| ***TWIN                MINING CORPORATION***                             |   |     |        |     |   |
|--------------------------------------------------------------------------|--------|----------|-------------|----------|--------|
| *(a                development stage company)*                           |   |     |        |     |   |
|                                                                     |   |     |        |     |   |
| ***CONSOLIDATED                BALANCE SHEETS***                         |   |     |        |     |   |
| **As                at December 31, 2004 and 2003**                      |   |     |        |     |   |
|                                                                     |   |     |        |     |   |
|                                                                     |   |     |        |     |   |
| *(in                Canadian dollars)*                                   |   | **2004** |        | **2003** |   |
|                                                                     |   | $        |        | $        |   |
| **ASSETS**                                                               |   |     |        |     |   |
| Current                assets                                            |   |     |        |     |   |
| *Cash                and cash equivalents*                          |   |     | 1,896,456   |     |   | 719,606 |   |
| *Receivables**(note                3)*                              |   |     | 247,591     |     |   | 231,377 |   |
| *Prepaid                expenses*                                   |   |     | 148,429     |     |   | 112,914 |   |
| *Supply                inventory**(note                4(b))*       |   |     | 198,631     |     |   | 192,584 |   |
|                                                                     |   |     | 2,491,107   |     |   | 1,256,481 |   |
|                                                                     |   |     |        |     |   |   |   |
| Mineral                properties *(note                4)*              |   |     | 34,591,552  |     |   | 30,466,013 |   |
|                                                                     |   |     |        |     |   |   |   |
| Property,                plant and equipment *(note                5)*   |   |     | 51,496      |     |   | 59,773 |   |
|                                                                     |   |     | 37,134,155  |     |   | 31,782,267 |   |
|                                                                     |   |     |        |     |   |   |   |
| **LIABILITIES**                                                          |   |     |        |     |   |   |   |
| Current                liabilities                                       |   |     |        |     |   |   |   |
| *Accounts                payable and accrued liabilities*           |   |     | 2,462,766   |     |   | 3,117,993 |   |
|                                                                     |   |     |        |     |   |   |   |
| Future                income taxes *(note                7)*             |   |     | 6,427,491   |     |   | 2,117,003 |   |
|                                                                     |   |     |        |     |   |   |   |
|                                                                     |   |     | 8,890,257   |     |   | 5,234,996 |   |
| *Contingency                and commitments (note 9)*                    |   |     |        |     |   |   |   |
|                                                                     |   |     |        |     |   |   |   |
|                                                                     |   |     |        |     |   |   |   |
| **SHAREHOLDERS'                EQUITY**                                  |   |     |        |     |   |   |   |
| Capital                stock *(note                6)*                   |   |     | 53,355,502  |     |   | 47,560,501 |   |
| Warrants                *(note                6(b))*                     |   |     | 3,182,866   |     |   | 182,976 |   |
|                                                                     |   |     | 56,538,368  |     |   | 47,743,477 |   |
| Contributed                surplus *(notes                6(b) and (c))* |   |     | 691,968     |     |   | - |   |
|                                                                     |   |     | 57,230,336  |     |   | 47,743,477 |   |
| Accumulated                deficit                                       |   |     | (28,986,438 | )        |   | (21,196,206 | ) |
|                                                                     |   |     | 28,243,898  |     |   | 26,547,271 |   |
|                                                                     |   |     | 37,134,155  |     |   | 31,782,267 |   |

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

| ***Approved                    by the Board*** |   |   |                                   |   |   |   |   |
|------------------------------------------------|--------|--------|----------------------------------------|--------|--------|--------|--------|
|                                           |   |   |                                   |   |   |   |   |   |   |   |
|                                           |   |   |                                   |   |   |   |   |   |   |   |
|                                           |   |   |                                   |   |   |   |   |   |   |   |
|                                           |   |   |                                   |   |   |   |   |   |   |   |
| Hermann                    Derbuch             |   |   |  C.                    E. Ritchie |
| *Director*                                     |   |   |  *Director*                       |