**EXHIBIT 2**Management’s Discussion and Analysis**The following discussion is a review of the financial performance and position of ClaudeResources Inc. (“Claude” or the “Company”) for the years ended December 31, 2006, 2005 and 2004.This discussion is the responsibility of Management and the information within this Managementdiscussion and analysis is current to March 29, 2007. The Board of Directors review the disclosurepresented herein through the audit committee. The discussion should be read in conjunction withthe Company’s audited consolidated financial statements and notes to those statements. All amountsare expressed in Canadian dollars, except where otherwise indicated.****Overview**Claude Resources Inc. is a gold and oil & gas producer with shares listed on both the TorontoStock Exchange and American Stock Exchange. The Company’s main revenue generating assets are the100% owned Seabee gold mine, located in northern Saskatchewan, and working interests in oil and gaswells, associated gas plant and gathering lines located in Alberta.The Company’s primary mission is to become a recognized and valued exploration and mining companywith a producing asset base and strong balance sheet. It follows four principal strategies tooptimize its probability of success: maximizing the performance of its existing assets; aggressiveexploration efforts – both advanced and grass roots; acquisition of new properties or mergers; and,maintaining financial capacity.**Maximization of Existing Assets**During the year, the expansion of the Seabee mill was substantially complete. The increasefrom 550 tonnes to 1,100 tonnes per day will allow for greater flexibility in mine planning as wellas ensure available capacity for tonnage from potential gold projects such as the Porky West,Santoy 7 and Santoy 8 zones.**Exploration**Claude regained 100% control of its Madsen exploration project in Red Lake, Ontario fromGoldcorp Canada Ltd., formerly Placer Dome (CLA) Limited, (“Goldcorp”) effective September 1, 2006.The project was under an option agreement with Goldcorp. Claude’s objective is to fully assess thepotential for high grade gold mineralization on the Madsen property with the initial focus onde-watering the Madsen shaft to provide underground access for drilling extensions of the historichigh grade number 8 zone plus other zones. As well, a surface drill program to pursue historictargets, including those developed by Goldcorp, was underway by the end of the fourth quarter.In 2006, most of Claude’s gold exploration efforts focused on land positions within truckingdistance of the Seabee mine. The extraction of two separate bulk samples on its wholly owned PorkyLake and Santoy 7 properties continued during the year. Preliminary results on these samples werereleased in the first quarter of 2007.**Acquisition/Mergers**While its existing asset base does not make Claude dependent on mergers or acquisitions toachieve its objectives, the Company will consider strategically attractive opportunities.**Financial Capacity**The Company intends to build its cash reserves and maintain access to financial markets toensure continued funding of exploration efforts and expansion of mining projects.
 

 
Subsequent to the Balance Sheet date, the Company entered intoan agreement for the issue of 12,500,000 common shares at an issue price of $1.60 with, proceeds of $20,000,000. Inaddition, the agreement includes an over-allotment option to purchase an additional 1,875,000 common shares for anissue price of $1.60, with gross proceeds of $3,000,000.**2006 Mining Operations**In 2006, the Seabee mine initiated a number of improvements to strengthen the Company’senvironmental, health and safety departments. Aside from increased staffing in these two criticalareas, there are renewed commitments to improve policies and programs related to the environment,health and safety of the workplace.2006 was a very active year at Claude Resources Inc. The Seabee mine began the conversion fromshrinkage stope mining to Avoca/long-hole mining in order to reduce dilution and improve orerecoveries. Expansion of the existing tailings capacity was also undertaken during the summer.Lastly, the Madsen property reverted back to Claude in its entirety and the Company initiated theshaft de-watering project in order to pursue exploration drilling underground.In the middle of these new activities, Claude reduced lost time accident severity and increasedproduction. This is a real credit to the employees at the Seabee mine.Total ounces produced in 2006 increased 4% to 46,300 ounces compared to 44,600 ounces in 2005.Seabee mine milled 246,000 tonnes in 2006 versus 236,400 in 2005, up 4%. The feed grade of 6.16grams per tonne was 3% lower than the 6.32 grams per tonne milled in 2005.**Seabee Production and Cost Statistics**               **2006**  **2005**  **2004** Tonnes Milled  246,000   236,400   186,900 Head Grade (g/tonne)  6.16   6.32   7.15 Recovery (%)  93.62   92.86   95.21 Gold Sold (oz)  47,400   42,200   41,200 Gold Produced (oz)  46,300   44,600   40,900 Cash Operating Cost ($ million) $21.3  $18.3  $15.9 Cash Operating Cost per ounce( CDN $/oz) $449  $434  $386 Total mine operating expenditures increased 16% to $21.3 million from $18.3 million last year, aresult of the higher tonnage milled and increased costs in all areas (mining, maintenance, milling,services, camp, and administration). We continue to experience cost pressures in materials andlabour associated with the current market and will focus on delivering an improved head grade andmill recoveries and appropriate capital investment to control operating costs going forward.Claude is planning in excess of 50,000 metres of underground drilling at Seabee to replace 2007production and expand reserves and resources. Drilling will be focused on the 2B and 2C veinslaterally to the west. As well, an 800 metre level diamond drill chamber will be driven during thefirst quarter to test the down dip plunge of the 2B and 2C veins to the 1,200 metre level (morethan 400 metres below the existing workings).Each year, reserves and resources at the Seabee mine are independently reviewed. At December 31,2006, reserves were at 692,500 tonnes at 6.59 grams per tonne or 146,700 ounces. Resources were1,293,300 tonnes at 8.96 grams per tonne or 372,600 ounces. Over the past 15 years, the Companyhas successfully converted its posted resources to reserves.
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**Seabee Mine – Proven and Probable Reserves and Mineral Resources**                                           **2006**          **2005**          **2004**      **Tonnes**  **g/tonne**  **Ounces**  **Tonnes**  **g/tonne**  **Ounces**  **Tonnes**  **g/tonne**  **Ounces** SeabeeMine                                    Proven  520,900   6.44   107,900   395,600   6.18   78,600   400,500   6.37   82,000 Probable  171,600   7.03   38,800   288,800   7.07   65,600   332,200   7.53   80,400  Total Proven and Probable 692,500   6.59   146,700   684,400   6.56   144,200   732,700   6.90   162,400 Inferred Mineral Resources(1)  1,293,300   8.96   372,600   1,499,700   8.86   427,200   1,406,200   8.16   368,900  (1) Mineral resources, all in the inferred category, stated after applying historicmining dilution factors.**Exploration**In 2006, exploration on the Seabee property continued to explore for new satellite golddeposits to be used as mill feed for the Seabee gold mill. Two zones of mineralization are at thebulk sample stage, Porky West and Santoy 7. The process was begun at both locations in 2006 andwas reported on in early 2007. During 2006, 124 holes were drilled in the area surrounding theSeabee mine, for a total of 30,700 metres.Claude’s exploration program expanded during the year as a result of the reacquiring control of its100%-owned Madsen property in the world class gold mining camp of Red Lake, Ontario. Preparationscommenced during the last quarter of the year for shaft dewatering and surface core drill programs.All exploration programs are carried out under the direction of Qualified Person Judy Stoeterau,P.Geo., Vice President of Exploration for Claude.**Santoy Lake Area**At Santoy Lake, Claude continued delineation drilling at the Santoy 7 and Santoy 8 zones. TheSantoy property, accessible by a permanent road which was completed in 2006, is approximately 11kilometres east of the Seabee mine.At Santoy 7, mineralization is hosted in dilation zones within a metavolcanic – metasedimentaryrock sequence, a result of fault movement in the area. The dilation zones have been infilled byquartz, carrying varying amounts of sulphides, chlorite, carbonate and visible gold. Santoy 7 liesin an area of thrust faulting with shallow to moderately dipping lenses of mineralized rock. Themain horizon outlined to date measuring 400 metres by 150 metres and 1.5 metres to 12 metres thick.This lense remains open in two directions. Additional formations at depth will be drill-tested inthe upcoming year.The Santoy 8 dilation structure, two kilometres to the southeast of Santoy 7, shows a moresteeply-dipping attitude and may be related to normal faulting within the rock sequence. Twosimilar, en enchelon drag fold structures occur at Santoy 8. The north structure is about 380metres long on surface and varies from 1.5 metres to 2 metres thick along its arms to 30 metresalong the nose structure. This fold remains open at depth along its eastern limb. The foldstructure to the south is similar and is also open to the east.Total indicated and inferred mineral resources for Santoy 7 and 8 are 1,110,000 tonnes grading6.53 grams per tonne (top cut of 30 grams per tonne). The bottom cut-off grade used by Claude is3.0 grams per tonne over 1.2 metres true width. A specific gravity of 2.8 is used.The permanent road to Santoy 7 has allowed for the collection and transport of a 5,000 to 7,000tonne bulk sample from Santoy 7 to the Seabee mill. This process will provide a more completeunderstanding of the best mine process to be used as well as the gold content of the rock. TheCompany expects to complete this sampling process during the first half of 2007.**Porky Lake Area**Approval to conduct bulk sampling of the Porky West zone was granted during 2005 and an undergroundbulk sampling program was carried out during the last quarter of 2006 to confirm grade, continuityand
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metallurgy of the gold mineralization. Results of this bulk test and concurrent metallurgical workwere reported together with the results from the Santoy chip and muck samples in the first quarterof 2007.To date, the Porky West zone has an estimated indicated resource of 90,000 tonnes grading 7.33grams per tonne and an estimated inferred resource of 130,000 tonnes grading 5.00 grams per tonne(the same cut-off grades were used at Santoy 7). Current calculated resources from the satellitedeposits at Porky West and Santoy 7 and 8 zones are 1,560,000 tonnes, as shown in the followingtable:                   Porky Lake Area Resources            Zone Category Tonnage  Grade (g/t)  Grams of Au  Troy Ounces  West Indicated  90,000   7.33   659,700   21,200   Inferred  130,000   5.00   650,000   20,900                    Main Indicated  160,000   7.50   1,200,000   38,600   Inferred  70,000   10.43   730,100   23,500  Total Indicated & Inferred  450,000   7.20   3,239,800   104,200                    Santoy Lake Area Resources            Zone Category Tonnage  Grade (g/t)  Grams of Au  Troy Ounces  Santoy 7 Indicated  190,000   8.42   1,599,800   51,400   Inferred  10,000   10.0   100,000   3,200                    Santoy 8/8 East Indicated  —   —   —   —   Inferred  910,000   6.10   5,551,000   178,500  Total Indicated & Inferred  1,110,000   6.53   7,250,800   233,100                     Total Porky & Santoy Resources  1,560,000   6.72   10,490,600   337,300  **Shane Property**The Shane property is located approximately five kilometres east of Claude’s operating Seabee goldmine along the permanent road to the Santoy 7 area. Claude owns a 75% interest in the property andShane Resources Ltd. holds the remaining 25%.The 2006 winter drill program delineated a horizon containing gold mineralization hosted byquartz-tourmaline-sulphide veins within metavolcanic rocks. During the summer, Claude followed thisprogram up with a comprehensive grassroots exploration program, results of which detailed one mainmineralized horizon, traceable through drilling and prospecting for approximately 1,300 metres.This east-trending horizon typically contains 1 to 3 metres of gold bearingquartz-tourmaline-sulphide flooding. It has been drill-tested along approximately 500 to 600metres of this length.Drill core intercepts from this horizon contain the following notable grades: 12.16 grams pertonne over 8.43 metres (6.46 metres true width) and 23.88 grams per tonne over 3.74 metres (2.86metres true width). Mineralization along this structure is in the form of west-plunging lenses.The anomalous intersection of 23.88 grams per tonne over 3.74 metres is the down-plunge extensionof the 12.16 grams per tonne over 8.43 metres, reflecting the strong mineral lineation measured inthe field during the mapping program.The Shane mineralization lies within 200 metres of the Santoy 7 permanent road and iswell-positioned to provide mill feed for Seabee. Exploration will continue in the coming year withcore drill programs to test the horizon both east and west of the zone defined to date.**Madsen Property**The Madsen property comprises over 4,000 hectares (10,000 acres) of contiguous claims and containsa fully functional gold mill, 4,000 foot deep shaft and permitted tailings pond. The Madsen minewas the third largest gold producer in the Red Lake camp, producing over 2.6 million ounces of goldover its 40 year history. Claude regained 100% control of its Madsen exploration project in RedLake, Ontario from
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Goldcorp Canada Ltd., effective September 1, 2006. The project was under anoption agreement with Goldcorp. Claude immediately began to prepare for dewatering of the shaft tofacilitate underground drilling – with the initial focus on drilling extensions of the historichigh grade number 8 zone plus otherzones. Preparation also began on a surface drill program that will pursue historic targetsincluding those developed by Goldcorp.Although it is expected to take months to receive and review the exploration data packages fromGoldcorp, preparations began in December to initiate definition drilling of the main stringerenvelope of mineralization intersected in the Treasure Box zone, 2.4 kilometres north of the Madsenmine complex. The zone was discovered in 2002 and given the name due to nuggety visible goldpresent in the drill core. A total of 27 exploration-stage holes were drilled by Goldcorp from2002 to 2004 under the Option agreement. Of these, 21 returned over 80 intercepts grading 2.0 to116.0 grams per tonne, mainly over 0.3 metres.The Treasure Box zone is characterized by quartz-tourmaline-sulphide stringers and veins 1 to 20centimetres wide. These appear to have been emplaced as late-stage brittle fracture fillings inunaltered mafic metavolcanic rocks and are considered to represent the uppermost portion of anArchean gold system.**Quality Assurance and Quality Control Procedures**Rigorous quality assurance and quality control procedures have been implemented on all Company coredrill programs, including blank, reference and duplicate samples with each batch of assays. Allcore samples are analyzed by fire assay with a gravimetric finish and an atomic absorption finishat independent, ISO approved facilities.**Oil & Gas**Claude produces crude oil, natural gas and natural gas liquids (NGLs) from properties inAlberta and Saskatchewan.The Company has various non-operated working interests in oil, NGLs and natural gas in Alberta.These Alberta properties provide 90% of the total production for oil and NGLs and 100% of theproduction of natural gas. The Nipisi Unit is a 173 well unitized oil field operated by CanadianNatural Resources Ltd. The Edson Gas Unit has 61 producing gas wells and an associated gas plant,all operated by Talisman Energy. In addition to these properties, the Company has interests inproducing oil and gas wells at a number of other Alberta locations.In Saskatchewan, the Company has a 75% working interest in six producing vertical oil wells alongwith a 33.75% interest in four producing horizontal wells.Oil and NGLs sales volume for 2006 was 66,600 barrels, 20% lower than the 83,000 barrels sold in2005. Natural gas volume declined 8%, with volume levels decreasing to 616 MMCF in 2006 from 669MMCF in 2005.Operating costs increased 21% to $2.3 million in 2006 from $1.9 million in 2005. This trend wasattributable to general cost increases.Each year the Company has its proven and probable oil, NGLs and natural gas reserves evaluatedindependently. Crude oil and NGLs proved and probable reserves decreased by 17% to 917,000 at theend of 2006 from 1,099,000 barrels at the end of 2005. Natural gas reserves also decreasedcompared to the prior year, to 8,000 MMCF in 2006 from 8,900 MMCF in 2005. Decreases in thecurrent year were attributable to normal production declines and the lower average prices ofnatural gas.
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             **Reserves**(1) **2006**  **2005**  **2004**  Crude oil and NGLs (mbbl)            Proved            Alberta  578   806   455 Saskatchewan  45   60   66     623   866   521              Probable            Alberta  278   215   174 Saskatchewan  16   18   7     294   233   181  Total  917   1,099   702               Natural gas (MMCF)            Proved            Alberta  6,419   7,539   7,167 Probable            Alberta  1,533   1,313   1,775  Total  7,952   8,852   8,942               Barrels of oil equivalent (mboe)            Proved  1,693   2,123   1,716 Probable  549   452   477  Total  2,242   2,575   2,193  (1) Reserves at December 31, 2006, reviewed by Sproule Associates Limited usingconstant prices. (2) Conversion: 6 mcf = 1 boe**Results of Operations**The Company reports its results of operations based on Canadian Generally Accepted AccountingPrinciples (“GAAP”). The Company reports the results of its operations in two reportable industrysegments: (1) gold mining and exploration, and (2) oil, natural gas liquids and natural gasproduction. A reconciliation of reported net sales is included in the notes to the financialstatements.For the year ended December 31, 2006, the Company recorded net earnings of $6.4 million, or $0.09per share, after a $5.9 million gain realized on the sale of certain assets and a $2.7 millionnon-cash recovery related to income tax benefits arising from the issuance of flow-through shares.This compares to a net loss of $3.5 million, or $0.05 per share, in 2005 after a $1.4 million gainrealized on the sale of certain portfolio investments and a $1.3 million non-cash recovery relatedto income tax benefits arising from the issuance of flow-through shares. The earnings improvementfor the year was largely attributable to higher gold revenues combined with the gain on sale ofassets and income tax recovery, offset by higher mine operating costs.**Revenue***2006 versus 2005*Gross revenue for the year improved by 21% to $41.4 million in 2006 from $34.3 million in 2005.The Seabee mine contributed $32.5 million to revenue, a 41% improvement from the $23.1 millionreported in 2005. This result was due to a 12% improvement in gold sales (2006 – 47,400 ounces;2005 – 42,200 ounces) combined with a 25% increase in average Canadian dollar gold price realized:2006 — $685 (US $604); 2005 — $548 (US $452). Gold sales during the year were within 1% of the48,000 ounces forecast.Gross oil, NGLs and natural gas revenues for the year ended December 31, 2006 totaled $8.9 million,a 20% decrease from the $11.1 million in 2005. This decrease is attributable to lower averagerealized natural
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gas prices and normal production declines. Corresponding decreases in both Albertacrown royalties and overriding royalties partially mitigated the decrease in net oil and gasrevenue.Oil and NGLs sales volume was 66,600 barrels in 2006, 20% lower than the 83,000 barrels sold in theprevious year. The average realized price per barrel of oil in Canadian dollar terms increased 33%to CDN $66.04 (US $58.22) in 2006 from CDN $49.55 (US $40.94) in the prior year.Natural gas volumes fell 8% to 616 MMCF in 2006 from 669 MMCF in 2005. The average realized pricein Canadian dollar terms decreased by 24% to CDN $6.68 (US $5.89) in 2006 from CDN $8.74 (US $7.22)in 2005.*2005 versus 2004*Gross revenue for the year increased 7%, to $34.3 million in 2005 from $32.2 million in 2004.The Seabee mine contributed $23.1 million to revenue in 2005, a 3% improvement from the $22.5million recorded in 2004. This improvement was largely a result of the 1,000 additional ounces soldin 2005 (2005 – 42,200; 2004 – 41,200). An 8% increase in the average US dollar gold price realizedwas almost entirely offset by the strengthening Canadian dollar and resulted in minimal improvementin Canadian dollar prices realized: 2005 — $548 (US $452); 2004 — $545 (US $419).Production of 44,600 ounces for 2005 was 3% below the forecast of 46,000 ounces. This was largelydue to fewer tonnes mined and milled combined with certain stoping blocks not performing toestimated reserve grade, primarily during the first three quarters of the year.Gross oil, NGLs and natural gas revenues totalled $11.1 million in 2005, a 14% improvement from the$9.7 million in 2004. This increase was due to higher average realized prices, particularly towardsthe latter half of 2005 of the year, partially offset by normal production declines. Correspondingincreases in both Alberta crown royalties and overriding royalties partially mitigated the increasein net revenue.The 2005 oil and NGLs sales volume of 83,000 barrels was 9% lower than the 90,900 barrels sold in2004. The average realized price per barrel in Canadian dollar terms improved 6% to CDN $49.55 (US$40.94) in 2005 from CDN $46.92 (US $36.06) in 2004.Natural gas volumes fell 16% to 669 MMCF in 2005 from 796 MMCF in 2004. The average realized pricein Canadian dollar terms increased by 34% to CDN $8.74 (US $7.22) in 2005 from CDN $6.51 (US $5.00)in 2004.Also significant is the much improved average Canadian dollar prices realized in January 2005versus December 2005. Oil, NGLs and gas improved from $55.77, $30.63 and $6.78 in January to$66.04, $42.40 and $11.60 in December, respectively.**Expenditures***2006 versus 2005*For the year, the Company recorded mine operating costs of $21.3 million, a 16% increase from the$18.3 million reported for 2005. This was largely the result of a general increase in costscombined with the expensing of higher cost stockpile inventory. Total cash cost per ounceincreased to US $396 in 2006 from US $358 in 2005. The US dollar per ounce increase was due to acombination of higher mine operating costs and stronger Canadian versus US dollar exchange rate,partially offset by improved sales volume.Oil, NGLs and natural gas operating costs increased by 21% to $2.3 million in 2006 from $1.9million in 2005. The Company is experiencing the same cost pressures with respect to its oil andnatural gas assets as it is currently experiencing with its mining assets.
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For the year, depreciation, depletion and accretion of Claude’s gold assets increased 3% to $10.0million in 2006 from $9.7 million in 2005. The increase was due to a combination of more tonnesmilled and the amortization of a larger asset base, offset by fewer tonnes mined.Depreciation, depletion and accretion of the Company’s oil and gas assets fell slightly, largelydue to lower production and a declining reserve base – the result of declining natural gas prices.**Total Cash Costs****(1)****per Gold Ounce Sold**             **Years ended** **2006**  **2005**  **2004** Cash operating costs (CDN $millions) $21.3  $18.3  $15.9 Divided by ounces sold  47,400   42,200   41,200  Total cash costs per ounce (CDN$) $449  $434  $386               CDN $Exchange Rate  1.1342   1.2116   1.2997 Total cash costs per ounce (US$) $396  $358  $297 (1) For an explanation of the use of non-GAAP performance measures refer to page 17.*2005 versus 2004*A 59% and 26% increase in tonnes mined and milled, respectively, for 2005 compared to 2004,resulted in a 15% increase in mine operating costs: 2005 — $18.3 million, 2004 — $15.9 million. Aswell, the Company is experiencing the industry-wide effects of increasing labour and consumablecosts. Total cash costs per ounce increased to US $358 in 2005 from US $297 in 2004. This 21%increase was the result of the higher operating costs offset by the slightly improved sales volume.The strengthening Canadian dollar was responsible for US $25 of the US $63 unit cost increase in2005.Oil, NGLs and gas operating costs increased to $1.9 million in 2005 from $1.6 million in 2004. Thiswas a result of salt water disposal and emulsion treatment charges on the Zama property – primarilythe Keg River Unit.Depreciation, depletion and accretion of the Company’s gold assets was $9.7 million in 2005compared to $6.0 million in 2004. Several factors contributed to the 62% increase: larger assetbase used in calculations, more tonnes broken and milled in the year, and slightly decliningreserve base. These higher non-cash charges together with the strengthening Canadian dollar leddepreciation, depletion and accretion costs per ounce to increase from US $112 in 2004 to US $191in 2005.Depreciation, depletion and accretion of the Company’s oil and gas assets remained relativelyunchanged, a result of the larger asset base used in the units of production calculation, offset bythe increased reserve base.**Administrative Expense**General and administrative costs increased by 29% to $2.7 million in 2006 from $2.1 million in2005. This was largely a result of the added focus on investor relations, SOX compliance and staffadditions.**Gain on Sale of Assets**During the year, the Company realized a $4.8 million gain on the sale of certain of itsportfolio investments and a $1.1 million gain on the sale of an exploration property. In 2005, a$1.4 million gain was realized on the sale of certain portfolio investments.
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**Stock Compensation Expense**Stock-based compensation was $0.5 million in 2006 compared to $0.2 million in 2005. Thisnon-cash expense was lower in 2005 as fewer options were granted.**Income Taxes**The income tax recovery of $2.7 million was the estimated income tax benefit arising from theissuance of flow-through shares in 2005 and the subsequent renouncement of those expenditures in2006. A similar benefit of $1.3 million was recorded in 2005.**Liquidity and Financial Resources**Cash flow from operations before net change in non-cash working capital items was $9.2 millionin 2006, or $0.13 per share, compared to $4.5 million, or $0.07 per share, in 2005. This year’ssizable improvement from 2005 was attributable to increased contributions from the Seabee mine.**Investing**Mineral property expenditures were $20.5 million in 2006, an increase from $17.7 million in2005. This year’s expenditures were comprised of the following: Seabee mine development of $8.6million (2005 — $7.6 million); exploration costs, focusing on the Porky and Santoy Lake bulk sampleprojects of $7.6 million (2005 — $4.4 million); property, plant and equipment charges of $3.0million (2005 — $5.0 million); Seabee mine tailings project of $1.1 million; and the Tartan Lakeexploration project of $0.2 million. Property, plant and equipment charges include miningequipment, mill expansion costs and camp infrastructure.Oil and gas capital expenditures were $2.2 million during the year, a decrease from $2.3 million in2005. Of this, $0.7 million relates to drilling on both the Nipisi and Edson Units and $1.5million relates to infrastructure costs on the Nipisi unit and Edson gas plant.Pursuant to the sale of a production royalty, the Company received a promissory note in the amountof $35.0 million as part of the Red Mile transaction. The Company received a similar promissorynote at the end of 2005 for $14.0 million. This transaction is detailed in Note 7 to the annualconsolidated financial statements.During the year, the Company disposed of a portion of its portfolio investment for net proceeds of$5.0 million. The Company holds several investments in publicly traded entities which have a bookvalue of $1.4 million and fair market value of $1.9 million at December 31, 2006.**Financing**In November, the Company completed a private placement offering for the issue of 3,333,028common shares, issued on a flow-through basis for $1.65 per share, for gross proceeds of $5.5million. These proceeds will be used to partially fund exploration programs at both Madsen andSeabee properties.The proceeds on sale of royalty relates to the $35.0 million payment received on the Red Miletransaction. The Company sold a similar production royalty at the end of 2005.The Company borrowed $5.0 million in the form of a demand loan bearing interest at prime plus 1.5%,payable in monthly installments of $83,333 plus interest and due December 2007. At December 31,2006, the Company had two demand loans outstanding and repaid $1.3 million during the year.The proceeds and repayments on capital lease obligations relate primarily to equipment acquired forthe Porky and Santoy Lake bulk sample projects.
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As a result of the considerable capital invested in 2006, the Company expects to meet its capitalrequirements through a combination of operating cash flows and anequity issue approved by the Board of Directors subsequent to theBalance Sheet date.**Contractual Obligations**The Company’s contractual and other obligations as at December 31, 2006 are summarized asfollows:                       **Payments/Commitments due by period**          **Less than** **2-3** **4-5** **More than**  **Total** **1 year** **years** **years** **5 years****Contractual Obligation**                     Demand Loans  8,000,000   5,652,000   2,156,000   192,000   — Interest on Demand Loan  626,000   464,000   160,000   2,000   — Capital Lease Obligation  792,000   290,000   461,000   41,000   — Office Lease  330,000   132,000   198,000   —   — Flow-Through Expenditures  4,700,000   4,700,000   —   —   — Royalty Payments(1)  32,426,000   3,358,000   7,432,000   7,818,000   13,818,000 Royalty Obligations(1)  56,112,000   —   —   —   56,112,000     102,986,000   14,596,000   10,407,000   8,053,000   69,930,000  (1) To repay the Royalty and Royalty Obligation, funds are available from thePromissory Note.**Contingency**Pursuant to a Notice of Contravention issued by Saskatchewan Labour, Occupational Health andSafety Division, dated March 17, 2003, the Company was ordered to reinstate three workers andreimburse them for lost pay and benefits. The contravention alleges that the Company dismissedthese employees contrary to the Occupational Health and Safety Act. The contravention was appealedto the Executive Director, an adjudicator and subsequently to the Court of Queen’s Bench. InSeptember 2005, the Court of Queen’s Bench agreed with the Company’s position, allowing the appealand setting aside the contravention. This Court’s decision was subsequently appealed by theplaintiffs and was subsequently dismissed by the Court of Appeal. This Court’s decision iscurrently under appeal by the plaintiffs to the Supreme Court of Canada. The amount of potentialloss may involve payment of approximately 18 months in back pay to each of the employees and willbe recognized in earnings at the time of settlement, if any. Management is of the opinion theseclaims are without merit.**Derivative Instruments and Hedging Activities**To mitigate the effects of price fluctuations in revenue, Claude may undertake hedgingtransactions, from time to time, in respect of the price of gold and foreign exchange rates.At December 31, 2006, the Company had no outstanding forward gold or foreign exchange contracts.**Accounting Estimates**Claude’s significant accounting policies are contained in Note 1 to the consolidated financialstatements. The following is a discussion of the accounting estimates that are critical indetermining the Company’s financial results.
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**Reserves**The Company engages independent professional consultants to evaluate its mineral reserves aswell as its proved and probable oil, NGLs and natural gas reserves. Estimation of reserves involvesthe exercise of judgment. Forecasts are based on geological, geophysical, engineering and economicdata, all of which are subject to many uncertainties and interpretations. The Company expects that,over time, reserve estimates may be revised upward or downward based on updated information. Suchinformation may include revisions to geological data or assumptions, a change in economic data, andthe results of drilling and exploration activities. Reserve estimates can have a significant impacton net earnings, as they are a key component in the calculation of depreciation and depletion. Inaddition, changes in reserve estimates, gold, petroleum or natural gas prices and future operatingand capital costs can have a significant impact on the impairment assessments of the assets.**Asset Retirement Obligations**Claude’s mining, exploration and development activities are subject to various levels offederal and provincial law as well as environmental regulations, including requirements for closureand reclamation. Management judgment and estimates are made when estimating reclamation and closurecosts. In some cases, these costs will be incurred many years from the date of estimate. Estimatesmay be revised as a result of changes in government regulations or assumptions.**Shrinkage Stope Platform Costs**The Company utilizes shrinkage stoping and long-hole mining as its primary mining methods tomine the Seabee orebody. Under this method, ore used as a working platform to access and minefurther ore is valued at the lower of cost and net realizable value, and recorded as shrinkagestope platform costs on the balance sheet. This broken ore is reclassified to inventory onceremoved from the stope and taken to surface. If actual tonnage and grade vary significantly fromestimates or if the price of gold declines such that the timing of processing the ore is affected,there could be a material impact on the profitability of mining operations.**Future Tax Assets and Liabilities**Future tax assets and liabilities are calculated using the asset and liability method. Underthe asset and liability method, future tax assets and liabilities are recognized for the future taxconsequences attributable to differences between the financial statement carrying amounts ofexisting assets and liabilities and their respective tax bases. Future tax assets and liabilitiesare measured using current tax rates. The effect on future tax assets and liabilities of a changein tax rates is recognized in income in the period the change is known. To the extent that theCompany considers it to be more likely than not that a future tax asset will be recovered, a taxasset will be setup, otherwise it provides a valuation allowance against the excess.**Risk Management**Claude’s profitability is dependent on several factors: the quantity of gold and oil & gasproduced, related commodity prices, operating costs, capital expenditures, exploration levels andenvironmental regulations.**Inherent Exploration and Mining Risks**The exploration for and development of mineral deposits involves significant risks, which eventhe combination of careful evaluation, experience and knowledge may not eliminate. It is impossibleto guarantee that current or future exploration programs on existing mineral properties willestablish reserves. Whether an orebody will continue to be commercially viable depends on a numberof factors. These factors include particular attributes of the deposit, such as size, grade andproximity to infrastructure, as well as metal prices, which cannot be predicted and have beenhighly volatile in the past.
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**Non-Operator Status of Oil and Gas Properties**All of Claude’s Alberta oil and gas properties are operated by others; as such, the Companyhas little or no control over the operation of these assets. The Company relies on the operators toensure they are following best industry practices and thereby mitigating potential risks. The riskfactors inherent in the Company’s oil and gas operations are similar to those of its goldoperations.**Gold Price Volatility**The economics of developing gold properties is affected by many factors, from cost ofoperations to variations in the grade of ore mined and the price of gold. Depending on the price ofgold, the Company may determine that it is impractical to commence or continue commercialproduction. The price of gold has fluctuated in recent years. During the year ended December 31,2006, the market price for gold ranged from a low of US $525 to a high of US $725, with an averageprice of US $603.Any significant drop in the price of gold adversely impacts Claude’s revenues, profitability andcash flows. Also, sustained low gold prices may cause the cessation of new mining projects;decrease the amount of capital available for exploration activities; reduce existing reserves byrendering blocks with grades marginally above mine cut-off uneconomic; or cause the write-off of anasset whose value is impaired by the low price of gold.**Foreign Exchange Risk**The price of gold and oil & gas is denominated in US dollars and, accordingly, Claude’srevenue from operations are denominated and received in US dollars. As a result, fluctuations inthe US dollar against the Canadian dollar could result in unanticipated changes in the Company’sfinancial results, which are reported in Canadian dollars. During the year ended December 31, 2006,CDN$/US$ exchange rate ranged from a low of $1.0990 to a high of $1.1726, with an average of$1.1342.**Ore Reserves and Ore Grade Estimates**Claude has assessed its mineral reserves and mineral resources, and while the Company believesthat the calculation methods used are appropriate, such calculations are estimates. As well,estimates of mineral reserves and mineral resources are inherently imprecise and depend to someextent on statistical inferences drawn from limited drilling, which may prove unreliable. Theindicated level for the recovery of gold or other minerals may not be realized. Market pricefluctuations of gold or other minerals may render reserves and deposits containing relatively lowergrades of mineralization uneconomic. Moreover, short-term operating factors related to the mineralreserves, such as the need for orderly development of the deposits or the processing of new ordifferent grades, may cause mining operations to be unprofitable in any particular period.**Environmental Risk**In connection with its operations and properties, Claude is subject to extensive and changingenvironmental legislation, regulation and actions. The Company cannot predict what environmentallegislation, regulation or policy will be enacted or adopted in the future or how future laws andregulations will be administered or interpreted. The recent trend in environmental legislation andregulation is generally toward stricter standards, a trend that is likely to continue in thefuture, may necessitate significant capital outlays. It may also materially affect Claude’s resultsof operations and business, or cause material changes or delays in the Company’s intendedactivities.**Unfavourable Government Regulatory Changes**Claude is affected to varying degrees by government regulations that relate to miningoperations, the acquisition of land, pollution control and environmental protection, safety,production and expropriation of property. Changes in these regulations or in their application arebeyond the control of the Company and
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may adversely affect its operations, business and results ofoperations. Failure to comply with conditions set out in any permit or failure to comply withapplicable statutes and regulations may result in orders tocease or curtail operations or to install additional equipment. The Company may be required tocompensate those suffering loss or damage by reason of its operating or exploration activities.Operations may also be affected by government regulations with respect to restrictions onproduction, price controls, export controls, foreign exchange controls, income taxes, expropriationof property, environmental legislation and mine safety.**Access to Funding**Claude’s ability to continue or expand its production, exploration and development activitiesdepends in part on its ability to generate revenues from its operations or to obtain financingthrough joint ventures, debt financing, equity financing, production sharing arrangements or othermeans.If the Company fails to meet its ongoing obligations on a timely basis it could result in the lossor substantial dilution of its interest (as existing or as proposed to be acquired) in itsproperties. In addition, Management estimates that, after the completion of the bulk samples at thePorky and Santoy properties, $7.5 million to $10.0 million is the minimum exploration expenditurerequired to fulfill Claude’s intended exploration programs.As a result of a flow-through share agreement entered into in 2006, the Company is required toexpend $5.5 million in qualifying Canadian Exploration Expenses, as defined by the Canadian IncomeTax Act, prior to December 31, 2007. At December 31, 2006, $4.7 million remains to be incurred.For general working capital purposes, the Company raised $5.0 million via a demand loan during thethird quarter of 2006.To fund aggressive exploration programs at the Madsen and Seabeeproperties and to dewater theMadsen shaft, the Company has, subsequent to the Balance Sheet date and subject to regulatory approval, entered into anagreement for the issue of 12,500,000 common shares for an issue price of $1.60, with gross proceeds of $20,000,000. Inaddition, there is an over-allotment option to purchase an additional 1,875,000 common shares for an issue price of$1.60, with gross proceeds of $3,000,000.**Industry Competition**Claude’s business is intensely competitive. The Company necessarily competes with other miningcompanies, some of which have greater resources and experience. Competition in the precious metalsmining industry is primarily for mineral-rich properties that can be developed and producedeconomically. There is also competition for the technical expertise to find, develop and producesuch properties; the labour to operate them; and the capital to finance their development.If the Company is unable to compete with other mining companies for these mineral deposits, itcould have a material adverse effect on Claude’s results of operations and business.**Personnel Risk**Many of the projects undertaken by the Company rely on the availability of skilled labour andthe capital outlays required to employ such labour. The Company employs full-time and part-timeemployees, contractors and consultants to assist in executing operations and providing technicalguidance. In the event of a skilled labour shortage, various projects of the Company may notbecome operational due to increased capital outlays associated with labour.**Title to Company Properties**Acquisition of title to mineral properties is a very detailed and time-consuming process.Claude has investigated title to all of its mineral properties and has obtained title opinions withrespect to its most significant properties. To the best of the Company’s knowledge, titles to allproperties are in good standing.
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For the Madsen properties, Claude has searched title records forany and all encumbrances. For the Seabee property, the Company has examined property searchabstracts from Saskatchewan Industry & Resourcesas well as made inquiries and reviewed lease files from the department. It has also receivedconfirmation of title from Saskatchewan Environment.The title to the Company’s properties could be challenged or impugned. The properties may have beenacquired in error from parties who did not possess transferable title, may be subject to priorunregistered agreements or transfers, and title may be affected by undetected defects.**Insurance**In the course of exploration, development and production of mineral properties, certain risksmay occur, in particular, unexpected or unusual operating conditions such as rock bursts, cave-ins,fire, flooding and earthquakes. It is not always possible to fully insure against such risks andClaude may decide not to insure as a result of high premiums or other reasons. Should suchliabilities arise, they could reduce or eliminate any future profitability and result in increasedcosts and a decline in the value of the Company’s securities.**Outlook**For 2007, the Company will focus on the following: i) advancing the Madsen exploration property — investing in both surface and undergrounddrilling programs;  ii) advancing Seabee area exploration properties – completing the Santoy 7 bulk sampleand targeting Santoy 8 for proposed pre-feasibility study;  iii) continuing Seabee mine exploration and development to increase or sustain reservesand resources;  iv) investing in capital projects to increase productivity, efficiency and effectivenessof the Seabee mine operations.Seabee mine gold production is forecast at 48,000 ounces with mine cash operating costs similar to2006. Capital is expected to increase as a result of added investment at Madsen and the Seabeemine and area.Oil and gas revenues are expected to remain at 2006 levels or decline slightly – a result of normalproduction declines combined with similar petroleum and natural gas pricing. Operating costsshould remain consistent or increase slightly to $2.5 million. Capital expenditures should remainthe same as 2006 actuals.TheCompany expects that a combination of operating cash flows and anequity issue subsequent to the Balance Sheet date will provide sufficient funding for its 2007 plannedcapital investments.**Key Sensitivities**Earnings from Claude’s gold and oil & gas operations are sensitive to fluctuations in bothcommodity and currency prices. The key factors and their approximate effect on earnings, earningsper share and cash flow, based on assumptions comparable to 2006 actuals, are as follows:**Gold**For a US $10 price movement in gold price per ounce, earnings and cash flow will have acorresponding movement of CDN $0.5 million, or $0.01 per share. For a $0.01 movement in theUS$/CDN$ exchange rate, earnings and cash flow will have a corresponding movement of $0.4 million.
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**Oil & Natural Gas**For a US $5 price movement in oil price per barrel, earnings and cash flow will have acorresponding movement of $0.4 million ($0.00 per share). For a US $1 price movement in natural gasprice per MCF, earnings and cash flow will have a corresponding movement of $0.7 million ($0.01 pershare). A $0.01 movement in the US$/CDN$ exchange rate does not have a material effect on earningsand cash flow.**Fourth quarter Results and Selected Financial Information**During the quarter ended December 31, 2006, the Company recorded a net loss of $0.4 million,or $0.01 per share after the gain on sale of assets of $2.0 million. This compares to net earningsof $1.0 million, or $0.01 per share, after a $1.4 million gain on sale of assets for the sameperiod last year. During the quarter, cash flow from operations before net change in non-cashworking capital items of $0.5 million, or $0.01 per share, compares to $2.1 million, or $0.03 pershare, recorded for the fourth quarter of 2005.Total revenue generated for the fourth quarter was $9.5 million, a 17% decline from the $11.4million reported for the same period in 2005. The Seabee mine contributed $7.5 million to revenueduring the last quarter of 2006 compared to $7.9 million for the same period in 2005. This was dueto lower gold sales volume (Q42006 – 10,700 ounces; Q42005 – 13,900 ounces) offset by a 24%, or$138 per ounce, increase in Canadian dollar gold prices realized: Q42006 — $707 (US $620); Q42005- $569 (US $485).Oil, NGLs and natural gas revenue for the three months ended December 31, 2006 decreasedsignificantly to $2.0 million in 2006 from $3.4 million in 2005. This decrease is attributable toproduction declines, decreased petroleum prices (Q42006 — CDN $59.29; Q42005 — CDN $63.77) anddecreased natural gas prices (Q42006 — CDN $6.51; Q42005 — CDN $12.14). Alberta crown andoverriding royalties had corresponding decreases in Q4 2006 compared to Q4 2005.For the quarter ended December 31, 2006, total mine cash operating costs were $5.7 million, downslightly from the $5.8 million reported in 2005. This was a result of fewer tonnes mined duringthe quarter offset by milling of higher cost stockpiled ore. As well, these cash operating costswere offset by the lower gold sales volume and appreciating Canadian versus US dollar exchange,resulting in a 32% increase in cash operating cost per ounce (Q42006 – US $468; Q42005 – US $355).Oil, natural gas liquids and natural gas operating costs increased by 17% from $0.6 million in thefourth quarter of 2005 to $0.7 million this quarter, and by 21% for the year, from $1.9 million in2005 to $2.3 million this year. The Company is experiencing the same cost pressures with respectto its oil and natural gas assets as it is currently experiencing with its mining assets.**Quarterly Information**                                        December 31       September 30       June 30       March 31 Unaudited ($ millions) **2006**  2005  **2006**  2005  **2006**  2005  **2006**  2005 Gold sales  **7.5**   7.9   **7.7**   4.8   **8.9**   4.8   **8.4**   5.5 Oil and gas sales  **2.0**   3.4   **2.3**   2.5   **1.9**   2.7   **2.8**   2.5 Net earnings (loss)  **(0.4****)**  1.0   **—**   (2.9)  **2.4**   (1.9)  **4.4**   0.3 Net earning (loss) per share(1)  **(0.01****)**  0.01   **—**   (0.04)  **0.03**   (0.03)  **0.06**   — Average realized gold price (US$)  **620**   485   **627**   451   **621**   427   **556**   439 Ounces sold  **10,700**   13,900   **11,000**   8,900   **12,700**   9,100   **13,000**   10,300 Tonnes milled  **59,300**   66,400   **59,400**   60,500   **65,500**   55,400   **61,800**   54,200 Ounces produced  **10,300**   15,100   **11,100**   8,900   **12,900**   9,500   **12,100**   11,200 Grade processed (gpt)  **5.74**   7.60   **6.14**   4.96   **6.52**   5.69   **6.58**   6.93 Cash cost per ounce(2) (US$oz)  **468**   355   **417**   393   **362**   377   **353**   319 CDN$/US$Exchange  **1.1393**   1.1733   **1.1212**   1.2014   **1.1224**   1.2391   **1.1545**   1.2270 (1) Basic and diluted, calculated based on the number of shares issued andoutstanding during the quarter.
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(2) For an explanation of non-GAAP performance measures refer to “Non-GAAPPerformance Measures”.The financial results for the last eight quarters reflect the following general trends:improvement in averagerealized gold prices partially offset by the strengthening Canadian dollar; constant goldproduction – a combination of more tonnes processed at a slightly lower grade; declining oil andgas sales – a combination of lower realized prices combined with normal production declines; andincreasing cash costs per ounce – a result of increased mine operating costs.               **Dec 31/06**  Dec 31/05  Dec 31/04  Gross revenues  **41,388**   34,263   32,215 Nets earnings (loss)  **6,422**   (3,505)  (598)Net earnings (loss) per share,basic and diluted  **0.09**   (0.05)  (0.01)Total assets  **145,717**   94,878   65,946 Total long-term debt(1)  **56,614**   21,268   7,105 (1) Includes a $56.1 million royalty obligation which is funded by a promissorynote receivable.**Balance Sheet**The Company’s total assets were $145.7 million at December 31, 2006 compared to $94.9 millionat year-end 2005. The increase is mostly attributable to investments at the Seabee mine as well asthe promissory note received on the sale of a production royalty.The Company has an $8.0 million loan outstanding. As it is a demand loan, the entire amount hasbeen classified as a current liability for accounting purposes. The long-term debt amounting to$56.6 million relates to the Red Mile royalty obligations and capital lease obligations. Workingcapital improved by 12% to $7.7 million at December 31, 2006 from $6.9 million at December 31,2005.Shareholders’ equity for the year ended December 31, 2006 increased by $9.8 million. This increasereflects net earnings of $6.4 million, an increase to share capital of $2.9 million that was dueprimarily to a private placement during the year, and a $0.4 million increase to contributedsurplus that relates to the accounting for stock options.**Outstanding Share Data**At March 20, 2007, there were 77.0 million common shares outstanding. In addition, there were3.5 million employee stock options and 1.9 million warrants outstanding with exercise pricesranging from $0.53 to $2.10 per share and $1.10 to $1.30 per share, respectively.**Disclosure Controls and Procedures**As of December 31, 2006, the Company evaluated its disclosure controls and procedures asdefined under Multilateral Instrument 52-109. This evaluation was performed by the Chief ExecutiveOfficer and the Chief Financial Officer with the assistance of other Company employees to theextent necessary or appropriate. Based on this evaluation, the Chief Executive Officer and ChiefFinancial Officer concluded that the design and operation of these disclosure controls andprocedures were effective.**Internal Control Over Financial Reporting**Management is responsible for establishing and maintaining adequate internal control overfinancial reporting to provide reasonable assurance regarding the reliability of financialreporting and the preparation of financial statements for external purposes in accordance withGAAP. Management assessed the effectiveness of its internal control over financial reporting as atDecember 31, 2006, and based on that assessment determined that its internal control over financialreporting was effective.
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No changes were made in the internal control over financial reporting during the year endedDecember 31, 2006 that have materially affected, or are reasonably likely to materially affect,internal control over financial reporting.**Recent Accounting Pronouncements**The following summarizes future accounting policy changes that will be relevant to theCompany’s consolidated financial statements subsequent to December 31, 2006:The CICA has issued three new standards: Financial instruments – Recognition and Measurement,Hedges and Comprehensive Income effective January 1, 2007:*Financial instruments – Recognition and Measurement*All financial assets and liabilities will be carried at fair value in the consolidated balancesheet, except the following, which will be carried at amortized cost unless designated as held fortrading upon initial recognition: loans and receivables, certain securities and non-tradingfinancial liabilities. Realized and unrealized gains and losses on financial assets andliabilities that are held for trading will continue to be recorded in the consolidated statement ofearnings. Unrealized gains and losses on financial assets that are held as available for sale willbe recorded in other comprehensive income until realized, when they will be recorded in theconsolidated statement of earnings. All derivatives, including embedded derivatives that must beseparately accounted for, will be recorded at fair value in the consolidated balance sheet.*Hedges*In a fair value hedge, the change in fair value of the hedging derivative will be offset in theconsolidated statement of earnings against the change in the fair value of the hedged item relatingto the hedged risk. In a cash flow hedge, the change in fair value of the derivative, to theextent effective, will be recorded in other comprehensive income until the asset or liability beinghedged affects the consolidated statement of earnings, at which time the related change in fairvalue of the derivative will also be recorded in the consolidated statement of earnings. Any hedgeineffectiveness will be recorded in the consolidated statement of earnings.*Comprehensive Income*Unrealized gains and losses on financial assets that will be held as available for sale, unrealizedforeign currency translation amounts arising from self-sustaining foreign operations, and changesin the fair value of cash flow hedging instruments, will be recorded in a statement of othercomprehensive earnings until recognized in the consolidated statement of earnings. Othercomprehensive income will form part of shareholders’ equity.The Company does not believe these new standards will have a material impact on the financialstatements except for the accounting for available for sale securities, consistent with US GAAP, asdisclosed in note 21 to the consolidated financial statements.**Non-Gaap Performance Measures**The Company reports its cash operating costs on a per-ounce basis, based on uniform standardsdeveloped by the Gold Institute. Management uses this measure to analyze the profitability,compared to average realized gold prices, of the Seabee mine. Investors are cautioned that theabove measures may not be comparable to similarly titled measures of other companies, should thesecompanies not follow Gold Institute standards.Cash flow from operations is cash from operations before the net change in non-cash working capitalitems. Cash flow from operations per common share is determined by dividing the cash flow fromoperations by the weighted average number of common shares outstanding during the year. Managementuses this measure to analyze the cash generated by its operations. These measures are notnecessarily indicative of operating profit or cash from operations as determined under CanadianGAAP. Investors are cautioned that the above measures may not be comparable to similarly titledmeasures of other companies.**Caution Regarding Forward-Looking Information**This MD&A contains “forward-looking statements” that are based on Claude Resources Inc.’sexpectations, estimates and projections as of the dates the statements were made. Generally, theseforward-looking statements can be identified by the use of terminology such as “outlook”,“anticipate”, “project”,
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“forecast”, “target”, “believe”, “estimate”, “expect”, “intent”, “should”,“could” and similar expressions. These forward-looking statements are subject to known and unknownrisks and uncertainties and other factors which may cause actual results, levels of activity andachievements to differ materially from thoseexpressed or implied by such statements. Such factors include, but are not limited to, gold priceand foreign currency exchange rate volatility and to uncertainties and costs related to:exploration and development activities, production rates, cash and total costs of production, orthe ability to obtain necessary permitting or financing.A discussion of these and other factors that may affect Claude Resources Inc.’s actual results,performance, achievements or financial position is contained in the filings by Claude Resourceswith the Canadian provincial securities commissions and the United States Securities and ExchangeCommission.This list is not exhaustive of the factors that may affect Claude Resources Inc.’s forward-lookingstatements. These and other factors should be considered carefully and readers should not placeundue reliance on forward-looking statements. Claude Resources Inc. does not undertake anyobligation to update publicly or to revise any of the included forward-looking statements, whetheras a result of new information, future events or otherwise, except in accordance with applicablesecurities law.**Additional Information**Additional information related to the Company, including the Annual Information Form, isavailable on SEDAR at www.sedar.com, on EDGAR at www.sec.gov and onwww.clauderesources.com.
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