| ***TWIN                MINING CORPORATION***                                       |   |                                     |             |     |   |        |   |     |       |
|------------------------------------------------------------------------------------|--------|-----------------------------------------------|------------------|----------|--------|-------------|--------|----------|------------|
| *(a                development stage company)*                                     |   |                                     |             |     |   |        |   |     |       |
|                                                                               |   |                                     |             |     |   |        |   |     |       |
| ***CONSOLIDATED                STATEMENTS OF LOSS AND DEFICIT***                   |   |                                          |             |     |   |
| **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** |       |
|                                                                               |   | $                                             |             | $        |   | $           |   | $        |       |
|                                                                               |   |                                     |             |     |   |        |   |     |       |
| Interest                income                                                     |   |                                          | ***1,808,988***  |     |   | 1,970       |   |     | 22,792     |   |   | 23,767 |   |
|                                                                               |   |                                          |             |     |   |        |   |     |       |   |   |   |   |
| **General                and administrative expenses**                             |   |                                          |             |     |   |        |   |     |       |   |   |   |   |
| Salaries                and benefits                                          |   |                                          | ***5,355,709***  |     |   | 454,753     |   |     | 521,870    |   |   | 398,471 |   |
| Professional                fees                                              |   |                                          | ***2,879,823***  |     |   | 166,122     |   |     | 117,840    |   |   | 99,345 |   |
| Investor                relations                                             |   |                                          | ***1,599,903***  |     |   | 129,455     |   |     | 126,264    |   |   | 206,797 |   |
| Travel                                                                        |   |                                          | ***683,768***    |     |   | 72,504      |   |     | 19,211     |   |   | 35,071 |   |
| Interest                                                                      |   |                                          | ***83,015***     |     |   | 40,000      |   |     | -          |   |   | - |   |
| Administrative                and office                                      |   |                                          | ***3,443,484***  |     |   | 318,119     |   |     | 241,487    |   |   | 122,631 |   |
| Depreciation                                                                  |   |                                          | ***120,780***    |     |   | 19,603      |   |     | 9,704      |   |   | 19,545 |   |
|                                                                               |   |                                          | ***14,166,482*** |     |   | 1,200,556   |   |     | 1,036,376  |   |   | 881,860 |   |
|                                                                               |   |                                          |             |     |   |        |   |     |       |   |   |   |   |
|                                                                               |   |                                          |             |     |   |        |   |     |       |   |   |   |   |
| **Mineral                property costs written off**                              |   |                                          | ***12,200,710*** |     |   | 1,450,626   |   |     | 31,219     |   |   | - |   |
|                                                                               |   |                                          |             |     |   |        |   |     |       |   |   |   |   |
| **Future                income tax provision (recovery)***(note                7)* |   |                                          | ***3,652,065***  |     |   | 4,574,200   |   |     | (922,135   | ) |   | - |   |
|                                                                               |   |                                          |             |     |   |        |   |     |       |   |   |   |   |
| **(Gain)                loss from foreign currency translation**                   |   |                                          | ***130,024***    |     |   | (79,325     | )      |     | (18,012    | ) |   | (2,435 | ) |
|                                                                               |   |                                          | ***30,149,281*** |     |   | 7,146,057   |   |     | 127,448    |   |   | 879,425 |   |
| **Loss                for the year**                                               |   |                                          | ***28,340,293*** |     |   | 7,144,087   |   |     | 104,656    |   |   | 855,658 |   |
|                                                                               |   |                                          |             |     |   |        |   |     |       |   |   |   |   |
| **Accumulated                deficit, beginning of period**                        |   |                                          | ***-***          |     |   | 21,196,206  |   |     | 21,091,550 |   |   | 20,235,892 |   |
|                                                                               |   |                                          |             |     |   |        |   |     |       |   |   |   |   |
| Adoption                of stock option standard *(note                6(c))*      |   |                                          | ***646,145***    |     |   | 646,145     |   |     | -          |   |   | - |   |
| **Accumulated                deficit, end of period**                              |   |                                          | ***28,986,438*** |     |   | 28,986,438  |   |     | 21,196,206 |   |   | 21,091,550 |   |
|                                                                               |   |                                          |             |     |   |        |   |     |       |   |   |   |   |
| Weighted                average number of shares outstanding                       |   |                                          |             |     |   | 100,425,167 |   |     | 83,664,662 |   |   | 74,638,781 |   |
|                                                                               |   |                                          |             |     |   |        |   |     |       |   |   |   |   |
| **Loss                per share - basic and diluted**                              |   |                                          |             |     |   | 0.071       |   |     | 0.001      |   |   | 0.011 |   |

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