| ***TWIN                MINING CORPORATION***                                                                           |   |                                                   |        |      |   |                                    |   |         |    |    |   |
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| ***CONSOLIDATED                STATEMENTS OF SHAREHOLDERS' EQUITY***                                                   |   |
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| *(in                Canadian dollars)*                                                                                 |   |    Shares              issued and subscribed |        |      |   |                                    |   |         |    |
|                                                                                                                   |   |  Number                of                              |        |  Ascribed |   |  Contibuted                             |   |  Accumulated |    |    |   |
|                                                                                                                   |   |  shares                                                |        |  value    |   |  Surplus                                |   |  deficit     |    |  Total  |   |
|                                                                                                                   |   |                                                   |        |      |   |  *(note                6(b) & (c))* |   |         |    |    |   |
|                                                                                                                   |   |                                                   |        |      |   |                                    |   |         |    |    |   |
| Balance,                December 31, 2001                                                                              |   |                                                        | 73,404,344  |           | $      | 44,964,961                                   |   | $                 | -       |         | $      | (20,235,892 | ) | $ | 24,729,069 |   |
|                                                                                                                   |   |                                                        |        |           |   |                                         |   |              |    |         |   |   |   |   |   |   |
| Issue                of shares for cash                                                                                |   |                                                        |        |           |   |                                         |   |              |    |         |   |   |   |   |   |   |
| -                at $0.50 per flow through share,                                                                      |   |                                                        |        |           |   |                                         |   |              |    |         |   |   |   |   |   |   |
| net                of share issue costs                                                                           |   |                                                        | 6,600,000   |           |   | 2,939,192                                    |   |              | -       |         |   |   |   |   | 2,939,192 |   |
| Issue                of shares to Helix Resources Inc.                                                                 |   |                                                        | 75,000      |           |   | 27,000                                       |   |              | -       |         |   |   |   |   | 27,000 |   |
| Loss                for the year                                                                                       |   |                                                        |        |           |   |                                         |   |              |    |         |   | (855,658 | ) |   | (855,658 | ) |
| Balance,                December 31, 2002                                                                              |   |                                                        | 80,079,344  |           | $      | 47,931,153                                   |   | $                 | -       |         | $      | (21,091,550 | ) | $ | 26,839,603 |   |
|                                                                                                                   |   |                                                        |        |           |   |                                         |   |              |    |         |   |   |   |   |   |   |
| Issue                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                                      |   |              | -       |         |   |   |   |   | 944,533 |   |
| Issue                of shares to Helix Resources Inc.                                                                 |   |                                                        | 105,000     |           |   | 42,000                                       |   |              | -       |         |   |   |   |   | 42,000 |   |
| Share                issue costs in respect of                                                                         |   |                                                        |        |           |   |                                         |   |              |    |         |   |   |   |   |   |   |
| CEE                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 | ) | $ | 26,547,271 |   |
|                                                                                                                   |   |                                                        |        |           |   |                                         |   |              |    |         |   |   |   |   |   |   |
| Adoption                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                                    |   |              | -       |         |   |   |   |   | 4,230,791 |   |
| Issue                of shares to Helix Resources Inc.                                                                 |   |                                                        | 120,000     |           |   | 26,400                                       |   |              | -       |         |   |   |   |   | 26,400 |   |
| Share                issue costs in respect of                                                                         |   |                                                        |        |           |   |                                         |   |              |    |         |   |   |   |   |   |   |
| CEE                renounced in prior years *(note                7)*                                             |   |                                                        | -           |           |   | 263,712                                      |   |              |    |         |   |   |   |   | 263,712 |   |
| Stock-based                compensation *(note                6(c))*                                                   |   |                                                        |        |           |   |                                         |   |              | 19,430  |         |   |   |   |   | 19,430 |   |
| Warrants                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 |   |
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| *The                accompanying notes are an integral part of these consolidated financial                statements* |