***TWIN
      MINING CORPORATION****(a
      development stage company)*
   ***CONSOLIDATED
      STATEMENTS OF CASH FLOW*****For
      the years ended December 31, 2004, 2003 and
      2002*********(in
      Canadian dollars)*
    
    ***Cumulative,
      since
      inception(March 6,
      1985 to******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*