689                        |   |   | 145,189          |   |   | 256,668           |  
|                                                     |   |                               |   |   |                  |   |   |                   |  
|Cumulative effect of accounting change               |   | -                             |   |   | -                |   |   | (153,226          | )
|                                                     |   |                               |   |   |                  |   |   |                   |  
|Other comprehensive gain (loss)                      |   |                               |   |   |                  |   |   |                   |  
|Gain (Loss) on foreign exchange                      |   | 242,558                       |   |   | (4,878           | ) |   | 380,753           |  
|                                                     |   |                               |   |   |                  |   |   |                   |  
|Comprehensive loss for the period                    | $ | (7,157,847                    | ) | $ | (7,683,002       | ) | $ | (38,612,651       | )
|                                                     |   |                               |   |   |                  |   |   |                   |  
|Net loss per share                                   | $ | (0.01                         | ) | $ | (0.01            | ) |   |                   |  
|                                                     |   |                               |   |   |                  |   |   |                   |  
|Basic and diluted weighted average number of         |   |                               |   |   |                  |   |   |                   |  
|common shares outstanding                            |   | 700,523,325                   |   |   | 532,400,802      |   |   |                   |  

THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL
STATEMENTS

F-3

---

SILVERADO GOLD MINES LTD.(An Exploration Stage
Company)CONSOLIDATED STATEMENT OF STOCKHOLDERS EQUITY for the years
from December 1, 2001 to November 30, 2007 (Stated in United States
Dollars)

|                                       |            |  |   |            |   |   |             |  |   |            |  |   |              |   |   | Accumulated |   |   |            |  
|-------------------------------------- | ---------- |  | - | ---------- | - | - | ----------- |  | - | ---------- |  | - | ------------ | - | - | ----------- | - | - | ---------- | -
|                                       |            |  |   |            |   |   |             |  |   |            |  |   |              |   |   | Deficit     |   |   |            |  
|                                       | Number of  |  |   | Common     |   |   | Common      |  |   | Additional |  |   |              |   |   | during      |   |   |            |  
|                                       | Common     |  |   | Shares -   |   |   | Stock to be |  |   | Paid in    |  |   | Deferred     |   |   | Exploration |   |   |            |  
|                                       | Shares     |  |   | Amount     |   |   | Issued      |  |   | Capital    |  |   | Compensation |   |   | Stage       |   |   | Total      |  
|                                       |            |  |   |            |   |   |             |  |   |            |  |   |              |   |   |             |   |   |            |  
|                                       |            |  |   |            |   |   |             |  |   |            |  |   |              |   |   |             |   |   |            |  
|Balance, November 30, 2001             | 42,423,988 |  | $ | 47,056,285 |   | $ | -           |  | $ | -          |  | $ | -            |   | $ | (48,904,944 | ) | $ | (1,848,659 | )
|Shares issued:                         |            |  |   |            |   |   |             |  |   |            |  |   |              |   |   |             |   |   |            |  
|For options exercised                  |            |  |   |            |   |   |             |  |   |            |  |   |              |   |   |             |   |   |            |  
|January 2002 @ $0.15 per share         | 3,700,000  |  |   | 555,000    |   |   | -           |  |   | -          |  |   | -            |   |   | -           |   |   | 555,000    |  
|April 2002 @
      $0.11 per share     | 2,000,000  |  |   | 220,000    |   |   | -           |  |   | -          |  |   | -            |   |   | -           |   |   | 220,000    |  
|May 2002 @ $0.125 per share            | 1,200,000  |  |   | 150,000    |   |   | -           |  |   | -          |  |   | -            |   |   | -           |   |   | 150,000    |  
|For warrants exercised                 |            |  |   |            |   |   |             |  |   |            |  |   |              |   |   |             |   |   |            |  
|March 2002 @ $0.05 per share           | 5,300,000  |  |   | 265,000    |   |   | -           |  |   | -          |  |   | -            |   |   | -           |   |   | 265,000    |  
|April 2002 @
      $0.08 per share     | 2,000,000  |  |   | 160,000    |   |   | -           |  |   | -          |  |   | -            |   |   | -           |   |   | 160,000    |  
|July 2002 @ $0.35 per share            | 1,800,000  |  |   | 630,000    |   |   | -           |  |   | -          |  |   | -            |   |   | -           |   |   | 630,000    |  
|July 2002 @
      $0.20 per share      | 2,000,000  |  |   | 400,000    |   |   | -           |  |   | -          |  |   | -            |   |   | -           |   |   | 400,000    |  
|August 2002 @ $0.10 per share          | 5,150,000  |  |   | 515,000    |   |   | -           |  |   | -          |  |   | -            |   |   | -           |   |   | 515,000    |  
|For consulting fees                    |            |  |   |            |   |   |             |  |   |            |  |   |              |   |   |             |   |   |            |  
|February 2002 @ $0.11 per share        | 1,091,667  |  |   | 120,084    |   |   | -           |  |   | -          |  |   | -            |   |   | -           |   |   | 120,084    |  
|April 2002 @
      $0.12 per share     | 350,000    |  |   | 42,000     |   |   | -           |  |   | -          |  |   | -            |   |   | -           |   |   | 42,000     |  
|May 2002 @ $0.13 per share             | 308,333    |  |   | 40,083     |   |   | -           |  |   | -          |  |   | -            |   |   | -           |   |   | 40,083     |  
|May 2002 @ $0.15
      per share       | 391,667    |  |   | 60,000     |   |   | -           |  |   | -          |  |   | -            |   |   | -           |   |   | 60,000     |  
|February 2002 @ $0.18 per share        | 350,000    |  |   | 63,000     |   |   | -           |  |   | -          |  |   | -            |   |   | -           |   |   | 63,000     |  
|June 2002 @
      $0.23 per share      | 308,333    |  |   | 70,917     |   |   | -           |  |   | -          |  |   | -            |   |   | -           |   |   | 70,917     |  
|August 2002 @ $0.34 per share          | 300,000    |  |   | 102,000    |   |   | -           |  |   | -          |  |   | -            |   |   | -           |   |   | 102,000    |  
|August 2002 @
      $0.35 per share    | 41,667     |  |   | 14,583     |   |   | -           |  |   | -          |  |   | -            |   |   | -           |   |   | 14,583     |  
|June 2002 @ $0.38 per share            | 41,667     |  |   | 14,583     |   |   | -           |  |   | -          |  |   | -            |   |   | -           |   |   | 14,583     |  
|July 2002 @
      $0.39 per share      | 83,333     |  |   | 32,500     |   |   | -           |  |   | -          |  |   | -            |   |   | -           |   |   | 32,500     |  
|October 2002 @ $0.40 per share         | 41,667     |  |   | 16,667     |   |   | -           |  |   | -          |  |   | -            |   |   | -           |   |   | 16,667     |  
|November 2002 @
      $0.41 per share  | 268,333    |  |   | 109,217    |   |   | -           |  |   | -          |  |   | -            |   |   | -           |   |   | 109,217    |  
|September 2002 @ $0.43 per share       | 925,005    |  |   | 397,752    |   |   | -           |  |   | -          |  |   | -            |   |   | -           |   |   | 397,752    |  
|October 2002 @
      $0.44 per share   | 50,000     |  |   | 22,000     |   |   | -           |  |   | -          |  |   | -            |   |   | -           |   |   | 22,000     |  
|September 2002 @ $0.46 per share       | 41,667     |  |   | 19,167     |   |   | -           |  |   | -          |  |   | -            |   |   | -           |   |   | 19,167     |  
|September 2002 @
      $0.48 per share | 100,000    |  |   | 48,000     |   |   | -           |  |   | -          |  |   | -            |   |   | -           |   |   | 48,000     |  
|November 2002 @ $0.60 per share        | 99,996     |  |   | 59,998     |   |   | -           |  |   | -          |  |   | -            |   |   | -           |   |   | 59,998     |  
|                                       |            |  |   |            |   |   |             |  |   |            |  |   |              |   |   |             |   |   |            |  
|For private placements, net of         |            |  |   |            |   |   |             |  |   |            |  |   |              |   |   |             |   |   |            |  
|commissions                            |            |  |   |            |   |   |             |  |   |            |  |   |              |   |   |             |   |   |            |  
|December 2002 @ $0.04 per share        | 2,500,000  |  |   | 100,000    |   |   | -           |  |   | -          |  |   | -            |   |   | -           |   |   | 100,000    |  
|February 2002 @
      $0.05 per share  | 5,300,000  |  |   | 265,000    |   |   | -           |  |   | -          |  |   | -            |   |   | -           |   |   | 265,000    |  
|April 2002 @ $0.09 per share           | 2,000,000  |  |   | 180,000    |   |   | -           |  |   | -          |  |   | -            |   |   | -           |   |   | 180,000    |  
|May 2002 @ $0.10
      per share       | 2,000,000  |  |   | 200,000    |   |   | -           |  |   | -          |  |   | -            |   |   | -           |   |   | 200,000    |  
|June 2002 @ $0.15 per share            | 4,000,000  |  |   | 600,000    |   |   | -           |  |   | -          |  |   | -            |   |   | -           |   |   | 600,000    |  
|July 2002 @
      $0.26 per share      | 250,000    |  |   | 65,000     |   |   | -           |  |   | -          |  |   | -            |   |   | -           |   |   | 65,000     |  
|July 2002 @ $0.30 per share            | 1,200,000  |  |   | 360,000    |   |   | -           |  |   | -          |  |   | -            |   |   | -           |   |   | 360,000    |  
|September 2002 @
      $0.38 per share | 400,000    |  |   | 152,000    |   |   | -           |  |   | -          |  |   | -            |   |   | -           |   |   | 152,000    |  
|November 2002 @ $0.32 per share        | 3,125,000  |  |   | 1,000,000  |   |   | -           |  |   | -          |  |   | -            |   |   | -           |   |   | 1,000,000  |  
|In lieu of payment for debentures      |            |  |   |            |   |   |             |  |   |            |  |   |              |   |   |             |   |   |            |  
|December 2002 @ $0.10 per share        | 1,628,971  |  |   | 162,897    |   |   | -           |  |   | -          |  |   | -            |   |   | -           |   |   | 162,897    |  
|June 2002 @
      $0.11 per share      | 1,437,520  |  |   | 158,127    |   |   | -           |  |   | -          |  |   | -            |   |   | -           |   |   | 158,127    |  
|March 2002 @ $0.13 per share           | 1,234,710  |  |   | 160,512    |   |   | -           |  |   | -          |  |   | -            |   |   | -           |   |   | 160,512    |  
|September 2002 @
      $0.37 per share | 2,643,107  |  |   | 984,391    |   |   | -           |  |   | -          |  |   | -            |   |   | -           |   |   | 984,391    |  
|Subscriptions received                 | -          |  |   | -          |   |   | 268,613     |  |   | -          |  |   | -            |   |   | -           |   |   | 268,613    |  
|Stock option granted                   | -          |  |   | -          |   |   | -           |  |   | 292,320    |  |   | (164,213     | ) |   | -           |   |   | 128,107    |  
|Net loss for the year                  | -          |  |   | -          |   |   | -           |  |   | -          |  |   | -            |   |   | (6,965,911  | ) |   | (6,965,911 | )
|Balance, November 30, 2002             | 98,086,631 |  |   | 55,571,763 |   |   | 268,613     |  |   | 292,320    |  |   | (164,213     | ) |   | (55,870,855 | ) |   | 97,628     |  
|Shares issued:                         |            |  |   |            |   |   |             |  |   |            |  |   |              |   |   |             |   |   |            |  
|For private placements (net)           |            |  |   |            |   |   |             |  |   |            |  |   |              |   |   |             |   |   |            |  
|December 2002 @ $0.50 per share        | 5,500,000  |  |   | 2,750,000  |   |   | -           |  |   | -          |  |   | -            |   |   | -           |   |   | 2,750,000  |  
|January 2003 @
      $0.55 per share   | 909,091    |  |   | 500,000    |   |   | -           |  |   | -          |  |   | -            |   |   | -           |   |   | 500,000    |  
|April 2003 @ $0.33 per share           | 3,525,582  |  |   | 1,163,400  |   |   | -           |  |   | -          |  |   | -            |   |   | -           |   |   | 1,163,400  |  
|July 2003 @
      $0.15 per share      | 1,666,667  |  |   | 250,000    |   |   | -           |  |   | -          |  |   | -            |   |   | -           |   |   | 250,000    |  
|August 2003 @ $0.10 per share          | 13,050,000 |  |   | 1,305,000  |   |   | -           |  |   | -          |  |   | -            |   |   | -           |   |   | 1,305,000  |  
|Commissions paid                       | -          |  |   | (641,155   | ) |   | -           |  |   | -          |  |   | -            |   |   | -           |   |   | (641,155   | )
|For options exercised                  |            |  |   |            |   |   |             |  |   |            |  |   |              |   |   |             |   |   |            |  
|December 2002 @
      $0.35 per share  | 200,000    |  |   | 70,000     |   |   | -           |  |   | -          |  |   | -            |   |   | -           |   |   | 70,000     |  
|For warrants exercised                 |            |  |   |            |   |   |             |  |   |            |  |   |              |   |   |             |   |   |            |  
|                                       |            |  |   |            |   |   |             |  |   |            |  |   |              |   |   |             |   |   |            |  
|August 2003 @ $0.08 per share          | 10,864,539 |  |   | 884,121    |   |   | -           |  |   | -          |  |   | -            |   |   | -           |   |   | 884,121    |  
|July 2003 @
      $0.12 per share      | 954,546    |  |   | 114,546    |   |   | -           |  |   | -          |  |   | -            |   |   | -           |   |   | 114,546    |  
|September 2003 @ $0.10 per share       | 3,459,086  |  |   | 345,908    |   |   | -           |  |   | -          |  |   | -            |   |   | -           |   |   | 345,908    |  

THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL
STATEMENTS

F-4

---

SILVERADO GOLD MINES LTD.(An Exploration Stage
Company)CONSOLIDATED STATEMENT OF STOCKHOLDERS EQUITY for the years
from December 1, 2001 to November 30, 2007 (Stated in United States
Dollars)

|                                        |             |  |  |            |   |  |             |   |  |            |  |  |              |   |   | Accumulated |   |  |            |  
|--------------------------------------- | ----------- |  |  | ---------- | - |  | ----------- | - |  | ---------- |  |  | ------------ | - | - | ----------- | - |  | ---------- | -
|                                        |             |  |  |            |   |  |             |   |  |            |  |  |              |   |   | Deficit     |   |  |            |  
|                                        | Number of   |  |  | Common     |   |  | Common      |   |  | Additional |  |  |              |   |   | during      |   |  |            |  
|                                        | Common      |  |  | Shares -   |   |  | Stock to be |   |  | Paid in    |  |  | Deferred     |   |   | Exploration |   |  |            |  
|                                        | Shares      |  |  | Amount     |   |  | Issued      |   |  | Capital    |  |  | Compensation |   |   | Stage       |   |  | Total      |  
|                                        |             |  |  |            |   |  |             |   |  |            |  |  |              |   |   |             |   |  |            |  
|For consulting fees                     |             |  |  |            |   |  |             |   |  |            |  |  |              |   |   |             |   |  |            |  
|November 2003 @
      $0.22 per share   | 2,511,668   |  |  | 554,085    |   |  | (268,613    | ) |  | -          |  |  | -            |   |   | -           |   |  | 285,472    |  
|In lieu of payment for
      debentures |             |  |  |            |   |  |             |   |  |            |  |  |              |   |   |             |   |  |            |  
|December 2002 @
      $0.38 per share   | 372,818     |  |  | 141,671    |   |  | -           |   |  | -          |  |  | -            |   |   | -           |   |  | 141,671    |  
|April 2003 @ $0.18 per share            | 3,274,865   |  |  | 588,893    |   |  | -           |   |  | -          |  |  | -            |   |   | -           |   |  | 588,893    |  
|August 2003 @
      $0.14 per share     | 913,551     |  |  | 127,897    |   |  | -           |   |  | -          |  |  | -            |   |   | -           |   |  | 127,897    |  
|November 2003 @ $0.46 per share         | 738,308     |  |  | 340,006    |   |  | -           |   |  | -          |  |  | -            |   |   | -           |   |  | 340,006    |  
|Subscriptions received                  | -           |  |  | -          |   |  | 115,000     |   |  | -          |  |  | -            |   |   | -           |   |  | 115,000    |  
|Amortization of
      stock-based       |             |  |  |            |   |  |             |   |  |            |  |  |              |   |   |             |   |  |            |  
|compensation                            | -           |  |  | -          |   |  | -           |   |  | -          |  |  | 129,397      |   |   | -           |   |  | 129,397    |  
|Stock option granted                    | -           |  |  | -          |   |  | -           |   |  | 171,994    |  |  | (42,896      | ) |   | -           |   |  | 129,098    |  
|Net loss for the year                   | -           |  |  | -          |   |  | -           |   |  | -          |  |  | -            |   |   | (8,519,169  | ) |  | (8,519,169 | )
|Balance, November 30, 2003              | 146,027,352 |  |  | 64,066,135 |   |  | 115,000     |   |  | 464,314    |  |  | (77,712      | ) | $ | (64,390,024 | ) |  | 177,713    |  
|Shares issued:                          |             |  |  |            |   |  |             |   |  |            |  |  |              |   |   |             |   |  |            |  
|For private placements                  |             |  |  |            |   |  |             |   |  |            |  |  |              |   |   |             |   |  |            |  
|December 2003 @
      $0.075 per share  | 1,533,894   |  |  | 115,000    |   |  | (115,000    | ) |  | -          |  |  | -            |   |   | -           |   |  | -          |  
|February 2004 @ $0.075 per share        | 15,390,070  |  |  | 1,154,255  |   |  | -           |   |  | -          |  |  | -            |   |   | -           |   |  | 1,154,255  |  
|June 2004 @ $0.05
      per share       | 21,666,667  |  |  | 1,083,334  |   |  | -           |   |  | -          |  |  | -            |   |   | -           |   |  | 1,083,334  |  
|September 2004 @ $0.04 per share        | 2,500,000   |  |  | 100,000    |   |  | -           |   |  | -          |  |  | -            |   |   | -           |   |  | 100,000    |  
|September 2004 @
      $0.035 per share | 2,857,143   |  |  | 100,000    |   |  | -           |   |  | -          |  |  | -            |   |   | -           |   |  | 100,000    |  
|October 2004 @ $0.06 per share          | 1,166,667   |  |  | 70,000     |   |  | -           |   |  | -          |  |  | -            |   |   | -           |   |  | 70,000     |  
|November 2004 @
      $0.03 per share   | 10,000,000  |  |  | 300,000    |   |  | -           |   |  | -          |  |  | -            |   |   | -           |   |  | 300,000    |  
|Commissions paid                        | -           |  |  | (357,690   | ) |  | -           |   |  | -          |  |  | -            |   |   | -           |   |  | (357,690   | )
|For warrants exercised                  |             |  |  |            |   |  |             |   |  |            |  |  |              |   |   |             |   |  |            |  
|January 2004 @ $0.075per share          | 8,876,597   |  |  | 665,745    |   |  | -           |   |  | -          |  |  | -            |   |   | -           |   |  | 665,745    |  
|November 2004 @
      $0.03 per share   | 6,000,000   |  |  | 180,000    |   |  | -           |   |  | -          |  |  | -            |   |   | -           |   |  | 180,000    |  
|For consulting fees                     |             |  |  |            |   |  |             |   |  |            |  |  |              |   |   |             |   |  |            |  
|January 2004 @
      $0.14 per share    | 495,000     |  |  | 69,300     |   |  | -           |   |  | -          |  |  | -            |   |   | -           |   |  | 69,300     |  
|April 2004 @ $0.09 per share            | 750,000     |  |  | 67,500     |   |  | -           |   |  | -          |  |  | -            |   |   | -           |   |  | 67,500     |  
|April 2004 @ $0.10
      per share      | 50,000      |  |  | 5,000      |   |  | -           |   |  | -          |  |  | -            |   |   | -           |   |  | 5,000      |  
|April 2004 @ $0.137 per share           | 720,000     |  |  | 98,640     |   |  | -           |   |  | -          |  |  | -            |   |   | -           |   |  | 98,640     |  
|June 2004 @ $0.12
      per share       | 410,000     |  |  | 49,200     |   |  | -           |   |  | -          |  |  | -            |   |   | -           |   |  | 49,200     |  
|August 2004 @ $0.07 per share           | 150,000     |  |  | 10,500     |   |  | -           |   |  | -          |  |  | -            |   |   | -           |   |  | 10,500     |  
|November 2004 @
      $0.06 per share   | 1,516,667   |  |  | 91,000     |   |  | -           |   |  | -          |  |  | -            |   |   | -           |   |  | 91,000     |  
|November 2004 @ $0.06 per share         | 2,325,000   |  |  | 186,000    |   |  | -           |   |  | -          |  |  | -            |   |   | -           |   |  | 186,000    |  
|In lieu of payment for debentures       |             |  |  |            |   |  |             |   |  |            |  |  |              |   |   |             |   |  |            |  
|December 2003 @ $0.11 per share         | 1,119,342   |  |  | 123,128    |   |  | -           |   |  | -          |  |  | -            |   |   | -           |   |  | 123,128    |  
|February 2004 @
      $0.10 per share   | 559,915     |  |  | 55,992     |   |  | -           |   |  | -          |  |  | -            |   |   | -           |   |  | 55,992     |  
|June 2004 @ $0.067 per share            | 248,685     |  |  | 16,660     |   |  | -           |   |  | -          |  |  | -            |   |   | -           |   |  | 16,660     |  
|September 2004 @
      $0.049 per share | 86,588      |  |  | 4,243      |   |  | -           |   |  | -          |  |  | -            |   |   | -           |   |  | 4,243      |  
|Subscriptions received                  | -           |  |  | -          |   |  | 70,000      |   |  | -          |  |  | -            |   |   | -           |   |  | 70,000     |  
|Amortization of stock-based             |             |  |  |            |   |  |             |   |  |            |  |  |              |   |   |             |   |  |            |  
|compensation                            |             |  |  | -          |   |  | -           |   |  | -          |  |  | 77,712       |   |   | -           |   |  | 77,712     |  
|Stock-based compensation                | -           |  |  | -          |   |  | -           |   |  | 2,000      |  |  | -            |   |   | -           |   |  | 2,000      |  
|Net loss for the year                   | -           |  |  | -          |   |  | -           |   |  | -          |  |  | -            |   |   | (4,836,363  | ) |  | (4,836,363 | )
|Balance, November 30, 2004 (Restated)   | 224,449,587 |  |  | 68,253,942 |   |  | 70,000      |   |  | 466,314    |  |  | -            |   |   | (69,226,387 | ) |  | (436,131   | )
|Shares issued:                          |             |  |  |            |   |  |             |   |  |            |  |  |              |   |   |             |   |  |            |  
|For private placements                  |             |  |  |            |   |  |             |   |  |            |  |  |              |   |   |             |   |  |            |  
|December 2004 @ $0.032 per share        | 3,076,924   |  |  | 100,000    |   |  | (70,000     | ) |  | -          |  |  | -            |   |   | -           |   |  | 30,000     |  
|February 2005 @
      $0.04 per share   | 562,500     |  |  | 22,500     |   |  | -           |   |  | -          |  |  | -            |   |   | -           |   |  | 22,500     |  
|October 2005 @ $0.0275 per share        | 5,454,546   |  |  | 150,000    |   |  | -           |   |  | -          |  |  | -            |   |   | -           |   |  | 150,000    |  
|November 2005 @
      $0.02 per share   | 8,250,000   |  |  | 165,000    |   |  | -           |   |  | -          |  |  | -            |   |   | -           |   |  | 165,000    |  
|November 2005 @ $0.025 per share        | 8,000,000   |  |  | 200,000    |   |  | -           |   |  | -          |  |  | -            |   |   | -           |   |  | 200,000    |  
|November 2005 @
      $0.03 per share   | 38,540,338  |  |  | 1,156,210  |   |  | -           |   |  | -          |  |  | -            |   |   | -           |   |  | 1,156,210  |  
|November 2005 @ $0.032 per share        | 56,335,379  |  |  | 1,267,546  |   |  | -           |   |  | -          |  |  | -            |   |   | -           |   |  | 1,267,546  |  
|Commissions paid                        | -           |  |  | (325,363   | ) |  | -           |   |  | -          |  |  | -            |   |   | -           |   |  | (325,363   | )
|For consulting fees                     |             |  |  |            |   |  |             |   |  |            |  |  |              |   |   |             |   |  |            |  
|December 2004 @
      $0.025 per share  | 2,000,000   |  |  | 50,000     |   |  | -           |   |  | -          |  |  | -            |   |   | -           |   |  | 50,000     |  
|December 2004 @ $0.033 per share        | 1,150,000   |  |  | 38,000     |   |  | -           |   |  | -          |  |  | -            |   |   | -           |   |  | 38,000     |  
|January 2005 @
      $0.06 per share    | 420,000     |  |  | 25,200     |   |  | -           |   |  | -          |  |  | -            |   |   | -           |   |  | 25,200     |  
|January 2005 @ $0.07 per share          | 160,000     |  |  | 11,200     |   |  | -           |   |  | -          |  |  | -            |   |   | -           |   |  | 11,200     |  
|January 2005 @
      $0.09 per share    | 160,000     |  |  | 14,400     |   |  | -           |   |  | -          |  |  | -            |   |   | -           |   |  | 14,400     |  
|February 2005 @ $0.05 per share         | 1,450,000   |  |  | 72,500     |   |  | -           |   |  | -          |  |  | -            |   |   | -           |   |  | 72,500     |  
|February 2005 @
      $0.08 per share   | 895,000     |  |  | 71,600     |   |  | -           |   |  | -          |  |  | -            |   |   | -           |   |  | 71,600     |  
|May 2005 @ $0.04 per share              | 50,000      |  |  | 2,000      |   |  | -           |   |  | -          |  |  | -            |   |   | -           |   |  | 2,000      |  
|Subscriptions received                  | -           |  |  | -          |   |  | 54,500      |   |  | -          |  |  | -            |   |   | -           |   |  | 54,500     |  
|Stock-based
      compensation          |             |  |  |            |   |  |             |   |  |            |  |  |              |   |   |             |   |  |            |  

THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL
STATEMENTS

F-5

---

SILVERADO GOLD MINES LTD.(An Exploration Stage
Company)CONSOLIDATED STATEMENT OF STOCKHOLDERS EQUITY for the years
from December 1, 2001 to November 30, 2007 (Stated in United States
Dollars)

|                                               |             |  |   |            |   |   |             |   |   |            |  |   |              |  |   | Accumulated |   |   |            |  
|---------------------------------------------- | ----------- |  | - | ---------- | - | - | ----------- | - | - | ---------- |  | - | ------------ |  | - | ----------- | - | - | ---------- | -
|                                               |             |  |   |            |   |   |             |   |   |            |  |   |              |  |   | Deficit     |   |   |            |  
|                                               | Number of   |  |   | Common     |   |   | Common      |   |   | Additional |  |   |              |  |   | during      |   |   |            |  
|                                               | Common      |  |   | Shares -   |   |   | Stock to be |   |   | Paid in    |  |   | Deferred     |  |   | Exploration |   |   |            |  
|                                               | Shares      |  |   | Amount     |   |   | Issued      |   |   | Capital    |  |   | Compensation |  |   | Stage       |   |   | Total      |  
|                                               |             |  |   |            |   |   |             |   |   |            |  |   |              |  |   |             |   |   |            |  
|December 2004 @ $0.07 per share                | 600,001     |  |   | 42,000     |   |   | -           |   |   | -          |  |   | -            |  |   | -           |   |   | 42,000     |  
|December 2004 @
      $0.06 per share          | 3,500,000   |  |   | 210,003    |   |   | -           |   |   | -          |  |   | -            |  |   | -           |   |   | 210,003    |  
|Net loss for the year                          | -           |  |   | -          |   |   | -           |   |   | -          |  |   | -            |  |   | (3,394,107  | ) |   | (3,394,107 | )
|Balance, November 30, 2005                     | 355,054,275 |  |   | 71,526,738 |   |   | 54,500      |   |   | 466,314    |  |   | -            |  |   | (72,620,494 | ) |   | (572,942   | )
|Shares issued:                                 |             |  |   |            |   |   |             |   |   |            |  |   |              |  |   |             |   |   |            |  
|For private placements                         |             |  |   |            |   |   |             |   |   |            |  |   |              |  |   |             |   |   |            |  
|December 2005 @ $0.028 per share               | 4,285,715   |  |   | 120,000    |   |   | -           |   |   | -          |  |   | -            |  |   | -           |   |   | 120,000    |  
|December 200 @
      $0.035 per share          | 428,573     |  |   | 15,000     |   |   | (15,000     | ) |   | -          |  |   | -            |  |   | -           |   |   | -          |  
|January 2006 @ $0.025 per share                | 85,806,201  |  |   | 2,145,145  |   |   | -           |   |   | -          |  |   | -            |  |   | -           |   |   | 2,145,145  |  
|January 2006 @
      $0.03 per share           | 14,020,000  |  |   | 420,600    |   |   | (8,000      | ) |   | -          |  |   | -            |  |   | -           |   |   | 412,600    |  
|January 2006 @ $0.0325 per share               | 4,776,924   |  |   | 155,250    |   |   | -           |   |   | -          |  |   | -            |  |   | -           |   |   | 155,250    |  
|January 2006 @
      $0.038 per share          | 1,914,475   |  |   | 72,750     |   |   | -           |   |   | -          |  |   | -            |  |   | -           |   |   | 72,750     |  
|February 2006 @ $0.114 per share               | 788,782     |  |   | 90,000     |   |   | -           |   |   | -          |  |   | -            |  |   | -           |   |   | 90,000     |  
|April 2006 @ $0.06
      per share             | 71,626,667  |  |   | 4,297,600  |   |   | -           |   |   | -          |  |   | -            |  |   | -           |   |   | 4,297,600  |  
|April 2006 @ $0.07 per share                   | 9,900,001   |  |   | 693,000    |   |   | -           |   |   | -          |  |   | -            |  |   | -           |   |   | 693,000    |  
|May 2006 @ $0.08
      per share               | 5,650,000   |  |   | 452,000    |   |   | -           |   |   | -          |  |   | -            |  |   | -           |   |   | 452,000    |  
|May 2006 @ $0.10 per share                     | 4,000,000   |  |   | 400,000    |   |   | -           |   |   | -          |  |   | -            |  |   | -           |   |   | 400,000    |  
|October 2006 @
      $0.0285 per share         | 35,087,719  |  |   | 1,000,000  |   |   | -           |   |   | -          |  |   | -            |  |   | -           |   |   | 1,000,000  |  
|Commissions paid                               | -           |  |   | (1,170,791 | ) |   | -           |   |   | -          |  |   | -            |  |   | -           |   |   | (1,170,791 | )
|For warrants exercised                         |             |  |   |            |   |   |             |   |   |            |  |   |              |  |   |             |   |   |            |  
|December 2005 @ $0.0225 per share              | 1,400,000   |  |   | 31,500     |   |   | (31,500     | ) |   | -          |  |   | -            |  |   | -           |   |   | -          |  
|July 2006 @ $0.04
      per share              | 18,888,888  |  |   | 755,556    |   |   | -           |   |   | -          |  |   | -            |  |   | -           |   |   | 755,556    |  
|July 2006 @ $0.069 per share                   | 11,081,832  |  |   | 767,000    |   |   | -           |   |   | -          |  |   | -            |  |   | -           |   |   | 767,000    |  
|For consulting fees                            |             |  |   |            |   |   |             |   |   |            |  |   |              |  |   |             |   |   |            |  
|March 2006 to November 2006 @                  |             |  |   |            |   |   |             |   |   |            |  |   |              |  |   |             |   |   |            |  
|$0.13 per share                                | 6,075,000   |  |   | 767,250    |   |   | -           |   |   | -          |  |   | -            |  |   | -           |   |   | 767,250    |  
|Subscriptions received                         | -           |  |   | -          |   |   | 273,600     |   |   | -          |  |   | -            |  |   | -           |   |   | 273,600    |  
|Net loss for the year                          | -           |  |   | -          |   |   | -           |   |   | -          |  |   | -            |  |   | (7,683,002  | ) |   | (7,683,002 | )
|Balance, November 30, 2006                     | 630,785,052 |  |   | 82,538,598 |   |   | 273,600     |   |   | 466,314    |  |   | -            |  |   | (80,303,496 | ) |   | (2,975,016 | )
|Shares issued                                  |             |  |   |            |   |   |             |   |   |            |  |   |              |  |   |             |   |   |            |  
|For private placements                         |             |  |   |            |   |   |             |   |   |            |  |   |              |  |   |             |   |   |            |  
|September 2007 @
      $0.0321 per share       | 59,166,669  |  |   | 1,900,000  |   |   |             |   |   |            |  |   |              |  |   |             |   |   | 1,900,000  |  
|November 2007 @ $0.035 per share               | 4,700,000   |  |   | 164,500    |   |   |             |   |   |            |  |   |              |  |   |             |   |   | 164,500    |  
|Commissions Paid                               |             |  |   | (408,458   | ) |   |             |   |   |            |  |   |              |  |   |             |   |   | (408,458   | )
|For warrants exercised                         |             |  |   |            |   |   |             |   |   |            |  |   |              |  |   |             |   |   |            |  
|January 2007 @
      $0.06 per share           | 2,500,000   |  |   | 150,000    |   |   |             |   |   |            |  |   |              |  |   |             |   |   | 150,000    |  
|February 2007 @ $0.03 per share                | 11,500,000  |  |   | 345,000    |   |   |             |   |   |            |  |   |              |  |   |             |   |   | 345,000    |  
|March 2007 @ $0.07
      per share             | 17,343,359  |  |   | 1,214,035  |   |   |             |   |   |            |  |   |              |  |   |             |   |   | 1,214,035  |  
|May 2007 @ $0.05 per share                     | 34,411,028  |  |   | 1,720,551  |   |   |             |   |   |            |  |   |              |  |   |             |   |   | 1,720,551  |  
|For Options exercised                          |             |  |   |            |   |   |             |   |   |            |  |   |              |  |   |             |   |   |            |  
|December 2006 @ $0.05 per share                | 500,000     |  |   | 25,000     |   |   |             |   |   |            |  |   |              |  |   |             |   |   | 25,000     |  
|March 2007 @ $0.05
      per share             | 1,300,000   |  |   | 65,000     |   |   |             |   |   |            |  |   |              |  |   |             |   |   | 65,000     |  
|April 2007 @ $0.0505 per share                 | 8,500,000   |  |   | 429,000    |   |   |             |   |   |            |  |   |              |  |   |             |   |   | 429,000    |  
|May 2007 @ $0.05
      per share               | 1,280,000   |  |   | 64,000     |   |   |             |   |   |            |  |   |              |  |   |             |   |   | 64,000     |  
|September 2007 @ $0.058 per share              | 500,000     |  |   | 29,000     |   |   |             |   |   |            |  |   |              |  |   |             |   |   | 29,000     |  
|October 2007 @
      $0.05 per share           | 600,000     |  |   | 30,000     |   |   |             |   |   |            |  |   |              |  |   |             |   |   | 30,000     |  
|For Consulting fees                            |             |  |   |            |   |   |             |   |   |            |  |   |              |  |   |             |   |   |            |  
|December 2006 @
      $0.13 per share          | 200,000     |  |   | 26,000     |   |   |             |   |   |            |  |   |              |  |   |             |   |   | 26,000     |  
|January 2007 @ $0.0814 per share               | 4,375,000   |  |   | 356,250    |   |   | (273,600    | ) |   |            |  |   |              |  |   |             |   |   | 82,650     |  
|February 2007 @
      $0.13 per share          | 200,000     |  |   | 26,000     |   |   |             |   |   |            |  |   |              |  |   |             |   |   | 26,000     |  
|March 2007 @ $0.0959 per share                 | 1,370,067   |  |   | 131,401    |   |   |             |   |   |            |  |   |              |  |   |             |   |   | 131,401    |  
|April 2007 @
      $0.1435 per share           | 575,000     |  |   | 82,500     |   |   |             |   |   |            |  |   |              |  |   |             |   |   | 82,500     |  
|May 2007 @ $0.1009 per share                   | 834,251     |  |   | 84,154     |   |   |             |   |   |            |  |   |              |  |   |             |   |   | 84,154     |  
|June 2007 @ $0.1
      per share               | 200,000     |  |   | 20,000     |   |   |             |   |   |            |  |   |              |  |   |             |   |   | 20,000     |  
|July 2007 @ $0.09 per share                    | 975,000     |  |   | 87,750     |   |   |             |   |   |            |  |   |              |  |   |             |   |   | 87,750     |  
|August 2007 @
      $0.09 per share            | 600,000     |  |   | 54,000     |   |   |             |   |   |            |  |   |              |  |   |             |   |   | 54,000     |  
|September 2007 @ $0.07 per share               | 1,492,291   |  |   | 104,460    |   |   |             |   |   |            |  |   |              |  |   |             |   |   | 104,460    |  
|November 2007 @
      $0.0799 per share        | 1,700,000   |  |   | 135,900    |   |   |             |   |   |            |  |   |              |  |   |             |   |   | 135,900    |  
|Amortization of stock-based
      compensation |             |  |   |            |   |   |             |   |   | 734,094    |  |   |              |  |   |             |   |   | 734,093    |  
|Subscriptions received                         |             |  |   |            |   |   | 275,136     |   |   |            |  |   |              |  |   |             |   |   | 275,136    |  
|Net Loss for the year                          |             |  |   |            |   |   |             |   |   |            |  |   |              |  |   | (7,157,847  | ) |   | (7,157,847 | )
|Balance, November 30, 2007                     | 785,607,717 |  | $ | 89,374,641 |   | $ | 275,136     |   | $ | 1,200,408  |  | $ | -            |  | $ | (87,461,343 | ) | $ | 3,388,842  |  

THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL
STATEMENTS

F-6

---

SILVERADO GOLD MINES LTD.(An Exploration Stage
Company) CONSOLIDATED STATEMENTS OF CASH FLOWS for the years ended
November 30, 2007 and 2006 (Stated in United States Dollars)

|                                                       |   |                               |   |   |                  |   |   | Period Since    |  
|------------------------------------------------------ | - | ----------------------------- | - | - | ---------------- | - | - | --------------- | -
|                                                       |   |                               |   |   |                  |   |   | Recommencement  |  
|                                                       |   |                               |   |   |                  |   |   | Of Exploration  |  
|                                                       |   |                               |   |   |                  |   |   | Stage           |  
|                                                       |   | Years
      Ended November 30 |   |   | December 1, 2001 |  
|                                                       |   | 2007                          |   |   | 2006             |   |   | to November 30, |  
|                                                       |   |                               |   |   |                  |   |   | 2007            |  
|Cash Flows used in Operating Activities                |   |                               |   |   |                  |   |   |                 |  
|Net loss
      for the period                          | $ | (7,157,847                    | ) | $ | (7,683,002       | ) | $ | (38,612,651     | )
|Adjustments to reconcile loss to net cash              |   |                               |   |   |                  |   |   |                 |  
|used in operating activities:                          |   |                               |   |   |                  |   |   |                 |  
|Cumulative
      effect of accounting change           |   |                               |   |   | -                |   |   | 153,226         |  
|Depreciation, accretion and impairment                 |   | 255,264                       |   |   | 226,587          |   |   | 2,225,511       |  
|Stock based
      compensation                         |   | 734,094                       |   |   | 219,100          |   |   | 3,375,644       |  
|Stock issued for debentures                            |   | -                             |   |   | -                |   |   | 217,687         |  
|Non-cash consulting
      and legal expense            |   | 1,108,416                     |   |   | 767,250          |   |   | 2,737,706       |  
|Non-cash financing expense                             |   | -                             |   |   | -                |   |   | 252,003         |  
|Interest accrued                                       |   | -                             |   |   | -                |   |   | 486,370         |  
|Write-off of mineral claim expenditures                |   | -                             |   |   | -                |   |   | 1,159,529       |  
|Write-down
      of property, plant and equipment      |   | -                             |   |   | -                |   |   | 285,875         |  
|Changes
      in non-cash operating working capital:   |   |                               |   |   |                  |   |   |                 |  
|Other receivables                                      |   | (284,533                      | ) |   | (3,378           | ) |   | (291,630        | )
|Gold inventory                                         |   | (1,836,317                    | ) |   | (483,713         | ) |   | (2,336,806      | )
|Prepaid expense                                        |   | -                             |   |   | -                |   |   |                 |  
|Accounts payable and accrued liabilities               |   | (113,572                      | ) |   | (79,222          | ) |   | (396,129        | )
|Share subscriptions
      received                     |   | 1,536                         |   |   | -                |   |   | 1,536           |  
|Increase in mineral claims royalty payable             |   | (20,000                       | ) |   | (20,000          | ) |   | 43,500          |  
|Net cash used in Operating Activities                  |   | (7,312,959                    | ) |   | (7,056,378       | ) |   | (30,698,629     | )
|                                                       |   |                               |   |   |                  |   |   |                 |  
|Cash Flows (used in) provided by Investing Activities  |   |                               |   |   |                  |   |   |                 |  
|Purchase
      of property, plant and equipment        |   | (1,360,110                    | ) |   | (49,604          | ) |   | (2,744,419      | )
|Disposal of property, plant
      and equipment        |   | -                             |   |   | 55,037           |   |   | 207,289         |  
|Net cash (used in) provided by Investing Activities    |   | (1,360,110                    | ) |   | 5,433            |   |   | (2,537,130      | )
|                                                       |   |                               |   |   |                  |   |   |                 |  
|Cash Flows from Financing Activities                   |   |                               |   |   |                  |   |   |                 |  
|Common stock issued for
      cash (net of share issue |   | 5,727,627                     |   |   | 10,244,610       |   |   | 34,580,040      |  
|costs)                                                 |   |                               |   |   |                  |   |   |                 |  
|Repayment of convertible
      debentures              |   | -                             |   |   | (36,652          | ) |   | (74,999         | )
|Repayment
      of loans payable                       |   | -                             |   |   | -                |   |   | (35,729         | )
|Repayment of capital lease
      obligations           |   | (345,402                      | ) |   | (345,734         | ) |   | (1,100,594      | )
|Advanced
      from related party                      |   | 854,883                       |   |   | 289,550          |   |   | 923,405         |  
|Net cash provided by Financing Activities              |   | 6,237,108                     |   |   | 10,151,774       |   |   | 34,292,123      |  
|                                                       |   |                               |   |   |                  |   |   |                 |  
|Net change in cash and cash equivalents                |   | (2,435,961                    | ) |   | 3,100,829        |   |   | 1,056,364       |  
|Cash and cash equivalents, beginning of period         |   | 3,509,418                     |   |   | 408,589          |   |   | 17,093          |  
|Cash and cash equivalents, end of the period           | $ | 1,073,457                     |   | $ | 3,509,418        |   | $ | 1,073,457       |  
|                                                       |   |                               |   |   |                  |   |   |                 |  
|Supplemental information:                              |   |                               |   |   |                  |   |   |                 |  
|Interest paid during the year                          | $ | 27,718                        |   | $ | 54,387           |   | $ | 1,103,101       |  

THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL
STATEMENTS

F-7

---

SILVERADO GOLD MINES LTD.(An Exploration Stage
Company)NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS November 30, 2007
and 2006 (Stated in United States Dollars)

|Note 1 | Nature and Continuance
      of Operations                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          
|------ | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|       |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     
|       | Silverado Gold Mines Ltd, the Company, is an
      exploration stage company in the process of exploring its resource
      properties and has not yet determined whether these properties contain
      reserves that are economically recoverable. The company is also engaged in
      the research and development of low-rank coal-water fuel as a replacement
      fuel for oil fired boilers and utility generators.                                                                                                                                                                                                                                                                      
|       |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     
|       | As reflected in the accompanying financial statements,
      the Company has incurred net losses of $87,461,343 during the exploration
      stage and has used cash from operations of $30,698,629 since
      recommencement of exploration stage on December 1, 2001. This raises
      substantial doubt about its ability to continue as a going concern. The
      ability of the Company to continue as a going concern is dependant upon
      the Companys ability to raise additional capital and implement its
      business plan. The financial statements do not include any adjustments
      that may be necessary if the company were unable to continue as a going
      concern.
|       |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     
|       | The Companys operations have been funded primarily from
      sales of its stock and the sale of gold extracted during exploration
      activities. Management anticipates that the cash generated from operating
      activities, together with additional funding commitments will be
      sufficient to finance the Companys operations over the next twelve
      months.                                                                                                                                                                                                                                                                                                                  
|       |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     
|Note 2 | Summary of Significant Accounting Policies                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          
|       |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     
|       | These consolidated financial statements are prepared in
      conformity with United States of America generally accepted accounting
      principles. The application of Canadian generally accepted accounting
      principles to these financial statements would not result in material
      measurement or disclosure differences.                                                                                                                                                                                                                                                                                                                                                           
|       |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     
|       | The financial statements have, in managements opinion,
      been properly prepared within the framework of the significant accounting
      policies summarized below:                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            

| | a) | Basis of Consolidation                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  
| | -- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         
| |    | These consolidated financial statements include the
      accounts of the Company and its wholly-owned subsidiaries, Silverado Gold
      Mines Inc. and Silverado Green Fuel Inc. All significant inter-company
      transactions have been eliminated.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               
| |    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         
| | b) | Environmental Costs                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     
| |    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         
| |    | Environmental expenditures that relate to current
      operations are expensed or capitalized as appropriate. Expenditures that
      relate to an existing condition caused by past operations and which do not
      contribute to current or future revenue generation, are expensed.
      Liabilities are recorded when environmental assessments and/or remedial
      efforts are probable, and the costs can be reasonably estimated.
      Generally, the timing of these accruals coincides with the earlier of
      completion of a feasibility study or the Companys commitment to a plan of
      action based on the then known facts.                                                                                                                                                                 
| |    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         
| | c) | Basic and Diluted Loss Per Share                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        
| |    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         
| |    | Basic loss per share is computed by dividing the loss
        for the year by the weighted average number of common shares outstanding
        during the year. Diluted earnings per share reflect the potential dilution
        that could occur if potentially dilutive securities were exercised or
        converted to common stock. The dilutive effect of options and warrants
        and their equivalent is computed by application of the treasury stock
        method and the effect of convertible securities by the if converted
        method. Fully diluted amounts are not presented when the effects of the
        computations are anti-dilutive due to the losses incurred. Accordingly,
        there is no difference in the amounts presented for basic and diluted
        loss per share.

F-8

---

SILVERADO GOLD MINES LTD.(An Exploration Stage Company)
  NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 
  November 30, 2007 and 2006 
  (Stated in United States Dollars)

| | d) | Financial Instruments                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       
| | -- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             
| |    | The carrying value of cash and cash equivalents, accounts
        payable and accrued liabilities and loans payable approximate fair value
        because of the short-term maturity of these instruments. The carrying
        amounts reported in the balance sheet for convertible debentures approximate
        their fair values as they bear interest at rates which approximate market
        rates. Unless otherwise noted, it is managements opinion that the
        Company is not exposed to significant interest, currency or credit risks
        arising from these financial instruments.                                                                                                                                                               
| |    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             
| | e) | Income Taxes                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                
| |    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             
| |    | The Company uses the assets and liability method of
        accounting for income taxes pursuant to Statement of Financial Accounting
        Standards (SFAS) No. 109 Accounting for Income Taxes.
        Under the assets and liability method of SFAS No. 109, deferred tax assets
        and liabilities are recognized for the future tax consequences attributable
        to temporary differences between the financial statements carrying amounts
        of existing assets and liabilities and their respective tax bases. Deferred
        tax assets and liabilities are measured using enacted tax rates expected
        to apply to taxable income in the years in which those temporary differences
        are expected to be recovered or settled.
| |    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             
| | f) | Exploration Stage Company                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   
| |    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             
| |    | The Securities and Exchange Commissions Exchange
        Act Guide 7, Description of Property by Issuers Engaged or to be
        Engaged in Significant Mining Operations requires that mining companies
        in the exploration stage should not refer to themselves as development
        stage companies in the financial statements, even though such companies
        should comply with Financial Accounting Standard Board Statement No. 7,
        if applicable. Accordingly, the Company has not been referred to as being
        a development stage company. Accumulated results of operations are presented
        from December 1, 2001, the date the Company re-entered the exploration
        stage.                                            
| |    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             
| | g) | Gold Inventory                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              
| |    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             
| |    | The Company values its inventory using the spot gold
        price at the end of the reporting period. On average, the Companys
        test production in past years has yielded gold dust and gold nuggets.
        Gold dust has brought a sales price 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 value 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 above
        the spot gold price.                                                                                                                    
| |    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             
| | h) | Mineral Claim Payments and Exploration Costs                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                
| |    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             
| |    | The Company expenses all costs related to the acquisition,
        maintenance and exploration of mineral claims in which it has secured
        exploration rights prior to establishment of proven and probable reserves.
        To date, the Company has not established the commercial feasibility of
        its exploration prospects; therefore, all costs are being expensed.                                                                                                                                                                                                                                                                                                                                                                                      
| |    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             
| | i) | Asset Retirement Obligation                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 
| |    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             
| |    | Effective December 1, 2002, the Company adopted SFAS
        No. 143, Accounting for Asset Retirement Obligations, which
        addresses financial accounting and reporting for obligations associated
        with the retirement of tangible long-lived assets and the associated retirement
        costs. The standard applies to legal obligations associated with the retirement
        of long-lived assets that result from the acquisition, construction, development
        and normal use of the asset.                                                                                                                                                                                                                                                    

F-9

---

SILVERADO GOLD MINES LTD.(An Exploration Stage Company)
  NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 
  November 30, 2007 and 2006 
  (Stated in United States Dollars)

| |    | SFAS No. 143 requires that the fair value of a liability
        for an asset retirement obligation be recognized in the period in which
        it is incurred if a reasonable estimate of fair value can be made. The
        fair value of the liability is added to the carrying amount of the associated
        asset and this additional carrying amount is depreciated over the life
        of the asset. The liability is accreted at the end of each period through
        charges to operating expense. If the obligation is settled for other than
        the carrying amount of the liability, the Company will recognize a gain
        or loss on settlement.
| | -- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                
| | j) | Use of Estimates                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               
| |    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                
| |    | The preparation of financial statements in conformity
        with accounting principles generally accepted in the United States of
        America requires management to make estimates and assumptions that affect
        the reported amount of assets and liabilities, disclosure of contingent
        assets and liabilities at the date of the financial statements, and the
        reported amounts of revenues and expenses during the reporting period.
        Actual results could differ from these estimates.                                                                                                                                                 
| |    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                
| | k) | Property, Plant and Equipment                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  
| |    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                
| |    | Property, plant and equipment are stated at cost. Depreciation
        is provided on a straight line basis as follows:                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        

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


| | l) | Cash and Cash Equivalents                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           
| | -- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     
| |    | The Company considers all liquid investments, with an
      original maturity of three months or less when purchased, to be cash
      equivalents.                                                                                                                                                                                                                                                                                                                                                                                                                                                 
| |    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     
| | m) | Concentration of Credit Risk                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        
| |    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     
| |    | Financial Instruments which potentially subject the
      Company to concentrations of credit risk consist principally of cash in
      banks. At times during the year, the Company maintained deposits in excess
      of insured limits provided by FDIC and CDIC. The Company places its cash
      and cash equivalents with high credit quality financial institutions which
      the Company believes limits these risks.                                                                                                                                                                   
| |    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     
| | n) | Foreign Currency Translation                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        
| |    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     
| |    | The Company considers its functional currency to be the
      U.S. dollar for its U.S. and Canadian operations. Monetary assets and
      liabilities denominated in foreign currencies are translated into U.S.
      dollars at the rates of exchange in effect at the year- end. Non-monetary
      assets and revenue and expense transactions are translated at the rate in
      effect at the time at which the transactions took place. Foreign exchange
      gains and losses are included in the determination of results from
      operations for the year as other comprehensive
loss.

F-10

---

SILVERADO GOLD MINES LTD.(An Exploration Stage Company)
  NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 
  November 30, 2007 and 2006 
  (Stated in United States Dollars)

| | o) | Revenue Recognition                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             
| | -- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 
| |    | Proceeds on gold recoveries from test mining are recorded
        as a reduction of exploration costs during the period the Company is in
        the exploration stage.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        
| |    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 
| | p) | Research Expenditures                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           
| |    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 
| |    | Research expenditures are expensed in the year incurred.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        
| |    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 
| | q) | Accounting for Stock-based Compensation                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         
| |    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 
| |    | Effective December 1, 2006, the Company adopted the
        provisions of SFAS 123(R) (Share-based Compensation) requiring equity
        awards granted under its stock option plan to be accounted for under the
        fair value method. Accordingly, share-based compensation is measured at
        grant date, based on the fair value of the award. Prior to December 1,
        2006, the Company accounted for awards granted under its stock option
        plans utilizing the intrinsic value method prescribed by Accounting Principles
        Board (APB) Opinion No. 25, Accounting for Stock Issued to Employees
        (APB 25), and related interpretations, and provided the required pro forma
        disclosures prescribed by SFAS 123, Accounting for Stock-Based Compensation
        (SFAS 123), as amended. Under the existing stock option plans, all options
        vest entirely on the grant date. Therefore, there were no partially vested
        options outstanding as of the SFAS 123(R) adoption date..                                                                                                                                                                                          
| |    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 
| | r) | Reclassifications                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               
| |    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 
| |    | Certain prior periods comparative figures have
        been reclassified to conform to the financial statement presentation adopted
        for this period                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    
| |    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 
| | s) | Recent Accounting Pronouncements                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                
| |    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 
| |    | In February 2007, the FASB issued SFAS No. 159, Establishing
        the Fair Value Option for Financial Assets and Liabilities (SFAS
        No. 159). SFAS No. 159 was to permit all entities to choose to elect,
        at specified election dates, to measure eligible financial instruments
        at fair value. An entity shall report unrealized gains and losses on items
        for which the fair value option has been elected in earnings at each subsequent
        reporting date, and recognize upfront costs and fees related to those
        items in earnings as incurred and not deferred. SFAS No. 159 applies to
        fiscal years beginning after November 15, 2007, with early adoption permitted
        for an equity that has also elected to apply the provisions of SFAS No.
        157, Fair Value Measurements. An entity is prohibited from
        retrospectively applying SFAS No. 159, unless it chooses early adoption.
        SFAS No. 159 also applies to eligible items existing at November 15, 2007
        (or early adoption date). The Company is evaluating the potential impact
        of the adoption of SFAS No. 159 on the Companys consolidated financial
        statements
| |    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 
| |    | In December 2006, the Financial Accounting Standards
        Board (FASB) issued Staff Position (FSP) EITF 00-19-2, Accounting
        for Registration Payment Arrangements. This FSP specifies that the
        contingent obligation to make future payments or otherwise transfer consideration
        under a registration payment arrangement, whether issued as a separate
        agreement or included as a provision of a financial instrument or other
        agreement, should be separately recognized and measured in accordance
        with FASB Statement No. 5, Accounting for Contingencies. The
        guidance is effective for fiscal years beginning December 15, 2006. The
        Company is evaluating the potential impact of the adoption of SFAS No.
        159 on the Companys consolidated financial statements.                                                                                                                                                                                                                                                                                                                                                                                        

F-11

---

SILVERADO GOLD MINES LTD.(An Exploration Stage Company)
  NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 
  November 30, 2007 and 2006 
  (Stated in United States Dollars)

In September 2006 the Financial Accounting
  Standards Board issued Statement of Financial Accounting Standards No. 157 Fair
  Value Measurements (SFAS 157), which provides expanded guidance for using
  fair value to measure assets and liabilities. SFAS 157 establishes a hierarchy
  for data used to value assets and liabilities, and requires additional disclosures
  about the extent to which a company measures assets and liabilities at fair
  value, the information used to measure fair value, and the effect of fair value
  measurements on earnings. Implementation of SFAS 157 is required on December
  1, 2007. The Company is evaluating the potential impact of the adoption of SFAS
  No. 157 on the Companys consolidated financial statements

In July 2006, the Financial Accounting
Standards Board issued FASB Interpretation No. 48 Accounting for Uncertainty in
Income Taxes--an Interpretation of FASB Statement 109 (FIN 48), which clarifies
the accounting for uncertainty in tax positions taken or expected to be taken in
a tax return, including issues relating to financial statement recognition and
measurement. FIN 48 provides that the tax effects from an uncertain tax position
can be recognized in the financial statements only if the position is
more-likely-than-not of being sustained if the position were to be challenged
by a taxing authority. The assessment of the tax position is based solely on the
technical merits of the position, without regard to the likelihood that the tax
position may be challenged. If an uncertain tax position meets the
more-likely-than-not threshold, the largest amount of tax benefit that is
greater than 50 percent likely of being recognized upon ultimate settlement with
the taxing authority, is recorded. The provisions of FIN 48 are effective for
fiscal years beginning after December 15, 2006, with the cumulative effect of
the change in accounting principle recorded as an adjustment to opening retained
earnings.

|Note 3 | Gold Inventory                                                               
|------ | -----------------------------------------------------------------------------
|       |                                                                              
|       | Gold Inventory consists of the
      following at November 30, 2007 and 2006:

| |                                          |  | Troy
      Ounces |   |   | Spot
      Price |  |   | Balance   | 
| | ---------------------------------------- |  | ----------------- | - | - | ---------------- |  | - | --------- | 
| |                                          |  |                   |   |   |                  |  |   |           | 
| | Balance, November 30, 2006, at spot rate |  | 791               |   | $ | 646.70           |  | $ | 511,629   | 
| | Gold extracted                           |  | 3,778             |   |   |                  |  |   |           | 
| | Gold sold                                |  | (1,573            | ) |   |                  |  |   |           | 
| |                                          |  |                   |   |   |                  |  |   |           | 
| | Balance, November 30, 2007, at spot rate |  | 2,996             |   | $ | 783.50           |  | $ | 2,347,946 | 

The Company sold 1573 troy ounces of
gold (2006: 204 troy ounces) at an average of $743 (2006: $428) per troy ounce
for proceeds of $1,169,509 (2006: $87,357). Proceeds from sales of gold
extracted during exploration and test mining are recorded as a reduction of
exploration costs during the period the Company is in the exploration stage. In
addition, the net change in the value of inventory at November 30, 2007 of
$1,836,317 (2006: Nil) has been directly applied as a reduction of exploration
costs.

F-12

---

SILVERADO GOLD MINES LTD.(An Exploration Stage Company)
  NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 
  November 30, 2007 and 2006 
  (Stated in United States Dollars)

|Note 4 | Property, Plant and
      Equipment                                                                                                                                                                          
|------ | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|       |                                                                                                                                                                                                              
|       | Property, plant and equipment primarily include capital
      expenditure associated with the Companys Vancouver office, and mining
      equipment and camp facilities at the Nolan Gold Project in Alaska.

| |                                            |   |           |  |   | 2007         |  |   |           | 
| | ------------------------------------------ | - | --------- |  | - | ------------ |  | - | --------- | 
| |                                            |   |           |  |   | Accumulated  |  |   |           | 
| |                                            |   |           |  |   | Depreciation |  |   |           | 
| |                                            |   |           |  |   | and          |  |   | Net Book  | 
| |                                            |   | Cost      |  |   | Amortization |  |   | Value     | 
| | Offices                                    |   |           |  |   |              |  |   |           | 
| | Office leasehold improvements              | $ | 612,117   |  | $ | 21,861       |  | $ | 590,256   | 
| | Computer Equipment and software            |   | 105,797   |  |   | 73,022       |  |   | 32,775    | 
| | Furniture and Fittings                     |   | 394,358   |  |   | 389,006      |  |   | 5,352     | 
| |                                            |   |           |  |   |              |  |   |           | 
| | Mining Project                             |   |           |  |   |              |  |   |           | 
| | Nolan Gold Project buildings               |   | 63,000    |  |   | 63,000       |  |   | -         | 
| | Leasehold improvements                     |   | 48,123    |  |   | 2,406        |  |   | 45,717    | 
| | Nolan mining equipment                     |   | 1,489,962 |  |   | 632,029      |  |   | 857,934   | 
| | Nolan mining equipment under capital lease |   | 819,842   |  |   | 216,923      |  |   | 602,919   | 
| | Other equipment                            |   | 27,200    |  |   | 3,773        |  |   | 23,427    | 
| |                                            |   |           |  |   |              |  |   |           | 
| |                                            | $ | 3,560,399 |  | $ | 1,402,020    |  | $ | 2,158,379 | 

| |                              |   |           |  |   | 2006         |  |   |           | 
| | ---------------------------- | - | --------- |  | - | ------------ |  | - | --------- | 
| |                              |   |           |  |   | Accumulated  |  |   |           | 
| |                              |   |           |  |   | Depreciation |  |   |           | 
| |                              |   |           |  |   | and          |  |   | Net Book  | 
| |                              |   | Cost      |  |   | Amortization |  |   | Value     | 
| | Mining Project               |   |           |  |   |              |  |   |           | 
| | Nolan Gold Project buildings | $ | 63,000    |  | $ | 63,000       |  | $ | -         | 
| | Nolan mining equipment       |   | 869,630   |  |   | 431,754      |  |   | 437,876   | 
| | Nolan mining equipment       |   |           |  |   |              |  |   |           | 
| | under capital lease          |   | 819,842   |  |   | 216,923      |  |   | 602,919   | 
| | Other equipment              |   | 447,047   |  |   | 434,309      |  |   | 12,738    | 
| |                              |   |           |  |   |              |  |   |           | 
| |                              | $ | 2,199,519 |  | $ | 1,145,986    |  | $ | 1,053,533 | 

|Note 5 | Accounts Payable and Accrued
      Liabilities            
|------ | ----------------------------------------------------------
|       |                                                           
|       | Accounts payable and accrued
      liabilities consist of:

| |                  |   | 2007    |  |   | 2006    | 
| | ---------------- | - | ------- |  | - | ------- | 
| | Accounts payable | $ | 100,777 |  | $ | 233,802 | 
| | Accrued interest |   | 109,627 |  |   | 98,427  | 
| |                  | $ | 210,404 |  | $ | 332,229 | 

F-13

---

SILVERADO GOLD MINES LTD.(An Exploration Stage Company)
  NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 
  November 30, 2007 and 2006 
  (Stated in United States Dollars)

|Note 6 | Asset Retirement Obligations                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  
|------ | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|       |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               
|       | The Company adopted SFAS No. 143 on December 1, 2002.
      Upon adoption the Company increased its reclamation liability by $270,000,
      increased the carrying value of assets by $116,774 and recorded a
      cumulative effect adjustment of $153,226.                                                                                                                                                                                                                                                                                                                                                                                                                                                                
|       |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               
|       | Asset retirement obligations relate to the closure and
      reclamation of the Grant Mine Tailing Pond, and to the reclamation work
      associated with the Nolan Gold Project consisting of dismantling and
      removal of site structures and equipment, and reshaping and revegetating
      the disturbed areas. The Grant Mine assets were written off as impaired
      effective December 1, 2001 and an amount of $47,378 was also charged to
      operations in the year ended November 30, 2003 for the increase in the
      asset retirement obligations related to those Grant Mine assets. The
      Company has no assets legally restricted for purposes of settling asset
      retirement obligations.
|       |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               
|       | Reconciliation of asset retirement obligation for the
      year ended November 30, 2007:                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     

| |                            |   | Grant   |  |   | Nolan   |   |   |         |  
| | -------------------------- | - | ------- |  | - | ------- | - | - | ------- | -
| |                            |   | Mine    |  |   | Project |   |   | Total   |  
| | Balance, December 1, 2006  | $ | 347,287 |  | $ | 173,771 |   | $ | 521,058 |  
| | Accretion expense          |   |         |  |   | 26,053  |   |   | 26,053  |  
| | Liabilities settled        |   | -       |  |   | (17,801 | ) |   | (17,801 | )
| | Balance, November 30, 2007 | $ | 347,287 |  | $ | 182,023 |   | $ | 529,310 |  

|Note 7 | Convertible Debentures                                                                            
|------ | --------------------------------------------------------------------------------------------------
|       |                                                                                                   
|       | Convertible debentures
      outstanding at November 30, 2007 and 2006 consisted of the following:

| |                       |   | 2007     |   |   | 2006     |  
| | --------------------- | - | -------- | - | - | -------- | -
| | Issued in 1994        | $ | 140,000  |   | $ | 140,000  |  
| | Less: current portion |   | (140,000 | ) |   | (140,000 | )
| |                       | $ | -        |   | $ | -        |  

| | a) | On March 1, 2001, the Company completed negotiations to
      restructure its $1,860,000 convertible debentures. The replacement
      debentures aggregated $2,384,892 and consisted of the original $1,860,000
      principal amount plus all accrued interest to March 1, 2001. The
      debentures bear interest of 8.0% per annum. Interest is due and payable on
      a quarterly basis on February 28, May 31, August 31 and November 30. If
      the Company fails to make any payment of principal or interest, the
      Company must issue shares equivalent in value to the unpaid amounts of 20%
      below the average market price.
| | -- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        
| |    | Remaining debentures of $140,000 plus accrued interest of
      $109,627 are in default; however it is unclear whether they will be
      exchanged for replacement debentures as the bond holders could not be
      identified or did not respond to the Companys restructuring
    proposal.                                                                                                                                                                                                                                                                                                                                                       

F-14

---

SILVERADO GOLD MINES LTD.(An Exploration Stage Company)
  NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 
  November 30, 2007 and 2006 
  (Stated in United States Dollars)

|Note 8 | Capital Lease Obligations
|------ | -------------------------

| | a) | On October 11, 2002, the Company entered into a lease
      purchase agreement whereby the Company would purchase mining equipment
      valued at a total of $1,496,150. The agreement required payment upon
      signing of $550,000 (paid), $100,000 (paid) on or before December 1, 2004
      and 24 equal payments thereafter for the balance of the purchase price
      plus interest at a rate of 12% per annum.
| | -- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |    |                                                                                                                                                                                                                                                                                                                                                                                                                           
| | b) | On February 14, 2003, the Company entered into a
      three-year lease agreement whereby the company would purchase mining
      equipment valued at a total of $250,170. The agreement required payment
      upon signing of $105,000 (paid), $25,000 on or before December 4, 2004 and
      24 equal payments for the balance of the purchase price plus interest at a
      rate of 12% per annum.                  

|       | During the year ended November 30, 2004, the Company
      entered into an agreement to combine the two lease agreements. The new
      agreement required payment upon signing of $50,000 (paid), monthly
      payments of $25,000 until July 2007 for the balance of principal plus
      interest at a rate of 7.5% per annum.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        
|------ | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|       |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           
|       | The assets and liabilities under capital leases are
      recorded at the lower of the present value of the minimum lease payments
      or the fair value of the asset. The assets are amortized over their
      estimated productive lives which are estimated to be 10 years.
      Amortization of assets under capital leases charged to expense in 2007 was
      $0 (2006: $70,112).                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              
|       |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           
|       | The last payments to the above capital lease of $31,013
      will be made in fiscal 2008                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 
|       |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           
|Note 9 | Related Party Transactions                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                
|       |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           
|       | The Company has had related party transactions with
      Tri-Con Mining Ltd., Tri-Con Mining Inc. and Tri- Con Mining Alaska Inc.
      (collectively the Tri-Con Group), all of which are controlled by an
      officer and director of the Company.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 
|       |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           
|       | The Tri-Con Group are operations, exploration and
      development contractors and have been employed by the Company under
      contract since 1972 to carry out all the Companys fieldwork and to
      provide field administrative and management services. Under the current
      contract dated January, 1997, work is charged at cost plus 25% for
      exploration and cost plus 15% for development and mining. Cost includes
      out-of- pocket or actual cost plus 15% charge for office overhead
      including stand-by and contingencies. There is no mark-up on capital
      purchases. The Tri-Con Group does not charge the Company for the services
      of its directors who are also directors of the Company. For the year ended
      November 30, 2007, the Tri-Con Groups services focused mainly on
      corporate planning, mining, engineering and preparation for year round
      production on the Companys Nolan property; mining administration services
      at both the field and corporate offices, and administration services
      connected with the Low-Rank Coal-Water fuel project.
|       |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           
|       | The aggregate amounts paid to the Tri-Con Group for
      disbursements and for services rendered by the Tri- Con Group personnel
      and interest charged on outstanding balances at the Tri-Con Groups
      borrowing rate are shown below:                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         

F-15

---

SILVERADO GOLD MINES LTD.(An Exploration Stage Company)
  NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 
  November 30, 2007 and 2006 
  (Stated in United States Dollars)

| |                                                    |   | 2007      |  |   | 2006      | 
| | -------------------------------------------------- | - | --------- |  | - | --------- | 
| |                                                    |   |           |  |   |           | 
| |                                                    |   |           |  |   |           | 
| | Exploration, development and field services        | $ | 5,557,108 |  | $ | 3,687,946 | 
| | Office, Administrative and Management services     |   | 1,355,619 |  |   | 1,093,858 | 
| | Research                                           |   | -         |  |   | 129,698   | 
| |                                                    |   |           |  |   |           | 
| |                                                    | $ | 6,912,727 |  | $ | 4,911,502 | 
| |                                                    |   |           |  |   |           | 
| | Amount of total charges in excess of
      Tri-Con |   |           |  |   |           | 
| | costs incurred                                     | $ | 1,243,430 |  | $ | 760,324   | 
| |                                                    |   |           |  |   |           | 
| | Excess amount charged as a percentage of actual    |   |           |  |   |           | 
| | costs incurred                                     |   | 21.93%    |  |   | 18.32%    | 

|        | The amounts charged for services by the Tri-Con Group
      approximate the fair value of these costs had they been performed by arms
      length parties and are included in various captions of the Statements of
      Operations. At November 30, 2007 the Company owed the Tri-Con Group
      $1,214,717 (2006: $359,834) for services provided. The amounts are
      non-interest bearing and due on demand.
|------- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|        |                                                                                                                                                                                                                                                                                                                                                                                                                       
|Note 10 | Common Stock                                                                                                                                                                                                                                                                                                                                                                                                          

| | a) | Stock Options:                                                                                                   
| | -- | -----------------------------------------------------------------------------------------------------------------
| |    |                                                                                                                  
| |    | A summary of the change in stock options for the years
      ended November 30, 2007 and 2006 is presented
below:

| |                                                        |  |            |  |  | Weighted | 
| | ------------------------------------------------------ |  | ---------- |  |  | -------- | 
| |                                                        |  | Number     |  |  | Average  | 
| |                                                        |  | of         |  |  | Exercise | 
| |                                                        |  | Options    |  |  | Price    | 
| | 2007:                                                  |  |            |  |  |          | 
| | Outstanding and exercisable at November 30, 2006       |  | 63,180,000 |  |  | $0.07    | 
| | Granted                                                |  | 21,500,000 |  |  | $0.07    | 
| | Exercised                                              |  | 12,180,000 |  |  | $0.05    | 
| | Expired                                                |  | -          |  |  |          | 
| |                                                        |  |            |  |  |          | 
| | Outstanding and exercisable at November 30,
      2007 |  | 72,500,000 |  |  | $0.06    | 

F-16

---

SILVERADO GOLD MINES LTD.(An Exploration Stage Company)
  NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 
  November 30, 2007 and 2006 
  (Stated in United States Dollars)

| |                                                        |  |            |   |  | Weighted | 
| | ------------------------------------------------------ |  | ---------- | - |  | -------- | 
| |                                                        |  | Number     |   |  | Average  | 
| |                                                        |  | of         |   |  | Exercise | 
| |                                                        |  | Options    |   |  | Price    | 
| | 2006:                                                  |  |            |   |  |          | 
| | Outstanding and exercisable at November 30, 2005       |  | 32,630,000 |   |  | $0.07    | 
| | Granted                                                |  | 31,100,000 |   |  | $0.05    | 
| | Exercised                                              |  | -          |   |  |          | 
| | Expired                                                |  | (550,000   | ) |  | $0.07    | 
| |                                                        |  |            |   |  |          | 
| | Outstanding and exercisable at November 30,
      2006 |  | 63,180,000 |   |  | $0.07    | 

As of November 30, 2007 the following
stock options were outstanding:

Number of
    Exercise Price
    Expiration DateOptions600,000
    $0.15
    February 1, 20084,500,000
    $0.05
    December 4, 20084,200,000
    $0.05
    January 8, 201112,500,000
    $0.05
    June 30, 201129,800,000
    $0.05
    January 4, 201320,900,000
    $0.07
    January 11, 201372,500,000


In January 2007, 21,500,000 stock
options were granted to directors as well as to employees of the Tri-Con Group
at an exercise price of $0.07 with a six year term expiring January 11, 2013.
The prevailing market price of the Companys shares on the date of grant was
$0.067. The Company recognized stock compensation expense of $734,094 based on
the Black-Scholes option pricing model.

The Black-Scholes option pricing model
input variables used are as follows:

Risk free interest rate
    5.10%Dividend free yield
    0%Expected volatility
    74.5%Expected term of stock option
    3 years


The exercise price of all options
issued under our 2007 Stock Option Plan was $0.07 per share. The expected term
was calculated using the simplified approach as outlined in SAB 107.

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.

F-17

---

SILVERADO GOLD MINES LTD.(An Exploration Stage Company)
  NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 
  November 30, 2007 and 2006 
  (Stated in United States Dollars)

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

In 2006 the Company granted 49,400,000
stock options to directors of the Company and 7,100,000 stock options to certain
employees of the Tri-Con Group. The Company did not record a compensation
expense on the granting of stock options to employees and directors, but
provided disclosure of the pro forma loss per share information had the Company
elected to follow the fair value method. Using the Black-Scholes option pricing
model the pro forma information was as follows:

2006Net loss for the year as reported
    $
    (7,683,002
    )Stock-based compensation
    
    (1,637,692
    )Pro forma net loss for the year
    $
    (9,320,694
    )Pro forma basic and diluted loss per share
    $
    (0.02
    )


The following assumptions were used in
the Black-Scholes model to calculate the 2006 charge:

Risk free interest rate
    4.31%Dividend free yield
    0%Expected volatility
    107%Weighted average expected stock option life
    2.6 years


The weighted average fair value of the
stock options granted to directors of the Company and certain employees of the
Tri-Con Group was $0.08 per share.

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.

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

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

F-18

---

SILVERADO GOLD MINES LTD.(An Exploration Stage Company)
  NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 
  November 30, 2007 and 2006 
  (Stated in United States Dollars)

| | b) | Warrants:                                                                                                                                          
| | -- | ---------------------------------------------------------------------------------------------------------------------------------------------------
| |    |                                                                                                                                                    
| |    | Warrants outstanding as at November 30, 2007 are
      exercisable into one common share for each warrant held and are summarized
      as follows:

ExercisePrice perNumber of
    WarrantWarrants
    $
    Expiration Date13,833,333
    0.1200
    March 31, 20088,458,000
    0.1200
    April 4, 20085,188,334
    0.1200
    April 7, 20084,950,001
    0.1200
    April 25, 200812,500,001
    0.1000
    September 4, 200810,833,334
    0.1000
    September 17, 20086,250,000
    0.1000
    September 24, 200862,013,003


| | c) | Convertible Debentures  Note
7
| | -- | -------------------------------

|Note 11 | Equity Compensation Plan                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        
|------- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|        |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 
|        | In 2007 the Company established an Equity Compensation
      Plan (the Plan) to encourage certain directors, officers, employees,
      employees of affiliated companies and consultants to acquire and hold
      stock in the Company as an added incentive to remain with the Company, and
      to enable the Company to attract and retain capable individuals. The
      number of shares issued under the Plan may not exceed 25,000,000 in
      aggregate. Options granted under the Plan may include non-qualified stock
      options as well as incentive stock options intended to qualify under
      Section 422 of the Internal Revenue Code. Each stock option plan agreement
      specifies when all or any installment of the option becomes exercisable.
|        |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 
|        | In January 2007, 21,500,000 stock options were granted to
      directors and certain employees of the Tri- Con Group.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          
|        |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 
|Note 12 | Income Taxes                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    
|        |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 
|        | Tax effects of temporary differences that give rise to
      deferred tax assets at November 30, 2007 and 2006 are as
  follows:                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                

| |                                                    |   | 2007        |   |   | 2006        |  
| | -------------------------------------------------- | - | ----------- | - | - | ----------- | -
| |                                                    |   |             |   |   |             |  
| | Net operating loss carry forwards                  | $ | 18,253,000  |   | $ | 14,507,000  |  
| | Temporary differences arising from mineral         |   |             |   |   |             |  
| | properties and building, plant and
      equipment |   | 2,115,933   |   |   | 271,000     |  
| | Valuation allowance                                |   | (20,368,933 | ) |   | (14,778,000 | )
| |                                                    |   |             |   |   |             |  
| | Net future tax asset                               | $ | -           |   | $ | -           |  

F-19

---

SILVERADO GOLD MINES LTD.(An Exploration Stage Company)
  NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 
  November 30, 2007 and 2006 
  (Stated in United States Dollars)

At November 30, 2007, the Company had
losses carried forward totaling $28,025,000 available to reduce future years
income for U.S. income tax purposes which expire in various years to 2027. In
addition, we had losses carried forward in Canada totaling CDN$20,490,000 which
expire in various years to 2027.

The provision for income taxes differs
from the amount computed by applying the Canadian statutory federal income tax
rate of 34.12% (2006: 38%) to net loss before provision for income taxes. The
sources and tax effects of the differences are as follows:

| |                                         |   | 2007       |   |   | 2006       |  
| | --------------------------------------- | - | ---------- | - | - | ---------- | -
| |                                         |   |            |   |   |            |  
| | Computed expected tax benefit         | $ | (2,603,000 | ) | $ | (2,883,000 | )
| | Tax loss expired during the year        |   | 550,000    |   |   | 449,000    |  
| | Temporary differences and other         |   | 5,000      |   |   | 811,000    |  
| | Change in valuation allowance and other |   | 2,048,000  |   |   | 1,623,000  |  
| |                                         |   |            |   |   |            |  
| | Income tax provision                    | $ | -          |   | $ | -          |  

|Note 13 | Commitments and
      Contingencies
|------- | -----------------------------------

| | a) | Contingent payments on Mineral Claims
  Properties
| | -- | --------------------------------------------------

| | 1) | Ester Dome Gold Project, Fairbanks Mining District,
      Alaska                                                                                                                                                                  
| | -- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |    |                                                                                                                                                                                                                                   
| |    | The Ester Dome Gold Project encompasses all of the
      Companys properties on Ester Dome, which is accessible by road 10 miles
      northwest of Fairbanks, Alaska. The specific properties at this site are
      as follows:

| | i)   | Grant Mine                                                                                                                                                                                                      
| | ---- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |      |                                                                                                                                                                                                                 
| |      | This property consists of 26 state mineral claims subject
      to payments of 15% of net profits until $2,000,000 has been paid and 3% of
      net profits thereafter.                                        
| |      |                                                                                                                                                                                                                 
| | ii)  | May (St. Paul)/Barelka:                                                                                                                                                                                         
| |      |                                                                                                                                                                                                                 
| |      | This gold property consists of 22 state mineral claims
      subject to payments of 15% of net profits until $2,000,000 (inflation
      indexed from 1979) has been paid and 3% of net profits
  thereafter.   
| |      |                                                                                                                                                                                                                 
| | iii) | Dobbs:                                                                                                                                                                                                         
| |      |                                                                                                                                                                                                                 
| |      | This property consists of 1 unpatented Federal mineral
      claim and 4 State mineral claims subject to payments of 15% of net profits
      until $1,500,000 has been paid and 3% of net profits
  thereafter.

| | 2) | Nolan Gold Project, Wiseman Mining District,
  Alaska                                                                                                                                                                                     
| | -- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |    |                                                                                                                                                                                                                                           
| |    | The Nolan Gold Project consists of 4 contiguous
      properties covering approximately 6 square miles, 8 miles west of Wiseman
      and 175 miles north of Fairbanks, Alaska. The specific properties at this
      site are as follows:

| | i)  | Nolan Placer:                                                                                                                                  
| | --- | -----------------------------------------------------------------------------------------------------------------------------------------------
| |     |                                                                                                                                                
| |     | This property consists of 158 unpatented Federal placer
      claims.                                                                          
| |     |                                                                                                                                                
| | ii) | Thompsons Pup:                                                                                                                                
| |     |                                                                                                                                                
| |     | This property consists of 6 unpatented Federal placer
      claims and is subject to a royalty of 3% of net profits on 80% of
      production.

F-20

---

SILVERADO GOLD MINES LTD.(An Exploration Stage Company)
  NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 
  November 30, 2007 and 2006 
  (Stated in United States Dollars)

| | iii) | Dionne (Marys Bench):                                                                                                                                
| | ---- | ------------------------------------------------------------------------------------------------------------------------------------------------------
| |      |                                                                                                                                                       
| |      | This property consists of 15 unpatented Federal placer
      claims.                                                                                  
| |      |                                                                                                                                                       
| | iv)  | Smith Creek:                                                                                                                                          
| |      |                                                                                                                                                       
| |      | This property consists of 35 unpatented Federal placer
      claims.                                                                                  
| |      |                                                                                                                                                       
| | v)   | Nolan Lode:                                                                                                                                           
| |      |                                                                                                                                                       
| |      | This property consists of 67 unpatented Federal lode
      claims. The lode claims overlie much of the placer properties and extend
      beyond them.
| |      |                                                                                                                                                       
| |      | During the year ended November 30, 2003, the Company
      staked 36 unpatented Federal lode claims.                                                  

| | 3) | Hammond Property, Wiseman Mining District,
  Alaska                                                                                                                                                                                                                                                                                                                                                                                                                                
| | -- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    
| |    | This property consists of 24 Federal placer claims and 36
      Federal lode claims covering one and one- half square miles and adjoining
      the Nolan Gold Properties. The Company is obligated to pay a royalty equal
      to 10% of gross production and is subject to a minimum royalty of $80,000
      per year. As at November 30, 2007, royalty payments totaling $360,000
      (2006: $380,000) are unpaid, in arrears, and included in mineral claims
      payable.
| |    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    
| | 4) | Eagle Creek Property, Fairbanks Mining District,
      Alaska                                                                                                                                                                                                                                                                                                                                                                                                                      
| |    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    
| |    | This property consists of 77 state mineral claims. The
      Company has an option agreement to purchase a 100% interest in the
      property for $400,000 of which $68,000 remains to be paid. The amount of
      $5,000 per year is required to be paid to keep the agreement in good
      standing.                                                                                                                                                                          

| | b) | Severance Agreements with Directors                                                                                                                                                                                                                                                                                                                                                                                                                                                                              
| | -- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  
| |    | The Company has entered into compensation agreements with
      two officers and directors of the Company. The agreements provide for
      severance arrangements where a change of control of the Company occurs, as
      defined, and the directors are terminated. The compensation payable to the
      two directors aggregates $4,100,000 (2006: $4,100,000) plus the amount of
      annual bonuses and other benefits that they would have received in the
      eighteen months following termination.
| |    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  
| | c) | Consulting Agreements                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            
| |    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  
| |    | The Company has entered into consulting agreements with
      two individuals for various corporate planning and business development
      services to the Company. Under the terms of the agreements, the Company
      will issue 10,600,000 shares in aggregate over the length of the contracts
      which range in length from six months to two years, concluding in January
      2008.                                                                                                                 
| |    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  
| |    | The value of consulting fees paid in shares is calculated
      by multiplying the number of shares issued by the closing price on the day
      the shares were issued.                                                                                                                                                                                                                                                                                                                                         
| |    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  
| | d) | Office Lease                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     
| |    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  
| |    | The Company entered into a seven year office lease
      agreement expiring in July 2014 for its Vancouver office when obliged to
      vacate its previous lease location at the expiry of the lease. The
      Companys future minimum lease payments under this lease are as
      follows:                                                                                                                                                                                                                  

| | Years ending November 30, 2008 - 2011 | $ | 494,728 | 
| | ------------------------------------- | - | ------- | 
| | Year ending November 30, 2012         |   | 125,664 | 
| | Year ending November 30, 2013         |   | 128,439 | 

F-21

---

SILVERADO GOLD MINES LTD.(An Exploration Stage Company)
  NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 
  November 30, 2007 and 2006 
  (Stated in United States Dollars)

Year ending November 30, 2014
    
    74,923$
    823,754


The Company entered into a five year office lease agreement
  expiring in February 2012 for its Fairbanks, Alaska office at an annual lease
  cost of $18,000 subject to a 4% increase per annum The Companys future
  minimum lease payments under this lease are as follows:

|Year ending November 30, 2008       | $ 18,660
|----------------------------------- | --------
|Year ending
      November 30, 2009 | 19,406  
|Year ending November 30, 2010       | 20,183  
|Year ending
      November 30, 2011 | 20,990  
|Year ending November 30, 2012       | 3,510   
|                                    | $ 82,749

|        | Annual rent payments in the
      current year amounted to $165,679 (2006: $143,635).
|------- | -------------------------------------------------------------------------------------
|        |                                                                                      
|Note 14 | Segment Disclosures                                                                  

| | a) | Reportable Segments                                                                                                                                                                                                                                       
| | -- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |    |                                                                                                                                                                                                                                                           
| |    | The Company operates in one reportable segment being the
      acquisition, exploration and development of mineral properties. The
      Companys development of low-rank coal-water fuel is in its initial stages
      and is not a reportable segment.
| |    |                                                                                                                                                                                                                                                           
| | b) | Geographical Information                                                                                                                                                                                                                                  
| |    |                                                                                                                                                                                                                                                           
| |    | The following presents financial information about
      geographical areas:                                                                                                                                                                              

| |                        |   | 2007      |  |   | 2006      | 
| | ---------------------- | - | --------- |  | - | --------- | 
| |                        |   |           |  |   |           | 
| | Net loss for the year: |   |           |  |   |           | 
| | Canada                 | $ | 3,985,004 |  | $ | 2,218,513 | 
| | United States          |   | 3,172,843 |  |   | 5,464,489 | 
| |                        |   |           |  |   |           | 
| |                        | $ | 7,157,847 |  | $ | 7,683,002 | 
| | Long-lived assets:     |   |           |  |   |           | 
| | Canada                 |   | 628,383   |  |   | 12,738    | 
| | United States          |   | 1,529,996 |  |   | 1,040,795 | 
| |                        |   |           |  |   |           | 
| |                        | $ | 2,158,379 |  | $ | 1,053,533 | 

F-22

---

SILVERADO GOLD MINES LTD.(An Exploration Stage Company)
  NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 
  November 30, 2007 and 2006 
  (Stated in United States Dollars)

|Note 15 | Non-Cash Transactions                                                                                                                                                                                                                                                                   
|------- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|        |                                                                                                                                                                                                                                                                                         
|        | Investing and financing activities that do not have a
      direct impact on current cash flows are excluded from the cash flow
      statements. The following transactions were excluded from the statements
      of cash flows: During the year ended November 30, 2007 the Company:

| | a) | Issued 9,285,000 shares at various prices for total
      proceeds of $872,400 pursuant to payment of consulting fees;              
| | -- | ------------------------------------------------------------------------------------------------------------------------------------
| |    |                                                                                                                                     
| | b) | Issued 2,696,609 shares at various prices for total
      proceeds of $236,016 in settlement of accounts payable for legal
    fees;
| |    |                                                                                                                                     
| | c) | Utilized prior years share subscriptions of $237,600 for
      the issuance of common shares.                                      

During the year ended November 30,
2006 the Company:

| | a) | Issued 6,075,000 common shares at various prices for
      total proceeds of $767,250 pursuant to payment of consulting
  fees;
| | -- | -------------------------------------------------------------------------------------------------------------------------------
| |    |                                                                                                                                
| | b) | Utilized prior years share subscriptions of $54,500 for
      the issuance of common shares.                                  

|Note 16 | Subsequent Events                                  
|------- | ---------------------------------------------------
|        |                                                    
|        | Subsequent to November 30, 2007,
      the Company:

| | a) | Issued 59,198,460 units at an average price of $0.0336
      for the aggregate purchase price of $1,991,546 in February 2008. Each unit
      consists of one share of restricted common stock and one half-warrant,
      with a full warrant (consisting of two half-warrants) being exercisable
      for a period of one year for the purchase of one share of restricted
      common stock at a per share exercise price of $0.07.
| | -- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |    |                                                                                                                                                                                                                                                                                                                                                                                                                                         
| | b) | Issued 4,166,667 shares at $0.035 totaling $145,833 in
      February 2008 pursuant to the exercise of common stock purchase
      warrants.                                                                                                                                                                                                                                                                                            
| |    |                                                                                                                                                                                                                                                                                                                                                                                                                                         
| | c) | Issued 500,000 shares at an average of $0.06 totaling
      $30,000 pursuant to consulting agreements in February 2008.                                                                                                                                                                                                                                                                                                                 
| |    |                                                                                                                                                                                                                                                                                                                                                                                                                                         
| | d) | Issued 44,000,000 units at $0.0312 for the aggregate
      purchase price of $1,375,000 in January 2008. Each unit consists of one
      share of restricted common stock and one half-warrant, with a full warrant
      (consisting of two half-warrants) being exercisable for a period of one
      year for the purchase of one share of restricted common stock at a per
      share exercise price of $0.07.                     
| |    |                                                                                                                                                                                                                                                                                                                                                                                                                                         
| | e) | Issued 1,484,563 shares at $0.035 totaling $51,960 in
      January 2008 pursuant to the exercise of common stock purchase
      warrants.                                                                                                                                                                                                                                                                                              
| |    |                                                                                                                                                                                                                                                                                                                                                                                                                                         
| | f) | Issued 2,300,000 shares at an average of $0.068 totaling
      $156,000 pursuant to consulting agreements in January 2008.                                                                                                                                                                                                                                                                                                              
| |    |                                                                                                                                                                                                                                                                                                                                                                                                                                         
| | g) | Issued 8,458,023 units at $0.035 per unit totaling
      $296,031 in December 2007 pursuant to the exercise of common stock
      purchase warrants.                                                                                                                                                                                                                                                                                    
| |    |                                                                                                                                                                                                                                                                                                                                                                                                                                         
| | h) | Issued 13,000,000 units at $0.03 per unit for the
      aggregate purchase price of $390,000 in December                                                                                                                                                                                                                                                                                                                                

F-23

---

SILVERADO GOLD MINES LTD.(An Exploration Stage Company)
  NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 
  November 30, 2007 and 2006 
  (Stated in United States Dollars)

| |    | 2007. Each such unit consists of one share of restricted
      common stock and one half-warrant, with a full warrant (consisting of two
      half-warrants) being exercisable for a period of one year for the purchase
      of one share of restricted common stock at a per share exercise price of
      $0.07.                                   
| | -- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |    |                                                                                                                                                                                                                                                                                                                                                         
| | i) | Issued 8,055,000 shares at $0.0342 totaling $275,136 in
      December 2007 pursuant to the exercise in November 2007 of common stock
      purchase warrants.                                                                                                                                                                                          
| |    |                                                                                                                                                                                                                                                                                                                                                         
| | j) | Entered into a lease purchase agreement in December 2007
      to purchase mining equipment valued at $555,385. The agreement requires
      payment upon signature of $55,538 (paid), and 36 equal payments commencing
      upon delivery. The annual percentage rate implicit in the lease will be
      the rate prevailing at the time of delivery.
| |    |                                                                                                                                                                                                                                                                                                                                                         
| | k) | Sold 465.89 troy ounces of gold for proceeds of $372,593
      in December 2007.                                                                                                                                                                                                                                                                        

F-24

---

ITEM 8. CHANGES IN AND DISAGREEMENTS WITH
ACCOUNTANTS ON ACCOUNTING AND FINANCIAL DISCLOSURE.

We have not had any disagreements with our former accountants
on any matter of accounting principles or practices, financial statement
disclosure, or auditing scope or procedure.

ITEM 8A. CONTROLS AND PROCEDURES.

As required by Rule 13a-15 under the Securities Exchange Act of
1934 (the Exchange Act), we carried out an evaluation of the effectiveness of
the design and operation of our disclosure controls and procedures and our
internal control over financial reporting as of November 30, 2007, being the
date of our most recently completed fiscal year end. This evaluation was carried
out under the supervision and with the participation of our Chief Executive
Officer and Chief Financial Officer, Garry L. Anselmo. Based upon that
evaluation, our Chief Executive Officer and Chief Financial Officer concluded
that our disclosure controls and procedures and our internal control over
financial reporting are effective to ensure, among other things, that the
information required to be disclosed by us in the reports that we file or submit
under the Exchange Act is accumulated, recorded, processed, communicated, and
reported within the time periods specified by the rules and forms of the
Securities and Exchange Commission.

The term internal control over financial reporting is defined
as a process designed by, or under the supervision of, our principal executive
and principal financial officers, or persons performing similar functions, and
effected by our board of directors, management and other personnel, to provide
reasonable assurance regarding the reliability of financial reporting and the
preparation of financial statements for external purposes in accordance with
generally accepted accounting principles and includes those policies and
procedures that:

| | (1) | Pertain to the maintenance of records that in reasonable
      detail accurately and fairly reflect our transactions and dispositions of
      assets;                                                                                                                                                                                   
| | --- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |     |                                                                                                                                                                                                                                                                                                                                          
| | (2) | Provide reasonable assurance that transactions are
      recorded as necessary to permit preparation of financial statements in
      accordance with generally accepted accounting principles, and that
      receipts and expenditures are being made only in accordance with
      authorizations of our management and directors; and
| |     |                                                                                                                                                                                                                                                                                                                                          
| | (3) | Provide reasonable assurance regarding prevention or
      timely detection of unauthorized acquisition, use or disposition of our
      assets that could have a material effect on our financial
    statements.                                                                                                                       

During our most recently completed fiscal year ended November
30, 2007, there were no changes that had a material effect on, or are reasonably
likely to affect, our internal control over financial reporting.

ITEM 8B. OTHER INFORMATION.

Not applicable.

58

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|ITEM 9. DIRECTORS, EXECUTIVE OFFICERS,
      PROMOTERS AND CONTROL PERSONS; COMPLIANCE WITH SECTION 16(A) OF THE
      EXCHANGE ACT.
|------------------------------------------------------------------------------------------------------------------------------------

Our current executive officers, directors, and significant
employees are:

|Name                        | Age | Position                                                                                                
|--------------------------- | --- | --------------------------------------------------------------------------------------------------------
|Garry L. Anselmo            | 64  | Chairman of the Board of Directors; President, Chief
      Executive Officer, Chief Financial Officer   
|James F. Dixon (1)          | 60  | Director                                                                                                
|Stuart C. McCulloch (1)     | 72  | Director                                                                                                
|John R. Mackay              | 75  | Secretary                                                                                               
|Dr. Karsten Eden            | 36  | Vice President, Exploration of Silverado Gold Mines Inc.                                                
|Dr. Warrack G. Willson      | 64  | Vice-President, Fuel Technology of Silverado Green Fuel
      Inc.                                      
|Daniel L. Basketfield, P.E. | 54  | Vice President, Environmental Engineering, Silverado Gold
      Mines Inc. and Silverado Green Fuel Inc.
|Irma Mungal                 | 55  | Vice-President, Administration                                                                          

(1) Member of Silverado's Audit Committee and Compensation
Committee.

Set forth below is a brief description of the background and
business experience of each of our executive officers, directors, and
significant employees for the past five years:

Garry L. Anselmo

Mr. Anselmo is presently the chairman of our board of directors
and is our president, chief executive officer and chief financial officer. Mr.
Anselmo is also the chairman of the board of directors and the chief executive
officer and chief financial officer of our wholly owned subsidiary, Silverado
Green Fuel Inc. Mr. Anselmo has been the chairman of our board of directors and
our chief operating officer since 1973. Mr. Anselmo has been our president,
chief executive officer and chief financial officer from 1973 to 1994 and from
1997 to present. Mr. Anselmo founded Tri-Con Mining Ltd., a private exploration
service company, in 1968, and is currently a shareholder, director, and
president of Tri-Con Ltd. He is also the chairman and director of Tri-Con Ltd.s
United States operating subsidiaries, Tri-Con Mining Inc. and Tri-Con Mining
Alaska Inc. Mr. Anselmo obtained his bachelor of arts degree from Simon Fraser
University in British Columbia, Canada.

James F. Dixon

Mr. Dixon has been one of our directors since May 6, 1988. Mr.
Dixon is presently a lawyer and a partner in the law firm of Shandro Dixon
Edgson, Barristers and Solicitors, of Vancouver, British Columbia. Mr. Dixon has
been engaged in the practice of law since 1973. Mr. Dixon holds a bachelor of
commerce degree and a bachelor of law degree.

59

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Stuart C. McCulloch

Mr. McCulloch has been one of our directors since December 14,
1998. Mr. McCulloch is also a director of our subsidiary, Silverado Green Fuel
Inc. Mr. McCulloch retired as district manager from Canada Safeway in January,
1991.

John R. Mackay

Mr. Mackay has served as our corporate secretary since June
1998. Mr. Mackay is a lawyer who practiced as a sole practitioner from March
1993 to June 1998 prior to joining Silverado. Prior to 1993, Mr. Mackay was a
lawyer and partner in the law firm Davis and Company, Barristers and Solicitors,
of Vancouver, British Columbia where he practiced for 35 years.

Dr. Karsten Eden

Dr. Eden was appointed our vice-president exploration,
Silverado Gold Mines Inc., in July 2006. Dr. Eden holds a Masters Degree in
Economic Geology from the Technical University of Clausthal. He focused his
thesis on the Geology and Gold Mineralization of the Nolan Area in the Brooks
Range, Alaska. Dr. Eden also holds a doctorate in Exploration Geology with an
emphasis on GIS applications in mineral exploration from the University of
Technology Aachen. He has received two internationally recognized research
awards for his academic achievements.

Dr. Warrack G. Willson

Dr. Willson was appointed our vice-president, fuel technology,
in March 2000, to lead the conversion of the Grant Mill into a commercial level
Low-Rank Coal-Water Fuel plant. Dr. Willson received a supervisory chemical
engineering rating from the US Civil Service Commission in 1978, a PhD in
physical chemistry from the University of Wyoming in 1970 and a bachelor of arts
in chemistry and mathematics from the University of Northern Colorado in 1965.
He founded Coal-Water Fuel Services in 1994, which provides engineering services
to develop clean coal conversion projects to develop low cost and non-hazardous
alternatives to oil.

Daniel L. Basketfield, P.E.

Daniel L. Basketfield, P.E., appointed in March of 2007 as Silverado
  Gold Mines Inc. and Green Fuel Inc. Vice President, Environmental Engineering,
  brings the Company public, private, and industry expertise gained through more
  than 19 years of experience as a practicing professional engineer. A licensed
  civil engineer in the states of Washington, Alaska and Hawaii, and licensed
  agricultural engineer in the State of Oregon. Mr. Basketfield was educated as
  an Agricultural Engineer (B.S., M.S) at Oregon State University, and engaged
  in additional study at the University of Alaska Fairbanks. Across his career
  he has served in various positions that include Senior Water Resources Engineer
  and Acting Water Resources Business Area Manager for Seattle Public Utilities,
  co-founder of a private engineering firm specializing in Interior Alaska water
  and wastewater systems, Senior Environmental Engineer for Tri-con Mining Alaska
  Inc., Environmental Engineer and Interior District Contaminated Sites Coordinator
  for the Alaska Department of Environmental Conservation, and Tribal Agricultural
  Engineer for the Confederated Salish and Kootenai Tribes of Northwest Montana.
  Mr. Basketfield has also had the opportunity to engage in work with NOAAs
  Climate Change Science Program as an advisor and contributing author on decision
  support systems, and has independently co-authored several papers on topics
  that include the non-linear analysis of hydrologic and climatic data.

60

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Irma Mungal

Ms. Irma Mungal was appointed our Vice-President Administration
of Silverado Gold Mines Ltd. in November of 2007. Ms. Mungal holds degrees in
Human Resource Management and Business Administration with majors in Management.
She has also engaged in studies in Labor Relations, and is a registered School
Teacher in the Caribbean. Ms. Mungal has also been licensed with the Manitoba
Securities Commission, and the British Columbia Securities Commission. As a
representative of a leading financial institution Ms. Mungal was responsible for
operations risk management across western Canada. She also served various roles
including as an investment adviser and retirement planner.

Family Relationships

Mr. Anselmo and Mr. McCulloch, each of whom is one of our
directors, are cousins. Mr. Anselmo and Ms. Mungal are husband and wife.

There are no other family relationships among any of our
directors, executive officers, or persons nominated or chosen as our directors
or executive officers.

Involvement in Certain Legal Proceedings

None.

Terms of Office

Our directors are elected to hold office until the next annual
meeting of our shareholders and until their respective successors have been
elected and qualified. Our executive officers are appointed by our board of
directors to hold office until their successors are appointed. The last annual
meeting of our shareholders was held on May 17, 2004.

Audit Committee

Our audit committee is comprised of James Dixon and Stuart McCulloch.
  Our board of directors has determined that each member of our audit committee
  is independent as that term is defined in Rule 121 of the American Stock Exchange
  listing standards. Our board of directors has determined none of the directors
  on our audit committee presently meets the definition of a financial expert
  based on their respective experience and qualification. Our audit committee
  presently does not include a member who has been determined by our board of
  directors to qualify as a financial expert. Our board of directors
  is presently looking for a suitable candidate to join as a member of our board
  of directors and who would meet the definition of financial expert.
  We were unable to identify such a candidate during our last fiscal year.

61

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Code of Ethics

We adopted a Code of Ethics applicable to our Chief Executive
Officer, Chief Financial Officer, Corporate Controller and certain other finance
executives, which is a "code of ethics" as defined by applicable rules of the
SEC.. If we make any amendments to our Code of Ethics other than technical,
administrative, or other non-substantive amendments, or grant any waivers,
including implicit waivers, from a provision of our Code of Ethics to our chief
executive officer, chief financial officer, or certain other finance executives,
we will disclose the nature of the amendment or waiver, its effective date and
to whom it applies on our website at www.silverado.com or in a report on Form
8-K filed with the SEC.

Compliance With Section 16(a) of the Exchange
Act

Based on its review of any copies of Forms 3, 4, and 5 (and any
amendments thereto) received by the Company with respect to its most recent
fiscal year, the Company believes that all applicable filing requirements were
complied with by reporting persons.

ITEM 10. EXECUTIVE COMPENSATION.

Executive Compensation

The following summary compensation table sets forth certain
compensation information for Mr. Garry L. Anselmo, our principal executive
officer. No other executive officer of the Company received compensation in
excess of $100,000 during our last completed fiscal year.

SUMMARY COMPENSATION
        TABLEName and 
        principal 
        position (a)
      Year 
        (b)
      Salary 
        ($) 
        (c)
      Bonus 
        ($) 
        (d)
      Stock 
        Awards 
        ($) 
        (e)
      Option 
        Awards 
        ($) 
        (f)
      Non-Equity 
        Incentive Plan 
        Compensation 
        ($) 
        (g)
      Nonqualified 
        Deferred 
        Compensation 
        Earnings 
        ($) 
        (h)
      All Other 
        Compensation 
        ($) 
        (i)
      Total 
        ($) 
        (j)Garry L 
        Anselmo, 
        Principal 
        Executive 
        Officer
      2007
      0
      0
      0
      341,439 (1)
      0
      0
      0
      341,4392006
      0
      0
      0
      663,283 (2)
      0
      0
      0
      663,283


| | 1) | Mr. Anselmo was granted 10,000,000 options on January 11,
      2007. The options have an exercise price of $0.07, vested immediately, and
      expire on January 11, 2013. The value of the option award was computed in
      accordance with the provisions of FAS 123R.
| | -- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | 2) | Mr. Anselmo was granted 15,000,000 options on January 4,
      2006. The options have an exercise price of $0.05, vested immediately, and
      expire on January 4, 2013. The value of the option award was computed in
      accordance with the provisions of FAS 123R.  

We are party to a compensation agreement with Mr. Anselmo. The
  agreement provides for severance arrangements if a change of control of the
  Company occurs, as defined, and he is terminated. The compensation payable to
  Mr. Anselmo would include a lump sum payment of $4,000,000 plus the amount of
  annual bonuses that Mr. Anselmo would be entitled to receive for the eighteen
  month period following termination, plus benefits for the eighteen month period
  following termination.

62

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Outstanding Equity Awards At Fiscal Year-End

The following table sets forth information regarding
outstanding equity awards of Mr. Anselmo at our fiscal year-end. No other
executive officer of the Company received compensation in excess of $100,000
during our last completed fiscal year.

63

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OUTSTANDING EQUITY AWARDS
        AT FISCAL YEAR-ENDOPTION AWARDS
      STOCK AWARDSName 
        (a)
      Number of 
        Securities 
        Underlying 
        Unexercised 
        Options 
        (#) 
        Exercisable 
        (b)
      Number of 
        Securities 
        Underlying 
        Unexercised 
        Options 
        (#) 
        Unexercisable 
        (c)
      Equity 
        Incentive 
        Plan Awards: 
        Number of 
        Securities 
        Underlying 
        Unexercised 
        Unearned 
        Options 
        (#) 
        (d)
      Option 
        Exercise 
        Price 
        ($) 
        (e)
      Option 
        Expiration 
        Date 
        (f)
      Number of 
        Shares or 
        Units of 
        Stock That 
        Have Not 
        Vested 
        (#) 
        (g)
      Market Value 
        of Shares or 
        Units of Stock 
        That Have Not 
        Vested 
        ($) 
        (h)
      Equity Incentive 
        Plan Awards: 
        Number of 
        Unearned 
        Shares, Units or 
        Other Rights 
        That Have Not 
        Vested 
        (#) 
        (i)
      Equity Incentive 
        Plan Awards: 
        Market or Payout 
        Value of 
        Unearned 
        Shares, Units or 
        Other Rights 
        That Have Not 
        Vested 
        (#) 
        (j)Garry L. 
        Anselmo, 
        Principal 
        Executive 
        Officer
      10,000,000
      0
      0
      0.07
      January 11, 2013
      0
      0
      0
      015,000,000
      0
      0
      0.05
      January 4, 2013
      0
      0
      0
      03,000,000
      0
      0
      0.05
      December 4, 2008
      0
      0
      0
      02,500,000
      0
      0
      0.05
      January 8, 2011
      0
      0
      0
      06,000,000
      0
      0
      0.05
      July 8, 2011
      0
      0
      0
      0Total
      36,500,000
      0
      0
      
      
      0
      0
      0
      0


CompensationofDirectors

The following table sets forth certain compensation information
for the members of our Board of Directors.

64

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DIRECTOR COMPENSATIONName 
        (a)
      Fees 
        Earned or 
        Paid in 
        Cash 
        ($) 
        (b)
      Stock 
        Awards 
        ($) 
        (c)
      Option 
        Awards 
        ($) 
        (d)
      Non-Equity 
        Incentive Plan 
        Compensation 
        ($) 
        (e)
      Change in 
        Pension Value 
        and Nonqualified 
        Deferred 
        Compensation 
        Earnings 
        ($) 
        (f)
      All Other 
        Compensation 
        ($) 
        (g)
      Total 
        ($) 
        (j)Stuart C. McCulloch
      0
      0
      68,288 (1)
      0
      0
      0
      68,288James F. Dixon
      0
      0
      68,288 (2)
      0
      0
      0
      68,288


|1) | Mr. McCulloch was granted 2,000,000 options on January
      11, 2007. The options have an exercise price of $0.07, vested immediately,
      and expire on January 11, 2013. The value of the option award was computed
      in accordance with the provisions of FAS 123R.
|-- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|   |                                                                                                                                                                                                                                                                              
|2) | Mr. Dixon was granted 2,000,000 options on January 11,
      2007. The options have an exercise price of $0.07, vested immediately, and
      expire on January 11, 2013. The value of the option award was computed in
      accordance with the provisions of FAS 123R.    

With the exception of periodic grants of stock incentive
options, we do not compensate our directors for serving in such capacities. Our
2006 Stock Option Plan, our 2006-II Stock Option Plan, and our 2007 Stock Option
Plan each permit the grant of incentive stock options to our directors.

We have entered into a compensation agreement with Mr. Dixon.
The agreement provides for severance arrangements if a change of control of
Silverado occurs and Mr. Dixon is terminated. The compensation payable to Mr.
Dixon would include a lump sum payment of $100,000 plus the amount of annual
bonuses that Mr. Dixon would be entitled to receive for the eighteen month
period following termination, plus benefits for the eighteen month period
following termination. The compensation that would be payable to the directors
(including the compensation provided for in the agreement with Mr. Anselmo
detailed above) aggregates to $4,100,000 plus the amount of annual bonuses and
other benefits that they would have received in the eighteen months following
termination.

|ITEM 11. SECURITY OWNERSHIP OF CERTAIN
      BENEFICIAL OWNERS AND MANAGEMENT AND RELATED STOCKHOLDER
      MATTERS.
|--------------------------------------------------------------------------------------------------------------------

The following table sets forth certain information concerning
the Companys common shares owned beneficially as of February 15, 2008 by: (i)
each person (including any group) known by the Company to own beneficially
more than five percent (5%) of any class of the Companys voting securities,
(ii) each director of the Company, (iii) each executive officer of the Company,
and (iv) all directors and executive officers of the Company as a group. As of
February 15, 2008 no person is known to us to beneficially own more than 5% of
our outstanding common shares. Unless otherwise indicated, the shareholders
listed possess sole voting and investment power with respect to the shares
listed.

65

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Title of Class
    Name and Address
      of Beneficial Owner
    Number of Common
      Shares
    Percentage of Common
      Shares(1)Common Shares
    Garry L. Anselmo, Director,
      President, Chief Executive Officer and Chief Financial Officer
    40,550,007(2)
    4.5%Common Shares
    James F. Dixon, Director
    8,814,484(3)
    1.0%Common Shares
    Stuart McCulloch, Director
    7,058,400(4)
    0.8%Common Shares
    John R. Mackay, Secretary
    5,100,000(5)
    0.6%Common Shares
    All Directors and Executive
      Officers as a Group (4 persons)
    61,522,891(6)
    6.9%


|(1) | Under Rule 13d-3, a beneficial owner of a security includes
        any person who, directly or indirectly, through any contract, arrangement,
        understanding, relationship, or otherwise has or shares: (i) voting power,
        which includes the power to vote, or to direct the voting of shares; and
        (ii) investment power, which includes the power to dispose or direct the
        disposition of shares. Certain shares may be deemed to be beneficially
        owned by more than one person (if, for example, persons share the power
        to vote or the power to dispose of the shares). In addition, shares are
        deemed to be beneficially owned by a person if the person has the right
        to acquire the shares (for example, upon exercise of an option) within
        60 days of the date as of which the information is provided. In computing
        the percentage ownership of any person, the amount of shares outstanding
        is deemed to include the amount of shares beneficially owned by such person
        (and only such person) by reason of these acquisition rights. As a result,
        the percentage of outstanding shares of any person as shown in this table
        does not necessarily reflect the persons actual ownership or voting
        power with respect to the number of shares of common stock actually outstanding
        on February 15, 2007. As of February 15, 2007, there were 904,231,969
        common shares of the Company issued and outstanding.
|--- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              
|(2) | Consists of 4,050,000 shares held by Garry L. Anselmo,
        7 shares owned by Tri-Con Mining Ltd, and 36,500,000 shares that can be
        acquired by Mr. Anselmo upon exercise of options to purchase shares held
        by Mr. Anselmo within 60 days of the date hereof.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            
|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              
|(3) | Consists of 214,484 shares held directly and indirectly
        by James F. Dixon and 8,600,000 shares that can be acquired by Mr. Dixon
        upon exercise of options to purchase shares held by Mr. Dixon within 60
        days of the date hereof.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    
|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              
|(4) | Consists of 158,400 shares held by Stuart McCulloch
        and 6,900,000 shares that can be acquired by Mr. McCulloch upon exercise
        of options to purchase shares held by Mr. McCulloch within 60 days of
        the date hereof.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  
|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              
|(5) | Consists of 100,000 shares held by Mr. Mackay and 5,000,000 shares that
      can be acquired by Mr. Mackay upon exercise of options to purchase shares
      held by Mr. Mackay within 60 days of the date hereof.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          
|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              
|(6) | Consists of 4,522,891 shares held by our directors and
        executive officers and 57,000,000 shares that can be acquired by our directors
        and executive officers upon exercise of options to purchase shares held
        by our directors and executive officers within 60 days of the date hereof.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             

Changes in Control

We are not aware of any arrangement that may result in a change
in control.

Securities Authorized For Issuance Under Equity Compensation
  Plans

66

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Set forth in the table below is information regarding
outstanding equity awards made through equity compensation plans as of the end
of the most recently completed fiscal year.

|Plan
      Category                                              | Number of securities to be
      issued upon exercise of outstanding
      options, warrants, and rights | Weighted average exercise
      price of outstanding options,
      warrants, and rights | Number of securities
      available for future plan issuance
|---------------------------------------------------------------- | -------------------------------------------------------------------------------------------------------- | ---------------------------------------------------------------------------------------- | -------------------------------------------------------------
|Equity compensation
      plans approved by security holders     | N/A                                                                                                      | N/A                                                                                      | N/A                                                          
|Equity compensation plans not
      approved by security holders |                                                                                                          |                                                                                          |                                                              
|2007 Stock Option
      Plan                                     | 25,000,000                                                                                               | $0.07                                                                                    | 3,500,000                                                    
|2006-II Stock Option Plan                                        | 27,300,000                                                                                               | $0.07                                                                                    | 700,000                                                      
|2006 Stock Option
      Plan                                     | 31,100,000                                                                                               | $0.05                                                                                    | 5,900,000                                                    

On January 11, 2007, our Board of Directors adopted the 2007
Stock Option Plan (the "2007 Plan"). The 2007 Plan authorizes the issuance of
options to purchase our common stock to directors, officers, employees, and
eligible consultants. We reserved 25,000,000 shares of our Common Stock for
awards to be made under the 2007 Plan. On February 20, 2007, we filed a
registration statement on Form S-8 to register all 25,000,000 of such shares.
The 2007 Plan is to be administered by a committee of two or more members of the
Board of Directors. The 2007 Plan allows for the issuance of incentive stock
options (which can only be granted to employees) and non-qualified stock
options. The committee shall determine the type of option granted, the exercise
price, the option term (which may be no more than ten years), and terms and
conditions of exercisability.

On March 29, 2006, our Board of Directors adopted the 2006-II
  Stock Option Plan (the "2006-II Plan"). The 2006-II Plan authorizes the issuance
  of options to purchase our common stock to directors, officers, employees, and
  eligible consultants. We reserved 28,000,000 shares of our Common Stock for
  awards to be made under the 2006-II Plan. On March 31, 2006, we filed a registration
  statement on Form S-8 to register all 28,000,000 of such shares. The 2006-II
  Plan is to be administered by a committee of one or more members of the Board
  of Directors, and Mr. Garry L. Anselmo and Mr. James F. Dixon were named members
  of the committee charged with administering the 2006-II Plan. The 2006-II Plan
  allows for the issuance of incentive stock options (which can only be granted
  to employees) and non-qualified stock options. The committee shall determine
  the type of option granted, the exercise price, the option term (which may be
  no more than ten years), and terms and conditions of exercisability.

67

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On January 4, 2006, our Board of Directors adopted the 2006 Stock
  Option Plan (the "2006 Plan"). The 2006 Plan authorizes the issuance of options
  to purchase our common stock to directors, officers, employees, and eligible
  consultants. We reserved 37,000,000 shares of our Common Stock for awards to
  be made under the 2006 Plan. On April 11, 2006, we filed a registration statement
  on Form S-8 to register all 37,000,000 of such shares. The 2006 Plan is to be
  administered by a committee of two or more members of the Board of Directors.
  The 2006 Plan allows for the issuance of incentive stock options (which can
  only be granted to employees) and non-qualified stock options. The committee
  shall determine the type of option granted, the exercise price, the option term
  (which may be no more than ten years), and terms and conditions of exercisability.

ITEM 12. CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS, AND
DIRECTOR INDEPENDENCE.

Tri-Con Mining Group

We have had related party transactions with Tri-Con Mining
Ltd., Tri-Con Mining Inc., and Tri-Con Mining Alaska Inc. (collectively, the
"Tri-Con Mining Group"). Each of Tri-Con Mining Ltd., Tri-Con Mining Inc. and
Tri-Con Mining Alaska Inc. are owned and controlled by Mr. Garry Anselmo, our
chief executive officer, chief financial officer and, the chairman of our board
of directors. We are party to three separate contracts dated January 1, 1997
with the Tri-Con Mining Group, one with each of Tri-Con Mining Ltd., Tri-Con
Mining Inc. and Tri-Con Mining Alaska Inc.

The Tri-Con Mining Group are operations, exploration and
development contractors, and have been employed by us under contract since 1972
to carry out all of our fieldwork and to provide administrative and management
services. Under the current contract dated January 1, 1997, work is charged at
cost plus 25% for property acquisition, exploration and development and cost
plus 15% for mining operations and reclamation. Cost includes out of pocket or
actual cost plus 15% charge for office overhead including stand by and
contingencies. Capital purchases are exempt from any support charges. Services
of the directors of the Tri-Con Mining Group are charged at a rate of $75 CDN
per hour. Services of the directors of the Tri-Con Mining Group who are also our
directors, namely Mr. Anselmo, are not charged. In addition, each agreement
requires us to pay a base fee of $10,000 CDN (equal to approximately $10,000 US)
per month to each of Tri-Con Mining Ltd., Tri-Con Mining Inc. and Tri-Con Mining
Alaska Inc. However, the Tri-Con Mining Group has waived payment of the base fee
under two of the agreements and is only paid $10,000 CDN (equal to approximately
$10,000 US) per month in total.

We are in arrears in the amount of $1,214,717 to the Tri-Con
Group as of November 30, 2007 in connection with exploration activities on the
Nolan Gold Project during fiscal 2007. At November 30, 2006, we were in arrears
$359,834 to the Tri-Con Mining Group for exploration, development and
administration services. For the years 2005, 2006 and 2007 the Tri-Con Mining
Groups services focused mainly on test mining activities on the Nolan property,
the low-rank coal-water fuel program as well as corporate planning, exploration,
engineering, and, and administration services at both our field and corporate
offices.

The aggregate amounts paid to the Tri-Con Mining Group in each
of the late two fiscal years, by category, including amounts relating to the
Grant Mine Project and Nolan properties, for disbursements and for services
rendered by the Tri-Con Mining Group personnel working on the Company's
projects, and include interest charged on outstanding balances at the Tri-Con
Mining Group's borrowing costs, are shown below:

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|                                                   |   | 2007      |  |   | 2006      | 
|-------------------------------------------------- | - | --------- |  | - | --------- | 
|                                                   |   |           |  |   |           | 
|Exploration, development and field services        | $ | 5,522,795 |  | $ | 3,687,946 | 
|Office, Administrative and Management services     |   | 1,355,619 |  |   | 1,093,858 | 
|Research                                           |   | 34,313    |  |   | 129,698   | 
|                                                   |   |           |  |   |           | 
|                                                   | $ | 6,912,727 |  | $ | 4,911,502 | 
|                                                   |   |           |  |   |           | 
|Amount of total charges in excess of
      Tri-Con |   |           |  |   |           | 
|costs incurred                                     | $ | 1,234,430 |  | $ | 760,324   | 
|                                                   |   |           |  |   |           | 
|Excess amount charged as a percentage of actual    |   |           |  |   |           | 
|costs incurred                                     |   | 21.93%    |  |   | 18.32%    | 

Stock Option Grants

We granted options to purchase an aggregate of 2,700,000 common
shares to the following individuals on January 11, 2007 as follows. All options
are fully vested and are exercisable at a price of $0.07 per share for a six
year term from the date of grant:

Name
    OptionsJohn McKay, Secretary
    700,000Warrack Willson, Vice-President of Silverado Green Fuel
      Inc.
    2,000,000


Director Independence

As our common stock is currently traded on the OTC Bulletin
Board, we are not subject to the rules of any national securities exchange which
require that a majority of a listed company's directors and specified committees
of the board of directors meet independence standards prescribed by such rules.
For the purpose of preparing the disclosures in this Report on Form 10-KSB
regarding director independence, we have used the definition of independent
director set forth in the Marketplace Rules of The Nasdaq Stock Market, which
defines an independent director generally as a person other than an executive
officer or employee of the company or any other individual having a relationship
which, in the opinion of the company's board of directors, would interfere with
the exercise of independent judgment in carrying out the responsibilities of a
director. Consistent with these standards, we believe that James Dixon and
Stuart McCulloch are independent directors.

ITEM 13. 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)

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|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    | Change of Control
        Agreement between the Company and James Dixon dated May, 1995 (6)                                                                                                 
|10.6    | Amendment to Change of Control
        Agreement between the Company and Garry L. Anselmo (6)                                                                                               
|10.7    | Operating Agreement
        between the Company and Tri-Con Mining Ltd. Dated January 1, 1997 (5)                                                                                           
|10.8    | Operating Agreement between the
        Company and Tri-Con Mining Inc. dated January 1, 1997 (6)                                                                                           
|10.9    | Operating Agreement
        between the Company and Tri-Con Mining Alaska Inc. dated January 1, 1997
        (6)                                                                            
|10.10   | Contract between the Company
        and Dr. Warrack Willson dated March 19, 2001 (6)                                                                                                       
|10.11   | Equipment Lease
        Agreement between the Company and Airport Equipment Rentals Inc. dated
        October 11, 2002 (6)                                                                 
|10.12   | Form of Warrant Exercise Agreement
        between the Company and certain of the selling security holders (8)                                                                              
|10.13   | Form of Delay
        Agreement between the Company and certain of the Selling Shareholders
        (8)                                                                                     
|10.14   | 2006 Stock Option Plan (10)                                                                                                                                                                 
|10.15   | 2006-II Stock
        Option Plan (11)                                                                                                                                                      
|10.16   | 2007 Stock Option Plan (12)                                                                                                                                                                 
|10.17 * | Shared
        Well Agreement between the Company and Sukakpak, Inc., dated May 17, 2007                                                                                                    
|14.1    | Code of Ethics (9)                                                                                                                                                                          
|31.1 *  | Certification
        of Chief Executive Officer pursuant to Section 302 of the Sarbanes- Oxley
        Act of 2002                                                                         
|31.2 *  | Certification
        of Chief Financial Officer pursuant to Section 302 of the Sarbanes- Oxley
        Act of 2002                                                                         
|32.1 *  | Certification
        of Chief 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 Chief 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 year ended November 30, 1995.              
|(5) | Filed as an exhibit to the Companys Annual Report on
      Form 10-K for the year ended November 30, 1996.              
|(6) | Filed as an exhibit to the Companys Annual Report on
      Form 10-KSB for the year ended November 30, 2002             

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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.
|*    | Filed herewith.                                                                                          

ITEM 14. PRINCIPAL ACCOUNTANT FEES AND SERVICES

The following table sets forth information regarding the amount
billed to us by our independent auditor, Berkovits & Company, LLP for each
of our last two fiscal years:

|                    |   | Fiscal years ended | 
|------------------- | - | ------------------ | 
|                    |   | November 30        | 
|                    |   | 2007               | 
|Audit Fees:         | $ | 62,419             | 
|Audit Related Fees: | $ | 46,262             | 
|Tax Fees:           |   | NIL                | 
|All Other Fees:     |   | NIL                | 
|Total:              | $ | 108,681            | 

Audit Fees

Audit Fees are the aggregate fees billed by our independent
auditor for the audit of our consolidated annual financial statements, reviews
of interim financial statements and attestation services that are provided in
connection with statutory and regulatory filings or engagements.

Audit-Related Fees

Audit-Related Fees are fees charged by our independent auditor
for assurance and related services that are reasonably related to the
performance of the audit or review of our financial statements and are not
reported under "Audit Fees." This category comprises fees billed for independent
accountant review of our interim financial statements and management discussion
and analysis, as well as advisory services associated with our financial
reporting.

Policy on Pre-Approval by Audit Committee of Services Performed
  by Independent Auditors

Our Audit Committee pre-approves all audit services to be
provided to us by our independent auditors. Our Audit Committees policy
regarding the pre-approval of non-audit services to be provided to us by our
independent auditors is that all such services shall be pre-approved by the
Audit Committee. Non-audit services that are prohibited to be provided by our
independent auditors may not be pre-approved. In addition, prior to the granting
of any pre-approval, our Audit Committee must be satisfied that the performance
of the services in question will not compromise the independence of the
independent auditors.

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SIGNATURES

In accordance with Section 13 or 15(d) of the Exchange Act, the
  Registrant caused this report to be signed on its behalf by the undersigned,
  thereunto duly authorized.

|                        | Silverado Gold Mines Ltd.                    
|----------------------- | ---------------------------------------------
|                        |                                              
|                        |                                              
|                        |                                              
|Date: February 28, 2008 | By: /s/ Garry L. Anselmo                     
|                        | Garry L. Anselmo,                            
|                        | President, Chief Executive Officer (Principal
|                        | Executive Officer), and Chief Financial      
|                        | Officer (Principal Accounting Officer)       

In accordance with the Exchange Act, this report has been signed
  below by the following persons on behalf of the Registrant and in the capacities
  and on the dates indicated.

Date: February 28, 2008
      By: /s/Garry L. AnselmoGarry L. Anselmo,President, Chief Executive Officer (PrincipalExecutive Officer), and Chief FinancialOfficer (Principal Accounting Officer)Date: February 28, 2008
      By: /s/James F. DixonJames F. Dixon,DirectorDate: February 28, 2008
      By: /s/Stuart McCullochStuart McCulloch,Director


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