***TWIN
      MINING CORPORATION****(a
      development stage company)****CONSOLIDATED
      STATEMENTS OF SHAREHOLDERS'
      EQUITY****(in
      Canadian dollars)*
    
    Shares
      issued and subscribedNumber
      of
    
    Ascribed
    
    Contibuted
    
    Accumulatedshares
    
    value
    
    Surplus
    
    deficit
    
    Total*(note
      6(b) & (c))*Balance,
      December 31, 2001
    
    
    73,404,344
    
    $
    44,964,961
    
    $
    -
    
    $
    (20,235,892
    )
    $
    24,729,069Issue of
      shares for cash- at $0.50
      per flow through share,net of share
      issue costs
    
    
    6,600,000
    
    
    2,939,192
    
    
    -
    
    
    
    
    
    2,939,192Issue of
      shares to Helix Resources Inc.
    
    
    75,000
    
    
    27,000
    
    
    -
    
    
    
    
    
    27,000Loss for the
      year
    
    
    
    
    
    
    
    
    
    
    
    (855,658
    )
    
    (855,658
    )Balance,
      December 31, 2002
    
    
    80,079,344
    
    $
    47,931,153
    
    $
    -
    
    $
    (21,091,550
    )
    $
    26,839,603Issue of
      shares for cash- at $0.28
      per flow through share,net of share
      issue costs *(note 6(d))*
    
    
    5,357,143
    
    
    1,435,604
    
    
    -
    
    
    
    
    
    1,435,604- at $0.30
      per common share,net of share
      issue costs *(note 6(d))*
    
    
    616,667
    
    
    178,331
    
    
    -
    
    
    
    
    
    178,331- at $0.345
      per common share,net of share
      issue costs *(note 6(d))*
    
    
    762,500
    
    
    250,994
    
    
    -
    
    
    
    
    
    250,994- at $0.33
      per common share,net of share
      issue costs *(note 6(d))*
    
    
    3,000,000
    
    
    944,533
    
    
    -
    
    
    
    
    
    944,533Issue of
      shares to Helix Resources Inc.
    
    
    105,000
    
    
    42,000
    
    
    -
    
    
    
    
    
    42,000Share issue
      costs in respect ofCEE renounced
      in prior years *(note 7)*
    
    
    -
    
    
    (3,039,138
    )
    
    
    
    
    
    
    
    (3,039,138
    )Loss for the
      year
    
    
    
    
    
    
    
    
    
    
    
    (104,656
    )
    
    (104,656
    )Balance,
      December 31, 2003
    
    
    89,920,654
    
    $
    47,743,477
    
    $
    -
    
    $
    (21,196,206
    )
    $
    26,547,271Adoption of
      stock based compensation*(note
      4)*
    
    
    -
    
    
    
    
    
    646,145
    
    
    (646,145
    )
    
    -Issue of
      shares for cash- at $0.35
      per common share,net of share
      issue costs *(note 6(d))*
    
    
    142,857
    
    
    49,000
    
    
    -
    
    
    
    
    
    49,000- at $0.315
      per common share,net of share
      issue costs *(note 6(d))*
    
    
    1,905,000
    
    
    596,675
    
    
    -
    
    
    
    
    
    596,675- at $0.30
      per common share,net of share
      issue costs *(note 6(d))*
    
    
    2,383,667
    
    
    680,800
    
    
    -
    
    
    
    
    
    680,800- at $0.22
      per common share,net of share
      issue costs *(note 6(d))*
    
    
    15,891,364
    
    
    2,973,906
    
    
    -
    
    
    
    
    
    2,973,906- at $0.20
      per common share,net of share
      issue costs *(note 6(d))*
    
    
    22,000,000
    
    
    4,230,791
    
    
    -
    
    
    
    
    
    4,230,791Issue of
      shares to Helix Resources Inc.
    
    
    120,000
    
    
    26,400
    
    
    -
    
    
    
    
    
    26,400Share issue
      costs in respect ofCEE renounced
      in prior years *(note 7)*
    
    
    -
    
    
    263,712
    
    
    
    
    
    
    
    
    263,712Stock-based
      compensation *(note 6(c))*
    
    
    
    
    
    
    
    
    19,430
    
    
    
    
    
    19,430Warrants
      expiring unexercised *(note 6(b))*
    
    
    
    
    
    (26,393
    )
    
    26,393
    
    
    
    
    
    -Loss for the
      year
    
    
    
    
    
    
    
    
    
    
    
    (7,144,087
    )
    
    (7,144,087
    )Balance,
      December 31, 2004
    
    
    132,363,542
    
    $
    56,538,368
    
    $
    691,968
    
    $
    (28,986,438
    )
    $
    28,243,898*The
      accompanying notes are an integral part of these consolidated financial
      statements*