| ***TWIN                MINING CORPORATION***                            |   |                                     |              |     |   |       |   |     |        |
|-------------------------------------------------------------------------|--------|-----------------------------------------------|-------------------|----------|--------|------------|--------|----------|-------------|
| *(a                development stage company)*                          |   |                                     |              |     |   |       |   |     |        |
|                                                                    |   |                                     |              |     |   |       |   |     |        |
| ***CONSOLIDATED                STATEMENTS OF CASH FLOW***               |   |                                          |              |
| **For                the years ended December 31, 2004, 2003 and 2002** |   |                                          |              |     |   |       |   |
|                                                                    |   |                                     |              |     |   |       |   |     |        |
|                                                                    |   |  ***Cumulative,***                       |              |     |   |       |   |     |        |
|                                                                    |   |  ***since                inception***    |              |     |   |       |   |     |        |
|                                                                    |   |  ***(March                6, 1985 to***  |              |     |   |       |   |     |        |
| *(in                Canadian dollars)*                                  |   |  ***December                31, 2004)*** |              | **2004** |   | **2003**   |   | **2002** |        |
|                                                                    |   | $                                             |              | $        |   | $          |   | $        |        |
|                                                                    |   |                                     |              |     |   |       |   |     |        |
| **Operating                activities**                                 |   |                                     |              |     |   |       |   |     |        |
| Loss                for the year                                   |   |                                          | ***(28,340,293*** | ***)***  |   | (7,144,087 | )      |     | (104,656    | ) |   | (855,658 | ) |
| Add                (deduct) items not involving cash:              |   |                                          |              |     |   |       |   |     |        |   |   |   |   |
|  *Mineral                property costs written off*               |   |                                          | ***12,200,710***  |     |   | 1,450,626  |   |     | 31,219      |   |   | - |   |
|  *Depreciation*                                                    |   |                                          | ***120,780***     |     |   | 19,603     |   |     | 9,704       |   |   | 19,545 |   |
|  *Future                income tax expense (recovery)*             |   |                                          | ***3,652,065***   |     |   | 4,574,200  |   |     | (922,135    | ) |   | - |   |
|  *Stock-based                compensation expense*                 |   |                                          | ***665,575***     |     |   | 19,430     |   |     | -           |   |   | - |   |
| Net                change in non-cash working capital              |   |                                          | ***1,868,115***   |     |   | (713,003   | )      |     | 2,038,886   |   |   | (65,055 | ) |
|                                                                    |   |                                          | ***(9,833,048***  | ***)***  |   | (1,793,231 | )      |     | 1,053,018   |   |   | (901,168 | ) |
| **Financing                activities**                                 |   |                                          |              |     |   |       |   |     |        |   |   |   |   |
| Issuance                of common shares:                          |   |                                          |              |     |   |       |   |     |        |   |   |   |   |
|  *net                of issue costs (note 6(d))*                   |   |                                          | ***46,612,407***  |     |   | 8,531,172  |   |     | 1,373,858   |   |   | - |   |
| Issuance                of flow-through shares:                    |   |                                          |              |     |   |       |   |     |        |   |   |   |   |
|  *net                of issue costs (note 6(d))*                   |   |                                          | ***11,948,435***  |     |   | -          |   |     | 1,435,604   |   |   | 2,939,192 |   |
|                                                                    |   |                                          | ***58,560,842***  |     |   | 8,531,172  |   |     | 2,809,462   |   |   | 2,939,192 |   |
| **Investing                activities**                                 |   |                                          |              |     |   |       |   |     |        |   |   |   |   |
| Mineral                property expenditures                       |   |                                          | ***(46,659,062*** | ***)***  |   | (5,549,765 | )      |     | (4,766,748  | ) |   | (2,913,908 | ) |
| Capital                assets                                      |   |                                          | ***(172,276***    | ***)***  |   | (11,326    | )      |     | (26,915     | ) |   | (19,918 | ) |
|                                                                    |   |                                          | ***(46,831,338*** | ***)***  |   | (5,561,091 | )      |     | (4,793,663  | ) |   | (2,933,826 | ) |
|                                                                    |   |                                          |              |     |   |       |   |     |        |   |   |   |   |
| **(Decrease)                increase in cash**                          |   |                                          | ***1,896,456***   |     |   | 1,176,850  |   |     | (931,183    | ) |   | (895,802 | ) |
|                                                                    |   |                                          |              |     |   |       |   |     |        |   |   |   |   |
| **Cash                and cash equivalents, beginning of year**         |   |                                          | ***-***           |     |   | 719,606    |   |     | 1,650,789   |   |   | 2,546,591 |   |
| **Cash                and cash equivalents, end of year**               |   |                                          | ***1,896,456***   |     |   | 1,896,456  |   |     | 719,606     |   |   | 1,650,789 |   |
|                                                                    |   |                                          |              |     |   |       |   |     |        |   |   |   |   |
|                                                                    |   |                                          |              |     |   |       |   |     |        |   |   |   |   |
| *Net                change in non-cash working capital items*      |   |                                          |              |     |   |       |   |     |        |   |   |   |   |
|  *Receivables*                                                     |   |                                          |              |     |   | *(16,214*  | *)*    |     | *(199,607*  | *)* |   | *4,547* |   |
|  *Prepaid                expenses*                                 |   |                                          |              |     |   | *(35,515*  | *)*    |     | *(29,825*   | *)* |   | *(3,503* | *)* |
|  *Supply                inventory*                                 |   |                                          |              |     |   | *(6,047*   | *)*    |     | *(80,612*   | *)* |   | *44,667* |   |
|  *Accounts                payable and accrued liabilities*         |   |                                          |              |     |   | *(655,227* | *)*    |     | *2,348,930* |   |   | *(110,766* | *)* |
|                                                                    |   |                                          |              |     |   | *(713,003* | *)*    |     | *2,038,886* |   |   | *(65,055* | *)* |

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