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UNITED STATESSECURITIES AND EXCHANGE COMMISSIONWashington, D.C. 20549

FORM 10-K

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

For the fiscal year ended: November 30, 2009

OR

[   ] TRANSITION REPORT PURSUANT TO 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.(Exact Name of Registrant as Specified 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)                          

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

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

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

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

Indicate by check mark if the registrant is a well-known
seasoned issuer, as defined in Rule 405 of the Securities Act.
  [   ] Yes      [X] No

Indicate by check mark if the registrant is not required to file
reports pursuant to Section 13 or Section 15(d) of the Act.
  [   ] Yes      [X] No

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

Indicate by check mark whether the registrant has submitted
electronically and posted on its corporate Web site, if any, every
Interactive Data File required to be submitted and posted pursuant to Rule
405 of Regulation S-T (§232.405 of this chapter) during the preceding 12
months (or for such shorter period that the registrant was required to submit
and post such files).
  [X] Yes      [   ] No

Indicate by check mark if disclosure of delinquent filers
pursuant to Item 405 of Regulation S-K (§229.405 of this chapter) is not
contained herein, and will not 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-K or any amendment to this Form 10-K.
[   ]

Indicate by check mark whether the registrant is a large
accelerated filer, an accelerated filer, a non-accelerated filer, or a smaller

reporting company. See the definitions of large accelerated filer,
accelerated filer and smaller reporting company in Rule 12b-2 of the
Exchange Act.

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

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

State 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 last sold, or the average bid and asked price of
such common equity, as of the last business day of the registrants most
recently completed second fiscal quarter: $16,269,827 as of May 31, 2009.

APPLICABLE ONLY TO ISSUERS INVOLVED IN BANKRUPTCY PROCEEDINGS DURING THE PRECEDING FIVE YEARS:

Indicate by check mark whether the registrant has filed all
documents and reports required to be filed by Section 12, 13 or 15(d) of the
Securities Exchange Act of 1934 subsequent to the distribution of securities
under a plan confirmed by a court. [   ] Yes      [  
  ] No

(APPLICABLE ONLY TO CORPORATE REGISTRANTS)

Indicate the number of shares outstanding of each of the
registrants classes of common stock, as of the latest practicable date:
1,661,369,045 common shares, no par value, outstanding as of March 10, 2010.

DOCUMENTS INCORPORATED BY REFERENCE

List hereunder the following documents if incorporated by
reference and the Part of the Form 10-K (e.g., Part I, Part II, etc.) intowhich the document is incorporated: (1) Any annual report to security
holders; (2) Any proxy or information statement; and (3) Any prospectus
filed pursuant to Rule 424(b) or (c) under the Securities Act of 1933.

None.

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PART 1

ITEM 1. BUSINESS.

FORWARD-LOOKING STATEMENTS

The information in this Annual Report on Form 10-K contains
forward-looking statements within the meaning of applicable securities laws
relating to Silverado Gold Mines Ltd. (Silverado, the Company, we, our,
or us). These forward-looking statements represent our current expectations or
beliefs including, but not limited to, statements concerning our operations,
performance, and financial condition. 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, variability of quarterly results, our
ability to continue growth, 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. Statements in this annual report regarding planned
mineral exploration and drilling activities and any other statements about
Silverados future expectations, beliefs, goals, plans or prospects constitute
forward-looking statements. Actual events or results may differ materially. In
evaluating these statements, you should consider various factors, including the
risk factors outlined in Item 1A below, and, from time to time, in other reports
we file with the SEC. These factors or uncertainties materialize or should the
underlying assumptions prove incorrect, actual results could differ materially
from those indicated in the forward-looking statements. Given these
uncertainties, readers are cautioned not to place undue reliance on any
forward-looking statements.

Any forward-looking statement speaks only as of the date on
which such statement is made, and we disclaim any obligation to publicly update
these statements to reflect events or circumstances after the date on which such
statement is made, or disclose any difference between its actual results and
those reflected in these statements. New factors emerge from time to time and it
is not possible for us to predict all of such factors, nor can we assess the
impact of each such factor may cause actual results to differ materially from
those contained in any forward-looking statements.

CAUTIONARY NOTE TO U.S. INVESTORS CONCERNING ESTIMATES OF
RESERVES AND RESOURCES

The mineral estimates in this Annual Report on Form 10-K have
been prepared in accordance with Canadian National Instrument 43-101  Standards
of Disclosure for Mineral Projects (NI 43-101). The terms mineral
reserve, proven mineral reserve, probable mineral reserve, measured
resources, indicated resources and inferred resourcesare Canadian
mining terms as defined in accordance with NI 43-101. 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.

INTRODUCTION

Silverado 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s cash inflow has been generated mainly from private
financings, gold sale proceeds earned during the exploration stage, debentures
and loans. The Companys continuing operations are dependent upon private
financings to operate our business.

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

CORPORATE ORGANIZATION

Silverado Gold Mines Ltd. is a corporation organized under the
laws of British Columbia, Canada. The Company was originally incorporated 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, and the chairman of our board of
directors.

MINERAL EXPLORATION BUSINESS

We are a mineral exploration company with interests in
properties located throughout the state of Alaska. The majority of such
properties are in the early stages of exploration, and there is no assurance
that a commercially viable mineral deposit exists on such properties. Effective
January 1, 2009, based on completion of a preliminary feasibility study, our
Nolan Gold and Antimony Lode Project has disclosed an economically viable
mineral reserve. Additional resource estimates were calculated for the Nolan
Gold and Antimony Project effective January 7, 2010. Refer to Item 2 section 6
for the Nolan Gold and Antimony Project Mineral Reserves and Resource Estimates.
Certain definitions of geological and technical terms used in this Annual Report
on Form 10-K are provided in the Glossary of Terms under Item 2. Readers and
investors are cautioned that many of these terms, such as inferred resource
and indicated resource are terms used and accepted by the Canadian Institute
of Mining (CIM), and although these terms are recognized and required by the
Canadian Securities regulations, they are not recognized by the United States
Securities and Exchange Commission.

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

| | 1. | Nolan Gold Project;        
| | -- | ---------------------------
| | 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.       Description of
Operations at the Nolan Gold Project

1.1      Nolan Gold Project Background

The Nolan Gold Project consists of both placer-style and
lode-style deposit types for 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 Nolan Lode Gold and Antimony Project consist of exploration work designed to
locate bedrock structures or formations of bedrock which host gold and antimony
mineralization. These 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, and each gold nugget
or grain of gold in a placer deposit was originally part of a bedrock formation
or structure with lode gold mineralization. Because a placer deposit originates
from a lode source, the search for the Nolan lode source involves unraveling the
sequences of events that caused a placer deposit to form, as well as applying
various geological, geochemical and geophysical exploratory investigations.

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The Nolan Gold Project consists of numerous mineral prospects
that are in the early stages of exploration, as well as mineral prospects in the
advanced stages of exploration. During the years previous to 2007, the Company
focused only minimal exploration effort on finding a lode source for gold and
focused mostly on the exploration and development of placer gold. During
2007-2009, the Company focused its efforts on the lode potential of the Nolan
Creek property, herein referred to as the Nolan Lode Gold and Antimony Project.
The project is in the advanced stages of exploration and is potentially moving
toward the development stage. During September of 2008, the Company commissioned
an independent mining consultant to perform a preliminary feasibility study of
the Workmans Bench lode gold and antimony deposit. The results were released to
the public on January 5, 2009. The same independent consultant did another
resource calculation for the 2009 drill program at Nolan Creek. These new
resource calculations were disclosed to the public on January 7, 2010.

The previous (prior to 2008) bulk sampling projects of placer
gold from the gravel benches along the left limit of Nolan Creek had indicated
that there was an association between some of the placer gold recovered and an
antimony sulfide mineral called stibnite which commonly coated the coarser and
angular gold nuggets. Stibnite is a sulfide mineral, and is a common pathfinder
mineral for gold exploration and consists of the elements antimony and
sulfur.

1.2Nolan
  Gold Projects Exploration Approach and Focus

2007

The new exploration approach began in 2007 and involved not
only looking for the lode source of the gold, but also giving economic
consideration to the element antimony in addition to the gold, for exploration
and development. In 2007, the Company began a new systematic and more scientific
approach that combined soil and rock (surface) geochemical data and geophysical
data (airborne and ground) with subsurface drill core geochemical and geological
data. The data was compiled into a Geographical Information System (GIS)
database. All GIS surface data acquired in the field was located with a Global
Positioning System (GPS).

In 2007, the Company began focusing on the lode source of the
gold and antimony in the areas referred to as Pringle Bench and Workmans Bench.
These two target areas are underlain by a quartz-gold-antimony veined zone that
is part of a sheared and faulted structural zone referred to by the Company as
the Solomon Shear Zone. The Company excavated eight trenches totaling 440 lineal
feet of bedrock in the Pringle and Workmans Benches and collected continuous
chip samples from the bedrock that included the gold and antimony veins. The
Company will continue to use the excavation of trenches to assist in
exploration, especially to aid in defining drill targets, taking advantage of
the historic roads and trails that allow transport of heavy equipment for
exploration purposes.

In 2007, the Company acquired a tracked and mobile diamond core
drill for exploration. The diamond core drill, and the 2 inch diameter (NQ)
core, allow the geologist to make determination of the true width of mineralized
veins and the relationship of the vein to other primary geologic structures. The
diamond drill core allows for more accurate analysis of grade and interpretation
of style of mineralization and timing of mineralization relative to other
structures in the rock.

During 2007, the new soil and rock geochemical data and
geophysical data further delineated the northeast trending structural zone,
referred to by the Company as the Solomon Shear Zone, which is associated with
gold and antimony mineralization. The new approach in 2007 involved the first
phase of drilling, using the newly acquired diamond core. A total of 18 holes
were drilled across the Solomon Shear Zone. The diamond core drilling data
supported the geochemical and geophysical data. The drilling was focused on the
Workmans and Pringle Benches located on the south and north sides of Smith
Creek respectively

During 2007, the Companys exploration efforts in the Fortress
area delineated gold and arsenic soil anomalies which coincide with east-west
VLF-EM ground geophysical anomalies interpreted by the Company as possibly new
mineralized structural trends. The Fortress area has never been drilled and is
still in the earliest stages of exploration.

Exploration efforts in 2007 did not result in finding a
commercially viable mineral deposit.

2008

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During the winter of 2008, the Company excavated 570 feet of
exploration tunnels into the bedrock below Workmans Bench. During the summer of
2008, the Company began the second phase of diamond core drilling, focusing on
the Workmans Bench area, and did not drill north of Smith Creek. The Company
continued with the ground (non airborne) very low frequency electromagnetic
(VLF-EM) geophysical grid in the Fortress area located on the north end of the
property.

The drilling under Workmans Bench delineated 1,300 feet of
gold and antimony mineralization in near vertical structures or veins that
extend down dip two hundred feet and remain open at depth. The steeply dipping
(near vertical) veins are much more favorable for mining and engineering
purposes than lower angled subsurface structures. The 1,300 ft long and 80 to
100 ft wide zone of quartz-antimony-gold veins extends from Smith Creek
southwest across Workmans Bench and is interpreted by the Company to have been
offset by a left-lateral fault at its southern extent. The interpretation of the
left-lateral fault is based off of both geophysical data, and drill data, and it
has possibly displaced the quartz-antimony-gold veined zone. The 1,300 ft long
veined zone, located south of Smith Creek, under Workmans Bench, requires 600
ft of infill drilling to confirm whether the zone connects with the veined zone
underlying the Pringle Bench, which was drilled in 2007. The Company attempted
to infill drill the area in the fall of 2008, but freezing temperatures halted
that effort.

The 2007 and 2008 drill results in the Workmans Bench area
were not sufficient to define a probable reserve, but the drill results combined
with the preliminary feasibility study was sufficient enough to define a
probable reserve. Reserves and resources are listed in Item 2, below.

2009

During 2009 the exploration approach and focus was on advancing
to the potential development stage which involved collecting baseline
environmental data and performing characterization studies for permitting
obligations such as the acid rock drainage study which is still ongoing. In
addition, the Company performed critical upgrades to the Nolan Creek Camp
facility in preparation for a crew of mining personnel to assist with the
proposed bulk sampling program. Due to insufficient investment capital, the
permitted 1,000 cubic yard underground bulk sample of antimony-gold ore was not
initiated. Instead, planned 2010 HQ drilling will provide large enough care to
conduct relevant metallurgical studies on different areas of the ore body.

During the summer of 2009 the Company drilled 20 diamond core
drill holes totaling 4,992 feet under Workmans and Pringle Benches. The drill
program was focused on increasing the size of the A Zone beyond the 2008
resource and reserve blocks. The drill results at both Workmans and Pringle
Benches were not spatially located for a reserve status but they were sufficient
for an inferred resource. Refer to Item 2 below for the resource and reserve
estimates.

Another goal of the summer drill program was to connect the
resource blocks of the Workmans and Pringle Bench Prospects. Drilling in the
Smith Creek lowlands encountered problems that will require a larger drill in
order to extract core samples and to have a contiguous resource block that
connects Pringle Bench to Workmans. However, drilling along the south end of
Pringle Bench in 2009 combined with soil and geophysical anomalies has confirmed
that the Main Zone of gold and antimony mineralization encountered in Workmans
and Pringle Bench are part of the same northeast trending zone.

In addition, our operations involve honoring our obligations to
return the land to its natural state when possible. During 2007, we removed
scrap materials and sealed the Swede Channel and Marys East sub surface placer
exploration portals as part of our reclamation obligations with the Bureau of
Land Management. During 2008, we reclaimed 27.5 acres of disturbed land as part
of our continued reclamation obligations with the Bureau of Land Management. We
will continue to work on our reclamation obligations with the Bureau of Land
Management. During 2009 the Company took advantage of the historic trails and
used the Company-owned tracked diamond core drill rig to move about without
disturbing the landscape. More detailed description of our Nolan Gold Project
operations is discussed in the following sections:

1.3       Nolan Gold Bulk
Sampling Projects

1.3.1    2007 Placer Gold Bulk Sampling
Projects

2007 Swede Channel and Marys East Bulk Sampling
Projects

The Swede Channel and Marys East placer deposits represent the
last bulk placer sampling projects that the Company has undertaken, and are
disclosed herein as part of the background of the Companys operations.

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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.

Swede Channel and Marys East 2007 Work

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 2,811.74 troy ounces of nugget gold recovered in 2007 totals 3,726.80 troy
ounces. Also, the fine concentrates yielded 65.10 troy ounces of silver or 2.15%
silver which was included in gold inventory.

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.

1.3.2    2008 Nolan Lode Gold and Antimony
Bulk Sampling Project

During 2008, the Company did not explore for placer gold
resources. Exploration focused on the lode potential of the Main Zone of
gold-antimony veining at Workmans Bench which required drill intercepts to be
spaced close enough to define the various zones, especially the A Zone Vein
fault. The A Zone was to be the sample target for a future 1,000 cubic yard
bulk sample. The extraction of a bulk sample or samples of gold-bearing
semi-massive to massive stibnite (antimony mineral) is necessary for mineral
processing and metallurgical.

On November 16, 2007, Silverado began the excavation of the
Workmans Bench Portal and continued excavating 570 feet of underground workings
into the bedrock below Workmans Bench. The tunnels were finished in early
February of 2008. The tunnels are interconnected and serve a multitude of
purposes. The first purpose was for determining the overall width of the veined
gold and antimony mineralized zone and establishing the strike and dip of the
individual quartz-gold-antimony veins. The second purpose was for the collection
of insitu bedrock channel samples for geochemical assays, and the third was for
the collection of significantly larger (bulk) samples of the main gold and
antimony vein referred to by the Company as the Zone A vein, that typically
consists of massive stibnite and gold, for more accurate geochemical assays as
well as for preliminary milling and processing studies of the gold and
antimony.

The final purpose of the tunnels is for access and egress for
future bulk sampling at depth. Depending on funding, the Company plans to
collect either a 1,000 cubic yard or 2,000 cubic yard bulk sample of the main
gold and antimony vein referred to by the Company as the A Zone Vein. Other
potential targets for future exploration and development include the West Zone,
B Zone and C Zone that parallel the main A Zone Vein.

Bulk Sample of the A Zone Vein

Prior to 2008, the Company had not completed mineral processing
or tests for mineral processing of lode mineralization in the Nolan Creek
area.

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Thomas K. Bundtzen (the QP), an independent and AIPG
Certified Professional Geologist, served as an independent third-party qualified
person to the Company for the purpose of certifying and collecting data for the
Nolan Gold Project. In April 2008, the QP collected a 414 lb bulk sample of
semi-massive stibnite, vein quartz, and wall rock gangue from the defined
mineralized A Zone in the Workmans Bench underground workings. The purpose
was to determine the mineralogical nature of the antimony mineralization and the
source of significant gold values within the A Zone.

The 414 lb bulk sample was sent to Hazen Research Labs Inc. in
Golden, Colorado, USA in order to discover the most optimal grind for potential
marketing of a stibnite product, and to identify the mineralogical nature of the
gold and antimony values. Hazen Research Labs Inc. produced two reports in
September of 2008. Results of the first report involve flotation and gravity
separation of the gold, stibnite and other sulfides and gangue minerals. The
results of the second report involve mineralogical examination. Details of the
two Hazen Research Lab reports are discussed under Item 2, below.

Silverado has recently acquired a permit from the Bureau of
Land Management (BLM) to collect and process a maximum 1,000 cu yd of material
from the Workmans Bench Lode for metallurgical testing. The bulk sample will be
collected to determine grinding, flotation, and other processing and
mineralogical characteristics of stibnite.

The QP released a detailed technical report on July 29, 2008
referred to as NI 43-101 which disclosed both placer and lode resource estimates
for the Nolan Creek properties. Discussion and results of the bulk sample
collected by the QP are detailed in the technical report. The July 29, 2008
report was based on information available to the QP as of July 2, 2008, and the
resource estimates in the report were superseded by the QPs November 17, 2008
revised estimates which indicated a resource of 17,000 oz of gold which has been
reclassified as a reserve of 17,000 oz of gold following the release of the
preliminary feasibility study, effective January 1, 2009. The more recent
reserve estimates are discussed in Item 2. The most recent reserve estimates are
more complete and accurate since they include data from the completion of the
2008 drill program that ended in late September of 2008. The most recent report,
effective January 1, 2009 includes a feasibility study by the QP as well as
additional drilling data and analysis of core samples. Readers and investors are
cautioned that the 43-101 technical report in which the reserve estimates are
based upon contains language and terms that may not be recognized by the US
Securities and Exchange Commission.

1.3.3    2009 Nolan Lode Gold and Antimony Bulk
Sampling Project

During 2009 the Company was unable to acquire the investment
capital to initiate the underground 1,000 cubic yard bulk sample of
gold-antimony ore from the reserve block that underlies Workmans Bench. The
Company honored permit obligations and also collected additional geotechnical
and geological data which will assist in the success of the underground bulk
sample. The underground tunnels and portal were inspected and appeared to be in
structurally sound condition. The summer and fall drilling program added
geologic and geotechnical data that will assist the bulk sampling program (See
Item 2  Description of Property, below).

1.4        Nolan Placer
Gold Project Exploration

1.4.1    2007 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 reverse circulation (RC) drill holes were
completed during that drilling program with a total drill footage of 6,005
feet.

The 2007 placer drilling program discovered an entirely new
zone of placer gold which has been named Jack London Bench. Jack London Bench is
located 200 feet north-east of and 50 feet above the Marys East Bench.

RC drilling is the principal exploration method used by
Silverado in the identification of placer gold deposits. All placer drilling in
2007 was performed by a contractor using 6 inch diameter drill rods. Placer
drill samples were collected in 5 foot intervals (industry standard).

1.4.2    2008 and 2009 Nolan Placer Gold Exploration

During 2008 and 2009, the Company did not do any field
exploration work such as reverse circulation (RC) drilling or any other active
exploration for placer gold. The Company focused on the Nolan Lode Gold and
Antimony Project.

7

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On July 29, 2008, the QP released the NI 43-101 Report
Estimation of Lode and Placer Mineral Resources, Nolan Creek, Wiseman B-1
Quadrangle, Koyukuk District, Northern Alaska, which describes lode and placer
mineralization in the Nolan Creek area, including the Workmans bench area. No
new information concerning sampling methods and approach for placer deposits has
been generated for Nolan Creek project since that release of information. The
results of Bundtzens resource estimates differ from the placer gold resource
estimates reported by Murtons 2007 NI 43-101 report for the Company. The
difference between the Murton resource estimates and the Bundtzen estimates was
due to Bundtzen having access to more data.

1.4.3    Nolan Placer Gold Exploration 2010
  Work Plan

Currently the Company is focusing on the Nolan Lode Gold and
Antimony Project with an emphasis on infill drilling for more accurate resource
estimates in the Workmans and Pringle Bench Areas.

However, due to the current gold prices, the Company may
explore for placer gold within benches farther upslope along the left limit of
Nolan Creek. More infill RC drilling is needed on Jack London Bench and other
benches on the left limit of Nolan Creek. Jack London Bench is upslope of the
former drift mined gold-rich channels that were sampled by Silverado in 2006 and
2007. All targets for exploration along the left limit of Nolan Creek are well
above the elevation of Nolan Creek. The Nolan Creek Deep Channel is a primary
consideration for exploration and development, but additional data is needed for
hydrologic studies.

Based on previous RC drill data, the Company believes the best
target for placer gold exploration and development is located in the Slisco
Bench which is part of our Hammond Property and is discussed below.

Budget projections for this project are detailed under the
section Projected Annual Budget for 2010

1.5       Nolan Lode Gold and
Antimony Project Exploration

1.5.1    2007 Nolan Lode Gold and Antimony
Project Exploration Work Summary

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.

A more detailed description of exploration work during 2007 is
as follows:

2007 Nolan Creek Area

In May, June, and July of 2007, 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. 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.

Along with the soil sampling campaign, Silverado conducted an
extensive VLF-EM ground geophysical survey (18.02 line miles) 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
identified structural trends in the Solomon Shear Zone that are overlain by
arsenic, antimony, and gold in soil anomalies.

In June, July, and August of 2007 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. Details of the 2007 exploration
program are as follows:

Pringle Bench

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. In
2007, the Company followed up on the results achieved on Pringle Bench 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. Continuous chip samples were collected over a defined length along
the trench walls and, therefore, are representative for a specific
trench interval. Continuous chip samples do contain sample material of
mineralized veins if those occur within the sample interval. Select samples were
collected from individual quartz and stibnite-quartz veins exposed in the
trenches and, therefore, their assays represent the individual veins
sampled.

8

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The following table presents significant 2007 trench assay
results for Pringle Bench:

|Trench
        G
|----------------
|Sample Number   
|07G11           
|07G17           
|07G18           
|07G19           

|Trench
        H
|----------------
|Sample Number   
|07H02           
|07H03           
|07H06           
|07H11           
|07H12           
|07H13           

|Trench
        I
|----------------
|Sample Number   
|07I11           
|07I12           
|07I13           
|07I14           
|07I15           
|07I19           
|07I20           
|07I23           
|07I24           
|07I28           
|07I29           
|07I32           
|07I33           
|07I39           
|07I45           
|07I46           
|07I58           
|07I59           
|07I65           
|07I66           
|07I72           
|07I73           
|07I75           
|07I76           
|07I78           

9

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|Trench
        K
|----------------
|Sample Number   
|07K05           
|07K06           

|Trench
        M
|----------------
|Sample Number   
|07M08           
|07M09           
|07M10           
|07M11           
|07M12           
|07M13           
|07M14           
|07M15           
|07M16           
|07M17           
|07M18           

It should be noted that Trench H revealed a 16.4 ft interval
(sample number 07H03) with an erratic gold grade. The Company instructed ALS
Chemex to re-assay the pulp of the specific sample which confirmed the previous
gold value. The Company also decided to re-sample Trench H. Re-sampling did not
reproduce the grades of the previous sampling campaign, but confirmed the
presence of gold and antimony mineralization. The stibnite-quartz veins in the
Nolan area are known to contain coarse gold which can result in a nugget
effect when assayed.

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 zones identified thus far. The core drilling
confirmed the presence of stibnite (antimony) and quartz veins at varying
depths.

2007 Workmans Bench

Workmans Bench is located near the confluence of Smith and
Nolan Creek.

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. A total
of 15 continuous chip samples were collected from Trench J.

The following table presents significant 2007 trench assay
results for Workmans Bench:

|Trench
        J (Workman's Bench)
|----------------------------------
|Sample Number                     
|0704WT                            
|0710WT                            
|0711WT                            
|0712WT                            
|0713WT                            
|0714WT                            
|0715WT                            

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.

10

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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. The majority of these veins were found to be
contained in an 80 foot wide zone.

On November 16, 2007, we began excavation of the portal that
would continue into the bedrock below Workmans Bench located on the south side
of Smith Creek near the confluence with Nolan Creek. The tunneling effort
continued into 2008 and resulted in 570 feet of underground workings consisting
of four interconnected tunnels referred to as Crosscut Tunnels A, B, C and D.

The QP collected a 414 lb bulk sample from mineralized zone A
for metallurgical test work from the underground workings in April 2008. 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.

2007 Fortress Area

The Fortress area is located two 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 encouraging results, the Company conducted a
VLF-EM ground geophysical survey (9.33 line miles) 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.
Interpretation of the VLF-EM survey data by the Company revealed two east-west
trending fault zones that are overlain by arsenic and gold in soil anomalies. A
combination of soil survey results, ground geophysical data, and surface geology
suggest to Silverado that formation of northwest-trending gold-bearing quartz
veins may be controlled by east-trending deformational zones.

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. Interpretation
of the VLF-EM survey data by the Company revealed two northeast trending
deformation zones of which the southern deformation zone is overlain by antimony
and arsenic in soil anomalies.

1.5.2    2008 Nolan Lode Gold and Antimony
Project Exploration Work Summary

During 2008, exploration for a lode gold and antimony deposit
on the Companys Nolan property focused again on the Nolan Creek area within the
Solomon Shear Zone and 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, especially the gravel bench deposits such as
Swede Channel, Marys East Bench, Marys Bench, Eureka Bench, and Workmans and
Pringle Bench. The Fortress area is a broad ridge located on the north end of
the property between the Hammond River drainage and the Nolan Creek drainage.
The Fortress area hosts gold-quartz-arsenopyrite veins which are associated with
east-west structures termed by the Company as the Fortress trend. The Fortress
veins may be the source for the gold in the Thompson Pup placer deposits. The
southern end of the Fortress area is cut by the Solomon Shear Zone and contains
gold and antimony mineralized quartz veins distinctly different from the
Fortress trend veins.

The 2008 lode exploration program consisted of a variety of
field exploration work. During early February 2008, 570 lineal ft of underground
tunnels, termed Tunnels A, B, C and D were completed in the bedrock below the
Workmans Bench, crosscutting the gold and antimony veins associated with the
Solomon Shear Zone. Channel samples of the bedrock were collected from the newly
excavated tunnels during the winter of 2008. During April of 2008, the QP
collected a 414 lb bulk sample of the gold and stibnite-rich main vein, referred
to by the Company as the Zone A vein. During the early summer of 2008,
additional ground geophysical very low frequency electromagnetic (VLF-EM)
surveys were conducted in the Fortress area. Approximately 79,000 ft (14.9
miles) of geophysical lines were surveyed in the former area. No soil samples
were collected on any of the Nolan Gold Properties. Fourteen rock samples were
collected throughout the Nolan Gold Project properties.

Additional diamond core drilling continued in the summer of
2008, but focused exclusively on the Solomon Shear Zone on the south side of
Smith Creek. Thirty four drill holes were drilled into the gold-bearing
antimony-quartz veined zone underlying Workmans Bench and the southwest
continuation of the zone. A total of 11,597 ft was drilled into the Solomon
Shear Zone. Freezing temperatures disallowed the continuation of drilling in
late September while the Company was trying to drill on the north side of Smith
Creek between the Pringle Bench and Workmans Bench areas.

In addition, in June of 2008, three vertical RC holes (water
test wells) were drilled a minimum of 300 ft each to test for the presence of
groundwater in the area around Workmans Bench. The well holes were drilled
outside the limits of the mineralized Solomon Shear Zone, yet were proximal to the zone. According to Swan Drilling
of Fairbanks Alaska, no groundwater water was encountered in any of the RC drill
holes. A total of 1,000 ft was drilled by Swan Drilling. The rock chips were
collected every five feet and visually inspected by geologists for possible
mineralization.

11

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A more detailed description of exploration work during 2008 is
as follows:

2008 Nolan Creek Area

2008 Workmans Bench

On November 16, 2007, we began the excavation of the Workmans
Bench Portal and continued excavating 570 feet of underground workings into the
bedrock below Workmans Bench. The tunnels were finished on February 2, 2008.
The tunnels are interconnected and serve a multitude of purposes. The first
purpose was for determining the overall width of the veined gold and antimony
mineralized zone and establishing the strike and dip of the individual
quartz-gold-antimony veins. The second purpose was for the collection of insitu
bedrock channel samples for geochemical assays, and the third purpose was for
the collection of significantly larger (bulk) samples of the main gold and
antimony vein referred to by the Company as the A Zone vein. The A zone vein
typically consists of massive stibnite and gold with variable quartz and
carbonate gangue minerals. The underground workings were mapped to determine the
true strike and dip of the veins as well as the true width of the veins and
mineralized zones. The QP collected a 414 lb bulk sample of the A Zone Vein
for more accurate geochemical assays as well as for preliminary milling and
processing studies of the gold and antimony. The 414 lb sample of mostly massive
stibnite with minor quartz and carbonate gangue was sent to Hazen Research Inc.
Lakewood, Colorado, for the metallurgical tests. The underground tunnels will
also be used for additional geotechnical studies and most importantly for access
and egress of future bulk sampling efforts at depth.

During February of 2008, the Company collected 92 channel
samples from the rock walls of the tunnels, and collected specific samples of
the larger quartz-stibnite-gold veins. The channel samples were five feet in
length. In addition, the QP collected 23 independent channel samples across 16
northeast striking steeply dipping quart-stibnite-gold veins, as well as 7 other
less mineralized structures.

The following table presents assay values of significant 2008
underground channel samples and specific semi-massive and massive stibnite vein
samples collected during February of 2008. The following table shows the
slightly variable gold content within the stibnite rich areas, even when sampled
from similar sites. The variable gold content in the massive stibnite, and
stibnite-rich zones, supports the Companys previous interpretation that there
is a gold nugget effect that makes the estimation of a lode gold to antimony
ratio difficult to ascertain and is part of the reason why the Company is
seeking a bulk sample on the scale of 1,000 to 2000 cubic yards or more. Also,
further metallurgical work and processing studies will be carried out on a wider
range of ore grade material. Refer to plan view map of the underground workings
for the sample locations.

|SampleNumber             | StibniteTargetVein Zone | SampleLocationNumberOr Tunnel | TrueWidthIn feet | Sb (%) | Au(oz/t) | Brief Description                                            
|------------------------ | ----------------------- | ----------------------------- | ---------------- | ------ | -------- | -------------------------------------------------------------
|203405 Bench Test Sample | West Zone             | Tunnel D                      | 1.5              | 41.20  | 0.110    | Semi-massive stibnite, quartz gangue                         
|203789                   | West
        Zone     | Tunnels A and D               | 1.5              | 22.48  | 0.556    | Wall
        rock of connecting drift                        
|203808                   | A Zone                  | Tunnel
        D              | 1.50             | 43.64  | 1.19     | Nearly
        massive stibnite with quartz                  
|WBUG3 S1                 | A
        Zone        | Site
        3B               | 0.42             | 52.10  | 0.676    | Massive Stibnite Vein in North Drift                         
|WBUG3 S2                 | A
        Zone        | Site
        3B               | 0.42             | 58.89  | 0.329    | Massive Stibnite Vein in North Drift                         
|WBUG3 S3                 | A
        Zone        | Site
        3A               | 0.42             | 60.90  | 0.031    | Massive Stibnite Vein in North Drift                         
|WBUG3 S4                 | A
        Zone        | Site
        3B               | 0.42             | 55.71  | 0.451    | Massive Stibnite Vein in North Drift                         
|WBUG3 S5                 | A
        Zone        | Site
        3B               | 0.42             | 11.10  | 0.444    | Semi-Massive Stibnite Vein in North Drift                    
|WBUG8- S2                | A
        Zone        | Site
        8                | 0.42             | 58.76  | 0.145    | Massive stibnite Vein in South Drift                         
|203802                   | A
        Zone        | Tunnel
        C              | 2.50             | 37.78  | 0.076    | Semi-Massive Stibnite Vein in South Drift                    
|203810                   | B
        Zone        | Tunnel
        C              | 0.5              | 41.0   | 0.696    | Nearly massive stibnite with quartz, south drift             
|203791                   | B Zone                | Tunnel A                      | 0.50             | 39.73  | 0.362    | Nearly massive stibnite with hanging wall north
        drift
|WBUG8 S1                 | A
        Zone        | Site
        8                | 0.42             | 57.52  | 0.359    | Massive stibnite Vein in South Drift                         
|WBUG5 S2                 | B
        Zone        | Site
        5                | 0.42             | 50.04  | 1.040    | Massive Stibnite Vein in North Drift                         

12

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A total of 34 diamond core drill holes were drilled into the
gold-bearing antimony-quartz veined Solomon Shear Zone in 2008, totaling 11,597
ft of core for the season, with a core recovery of over 95%. The second phase
drilling effort was focused exclusively on the portion of the Solomon Shear Zone
that extends 1300 ft southwest from Smith Creek across Workmans Bench. Details
of the results of the drilling program are discussed below.

During the 2008 drilling program, a total of 627 samples were
collected from the drill core. The total samples collected is significantly less
than the 1,195 core samples collected during the 2007 drill program even though
the drilling footage in 2007 totaled only 4,555 ft. The fewer samples collected
was based off of results of 2007 when the holes were sampled from top to bottom.
Drill results in both the Pringle and Workmans Benches in 2007 indicated that
the gold mineralization was associated with the sulfide-bearing (stibnite or
arsenopyrite) quartz veins. Thus, only individual quartz veins or zones of
closely spaced thin veins were sampled, and these samples are referred to as
specific samples. The adjoining wall rock of significant veined zones was also
sampled, and these are referred to as reference samples for continuity across
the zones.

Four discrete gold-bearing stibnite-quartz-carbonate veined
zones, were defined by the results of the two drilling programs, and these four
zones are also evident in the workmans Bench Underground exploration tunnels.
The four zones are depicted in the Fig below. Currently, the A Zone vein is
the largest in width and most well defined in our downhole projections and in
the exploration tunnels. The A zone vein was subject for the bulk sample
collected by the QP in April of 2008. Results of the bulk sample are listed in
Bundtzens 43-101 report. The resource estimates for the deposit exclude the C
Zone.

The map below is a plan-view of the 570 ft of underground
workings and depicts three of the four mineralized zones. The West zone which
typically skirts the west side of the A Zone is not outlined in the figure.

13

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Location of underground development and channel samples, Workmans Bench



14

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2007 and 2008 view ofWorkmansbenchmineralizedzones,showinglocationsofundergroundworkings,drill holecontrol,andinterpretedextensionsand overall widths of A, B, C and West Zones.



15

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1.5.3    2009 Nolan Lode Gold and Antimony
Project Exploration Work Summary

During 2009, exploration work involved drilling a total of 20
holes totaling 4,992 feet into the Solomon Shear Zone. The drill footage closely
follows the recommendations made in the 43-101 technical report released to the
public on January 5, 2009. Specific information for drill collars has been
previously released in Silverado news releases disclosed on August 26 and
September 22 of 2009.

The 2009 drill program was focused exclusively on the A Zone
mesothermal stibnite-quartz-gold vein-fault. During 2007 the drill core was
sampled for the entire length of the drill hole. In 2008, the Company sampled
all mineralized intervals encountered which also included the other zones
formerly referred to as the West, B and C Zones. During the 2009 summer drill
program core samples were collected to test the A Zone and adjacent wall rock
at Workmans Bench, whereas at Pringle Bench some of the other gold-antimony
zones were sampled in addition to the A Zone. The metal gold and metalloid
antimony are the primary ore minerals but additional analyses are also done to
test for the content of potential deleterious metals that could affect the value
of the antimony. According to specific samples of massive stibnite that were
collected at Workmans Bench, the deleterious metal content in the antimony ore
is well below the amount that could penalize the price of the ore. In 2009, the
drill core that was sampled averaged over 90% recovery and is consistent with
the recovery of core sampled in 2008. A total of only 73 core samples were
collected from the A Zone or adjacent wall rock and sent to the ALS Chemex
Labs. The methods for analysis as well as the quality control methods are all
consistent with the 2007 and 2008 drill programs and have been approved by the
Company QP.

In addition to the summer drill program, additional core and
surface rock samples were submitted for geochemical analysis during the fall
months. The additional samples were analyzed for determination of a potential
bulk minable resource which was indicated in core sample results from previous
2008 samples along the north end of the Workmans Bench drill grid as well as
the 2009 core samples collected from the southern end of the Pringle Bench drill
grid. The Company geologists and the Company QP interpreted the potential for a
bulk minable resource after noting low grade gold that was continuous across
widths of the shear zone that are wider yet lower in grade than the more well
defined mineralized vein faults. Additional samples consist of a total of 55
drill core samples that were collected from the three southern-most drill holes
along Pringle Bench as well as 15 surface channel bedrock samples to check for
both bulk minable potential as well as other potential mineralized structures
that are oblique to the main northeast-trending Solomon Shear Zone.

More assays and more drill holes will be needed before any
resource estimates can be made regarding the potential bulk minable resource.
Since down hole/subsurface data is not sufficient for a definite structural
geologic description, the area of potential bulk minable gold-antimony
mineralization has been referred to as a deformation zone. The deformation zone
consists of an abundance of smaller quartz-sulfide-gold veinlets and
quartz-stibnite-gold veinlets as well as fine-grained disseminated and deformed
sulfides that collectively have gold grades that average over 0.03 oz/t over
much broader areas than the more well defined and higher gold-antimony grades of
the vein-fault zones such as the A Zone. The bulk mineable potential was
disclosed in a Silverado news release on October 27, 2009. All news releases and
the data contained within are approved by the Silverado QP. Readers and
investors need to take caution that a potential resource is not an economically
viable resource and considerable more data is required before a resource
estimate can be made by the QP.

In addition to the core and surface rock samples, the Company
geologists continued their analysis of the abundance of geologic data for
planning and design of a potential mine and/or a potential pilot mill that would
be needed for processing of a large 1,000 cubic yard bulk sample. The
characterization studies needed for permitting obligations were conducted
throughout the fiscal year and are still ongoing.

2009 Workmans Bench

The drill holes in previous years along the Solomon Shear Zone
were drilled at an azimuth that was oriented southeast, but in 2009 the Company
needed to test the zone in an area vertically above the previous drill
campaigns. Due to the topography, the drill collars had to be placed on the
southeast side of the Shear Zone and the drill azimuths were orientated
northwest. A total of 9 holes totaling 2,663 feet were drilled. Eight of the
nine holes intercepted the main massive stibnite-gold-quartz vein-fault referred
to as the A Zone. The one hole that was not successful was the result of poor
drill recovery due to a fault zone that cut across the main Solomon Shear Zone.
The focus of the drill program in 2009 was to use the limited drill footage that
was budgeted to define the A Zone at the higher elevations. Also, due to the
precarious topography, the drill was not situated to test the other vein-fault
zones that parallel the A Zone.

The table on the following page lists some of the 2009 drill
intercepts of the A Zone. None of the drilled intercepts are within the
probable reserve block, and all of the drill holes are located vertically above
the probable reserve block. The formerly mentioned reserve block was determined
by the Company QP after completing a detailed feasibility study for the 43-101
report released on January 5, 2009. The 2009 drill intercepts of the A Zone
were not sufficiently spaced to be classified as a reserve, but they are consistent with an indicated resource according to the Company
QP. Refer to the resource estimate tables under Item 2 and the summary table on
the next page. Readers and investors should take caution when referring to the
resource estimates in Item 2. Please take note of the cautionary statements
listed with the resource estimates in Item 2.

16

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2009 Pringle Bench

Exploration work along Pringle Bench involved both diamond core
drilling and limited trench excavation and rock sampling. Eleven holes were
drilled totaling 2,329 feet. Ten of the eleven holes intercepted the A Zone.
Other gold-antimony vein zones were intercepted but the focus of the program was
to check the vertical extent and nature of the A Zone at depth. The one hole
that was not successful in hitting the A Zone was due to the abandonment of
the hole before the required depth.

The table on the following page lists the widths of the
intercepts and the gold and antimony content of the A Zone
quartz-gold-antimony vein fault. The new resource estimates based on the 2009
drill data can be found in Item 2 of this 10K. Please read the cautionary
statements about the resource estimates that are included.

The three southern-most holes were drilled at a different
azimuth to check for other mineralized structures that may be oblique to the
northeast-trending gold-antimony vein fault zones. Additional samples were
collected from these three holes to allow for continued averages of grade to be
determined. As stated previously, the additional samples were collected to
determine if there is a potential for a bulk mineable resource at the Nolan
Property, but more data and more drilling will be needed before any resource
estimate of this nature can be determined by the QP. The Silverado news release
dated October, 27, 2009 discusses the bulk mineable potential. Investors should take caution and realize that a potential
resource is not a resource estimate and will need additional work to ascertain
if it is an economically viable resource.

The following table shows some examples of the types of
mineralized veins found in the A Zone in 2009. Some of the smaller veins are
examples of individual veins and do not represent the entire zone which may
contain more veins within it. The table does not show all of the intercepts used
by the Company for resource estimates. The table is for description purposes
only. Note: The W and P listed in the Area column represent
Workmans and Pringle Benches respectively.

17

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|Area | Drill Hole # | Stibnite Vein Zone         | From (feet) | To (feet) | Width (feet) | Sb (%) | Au (oz/ton) | Brief Description of Ore Veins 
        Note: stibnite is comprised of antimony         (Sb) and sulfur.
      The highest possible Sb content in pure stibnite is 70%
|---- | ------------ | -------------------------- | ----------- | --------- | ------------ | ------ | ----------- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------
|W    | 09SH05       | A Zone                   | 276.2       | 278.8     | 2.6          | 59.3%  | 0.27        | 2.0 ft wide (true width) massive
    stibnite with > 90% stibnite                                                                                                     
|W    | 09SH06       | A Zone                   | 214.3       | 215.1     | 0.8          | 36.2%  | 0.06        | 6 inch (true thickness)
    massive stibnite vein                                                                                                                     
|W    | 09SH07       | A Zone 
    Hanging wall | 216.2       | 217.0     | 0.8          | <1.0%  | 0.64        | Quartz-stibnite-Au       veins
      totaling about 4 inches in hanging wall                                                                                          
|W    | 09SH07       | A Zone                   | 218.0       | 219.6     | 1.6          | 47.9%  | 0.78        | 1.0 ft (true width) massive

    stibnite-quartz-gold vein                                                                                                            
|W    | 09SH08       | A Zone                   | 278.6       | 279.7     | 1.1          | 55.4%  | 0.56        | 0.8 ft (true width)       Massive
    stibnite-quartz-gold-vein                                                                                                       
|P    | 09SH11       | A zone                   | 29.0        | 30.2      | 1.2          | 10.3%  | 0.12        | 1.0 ft (true width) Stibnite-quartz-Au vein. 
    Zone was broken.                                                                                                    
|P    | 09SH12       | A Zone                   | 20.0        | 21.5      | 1.5          | 32.1%  | 0.05        | 1.2 ft (true width) stibnite-quartz vein                                                                                                                              
|P    | 09SH14       | A Zone                   | 112.0       | 113.5     | 1.5          | 50.94% | 0.03        | Massive stibnite vein with a
      true width of 1.0 feet                                                                                                             
|P    | 09SH15       | A Zone                   | 162.5       | 163.4     | 0.9          | 35.5%  | 0.03        | 0.3 ft of massive stibnite      Plus 0.6 ft of quartz-stibnite veinlets and stibnite strings                                                                          
|P    | 09SH18       | A Zone                   | 74.5        | 75.5      | 1.0          | 37.7%  | 5.72        | Broken stibnite-quartz-gold vein
      with coarse visible wire gold.                                                                                                 
|P    | 09SH19       | A Zone                   | 173.8       | 176.2     | 2.4          | 14.7%  | 0.14        | 1.5 ft wide zone with 0.5 ft
      (true width) stibnite-quartz       Vein (fragmental texture) and
      adjacent quartz-stibnite veinlets                           
|P    | 09SH20       | A Zone                   | 205.0       | 206.5     | 1.5          | 2.7%   | 1.69        | 3.0 inch stibnite-quartz-arsenopyrite-gold vein that is part of a 5.5 ft densely veined
      zone                                                                    
|P    | 09SH20       | A Zone Hanging Wall      | 190.5       | 195.0     | 4.5          | 2.0%   | 0.11        | Chaotic quartz-stibnite and
      quartz- carbonate-gold stockwork                                                                                                    

18

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19

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20

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Independent Preliminary Feasibility Study Completed by
Pacific Rim Geological Consulting Inc.

During September 2008, Thomas K. Bundtzen of Pacific Rim
Geological Consulting Inc. (the QP) was commissioned by the Company to perform
a preliminary feasibility study of the Workmans Bench Antimony and Gold Lode
Deposit. Bundtzen is a third party (independent) and AIPG Certified Professional
Geologist. Bundtzen is a Qualified Person as defined by NI 43-101 and also
qualifies under the rules of the U.S. Securities and Exchange Commission. The
significance of the preliminary feasibility study is that the resource estimates
of the lode antimony and gold have been reclassified as a reserve and the
deposit is an economically viable deposit.

The information in the report was based on data as of October
15, 2008. The report was prepared as a National Instrument 43-101 Technical
Report in accordance with Form 43-101F, for the Company. Readers and investors
need to take caution since the 43-101 technical report is under the guidelines
of the British Columbia Securities Commission and that the United States
Securities Exchange Commission does not recognize many of the terms used such as
indicated resources and inferred resources and possibly other terms which
are commonly used by the Canadian Institute of Mining (CIM). Readers should note
that the results of the study post date the previous report by the QP released
on July 29, 2008, and that the information in the recent report which includes
resource estimates supersedes the July report. The results of the study were
released on January 1, 2009. The report in its entirety can be found at our
website www.silverado.com. Some of the pertinent items discussed in the report
are as follows:

| | 1. | Data Verification by the QP and QAQC of the Companys
      Sample Management.                            
| | -- | ----------------------------------------------------------------------------------------------------------
| | 2. | Mineral Processing and Metallurgical Testing of Bulk
      Sampled Material from the Underground Workings.
| | 3. | Summary of Resource and Reserve Estimates of the Antimony
      and Gold Lode Deposits.                   
| | 4. | Methodology and Modeling Used for the Lode Resource
      Estimates.                                      
| | 5. | Waste Rock Management Plan                                                                                
| | 6. | Mill Design (Pilot Mill)                                                                                  
| | 7. | Modeling Used for the Lode Resource Estimates.                                                            
| | 8. | Project Implementation Schedule.                                                                          
| | 9. | Conclusions and Recommendations of the
  QP.                                                              

Data Verification

During numerous personal inspections of the Nolan Creek
properties during 2007, 2008 and 2009, the QP observed sample collection and
sample preparation practices for the Nolan Gold Projects lode-style deposits. On
June 13 and 14 and September 28 and 29, 2008, the QP visited the Nolan Camp and
examined all significantly mineralized core intervals acquired from the 2007 and
2008 drilling programs. A total of 124 mineralized intervals were examined. The
analytical data was compared with each of the mineralized zones and confirmed
the elevated antimony and gold values in the sampled areas.

The QP observed core logging and trench samples being prepared
for shipment from Nolan Creek during October 22 to October 23, 2007. The QP also
observed Silverado contractors preparing placer samples for separation of placer
gold, the subsequent weighing of recovered gold and calculation of gold per unit
volume of material. In addition, the QP has access to detailed colored photos of
all drill core from the 2007-2009 drill program at Nolan Creek.

Judgments and determinations by the QP in regards to the
Companys sample preparation, analytical procedures and security of samples are
discussed in the 43-101 technical reports. Any technical reports mentioned
herein are included as supplemental documents that can be found on the Company
Website at www.Silverado.com.

Nolan Lode Gold and Antimony Project 2010 Work Plan

The feasibility study performed by the QP and disclosed on
January 5, 2009 will be a guideline for our future activities. Depending on
funding and the acquisition of certain permits, the Company plans to fast track
efforts toward the development stage. The Company will continue characterization
studies of potential acid rock drainage issues and baseline water sampling as
well as additional topographic surveys for planning and mine design.

During 2010, lode exploration work will consist of additional
diamond core drilling in several key areas throughout the property, as well as
more test trenching and bedrock sampling along the northeast trending Solomon
Shear Zone. The primary focus will be infill drilling in the intermediate area
between the Pringle Bench and Workmans Bench, as well as more infill drilling
within the area drilled in 2008 and 2009 for more accurate resource estimates of
the gold and antimony mineralized veins. Additional drilling on the property
will be dependent on our completion of drilling in the former key areas. The
planned drilling schedule is as follows:

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Workmans Bench- The Company plans to infill drill a
minimum of 20 holes along the portion of Solomon Shear Zone that was drilled in
2008 and 2009, for a more accurate estimate of reserves. Silverado also plans to
drill a minimum of 10 deeper holes beneath the current reserve block to expand
resources or potentially expand the current probable reserve block. In addition,
the Project will submit additional core samples from the north end of the
prospect to check for low grade gold content that has potential for a bulk
mineable resource.

Pringle South  The Company plans to infill drill a
minimum of 20 holes along the Solomon Shear Zone on the north side of Smith
Creek in the area between the Pringle and Workmans Benches to connect the
Workmans and Pringle Bench resource blocks. The Company plans to use a larger
drill to set casing through the large boulder-rich overburden that has thwarted
drill efforts in an area that is almost 600 feet in strike length. Both the
extreme north and south ends of Workmans and Pringle Bench have indicated other
gold-bearing structures that are oblique to the northeast trending Solomon Shear
Zone. The new and apparent gold-bearing structures and the type of gold
mineralization combined with an increase in width of the zone indicate a
potential for a bulk minable resource in this area.

Hillside Area - A small area of bedrock underlying the
Hillside Area was drilled in 2003 with an RC drill, but the drilling locations
were based on limited bedrock trenching data. Since then, geophysical surveys
and geochemical soil sampling surveys have defined much better drill targets. In
2010, the Company plans to drill exploratory holes to intercept the Solomon
Shear Zone in this area. The Company also plans to take advantage of the
historic trails and use an excavator to dig additional test trenches for surface
bedrock channel sampling and to verify drill targets.

Solomon II - The Companys newest prospect, based on air
photo interpretation and airborne EM surveys, is another structural zone that is
over three miles in length and parallels the Solomon Shear Zone. Located
approximately 2,000 ft east of the Solomon Shear Zone, the zone cuts across
Smith Creek in an area defined by two closely spaced ephemeral creeks (gullies),
an area where old timers previously mined stibnite. The Company believes that
this is likely another structural zone similar to the Solomon Shear Zone. The
northeast striking zone extends northeast from Smith Creek along the break in
slope directly south of Smith Dome.

The escarpment that remains at the base of the slope represents
the highest erosion and movement by glaciers in the area, and this area may be
responsible for the historic placer deposits in upper Smith Creek. Depending on
funding, the Company plans to build a road to allow a drill rig and other heavy
equipment to access the new prospect for exploration purposes.

Fortress Area -The Company plans to do detailed mapping
and sampling of the quartz-arsenopyrite veins in various outcrops along the
Fortress ridgetop. No drilling is planned for the Fortress Area in 2010.

Entire 11 Square Mile Nolan Property  The Company plans
to increase soil geochemistry coverage in areas that have never been subject to
modern geochemical surveys to check for potential disseminated stratiform gold
as well as other gold-bearing structures that may have been overlooked by placer
exploration techniques.

Sample Collection, Sample Preparation, and Analytical Procedures

All primary sample preparation from both lode and placer
mineral exploration programs at Nolan Creek was conducted by professional
geologists employed by Silverado. All work completed on behalf of Silverado was
completed by or under the supervision of a contractor of Silverado. Officers,
directors, and associates of Silverado were not involved in sample preparation.
Independent, off-site analytical laboratories completed additional sample
preparation of samples from the lode-style deposits.

Analysis of placer samples is performed on-site by Silverado
contractors. Analysis of lode-style deposit samples (core, percussion, trench,
and underground channel) is performed by independent, off-site laboratories.

Samples from placer deposits are analyzed in their entirety
(i.e., no sub-sampling) to minimize potential bias from sub-sampling of material
with such a large proportion of gold nuggets. The primary sample is processed
through a gravity separation technique at the drill rig to separate gold nugget,
fine gold, and heavy minerals from the host gangue material. A systematic
procedure was developed by geological staff for the collection and preparation
of percussion drill hole samples. The sample is emitted from the drill and
immediately submitted to a drill-mounted cyclone to dissipate the sample
velocity, and then passed through a Jones splitter. The split sample is then
processed through a Denver Gold Saver. The oversize exits the revolving drum
screen to a picking plate where +1⁄4 inch nuggets are hand-picked. The  1⁄4 inch
undersize reports to a Teflon lateral action sluice and the resultant heavy
mineral concentrate is hand-panned. The gold in the concentrate is then picked
with tweezers. The remaining fine heavy concentrate is treated with amalgamation
and the resultant gold bead is weighed along with the hand-picked gold with a
Champ electronic balance.

22

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The Company judges that the combined weight of the hand-picked
gold and the fine gold represents most of the gold in the sampled interval.
Since there will always be some loss of gold during this analytical procedure,
the gold grade in the sample is not likely to be overstated.

Silverado conducted volume measurements of samples collected
during 2003 and 2004 drilling programs. Results of these measurements showed
that a 5 foot sample from the Nolan Deep Channel averaged 14.80 gallons, whereas
a 5 foot sample from the Marys East Bench deposit averaged 19.20 gallons. The
Nolan Deep Channel deposits contain significant amounts of silt, sand, and clay,
whereas the left limit bench deposits such as those at Marys East are much
coarser grained. Determination of volumetric measurements results in a more
accurate estimate of gold grade in the placer deposit. Hence, each placer
deposit has been volume-characterized by Silverado contractors during
exploration.

Sample grades for placer deposits are expressed as gold content
per bank volume of material where bank volume is the in situ volume of material.
To calculate the bank volume the sample volume must be factored using a
predefined swell factor that quantifies how much the volume of the sample
increases as a result of extraction. The weight of the gold extracted from the
sample (the method of recovery which was described previously) is divided by the
bank volume of the sample to determine the grade of the sample expressed in
oz/cu yd Au.

Two methods are traditionally used by Silverado to estimate
gold grades in a placer resource. One method is to calculate the amount of gold
present in a bank cubic yard or ounces gold/cubic yard. When all of the values
are on or near the bedrock-gravel interface, an alternative method of estimating
gold quantities in a placer deposit is the amount of gold present on one square
foot of surface area on bedrock, known as a bedrock square foot or bsf. Since
most of the placer gold in the Nolan Deep Channel and in left limit benches are
bedrock placers, some Silverado geologists have expressed gold values in
exploration drill programs in bsf. This value varies with the thickness of
auriferous materials both above and below the bedrock-gravel interface.
Silverado has established conversion factors for converting ounces gold/bsf to
ounces gold/cubic yard, which systematically varied from valley floor and bench
deposits. All drill hole grade data is expressed in ounces gold per cubic yard.
Sample recovery calculations have been implemented by Silverado geological
staff.

The bsf method was used by the old time miners on the
property as the steep bedrock terrain created extreme variables in vertical pay
sections laying on bedrock, varying from one to fifteen feet thick. Therefore,
cubic yard measurements could be misleading in estimating and measuring a
deposit. Measuring deposits in valley bottoms or large bench areas allowed
accurate calculations for those areas using the volumetric (i.e., bcy)
method.

Diamond core samples are split in half on-site by Silverado
personnel using a core saw. Half of the core is submitted to external
laboratories for analysis and half is retained on site. Samples from RC drilling
are split with a splitter and surface samples are split by contracted laboratory
personnel.

ALS Chemex of Vancouver, Canada, an ISO 9001:2000 accredited
laboratory, has analyzed most of the Silverado sample stream from lode-style
deposits. More recently, Alaska Assay Laboratories LLC of Fairbanks, Alaska, an
ANS/ISO/IEC Standard 17035:2005 accredited laboratory, has been used by
Silverado for analytical work. Both laboratories produce a coarse split from
which a finely ground material to 150 mesh is analyzed. The pulverized material
and the coarse reject are stored by the laboratories for possible
re-analysis.

Trench and drill core samples submitted to ALS Chemex are
analyzed by the following methods: ME-MS41 (41 multi element), Au-AA23 (fire
assay gold to 5 ppb level), and Sb-AA65 (> 1% antimony or referred to as ore
grade antimony). Soil samples shipped to ALS Chemex are analyzed for the same
packages with the exception of the ore grade antimony or Sb-AA65.

Samples submitted to Alaska Assay Laboratories LLC were
analyzed using the following methods: Au-30 element (multi-element), fire assay
AA for gold and silver, and ICP-4A (ore-grade antimony). The packages from each
laboratory are roughly comparable in both elemental suite and analytical
methods.

Quality Control and Quality Assurance

Quality control and quality assurance (QC/QA) is routinely
performed by Silverado exploration contractors. Standards have been obtained
from Shea Clark Smith, a geochemist based in Tucson, Arizona that supplies
standards for mining companies. For core intervals intersecting vein zones, two
standards and one blank are randomly inserted in batches of twenty (20) sample
intervals. One standard contains 0.174 oz/ton gold. The other standard contains
0.261 oz/ton gold. For core penetrating mainly wall rock zones, one standard and
one blank are randomly inserted into batches of twenty (20) samples, with the
standard used containing 0.174 oz/ton gold.

23

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Core recovery is checked in every box coming off the drill rig.
During 2008, Silverado's geological contractors have reported that core recovery
averaged 95% since the exploration drilling switched to NQ core. Silverado
contractors have competently prepared samples analysis and dispatch to external
laboratories. All drill core is digitally photographed on site, and the photos
are kept on file for future reference as needed. All photos from the 2007 and
2008 drill programs were submitted to the QP for additional verification.

Sample security is maintained by geological contractors.
Samples are stored in a secure trailer at Nolan Camp. Individual samples are
composited into larger rice bags and sealed with wire ties. Samples are then
transported by contractors to the ALS Chemex preparation laboratory in
Fairbanks, Alaska.

The analytical package selected from external assay
laboratories reflects the need to: obtain precise antimony and gold values,
obtain information on trace metals such as bismuth, lead, arsenic, cadmium, and
selenium, and to seek to understand background levels of other elements for
environmental monitoring reasons. Because Silverado is evaluating the lode
resources of the area for potential development, it is useful for Silverado to
take a broad look at the elemental suite present in the affected environment in
order to better design an environmental monitoring program. Data from Workmans
Bench shows Ca values as high as 17.50 percent. This may indicate a high CaCO3
content of some sample intervals. Recent (2008) core logging criteria requires
the geologist to do a cold diluted HCL acid test of the drill core while logging
the core as a field test of the carbonate (buffering potential) content of the
bedrock. The rock encountered in the zones of interest have elevated sulfide
contents that could pose an acid drainage problem during future mining
operations. The Company tracks both the sulfide content and the carbonate
content for acid-base accounting purposes.

In addition, marketability issues are being addressed. Some
metals are considered to be deleterious in antimony purchases. For example, most
antimony smelters will not accept material that exceeds 0.5% combined lead and
arsenic. Smaller amounts of selenium and bismuth also pose potential limitations
and may invoke smelter penalties. Hence a broader suite of elemental information
has been acquired during the exploration of what is basically an
antimony-gold-arsenic system.

Mineralogical Processing and Metallurgical Testing Results
of the 414 lb Bulk Sample.

Until very recently, Silverado had not completed mineral
processing or processing tests of lode mineralization in the Nolan Creek area.
Silverado has acquired a permit from the USBLM to collect and process a maximum
1,000 cu yd of material from the Workmans Bench lode for metallurgical testing.
The bulk sample will be collected for a more accurate determination of grinding,
flotation, and other processing and mineralogical characteristics of the
stibnite. The bulk sample will also determine the mineralogical nature of the
gold and help determine the Companys recent conclusions that there is a gold
nugget effect associated with the stibnite veins, and the larger bulk samples
will serve to better ascertain a more accurate gold to antimony ratio for the
Workmans Bench deposit.

In April 2008, the QP collected a 414 lb bulk sample of
semi-massive to massive stibnite, vein quartz, and wall rock gangue all from the
defined mineralized A Zone in the Workmans Bench underground workings. The
purpose was to determine the mineralogical nature of the antimony mineralization
and the source of significant gold values. There is much variation in gold
content of the stibnite zones even within constrained sample collection areas.
The bulk sample was sent to Hazen Research Labs Inc. (Hazen) in Golden,
Colorado, USA in order to discover the most optimal grind for potential
marketing of a stibnite product, identify the mineralogical nature of gold and
antimony values in the mineralization.

Two reports were produced by Hazen in September: 1) Report #1 -
Flotation and Gravity Results, Workmans Bench Stibnite-Gold Deposit, Wiseman
District, Alaska; and 2) Report #2 - Mineralogical Examination, Workmans Bench
Stibnite-Gold Deposit, Wiseman District.

Summary of Hazens Report #1 - Rod mill grinding followed by
two rougher stages yielded a gold recovery of 98% and an antimony recovery of
nearly 100% in 37.8 percent of the weight, which strongly indicates flotation
may be a viable process for recovering gold and antimony at Workmans Bench. The
gold and antimony grades from the sample were 0.546oz/ton (as stated, 18.7 g/t)
and 36.7 percent respectively, which compare fairly closely to the average
inferred resource grades of 39.13 % antimony and 0.395 oz/ton gold from A
Zone. Gravity separation using a quarter DeisterTM shaking table produced a
second, cleaner gold and arsenopyrite concentrate that assayed 9.4 oz/ton (356.0
g/t) gold. This test work indicates that coarse gold and coarse stibnite can
likely be recovered by gravity separation; however, fine grained components of
both mineralogical products may require flotation. Given the tendency for
stibnite to slime, a flotation circuit may be an important prerequisite for a
recovery system. Using gravity only methods would result in a stibnite recovery
of approximately 85 percent, and gold recovery of about 90 percent. No duplicate
flotation and gravity confirmation tests were completed by Hazen Research Labs
Inc.

Summary of Hazens Report #2  The second report involved a
different separation process that included a heavy liquid with a specific
gravity of 2.96 (acetylene tetrabromide) for separation of the heavy minerals
for statistical analysis and to determine the nature of the gold occurrence. The
heavy liquid sink produced 85% stibnite, 10% gangue, 3% pyrite, 2% arsenopyrite,
1 % Rutile, and native gold.

24

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Further metallurgical testing may prove that acceptable gold
and antimony recoveries from slimes may be obtained through the side of the high
centrifugal force effect provided by a Falcon Concentrator. If this proves to be
the case, then the more costly flotation process may be avoided.

Budget projections for this project are detailed under the
section Projected Annual Budget for Fiscal Year 2010.

We are a mineral exploration company with interests in
properties located throughout the state of Alaska. The majority of such
properties are in the early stages of exploration, and there is no assurance
that a commercially viable mineral deposit exists on all of such properties.
Effective January 1, 2009, based on completion of a preliminary feasibility
study, our Nolan Gold and Antimony Lode Project has disclosed an economically
viable mineral reserve. The preliminary feasibility study concluded that the
resource estimates disclosed by the Company in its Current Report on Form 8-K on
November 17, 2008 can be reclassified as a probable reserve. Though there were
no material changes to the grades and quantities previously reported on November
17, 2008, there was additional data produced that added new grades and there was
further work conducted on this zone that resulted in the aforementioned
reclassification.

2.      Ester Dome Property

2.1    Ester Dome Property 2009 Work
Summary

The properties comprising our Ester Dome gold project are
discussed in detail under the heading Description of Properties herein. In
recent years, all exploration trenches were backfilled, stabilized, and seeded
to resist surface erosion. Annual assessment work for 2009 was completed and all
claim rental payments were made to maintain the property in good standing.
Fairbanks North Star Borough 2009 taxes were paid on the mill facility and mine
facilities in the sum of $7,860.

2.2    Ester Dome Property 2010 Work Plan

During 2010, we plan to continue work toward completion of the
closure of the Grant Mill Tailings Pond, as part of our asset retirement
obligations. 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). Currently the Company is waiting on a report from Shannon and Wilson
Inc., an engineering and environmental firm that is in the process of completing
a study that is needed for the Company to move to the next phase of required
permitting needed before the decommission process can take place. The Company
remains in good standing with the state regulators and will continue reclamation
work on our Ester Dome holdings during 2010.

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 2009 Summary

The placer claims comprising our Hammond property are discussed
in detail under the heading Description of Properties in this annual report.
During 2009, rental payments were made to keep the mining claims in good
standing.

3.2    Hammond Property 2010 Work Plan

To date, the Nolan Creek Deep Channel placer deposit and the
Hammond River Slisco Channel have the greatest exploration potential for an
economically viable placer deposit. Both prospects require more RC drilling and
analysis. Although the Company has been focusing on the Nolan Creek property,
the current price in gold may increase interest in this property.

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.

25

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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 2010, a series of
drill holes are proposed 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 2009, 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 2010 Work Plan

During 2010, 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 2010 work listed in this 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.

2010 Exploration Budget

Projected Annual Budget for Fiscal Year 2010:

|Nolan Gold and Antimony Project:                    |   |            | 
|--------------------------------------------------- | - | ---------- | 
|Drilling                                            | $ | 3,600,000  | 
|Construction and Permitting                         |   | 1,000,000  | 
|Core Logging and Assaying                           |   | 600,000    | 
|Drill Pads, Roads and Culverts                      |   | 400,000    | 
|Equipment Purchase                                  |   | 2,000,000  | 
|Fuel and Supplies                                   |   | 700,000    | 
|Contingencies                                       |   | 1,700,000  | 
|Total Costs for the Nolan Gold and Antimony Project |   | 10,000,000 | 
|Total Costs for the Eagle Creek Project             |   | 20,000     | 
|Total Costs for the Ester Dome Project              |   | 520,000    | 
|Total Costs for the Hammond Project                 |   | 20,000     | 
|Administration  Head and Field Offices             |   | 3,000,000  | 
|Total Budget All Projects                           | $ | 13,560,000 | 

Completion of all of the projects described in the 2010 work
plan will be contingent on additional funding. There is no assurance that
additional funding 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 and antimony sales are projected to be profitable.

26

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LOW-RANK COAL-WATER FUEL BUSINESS

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. Our determination to enter into this business was based on a decision to
broaden our business beyond mineral exploration and production.

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.

Silverado is currently having a $150,000 study conducted on the
chemical and physical characteristics of Mississippi Red Hills Lignite Coal at
the Mineral Industry Research Laboratory at the University of Alaska (Fairbanks)
(the UAF) and expected results by late 2009. In December 2009, the Company
received a letter from the UAF requesting the extension of the results by the
end of 2010. Results of the tests as well as capital availability and an
increase in oil prices would all have to be positive for Silverado Green Fuel
Inc. to reconsider construction of its LRCWF project. 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.

GOVERNMENT REGULATION

Silverado and its subsidiaries collectively own (or partially
own), lease, and/or hold purchase options on numerous federal and state placer
and lode mining claims on the Nolan, Slisco, Eagle, and Ester properties, all of
which are located in Alaska. These 801 total claims consist of: (i) 672 federal
mining claims, comprised of 228 federal placer claims and 444 federal lode
claims, and (ii) 129 state mining claims (the state of Alaska does not
distinguish between placer and lode rights within each state mining claim).

The Companys interests with respect to each specific property
are currently as follows:

- Nolan - Silverado is the sole owner of 204 federal placer mining claims and
  407 federal lode mining claims.
- Hammond (Slisco)  Silverado leases 24 federal placer mining claims and 36
  federal lode mining claims from Alaska Mining Company, Inc.(ALMINCO)
- Eagle Creek  Silverado has an equal (50%) ownership interest in 77 state
  mining claims with Kathleen King.
- Ester Dome  Silverado is party to an agreement for the conditional
  purchase of 22 state mining claims from Paul I. Barelka, Donald J. May, and
  Mark Thoennes; Silverado leases 1 federal lode mining claim and 4 state mining
  claims from Gilbert Dobbs; and Silverado is party to an agreement for the
  conditional purchase of 26 state mining claims from Roger C. Burggraf.

The following is a brief description, in accordance with
paragraph (b)(2) of Industry Guide 7, of the title, claim, lease, and/or option
instruments under which Silverado and its subsidiaries have or will have the
right to hold or operate its properties, the conditions which must be met in
order to obtain or retain such properties, and the expiration dates of any
leases or options, as well as certain other material terms:

i.      Lease Of Mining Claims With
Option To Purchase - The Hammond (Slisco) Property

Pursuant to that certain Lease Of Mining Claims With Option To
Purchase, effective December 14, 1994, as amended on July 5, 1996 and on August
21, 1996 (the Lease), Silverado leased certain unpatented placer mining claims
and lode mining claims recorded in Fairbanks, Alaska (collectively, Claims),
and obtained an option to purchase such Claims, from Alaska Mining Company, Inc.
(ALMINCO).

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The Lease had an initial term of five years, but has been
extended on a year-to-year basis on the same terms and will be in good standing
for as long as the covenants in the Lease remain satisfied.

Silverado materially covenanted to (i) perform certain work and
make certain expenditures on the Claims; (ii) obtain all licenses, permits, and
bonds required by law; (iii) timely complete all required annual assessment work
required for the Claims; (iv) pay the rents due to the United States on the
Claims each year; (v) maintain adequate workers compensation insurance; (vi)
indemnify ALMINCO for all losses and injuries not due to its own negligence;
(vii) carry public liability insurance of at least $500,000 and name ALMINCO as
an additional insured; (viii) indemnify ALMINCO for any liabilities or fines
assessed by local, state, or federal governmental agencies that result from
Silverados operations, actions, or omissions; (ix) refrain from pledging the
Lease as security for any debt or to allow any liens to remain effective against
the Lease or the Claims; and (x) refrain from assigning the Lease for the
benefit of creditors or to seek protection from creditors under applicable
bankruptcy laws.

The Lease obliges Silverado to make royalty payments equal to
10% of gross production from certain of the Claims each year, as well as minimum
royalty payments of $20,000 on the first anniversary of the Lease, $40,000 on
the second anniversary, and $80,000 on each of the third and subsequent
anniversaries of the Lease.

During the initial term, Silverado had an option to purchase
the placer claims for $500,000 less royalty payments and an option to purchase
the lode claims for $300,000, each subject to applicable price adjustments.
Silverado has an option to purchase certain additional lode claims for
$5,000,000.

Under the Lease, Silverado may cure any default relating to
required royalty payments within thirty (30) days following notice of such
default from ALMINCO, after which time ALMINCO may terminate the Lease if such
default has not been cured. ALMINCO may not terminate the Lease for any other
default for so long as Silverado is diligently attempting to cure such
default.

ii.     Lease and Purchase Agreement
(King) - The Eagle Creek Property

Silverado has an equal (50%) ownership interest in 77 state
mining claims with Kathleen King (King). Silverado will acquire a full (100%)
ownership interest in such state mining claims upon the payment of an additional
$43,000 to King in installments of $5,000 per year.

iii.    Agreement For Conditional Purchase
And Sale Of Mining Property (May et. al.) - The Ester Dome Property

Silverado is party to an Agreement For Conditional Purchase And
Sale Of Mining Property (the 1979 Agreement), dated May 12, 1979, with Donald
J. May, Paul I. Barelka, and Mark Thoennes (collectively, the Sellers)
pursuant to which Silverado agreed to conditionally purchase certain unpatented
state mining claims located in Fairbanks, Alaska (the 1979 Claims), including
all other then-owned and after-acquired mining claims or interests in mining
claims within one mile of any portion of the 1979 Claims, from the Sellers. The
state mining claims formerly belonging to Thoennes were acquired by Barelka and
May who have deeded the claims to Polar Mining Inc. and The Fairbanks Rescue
Mission respectively. The present owners of the mining claims covered under the
above agreement are Fairbanks Rescue Mission and Polar Mining, Inc.

The term of the 1979 Agreement commenced on the date Silverado
took possession of the 1979 Claims and will expire upon the earlier of (i) the
purchase price therefore being paid in full, or (ii) a default remaining uncured
for more than sixty (60) days after the date of the written notice of such
default.

Title to the 1979 Claims will pass to Silverado upon its
payment in full of the purchase price of $2,000,000. The purchase price is
payable at 15% of net profits (as such term is defined in the 1979 Agreement)
per year, adjusted for inflation, calculated on a quarterly basis, and payable
within sixty (60) days of the end of each calendar quarter. Upon full payoff of
the purchase price, the Sellers will be entitled to a royalty payment in the
form of a carried interest of 3% of net profits from Silverados operations
until production on the 1979 Claims is permanently terminated.

Under the 1979 Agreement, Silverado also covenanted to: (i)
perform annual assessment work beginning with the assessment year ending
September 1, 1980; (ii) refrain from permitting any liens or levies to be placed
against the 1979 Claims, and timely pay any taxes imposed on the 1979 Claims,
each until such time title is conveyed to Silverado; (iii) indemnify the Sellers
from any claims arising from Silverados operations and conditions on the 1979
Claims arising after the date of possession; and (iv) obtain and maintain
adequate insurance.

In the event of default, the Sellers must provide written
notice to cure to Silverado. If the Silverado fails to cure such default within
sixty (60) days after the date of such notice, the non-defaulting partys remedy
is to arbitrate the issue in accordance with the terms of the 1979 Agreement.

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iv.     Exploration And Mining Lease -
  The Ester Property

Silverado and Gilbert Dobbs (Dobbs) entered into an
Exploration And Mining Lease (Dobbs Lease), dated November 6, 1984, as amended
on August 4, 1996, pursuant to which Silverado leased from Dobbs three federal
lode mining claims in Fairbanks, Alaska known as the Moose Claim (BLM F061722),
the Rosie Claim (BLM F061724) and the Brandy Claim (BLM F061725) (collectively,
the Dobbs Claims), and all exploration, mining, and water rights associated
therewith. The above federal Rosie and Brandy claims have been converted to four
state mining claims: Rosie 1 (ADL575826), Rosie 2 (ADL575827), Brandy 1
(ADL575828), and Brandy 2 (ADL575829).

The Dobbs Lease had an initial term of ten (10) years, with
automatic renewals for additional five (5) year terms to take effect beginning
on November 6, 1999 and every fifth year thereafter if, at the commencement of
each renewal period, the Dobbs Lease remains in good standing and Silverado pays
US $10,000 to Dobbs.

In order for the Dobbs Lease to remain in good standing and for
each renewal to take effect, Silverado must make royalty payments equal to 15%
of the net profits (as such term is defined in the Dobbs Lease) derived from its
operations on the Dobbs Claims. Such payments are due within sixty (60) days
after the end of each calendar quarter. Once Silverado has paid $1,500,000 in
aggregate royalty payments to Dobbs, subsequent royalty payments will be reduced
to 3% of net profits derived from operations on the Dobbs Claims.

Furthermore, Silverado must (i) perform annual assessment work
beginning with the assessment year ending September 1, 1985; (ii) expend at
least $1,500 per year on the Dobbs Claims until the $1,500,000 threshold is met
(with such expenditures to be credited toward meeting such threshold); (iii)
refrain from permitting any liens or levies to be placed against the Dobbs
Claims, and timely pay any taxes imposed on the Dobbs Claims; (iv) indemnify
Dobbs from any claims arising from Silverados operations and conditions on the
Dobbs Claims arising after the date of possession; and (v) obtain and maintain
adequate insurance.

In the event of default, the non-defaulting party must provide
written notice to cure to the defaulting party. If the defaulting party fails to
cure such default within sixty (60) days after the date of such notice, the
non-defaulting partys remedy is to arbitrate the issue in accordance with the
terms of the Dobbs Lease.

v.      Agreement For Conditional
Purchase And Sale Of Mining Property (Burggraf) - The Ester Property

Silverado is party to an Agreement For Conditional Purchase And
Sale Of Mining Property (the 1978 Agreement), dated October 6, 1978, with
Roger C. Burggraf (Burggraf) pursuant to which Silverado agreed to
conditionally purchase six unpatented lode mining claims located in Fairbanks,
Alaska (the 1978 Claims), including all other subsequently located or acquired
claims and interests in mining property within two miles of any portion of the
1978 Claims, from Burggraf. The 1978 Claims are identified as: Irishman No.1,
Roosevelt, Banjo, ODea, White Rock Lode, and D. and Z.

The term of the 1978 Agreement commenced on the date Silverado
took possession of the 1978 Claims and will continue until the earlier of (i)
the purchase price therefor being paid in full, (ii) a default by Silverado
remaining uncured for more than sixty (60) days after the date of the written
notice of such default, or (iii) Silverado providing sixty (60) days notice of
termination to Burggraf.

Title to the 1978 Claims will pass to Silverado upon its
payment in full of the purchase price of $2,000,000. The purchase price is
payable at 15% of net profits (as such term is defined in the 1978 Agreement)
per year, calculated on a quarterly basis, and payable within sixty (60) days of
the end of each calendar quarter. The 1978 Agreement also called for Silverado
to issue an aggregate of 100,000 shares of its common stock to Burggraf over the
course of four (4) years from the date thereof. Once Silverado pays the purchase
price in full to Burggraf, it will be obligated to make royalty payments equal
to 3% of net profits derived from its operations on the 1978 Claims until
production is terminated. Furthermore, if any agreement is reached with a third
party concerning properties owned by such third party within two miles of any
portion of the 1978 Claims, Burggraf will be entitled to royalty payments equal
to 2% of net profits derived from Silverados operations on the 1978 Claims. The
original six federal unpatented federal lode claims incorporated in the 1978
Agreement with Burgraff have been converted to state mining claims: Grant
26-31(ADL 536564-536569). All mining claims under the agreement are now state
mining claims.

Silverado is also obligated to (i) perform annual assessment
work beginning with the assessment year ending September 1, 1979; (ii) expend up
to $15,000 per year on the 1978 Claims until the $2,000,000 purchase price is
paid (with such expenditures to be credited toward Silverados payment of the
purchase price); (iii) refrain from permitting any liens or levies to be placed
against the 1978 Claims, and timely pay any taxes imposed thereon; (iv)
indemnify Burggraf from any claims arising from Silverados operations and
conditions on the 1978 Claims arising after the date of possession; and (v)
obtain and maintain adequate insurance.

In the event of default, the non-defaulting party must provide
written notice to cure to the defaulting party. If the defaulting party fails to
cure such default within sixty (60) days after the date of such notice, the
non-defaulting partys remedy is to arbitrate the issue in accordance with the
terms of the 1978 Agreement.

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The maximum size of a federal placer mining claim is 20 acres,
and the maximum size of a federal lode mining claim is 20.7 acres. The maximum
size of a state of Alaska mining claim is 40 acres. Given the occasional
necessity of forming "fractional" mining claims to infill between properties or
to account for staking or survey errors, and using these maximum sizes, we
estimate that Silverado either owns or leases a total of approximately 8,400
acres of federal lode claims, 4,050 acres of federal placer claims, and 5,125
acres of state mining claims.

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.

MARKET

We are a mineral exploration company with gold and antimony
exploration properties located in U.S.A. The gold and antimony metal markets
have been strong since 2001, where the gold price has increased from $268 per
ounce to over $1,000 per ounce to its current price of $1,176 as of November 30,
2009. Antimony metal price has increased from $0.69 per pound to its current
price of approximately $3.00 per pound as of November 30, 2009. Management
believes that both the gold and antimony markets will remain strong for the
foreseeable future.

EMPLOYEES

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

RESEARCH AND DEVELOPMENT EXPENDITURES

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

|                                            |   | December 1, 2008           |  |   | December 1, 2007           | 
|------------------------------------------- | - | -------------------------- |  | - | -------------------------- | 
|                                            |   | to
      November 30, 2009 |  |   | to
      November 30, 2008 | 
|                                            |   |                            |  |   |                            | 
|Research and Development
      Expenditures | $ | --                         |  | $ | 295,045                    | 

ENFORCEABILITY OF CIVIL LIABILITIES

Our headquarters are located in, and our officers and directors
are residents of, British Columbia, 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.

ENVIRONMENT POLICY

Silverado is committed to contributing to a prosperous economy
through the sustainable development of natural resources while remaining
protective of the health of its workers and the public, and the state of the
natural environment, through wise stewardship of our land, air and water. We
recognize that fundamental to this commitment are the following principles:

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- Maintaining environmental, health and safety standards that minimize risks
  at levels as low as reasonably achievable;
- Preventing pollution through the application of economically feasible,
  proven technologies, procedures and processes;
- Meeting and exceeding legal and regulatory compliance requirements; and
- Committing to an environmental program of continual review and
  improvement.

In furtherance of these principles we continue to maintain this
environmental policy as a top-priority management theme, and apply environmental
management systems (EMS) that conform with the International Organization for
Standardizations (ISO) 14001 guidelines, including the structure, planning,
practices, procedures and processes necessary for developing, implementing,
achieving, reviewing and maintaining our environmental policy.

To that end we will make every effort to:

- Conduct careful and continuous monitoring of all our operations and their
  impacts on the environment, human health and safety;
- Identify and document those aspects of our activities which have, or could
  reasonably be expected to have, environmental impacts;
- Systematically identify all relevant legal and regulatory requirements and
  industry standards of practice, and honor an ongoing commitment of compliance;
- Set environmental objectives and targets that address our overall
  environmental policy, minimize or eliminate environmental impacts, and meet or
  exceed legal and regulatory requirements;
- Monitor and measure performance against our environmental objectives and
  targets, and routinely channel this information back into our EMS;
- Develop and apply technically proven and economically feasible measures
  through workplans which document our environmental, legal and regulatory
  targets and how they are to be achieved, and communicate these workplans with
  our employees;
- Apply environmental management practices which are flexible and adaptive
  to changes in production processes, regulatory requirements, and other factors
  which may affect our operations; and
- Continually improve our environmental programs through regular management
  reviews which address the possible need to change policies, objectives,
  targets and other elements of our EMS.

REPORTS TO STOCKHOLDERS

Silverado files reports regularly with the Securities and
Exchange Commission (SEC). The public may read and copy any materials we have
filed with SEC at the SEC's Public Reference Room at 100 F Street, NE.,
Washington, DC 20549, on official business days during the hours of 10 a.m. to 3
p.m. The public may obtain information on the operation of the Public Reference
Room by calling SEC at 1800SEC0330. SEC maintains an Internet site,
http://www.sec.gov/edgar.shtml, that contains reports, proxy and
information statements, and other information filed electronically with SEC. We
have also posted our financial information and news releases on the Companys
website at:http://www.silverado.com.

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ITEM 1A. RISK FACTORS

We face risks in completing our exploration plans and
achieving revenues. The risks and uncertainties described below are not the only
ones facing the Company. Additional risks and uncertainties not presently know
to us or that we currently deem immaterial may also impair our business
operations. 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 and your investment may be lost
entirely.

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 incurred significant losses in the past, 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.

We had deficit working capital of $1,271,785 as of November 30,
2009 and we have incurred significant losses in the past and did not report
revenues in our last three fiscal years ended November 30, 2009, 2008 or 2007.
Our 2010 plan of operations calls for expenditures of approximately $13,560,000
to be incurred by us over the next twelve months in order to continue our
drilling and exploration activities at the Nolan Gold, Ester Dome, Eagle Creek
and Hammond Projects. 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.

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

Thomas K. Bundtzen, an independent third party mining
consultant and an AIPG and NI 43-101 Qualified Person, completed a Preliminary
Feasibility Study for the Companys Nolan Creek Property effective January 1,
2009 (amended June 1, 2009). The study concluded that the lode gold and antimony
deposit underlying Workmans Bench and the southwestern portion of the Solomon
Shear Zone contain probable reserves. Nevertheless, there is no assurance that
we will be able to recover quantities of gold and antimony in these areas or in
any others that will enable us to achieve sales of gold and antimony that will
exceed our costs of recovering the gold and antimony.

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.

Our business is extremely dependent on the price of gold and
the price of gold as well as other precious base metals has experienced volatile
and significant price movements over short periods of time and is affected by
numerous factors beyond our control. 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.

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Factors that tend to cause the price of gold to decrease
include, but are not limited to, 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, jewelry 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.

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 (NI 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 except for those probable reserves defined in the January 1, 2009
report, amended June 1, 2009, earlier referenced in this document. 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.

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If we experience exploration accidents or other adverse
events, 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 are unable to obtain all of our required governmental
permits, our operations could be negatively impacted.

Our future operations, including exploration and development
activities, required permits from various governmental authorities. Such
operations are and will be governed by laws and regulations governing
prospecting, development, mining, production, taxes, labor standards, land use,
mine safety and other matters. There is no assurance that we will be able to
acquire all required licenses or permits or to maintain continued operations at
economically justifiable costs.

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.

Changes in government regulation may adversely affect the
Companys business.

The Company deals with various regulatory and governmental
agencies and the rules and regulations of such agencies. In order for the
Company to operate and grow its business, it needs to continually conform to the
laws, rules and regulations of such jurisdictions. It is possible that the legal
and regulatory pertaining to the exploration and development of mineral
properties will change. Uncertainty and new regulations and rules could increase
the Companys cost of doing business or prevent it from conducting its business.

As mineral exploration business is extremely risky, there is
substantial risk that our business will fail.

We plan to continue exploration on our mineral properties.
Because of the speculative nature of exploration of mineral properties, there is
no assurance that our additional exploration activities on our properties 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. 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

There can be no assurance that our independent geologists
estimates or results will be accurate.

We rely on independent geologists to analyze our drilling
results and to prepare resource reports. While these geologists rely on
standards established by various regulatory agencies and licensing bodies, there
can be no assurance that their estimates or results will be accurate. Analyzing
drilling results and estimating reserves or targeted drilling sites is not a
certainty. Miscalculations and unanticipated drilling results may cause the
geologists to alter their estimates.

34

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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.

Private placements, stock awards and the exercise of our
outstanding options and warrants may depress our stock price.

Sales or the availability for sale of shares of our common
stock by stockholders could cause the market price of our common stock to
decline and could impair our ability to raise capital through an offering of
additional equity securities. If our management determines to issue a large pool
of shares of our common stock to raise capital or other purposes in the future,
investors ownership position would be diluted and the market price of our
common stock may decline. The exercise of outstanding options and warrants, and
the subsequent sale of the underlying common stock in the public market could
have the effect of lowering the market price of our common stock below current
levels and make it more difficult for us and our stockholders to sell our common
stock in the future.

Regulatory actions by the SEC or any exchange on which our
securities are traded may adversely affect the price of our common stock, the
ability of stockholders to sell their shares and our ability to secure
additional funding.

Should any regulatory matters arise, resolution of these
matters with any entity will likely result in significant legal fees and related
expenses that would otherwise be devoted to our mining efforts. If you are a
stockholder, you may not be able to sell your securities and shares of our
common stock will become highly illiquid which may result in the loss of your
entire investment. In addition, should we become subject to any of the events
identified above, our ability to secure additional financing will be adversely
affected.

The securities industry and the offer and sale of securities
are highly regulated. Any improper actions, whether intentional or
unintentional, could subject us to litigation and potential monetary damages.
Any litigation that we undertake with respect ot our common stock or other
matters will involve the expenditure of significant financial resources and
divert managements focus from their primary responsibilities.

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.

ITEM 1B. UNRESOLVED STAFF COMMENTS

Not applicable.

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ITEM 2. PROPERTIES

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.

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

| | 1. | Nolan Gold Project;             
| | -- | --------------------------------
| | 2. | Hammond Property (Slisco Bench);
| | 3. | Ester Dome Properties;          
| | 4. | Eagle Creek Properties;         

All of these properties are in the exploration stage and have
no proven reserves as of November 30, 2009; with the exception of the Nolan
property, which has a probable reserve but requires a more extensive feasibility
study to ascertain if such probable reserve can be classified as a proven
reserve.

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

The details of our interests in the four groups of mineral properties
  are described below.

NOLAN GOLD PROJECT

Based on completion of a preliminary feasibility study, dated
January 1, 2009 and amended June 1, 2009, by the QP, our Nolan Gold and Antimony
Lode Project has disclosed an economically viable mineral reserve. The
preliminary feasibility study concluded that the resource estimates can be
reclassified as a probable reserve. However, it requires a more extensive
feasibility study to ascertain if such reserve can be classified as a proven
reserve. Effective January 7, 2010, the resource estimates for the Workmans
Bench and Pringle Bench prospects have been updated and are discussed below.

1.     Location and Access

The majority of the properties comprising our Nolan Gold
Project are adjacent to or within the Nolan Creek Valley, located approximately
8 miles northwest of the small town of Wiseman, and 175 air miles north of
Fairbanks, Alaska in the southern foothills of the Brooks Range. Centrally
located in the historic Koyukuk Mining District, Nolan Creek is a southerly
flowing tributary to Wiseman Creek which flows southeasterly into the Middle
Fork of the Koyukuk River. The Nolan Gold Project is accessible by the Elliott
and the Dalton Highways, about 280 road miles north of Fairbanks Alaska. An all
weather road connects the Nolan Creek Camp with the Dalton Highway and is
suitable year-round for semi-tractors loaded with fuel and equipment. Air
transportation is available by several commercial carriers from Fairbanks to the
4,500 ft long, state maintained Coldfoot Airport. The community of Coldfoot
Alaska is about 15 miles south-southeast of Nolan, and has Alaskas northernmost
gas station, grocery, and public lodging. Coldfoot also has a weather station
provided by the Alaska State Weather Service, and a post office.

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

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

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

36

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2.     Property Description and Ownership
  Interest

All of the mineral properties at the Nolan Gold Project are
federal mining claims. Federal mining law allows for a locator to stake either a
placer deposit or a lode deposit. Under the federal mining law, a 20 acre placer
claim with the dimensions of 660 feet by 1,320 feet may be staked. Lode mining
claims have dimensions of 600 ft by 1,550 ft.

As of November 30, 2009, Silverados Nolan Gold Project consist
of 204 unpatented, federal placer mining claims covering approximately 4,080
acres in three non-contiguous groups, and 407 unpatented federal lode mining
claims covering approximately 8,140 acres in one large contiguous group. Many of
the 407 lode mining claims are superimposed over the placer mining claims. There
has been no legal survey on any of the claims. These groups of properties are
described in the next subsection.

The majority of the Nolan Creek mining claims are controlled by
Silverado Gold Mines Inc., a wholly owned subsidiary of Silverado. Many of the
claim names acquired or staked by Silverado have historic names such as Marys
Bench and Workmans Bench. Annual maintenance and holding fees for the federal
placer and lode mining claims for the Nolan Gold Project totaled $85,540, which
were paid to the Bureau of Land Management (the BLM) as required.

(a) Nolan Gold Project Placer Property

Our Nolan Gold Project placer claim holdings are comprised of
197 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 204 placer claims. Of these claims, the Thomsons Pup claims
consist of 6 unpatented federal placer claims. The Companys 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.

37

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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.

(b) Nolan Lode

The Nolan Lode claims are comprised of 407 unpatented federal
lode claims. This number consists of the original 67 claims plus 241 claims
added during 2006 and 99 claims added during 2007. Ownership of these federal
lode claims is in the name of Silverado Gold Mines Inc. This area encompasses
approximately 8,140 acres.

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 *               | 0.060est                                       
|1993    | Production                     | Surface Operations     | Thompson Pup             | 33,800    | 1,304                 | 0.038                                          
|1994    | Production                     | Underground Operations | Marys Bench Underground | 16,143    | 2,697                 | 0.167                                          
|1994    | Production                     | Surface Operations     | Eureka Bench Open Cut    | 29,300    | 5,733                 | 0.196                                          
|1995    | Production                     | Surface Operations     | Phase 3 Open Cut         | 22,285    | 2,394                 | 0.107                                          
|1995    | Production                     | Underground Operations | 3B1 Underground          | 12,991    | 1,006                 | 0.077                                          
|1995    | Production                     | Surface Operations     | West Block Open Cut      | 18,988    | 1,305                 | 0.069                                          
|1995    | Production                     | Surface Operations     | Marys Bench hydraulic   | 600       | 27                    | 0.045                                          
|1996    | Test Mining During Exploration | Surface Operations     | Dolney Bench Surface     | 5,042     | 126                   | 0.025                                          

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|1998          | Test Mining During Exploration     | Surface Operations                                                                                              | Archibald Creek Surface                                         | 5,947   | 128      | 0.022
|------------- | ---------------------------------- | --------------------------------------------------------------------------------------------------------------- | --------------------------------------------------------------- | ------- | -------- | -----
|1999          | Test Mining During Exploration     | Underground Operations                                                                                          | Swede Channel Underground                                       | 4,575   | 623      | 0.136
|1999          | Test Mining During Exploration     | Surface Operations                                                                                              | Workmans Bench Open Cut                                         | 5,580   | 112      | 0.020
|2000          | Test Mining During Exploration     | Surface Operations                                                                                              | Workmans Bench Open Cut                                         | 14,919  | 201      | 0.013
|2003          | 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      | 0.015
|2006          | Test Mining During Exploration     | Underground Operations                                                                                          | Swede Channel Underground                                       | 6,843   | 939      | 0.137
|2007          | Test Mining During Exploration     | Underground Operations                                                                                          | Swede Channel and Marys East Underground                       | 14,092  | 3,726.8  | 0.264
|2008 and 2009 | Exploration for Lode deposits Only | Exploration for Lode deposits Only                                                                              | Diamond Core Drill Programs (73 holes drilled
      since 2007) | N/A     | N/A      | N/A  
|TOTALS        |                                    |                                                                                                                 |                                                                 | 261,384 | 23,172.8 | 0.089

*Includes 1,320 ounces produced by lessee.

We have not achieved profitability in any of the years during
which we have carried out 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. We also did not carry out any gold recovery operations in 2008 and
2009, as we focused on the lode exploration program.

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.

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4.     Present Condition of the Property

We have spent approximately $35,869,000 over the last 30 years
acquiring, exploring and undertaking test mining activities and test exploration
on the Nolan Gold Project. Up to November 30, 2009, 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 73 lode
exploration drill holes with a cumulative total of 21,144 feet of diamond core
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.

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).

Currently we have a fully functioning all season enclosed 23
man camp (Nolan Camp) with three functioning offices with computers and internet
access. The camp has a STW treatment plant for sewage and graywater treatment.
The camp site also has a large mechanics shop for working on heavy equipment
such as backhoes and bulldozers. The camp also has multiple ADEC approved
containments with tanks capable of storing 30,000 gallons of diesel fuel, and a
peripheral explosives storage area. The camp also has an abundance of heavy
equipment for excavating and road maintenance. In 2009, upgrades to the camp
facility were done in preparation of a crew of mine personnel that would be
needed to collect an underground bulk sample of gold-antimony ore. One key
upgrade was the installation of a larger diesel generator to supply more
electricity to the Nolan camp.

Exploration Objectives for the Nolan Gold Project

Our exploration plans are to expand our reserves on Workmans
Bench and 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, geochemical and geophysical data. We are currently
preparing for the development stage on our Nolan Lode and Antimony Project. The
Company has acquired a permit to collect a 1,000 cu yd bulk sample of
quartz-antimony-gold from the mineralized zone in the Workmans Bench portion of
the Solomon Shear Zone. We have also completed a preliminary feasibility study
effective January 1, 2009 and amended June 1, 2009. The overall objectives of
our exploration program are as follows:

|1. | To continue to expand reserves on the antimony-gold
      veined southwestern extent of the Solomon Shear Zone as well as northeast
      through Pringle Bench to the Hillside area, a distance of approximately
      6000 feet where, drilling, trenching, geology, geochemistry, ground and
      air borne geophysics all when combined, indicate a continuation of the ore
      zone or more lode deposits on the Nolan Gold project that could be the
      source of our placer gold deposits. We will continue to use our new
      systematic and scientific approach utilizing both GPS and GIS for
      interpretation of our spatial data.                                                                                                                                                                                                                     
|-- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               
|2. | To continue seeking capital investment to allow the
      successful advancement of our Nolan Gold and Antimony Project to the
      development stage and mining. We will use the Bundtzen preliminary
      feasibility study as a road map (guideline) for the project to move
      forward to the development and mining stage and continue to follow the
      recommendations of our QP which includes a 2009-2010 program designed to
      upgrade from probable reserves to proven reserves in the Workmans and
      Pringle Bench areas, and continue exploration along the strike length of
      the Solomon Shear Zone, advancing the drilling program northeast to
    the Hillside Zone. Also, as per our QPs recommendations, we
      will involve continued aggressive permitting, fulfilling the requirements
of our regulators in an expedient manner.

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|3. | 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 in the future.
      It is our belief that as a lode deposit goes into production, the placer
      deposits may then be mined in conjunction profitably by sharing various
      costs common to both types of mining.
|-- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        
|4. | 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. The exploration strategy
and focus has changed slightly since the beginning of 2007, and is discussed
below.

Exploration Strategy and Focus

The current focus of the Company is the advancement toward the
development stage of our Nolan Gold and Antimony Project, especially along the
southwestern end of the Solomon Shear Zone in the Workmans Bench Area. The
Company is in a transitional phase between exploration and development/mining.

The current exploration strategy involves a complete systematic
approach that combines placer gold test mining data, soil geochemical data,
geophysical data, percussion drilling data and diamond drill core data for the
further delineation of potential lode sources for gold and antimony in the areas
known as Pringle and Workmans Bench. Our strategy also involves performing
studies in preparation for the development & mining stage for the
antimony-gold deposit underlying the Workmans Bench. These studies include but
are not limited to geotechnical studies of the bedrock for underground
engineering and design purposes, additional hydrologic studies proximal to our
planned underground workings, as well as collecting additional bulk samples of
stibnite-gold vein material for larger scale milling and processing tests, and
various environmental baseline studies.

The Company plans to drill more diamond core drill holes for
additional estimates of reserves. We will continue to take advantage of the
historic roads and trails on our property to use mobile heavy equipment for
digging trenches into the bedrock for more accurate geologic interpretation and
moving other mobile equipment like our newly acquired diamond core drill.

Prior to 2007, Silverados exploration efforts focused more on
placer gold test mining activities , with only minor emphasis on drilling the
bedrock to test for lode gold potential. Between 1993 and 2006, the Company
drilled 14 percussion-reverse circulation (RC) drill holes totaling 3,695 ft.
into bedrock and collected 727 assays for gold and antimony mineralization. The
RC drilling indicated gold and antimony mineralized quartz veins . Although the
data from the RC drilling indicated desired mineralization, it did not allow for
the determination of the true width of the veins or other pertinent insitu
information as the RC holes were used primarily to gather placer gold data. The
recent focus of exploring for a lode gold and antimony deposit involves the use
of a diamond core drill which allows the geologist to make determinations of the
true width of mineralized veins and the relationship of the veins to other
primary geologic structures. The diamond drill core allows for more accurate
analysis of grade and interpretation of style of mineralization and timing of
mineralization relative to other structures in the rock. To date, the Company
has drilled a total of 73 diamond core drill holes totaling 21,444 feet during
lode exploration since 2007.

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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.

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 ten to hundreds 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
      levels 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. Immediately east of this trend lies a second sub parallel resistivity
low also identified by airborne geophysics and showing similar characteristics
to the Solomon Shear Trend.

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 trending 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 exploration program in 2010 with the objective of identifying
mineralization of commercial significance along this zone.

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.

6.     2009 Nolan Gold and Antimony
Project Mineral Reserves and Resource Estimates.

The following results are based on a Preliminary Feasibility
study performed by Thomas K. Bundtzen (Bundtzen/the QP) of Pacific Rim
Geological Consulting Inc. Bundtzen is an independent third party mining
consultant who is an AIPG Qualified Person. The Company requested the study in
September 2008. The study concluded that the lode gold and antimony deposit
underlying Workmans Bench and the southwestern portion of the Solomon Shear
Zone, contains a probable reserve.

For a complete summary of the data used and the methods of
determination of the lode resource estimates, readers are encouraged to view the
recent 43-101 report by Bundtzen, effective January 1, 2009, which is posted on
the Companys website and on EDGAR and SEDAR. The NI 43-101 Technical Report by
Bundtzen that was disclosed on January 1, 2009 was amended June 1, 2009 (the technical report or report). In addition, recent amendments
to the resources estimates effective January 7, 2010 were calculated by Bundtzen
and disclosed in a January 7, 2010 Silverado news release. The new resource
estimates are based off of an investigation that was not within the current
mineral reserve block and as such the grades and tonnages of the probable
mineral reserve have not changed.

42

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General Note Regarding Estimates

The following information should be considered in connection
with our estimates for Workmans Bench, which we are disclosing in accordance
with applicable SEC standards and regulations:

- Assumed Pricesof US $900/oz for gold and US $2.75/lb for antimony.
- Process Recovery Ratesof 85% for antimony and 90% for gold (as
  provided by Hazen Research from work done on an underground bulk sample from
  the D tunnel of the Workmans Bench A vein and using gravity and water
  recovery systems only).
- Estimated Operating Costsof US $375/ton, based on operation of a
  92 ton per day underground mine.

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

The reserve estimates for each of the three zones (A, B, and
West) were determined by drill hole intercepts of each zone as well as channel
samples of the zone from the underground workings. The QP used a polygonal
estimation of grade by compositing sample assay information taken within
designated widths and lengths of mineralized zones, giving consideration only
for intercepts with an antimony value greater than 4% antimony (7% stibnite). A
total of 124 intercepts of antimony-quartz-gold were assayed from the 41 diamond
core drill holes for the three zones. Considering the specific gravity of pure
stibnite is 4.52 and quartz and schist gangue are 2.70 and 2.66 respectively,
The QP used a tonnage factor of 8.2 cubic ft per ton (massive stibnite would be
7.1 cubic ft per ton).

Polygonal Calculations of Tons, Grades and Amounts of Antimony
  and Gold

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

The following tables summarize the polygon calculations used by
the QP to determine the probable mineral reserves for the Workman's Bench gold
and antimony deposit, effective January 1, 2009. The data below is based off of
2007 and 2008 diamond core drilling data. As well as channel samples and
specific vein samples collected from our underground workings that were
collected by the QP in 2008. Detailed maps, outlining the polygons used in the
probable reserve estimates, are shown in the QPs NI 43-101 technical report
(feasibility study), effective January 1, 2009.

43

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Polygonal Probable Reserve Calculations of Workmans Bench
A Zone, Nolan Creek, Alaska

|Polygon     | Tons   | Antimony (%) | Antimony (tons) | Gold (oz/ton) | Gold (ounces)
|----------- | ------ | ------------ | --------------- | ------------- | -------------
|1           | 365    | 4.70         | 17.2            | 0.056         | 20.4         
|2           | 337    | 4.20         | 14.1            | 0.120         | 40.4         
|3           | 445    | 22.80        | 101.5           | 1.090         | 485.1        
|4           | 484    | 22.85        | 110.5           | 1.070         | 517.8        
|5           | 602    | 29.60        | 178.2           | 1.120         | 674.2        
|6           | 508    | 23.09        | 116.8           | 0.056         | 28.4         
|7           | 390    | 50.89        | 198.4           | 1.109         | 432.2        
|8           | 379    | 31.40        | 119.0           | 1.115         | 422.6        
|9           | 305    | 28.03        | 85.4            | 0.987         | 301.0        
|10          | 195    | 13.47        | 26.2            | 0.146         | 28.5         
|11          | 950    | 22.36        | 212.4           | 0.193         | 183.4        
|12          | 175    | 27.94        | 48.9            | 1.097         | 191.9        
|13          | 125    | 10.66        | 13.3            | 0.970         | 121.3        
|14          | 105    | 16.17        | 33.9            | 0.102         | 10.7         
|15          | 535    | 19.73        | 105.5           | 0.300         | 160.6        
|16          | 335    | 31.68        | 106.1           | 0.307         | 102.8        
|17          | 452    | 34.24        | 154.7           | 0.334         | 150.9        
|18          | 152    | 24.68        | 37.5            | 0.486         | 73.8         
|19          | 109    | 21.43        | 23.3            | 0.240         | 26.1         
|20          | 485    | 24.40        | 118.3           | 0.323         | 156.6        
|21          | 855    | 24.73        | 211.4           | 0.196         | 167.5        
|22          | 245    | 19.90        | 48.7            | 0.256         | 62.7         
|23          | 140    | 17.48        | 24.4            | 0.250         | 35.0         
|24          | 65     | 16.50        | 10.7            | 0.160         | 10.4         
|25          | 85     | 18.86        | 16.0            | 0.166         | 14.1         
|26          | 101    | 18.19        | 18.4            | 0.150         | 15.1         
|27          | 100    | 15.77        | 15.8            | 0.143         | 14.3         
|28          | 146    | 14.18        | 20.7            | 0.170         | 24.8         
|29          | 389    | 36.55        | 141.9           | 0.322         | 125.2        
|30          | 716    | 35.86        | 256.7           | 0.340         | 243.4        
|31          | 384    | 23.49        | 90.2            | 0.141         | 54.1         
|32          | 345    | 23.10        | 79.7            | 0.181         | 62.4         
|33          | 107    | 24.18        | 25.8            | 0.217         | 23.2         
|34          | 330    | 32.04        | 106.0           | 0.267         | 88.0         
|35          | 780    | 39.10        | 304.9           | 0.681         | 531.2        
|36          | 840    | 36.57        | 307.1           | 0.492         | 413.2        
|37          | 2,050  | 48.74        | 999.0           | 0.416         | 853.0        
|38          | 2,490  | 48.68        | 1,212.0         | 0.453         | 1,128.0      
|39          | 2,300  | 54.59        | 1,255.0         | 0.725         | 1,667.0      
|40          | 459.0  | 21.00        | 96.3            | 0.459         | 210.6        
|41          | 1,180  | 39.43        | 465.0           | 0.201         | 237.0        
|42          | 550    | 30.66        | 165.0           | 0.130         | 72.0         
|43          | 185    | 20.50        | 37.9            | 0.106         | 19.6         
|44          | 820    | 28.02        | 229.6           | 0.114         | 93.4         
|45          | 353    | 18.14        | 64.0            | 0.107         | 37.8         
|46          | 697    | 7.93         | 55.2            | 0.123         | 85.7         
|47          | 998    | 17.53        | 174.9           | 0.101         | 100.7        
|48          | 157    | 20.93        | 32.8            | 0.106         | 16.6         
|49          | 140    | 14.49        | 20.3            | 0.056         | 7.8          
|50          | 450    | 10.80        | 48.6            | 0.098         | 44.1         
|51          | 135    | 28.76        | 38.8            | 0.140         | 18.9         
|52          | 100    | 29.58        | 29.6            | 0.130         | 13.0         
|53          | 85     | 29.60        | 25.1            | 0.120         | 10.2         
|54          | 454    | 23.74        | 107.8           | 0.171         | 77.6         
|55          | 423    | 24.02        | 101.6           | 0.516         | 218.2        
|56          | 228    | 23.02        | 52.5            | 0.463         | 105.6        
|57          | 235    | 20.02        | 47.0            | 0.413         | 33.6         
|58          | 338    | 26.46        | 89.4            | 0.463         | 156.4        
|59          | 564    | 21.44        | 120.9           | 0.526         | 296.6        
|TOTAL/AVERA | 28,452 | 31.52        | 8,967.9         | 0.405         | 11,516.7     

44

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Polygonal Probable Reserves Calculations for B Zone,
Workmans Bench, Nolan Creek Area, Alaska

|Polygon       | Tons  | Antimony (%) | Antimony (tons) | Gold (oz/ton) | Gold (ounces)
|------------- | ----- | ------------ | --------------- | ------------- | -------------
|1             | 185   | 34.32        | 64.0            | 0.298         | 55.0         
|2             | 237   | 40.13        | 95.0            | 0.618         | 146.0        
|3             | 175   | 39.36        | 69.0            | 0.507         | 89.0         
|4             | 475   | 47.50        | 226.0           | 1.105         | 524.0        
|5             | 590   | 41.42        | 244.0           | 0.652         | 384.0        
|6             | 574   | 45.32        | 260.0           | 1.060         | 608.0        
|7             | 195   | 31.32        | 61.0            | 0.425         | 83.0         
|8             | 289   | 17.59        | 50.8            | 0.154         | 44.5         
|9             | 830   | 37.15        | 308.0           | 0.802         | 666.0        
|10            | 675   | 34.97        | 236.0           | 0.724         | 489.0        
|11            | 116   | 21.73        | 25.2            | 0.123         | 14.3         
|12            | 79    | 19.76        | 15.6            | 0.130         | 10.3         
|13            | 160   | 10.10        | 16.2            | 0.313         | 50.1         
|14            | 186   | 21.60        | 40.2            | 0.451         | 83.9         
|15            | 487   | 15.25        | 74.2            | 0.430         | 209.4        
|16            | 875   | 25.54        | 223.4           | 0.317         | 277.3        
|17            | 95    | 16.51        | 15.7            | 0.241         | 22.9         
|18            | 331   | 16.06        | 53.1            | 0.244         | 80.8         
|19            | 209   | 4.59         | 9.6             | 0.067         | 14.0         
|20            | 107   | 5.16         | 5.5             | 0.070         | 7.5          
|21            | 145   | 13.82        | 20.0            | 0.063         | 9.1          
|22            | 155   | 13.58        | 21.1            | 0.050         | 7.8          
|23            | 365   | 7.98         | 29.1            | 0.160         | 58.4         
|24            | 385   | 5.65         | 21.7            | 0.083         | 31.9         
|25            | 567   | 8.30         | 47.0            | 0.310         | 175.8        
|26            | 269   | 4.77         | 12.8            | 0.256         | 68.8         
|TOTAL/AVERAGE | 8,756 | 25.63        | 2,244.2         | 0.480         | 4,210.8      

Polygonal probable reserve Calculation for West Zone,
Workmans Bench, Nolan Creek area, Alaska

|Polygon       | Tons  | Antimony (%) | Antimony (tons) | Gold (oz/ton) | Gold (ounces)
|------------- | ----- | ------------ | --------------- | ------------- | -------------
|1             | 565   | 2.86         | 16.1            | 0.908         | 513.0        
|2             | 446   | 2.39         | 10.6            | 0.108         | 48.2         
|3             | 450   | 3.12         | 14.0            | 0.921         | 414.5        
|4             | 359   | 2.64         | 9.5             | 0.121         | 43.4         
|5             | 131   | 3.36         | 4.4             | 0.140         | 18.3         
|6             | 73    | 9.30         | 6.8             | 0.143         | 10.2         
|7             | 210   | 9.81         | 20.6            | 0.124         | 26.0         
|8             | 297   | 18.09        | 53.7            | 0.105         | 31.2         
|9             | 110   | 19.06        | 20.9            | 0.261         | 28.7         
|10            | 95    | 12.10        | 11.5            | 0.225         | 21.3         
|11            | 109   | 14.53        | 15.8            | 0.215         | 23.4         
|12            | 166   | 13.13        | 21.8            | 0.229         | 38.0         
|13            | 286   | 18.35        | 52.4            | 0.293         | 83.8         
|14            | 397   | 11.75        | 46.6            | 0.098         | 38.9         
|15            | 175   | 21.56        | 37.7            | 0.146         | 25.6         
|16            | 537   | 19.82        | 106.4           | 0.140         | 75.2         
|17            | 160   | 23.59        | 37.7            | 0.143         | 22.8         
|18            | 192   | 35.32        | 67.8            | 0.230         | 44.2         
|19            | 75    | 31.78        | 23.8            | 0.196         | 14.7         
|20            | 115   | 21.74        | 25.0            | 0.113         | 13.0         
|21            | 256   | 25.28        | 64.7            | 0.147         | 37.6         
|TOTAL/AVERAGE | 5,204 | 12.80        | 667.8           | 0.302         | 1,572        

45

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Total Probable Lode Mineral Reserves, for Workmans Bench,
Nolan Creek Area A. B and West Zones

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

|Reserve Category | Cut-off grade (% Sb) | Quantity (ton) | Grade (% Sb) | Metal (ton Sb) | Grade (oz/ton Au) | Metal (oz Au)
|---------------- | -------------------- | -------------- | ------------ | -------------- | ----------------- | -------------
|Probable         | 4.0                  | 42,4           | 28.00        | 11,880         | 0.408             | 17,300       

Notes:

| | Rounding may result in some
      discrepancies.                                                                                                                                                    
|- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | No processing recovery factors
      have been applied to these reserve figures.                                                                                                                    
| | The unit ton refers to short
      tons.                                                                                                                                                            
| | Cut-off grade is 4.0% Sb
      equivalent, which refers to the combined values of gold plus antimony
      expressed in terms of antimony alone                                                   
| | Effective date of the estimate is January 1, 2009. The
      2009 exploration program was not involved with the current reserve block
      and as such did not affect the grade or tonnages listed.

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

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

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

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

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

Notes:

| | Mineral Resources which are not mineral reserves do not
      have demonstrated economic viability. The estimate of mineral resources
      may be materially affected by environmental, permitting, legal, title,
      taxation, socio-political, marketing, or other relevant issues.
|- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | Rounding may result in some
      discrepancies.                                                                                                                                                                                                                                        
| | No processing recovery factors
      have been applied to these resource figures.                                                                                                                                                                                                       
| | The unit ton refers to short
      tons.                                                                                                                                                                                                                                                
| | Cut-off grade is 4.0% Sb
      equivalent, which refers to the combined values of gold plus antimony
      expressed in terms of antimony alone.                                                                                                                                      

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

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

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

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

46

---

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

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

Notes:

| | Mineral Resources which are not mineral reserves do not
      have demonstrated economic viability. The estimate of mineral resources
      may be materially affected by environmental, permitting, legal, title,
      taxation, socio-political, marketing, or other relevant issues.
|- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | Rounding may result in some discrepancies.                                                                                                                                                                                                                                              
| | No processing recovery factors have been applied to these
      resource figures.                                                                                                                                                                                                       
| | The unit ton refers to short tons.                                                                                                                                                                                                                                                      
| | Cut-off grade is 4.0% Sb equivalent, which refers to
      the combined values of gold plus antimony expressed in terms of antimony
      alone.                                                                                                                                      

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

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.

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

Silverado leases 24 federal placer mining claims and 36 federal
lode mining claims from Alaska Mining Company, Inc. (Alminco).

As of November 30, 2009, we were in arrears of required mineral
property claims and option payments of $470,000 and therefore our rights to the
property were adversely affected. We are currently re-negotiating the terms and
conditions of the Alminco agreement with Alminco. Alminco has confirmed that our
mineral claims and options are in good standing on the understanding we will use
our best efforts to pay the minimum royalty payments, including the payments
that are in arrears, when business conditions permit; however there is no
assurance that we will be able to successfully renegotiate the terms and
conditions of the Alminco agreement.

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.

47

---

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.

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.

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:

48

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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. There has been no legal
survey on the claims. There are three separate agreements covering these 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. The owner of the claims has confirmed our agreement is in
  good standing.

49

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| | (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) | Dobbs                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              
| |     |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     
| |     | 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. 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.

(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.

50

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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:

|YEAR                 | DRY TONS
     MILLED | RECOVERED OZ. GOLD | RECOVERED GRADE
|-------------------- | -------------------- | ------------------ | ---------------
|1980 
      1981(1) | 4,170                | 1,424              | 0.341          
|1985 1986           | 7,069                | 1,372              | 0.193          
|1987 - 1989          | 100,586              | 8,419              | 0.083          
|TOTALS               | 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) Dobbs

The Dobbs 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.

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. Most of the
mill and equipment are in operating condition but upgrades would be required.
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. The
Grant Mine Tailings Pond is near capacity, and currently the Company has a
third-party engineering firm working on a closure plan for the decommissioning
and reclamation of the old pond. A new mine operation would need a new tailings
pond constructed.

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.

51

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(a) 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.

(b) 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.

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.

General Note Regarding Estimates

The following information should be considered in connection
with our estimates for the Ester Dome properties, which we are disclosing in
accordance with applicable SEC standards and regulations:

- Assumed Price of US $900/oz for gold.
- Process Recovery Ratesof 94%
- Estimated Operating Costs of $130 per ton for an underground mine plus
  mill and $80 per ton for a surface mine and heap leach

Rounding may result in discrepancies. No process recovery
factors have been applied to any of the following resource estimates. The unit
ton refers to short tons.

52

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The following resource estimates were extracted from a July 11,
2008 NI 43-101 report prepared by Thomas K Bundtzen. There are no mineral
reserves estimated for Silverados Ester Dome properties. Mineral resources that
are not mineral reserves do not have demonstrated economic viability.

A.       GRANT MINE - ODEA
  STRUCTURE

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

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

The following table also 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.

O'Dea-Grant Mineral Resources, effective July 11, 2008

|Deposit     | Resource Category | Cut-off Grade (oz/ton)
      Au | Quantity (ton) | Grade (oz/ton Au) | Metal (oz of Au)
|----------- | ----------------- | ------------------------------- | -------------- | ----------------- | ----------------
|O'Dea-Grant | Indicated         | 0.08                            | 342,000        | 0.303             | 103,630         
|O'Dea-Grant | Inferred          | 0.04                            | 1,380,620      | 0.089             | 123,670         

B.       DOBBS  (ETHEL 
ELMES)

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.

Dobbs (Ethel-Elmes) Inferred Mineral Resources, effective
July 11, 2008

|Deposit     | Resource Category | Cut-off Grade (oz/ton)
      Au | Quantity (ton) | Grade (oz/ton Au) | Metal (oz of Au)
|----------- | ----------------- | ------------------------------- | -------------- | ----------------- | ----------------
|Ethel Elmes | Inferred          | 0.04                            | 1,172,820      | 0.077             | 90,470          

C.       ST. PAUL

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

53

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The following table also 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.

St. Paul-Barelka Indicated Mineral Resources, effective July
11, 2008

|Deposit          | Resource Category | Cut-off Grade (oz/ton)
      Au | Quantity (ton) | Grade (oz/ton Au) | Metal (oz of Au)
|---------------- | ----------------- | ------------------------------- | -------------- | ----------------- | ----------------
|St. Paul-Barelka | Indicated         | 0.08                            | 271,600        | 0.085             | 23,070          

Ester Dome Mineral Resource Totals, Effective July 11, 2008

|Category        | Cut-off grade (oz/ton Au) | Quantity (ton) | Grade (oz/ton Au) | Metal (oz Au)
|--------------- | ------------------------- | -------------- | ----------------- | -------------
|Total Indicated | 0.08                      | 613,600        | 0.21              | 126,700      
|Total Inferred  | 0.04                      | 2,553,400      | 0.08              | 214,100      

Note: Rounding may result in discrepancies. No processing
recovery factors have been applied to any of these resource estimates. The unit
ton refers to short tons. The mineral resource estimates reported in this
section were prepared by Bundtzen. There are no mineral reserves estimated for
Silverados Ester Dome properties. Mineral resources that are not mineral
reserves do not have demonstrated economic viability.

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:

54

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

55

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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 2008 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. 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.

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.

FEDERAL CLAIM MAINTENANCE FEES AND STATE CLAIM RENTALS

We pay an annual federal claim maintenance fee to the Bureau of
Land Management (BLM) 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 $94,080 in 2009, $84,000 in 2008 and $83,750 in 2007 to BLM;
in addition, the Company paid $18,805 to BLM in 2007 for staking new claims.

We pay an annual Alaska state claim rentals to the Alaska
Department of Revenue for each state mining claim that is owned or held by us
under a purchase or lease agreement. We paid aggregate annual Alaska state claim
rental fees of $21,930 in 2009 and $16,770 in fiscal 2008 and 2007.

56

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GLOSSARY OF TERMS

The definitions of geological and technical terms used in this
Annual Report on Form 10-K 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) with minor chlorite (see previous entry).                                                                                                                                                                                                                                                                      
|                      |                                                                                                                                                                                                                                                                                                                                                                                        
|Development Stage     | Includes all mining companies engaged in the preparation
      of a mineral deposit with reserves for production and which are not in the
      production stage.                                                                                                                                                                                                                      
|                      |                                                                                                                                                                                                                                                                                                                                                                                        
|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.                                                                                                                                                                                                                                                                                                           

57

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|Granite             | An intrusive rock which includes feldspar, mica and
      quartz.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            
|------------------- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|                    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              
|Graphitic Phyllite  | Metamorphic rock intermediate between slate and schist,
      and containing graphite (carbon).                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              
|                    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              
|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 Deposit     | A mineral deposit is a mineralized body, which has been
      intersected by a sufficient number of drill holes or by underground
      workings to give an estimate of grade(s) of metal(s) to warrant further
      exploration or development. A mineral deposit does not qualify as a
      commercially viable mineral deposit with reserves under standards set by
      the Securities and Exchange Commission until a final, comprehensive,
  economic, technical and legal feasibility study has been completed.                                                                                                    
|                    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              
|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,
      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.

58

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|                                   | 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
    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.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               
|                                   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      
|Ore                                | A natural aggregate of one or more minerals which, at a
      specified time and place, may be mined and processed and the product(s) at
      a profit or from which some part may be profitably separated.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         
|                                   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      
|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.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         
|                                   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      
|Production Stage                   | Includes all mining companies engaged in the exploitation
      of a mineral deposit with proven reserves.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           
|                                   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      
|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.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               

59

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|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.

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

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

None.

PART II

ITEM 5. MARKET FOR REGISTRANTS COMMON EQUITY, RELATED
STOCKHOLDER MATTERS AND ISSUER PURCHASES OF EQUITY
SECURITIES

Our common shares are quoted on the Over-the-Counter (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 BID      
|              |                       |          |              
|              | November 30, 2007     | $0.09    | $0.07        
|              | February 29, 2008     | $0.08    | $0.06        
|              | May 31, 2008          | $0.04    | $0.04        
|              | August
      31, 2008 | $0.03    | $0.03        
|              | November 30, 2008     | $0.01    | $0.01        
|              | February 29, 2009     | $0.01    | $0.01        
|              | May 31, 2009          | $0.01    | $0.01        
|              | August
      31, 2009 | $0.02    | $0.02        
|              | November 30, 2009     | $0.01    | $0.01        
|              |                       |          |              
|**BERLIN:**   |                       |          |              
|              | QUARTER ENDED         | HIGH BID | LOW
      BID
|              |                       |          |              
|              | November 30, 2007     | $0.09    | $0.07        
|              | February 29, 2008     | $0.04    | $0.04        
|              | May
      31, 2008    | $0.03    | $0.03        
|              | August 31, 2008       | $0.02    | $0.02        
|              | November 30, 2008     | $0.01    | $0.01        
|              | February 29, 2009     | $0.01    | $0.01        
|              | May
      31, 2009    | $0.01    | $0.01        
|              | August 31, 2009       | $0.01    | $0.01        
|              | November 30, 2009     | $0.01    | $0.01        
|              |                       |          |              
|**FRANKFURT** |                       |          |              
|              | QUARTER ENDED         | HIGH BID | LOW BID      
|              |                       |          |              
|              | November 30, 2007     | $0.07    | $0.05        
|              | February 29, 2008     | $0.05    | $0.05        
|              | May 31, 2008          | $0.03    | $0.03        
|              | August
      31, 2008 | $0.02    | $0.01        
|              | November 30, 2008     | $0.01    | $0.01        

60

---

| | February 29, 2009     | $0.01 | $0.01
| | --------------------- | ----- | -----
| | May 31, 2009          | $0.01 | $0.01
| | August
      31, 2009 | $0.01 | $0.01
| | November 30, 2009     | $0.01 | $0.01

The source of the high and low bid information is:
http://ca.finance.yahoo.com. The market quotations provided reflect inter-dealer
prices, without retail mark-up, markdown or commission and may not represent
actual transactions.

Holders

As at March 10, 2010, we had 1,661,369,045 common shares issued
and outstanding that were held by approximately 980 registered holders. We
believe that there are in excess of 4,000 beneficial owners of our common stock.

Our transfer agent is Computershare Trust Company of Canada
whose address is 510 Burrard Street, Vancouver, British Columbia, Canada, V6C
3A8

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 under equity compensation plans through November
30, 2009, the end of our most recently completed fiscal year.

Equity Compensation Plan Information

|                                                               |                                               |        | Number of        |  |     | Weighted         |  |     | Number of     | 
|-------------------------------------------------------------- | --------------------------------------------- | ------ | ---------------- |  | --- | ---------------- |  | --- | ------------- | 
|                                                               |                                               |        | securities to be |  |     | average exercise |  |     | securities    | 
|                                                               |                                               |        | issued upon      |  |     | price of         |  |     | available for | 
|                                                               |                                               |        | exercise of      |  |     | outstanding      |  |     | future plan   | 
|                                                               |                                               |        | outstanding      |  |     | options,         |  |     | issuance      | 
|                                                               |                                               |        | options,         |  |     | warrants, and    |  |     |               | 
|                                                               |                                               |        | warrants, and    |  |     | rights           |  |     |               | 
|Plan
    Category                                              |                                               | rights |                  |  |     |                  |  |     |              
|                                                               |                                               |        |                  |  |     |                  |  |     |               | 
|Equity compensation plans
    approved by security holders     |                                               | N/A    |                  |  | N/A |                  |  | N/A |              
|Equity compensation plans not approved by
    security holders |                                               |        |                  |  |     |                  |  |     |              
|                                                               |                                               |        |                  |  |     |                  |  |     |               | 
|                                                               | 2009-II Equity
      Compensation Plan        |        | N/A              |  |     | N/A              |  |     | N/A           | 
|                                                               | 2009 Equity
      Compensation Plan           |        | N/A              |  |     | N/A              |  |     | N/A           | 
|                                                               | 2007-I Equity Compensation
      Plan         |        | N/A              |  |     | N/A              |  |     | N/A           | 
|                                                               | 2007
      Stock Option Plan                  |        | 14,300,000       |  |     | $ 0.07           |  |     | N/A           | 
|                                                               | Equity Compensation Plans
      Prior to 2007 |        | 33,900,000       |  |     | $ 0.05           |  |     | N/A           | 

On June 1, 2009, our Board of Directors adopted the 2009-II
Equity Compensation Plan (the 2009-II Plan) to encourage certain directors,
officers, employees, and consultants of the Company to acquire and hold stock in
the Company as an added incentive to remain with the Company, to increase their
efforts in promoting the interests of the Company and to enable the Company to
attract and retain capable individuals. The number of shares issued
under the Plan may not exceed 80,000,000 in aggregate. The 2009-II Plan is
administered by a Committee and the committee made up of at least three members
of the Board of Directors. Such Committee consists of at least two non-employee
Directors (the Committee). On June 1, 2009, the Company filed a registration
statement on Form S-8 to register all 80,000,000 of such shares. During the
fiscal year ended November 30, 2009, all 80,000,000 of such shares were issued
to various consultants for consulting and other services.

61

---

On January 29, 2009, our Board of Directors adopted the 2009
Equity Compensation Plan (the 2009 Plan) to encourage certain directors,
officers, employees, and consultants of the Company to acquire and hold stock in
the Company as an added incentive to remain with the Company, to increase their
efforts in promoting the interests of the Company and to enable the Company to
attract and retain capable individuals. The number of shares issued under the
Plan may not exceed 130,000,000 in aggregate. The 2009 Plan is administered by
the Committee. On January 29, 2009, the Company filed a registration statement
on Form S-8 to register all 130,000,000 of such shares. During the fiscal year
ended November 30, 2009, all 130,000,000 of such shares were issued to various
consultants for consulting and other services.

During the fiscal year ended November 30, 2009, there were no
stock options granted under any equity compensation plans. Pursuant to several
consulting and other agreements, the Company issued an aggregate of 213,319,102
shares of the Companys common stock under equity compensation plans in payment
of consulting fees and other expenses, valued at the fair market price on the
effective dates of the consulting agreements or based on the terms of the
agreements.

No equity compensation plan was adopted and no options were
granted under any equity compensation plan by the Company during the fiscal year
ended November 30, 2008. However, during fiscal year 2008, the Company issued an
aggregate of 32,800,000 shares of the Companys common stock in payment of
consulting fees under the equity compensation plans which were adopted prior to
fiscal year 2008.

Recent Sales of Unregistered Securities

We have not sold any unregistered equity securities during the
period covered by this report, other than those previously reported in Quarterly
Reports on Form 10-Q or Current Reports on Form 8-K filed with the Securities
and Exchange Commission.

ITEM 6. SELECTED FINANCIAL DATA

Not applicable.

62

---

ITEM 7. MANAGEMENT'S DISCUSSION AND ANALYSIS OF
FINANCIAL CONDITION AND RESULTS OF OPERATIONS

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

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

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

FORWARD-LOOKING STATEMENTS

The information in this MD&A contains forward-looking
statements with respect to the Companys activities and future financial
results, which are made based upon managements current expectations and
beliefs. These forward-looking statements involve risks and
uncertainties, including statements regarding Silverados capital needs,
business plans and expectations. Forward-looking statements are made, without
limitation, in relation to operating plans, property exploration and gold
recovery activities, availability of funds, environmental reclamation, operating
costs and permit acquisition. Any statements contained herein that are not
statements of historical facts may be deemed to be forward-looking statements.
There can be no assurance that future developments affecting the Company will be
those anticipated by management. Actual events or results may differ materially
from any forward-looking statement. Management disclaims any obligation to
publicly update these statements, or disclose any difference between its actual
results and those reflected in these statements. Given these uncertainties,
readers are cautioned not to place undue reliance on such forward-looking
statements.

OVERVIEW

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

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

The Company has also been working on the development of LRCWF,
a non-toxic liquid fuel product derived from sub-bituminous and lignite coal. In
its finished form, the fuel would be a non-toxic, non-hazardous environmentally
friendly strategic (liquid) fuel. 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.

LIQUIDITY AND CAPTIAL RESOURCES

Our current ratio (current assets divided by current
liabilities) as of November 30, 2009 was 0.37 as compared to 0.27 as of November
30, 2008. This ratio is commonly used as a measure of a companys liquidity. We
look at actual dollars in analyzing our liquidity. Since the Companys cash
inflow has been generated mainly from sales of shares of the Companys common
stock, gold sale proceeds earned during the exploration stage, debentures and
loans, it will be very difficult for the Company to meet the current and
anticipated obligations without raising additional capital. If we are not able
to raise adequate capital and to do so in a timely manner, we will not be able
to fully implement our business plan or sustain ongoing operations.

63

---

As of November 30, 2009, the Company had a working capital
deficit of $1,272,000 as compared to a working capital deficit of $1,294,000 as
of November 30, 2008. The Company had no cash and cash equivalents on hand as of
November 30, 2009 as compared to cash and cash equivalents of $50,991 as of
November 30, 2008. The Companys total assets for such periods were $3,145,000
(November 30, 2008: $3,314,000) and the total current assets were $745,000
(November 30, 2008: $484,000).

As of November 30, 2009, the Companys current assets consist
of $6,316 (November 30, 2008: $50,106) in gold inventory and $738,473 (November
30, 2008: $383,358) in prepaid and other receivables. Included in prepaid and
other receivables were non-cash prepaid consulting and other fees of $716,865
(November 30, 2008: $333,500) paid through issuances of the Companys common
stock under the Companys equity compensation plans.

The majority of the Companys assets are long-term or non-cash
in nature and thus considered being of lower liquidity.

The Companys mineral rights were valued at $1,399,000 as of
November 30, 2009 as compared to $1,198,000 as of November 30, 2008, an increase
of approximately $201,000 or 17%. The increase in the value of our mineral
rights this past year is directly attributable to $116,000 in paid claim fees,
$5,000 in paid royalty payments and $80,000 in accrued royalty payments. The net
book value of our fixed assets was $1,002,000 as of November 30, 2009 as
compared to $1,632,000 as of November 30, 2008, a decrease of approximately
$630,000 or 39%. The decrease in the net book value of our fixed assets was
mainly due to $216,000 of depreciation, $12,000 of impairment and $402,000 of
mining equipment disposals.

The current liabilities as of November 30, 2009 totaled
$2,016,000 as compared to $1,778,000 as of November 30, 2008, an increase of
approximately $238,000 or 13%. Included in current liabilities are $1,064,000
(2008: $1,077,000) due to related parties, which has been classified as
financing activities in the Companys cash flow statements, and $883,000 (2008:
$561,000) of accounts payable and accrued liabilities.

The Company has not yet generated revenues since recommencement
of the exploration stage on December 1, 2001 and our cash was primarily
generated from the sale of our securities. During the fiscal year ended November
30, 2009, the Company raised $2,047,000 of net proceeds through completed
private placements and received $100,000 through uncompleted private placement
subscriptions. In addition, the Company received $237,000 as a result of mining
equipment disposals and $52,000 as a result of gold inventory sales. During the
fiscal year ended November 30, 2008, the Company raised $4,028,000 of net
proceeds through completed private placements.

During the fiscal year ended November 30, 2009, the Company
spent $121,000 (2008: $155,000) on mineral rights and $869,000 (2008: 2,287,000)
on the mineral exploration and drilling program. In addition, the Company has
spent $1,503,000 (2008: 2,489,000) on other operating activities. The Company
has been reviewing its budgets for its current business needs and its further
exploration and early stage production at its Nolan Creek property in Alaska.
Our plan of mining operations in Alaska anticipates that we will need to raise
and expend approximately $10,560,000 during fiscal year 2010. We will also need
to raise and spend approximately $3,000,000 on general and administrative costs
during fiscal year 2010.

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

SEGEMENT INFORMATION

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

64

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|As of November 30, 2009                    |   | Canada    |  |   | United States |  |   | Total     | 
|------------------------------------------ | - | --------- |  | - | ------------- |  | - | --------- | 
|Current assets                             | $ | 720,088   |  | $ | 24,701        |  | $ | 744,789   | 
|Mineral rights                             |   | -         |  |   | 1,398,601     |  |   | 1,398,601 | 
|Property, plant
      and equipment, net   |   | 423,121   |  |   | 578,888       |  |   | 1,002,009 | 
|Total assets, as of November 30, 2009      | $ | 1,143,209 |  | $ | 2,002,190     |  | $ | 3,145,399 | 
|                                           |   |           |  |   |               |  |   |           | 
|As of November 30, 2008                    |   |           |  |   |               |  |   |           | 
|Current assets                             | $ | 434,102   |  | $ | 50,353        |  | $ | 484,455   | 
|Mineral rights                             |   | -         |  |   | 1,197,591     |  |   | 1,197,591 | 
|Property, plant
      and equipment, net   |   | 526,118   |  |   | 1,105,706     |  |   | 1,631,824 | 
|Total assets, as of November 30, 2008      | $ | 960,220   |  | $ | 2,353,650     |  | $ | 3,313,870 | 
|                                           |   |           |  |   |               |  |   |           | 
|For the Year Ended November 30, 2009       |   |           |  |   |               |  |   |           | 
|Total
      comprehensive loss             | $ | 5,297,837 |  | $ | 1,462,929     |  | $ | 6,760,766 | 
|                                           |   |           |  |   |               |  |   |           | 
|For the Year Ended
      November 30, 2008 |   |           |  |   |               |  |   |           | 
|Total comprehensive loss                   | $ | 3,797,978 |  | $ | 4,685,128     |  | $ | 8,483,106 | 

SUMMARY OF MINERAL EXPLORATION PROGRAM AND PLAN OF
OPERATION

The Nolan Lode Antimony and Gold Project has been the focus of
the Companys exploration strategy since 2007 and will be the focus again in
2010. Although a lack of sufficient capital did not allow for the permitted
1,000 cubic yard bulk sample under Workmans Bench, the Company did manage to
increase the resources significantly for both the Workmans and Pringle Bench
lode deposits during the summer and fall drill program. Although the increased
resources are not mineral reserves which demonstrate economic viability, they
none the less are part of the same mineralized structure (A Zone) but will
require additional drilling before a potential upgrade to reserve classification
can be determined.

The most significant result of the 2009 exploration program
relative to 2008 is that the two main northeast trending antimony-gold
vein-fault zones that are found at Workmans and Pringle Bench have been
confirmed by the QP as being part of the same continuous structure. The
acquisition of a larger core drilling rig in 2010 will allow for subsurface
testing in the area between Pringle and Workmans Benches which could
potentially delineate a resource that is contiguous for over a half mile and
open on both ends and at depth. In addition, 2009 confirmed that the
antimony-gold mineralization is evident at depths to 300 feet below the previous
investigations at Pringle Bench and the grade and tonnages of antimony and gold
combined could be comparable if not better with depth at both prospects.

During 2009 there was no additional drilling within the current
probable reserve block at Workmans Bench and therefore there have been no
changes to the probable mineral reserve which amounts to 42,412 tons grading 28%
antimony, and 0.408 ounces/ton gold. Through the end of 2008, the Workmans and
Pringle Bench gold and antimony deposits contained a total inferred resource
amounting to 24,077 tons grading 12.45% antimony and 0.245 ounces/ton gold (for
both estimates, see January 1, 2009 NI-43-101 Technical Report for Nolan Creek
which was amended June 1, 2009). During 2009, drilling at Workmans Bench and
Pringle Bench resulted in an increase of inferred mineral resources from the
2008 total listed above to a total of 34,206 tons grading 14.92% antimony and
0.357 ounces/ton gold. In addition, an indicated resource was defined at
Workmans Bench in an area vertically above the current reserve block which
totaled 12,039 tons grading 20.02% antimony and 0.236 ounces/ton gold.

For more detailed information and comparison, readers should
refer to the sections under Item 1 above which include Exploration Work
Summaries for 2008 and 2009 for the Nolan Lode Gold and Antimony Project
(sections 1.5.2 and 1.5.3 respectively). The mineral estimates of inferred and
indicated resources, listed in Item 2 above, have increased significantly as
compared to 2008 figures. While the probable mineral reserve under Workmans
Bench has not changed since the last fiscal year, the increase in the price of
gold and antimony has currently increased the value of the mineral reserve
significantly. Our plan of operation for the next twelve months is as follows:

(a) The Nolan Gold Project Plan of Operations

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

65

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

The plan of operation for the Nolan Gold Project for the 2010
fiscal year is the advancement toward the development and mining stage of our
Nolan Gold and Antimony Project, especially along the southwestern end of the
Solomon Shear Zone in the Workmans Bench Area. The Company is in a transitional
phase between exploration and development. The recent preliminary feasibility
study effective January 1, 2009, supported a mineral reserve of antimony and
gold underlying the southwestern portion of the Solomon Shear Zone, an area
referred to by the Company as Workmans Bench. The 2008 feasibility study by
Bundtzen concluded that the Nolan Gold and Antimony Project in the Workmans
Bench area is economically viable.

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

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

Much of the work planned for 2010 is seasonal dependent. During
the summer months we plan to use our diamond core drill for infill drilling for
additional reserve estimates and structural interpretation. We plan to drill a
minimum of 20 shallow (200 to 500 ft) NQ diamond core drill holes, as well 30
deeper holes (> 500 ft) into the Solomon Shear Zone. Also, many of the
formerly mentioned characterization studies will be continued through the summer
months. Depending on available capital, the Company plans the procurement of
necessary facility and system upgrades, as well as the acquisition of necessary
equipment and the construction of a pilot mill facility. Currently we have a
fully functioning all season enclosed 23 man camp with three functioning offices
with computers and internet access. The camp has a STW treatment plant for
sewage and graywater treatment. The camp site also has a large mechanics shop
for working on heavy equipment such as backhoes and bulldozers. The camp also
has multiple ADEC approved containments with tanks capable of storing 30,000
gallons of diesel fuel, and a peripheral explosives storage area. The camp also
has an abundance of heavy equipment for excavating and road maintenance.

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

Currently, the Companys engineers and geologists have designed
the subsurface routes for an access decline and egress routes for the extraction
of the bulk sample material, as well as located sites for temporary tailings
storage and additional layout sites and mill design.

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

66

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Our proposed drilling program for 2010 will be aimed at lode
gold and antimony exploration. Lode drilling will focus on Pringle Bench,
Workmans Bench and the Hillside along the Solomons Shear trend, and is
designed to provide a better three dimensional understanding of the mineralized
sections of the structure and how it is related to the placer gold deposits of
the Nolan Creek area. Since the Project is advancing into the development stage,
exploration drilling will not be conducted in the Fortress area which is part of
a gold bearing east-west trending deformation zone.

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.

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

If we can raise the necessary capital, we plan to spend up to
$10,000,000 in the next twelve months in carrying out our exploration,
permitting and development activities for the Nolan Gold Project. Of this
amount, $3,600,000 is projected for lode drilling on the Solomon Shear Zone. The
actual amount that we spend on exploration will depend on the actual amount of
funds that we have available for exploration. We are presently seeking to obtain
sufficient financing to enable us to proceed with these plans.

(b) Ester Dome Property

During 2010, we plan to move forward with the closure of the
Grant Mill Tailings Pond. This pond is filled to capacity, and will be capped
and decommissioned after a final approval of the tailings pond closure plan is
received from State of Alaska regulatory agencies. A meaningful exploration
program may be completed during the summer months to explore for and identify
small high-grade gold anomalies as well as larger low-grade gold anomalies.
Completing the 2010 exploration work plan will be contingent on available
funding.

(c) 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. This project will require additional funding. Even if funding is
acquired, there is no assurance that a commercial gold bearing placer deposit
will be developed. Even if a gold bearing deposit is developed, additional
funding will be required to mine the deposit, and until a feasibility study is
completed, there is no assurance that the deposit will be profitable to
mine.

(d) Eagle Creek Property

During 2010, 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.

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.

Low-Rank Coal-Water Fuel Project

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

67

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During the fiscal year ended November 30, 2008, we have spent
approximately $300,000 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.

RESULTS OF OPERATIONS  Fiscal Years Ended November
  30, 2009 and 2008

The Company has not generated revenues since recommencement of
the exploration stage from December 1, 2001 to November 30, 2009. For the fiscal
year ended November 30, 2009, we reported a net loss of $6,669,000, or $0.005
per share, compared to a net loss of $8,459,000, or $0.009 per share for the
fiscal year ended November 30, 2008, a decrease of approximately 21%.

During the fiscal year ended November 30, 2009, the Company
wrote off $261,000 of convertible debentures and accrued interest. $600,000 of
Tri-Con billings adjustments was recorded as a decrease of related party charges
in the consolidated statements of operations. In addition, the major decreases
in fiscal year 2009, as compared to the same period in 2008, were the Companys
exploration expenses by $1,418,000, its related party charges in excess of cost
by $1,210,000 (including $600,000 of billings adjustments), accounting and audit
fees by $211,000, promotion and travel expenses by $147,000, legal and other
professional fees by $263,000, office expenses by $495,000 and research expenses
by $295,000. These decreases were mainly due to cash limitations and the
development of a restructuring plan that the Company is working on to fund its
exploration and development activities.

The major increases included in the net loss for fiscal year
2009, as compared to the same period in 2008, were increases of $1,402,000 for
consulting fees, $87,500 for financing activities, $34,000 for transfer agent
and filing fees, $57,000 for loss on disposal of mining equipment and $960,000
for non-cash commitment fees paid through the Companys common stock. Such
increases were mainly due to the increased consulting requirements related to
the Companys efforts relating to restructuring, equity financing, development
and expansion. Included in $2,585,000 of consulting fees for the fiscal year
ended November 30, 2009 was $2,231,000 of non-cash consulting fees paid through
issuances of the Companys common stock.

RESULTS OF OPERATIONS  Three Months Ended November 30,
2009 and 2008

For the three months ended November 30, 2009, we had a net loss
of $1,378,000, or $0.001 per share, compared to a net loss of $2,038,000, or
$0.002 per share for the three months ended November 30, 2008. The major
decreases in the quarter, as compared to the same period in 2008, were the
Companys exploration expenses by $100,000, its related party charges in excess
of incurred cost by $125,000, legal and other professional fees by $203,000,
management fees by $78,000, and office expenses by $91,000. These decreases were
mainly due to cash limitations and the development of a restructuring plan that
the Company is working on to fund its exploration and development
activities.

The major increases included in the net loss for the fiscal
quarter ended November 30, 2009, as compared to the same period in 2008, were
$39,000 of consulting fees, $31,000 of reporting and investor relations and
$87,500 of financing fees. Such increases were mainly due to the increased
consulting and financing requirements related to the Companys efforts in
connection with restructuring, equity financing, development and expansion.
$375,439 of consulting fees for the three months ended November 30, 2009 were
non-cash consulting fees paid through issuances of the Companys common
stock.

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

RELATED PARTY TRANSACTIONS

The details of related party transactions are disclosed in
footnote 10 of the Companys audited consolidated financial statements for the
fiscal year ended November 30, 2009 (Item 8, below).

CRITICAL ACCOUNTING POLICIES

The details of our critical accounting policies are disclosed
in footnote 2 of the Companys audited consolidated financial statements for the
fiscal year ended November 30, 2009 (Item 8, below).

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.

68

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ITEM 7A. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT
MARKET RISK

Not applicable.







69

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ITEM 8. FINANCIAL STATEMENTS AND SUPPLEMENTARY
DATA.

Our audited financial statements for the year ended November
30, 2009, as set forth below, are included with this Annual Report on Form 10-K.
Our audited financial statements are prepared on the basis of accounting
principles generally accepted in the United States and pursuant to Regulation
S-X as promulgated by the SEC and are expressed in U.S. dollars.

|                                                                                                                                                                                                                                                | Page       
|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | -----------
|                                                                                                                                                                                                                                                |            
|Report of Independent Registered Public Accounting Firm                                                                                                                                                                                         | F-1        
|                                                                                                                                                                                                                                                |            
|Consolidated Balance Sheets as of November 30, 2009
      and 2008                                                                                                                                                                              | F-2        
|                                                                                                                                                                                                                                                |            
|Consolidated Statements of Operations and other Comprehensive
      Gain (Loss) for the Years Ended November 30, 2009 and 2008 and for
      the period since Recommencement of Exploration Stage, December 1, 2001,
      to November 30, 2009 | F-3        
|                                                                                                                                                                                                                                                |            
|Consolidated Statement of Stockholders Equity
      for the years from Recommencement of Exploration Stage, December
      1, 2001, to November 30, 2009                                                                                       | F-4 to F-6 
|                                                                                                                                                                                                                                                |            
|Consolidated Statements of Cash Flows for the Years
      Ended November 30, 2009 and 2008 and for the period since Recommencement
      of Exploration Stage, December 1, 2001, to November 30, 2009                                           | F-7        
|                                                                                                                                                                                                                                                |            
|Notes to Consolidated Financial Statements                                                                                                                                                                                                      | F-8 to F-32

70

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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) (the "Company") as of November 30, 2009 and 2008, and the related consolidated statements of operations and other comprehensive gain (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 gain (loss), stockholders' equity, and cash flows for the period since recommencement of the exploration stage from December 1, 2001 to November 30, 2009 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, 2009 and 2008, 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.

The accompanying financial statements have been prepared assuming that the Company will continue as a going concern.  As discussed in Note 1 to the financial statements, the Company's dependence on outside financing, lack of sufficient working capital, and recurring losses from activities in the exploration stage raises substantial doubt about its ability to continue as a going concern. The financial statements do not include any adjustments that might result from the outcome of this uncertainty.

/s/ Mallah Furman


Fort Lauderdale, Florida

March 4, 2010

F - 1

---

SILVERADO GOLD MINES LTD. AND ITS SUBSIDIARIES(An
Exploration Stage Company) CONSOLIDATED BALANCE SHEETS November 30, 2009
and 2008(Stated in United States Dollars)

|                                                   |   | 2009         |   |   | 2008        |  
|-------------------------------------------------- | - | ------------ | - | - | ----------- | -
|ASSETS                                             |   |              |   |   |             |  
|Current Assets                                     |   |              |   |   |             |  
|Cash and cash
      equivalents                    | $ | -            |   | $ | 50,991      |  
|Gold inventory                                     |   | 6,316        |   |   | 50,106      |  
|Prepaid and
      other receivables                |   | 738,473      |   |   | 383,358     |  
|Total Current Assets                               |   | 744,789      |   |   | 484,455     |  
|Mineral rights                                     |   | 1,398,601    |   |   | 1,197,591   |  
|Property, plant and equipment, net                 |   | 1,002,009    |   |   | 1,631,824   |  
|TOTAL ASSETS                                       | $ | 3,145,399    |   | $ | 3,313,870   |  
|LIABILITIES                                        |   |              |   |   |             |  
|Current Liabilities                                |   |              |   |   |             |  
|Accounts payable and accrued
      liabilities     | $ | 882,768      |   | $ | 561,460     |  
|Due to related
      parties                       |   | 1,064,046    |   |   | 1,076,881   |  
|Convertible debt instruments                       |   | 69,760       |   |   | 140,000     |  
|Total Current Liabilities                          |   | 2,016,574    |   |   | 1,778,341   |  
|Asset retirement obligation                        |   | 540,407      |   |   | 537,258     |  
|Mineral claims royalty payable                     |   | 470,000      |   |   | 390,000     |  
|Total Liabilities                                  |   | 3,026,981    |   |   | 2,705,599   |  
|STOCKHOLDERS' EQUITY                               |   |              |   |   |             |  
|Common stock                                       |   |              |   |   |             |  
|Authorized:                                        |   |              |   |   |             |  
|unlimited
      common shares with no par value    |   |              |   |   |             |  
|Issued and
      outstanding:                      |   |              |   |   |             |  
|1,577,667,073 common shares (2008: 977,437,101)    |   | 100,883,269  |   |   | 94,718,072  |  
|Additional paid-in capital                         |   | 1,206,124    |   |   | 1,200,408   |  
|Subscriptions received                             |   | 100,000      |   |   | -           |  
|Accumulated deficit during exploration
      stage |   | (102,070,975 | ) |   | (95,310,209 | )
|Total Stockholders' Equity                         |   | 118,418      |   |   | 608,271     |  
|TOTAL LIABILITIES AND STOCKHOLDERS'
      EQUITY   | $ | 3,145,399    |   | $ | 3,313,870   |  

THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL
STATEMENTS

F - 2

---

SILVERADO GOLD MINES LTD. AND ITS SUBSIDIARIES(An
Exploration Stage Company) CONSOLIDATED STATEMENTS OF OPERATIONS AND OTHER
COMPREHENSIVE GAIN (LOSS)for the years ended November 30, 2009 and
2008(Stated in United States Dollars)

|                                                                                                                                   |   |               |   |   |             |   |   | Period Since           |  
|---------------------------------------------------------------------------------------------------------------------------------- | - | ------------- | - | - | ----------- | - | - | ---------------------- | -
|                                                                                                                                   |   |               |   |   |             |   |   | Recommencement of      |  
|                                                                                                                                   |   |               |   |   |             |   |   | Exploration Stage from |  
|                                                                                                                                   |   |               |   |   |             |   |   | December 1, 2001 to    |  
|                                                                                                                                   |   | 2009          |   |   | 2008        |   |   | November 30, 2009      |  
|General and administrative
      expenses                                                                                          |   |               |   |   |             |   |   |                        |  
|Accounting and audit                                                                                                               | $ | 116,924       |   | $ | 328,263     |   | $ | 835,122                |  
|Advertising,
      promotion and travel                                                                                            |   | 65,313        |   |   | 212,275     |   |   | 3,010,603              |  
|Consulting fees                                                                                                                    |   | 2,584,698     |   |   | 1,183,131   |   |   | 10,531,688             |  
|Depreciation,
      accretion and impairment                                                                                       |   | 216,083       |   |   | 334,221     |   |   | 2,775,815              |  
|Exploration expenses                                                                                                               |   | 868,940       |   |   | 2,287,192   |   |   | 15,583,747             |  
|Financing
      activities                                                                                                         |   | 87,500        |   |   | -           |   |   | 389,503                |  
|Legal and other professional
      fees                                                                                            |   | 296,062       |   |   | 558,670     |   |   | 1,566,147              |  
|Management
      services                                                                                                          |   | 779,751       |   |   | 854,529     |   |   | 6,398,987              |  
|Office expenses                                                                                                                    |   | 342,340       |   |   | 837,488     |   |   | 4,949,938              |  
|Related
      party charges in excess of costs incurred
                (net of
      $600,000 of current year billing adjustment) |   | (32,780       | ) |   | 1,176,926   |   |   | 4,911,088              |  
|Reporting and investor relations                                                                                                   |   | 360,229       |   |   | 442,732     |   |   | 1,343,351              |  
|Research                                                                                                                           |   | -             |   |   | 295,045     |   |   | 1,064,735              |  
|Transfer agent and filing fees                                                                                                     |   | 101,041       |   |   | 67,310      |   |   | 379,831                |  
|Write-off of
      mineral claim expenditures                                                                                      |   | -             |   |   | -           |   |   | 1,159,529              |  
|Write-down of property, plant
      and equipment                                                                                  |   | 12,254        |   |   | 31,550      |   |   | 329,679                |  
|Total expenses                                                                                                                     |   | 5,798,355     |   |   | 8,609,332   |   |   | 55,229,763             |  
|Loss from operations                                                                                                               |   | (5,798,355    | ) |   | (8,609,332  | ) |   | (55,229,763            | )
|Gold income earned during
      the exploration stage                                                                              |   |               |   |   |             |   |   |                        |  
|Gold sale proceeds earned during
      the exploration stage                                                                       |   | 52,450        |   |   | 2,200,547   |   |   | 3,714,310              |  
|Cost of gold
      sold                                                                                                            |   | (43,790       | ) |   | (1,919,764  | ) |   | (3,250,373             | )
|Gold inventory addition from
      gold extraction                                                                                 |   | -             |   |   | -           |   |   | 3,248,056              |  
|Total gold income earned
      during the exploration stage                                                                        |   | 8,660         |   |   | 280,783     |   |   | 3,711,993              |  
|Other income (expenses)                                                                                                            |   |               |   |   |             |   |   |                        |  
|Interest and
      other income                                                                                                    |   | 183           |   |   | 21,139      |   |   | 277,990                |  
|Interest expenses on capital
      lease obligations                                                                               |   | -             |   |   | (15,927     | ) |   | (333,221               | )
|Interest
      expenses on convertible debentures                                                                                  |   | (476          | ) |   | (11,200     | ) |   | (707,483               | )
|Other interest expenses and bank
      charges                                                                                     |   | (12,101       | ) |   | (12,636     | ) |   | (72,209                | )
|Commitment fees                                                                                                                    |   | (960,000      | ) |   | -           |   |   | (960,000               | )
|Loss on disposal of property,
      plant and equipment                                                                            |   | (168,146      | ) |   | (111,383    | ) |   | (279,529               | )
|Write-off of
      convertible debentures and accrued interests                                                                    |   | 260,827       |   |   | -           |   |   | 260,827                |  
|Total other expenses                                                                                                               |   | (879,713      | ) |   | (130,007    | ) |   | (1,813,625             | )
|Net loss before cumulative
      effect of accounting change                                                                       |   | (6,669,408    | ) |   | (8,458,556  | ) |   | (53,331,395            | )
|Cumulative effect of accounting
      change                                                                                       |   | -             |   |   | -           |   |   | (99,481                | )
|Net loss                                                                                                                           |   | (6,669,408    | ) |   | (8,458,556  | ) |   | (53,430,876            | )
|Other comprehensive income (loss)                                                                                                  |   |               |   |   |             |   |   |                        |  
|(Loss) / Gain on
      foreign exchange                                                                                            |   | (91,358       | ) |   | (24,550     | ) |   | 264,845                |  
|Comprehensive loss for the period                                                                                                  | $ | (6,760,766    | ) | $ | (8,483,106  | ) | $ | (53,166,031            | )
|Net loss per share                                                                                                                 | $ | (0.005        | ) | $ | (0.009      | ) |   |                        |  
|Basic and diluted weighted average
      number of common shares outstanding                                                       |   | 1,274,217,440 |   |   | 913,263,595 |   |   |                        |  

THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL
STATEMENTS

F - 3

---

SILVERADO GOLD MINES LTD. AND ITS SUBSIDIARIES(An
Exploration Stage Company) CONSOLIDATED STATEMENT OF STOCKHOLDERS
EQUITYfor the years from December 1, 2001 to November 30, 2009(Stated
in United States Dollars)

|                                                      |  |             |  |   |            |  |   |             |   |   |            |  |   |              |   |   | Accumulated    |   |   |            |  
|----------------------------------------------------- |  | ----------- |  | - | ---------- |  | - | ----------- | - | - | ---------- |  | - | ------------ | - | - | -------------- | - | - | ---------- | -
|                                                      |  | Number of   |  |   | Common     |  |   | Common      |   |   | Additional |  |   |              |   |   | Deficit during |   |   |            |  
|                                                      |  | Common      |  |   | Shares -   |  |   | Stock to be |   |   | Paid in    |  |   | Deferred     |   |   | Development    |   |   |            |  
|                                                      |  | 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 cash:                               |  |             |  |   |            |  |   |             |   |   |            |  |   |              |   |   |                |   |   |            |  
|Private placement, net
      of commission            |  | 20,775,000  |  |   | 2,922,000  |  |   | -           |   |   | -          |  |   | -            |   |   | -              |   |   | 2,922,000  |  
|Warrants exercised                                    |  | 16,250,000  |  |   | 1,970,000  |  |   | -           |   |   | -          |  |   | -            |   |   | -              |   |   | 1,970,000  |  
|Options exercised                                     |  | 6,900,000   |  |   | 925,000    |  |   | -           |   |   | -          |  |   | -            |   |   | -              |   |   | 925,000    |  
|Shares issued for non-cash items:                     |  |             |  |   |            |  |   |             |   |   |            |  |   |              |   |   |                |   |   |            |  
|Shares issued in lieu
      of payment for debentures |  | 6,944,308   |  |   | 1,465,927  |  |   | -           |   |   | -          |  |   | -            |   |   | -              |   |   | 1,465,927  |  
|Shares issued for consulting fees                     |  | 4,793,335   |  |   | 1,232,551  |  |   | -           |   |   | -          |  |   | -            |   |   | -              |   |   | 1,232,551  |  
|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 cash:                               |  |             |  |   |            |  |   |             |   |   |            |  |   |              |   |   |                |   |   |            |  
|Private placement, net of commission                  |  | 24,651,340  |  |   | 5,327,245  |  |   | -           |   |   | -          |  |   | -            |   |   | -              |   |   | 5,327,245  |  
|Warrants exercised                                    |  | 15,278,171  |  |   | 1,344,575  |  |   | -           |   |   | -          |  |   | -            |   |   | -              |   |   | 1,344,575  |  
|Options exercised                                     |  | 200,000     |  |   | 70,000     |  |   | -           |   |   | -          |  |   | -            |   |   | -              |   |   | 70,000     |  
|Shares issued for non-cash items:                     |  |             |  |   |            |  |   |             |   |   |            |  |   |              |   |   |                |   |   |            |  
|Shares issued in lieu of payment for
      debentures |  | 5,299,542   |  |   | 1,198,467  |  |   | -           |   |   | -          |  |   | -            |   |   | -              |   |   | 1,198,467  |  
|Shares issued for
      consulting fees               |  | 2,511,668   |  |   | 554,085    |  |   | (268,613    | ) |   | -          |  |   | -            |   |   | -              |   |   | 285,472    |  
|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 cash:                               |  |             |  |   |            |  |   |             |   |   |            |  |   |              |   |   |                |   |   |            |  
|Private placement, net of commission                  |  | 55,114,441  |  |   | 2,564,899  |  |   | (115,000    | ) |   | -          |  |   | -            |   |   | -              |   |   | 2,449,899  |  
|Warrants exercised                                    |  | 14,876,597  |  |   | 845,745    |  |   | -           |   |   | -          |  |   | -            |   |   | -              |   |   | 845,745    |  
|Shares issued for non-cash items:                     |  |             |  |   |            |  |   |             |   |   |            |  |   |              |   |   |                |   |   |            |  
|Shares issued in lieu
      of payment for debentures |  | 2,014,530   |  |   | 200,023    |  |   | -           |   |   | -          |  |   | -            |   |   | -              |   |   | 200,023    |  
|Shares issued for consulting fees                     |  | 6,416,667   |  |   | 577,140    |  |   | -           |   |   | -          |  |   | -            |   |   | -              |   |   | 577,140    |  
|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                            |  | 224,449,587 |  |   | 68,253,942 |  |   | 70,000      |   |   | 466,314    |  |   | -            |   |   | (69,226,387    | ) |   | (436,131   | )
|Shares issued for cash:                               |  |             |  |   |            |  |   |             |   |   |            |  |   |              |   |   |                |   |   |            |  
|Private placement, net
      of commission            |  | 120,219,687 |  |   | 2,735,893  |  |   | (70,000     | ) |   | -          |  |   | -            |   |   | -              |   |   | 2,665,893  |  
|Shares issued for non-cash items:                     |  |             |  |   |            |  |   |             |   |   |            |  |   |              |   |   |                |   |   |            |  
|Shares issued for
      consulting fees               |  | 6,285,000   |  |   | 284,900    |  |   | -           |   |   | -          |  |   | -            |   |   | -              |   |   | 284,900    |  
|Stock -based compensation                             |  | 4,100,001   |  |   | 252,003    |  |   | -           |   |   | -          |  |   | -            |   |   | -              |   |   | 252,003    |  
|Subscriptions received                                |  | -           |  |   | -          |  |   | 54,500      |   |   | -          |  |   | -            |   |   | -              |   |   | 54,500     |  
|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   | )
|Cumulative effect of accounting change,               |  |             |  |   |            |  |   |             |   |   |            |  |   |              |   |   |                |   |   |            |  
|net of income taxes                                   |  |             |  |   |            |  |   |             |   |   |            |  |   |              |   |   |                |   |   |            |  
|Shares issued for cash:                               |  | -           |  |   | -          |  |   | -           |   |   | -          |  |   | -            |   |   | 272,867        |   |   | 272,867    |  
|Private placement, net
      of commission            |  | 238,285,057 |  |   | 8,690,554  |  |   | (23,000     | ) |   | -          |  |   | -            |   |   | -              |   |   | 8,667,554  |  
|Warrants exercised                                    |  | 31,370,720  |  |   | 1,554,056  |  |   | (31,500     | ) |   | -          |  |   | -            |   |   | -              |   |   | 1,522,556  |  
|Shares issued for non-cash items:                     |  |             |  |   |            |  |   |             |   |   |            |  |   |              |   |   |                |   |   |            |  
|Shares issued for consulting fees                     |  | 6,075,000   |  |   | 767,250    |  |   | -           |   |   | -          |  |   | -            |   |   | -              |   |   | 767,250    |  
|Subscriptions received                                |  | -           |  |   | -          |  |   | 273,600     |   |   | -          |  |   | -            |   |   | -              |   |   | 273,600    |  
|Net loss for the year                                 |  | -           |  |   | -          |  |   | -           |   |   | -          |  |   | -            |   |   | (7,171,319     | ) |   | (7,171,319 | )
|Balance, November 30, 2006                            |  | 630,785,052 |  |   | 82,538,598 |  |   | 273,600     |   |   | 466,314    |  |   | -            |   |   | (79,518,946    | ) |   | 3,759,566  |  
|Shares issued for cash:                               |  |             |  |   |            |  |   |             |   |   |            |  |   |              |   |   |                |   |   |            |  
|Private placement, net
      of commission            |  | 63,866,669  |  |   | 1,656,042  |  |   | -           |   |   | -          |  |   | -            |   |   | -              |   |   | 1,656,042  |  
|Warrants exercised                                    |  | 65,754,387  |  |   | 3,429,586  |  |   | -           |   |   | -          |  |   | -            |   |   | -              |   |   | 3,429,586  |  
|Options exercised                                     |  | 12,680,000  |  |   | 642,000    |  |   | -           |   |   | -          |  |   | -            |   |   | -              |   |   | 642,000    |  
|Shares issued for non-cash items:                     |  |             |  |   |            |  |   |             |   |   |            |  |   |              |   |   |                |   |   |            |  
|Shares issued for
      consulting fees               |  | 12,521,609  |  |   | 1,108,415  |  |   | (273,600    | ) |   | -          |  |   | -            |   |   | -              |   |   | 834,815    |  
|Subscriptions received                                |  | -           |  |   | -          |  |   | 275,136     |   |   | -          |  |   | -            |   |   | -              |   |   | 275,136    |  
|Stock-based compensation                              |  | -           |  |   | -          |  |   | -           |   |   | 734,094    |  |   | -            |   |   | -              |   |   | 734,094    |  
|Net loss for the year                                 |  | -           |  |   | -          |  |   | -           |   |   | -          |  |   | -            |   |   | (7,308,157     | ) |   | (7,308,157 | )
|Balance, November 30, 2007                            |  | 785,607,717 |  | $ | 89,374,641 |  | $ | 275,136     |   | $ | 1,200,408  |  | $ | -            |   | $ | (86,827,103    | ) | $ | 4,023,082  |  

THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL
STATEMENTS

F - 4

---

SILVERADO GOLD MINES LTD. AND ITS SUBSIDIARIES(An
Exploration Stage Company) CONSOLIDATED STATEMENT OF STOCKHOLDERS
EQUITYfor the years from December 1, 2001 to November 30, 2009(Stated
in United States Dollars)

|                                            |  |             |  |   |            |   |   |             |   |   |            |  |   |              |  |   | Accumulated    |   |   |            |  
|------------------------------------------- |  | ----------- |  | - | ---------- | - | - | ----------- | - | - | ---------- |  | - | ------------ |  | - | -------------- | - | - | ---------- | -
|                                            |  | Number of   |  |   | Common     |   |   | Common      |   |   | Additional |  |   |              |  |   | Deficit during |   |   |            |  
|                                            |  | Common      |  |   | Shares -   |   |   | Stock to be |   |   | Paid in    |  |   | Deferred     |  |   | Exploration    |   |   |            |  
|                                            |  | Shares      |  |   | Amount     |   |   | Issued      |   |   | Capital    |  |   | Compensation |  |   | Stage          |   |   | Total      |  
|Balance, November 30,
      2007            |  | 785,607,717 |  | $ | 89,374,641 |   | $ | 275,136     |   | $ | 1,200,408  |  | $ | -            |  | $ | (86,827,103    | ) | $ | 4,023,082  |  
|Shares Issued                               |  |             |  |   |            |   |   |             |   |   |            |  |   |              |  |   |                |   |   |            |  
|For Private Placements                      |  |             |  |   |            |   |   |             |   |   |            |  |   |              |  |   |                |   |   |            |  
|December 31, 2007 @ $0.03 per share         |  | 13,000,000  |  |   | 390,000    |   |   | -           |   |   | -          |  |   | -            |  |   | -              |   |   | 390,000    |  
|January 11, 2008 @
      $0.03 per share    |  | 22,000,000  |  |   | 660,000    |   |   | -           |   |   | -          |  |   | -            |  |   | -              |   |   | 660,000    |  
|January 22, 2008 @ $0.0325 per share        |  | 461,538     |  |   | 15,000     |   |   | -           |   |   | -          |  |   | -            |  |   | -              |   |   | 15,000     |  
|January 23, 2008 @
      $0.0325 per share  |  | 21,538,461  |  |   | 700,000    |   |   | -           |   |   | -          |  |   | -            |  |   | -              |   |   | 700,000    |  
|February 8, 2008 @ $0.0325 per share        |  | 461,538     |  |   | 15,000     |   |   | -           |   |   | -          |  |   | -            |  |   | -              |   |   | 15,000     |  
|February 12, 2008 @
      $0.0325 per share |  | 23,076,923  |  |   | 750,000    |   |   | -           |   |   | -          |  |   | -            |  |   | -              |   |   | 750,000    |  
|February 13, 2008 @ $0.0325 per share       |  | 22,852,307  |  |   | 742,700    |   |   | -           |   |   | -          |  |   | -            |  |   | -              |   |   | 742,700    |  
|February 14, 2008 @
      $0.0325 per share |  | 12,307,692  |  |   | 400,000    |   |   | -           |   |   | -          |  |   | -            |  |   | -              |   |   | 400,000    |  
|For Consulting Services                     |  |             |  |   |            |   |   |             |   |   |            |  |   |              |  |   |                |   |   |            |  
|January 17, 2008 @
      $0.06 per share    |  | 500,000     |  |   | 30,000     |   |   | -           |   |   | -          |  |   | -            |  |   | -              |   |   | 30,000     |  
|February 1, 2008 @ $0.01 per share          |  | 1,800,000   |  |   | 180,000    |   |   | -           |   |   | -          |  |   | -            |  |   | -              |   |   | 180,000    |  
|February 21, 2008 @
      $0.06 per share   |  | 500,000     |  |   | 30,000     |   |   | -           |   |   | -          |  |   | -            |  |   | -              |   |   | 30,000     |  
|August 11, 2008 @ $0.03 per share           |  | 4,000,000   |  |   | 120,000    |   |   | -           |   |   | -          |  |   | -            |  |   | -              |   |   | 120,000    |  
|August 18, 2008 @ $0.03
      per share     |  | 4,000,000   |  |   | 120,000    |   |   | -           |   |   | -          |  |   | -            |  |   | -              |   |   | 120,000    |  
|September 16, 2008 @ $0.03 per share        |  | 4,000,000   |  |   | 120,000    |   |   | -           |   |   | -          |  |   | -            |  |   | -              |   |   | 120,000    |  
|October 21, 2008 @
      $0.03 per share    |  | 13,000,000  |  |   | 390,000    |   |   | -           |   |   | -          |  |   | -            |  |   | -              |   |   | 390,000    |  
|November 20, 2008 @ $0.01 per share         |  | 5,000,000   |  |   | 50,000     |   |   | -           |   |   | -          |  |   | -            |  |   | -              |   |   | 50,000     |  
|For Warrants Exercised                      |  |             |  |   |            |   |   |             |   |   |            |  |   |              |  |   |                |   |   |            |  
|December 17, 2007 @ $0.035 per share        |  | 16,513,024  |  |   | 577,956    |   |   | (223,176    | ) |   | -          |  |   | -            |  |   | -              |   |   | 354,780    |  
|January 21, 2008 @
      $0.035 per share   |  | 1,484,563   |  |   | 51,960     |   |   | (51,960     | ) |   | -          |  |   | -            |  |   | -              |   |   | -          |  
|February 1, 2008 @ $0.035 per share         |  | 4,166,667   |  |   | 145,833    |   |   | -           |   |   | -          |  |   | -            |  |   | -              |   |   | 145,833    |  
|October 10, 2008 @
      $0.0125 per share  |  | 6,500,004   |  |   | 81,250     |   |   | -           |   |   | -          |  |   | -            |  |   | -              |   |   | 81,250     |  
|October 14, 2008 @ $0.0125 per share        |  | 14,666,667  |  |   | 183,333    |   |   | -           |   |   | -          |  |   | -            |  |   | -              |   |   | 183,333    |  
|Share issue costs                           |  | -           |  |   | (409,601   | ) |   | -           |   |   | -          |  |   | -            |  |   | -              |   |   | (409,601   | )
|Net loss for the period                     |  | -           |  |   | -          |   |   | -           |   |   | -          |  |   | -            |  |   | (8,483,106     | ) |   | (8,483,106 | )
|Balance, November 30,
      2008            |  | 977,437,101 |  | $ | 94,718,072 |   | $ | -           |   | $ | 1,200,408  |  | $ | -            |  | $ | (95,310,209    | ) | $ | 608,271    |  

THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL
STATEMENTS

F - 5

---

SILVERADO GOLD MINES LTD. AND ITS SUBSIDIARIES(An
Exploration Stage Company) CONSOLIDATED STATEMENT OF STOCKHOLDERS
EQUITYfor the years from December 1, 2001 to November 30, 2009(Stated
in United States Dollars)

|                                                                   |  |               |  |   |             |   |   |             |  |   |            |  |   |              |  |   | Accumulated    |   |   |            |  
|------------------------------------------------------------------ |  | ------------- |  | - | ----------- | - | - | ----------- |  | - | ---------- |  | - | ------------ |  | - | -------------- | - | - | ---------- | -
|                                                                   |  | Number of     |  |   | Common      |   |   | Common      |  |   | Additional |  |   |              |  |   | Deficit during |   |   |            |  
|                                                                   |  | Common        |  |   | Shares -    |   |   | Stock to be |  |   | Paid in    |  |   | Deferred     |  |   | Exploration    |   |   |            |  
|                                                                   |  | Shares        |  |   | Amount      |   |   | Issued      |  |   | Capital    |  |   | Compensation |  |   | Stage          |   |   | Total      |  
|Balance, November 30, 2008                                         |  | 977,437,101   |  | $ | 94,718,072  |   | $ | -           |  | $ | 1,200,408  |  | $ | -            |  | $ | (95,310,209    | ) | $ | 608,271    |  
|Shares issued:                                                     |  |               |  |   |             |   |   |             |  |   |            |  |   |              |  |   |                |   |   |            |  
|For Private Placements                                             |  |               |  |   |             |   |   |             |  |   |            |  |   |              |  |   |                |   |   |            |  
|December 31, 2008 @ $0.00383 per share                             |  | 18,260,870    |  |   | 70,000      |   |   | -           |  |   | -          |  |   | -            |  |   | -              |   |   | 70,000     |  
|February 25, 2009 @ $0.004 per share                               |  | 19,250,000    |  |   | 77,000      |   |   | -           |  |   | -          |  |   | -            |  |   | -              |   |   | 77,000     |  
|March 27, 2009 @ $0.0025 per share                                 |  | 38,000,000    |  |   | 95,000      |   |   | -           |  |   | -          |  |   | -            |  |   | -              |   |   | 95,000     |  
|May 06, 2009 @ $0.01 per share                                     |  | 25,000,000    |  |   | 250,000     |   |   | -           |  |   | -          |  |   | -            |  |   | -              |   |   | 250,000    |  
|May 14, 2009 @ $0.01 per share                                     |  | 3,000,000     |  |   | 30,000      |   |   | -           |  |   | -          |  |   | -            |  |   | -              |   |   | 30,000     |  
|May 15, 2009 @ $0.01 per share                                     |  | 1,000,000     |  |   | 10,000      |   |   | -           |  |   | -          |  |   | -            |  |   | -              |   |   | 10,000     |  
|June 02, 2009 @ $0.01 per share                                    |  | 500,000       |  |   | 5,000       |   |   | -           |  |   | -          |  |   | -            |  |   | -              |   |   | 5,000      |  
|June 03, 2009 @ $0.01 per share                                    |  | 2,000,000     |  |   | 20,000      |   |   | -           |  |   | -          |  |   | -            |  |   | -              |   |   | 20,000     |  
|June 12, 2009 @ $0.01 per share                                    |  | 14,900,000    |  |   | 149,000     |   |   | -           |  |   | -          |  |   | -            |  |   | -              |   |   | 149,000    |  
|June 16, 2009 @ $0.01 per share                                    |  | 9,500,000     |  |   | 95,000      |   |   | -           |  |   | -          |  |   | -            |  |   | -              |   |   | 95,000     |  
|June 22, 2009 @ $0.01 per share                                    |  | 1,500,000     |  |   | 15,000      |   |   | -           |  |   | -          |  |   | -            |  |   | -              |   |   | 15,000     |  
|July 03, 2009 @ $0.01 per share                                    |  | 10,000,000    |  |   | 100,000     |   |   | -           |  |   | -          |  |   | -            |  |   | -              |   |   | 100,000    |  
|July 22, 2009 @ $0.01 per share                                    |  | 13,500,000    |  |   | 135,000     |   |   | -           |  |   | -          |  |   | -            |  |   | -              |   |   | 135,000    |  
|July 27, 2009 @ $0.01 per share                                    |  | 4,000,000     |  |   | 40,000      |   |   | -           |  |   | -          |  |   | -            |  |   | -              |   |   | 40,000     |  
|August 12, 2009 @ $0.01 per share                                  |  | 2,000,000     |  |   | 20,000      |   |   | -           |  |   | -          |  |   | -            |  |   | -              |   |   | 20,000     |  
|August 17, 2009 @ $0.01 per share                                  |  | 2,500,000     |  |   | 25,000      |   |   | -           |  |   | -          |  |   | -            |  |   | -              |   |   | 25,000     |  
|August 27, 2009 @ $0.01 per share                                  |  | 24,500,000    |  |   | 245,000     |   |   | -           |  |   | -          |  |   | -            |  |   | -              |   |   | 245,000    |  
|August 28, 2009 @ $0.01 per share                                  |  | 7,000,000     |  |   | 70,000      |   |   | -           |  |   | -          |  |   | -            |  |   | -              |   |   | 70,000     |  
|September 18, 2009 @ $0.01 per share                               |  | 2,000,000     |  |   | 20,000      |   |   | -           |  |   | -          |  |   | -            |  |   | -              |   |   | 20,000     |  
|September 29, 2009 @ $0.01 per share                               |  | 32,500,000    |  |   | 325,000     |   |   | -           |  |   | -          |  |   | -            |  |   | -              |   |   | 325,000    |  
|October 06, 2009 @ $0.01 per share                                 |  | 4,500,000     |  |   | 45,000      |   |   | -           |  |   | -          |  |   | -            |  |   | -              |   |   | 45,000     |  
|November 03, 2009 @ $0.01 per share                                |  | 5,000,000     |  |   | 50,000      |   |   | -           |  |   | -          |  |   | -            |  |   | -              |   |   | 50,000     |  
|November 09, 2009 @ $0.005 per share                               |  | 40,000,000    |  |   | 200,000     |   |   | -           |  |   | -          |  |   | -            |  |   | -              |   |   | 200,000    |  
|November 18, 2009 @ $0.01 per share                                |  | 1,500,000     |  |   | 15,000      |   |   | -           |  |   | -          |  |   | -            |  |   | -              |   |   | 15,000     |  
|For Consulting Fees and Other Expenses                             |  |               |  |   |             |   |   |             |  |   |            |  |   |              |  |   |                |   |   |            |  
|January 28, 2009 @ $0.0125 per share                               |  | 1,000,000     |  |   | 12,500      |   |   | -           |  |   | -          |  |   | -            |  |   | -              |   |   | 12,500     |  
|January 29, 2009 @ $0.0125 per share                               |  | 25,000,000    |  |   | 312,500     |   |   | -           |  |   | -          |  |   | -            |  |   | -              |   |   | 312,500    |  
|January 29, 2009 @ $0.03 per share                                 |  | 25,000,000    |  |   | 750,000     |   |   | -           |  |   | -          |  |   | -            |  |   | -              |   |   | 750,000    |  
|February 12, 2009 @ $0.0085 per share                              |  | 6,000,000     |  |   | 51,000      |   |   | -           |  |   | -          |  |   | -            |  |   | -              |   |   | 51,000     |  
|February 12, 2009 @ $0.01 per share                                |  | 2,000,000     |  |   | 20,000      |   |   | -           |  |   | -          |  |   | -            |  |   | -              |   |   | 20,000     |  
|February 13, 2009 @ $0.0087 per share                              |  | 15,000,000    |  |   | 130,500     |   |   | -           |  |   | -          |  |   | -            |  |   | -              |   |   | 130,500    |  
|February 13, 2009 @ $0.00333 per share                             |  | 3,109,800     |  |   | 10,356      |   |   | -           |  |   | -          |  |   | -            |  |   | -              |   |   | 10,356     |  
|March 27, 2009 @ $0.0125 per share                                 |  | 20,000,000    |  |   | 250,000     |   |   | -           |  |   | -          |  |   | -            |  |   | -              |   |   | 250,000    |  
|March 27, 2009 @ $0.0125 per share                                 |  | 9,000,000     |  |   | 112,500     |   |   | -           |  |   | -          |  |   | -            |  |   | -              |   |   | 112,500    |  
|April 13, 2009 @ $0.013 per share                                  |  | 15,000,000    |  |   | 195,000     |   |   | -           |  |   | -          |  |   | -            |  |   | -              |   |   | 195,000    |  
|June 03, 2009 @ $0.012 per share                                   |  | 30,000,000    |  |   | 360,000     |   |   | -           |  |   | -          |  |   | -            |  |   | -              |   |   | 360,000    |  
|August 18, 2009 @ $0.018 per share                                 |  | 5,000,000     |  |   | 90,000      |   |   | -           |  |   | -          |  |   | -            |  |   | -              |   |   | 90,000     |  
|August 21, 2009 @ $0.014 per share                                 |  | 20,000,000    |  |   | 280,000     |   |   | -           |  |   | -          |  |   | -            |  |   | -              |   |   | 280,000    |  
|October 29, 2009 @ $0.0154 per share                               |  | 3,500,000     |  |   | 53,900      |   |   | -           |  |   | -          |  |   | -            |  |   | -              |   |   | 53,900     |  
|November 03, 2009 @ $0.018 per share                               |  | 5,000,000     |  |   | 90,000      |   |   | -           |  |   | -          |  |   | -            |  |   | -              |   |   | 90,000     |  
|November 18, 2009 @ $0.0148 per share                              |  | 5,000,000     |  |   | 74,000      |   |   | -           |  |   | -          |  |   | -            |  |   | -              |   |   | 74,000     |  
|November 23, 2009 @ $0.0118 per share                              |  | 4,000,000     |  |   | 47,200      |   |   | -           |  |   | -          |  |   | -            |  |   | -              |   |   | 47,200     |  
|For Investor Relation and Shareholder
      Communication Services |  |               |  |   |             |   |   |             |  |   |            |  |   |              |  |  
|February 13, 2009 @ $0.0051 per share                              |  | 6,555,000     |  |   | 33,431      |   |   | -           |  |   | -          |  |   | -            |  |   | -              |   |   | 33,431     |  
|March 27, 2009 @ $0.00644 per share                                |  | 2,112,069     |  |   | 13,602      |   |   | -           |  |   | -          |  |   | -            |  |   | -              |   |   | 13,602     |  
|May 15, 2009 @ $0.0122 per share                                   |  | 357,965       |  |   | 4,367       |   |   | -           |  |   | -          |  |   | -            |  |   | -              |   |   | 4,367      |  
|June 03, 2009 @ $0.01063 per share                                 |  | 505,927       |  |   | 5,378       |   |   | -           |  |   | -          |  |   | -            |  |   | -              |   |   | 5,378      |  
|July 03, 2009 @ $0.01504 per share                                 |  | 376,430       |  |   | 5,662       |   |   | -           |  |   | -          |  |   | -            |  |   | -              |   |   | 5,662      |  
|July 31, 2009 @ $0.01478 per share                                 |  | 353,379       |  |   | 5,223       |   |   | -           |  |   | -          |  |   | -            |  |   | -              |   |   | 5,223      |  
|August 27, 2009 @ $0.016965 per share                              |  | 342,343       |  |   | 5,808       |   |   | -           |  |   | -          |  |   | -            |  |   | -              |   |   | 5,808      |  
|October 06, 2009 @ $0.0175 per share                               |  | 333,618       |  |   | 5,838       |   |   | -           |  |   | -          |  |   | -            |  |   | -              |   |   | 5,838      |  
|October 20, 2009 @ $0.01733 per share                              |  | 345,493       |  |   | 5,987       |   |   | -           |  |   | -          |  |   | -            |  |   | -              |   |   | 5,987      |  
|November 24, 2009 @ $0.01392 per share                             |  | 427,078       |  |   | 5,945       |   |   | -           |  |   | -          |  |   | -            |  |   | -              |   |   | 5,945      |  
|For Commitment, Legal and Financing Fees                           |  |               |  |   |             |   |   |             |  |   |            |  |   |              |  |   |                |   |   |            |  
|May 06, 2009 @ $0.0096 per share                                   |  | 100,000,000   |  |   | 960,000     |   |   | -           |  |   | -          |  |   | -            |  |   | -              |   |   | 960,000    |  
|October 20, 2009 @ $0.0185 per share                               |  | 8,000,000     |  |   | 148,000     |   |   | -           |  |   | -          |  |   | -            |  |   | -              |   |   | 148,000    |  
|November 04, 2009 @ $0.016 per share                               |  | 5,000,000     |  |   | 80,000      |   |   | -           |  |   | -          |  |   | -            |  |   | -              |   |   | 80,000     |  
|For Warrants Exercised                                             |  |               |  |   |             |   |   |             |  |   |            |  |   |              |  |   |                |   |   |            |  
|Share subscriptions Received                                       |  | -             |  |   | -           |   |   | 100,000     |  |   | -          |  |   | -            |  |   | -              |   |   | 100,000    |  
|Conversion feature on convertible debenture                        |  | -             |  |   | -           |   |   | -           |  |   | 5,716      |  |   | -            |  |   | -              |   |   | 5,716      |  
|Share issue costs                                                  |  | -             |  |   | (59,500     | ) |   | -           |  |   | -          |  |   | -            |  |   | -              |   |   | (59,500    | )
|Net loss for the year                                              |  | -             |  |   | -           |   |   | -           |  |   | -          |  |   | -            |  |   | (6,760,766     | ) |   | (6,760,766 | )
|Balance, November 30, 2009                                         |  | 1,577,667,073 |  | $ | 100,883,269 |   | $ | 100,000     |  | $ | 1,206,124  |  | $ | -            |  | $ | (102,070,975   | ) | $ | 118,418    |  

THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL
STATEMENTS

F - 6

---

SILVERADO GOLD MINES LTD. AND ITS SUBSIDIARIES(An
Exploration Stage Company)CONSOLIDATED STATEMENTS OF CASH FLOWSfor the
years ended November 30, 2009 and 2008(Stated in United States
Dollars)

|                                                                                                          |   |            |   |   |            |   |   | Period Since           |  
|--------------------------------------------------------------------------------------------------------- | - | ---------- | - | - | ---------- | - | - | ---------------------- | -
|                                                                                                          |   |            |   |   |            |   |   | Recommencement of      |  
|                                                                                                          |   |            |   |   |            |   |   | Exploration Stage from |  
|                                                                                                          |   |            |   |   |            |   |   | December 1, 2001 to    |  
|                                                                                                          |   | 2009       |   |   | 2008       |   |   | November 30, 2009      |  
|CASH AND CASH EQUIVALENTS
      PROVIDED BY (USED IN):                                                    |   |            |   |   |            |   |   |                        |  
|Operating activities:                                                                                     |   |            |   |   |            |   |   |                        |  
|Net
      comprehensive loss for the year                                                                 | $ | (6,760,766 | ) | $ | (8,483,106 | ) | $ | (53,166,031            | )
|Adjustments to reconcile loss to net cash used
      in 
              operating activities:              |   |            |   |   |            |   |   |                        |  
|Cumulative effect of accounting change                                                                    |   | -          |   |   | -          |   |   | 99,481                 |  
|Depreciation, amortization, accretion and impairment                                                      |   | 216,083    |   |   | 334,221    |   |   | 2,775,815              |  
|Loss on disposal of property, plant and equipment                                                         |   | 168,146    |   |   | 111,383    |   |   | 279,529                |  
|Stock-based
      compensation included in management fees                                                |   | -          |   |   | -          |   |   | 3,375,644              |  
|Stock issued for debenture                                                                                |   | -          |   |   | -          |   |   | 217,687                |  
|Non-cash
      consulting and other expenses
                        
      resulting from share issuance |   | 2,441,832  |   |   | 706,500    |   |   | 5,886,038              |  
|Non-cash prepaid consulting fees expensed during the year                                                 |   | 333,500    |   |   | -          |   |   | 333,500                |  
|Non-cash
      commitment fees resulting from share issuance                                              |   | 960,000    |   |   | -          |   |   | 960,000                |  
|Non-cash financing expense                                                                                |   | -          |   |   | -          |   |   | 252,003                |  
|Interest
      accrued or incurred on convertible debentures                                              |   | 476        |   |   | 11,200     |   |   | 498,046                |  
|Write-off of convertible debentures and accrued interests                                                 |   | (260,827   | ) |   | -          |   |   | (260,827               | )
|Write-off
      of mineral claim expenditures                                                             |   | -          |   |   | -          |   |   | 1,159,529              |  
|Write-down of property, plant and equipment                                                               |   | 12,254     |   |   | 31,550     |   |   | 329,679                |  
|Changes in non-cash operating
      working capital:                                                      |   |            |   |   |            |   |   |                        |  
|Gold inventory                                                                                            |   | 43,790     |   |   | 1,919,764  |   |   | 2,317                  |  
|Prepaid and
      other receivables                                                                       |   | 28,250     |   |   | 244,647    |   |   | (18,733                | )
|Accounts payable and accrued liabilities                                                                  |   | 442,135    |   |   | 339,856    |   |   | 385,862                |  
|Asset
      retirement obligation                                                                         |   | 3,149      |   |   | 7,947      |   |   | 11,096                 |  
|Net cash (used in)
      operating activities                                                             |   | (2,371,978 | ) |   | (4,776,038 | ) |   | (36,879,365            | )
|                                                                                                          |   |            |   |   |            |   |   |                        |  
|Investing activities:                                                                                     |   |            |   |   |            |   |   |                        |  
|Investment in mineral properties                                                                          |   | (121,010   | ) |   | (155,275   | ) |   | (1,245,101             | )
|Purchase of
      property, plant and equipment                                                           |   | (3,178     | ) |   | (332,099   | ) |   | (3,079,696             | )
|Proceeds from sale of property,
      plant and equipment, net                                            |   | 236,510    |   |   | 381,500    |   |   | 825,299                |  
|Net cash provided by (used
      in) investing activities                                                 |   | 112,322    |   |   | (105,874   | ) |   | (3,499,498             | )
|                                                                                                          |   |            |   |   |            |   |   |                        |  
|Financing activities:                                                                                     |   |            |   |   |            |   |   |                        |  
|Advances from (to) related party                                                                          |   | (12,835    | ) |   | (137,836   | ) |   | 772,734                |  
|Repayment of
      loans payable                                                                          |   | -          |   |   | -          |   |   | (110,728               | )
|Repayment of capital lease
      obligation                                                               |   | -          |   |   | (31,013    | ) |   | (1,131,607             | )
|Convertible
      debentures                                                                              |   | 75,000     |   |   | -          |   |   | 75,000                 |  
|Share subscriptions received                                                                              |   | 100,000    |   |   | -          |   |   | 100,000                |  
|Common stock
      issued for cash (net of share issue costs)                                             |   | 2,046,500  |   |   | 4,028,295  |   |   | 40,656,371             |  
|Net cash provided by financing
      activities                                                           |   | 2,208,665  |   |   | 3,859,446  |   |   | 40,361,770             |  
|                                                                                                          |   |            |   |   |            |   |   |                        |  
|(Decrease) in cash and cash
      equivalents                                                             |   | (50,991    | ) |   | (1,022,466 | ) |   | (17,093                | )
|                                                                                                          |   |            |   |   |            |   |   |                        |  
|Cash and cash equivalents, at beginning of
      the period                                               |   | 50,991     |   |   | 1,073,457  |   |   | 17,093                 |  
|                                                                                                          |   |            |   |   |            |   |   |                        |  
|Cash and cash equivalents, at end of the
      period                                                     | $ | -          |   | $ | 50,991     |   | $ | -                      |  
|                                                                                                          |   |            |   |   |            |   |   |                        |  
|Supplemental Cash Flow Information (Note
      15)                                                        |   |            |   |   |            |   |   |                        |  

THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL
STATEMENTS

F - 7

---

|SILVERADO GOLD MINES LTD. AND ITS SUBSIDIARIES
|----------------------------------------------
|(An Exploration Stage Company)                
|NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
|November 30, 2009 and 2008                    
|(Stated in
      United States Dollars)       

Note 1  Nature and Continuance of Operations

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

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

Note 2  Basis of Presentation and Summary of Significant
Accounting Policies

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

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

a)       Basis of
Consolidation

The consolidated financial statements include the accounts of
Silverado Gold Mines Ltd. and its wholly-owned subsidiaries Silverado Gold Mines
Inc. and Silverado Green Fuel Inc. All significant inter-company transactions
have been eliminated.

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

b)       Exploration Stage
Company

The Company has not generated revenues since recommencement of
the exploration from December 1, 2001, and is considered to be in the
development stage, as defined in Financial Accounting Standards Board (FASB)
Accounting Standards Codification (ASC) 915-10-05. However, the Securities and
Exchange Commissions Industry Guide 7, Description of Property by Issuers
Engaged or to be Engaged in Significant Mining Operations requires that
mining companies in the exploration stage should not refer to themselves as
development stage companies in the financial statements, even though such
companies should comply with FASB ASC 915-10-05, if applicable. Accordingly, the
Company has been referred to as an exploration stage company, not a development
stage company. Accumulated results of operations and cash flows are presented
from December 1, 2001, the date the Company re-entered the exploration stage.

F - 8

---

|SILVERADO GOLD MINES LTD. AND ITS SUBSIDIARIES
|----------------------------------------------
|(An Exploration Stage Company)                
|NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
|November 30, 2009 and 2008                    
|(Stated in United
      States Dollars)       

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

c)       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.

d)       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.

e)       Fair Value of
Financial Instruments

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

The Companys assessment of the significance of a particular
input to the fair value measurements requires judgment, and may affect the
valuation of the assets and liabilities being measured and their placement
within the fair value hierarchy. The carrying value of gold inventory,
receivables, accounts payable and accrued liabilities, mineral claims royalty
payable and payable to related party approximate fair value because of the
short-term maturity of these instruments. The carrying amounts reported in the
balance sheets for convertible debentures approximate their fair values as of
the date of issuance. Unless otherwise noted, it is managements opinion that
the Company is not exposed to significant interest, currency or credit risks
arising from these financial instruments.

f)       Convertible Debt
Instruments

The Company separately accounts for the liability and equity
components of convertible debentures to reflect the fair value of the liability
component based on our non-convertible borrowing cost at the issuance date.
Accordingly, the Company has recorded the liability components of the
convertible debentures at fair value as of the date of issuance based on
effective interest rate and amortized the resulting discount as an increase to
interest expense over the expected life of the debt. The excess proceeds
received over the fair value of the debt at the date of issuance are attributed
to the conversion feature of the convertible debentures and included in
additional paid-in capital on the consolidated balance sheets.

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

g)       Gold Inventory

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

F - 9

---

|SILVERADO GOLD MINES LTD. AND ITS SUBSIDIARIES
|----------------------------------------------
|(An Exploration Stage Company)                
|NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
|November 30, 2009 and 2008                    
|(Stated in United
      States Dollars)       

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

h)       Income Taxes

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

FASB ASC 740-10 clarifies the accounting for income taxes, by
prescribing a minimum recognition threshold a tax position is required to meet
before being recognized in the financial statements. It also provides guidance
on derecognizing, measurement and classification of amounts relating to
uncertain tax positions, accounting for and disclosure of interest and
penalties, accounting in interim periods, disclosures and transition relating to
the adoption of the new accounting standard. FASB ASC 740-10 is effective for
fiscal years beginning after December 15, 2006. The Company adopted FASB ASC
740-10 as of December 1, 2007, as required, and determined that the adoption of
FASB ASC 740-10 did not have a material impact on the Companys financial
position and results of operations.

i)       Mineral Rights
Payments and Exploration Costs

Pursuant to EITF 04-02, Whether Mineral Rights are Tangible
or Intangible Assets and Related Issues, the Company has modified its
accounting policy in 2008 with respect to mineral claim payments, retroactively
effective to June 1, 2004, to capitalize the direct costs to acquire or lease
mineral properties and mineral rights as tangible assets. The direct costs
include the costs of signature (lease) bonuses, options to purchase or lease
properties, and brokers and legal fees. If the acquired mineral rights relate
to unproven properties, the Company does not amortize the capitalized mineral
costs, but evaluates the capitalized mineral costs periodically for impairment.
The Company expenses all costs related to the exploration of mineral claims in
which it had secured exploration rights prior to establishment of proven and
probable reserves.

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

j)       Asset Retirement
Obligation

Effective December 1, 2002, the Company adopted FASB ASC
410-20, Asset Retirement Obligations, which addresses financial
accounting and reporting for obligations associated with the retirement of
tangible long-lived assets and the associated retirement costs. The standard
applies to legal obligations associated with the retirement of long-lived assets
that result from the acquisition, construction, development and normal use of
the asset.

FASB ASC 410-20 requires that the fair value of a liability for
an asset retirement obligation be recognized in the period in which it is
incurred if a reasonable estimate of fair value can be made. The fair value of
the liability is added to the carrying amount of the associated asset and this
additional carrying amount is depreciated over the life of the asset. The
liability is accreted at the end of each period through charges to operating
expense. If the obligation is settled for other than the carrying amount of the
liability, the Company will recognize a gain or loss on settlement.

k)       Use of Estimates

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

F - 10

---

|SILVERADO GOLD MINES LTD. AND ITS SUBSIDIARIES
|----------------------------------------------
|(An Exploration Stage Company)                
|NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
|November 30, 2009 and 2008                    
|(Stated in United
      States Dollars)       

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

l)       Property, Plant and
Equipment

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

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

m)       Cash and Cash
Equivalents

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

o)       Concentration of
Credit Risk and Foreign Exchange Rate Risk

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

p)       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 consolidated balance sheet date. Non-monetary
assets and liabilities are translated at the rate in effect at the time at which
the transactions took place. Revenue and expense transactions are translated at
the average rate of exchange for the year. Foreign exchange gains and losses are
included in the determination of results from operations for the year as other
comprehensive gain or loss.

q)       Revenue Recognition

Proceeds from the sale of gold recoveries from test mining were
recorded as a reduction of exploration costs during the period the Company is in
the exploration stage. This accounting policy has been changed in 2008 and now
proceeds from the sale of gold recoveries from test mining are recorded as other
income earned during the exploration stage, retroactively effective from the
period since recommencement of exploration stage from December 1, 2001.

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

q)       Research Expenditures

Research expenditures are expensed in the year incurred.

F - 11

---

|SILVERADO GOLD MINES LTD. AND ITS SUBSIDIARIES
|----------------------------------------------
|(An Exploration Stage Company)                
|NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
|November 30, 2009 and 2008                    
|(Stated in United
      States Dollars)       

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

r)       Accounting for
Stock-based Compensation

Effective December 1, 2006, the Company adopted FASB ASC 718,
Compensation  Stock Compensation, requiring equity awards granted under
its stock option plan to be accounted for under the fair value method.
Accordingly, share-based compensation is measured at grant date, based on the
fair value of the award. Prior to December 1, 2006, the Company accounted for
awards granted under its stock option plans utilizing the intrinsic value method
prescribed by Accounting Principles Board (APB) Opinion No. 25, Accounting for
Stock Issued to Employees (APB 25), and related interpretations, and provided
the required pro forma disclosures prescribed by SFAS 123, Accounting for
Stock-Based Compensation (SFAS 123), as amended. Under the existing stock
option plans, all options vest entirely on the grant date. Therefore, there were
no partially vested options outstanding as of the FASB ASC 718 adoption date.

s)       Long Lived Asset
Impairment

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

t)       Reclassifications

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

u)       Recent Accounting
Pronouncements

In June 2009, the FASB issued FASB ASC 105, Generally
Accepted Accounting Principles, which establishes the FASB ASC as the sole
source of authoritative generally accepted accounting principles, Pursuant to
the provisions of FASB ASC 105, the Company has updated references to GAAP in
its financial statements issued for the period ended November 30, 2009. The
adoption of FASB ASC 105 did not impact the Companys financial position or
results of operations.

The FASB recently amended its guidance regarding to
non-controlling interests in consolidated financial statements. This guidance
requires that the ownership interests in subsidiaries held by parties other than
the parent be clearly identified, labeled, and presented in the consolidated
statement of financial position within equity, but separate from the parents
equity. This Statement is effective for fiscal years, and interim periods within
those fiscal years, beginning on or after December 15, 2008. Earlier adoption is
prohibited. The Company adopted this statement on December 1, 2009. The Company
does not anticipate that the implementation of this guidance will have any
material effect on our consolidated financial statements.

In June 2008, the FASB issued FASB ASC 815-40, Derivatives
and Hedging, that provides guidance on how to determine if certain
instruments (or embedded features) are considered indexed to a companys own
stock, including instruments similar to warrants to purchase the Companys
stock. FASB ASC 815-40 requires companies to use a two-step approach to evaluate
an instruments contingent exercise provisions and settlement provisions in
determining whether the instrument is considered to be indexed to its own stock
and therefore exempt from the application of FASB ASC 815. Although FASB ASC
815-40 is effective for fiscal years beginning after December 15, 2008, any
outstanding instrument at the date of adoption will require a retrospective
application of the accounting through a cumulative effect adjustment to retained
earnings upon adoption. The Company does not expect the adoption of this
guidance to have a material impact on either its financial position or results
of operations.

F - 12

---

|SILVERADO GOLD MINES LTD. AND ITS SUBSIDIARIES
|----------------------------------------------
|(An Exploration Stage Company)                
|NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
|November 30, 2009 and 2008                    
|(Stated in United
      States Dollars)       

Note 3  Gold Inventory

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

During the fiscal year ended November 30, 2009, the Company
sold 58.15 troy ounces of gold, (2008: 2,920 troy ounces) for net proceeds of
$52,450 (2008: $2,200,547), which were recorded as other income earned during
the exploration stage. In addition, the Company wrote off 8.45 troy ounces gold
inventory for the inventory shrinkage, the value of which is $5,556 recorded as
cost of gold sold. The following is a summary of gold inventory changes during
the fiscal years ended November 30, 2009 and 2008:

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

Note 4  Prepaid and Other Receivables

Prepaid and other receivables consist of:

|                                                |   | November 30, 2009 |  |   | November 30, 2008 | 
|----------------------------------------------- | - | ----------------- |  | - | ----------------- | 
|Shares issued for prepaid
      consulting fees | $ | 608,640           |  | $ | 333,500           | 
|Shares issued for attorney retainer             |   | 108,225           |  |   | -                 | 
|Total shares issued as
      prepaid expenses   |   | 716,865           |  |   | 333,500           | 
|Insurance deposits, GST refund and others       |   | 21,608            |  |   | 49,858            | 
|Total                                           | $ | 738,473           |  | $ | 383,358           | 

During the year ended November 30, 2009, the Company issued an
aggregate of 218,319,102 shares (2008: 32,800,000 shares) of the Companys
common stock for consulting and other service fees, valued at the fair market
price at the dates of the agreements, for total consideration of $3,158,697
(2008: $1,040,000), of which $716,865 (2008: $333,500) was recorded as prepaid
expenses based on the terms of the agreements (See Note 11 (b)  Common Stock
Issued under Equity Compensation Plans, below).

Note 5  Mineral Properties and Mineral Rights

The Company holds interests in four groups of mineral
properties, Nolan, Ester Dome, Hammond and Eagle Creek, in Alaska, U.S.A. All of
these properties are in the exploration stage and have no proven reserves as of
November 30, 2009. The Nolan property has a probable reserve; however, a more
extensive feasibility study is required to ascertain if such probable reserve
can be classified as a proven reserve.

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

F - 13

---

|SILVERADO GOLD MINES LTD. AND ITS SUBSIDIARIES
|----------------------------------------------
|(An Exploration Stage Company)                
|NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
|November 30, 2009 and 2008                    
|(Stated in United
      States Dollars)       

Note 5  Mineral Properties and Mineral Rights (Continued)

|Capitalized Mineral Rights:           |   | Nolan   |  |   | Ester Dome |  |   | Hammond |  |   | Eagle Creek |  |   | Total     | 
|------------------------------------- | - | ------- |  | - | ---------- |  | - | ------- |  | - | ----------- |  | - | --------- | 
|                                      |   | (a)     |  |   | (b)        |  |   | (c)     |  |   | (d)         |  |   |           | 
|Balance as of November 30,
      2007 | $ | 582,439 |  | $ | 24,837     |  | $ | 350,000 |  | $ | 55,040      |  | $ | 1,012,316 | 
|Additions during the year:            |   |         |  |   |            |  |   |         |  |   |             |  |   |           | 
|Claim
      fees paid during the year |   | 75,880  |  |   | 6,885      |  |   | 7,500   |  |   | 10,010      |  |   | 100,275   | 
|Royalty payments                      |   | -       |  |   | -          |  |   | 50,000  |  |   | 5,000       |  |   | 55,000    | 
|Accrued
      royalty payment         |   | -       |  |   | -          |  |   | 30,000  |  |   | -           |  |   | 30,000    | 
|Balance as of November 30, 2008       |   | 658,319 |  |   | 31,722     |  |   | 437,500 |  |   | 70,050      |  |   | 1,197,591 | 
|Additions during the year:            |   |         |  |   |            |  |   |         |  |   |             |  |   |           | 
|Claim fees paid during
      the year |   | 85,540  |  |   | 8,980      |  |   | 8,400   |  |   | 13,090      |  |   | 116,010   | 
|Royalty
      payment                 |   | -       |  |   | -          |  |   | -       |  |   | 5,000       |  |   | 5,000     | 
|Accrued royalty payment               |   | -       |  |   | -          |  |   | 80,000  |  |   | -           |  |   | 80,000    | 
|Balance as of November 30,
      2009 | $ | 743,859 |  | $ | 40,702     |  | $ | 525,900 |  | $ | 88,140      |  | $ | 1,398,601 | 

a)       Nolan Gold Project,
Wiseman Mining District, Alaska

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

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

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

During the fiscal year ended November 30, 2009, the Company
paid claim maintenance and holding fees of $85,540 to the Bureau of Land
Management (BLM). During the fiscal year ended November 30, 2008, the Company
paid claim maintenance and holding fees of $76,375 to BLM and received a refund
of $495 from BLM for a 2007 overpayment.

The Company currently is in a transitional phase between
exploration and development on this property. The preliminary feasibility study,
effective January 1, 2009 and amended on June 1, 2009 to reflect additional
data, supported a probable mineral reserve of antimony and gold underlying the
southwestern portion of the Solomon Shear Zone, an area referred to by the
Company as Workmans Bench.

F - 14

---

|SILVERADO GOLD MINES LTD. AND ITS SUBSIDIARIES
|----------------------------------------------
|(An Exploration Stage Company)                
|NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
|November 30, 2009 and 2008                    
|(Stated in United
      States Dollars)       

Note 5  Mineral Properties and Mineral Rights (Continued)

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

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

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

The Company has maintained claim rental payments and continued
with assessment work to this property. During the fiscal year ended November 30,
2009, the Company paid state mining claim fees of $8,840 (2008: $6,760) to the
State of Alaska Department of Natural Resources and federal mining claim fees of
$140 (2008: $125) to BLM.

c)       Hammond Property,
Wiseman Mining District, Alaska

This property consists of 24 Federal placer claims and 36
Federal lode claims covering one and one-half square miles and adjoining the
Nolan Gold Properties. The Company has leased this property from Alaska Mining
Company, Inc. (Alminco) since December 14, 1994 and is obligated to pay a
royalty equal to 10% of gross production and is subject to a minimum royalty of
$80,000 per year. Through November 30, 2009, the Company has paid a total of
$560,000 in minimum royalties to Alminco. As of November 30, 2009, the
capitalized mineral rights of $525,900 (2008: $437,500) for the Hammond property
includes royalty accruals totaling $470,000 (2008: $390,000) that are unpaid, in
arrears, and included in mineral claims payable on the accompanying consolidated
balance sheets. During the fiscal year ended November 30, 2009, the Company paid
$Nil (2008: $50,000) in minimum royalties and paid $8,400 (2008: $7,500) federal
claim fees to BLM.

d)       Eagle Creek Property,
Fairbanks Mining District, Alaska

This property consists of 77 state mineral claims. All claims
are contiguous and are located in the Fairbanks North Star Borough. The Company
owns a 50% interest and has an option to purchase a full 100% interest in the
property for $400,000, towards which $43,000 remains to be paid. A payment in
the amount of $5,000 is due on August 1st of each year until the
remaining $43,000 is paid. Such yearly payment is required to keep the option in
good standing. Ownership of the claims is in the name of the Companys
subsidiary, Silverado Gold Mines Inc. During the fiscal year ended November 30,
2009, the Company paid the required $5,000 (2008: $5,000) option payment for the
year and paid $13,090 (2008: $10,010) in state mining claim fees.

Note 6  Property, Plant and Equipment

Property, plant and equipment primarily include capital
expenditure associated with the Companys Vancouver office, and mining equipment
and camp facilities at the Nolan Gold Project in Alaska. During the fiscal year
ended November 30, 2009, the Company sold some Nolan mining equipment for net
proceeds of $236,510 (2008: $381,500). The net book value of the sold equipment
was $404,656 (2008: $492,883).

In accordance with FASB ASC 360-10, Impairment or Disposal
of Long-Lived Assets, the Company recorded an impairment, as of November
30, 2009, of $12,254 (2008: $31,550) against Nolan mining equipment.
Depreciation expenses for the year ended November 30, 2009 was $216,083 (2008:
$334,221).

F - 15

---

|SILVERADO GOLD MINES LTD. AND ITS SUBSIDIARIES
|----------------------------------------------
|(An Exploration Stage Company)                
|NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
|November 30, 2009 and 2008                    
|(Stated in United
      States Dollars)       

Note 6  Property, Plant and Equipment (Continued)

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

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

A summary of the Companys property, plant and equipment for
the fiscal year ended November 30, 2008 is as follows:

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

Note 7  Accounts Payable and Accrued Liabilities

Accounts payable and accrued liabilities consist of:

|                                      |   | November 30, 2009 |  |   | November 30, 2008 | 
|------------------------------------- | - | ----------------- |  | - | ----------------- | 
|Accounts payable and accrued payables | $ | 882,768           |  | $ | 440,633           | 
|Accrued interest                      |   | -                 |  |   | 120,827           | 
|Total                                 | $ | 882,768           |  | $ | 561,460           | 

The accrued interest payable of $120,827 as of November 30,
2008 relates to the convertible debentures issued in 1994. The accrued interest
payable along with the balance due on convertible debentures was written off and
taken into other income during the fiscal year ended November 30, 2009.

F - 16

---

|SILVERADO GOLD MINES LTD. AND ITS SUBSIDIARIES
|----------------------------------------------
|(An Exploration Stage Company)                
|NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
|November 30, 2009 and 2008                    
|(Stated in United
      States Dollars)       

Note 8  Convertible Debt Instruments

a)       Convertible Note
Issued in 2009

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

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

The Company separately accounts for the liability and equity
components of convertible debentures to reflect the fair value of the liability
component based on our non-convertible borrowing cost at the issuance date. The
present value of a non-convertible note at the issuance date would be valued at
$69,284 using the effective interest rate of 8.25%. Accordingly, the Company
recorded $69,284 of the liability components of the convertible note as of the
date of issuance and will amortize the resulting discount as an increase to
interest expense over the expected life of the debt. The excess proceeds of
$5,716 received over the fair value of the debt at the date of issuance were
attributed to the conversion feature of the convertible note and accordingly has
been included in additional paid-in capital on the consolidated balance
sheets.

b)       Convertible
Debentures Issued in 1994

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. As of November 30, 2004, the replacement
debentures were repaid in full. Certain of the original convertible debentures,
reflecting an aggregate principal amount of $140,000, were not exchanged for
replacement debentures as the Company had been unsuccessful in its extensive
attempts to locate the holders of such securities.

In 2009, the Company was advised by its Canadian legal counsel
that any claims relating to the debt arising from such unexchanged debentures is
barred by operation of the British Columbia Limitation Act. As a result, the
Company has written off and taken into other income the full value of the
principal and accrued interest of such unexchanged convertible debentures in the
amounts of $140,000 and $123,627, respectively, for a total of $263,627 during
the fiscal year ended November 30, 2009.

Note 9  Asset Retirement Obligations

Asset retirement obligations relate to the closure and
reclamation of the Grant Mill Tailings Pond and the Mill complex, and to the
reclamation work associated with the Nolan Gold Project consisting of
dismantling and removal of site structures and equipment, and reshaping and
revegetating the disturbed areas. The Company has no assets legally restricted
for purposes of settling asset retirement obligations.

F - 17

---

|SILVERADO GOLD MINES LTD. AND ITS SUBSIDIARIES
|----------------------------------------------
|(An Exploration Stage Company)                
|NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
|November 30, 2009 and 2008                    
|(Stated in United
      States Dollars)       

Note 9  Asset Retirement Obligations (Continued)

Grant Mine

The Grant Mine is not an active mine and related assets were
written off as impaired effective December 1, 2001. The retirement obligations
associated with the Grant Mine involves the decommissioning of the Grant Mill
Tailings Pond and the Mill complex that was built in the early 1980s and no
longer used after 1989. The Company has retained a geotechnical and
environmental consultants firm to assist with a preliminary report for the
closure of the tailings pond. The preliminary report is part of the closure
plan, and further reclamation work involves another closure phase that needs
permits and/or approval by the State of Alaska regulatory agencies.

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

Nolan Gold Project

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

The Company was bonded for 48.5 acres before the start of 2008
and 27.5 acres were reclaimed at Nolan Creek in 2008. During the year ended
November 30, 2009, the Company received refunds of $5,456 from the reclamation
bond deposited for these reclaimed 27.5 acres. As of November 30, 2009 and 2008,
the Company is obligated to reclaim 21 acres at Nolan Creek. These 21 acres are
areas essential for the Companys operations and consist of the camp area,
equipment storage area, processing area, explosives storage area, and the portal
area, as well as the roads and core storage area.

During the fiscal year ended November 30, 2009, the Company
spent $4,258 (2008: $18,518) on reclamation at Nolan properties. The Company
believes that the remaining accrued obligations plus 5% accretion expense per
annum until the remaining 21 acres are reclaimed is sufficient to cover the cost
of reclamation.

A summary of assets retirement obligation for the years ended
November 30, 2009 and 2008 is as follows:

| |                            |   | Grant   |   |   | Nolan   |   |   |         |  
| | -------------------------- | - | ------- | - | - | ------- | - | - | ------- | -
| |                            |   | Mine    |   |   | Project |   |   | Total   |  
| | Balance, November 30, 2007 | $ | 347,287 |   | $ | 182,024 |   | $ | 529,311 |  
| | Accretion expense          |   | 17,364  |   |   | 9,101   |   |   | 26,465  |  
| | Liabilities settled        |   | -       |   |   | (18,518 | ) |   | (18,518 | )
| | Balance, November 30, 2008 |   | 364,651 |   |   | 172,607 |   |   | 537,258 |  
| | Accretion expense          |   | 18,233  |   |   | 8,630   |   |   | 26,863  |  
| | Liabilities settled        |   | (14,000 | ) |   | (4,258  | ) |   | (18,258 | )
| | Reclamation bond refunded  |   | -       |   |   | (5,456  | ) |   | (5,456  | )
| | Balance, November 30, 2009 | $ | 368,884 |   | $ | 171,523 |   | $ | 540,407 |  

F - 18

---

|SILVERADO GOLD MINES LTD. AND ITS SUBSIDIARIES
|----------------------------------------------
|(An Exploration Stage Company)                
|NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
|November 30, 2009 and 2008                    
|(Stated in United
      States Dollars)       

Note 10  Related Party Transactions

(a)    Service Agreements

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

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

For the fiscal year ended November 30, 2009, the Tri-Con
Groups services focused mainly on corporate planning, drilling, engineering
planning and preparation for production on the Companys Nolan property;
equipment and property maintenance; and administration services at both the
field and corporate offices. During the year ended November 30, 2009, Tri-Con
Mining Inc. has forgiven $600,000 of current year billings to the Company in
recognition of the Companys cash flow constraints. As of November 30, 2009,
after the adjustment of $600,000, Silverado owed $1,064,046 (November 30, 2008:
$1,076,881) to the Tri-Con Group for exploration and administration services
rendered. The amounts are non-interest bearing and due on demand.

The following is a summary of the aggregate amounts billed by
the Tri-Con Group for disbursements and for services rendered by the Tri-Con
Group personnel during the fiscal years ended November 30, 2009 and 2008:

|                                                                                   |   | 2009      |    |   | 2008      | 
|---------------------------------------------------------------------------------- | - | --------- | -- | - | --------- | 
|Mineral exploration and administration
      services                              | $ | 1,566,374 |    | $ | 3,878,670 | 
|General administration and management services                                     |   | 552,227   |    |   | 1,192,353 | 
|Amounts forgiven by Tri-Con Group                                                  |   | (600,000  | )  |   | -         | 
|                                                                                   | $ | 1,518,601 |    | $ | 5,071,023 | 
|                                                                                   |   |           |    |   |           | 
|Amount of total charges (less than) in excess of the Cost                          | $ | (32,780   | )  | $ | 1,176,926 | 
|                                                                                   |   |           |    |   |           | 
|Percentage of (shortage) excess of the Cost charged over
      total amount billed |   | (2.16     | )% |   | 23.21%    | 

Tri-Con Group billed the Company CDN $75,000 (2008: CDN
$150,000) plus 15% office overhead as the Cost plus markups for services
performed on behalf of Silverado by a Tri-Con Group employee who is related to a
director and officer of the Company.

(b)    Consulting Agreement

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

F - 19

---

|SILVERADO GOLD MINES LTD. AND ITS SUBSIDIARIES
|----------------------------------------------
|(An Exploration Stage Company)                
|NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
|November 30, 2009 and 2008                    
|(Stated in United
      States Dollars)       

Note 11  Common Stock

The authorized common stock of the Company consists of an
unlimited number of common shares, without par value. The following is a summary
of the Companys issuances of common stock during the fiscal year ended November
30, 2009:

| |                                                                                  |  |                  |  |   | Common Stock |  
| | -------------------------------------------------------------------------------- |  | ---------------- |  | - | ------------ | -
| |                                                                                  |  | Number of Shares |  |   | Amount       |  
| | Balance as of November 30, 2008                                                  |  | 977,437,101      |  | $ | 94,718,072   |  
| | Shares issued for cash:                                                          |  |                  |  |   |              |  
| | Private
      placement at $0.003833 per share                                   |  | 18,260,870       |  |   | 70,000       |  
| | Private placement at
      $0.004 per share                                      |  | 19,250,000       |  |   | 77,000       |  
| | Private
      placement at $0.0025 per share                                     |  | 38,000,000       |  |   | 95,000       |  
| | Private placement at
      $0.005 per share                                      |  | 40,000,000       |  |   | 200,000      |  
| | Private
      placement at $0.01 per share                                       |  | 53,000,000       |  |   | 530,000      |  
| | Private placement at
      $0.01 per unit (1 unit = 1 share and 1 warrant)       |  | 56,400,000       |  |   | 564,000      |  
| | Private
      placement at $0.01 per unit (1 unit = 1 share and 1/2 warrant)     |  | 57,000,000       |  |   | 570,000      |  
| | Commissions paid                                                                 |  | -                |  |   | (59,500      | )
| | Total shares issued for cash                                                     |  | 281,910,870      |  |   | 2,046,500    |  
| | Shares issued for consulting fees:                                               |  |                  |  |   |              |  
| | Shares
      issued at $0.00333 per share                                        |  | 3,109,800        |  |   | 10,356       |  
| | Shares issued at $0.0085
      per share                                         |  | 6,000,000        |  |   | 51,000       |  
| | Shares
      issued at $0.0087 per share                                         |  | 15,000,000       |  |   | 130,500      |  
| | Shares issued at $0.01
      per share                                           |  | 2,000,000        |  |   | 20,000       |  
| | Shares
      issued at $0.0118 per share                                         |  | 4,000,000        |  |   | 47,200       |  
| | Shares issued at $0.012
      per share                                          |  | 30,000,000       |  |   | 360,000      |  
| | Shares
      issued at $0.0125 per share                                         |  | 55,000,000       |  |   | 687,500      |  
| | Shares issued at $0.013
      per share                                          |  | 15,000,000       |  |   | 195,000      |  
| | Shares
      issued at $0.014 per share                                          |  | 20,000,000       |  |   | 280,000      |  
| | Shares issued at $0.0148
      per share                                         |  | 5,000,000        |  |   | 74,000       |  
| | Shares
      issued at $0.0154 per share                                         |  | 3,500,000        |  |   | 53,900       |  
| | Shares issued at $0.018
      per share                                          |  | 10,000,000       |  |   | 180,000      |  
| | Shares
      issued at $0.03 per share                                           |  | 25,000,000       |  |   | 750,000      |  
| | Shares issued for investor relation and
      shareholder communication service: |  |                  |  |   |              |  
| | Shares
      issued at $0.0051 per share                                         |  | 6,555,000        |  |   | 33,431       |  
| | Shares issued at $0.00644
      per share                                        |  | 2,112,069        |  |   | 13,602       |  
| | Shares
      issued at $0.01063 per share                                        |  | 505,927          |  |   | 5,378        |  
| | Shares issued at $0.0122
      per share                                         |  | 357,965          |  |   | 4,367        |  
| | Shares
      issued at $0.01392 per share                                        |  | 427,078          |  |   | 5,945        |  
| | Shares issued at $0.01478
      per share                                        |  | 353,379          |  |   | 5,223        |  
| | Shares
      issued at $0.01504 per share                                        |  | 376,430          |  |   | 5,662        |  
| | Shares issued at
      $0.016965 per share                                       |  | 342,343          |  |   | 5,808        |  
| | Shares
      issued at $0.01733 per share                                        |  | 345,493          |  |   | 5,987        |  
| | Shares issued at $0.0175
      per share                                         |  | 333,618          |  |   | 5,838        |  
| | Shares issued for commitment
      fees at $0.0096 per share                     |  | 100,000,000      |  |   | 960,000      |  
| | Shares issued for financing fees at $0.016 per
      share                       |  | 5,000,000        |  |   | 80,000       |  
| | Shares issued for legal fees
      at $0.0185 per share                          |  | 8,000,000        |  |   | 148,000      |  
| | Total shares issued for non-cash items                                           |  | 318,319,102      |  |   | 4,118,697    |  
| | Balance as of November 30, 2009                                                  |  | 1,577,667,073    |  | $ | 100,883,269  |  

F - 20

---

|SILVERADO GOLD MINES LTD. AND ITS SUBSIDIARIES
|----------------------------------------------
|(An Exploration Stage Company)                
|NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
|November 30, 2009 and 2008                    
|(Stated in United
      States Dollars)       

Note 11  Common Stock (Continued)

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

| |                                                                                |  |                  |  |   | Common Stock |  
| | ------------------------------------------------------------------------------ |  | ---------------- |  | - | ------------ | -
| |                                                                                |  | Number of Shares |  |   | Amount       |  
| |                                                                                |  |                  |  |   |              |  
| | Balance as of November 30, 2007                                                |  | 785,607,717      |  | $ | 89,374,641   |  
| | Shares issued for cash:                                                        |  |                  |  |   |              |  
| | Private
      placement at $0.03 per unit (1 unit = 1 share and 1/2 warrant)   |  | 35,000,000       |  |   | 1,050,000    |  
| | Private placement at
      $0.0325 per unit (1 unit = 1 share and 1/2 warrant) |  | 80,698,459       |  |   | 2,622,700    |  
| | Common
      stock purchase warrants exercised at $0.0125                      |  | 21,166,671       |  |   | 264,583      |  
| | Common stock purchase
      warrants exercised at $0.035                       |  | 22,164,254       |  |   | 775,749      |  
| | Commissions paid                                                               |  | -                |  |   | (409,601     | )
| | Total shares issued for cash                                                   |  | 159,029,384      |  |   | 4,303,431    |  
| | Shares issued for consulting
      fees:                                       |  |                  |  |   |              |  
| | Shares issued at $0.01
      per share                                         |  | 5,000,000        |  |   | 50,000       |  
| | Shares
      issued at $0.03 per share                                         |  | 25,000,000       |  |   | 750,000      |  
| | Shares issued at $0.06
      per share                                         |  | 1,000,000        |  |   | 60,000       |  
| | Shares
      issued at $0.10 per share                                         |  | 1,800,000        |  |   | 180,000      |  
| | Total shares issued for consulting fees                                        |  | 32,800,000       |  |   | 1,040,000    |  
| | Balance as of November 30, 2008                                                |  | 977,437,101      |  | $ | 94,718,072   |  

a)       Private Placements

For the fiscal year ended November 30, 2009

During the fiscal year ended November 30, 2009, the Company
completed private placements resulting in the issuance of an aggregate of
18,260,870 common shares at $0.0038 per share, 19,250,000 common shares at
$0.004 per share, 38,000,000 common shares at $0.0025 per share, 40,000,000
common shares at $0.005 per share and 18,500,000 common shares at $0.01 per
share. The Company received aggregate gross proceeds of $627,000 from such
private placements and paid related commission fees of $20,000 which was
recorded as a reduction of common stock.

In addition, during the fiscal year ended November 30, 2009,
the Company completed private placements resulting in the issuance of 34,500,000
common shares at a price of $0.01 per share. These private placements generated
gross proceeds of $345,000 from the sale of shares related to the Equity Line of
Credit Agreement (see Note 11(c), below). In accordance with the Equity Line of
Credit Agreement, the Company paid commission fees of $34,500 which was recorded
as a reduction of common stock.

During the fiscal year ended November 30, 2009, the Company
completed private placements resulting in the issuance of an aggregate of
56,400,000 units at $0.01 per unit. Each unit consisted of one share of common
stock and one common stock purchase warrant exercisable for a number of
additional shares of common stock equal to the number of units purchased, at a
per share exercise price of $0.02 within the one year period commencing from the
date of the subscription agreement. The Company received gross proceeds of
$564,000 from such private placements and paid commission fees of $5,000 which
was recorded as a reduction of common stock. Subsequent to November 30, 2009, a
subscription agreement related to 1,000,000 units was cancelled and issued units
were returned and cancelled accordingly.

During the fiscal year ended November 30, 2009, the Company
also completed private placements resulting in the issuance of an aggregate of
57,000,000 units at $0.01 per unit. Each unit consisted of one share of common
stock and one half-warrant, with a full warrant (consisting of two
half-warrants) being exercisable for one share of common stock at a per share
exercise price of $0.02 within the one year period commencing from the date of
the subscription agreement. The Company received proceeds of $570,000 from such
private placements.

F - 21

---

|SILVERADO GOLD MINES LTD. AND ITS SUBSIDIARIES
|----------------------------------------------
|(An Exploration Stage Company)                
|NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
|November 30, 2009 and 2008                    
|(Stated in United
      States Dollars)       

Note 11  Common Stock (Continued)

a)       Private Placements
(Continued)

As of November 30, 2009, the Company received $65,000 for the
sale of an aggregate of 6,500,000 common shares and 4,000,000 common stock
purchase warrants. Each common stock purchase warrant is exercisable for an
additional share of common stock at a per share exercise price of $0.02 within
the one year period commencing from the date of the subscription agreement. The
Company also received $35,000 for the sale of an aggregate of 10,000,000 units
at a price of $0.0035 per unit. Each unit consisted of one share of common stock
and one common stock purchase warrant exercisable at a per share exercise price
of $0.01 for the purchase of one share of common stock within the one year
period commencing from the subscription agreement. These private placements were
not completed as of November 30, 2009, as shares had not been issued as of such
date, but the purchase price received has been reflected as subscriptions
received in stockholders equity in the accompanying balance sheet. The Company
completed such private placements subsequent to November 30, 2009, as disclosed
in Note 18  Subsequent Events (b)  (d), below.

For the fiscal year ended November 30, 2008

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

b)       Common Stock Issued
under Equity Compensation Plans

A summary of common stock issued under equity compensation
plans (See Note 12(a)  Equity Compensation Plans, below) for the fiscal years
ended November 30, 2009 and 2008 is as follows:

|                                                          |  | 2009        |  |   | 2008      | 
|--------------------------------------------------------- |  | ----------- |  | - | --------- | 
|                                                          |  | Number of   |  |   | Value of  | 
|                                                          |  | Shares      |  |   | Shares    | 
|Shares issued for consulting fees:                        |  |             |  |   |           | 
|Recorded as consulting fees                               |  | 152,109,362 |  | $ | 2,230,816 | 
|Recorded as prepaid expenses                              |  | 41,500,438  |  |   | 608,640   | 
|Subtotal:                                                 |  | 193,609,800 |  |   | 2,839,456 | 
|Shares issued for legal fees:                             |  |             |  |   |           | 
|Recorded as legal fees                                    |  | 2,150,000   |  |   | 39,775    | 
|Recorded as prepaid expenses                              |  | 5,850,000   |  |   | 108,225   | 
|Subtotal:                                                 |  | 8,000,000   |  |   | 148,000   | 
|Shares issued for investor relations and                  |  |             |  |   |           | 
|shareholders communication services                       |  | 11,709,302  |  |   | 91,241    | 
|Total shares issued under equity compensation
      plans |  | 213,319,102 |  | $ | 3,078,697 | 

For the fiscal year ended November 30, 2009

During the fiscal year ended November 30, 2009, the Company
entered into several agreements for corporate planning, business development and
strategies, legal services and media solutions services. Pursuant to these
agreements, the Company issued an aggregate of 188,609,800 shares of the
Companys unrestricted free trading common stock and 5,000,000 shares of the
Companys restricted common stock, valued at the fair market price at the dates
of agreements, for total consideration of $2,839,456. Of this amount $2,230,816
was recorded as consulting fees and $608,640 was recorded as prepaid expenses.
These shares were issued under the Companys Equity Compensation Plans.

F - 22

---

|SILVERADO GOLD MINES LTD. AND ITS SUBSIDIARIES
|----------------------------------------------
|(An Exploration Stage Company)                
|NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
|November 30, 2009 and 2008                    
|(Stated in United
      States Dollars)       

Note 11  Common Stock (Continued)

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

For the fiscal year ended November 30, 2009 (Continued)

In addition, during the year ended November 30, 2009, the
Company entered into consulting agreements for investor relations and
shareholder communication services. Pursuant to these agreements, the Company
issued an aggregate of 11,709,302 shares of the Companys unrestricted free
trading common stock for total consideration of $91,241 which was recorded as
reporting and investor relations expenses. The Company also issued 8,000,000
shares of the Companys unrestricted free trading common stock to an attorney as
retainer. Such shares were valued at the fair market price at the date of the
engagement agreement, for total consideration of $148,000, of which $108,225 was
recorded as prepaid expenses and $39,775 was recorded as legal fees. These
shares were issued under the Companys Equity Compensation Plans (See Note 12(a)
 Equity Compensation Plans, below).

For the fiscal year ended November 30, 2008

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

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

On May 6, 2009, the Company entered into an Equity Line of
Credit Agreement with an accredited investor pursuant to which the Company could
have sold to the investor, if certain conditions were met, up to $100,000,000 in
shares of its common stock over the term of the agreement, unless earlier
terminated.

Upon execution, the Company issued to the investor 100,000,000
shares of the Companys common stock as payment of a commitment fee, with such
shares valued at the fair market price at the date of issuance ($0.0096 per
share on May 6, 2009). Such shares were deemed fully earned as of the date of
the agreement and therefore the fair market value of such shares ($960,000) was
included in consolidated statements of operations and other comprehensive loss
for the year ended November 30, 2009. As of November 30, 2009, the Company
raised $345,000 from the investor pursuant to the sale of an aggregate of
34,500,000 common shares at a price of $0.01 per share and paid related
commission fees of $34,500 (See Note 11(a)  Private Placements, above).

Subsequent to November 30, 2009, the Company issued a Notice of
Termination effective December 16, 2009 and terminated the Equity Line of Credit
Agreement (See Note 18(h)  Subsequent Events, above).

d)       Common Stock Issued
as Financing Expenses

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

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

a)       Equity Compensation
Plans and Stock Options

Equity Compensation Plans

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

F - 23

---

|SILVERADO GOLD MINES LTD. AND ITS SUBSIDIARIES
|----------------------------------------------
|(An Exploration Stage Company)                
|NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
|November 30, 2009 and 2008                    
|(Stated in United
      States Dollars)       

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

a)       Equity Compensation
Plans and Stock Options (Continued)

Equity Compensation Plans (Continued)

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

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

During fiscal year 2008, the Company issued an aggregate of
32,800,000 shares of the Companys common stock in payment of consulting fees
under the Companys Equity Compensation Plans adopted in fiscal year 2007.

A summary of common stock issued under equity compensation
plans during the fiscal years ended November 30, 2009 and 2008 are disclosed in
Note 11(b)  Common Stock Issued under Equity Compensation Plans, above.

Stock Options

There were no stock options granted and valued during fiscal
years November 30, 2009 and 2008. A summary of the change in outstanding and
exercisable stock options for the fiscal years ended November 30, 2009 and 2008
is as follows:

| |                              |  |                 |   |   |                 |  |  | Weighted         | 
| | ---------------------------- |  | --------------- | - | - | --------------- |  |  | ---------------- | 
| |                              |  | Outstanding and |   |   | Weighted        |  |  | Average          | 
| |                              |  | Exercisable     |   |   | Average         |  |  | Remaining        | 
| |                              |  | Options         |   |   | Excercise Price |  |  | Contractual Life | 
| | Balance, November 30, 2007   |  | 72,500,000      |   | $ | 0.057           |  |  | 4.43 years       | 
| | Options cancelled or expired |  | (2,100,000      | ) |   | 0.110           |  |  |                  | 
| |                              |  |                 |   |   |                 |  |  |                  | 
| | Balance, November 30, 2008   |  | 70,400,000      |   |   | 0.056           |  |  | 3.47 years       | 
| | Options cancelled or expired |  | (22,200,000     | ) |   | 0.055           |  |  |                  | 
| | Balance, November 30, 2009   |  | 48,200,000      |   | $ | 0.056           |  |  | 2.72
      years | 

The balance of outstanding and exercisable common stock options
as at November 30, 2009 is as follows:

|Number of Options |           | Remaining       
|----------------- | --------- | ----------------
|Outstanding and   | Exercise  | Contractual Life
|Exercisable       | Price     | (Years)         
|                  |           |                 
|2,600,000         | $    0.05 | 1.11            
|1,500,000         | 0.05      | 1.58            
|7,500,000         | 0.05      | 1.61            
|22,300,000        | 0.05      | 3.10            
|14,300,000        | 0.07      | 3.12            
|                  |           |                 
|48,200,000        |           |                 

F - 24

---

|SILVERADO GOLD MINES LTD. AND ITS SUBSIDIARIES
|----------------------------------------------
|(An Exploration Stage Company)                
|NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
|November 30, 2009 and 2008                    
|(Stated in United
      States Dollars)       

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

a)       Equity Compensation
Plans and Stock Options (Continued)

Fair Value Determination

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

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

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

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

There were no stock options granted during the years November
30, 2009 and 2008. Stock options granted prior to the fiscal year 2008 were
fully vested and related stock-based compensations were recorded prior to the
fiscal year 2008, accordingly.

b)       Common Stock Purchase
Warrants

During the year ended November 30, 2009, 40,349,230 of the
Companys outstanding common stock purchase warrants expired and 84,900,000
common stock purchase warrants were granted by the Company upon the completion
of private placements as of November 30, 2009. Each common stock purchase
warrant granted during the period is exercisable for one share of common stock
at a per share exercise price of $0.02 within the one year period commencing
from the date of the subscription agreement. There was no value assigned to
these warrants when they were granted.

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

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

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

A summary of the change in common stock purchase warrants
during the fiscal years ended November 30, 2009 and 2008 is as follows:

F - 25

---

|SILVERADO GOLD MINES LTD. AND ITS SUBSIDIARIES
|----------------------------------------------
|(An Exploration Stage Company)                
|NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
|November 30, 2009 and 2008                    
|(Stated in United
      States Dollars)       

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

b)       Common Stock Purchase
Warrants (Continued)

|                           |  |             |   |   |                 |  |  | Weighted         | 
|-------------------------- |  | ----------- | - | - | --------------- |  |  | ---------------- | 
|                           |  |             |   |   | Weighted        |  |  | Average          | 
|                           |  | Outstanding |   |   | Average         |  |  | Remaining        | 
|                           |  | Warrants    |   |   | Excercise Price |  |  | Contractual Life | 
|Balance, November 30, 2007 |  | 62,013,003  |   | $ | 0.110           |  |  | 0.32 years       | 
|Warrants issued            |  | 57,849,234  |   |   | 0.070           |  |  |                  | 
|Warrants exercised         |  | (43,330,925 | ) |   | 0.024           |  |  |                  | 
|Warrants expired           |  | (36,182,082 | ) |   | 0.108           |  |  |                  | 
|Balance, November 30, 2008 |  | 40,349,230  |   |   | 0.070           |  |  | 0.17 years       | 
|Warrants issued            |  | 84,900,000  |   |   | 0.020           |  |  |                  | 
|Warrants expired           |  | (40,349,230 | ) |   | 0.070           |  |  |                  | 
|Balance, November 30, 2009 |  | 84,900,000  |   | $ | 0.020           |  |  | 0.72
      years | 

The balance of outstanding and exercisable common stock
purchase warrants as of November 30, 2009 is as follows:

|                   |                            | Remaining       
|------------------ | -------------------------- | ----------------
|Number of Warrants |                            | Contractual Life
|Outstanding        | Exercise Price             | (Years)         
|84,900,000         | $            
       0.020 | 0.39 - 0.97     

Note 13  Income Taxes

Components of the Companys deferred tax assets at November 30,
2009 and 2008 are as follows:

|                                                                                              |   | 2009        |   |   | 2008        |  
|--------------------------------------------------------------------------------------------- | - | ----------- | - | - | ----------- | -
|Deferred tax assets, non-current:                                                             |   |             |   |   |             |  
|Remediation and reclamation costs                                                             | $ | 217,265     |   | $ | 215,999     |  
|Net operating loss carry forwards                                                             |   | 22,918,545  |   |   | 20,347,609  |  
|Temporary differences arising from mineral properties and
      building, plant and equipment |   | 1,999,996   |   |   | 2,749,873   |  
|Other adjustments                                                                             |   | (164,099    | ) |   | 435,474     |  
|Valuation Allowance                                                                           |   | (24,971,707 | ) |   | (23,748,955 | )
|                                                                                              | $ | -           |   | $ | -           |  

The Companys loss from operations before income taxes for the
years ended November 30, 2009 and 2008 consisted of the following:

|              |   | 2009      |  |   | 2008      | 
|------------- | - | --------- |  | - | --------- | 
|United States | $ | 1,462,929 |  | $ | 4,685,128 | 
|Canada        |   | 5,297,837 |  |   | 3,797,978 | 
|Total         | $ | 6,760,766 |  | $ | 8,483,106 | 

F - 26

---

|SILVERADO GOLD MINES LTD. AND ITS SUBSIDIARIES
|----------------------------------------------
|(An Exploration Stage Company)                
|NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
|November 30, 2009 and 2008                    
|(Stated in United
      States Dollars)       

Note 13  Income Taxes (Continued)

A reconciliation of the statutory rate and the effective income
tax rate is as follows:

|                                                                            |   | 2009       |   |   | 2008       |  
|--------------------------------------------------------------------------- | - | ---------- | - | - | ---------- | -
|Loss from operations before income tax                                      | $ | 6,760,766  |   | $ | 8,483,106  |  
|US statutory corporate income tax rate                                      |   | 34%        |   |   | 34%        |  
|                                                                            |   |            |   |   |            |  
|Income tax benefit computed at US statutory corporate
      income tax rate |   | 2,298,660  |   |   | 2,884,256  |  
|Reconciling items:                                                          |   |            |   |   |            |  
|State taxes                                                                 |   | 90,760     |   |   | 274,062    |  
|Difference in Canadian tax rates                                            |   | (238,402   | ) |   | (132,929   | )
|Tax loss expired during the year                                            |   | (1,153,099 | ) |   | (569,467   | )
|Temporary differences                                                       |   | 224,833    |   |   | (34,938    | )
|Change in valuation allowance on deferred tax assets                        |   | (1,222,752 | ) |   | (2,420,984 | )
|Income taxes                                                                | $ | -          |   | $ | -          |  

The Company adopted the provisions of FASB ASC 740, Income
Taxes effective December 1, 2007. FASB ASC 740 prescribes the use of the
liability method thereby deferred tax asset and liability account balances are
determined based on differences between the financial reporting and tax bases of
assets and liabilities and are measured using the enacted tax rates and laws
that will be in effect when the differences are expected to reverse. The
cumulative effect of applying the provisions of this interpretation are required
to be reported separately as an adjustment to the opening balance of retained
earnings in the year of adoption. The adoption of FASB ASC 740-10 did not have a
material impact on the Companys financial position and results of
operations.

The Company is subject to Canada federal and provincial income
tax and has concluded substantially all Canada federal and provincial tax
matters for tax years through November 30, 2003. The tax filings for years from
2004 to 2009 are subject to be audited by Canadian jurisdictions. The Companys
U.S. subsidiaries are also subject to U.S. federal and state income tax and have
concluded substantially all U.S. federal and state income tax matters for tax
years through November 30, 2006. The tax filings for years from 2007 to 2009 are
subject to be audited by U.S. jurisdictions.

Deferred income tax assets are determined based on differences
between the financial statement reporting and tax bases of assets and
liabilities and are measured using the enacted tax rates and laws in effect when
the differences are expected to reverse. The measurement of deferred income tax
assets is reduced, if necessary, by a valuation allowance for any tax benefits,
which are, on a more likely than not basis, not expected to be realized. The
effect on deferred income tax assets and liabilities of a change in tax rates is
recognized in the period that such tax rate changes are enacted.

As of November 30, 2009, the Company had losses carried forward
totaling $38,107,000 available to reduce future years income for U.S. income
tax purposes which expire in various years to 2029. In addition, the Company had
losses carried forward in Canada totaling CDN$28,603,000 which expire in various
years to 2029.

Note 14  Segment Disclosures

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

F - 27

---

|SILVERADO GOLD MINES LTD. AND ITS SUBSIDIARIES
|----------------------------------------------
|(An Exploration Stage Company)                
|NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
|November 30, 2009 and 2008                    
|(Stated in United
      States Dollars)       

Note 14  Segment Disclosures (Continued)

Loss by geographical segment for the fiscal year ended November
30, 2009 is as follows:

|                                                       |   | Canada    |  |   | United States |   |   | Total     |  
|------------------------------------------------------ | - | --------- |  | - | ------------- | - | - | --------- | -
|General and administrative expenses                    |   |           |  |   |               |   |   |           |  
|Accounting and audit                                   | $ | 112,724   |  | $ | 4,200         |   | $ | 116,924   |  
|Advertising, promotion and
      travel                |   | 36,170    |  |   | 29,143        |   |   | 65,313    |  
|Consulting fees                                        |   | 2,576,698 |  |   | 8,000         |   |   | 2,584,698 |  
|Depreciation, accretion and
      impairment           |   | 106,176   |  |   | 109,907       |   |   | 216,083   |  
|Exploration expenses                                   |   | -         |  |   | 868,940       |   |   | 868,940   |  
|Financing activities                                   |   | 80,000    |  |   | -             |   |   | 80,000    |  
|Legal and other professional fees                      |   | 295,670   |  |   | 392           |   |   | 296,062   |  
|Management services                                    |   | 374,510   |  |   | 405,241       |   |   | 779,751   |  
|Office expenses                                        |   | 297,330   |  |   | 45,010        |   |   | 342,340   |  
|Related party charges in
      excess of cost incurred |   | 158,643   |  |   | (191,423      | ) |   | (32,780   | )
|Reporting and investor relations                       |   | 360,108   |  |   | 121           |   |   | 360,229   |  
|Transfer agent and filing fees                         |   | 92,957    |  |   | 8,084         |   |   | 101,041   |  
|Write-down of property, plant and equipment            |   | -         |  |   | 12,254        |   |   | 12,254    |  
|Total expenses                                         |   | 4,490,986 |  |   | 1,299,869     |   |   | 5,790,855 |  
|Gold income earned during the exploration stage        |   | -         |  |   | (8,660        | ) |   | (8,660    | )
|Other expenses                                         |   | 715,493   |  |   | 171,720       |   |   | 887,213   |  
|Net loss                                               |   | 5,206,479 |  |   | 1,462,929     |   |   | 6,669,408 |  
|Loss on foreign exchange                               |   | 91,358    |  |   | -             |   |   | 91,358    |  
|Comprehensive loss for the year                        | $ | 5,297,837 |  | $ | 1,462,929     |   | $ | 6,760,766 |  

Loss by geographical segment for the fiscal year ended November
30, 2008 is as follows:

|                                                       |   | Canada    |  |   | United States |   |   | Total     |  
|------------------------------------------------------ | - | --------- |  | - | ------------- | - | - | --------- | -
|General and administrative expenses                    |   |           |  |   |               |   |   |           |  
|Accounting and audit                                   | $ | 238,668   |  | $ | 89,595        |   | $ | 328,263   |  
|Advertising, promotion
      and travel                |   | 154,051   |  |   | 58,224        |   |   | 212,275   |  
|Consulting fees                                        |   | 731,069   |  |   | 452,062       |   |   | 1,183,131 |  
|Depreciation, accretion
      and impairment           |   | 116,075   |  |   | 218,146       |   |   | 334,221   |  
|Exploration expenses                                   |   | -         |  |   | 2,287,192     |   |   | 2,287,192 |  
|Legal and other
      professional fees                |   | 558,590   |  |   | 80            |   |   | 558,670   |  
|Management services                                    |   | 734,529   |  |   | 120,000       |   |   | 854,529   |  
|Office expenses                                        |   | 440,397   |  |   | 397,091       |   |   | 837,488   |  
|Related party charges in excess of cost
      incurred |   | 330,176   |  |   | 846,750       |   |   | 1,176,926 |  
|Reporting and investor
      relations                 |   | 402,392   |  |   | 40,340        |   |   | 442,732   |  
|Research                                               |   | -         |  |   | 295,045       |   |   | 295,045   |  
|Transfer agent and
      filing fees                   |   | 67,260    |  |   | 50            |   |   | 67,310    |  
|Write-down of property, plant and
      equipment      |   | -         |  |   | 31,550        |   |   | 31,550    |  
|Total expenses                                         |   | 3,773,207 |  |   | 4,836,125     |   |   | 8,609,332 |  
|Gold income earned during the exploration stage        |   | -         |  |   | (280,783      | ) |   | (280,783  | )
|Other expenses                                         |   | 221       |  |   | 129,786       |   |   | 130,007   |  
|Net loss                                               |   | 3,773,428 |  |   | 4,685,128     |   |   | 8,458,556 |  
|Loss on foreign exchange                               |   | 24,550    |  |   | -             |   |   | 24,550    |  
|Comprehensive loss for the year                        | $ | 3,797,978 |  | $ | 4,685,128     |   | $ | 8,483,106 |  

F - 28

---

|SILVERADO GOLD MINES LTD. AND ITS SUBSIDIARIES
|----------------------------------------------
|(An Exploration Stage Company)                
|NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
|November 30, 2009 and 2008                    
|(Stated in United
      States Dollars)       

Note 14  Segment Disclosures (Continued)

Assets by geographical segment as of the fiscal years ended
November 30, 2009 and 2008 is as follows:

|As of November 30, 2009                  |   | Canada    |  |   | United States |  |   | Total     | 
|---------------------------------------- | - | --------- |  | - | ------------- |  | - | --------- | 
|Current assets                           | $ | 720,088   |  | $ | 24,701        |  | $ | 744,789   | 
|Mineral rights                           |   | -         |  |   | 1,398,601     |  |   | 1,398,601 | 
|Property, plant and equipment,
      net |   | 423,121   |  |   | 578,888       |  |   | 1,002,009 | 
|Total assets, as of November 30, 2009    | $ | 1,143,209 |  | $ | 2,002,190     |  | $ | 3,145,399 | 
|                                         |   |           |  |   |               |  |   |           | 
|As of November 30, 2008                  |   |           |  |   |               |  |   |           | 
|Current assets                           | $ | 434,102   |  | $ | 50,353        |  | $ | 484,455   | 
|Mineral rights                           |   | -         |  |   | 1,197,591     |  |   | 1,197,591 | 
|Property, plant and equipment,
      net |   | 526,118   |  |   | 1,105,706     |  |   | 1,631,824 | 
|Total assets, as of November 30, 2008    | $ | 960,220   |  | $ | 2,353,650     |  | $ | 3,313,870 | 

Note 15  Supplemental Cash Flow Information

Investing and financing activities that do not have a direct
impact on current cash flows are excluded from the cash flow statements. A
summary of non-cash transactions and other cash information for the fiscal years
ended November 30, 2009 and 2008 is as follow:

|                                                                              |   | Years
      Ended November 30, | 
|----------------------------------------------------------------------------- | - | ------------------------------ | 
|                                                                              |   | 2009                           | 
|Changes in non-cash financing and investing
      activities:                 |   |                                | 
|Common stock issued for consulting fees
      and other expenses              | $ | 2,441,832                      | 
|Common stock issued for
      prepaid consulting and other service fees       |   | 716,865                        | 
|Common stock issued for commitment fees                                       |   | 960,000                        | 
|Common shares issued for
      subscriptions received                         |   | -                              | 
|Mineral claims royalty payable changes
      at period-end for mineral rights |   | 80,000                         | 
|Loss on disposal of property,
      plant and equipment                       |   | 168,146                        | 
|Write-down of property, plant and equipment                                   |   | 12,254                         | 
|                                                                              |   |                                | 
|Other cash flow information:                                                  |   |                                | 
|Interest paid                                                                 | $ | 12,292                         | 

Note 16  Commitments and Contingencies

a)       Severance Agreement
with Director

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

F - 29

---

|SILVERADO GOLD MINES LTD. AND ITS SUBSIDIARIES
|----------------------------------------------
|(An Exploration Stage Company)                
|NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
|November 30, 2009 and 2008                    
|(Stated in United
      States Dollars)       

Note 16  Commitments and Contingencies (Continued)

b)       Indemnity Agreements
with Directors

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

Subsequent to November 30, 2009, the Company entered into
Indemnity Agreements (Agreements) dated December 23, 2009, with each of its
directors and executives, Garry L. Anselmo, Stuart McCulloch, Donald G.
Balletto, Robert M. Dynes, and John Mackay (collectively, the Executives).
These agreements supersede all prior agreements whether oral or written.
Pursuant to the terms of the Agreements, the Company granted a general
indemnification to the Executives against all claims and costs that arise out of
the scope or performance of duties as a director or executive officer of the
Company. The Agreements are conclusively deemed to commence on, and be effective
as of, the day upon which the Executive first became or becomes a director or
officer of the Company and survive and remain in full force and effect after the
Executive ceases to be a director or officer of the Company and after the
termination of the Executives employment with the Company.

c)       Office Lease

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

| | Year ending November 30, 2010 | $ | 123,682 | 
| | ----------------------------- | - | ------- | 
| | Year ending November 30, 2011 |   | 123,682 | 
| | Year ending November 30, 2012 |   | 125,268 | 
| | Year ending November 30, 2013 |   | 128,439 | 
| | Year ending November 30, 2014 |   | 85,626  | 
| |                               | $ | 586,697 | 

Note 17  Legal Proceedings

On July 24, 2008, Smith Canciglia Consulting, Inc. (SCC)
filed a complaint against the Company and Garry L. Anselmo in Circuit Court,
Loudoun County, Virginia following a dispute concerning the terms of a
Consulting Agreement to which SCC and the Company were parties. The complaint
sought compensatory damages in the amount of $1,535,366 (plus prejudgment
interest), $3,000,000 in punitive damages, $3,450,000 as part of a trebling of
damages on a state unfair business act claim, and attorneys fees. The Company
and Mr. Anselmo thereafter caused the case to be successfully removed to the
U.S. District Court, Eastern District of Virginia, and filed a motion to dismiss
with the court. On September 30, 2008, SCC voluntarily dismissed the case
against the Company and Mr. Anselmo.

On February 20, 2009, the Company and SCC entered into a
Release and Settlement Agreement. Pursuant to the agreement, the Company has
paid US $25,000 and issued 3,109,800 shares valued at $10,356 in accordance with
the agreement to reimburse SCC for its claimed expenses. The company had also
issued 15,000,000 unrestricted free trading shares of the Companys common
stock, valued at the fair market price at the date of the agreement, for total
consideration of $130,500 as consulting fees.

Management believes that no other pending legal proceedings
will materially affect the Companys financial statements.

F - 30

---

|SILVERADO GOLD MINES LTD. AND ITS SUBSIDIARIES
|----------------------------------------------
|(An Exploration Stage Company)                
|NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
|November 30, 2009 and 2008                    
|(Stated in United
      States Dollars)       

Note 18  Subsequent Events

Subsequent to November 30, 2009, the following events took
place:

|a) | In December 2009, a subscription agreement for the sale
      of 1,000,000 units, at a price of $0.01 per unit, was cancelled and all
      issued units were returned and cancelled accordingly (See Note 11(a) 
      Private Placements, above).                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               
|-- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    
|b) | The Company completed private placements resulting in the
      issuance of an aggregate of 1,500,000 units at $0.01 per unit. Each unit
      consisted of one share of common stock and one common stock purchase
      warrant exercisable for a number of additional shares of common stock
      equal to the number of units purchased, at a per share exercise price of
      $0.02 within the one year period commencing from the date of the
      subscription agreement. The Company received proceeds of $15,000 from such
      private placements.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    
|c) | The Company completed a private placement resulting in
      the issuance of 5,000,000 units at $0.01 per unit. Each unit consisted of
      one share of common stock and one half-warrant, with a full warrant
      (consisting of two half-warrants) being exercisable for one share of
      common stock at a per share exercise price of $0.02 within the one year
      period commencing from the date of the subscription agreement. The Company
      received gross proceeds of $50,000 from such private placement.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    
|d) | The Company completed private placements resulting in the
      issuance of an aggregate of 31,500,001 units at $0.0035 per unit. Each
      unit consisted of one share of common stock and one common stock purchase
      warrant exercisable for a number of additional shares of common stock
      equal to the number of units purchased, at a per share exercise price of
      $0.01 within the one year period commencing from the date of the
      subscription agreement. The Company received proceeds of $110,250 from
      such private placements.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    
|e) | The Company received $85,526 in consideration for the
      sale of an aggregate of 24,436,000 units at a price of $0.0035 per unit.
      These private placements have not yet been completed as units have not
      been issued.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    
|f) | The Company entered into several consulting and other
      service agreements for various corporate planning, business development
      and strategies, media solutions and legal, etc. services. Pursuant to
      these consulting and other agreements, the Company issued an aggregate of
      36,701,971 shares of the Companys unrestricted free trading common stock.
      These shares were issued under the Companys Equity Compensation
    Plans.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    
|g) | Effective on December 11, 2009, the Company effected the
      2009-III Equity Compensation Plan (the Plan) to encourage certain
      directors, officers, employees, and consultants of the Company to acquire
      and hold stock in the Company as an added incentive to remain with the
      Company and to increase their efforts in promoting the interests of the
      Company and to enable the Company to attract and retain capable
      individuals. The number of shares issued under the Plan may not exceed
      120,000,000 in aggregate. On December 16, 2009, the Company filed a
      registration statement on Form S-8 to register all 120,000,000 of such
      shares.                                                                                                                                                                                                                                                                                                                                                              
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    
|h) | On December 16, 2009, the Company terminated the Equity
      Line of Credit Agreement, dated May 6, 2009, by and between the Registrant
      and Ashborne Finance, Ltd., a British Virgin Islands corporation
      (Ashborne) (See Note 11(c)  Common Stock Issued As Commitment Fee under
      Equity Line of Credit, above). A copy of the agreement was included as
      Exhibit 99.1 to the Companys Current Report on Form 8-K filed on May 12,
      2009. The Company terminated the Equity Line Agreement in connection with
      its efforts to secure alternate sources for capital.                                                                                                                                                                                                                                                                                                                                                                                                                                                           
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    
|i) | The Company entered into Indemnity Agreements
      (Agreements) dated December 23, 2009, with each of its directors and
      executive offices, Garry L. Anselmo, Stuart McCulloch, a related party,
      Donald G. Balletto, Robert M. Dynes, and John Mackay (collectively, the
      Executive). These agreements supersede all prior agreements whether oral
      or written. Pursuant to the terms of the Agreements, the Company granted a
      general indemnification to the Executive against all claims and costs that
      arise out of the scope or performance of duties as a director or executive
      officer of the Company. The Agreements are conclusively deemed to commence
      on, and be effective as of, the day upon which the Executive first became
      or becomes a director or officer of the Company and survive and remain in
      full force and effect after the Executive ceases to be a director or
      officer of the Company and after the termination of the Executives
      employment with the Company.

F - 31

---

|SILVERADO GOLD MINES LTD. AND ITS SUBSIDIARIES
|----------------------------------------------
|(An Exploration Stage Company)                
|NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
|November 30, 2009 and 2008                    
|(Stated in United
      States Dollars)       

Note 18  Subsequent Events (Continued)

|j) | On January 22, 2010, the Company entered into a Note
      Purchase Agreement (the Agreement) with St. George Investments, LLC
      (St. George). Pursuant to the terms of the Agreement, the Company issued
      and sold a convertible promissory note, dated January 22, 2010 (the
      Note) to St. George for the purchase price of $80,000. An origination
      fee of $5,000 was paid by the Company to St. George from the proceeds of
      the sale of the Note.                                                                                                                                                                                                                                          
|-- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               
|   | The Note provides that interest on the unpaid principal
      balance of the Note shall not accrue unless a trigger event occurs. The
      details of a trigger event are disclosed the Companys Current Report on
      Form 8-K filed on January 28, 2010. Upon the occurrence of a trigger
      event, the principal balance of the Note shall accrue interest at a rate
      of 1.5% per month and St. George will have the option to either (i)
      increase the Outstanding Amount to 110% of the Outstanding Amount, or (ii)
      subtract 10% from the Conversion Factor.                                                                                                                                      
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               
|   | Unless sooner converted by St. George, the Note shall
      mature on the earlier of March 15, 2010 and the first date on which the
      Company and St. George complete an additional investment. The Note
      provides St. George with the option, at any time prior to payment in full
      by the Company, to convert the outstanding amount into shares of the
      Companys common stock. The number of common shares to be issued upon
      conversion shall be determined by dividing the outstanding amount by 70%
      of the average of the three lowest closing bid prices for the Companys
      common stock for the twenty trading days immediately preceding the date of
      the conversion notice.
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               
|   | In the event that St. George sends written notice to the
      Registrant that St. George is prepared to complete an additional
      investment, and the additional investment is not consummated primarily due
      to the Companys failure to close for any reason, then for every 30 day
      period following the maturity date that the Company fails to close, the
      principal balance of the Note shall increase by $25,000 plus St. Georges
      reasonable legal and transaction fees. The Company may prepay the Note in
      whole or in part at any time prior to the maturity date. The Note shall
      become due and payable upon a change in control of the Company.                              
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               
|k) | The Company received $30,000 and issued 10,000,000 shares
      of the Companys common stock for warrants exercise.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               
|l) | On March 1, 2010, the Company sold and issued a
      promissory note to an investor for the purchase price of $50,000. The
      unpaid principal balance of the note bears interest at a rate equal to
      twelve percent (12%) per annum if repaid by the Company within ninety (90)
      days from the date of the note, or eighteen percent (18%) per annum if
      repaid at any time thereafter. The note matures on September 1,
    2010.                                                                                                                                                                                                                                                                        

In preparing the Companys consolidated financial statements,
management has evaluated events subsequent to November 30, 2009 through March
12, 2010.

F - 32

---

ITEM 9. CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS ON ACCOUNTING AND FINANCIAL DISCLOSURE.

None.

ITEM 9A(T). CONTROLS AND PROCEDURES.

Evaluation of Disclosure Controls and Procedures and
Internal Control Over Financial Reporting

As required by Rule 13a-15 under the Securities Exchange Act of
1934 (the Exchange Act), we evaluated the effectiveness of our disclosure
controls and procedures and our internal control over financial reporting as of
the end of the period covered by this annual report. This evaluation was carried
out under the supervision and with the participation of our Chief Executive
Officer and former Chief Financial Officer, Garry L. Anselmo (CEO) and our
current Chief Financial Officer, Donald Balletto (CFO). 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 as of the end of the period covered by this report were
effective to ensure that the information we are required to disclose in the
reports filed under the Exchange Act is (i) recorded, processed, summarized and
reported within the time periods specified in the SECs rules and forms and (ii)
accumulated and communicated to our management, including our CEO and CFO, as
the principal executive and financial officers, respectively, to allow timely
decisions regarding required disclosure. It was also determined that there were
no changes that had a material effect on, or are reasonably likely to materially
affect, our internal control over financial reporting.

The term internal control over financial reporting is defined
as a process designed 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.                                                                                                                       

This annual report does not include an attestation report of
the Company's registered public accounting firm regarding internal control over
financial reporting. Management's report was not subject to attestation by the
Company's registered public accounting firm pursuant to temporary rules of the
Securities and Exchange Commission that permit the Company to provide only
management's report in this annual report.

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

ITEM 9B. OTHER INFORMATION.

Not applicable.

71

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PART III

ITEM 10.DIRECTORS, EXECUTIVE OFFICERS, AND CORPORATE
GOVERNANCE

Our current executive officers and directors are:

|Name                       | Age | Position                                                                        
|-------------------------- | --- | --------------------------------------------------------------------------------
|Garry L. Anselmo (2)       | 66  | Chairman of the
      Board of Directors; President, and Chief Executive Officer
|Stuart C. McCulloch (1)(2) | 74  | Director                                                                        
|Robert Dynes (1)(2)        | 47  | Director                                                                        
|Donald G. Balletto         | 65  | Director and Chief Financial
      Officer                                      
|John R. Mackay             | 77  | Secretary                                                                       

|(1) | Member of Silverado's Audit Committee         
|--- | ----------------------------------------------
|(2) | Member of Silverados Compensation
  Committee

Set forth below is a brief description of the background and
business experience of each of our executive officers and directors:

Garry L. Anselmo

Mr. Anselmo is presently the chairman of our board of directors
and is our president, chief executive officer and former chief financial
officer. Mr. Anselmo has been the chairman of our board of directors and our
chief operating officer since 1973. Mr. Anselmo has been our president and chief
executive officer from 1973 to 1994 and from 1997 to present. Mr. Anselmo was
our chief financial officer from 1973 to 1994 and from 1997 to June 2009.

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.

Stuart C. McCulloch

Mr. McCulloch has been one of our directors since December 14,
1998. Mr. McCulloch retired as district manager from Canada Safeway in January,
1991.

Donald G. Balletto

Mr. Balletto has been one of our directors and our chief
financial officer since June 2009. Mr. Balletto graduated from Cal State
University in 1969 with a Bachelor of Science in Business Administration
(Accounting). He began his professional career in 1970 as an accountant with
Rooney, Ida, Nolt & Ahern, Certified Public Accountants, Oakland,
California. He worked with Canada Safeway from 1973 until 2006 when he retired
as Director of Labour Relations, BC Division Canada Safeway Ltd., Vancouver,
BC.

Robert Dynes

Mr. Dynes has been one of our directors since March 2009. Mr.
Dynes graduated with a B. Sc. in Biology from McMaster University in 1986. Mr.
Dynes obtained a securities license from the Ontario Securities Commission in
1991 and was a stockbroker from 1992 to 1997 with McDermid St. Lawrence
Securities/Raymond James, specializing in penny mining companies. Mr. Dynes has
worked on occasion, during the mid-1980s to the early 2000s, for Hill, Goettler,
DeLaporte Ltd. and Firth, Goettler Ltd. prospecting for gold in the Geralton,
Pickle Lake, and Red Lake mining districts in Northern Ontario. Since December
19, 2001 to the present, Mr. Dynes has performed investor relations services,
through a private company controlled by Mr. Dynes, for the Company.

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.

72

---

Family Relationships

Mr. Anselmo and Mr. McCulloch, each of whom is one of our
directors, are cousins.

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 December 9, 2008.

Audit Committee

Our audit committee is comprised of Stuart McCulloch and Robert
Dynes. Mr. McCulloch serves as the chairman of the audit committee. 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 most recent fiscal year.

Compensation Committee Interlocks and Insider Participation

Our compensation committee consists of Garry L. Anselmo, Stuart
McCulloch and Robert Dynes. Mr. Anselmo serves as the chairman of the
compensation committee. The compensation committee has overall responsibility
for approving and evaluating the executive officer compensation plans, policies
and programs of the Company and administering the Companys equity compensation
plans.

Code of Ethics

We have adopted a Code of Ethics that meets the requirements of
Section 406 of the Sarbanes-Oxley Act of 2002. Our Code of Ethics can be
reviewed on our corporate website located at www.silverado.com. 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, 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.

Section 16(a) Beneficial Ownership Reporting Compliance

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 11. EXECUTIVE COMPENSATION.

Executive Compensation

The following summary compensation table sets forth certain
compensation information for the Companys named executive officer. No other
officer of the Company received compensation in excess of $100,000 during the
fiscal year ended November 30, 2009.

73

---

|SUMMARY COMPENSATION TABLE                                                         
|-----------------------------------------------------------------------------------
|Name and 
        principal 
        position (a)                                  
|Garry L Anselmo, 
        Principal Executive 
        Officer, President, Director
|2008                                                                               

We are party to a severance 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.

Outstanding Equity Awards At Fiscal
Year-End

The following table sets forth information regarding
outstanding equity awards of our named executive officer at our fiscal year
ended November 30, 2009.

|OUTSTANDING
        EQUITY AWARDS AT FISCAL YEAR-END                     
|-------------------------------------------------------------------------
|OPTION
        AWARDS                                                    
|Name 
      (a)                                                          
|Garry L. Anselmo, 
        Principal Executive
        Officer, President
|15,000,000                                                               
|6,000,000                                                                
|2,500,000                                                                
|Total                                                                    

Director Compensation

The following table sets forth compensation information for the
Companys directors during fiscal year 2009.

74

---

|Name (a)                  | Fees earned or paid in cash ($)
      (b) | Stock Awards ($) (c) | Option Awards ($) (d) | Non-Equity Incentive Plan
      Compensation ($) (e) | Nonqualified Deferred Compensation
      Earnings ($) (f) | All Other Compensation ($)
      (g) | Total ($) (h)
|------------------------- | ----------------------------------------- | -------------------- | --------------------- | ---------------------------------------------------- | --------------------------------------------------------- | ------------------------------------ | -------------
|Stuart C.
      McCulloch | 0                                         | 0                    | 0                     | 0                                                    | 0                                                         | 0                                    | 0            
|Robert Dynes              | 0                                         | 0                    | 0                     | 0                                                    | 0                                                         | 0                                    | 0            
|Donald G. Balletto        | 0                                         | 0                    | 0                     | 0                                                    | 0                                                         | 0                                    | 0            

ITEM 12. 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 January 31, 2010 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 and named executive officer of the Company, and (iii) all
directors and executive officers of the Company as a group. As of January 31,
2010, 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.

|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    | 37,550,007(2)                 | 2.30%                               
|Common Shares  | Robert Dynes, Director                                                  | 4,079,600(3)                  | 0.25%                               
|Common Shares  | Stuart McCulloch, Director                                              | 6,633,400(4)                  | 0.41%                               
|Common Shares  | All Directors and Named
      Executive Officers as a Group (3 persons) | 48,263,007 (5)                | 2.95%                               

|(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, 2010. As of February 15, 2010,
      there were 1,633,369,045 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 33,500,000 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 3,579,600 shares held directly and indirectly
      by Robert Dynes and 500,000 shares that can be acquired by Mr. Dynes upon
      exercise of options to purchase shares held by Mr. Dynes within 60 days of
      the date hereof.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                
|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  
|(4) | Consists of 33,400 shares held by Stuart McCulloch and
      6,600,000 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 7,663,007 shares held by our directors and
      executive officers and 40,600,000 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.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 

75

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Changes in Control

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

Securities Authorized For Issuance Under Equity
Compensation Plans

Set forth in the table below is information regarding
outstanding equity awards made under equity compensation plans through November
30, 2009, the end of the most recently completed fiscal year.

|                                                               |                                               |        | Number of        |  |     | Weighted         |  |     | Number of     | 
|-------------------------------------------------------------- | --------------------------------------------- | ------ | ---------------- |  | --- | ---------------- |  | --- | ------------- | 
|                                                               |                                               |        | securities to be |  |     | average exercise |  |     | securities    | 
|                                                               |                                               |        | issued upon      |  |     | price of         |  |     | available for | 
|                                                               |                                               |        | exercise of      |  |     | outstanding      |  |     | future plan   | 
|                                                               |                                               |        | outstanding      |  |     | options,         |  |     | issuance      | 
|                                                               |                                               |        | options,         |  |     | warrants, and    |  |     |               | 
|                                                               |                                               |        | warrants, and    |  |     | rights           |  |     |               | 
|Plan
    Category                                              |                                               | rights |                  |  |     |                  |  |     |              
|Equity compensation plans approved by security holders         |                                               | N/A    |                  |  | N/A |                  |  | N/A |              
|Equity compensation plans not approved by
    security holders |                                               |        |                  |  |     |                  |  |     |              
|                                                               |                                               |        |                  |  |     |                  |  |     |               | 
|                                                               | 2009-II Equity Compensation
      Plan        |        | N/A              |  |     | N/A              |  |     | N/A           | 
|                                                               | 2009 Equity Compensation Plan                 |        | N/A              |  |     | N/A              |  |     | N/A           | 
|                                                               | 2007-I Equity
      Compensation Plan         |        | N/A              |  |     | N/A              |  |     | N/A           | 
|                                                               | 2007 Stock Option Plan                        |        | 14,300,000       |  |     | $ 0.07           |  |     | N/A           | 
|                                                               | Equity Compensation Plans
      Prior to 2007 |        | 33,900,000       |  |     | $ 0.05           |  |     | N/A           | 

On June 1, 2009, our Board of Directors adopted the 2009-II
Equity Compensation Plan (the 2009-II Plan) to encourage certain directors,
officers, employees, and consultants of the Company to acquire and hold stock in
the Company as an added incentive to remain with the Company, to increase their
efforts in promoting the interests of the Company and to enable the Company to
attract and retain capable individuals. The number of shares issued under the
Plan may not exceed 80,000,000 in aggregate. The 2009-II Plan is administered by
a Committee and the committee made up of at least three members of the Board of
Directors. Such Committee consists of at least two non-employee Directors (the
Committee). On June 1, 2009, the Company filed a registration statement on
Form S-8 to register all 80,000,000 of such shares. During the fiscal year ended
November 30, 2009, all 80,000,000 of such shares were issued to various
consultants for consulting and other services.

On January 29, 2009, our Board of Directors adopted the 2009
Equity Compensation Plan (the 2009 Plan) to encourage certain directors,
officers, employees, and consultants of the Company to acquire and hold stock in
the Company as an added incentive to remain with the Company, to increase their
efforts in promoting the interests of the Company and to enable the Company to
attract and retain capable individuals. The number of shares issued under the
Plan may not exceed 130,000,000 in aggregate. The 2009 Plan is administered by
the Committee. On January 29, 2009, the Company filed a registration statement
on Form S-8 to register all 130,000,000 of such shares. During the fiscal year
ended November 30, 2009, all 130,000,000 of such shares were issued to various
consultants for consulting and other services.

During the fiscal year ended November 30, 2009, there were no
stock options granted under any equity compensation plan. Pursuant to several
consulting and other agreements, the Company issued an aggregate of 213,319,102
shares of the Companys common stock under equity compensation plans in payment
of consulting fees and other expenses, valued at the fair market price on the
effective dates of the consulting agreements or based on the terms in the
agreements.

No equity compensation plan was adopted and no options were
granted under any equity compensation plan by the Company during the fiscal year
ended November 30, 2008. However, during fiscal year 2008, the Company issued an
aggregate of 32,800,000 shares of the Companys common stock in payment of
consulting fees under equity compensation plans adopted prior to fiscal year
2008.

76

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ITEM 13. CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS, AND
DIRECTOR INDEPENDENCE.

(a)      Service Agreements

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

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

For the fiscal year ended November 30, 2009, the Tri-Con
Groups services focused mainly on corporate planning, drilling, engineering
planning and preparation for production on the Companys Nolan property;
equipment and property maintenance; and administration services at both the
field and corporate offices. During the fiscal year ended November 30, 2009,
Tri-Con Mining Inc. forgave $600,000 of current year billings to the Company in
recognition of the Companys cash flow constraints. As of November 30, 2009,
after the adjustment of $600,000, Silverado owed $1,064,046 (November 30, 2008:
$1,076,881) to the Tri-Con Group for exploration and administration services
rendered. The amounts are non-interest bearing and due on demand.

The following is a summary of the aggregate amounts billed by
the Tri-Con Group for disbursements and for services rendered by the Tri-Con
Group personnel during the fiscal years ended November 30, 2009 and 2008:

|                                                                                   |   | 2009      |    |   | 2008      | 
|---------------------------------------------------------------------------------- | - | --------- | -- | - | --------- | 
|Mineral exploration and administration
      services                              | $ | 1,566,374 |    | $ | 3,878,670 | 
|General administration and management services                                     |   | 552,227   |    |   | 1,192,353 | 
|Amounts forgiven by Tri-Con Group                                                  |   | (600,000  | )  |   | -         | 
|                                                                                   | $ | 1,518,601 |    | $ | 5,071,023 | 
|                                                                                   |   |           |    |   |           | 
|Amount of total charges (less than) in excess of the cost                          | $ | (32,780   | )  | $ | 1,176,926 | 
|                                                                                   |   |           |    |   |           | 
|Percentage of (shortage) excess of the cost charged over
      total amount billed |   | (2.16     | )% |   | 23.21%    | 

Included in the Tri-Con Group bills, Tri-Con Group billed the
Company CDN $75,000 (2008: CDN $150,000) plus 15% office overhead as the cost
plus markups for services performed on behalf of Silverado by a Tri-Con Group
employee who is related to a director and officer of the Company.

(b)      Consulting Agreement

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

Stock Option Grants

No stock options were granted to directors or executive
officers during the fiscal years ended November 30, 2009 and 2008.

Director Independence

77

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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-K
regarding director independence, we have used the definition of independent
director set forth in the Marketplace Rules of The NASDAQ, 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 Stuart McCulloch and
Robert Dynes are independent directors.

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        | 
|                    |   | 2009               | 
|Audit Fees:         | $ | 51,600             | 
|Audit Related Fees: | $ | 38,158             | 
|Tax Fees:           |   | --                 | 
|All Other Fees:     |   | 5,004              | 
|Total:              | $ | 94,762             | 

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 interim 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.

Discussions with Audit Committee

Our audit committee discussed with the auditors any
relationships that may impact their objectivity and independence, including fees
for non-audit services, and satisfied itself as to the auditors independence.
The audit committee also discussed with management and the independent auditors
the quality and adequacy of its internal controls. The audit committee reviewed
with the independent auditors their management letters.

78

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PART IV

ITEM 15. EXHIBITS, FINANCIAL STATEMENT SCHEDULES

|Number | Description of Exhibit                                                                                                                                                                              
|------ | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|       |                                                                                                                                                                                                     
|3.1    | Articles of Incorporation of the
      Company (1)                                                                                                                                                  
|3.2    | Amendment to Articles of Incorporation
        of the Company (2)                                                                                                                                   
|3.3    | Altered Memorandum
        of the Company (3)                                                                                                                                                       
|3.4    | Amendment to Articles of Incorporation
        of the Company (7)                                                                                                                                   
|4.1    | Share certificate
        representing common shares of the capital of the Company (1)                                                                                                              
|10.1   | Agreement for Conditional Purchase
        and Sale of Mining Property between the Company and Roger C. Burggraf
        dated October 6, 1978  Grant Mine Property (1)                            
|10.2   | Agreement for
        Conditional Purchase and Sale of Mining Property between the Company and
        Paul Barelka, Donald May and Mark Thoennes dated May 12, 1979  St.
        Paul Property (1)
|10.3   | Lease of Mining Claims with
        Option to Purchase between the Company and Alaska Mining Company, Inc.
        dated February 3, 1995  Hammond Property (4)                                    
|10.4   | Change of Control
        Agreement between the Company and Garry L. Anselmo dated May, 1995(6)                                                                                                     
|10.5   | Amendment to Change of Control
        Agreement between the Company and Garry L. Anselmo (6)                                                                                                       
|10.6   | Operating Agreement
        between the Company and Tri-Con Mining Ltd. Dated January 1, 1997 (5)                                                                                                   
|10.7   | Operating Agreement between
        the Company and Tri-Con Mining Inc. dated January 1, 1997 (6)                                                                                                   
|10.8   | Operating Agreement
        between the Company and Tri-Con Mining Alaska Inc. dated January 1, 1997
        (6)                                                                                    
|10.9   | Form of Warrant Exercise Agreement
        between the Company and certain of the selling security holders (8)                                                                                      
|10.10  | Form of Delay
        Agreement between the Company and certain of the Selling Shareholders
        (8)                                                                                             
|10.11  | 2006 Stock Option Plan (10)                                                                                                                                                                         
|10.12  | 2006-II Stock
        Option Plan (11)                                                                                                                                                              
|10.13  | 2007 Stock Option Plan (12)                                                                                                                                                                         
|10.14  | Shared Well
        Agreement between the Company and Sukakpak, Inc., dated May 17, 2007 (14)                                                                                                       
|10.15  | 2007-1 Equity Compensation Plan
        (13)                                                                                                                                                        
|10.16  | Lease Agreement
        between the Company and TA Properties (Canada) Ltd., dated March 30, 2007
        (15)                                                                                      
|10.17  | Indemnity Agreements between
        the Company and Garry L. Anselmo, Stuart C. McCulloch, and James F. Dixon,
        each dated October 27, 2008 (16)                                            
|10.18  | Indemnity Agreements
        between the Company and Garry L. Anselmo, Stuart C. McCulloch, Donald
        G. Balletto, Robert M. Dynes and John Mackay, each dated December 23,
        2009 (17)  
|10.19  | 2009 Equity Compensation Plan
        (18)                                                                                                                                                          
|10.20  | 2009-II Equity
        Compensation Plan (19)                                                                                                                                                       
|10.21  | Equity Line of Credit Agreement
        between the Company and Ashborne Finance Ltd.(20)                                                                                                           
|10.22  | Consulting Agreement
        between the Company and 1315781 Ontario Inc. (21)                                                                                                                      
|10.23  | Note Purchase Agreement between
        the Company and St. George Investments, LLC. (22)                                                                                                           
|14.1   | Code of Ethics
        (9)                                                                                                                                                                          
|31.1 * | Certification
        of Principal Executive Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002                                                                                      
|31.2 * | Certification
        of Principal Financial Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002                                                                                      
|32.1 * | Certification
        of Principal Executive Officer pursuant to 18 U.S.C. Section 1350, as
        adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002                               
|32.2 * | Certification
        of Principal Financial Officer pursuant to 18 U.S.C. Section 1350, as
        adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002                               

|(1)  | Filed as an exhibit to the Companys Registration
      Statement on Form 10 filed initially on May 11, 1984, as
amended.
|---- | -------------------------------------------------------------------------------------------------------------------------
|(2)  | Filed as an exhibit to the Companys Quarterly Report on
      Form 10-Q filed on July 15, 1997.                         
|(3)  | Filed as an exhibit to the Companys Current Report on
      Form 8-K filed on September 11, 2002.                       
|(4)  | Filed as an exhibit to the Companys Annual Report on
      Form 10-K for the fiscal year ended November 30, 1995.       
|(5)  | Filed as an exhibit to the Companys Annual Report on
      Form 10-K for the fiscal year ended November 30, 1996.       
|(6)  | Filed as an exhibit to the Companys Annual Report on
      Form 10-KSB for the fiscal year ended November 30, 2002.     
|(7)  | Filed as an exhibit to the Companys Current Report on
      Form 8-K filed on June 13, 2003.                            
|(8)  | Filed as an exhibit to the Companys Registration
      Statement on Form SB-2 filed on May 19, 2004.                    
|(9)  | Filed as an exhibit to the Companys Quarterly Report on
      Form 10-QSB filed on July 15, 2004.                       
|(10) | Filed as an exhibit to the Companys Registration
      Statement on Form S-8 filed on April 11, 2006.                   
|(11) | Filed as an exhibit to the Companys Registration
      Statement on Form S-8 filed on March 31, 2006.                   
|(12) | Filed as an exhibit to the Companys Registration
      Statement on Form S-8 filed on February 20, 2007.                
|(13) | Filed as an exhibit to the Companys Registration
      Statement on Form S-8 filed on September 7, 2007.                
|(14) | Filed as an exhibit to the Companys Annual Report on
      Form 10-KSB for the fiscal year ended November 30, 2007.     
|(15) | Filed as an exhibit to the Companys Quarterly Report on
      Form 10-QSB filed on July 15, 2008.                       
|(16) | Filed as exhibits to the Companys Current Report on Form
      8-K filed on October 29, 2008.                           
|(17) | Filed as exhibits to the Companys Current Report on Form
      8-K filed on December 23, 2009.                          
|(18) | Filed as an exhibit to the Companys Registration
      Statement on Form S-8 filed on January 29, 2009.                 
|(19) | Filed as an exhibit to the Companys Registration
      Statement on Form S-8 filed on June 1, 2009.                     
|(20) | Filed as an exhibit to the Companys Current Report on
      Form 8-K filed on May 12, 2009.                             
|(21) | Filed as an exhibit to the Companys Quarterly Report on
      Form 10-Q filed on October 15, 2009.                      
|(22) | Filed as an exhibit to the Companys Current Report on
      Form 8-K filed on January 28, 2010.                         

* Filed herewith.

79

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SIGNATURES

Pursuant to the requirements of Section 13 or 15(d) of the
Securities Exchange Act of 1934, the Registrant has duly caused this report to
be signed on its behalf by the undersigned, thereunto duly authorized.

Silverado Gold Mines Ltd.

|Date: March 12, 2010 | By: /s/ Garry L. Anselmo                                   
|-------------------- | -----------------------------------------------------------
|                     | Garry L. Anselmo,                                          
|                     | President and Chief Executive Officer
      (Principal     
|                     | Executive Officer)                                         
|                     |                                                            
|Date: March 12, 2010 | By: /s/ Donald G. Balletto                                 
|                     | Donald G. Balletto,                                        
|                     | Chief Financial Officer (Principal Financial
      Officer)

Pursuant to the requirements of the Securities Exchange Act of
1934, 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: March 12, 2010 | By: /s/ Garry L. Anselmo                                               
|-------------------- | -----------------------------------------------------------------------
|                     | Garry L. Anselmo,                                                      
|                     | Director, President, Chief Executive Officer
      (Principal Executive
|                     | Officer)                                                               
|                     |                                                                        
|Date: March 12, 2010 | By: /s/ Donald G. Balletto                                             
|                     | Donald G. Balletto,                                                    
|                     | Director, Chief Financial Officer (Principal
      Financial Officer)  
|                     |                                                                        
|Date: March 12, 2010 | By: /s/ Stuart McCulloch                                               
|                     | Stuart McCulloch,                                                      
|                     | Director                                                               
|                     |                                                                        
|Date: March 12, 2010 | By: /s/ Robert Dynes                                                   
|                     | Robert Dynes,                                                          
|                     | Director                                                               

80

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