CORRIENTE RESOURCES INC.

MANAGEMENTS DISCUSSION & ANALYSIS

For the Year Ended December 31, 2008(Expressed in
Canadian dollars unless otherwise noted)

March 30, 2009

Introduction

This Managements Discussion and Analysis (MD&A) provides
managements comments on Corrientes operations and financial condition as at
and for the year ended December 31, 2008, as compared with preceding years.

In this MD&A, Corriente, the company, or the words
we, us, our refer to Corriente Resources Inc. and its subsidiaries.

For a complete understanding of our business environment, risks
and uncertainties and the effect of accounting estimates on our results of
operations and financial condition, this MD&A should be read together with
the audited Consolidated Financial Statements and related notes thereto for the
years ended December 31, 2008 and 2007, which are prepared in accordance with
Canadian generally accepted accounting principles (GAAP). The companys stated
accounting policies have been consistently followed in the preparation of these
financial statements, except that the company has adopted the guidelines
governed by Sections 1400, 1535, 3862 and 3863 of the CICA Handbook, General
Standards of Financial Statement Presentation, Capital Disclosures,
Financial Instruments  Disclosures and Financial Instruments 
Presentation, respectively, commencing January 1, 2008.

All amounts are in Canadian dollars unless otherwise stated.

The audited Consolidated Financial Statements and this MD&A
were reviewed by Corrientes Audit Committee and were approved by our Board of
Directors.

Additional information about Corriente, including our 2008
Annual Information Form, is available on our website at www.corriente.com, on the SEDAR website at www.sedar.com , and on the EDGAR section of the U.S.
Securities and Exchange Commission website (which includes the companys Annual
Report on Form 40-F) at www.sec.gov.

This document contains forward-looking statements, which are
qualified by reference to, and should be read together with the Cautionary
Statement on Forward-Looking Statements on page 25 of this MD&A.

Qualified Person

John Drobe, P.Geo., the companys Chief Geologist, is the
Qualified Person as defined by National Instrument 43-101 of the Canadian
Securities Administrators (NI 43-101) and responsible for the preparation
and/or verification of the technical disclosure in this document, unless
otherwise noted.

Business of the company

Corriente is a junior resource company focused on advanced
exploration and development of copper and copper-gold mineral resources in South
America. Over the past 10 years, the company has advanced the development of 2
copper-gold projects in the Rio Zamora copper porphyry district (known as the
Corriente Copper Belt), in the Morona-Santiago and Zamora-Chinchipe provinces
of southeast Ecuador.

Corriente controls a 100% interest in approximately 49,000
hectares located within the Corriente Copper Belt (the CCB). The company has
identified four main copper and copper-gold porphyry deposits in the CCB, which
we refer to as Mirador and Mirador Norte, and Panantza and San Carlos. The
companys CCB development strategies reflect a pairing of these deposits into
the Mirador Project and Panantza-San Carlos Project, respectively.

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During the transition period between the old and new
presidential administrations of November 2006 to January 2007, a series of
protests took place in the Morona-Santiago and Zamora-Chinchipe provinces of
Ecuador against mining resource development. In order to secure the safety and
security of local communities, the Ecuador Government imposed a suspension of
fieldwork activities for the companys Mirador and Panantza-San Carlos Projects.
This suspension was subsequently formalized in December 2006 by a suspension
order from the Sub-Secretary of Environments office within the Ministry of
Mining and Petroleum (the MMP) covering the companys Mirador and Panantza-San
Carlos Projects concessions.

Despite this suspension of fieldwork activities, the company
was able to continue offsite development work in 2007 and through the first
quarter of 2008 on enhancements to various engineering aspects of the
Projects.

Subsequently, and as a result of the Mining Mandate (more fully
explained below), a suspension of all of the fieldwork activities of all mining
companies in Ecuador was imposed as of April 18, 2008 by the MMP.

To December 31, 2008, the company has recorded acquisition,
exploration and development costs of approximately $82 million and completed an
updated feasibility study in April 2008 (Mirador FS) for a first phase 30,000
tonnes per day concentrator operation for the Mirador Project. The Mirador FS
shows a projected initial capital cost of approximately US$ 399 million and
approximately US$ 19 million in working capital, which would be spent over a two
year construction period prior to the start of production.

Additionally, the company has recorded acquisition, exploration
and development costs of approximately $9 million and completed a preliminary
assessment study for a 90,000 tonnes per day concentrator operation for the
Panantza-San Carlos Project in November 2007. With estimated capital costs in
the order of US$1.3 billion for the Panantza  San Carlos Project, management
believes that this project is better suited for advancement by a large company
having the financial and technical resources required to fast-track its
development to production.

Consequently, Corriente announced in January 2008 that it had
started the process of contacting potentially interested parties to become
majority strategic partners in the Panantza-San Carlos Project, with assistance
from Citigroup Global Markets (Citi) and CanaccordAdams. In October 2008, the
company completed conducting in-country due diligence visits with a number of
interested industry parties from around the world. All of these parties have the
capability of advancing a multi-billion dollar copper district opportunity, such
as is characterized by the Mirador and Panantza-San Carlos Projects in southeast
Ecuador. The due diligence process included technical reviews of all of
Corrientes assets in Ecuador and meetings with local community and indigenous
representatives. In addition, meetings were held with senior government
officials in Quito to form a better understanding of the intentions of the
Government of Ecuador regarding the development of responsible mining in the
country.

As a result of the combination of high purchaser interest and
the significant financing challenges associated with both of the companys
projects , discussions progressed to a stage where the company announced in
December 2008 that it had entered into a period of exclusive negotiations with a
selected party for the potential sale of the entire company.

Should potential sale negotiations not be successful, the
company has sufficient financial resources to continue advanced development of
both projects in 2009 and 2010, subject to regulatory conditions imposed by the
Government of Ecuador.

Significant Events for the Period Ended December 31, 2008
and to date(more fully described herein)

January 2008

- The company initiated the Panantza-San Carlos partnership marketing
  process with the contacting of parties which were believed to be potentially
  interested in becoming majority strategic partners in the development of the
  Panantza  San Carlos Project, with assistance from Citi and CanaccordAdams.

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April 2008

- The completion of an updated NI 43-101 compliant Feasibility Study
  Technical Report for the Mirador Project (Mirador FS) was announced. The
  Mirador FS projects an average of almost 130 million pounds of annual copper
  production for the Project and shows a projected initial capital cost of
  approximately US$ 399 million and approximately US$ 19 million in working
  capital, which would be spent over a two year construction period prior to the
  start of production. The Mirador FS calls for daily throughput of the
  concentrator facility of approximately 30,000 tonnes per day, which is a
  material improvement over the original Mirador Project Feasibility Study
  released by the company in April 2005, which planned for 25,000 tonnes per
  day.
- The Constitutional Assembly of Ecuador passed a Mining Mandate (the
  Mandate) into law on April 18, 2008, which established a number of
  conditions and restrictions on metallic mining concessions previously issued
  by the Government of Ecuador, which included the:

> immediate suspension of all of the fieldwork activities of all mining
>   companies in Ecuador, except for activities specifically allowed by the MMP;
>   andrevocation of concessions: for which concession patent fees had not been
>   paid by the established deadline; which were in the process of being granted
>   or transferred; concessions covering protected natural zones, protected
>   forests and those which affect the origin and sources of water; those
>   concessions granted to officials and former officials of the MMP and
>   predecessor ministries, or any members of their family; for which the
>   Environmental Impact Assessment application process had not yet been completed
>   or initiated; and for which no development investments had been recorded with
>   the State.

September 2008

- On September 28, 2008, a national referendum was held with over 60% of the
  populace voting in favour of the countrys new Constitution, thereby
  surpassing the simple majority needed to approve a new national Constitution
  for Ecuador.

October 2008

- The company announced that due diligence visits in Ecuador had been
  completed by those parties actively engaged in the Panantza-San Carlos
  partnership marketing process.
- Corriente signs an agreement with SECAP, the Ecuadorean Ministry of Labour
  and Human Resources Professional Training Service, to start a mining industry
  training program in the companys project areas.
- The Ecuador Government approved the Environmental License for Corriente to
  build and operate a dedicated seaport near Machala for the shipping of copper
  concentrate from the CCB.

December 2008

- The company announced it had entered into a period of exclusive
  negotiations with a specific (unnamed) party from a short-list of those
  parties actively engaged in the Panantza-San Carlos partnership marketing
  process, and that these negotiations had expanded from the original mandate to
  the potential sale of the entire company. Subject to earlier termination in
  certain circumstances, the exclusive negotiation period would extend to March
  31, 2009. See Strategies and Key Drivers  Development of the CCBbelow.

January 2009

- On January 29, 2009, a new Mining Law for Ecuador was published in the
  States Official Register, thereby becoming law. This law is a product of the
  Congressillo, after having gone through a review, amendment and approval
  process which included input from President Correa.

March 2009

- In a presentation given on March 2, 2009 at the Prospectors and Developers
  Association of Canada Conference (PDAC) in Toronto, Canada, Dr. José Serrano
  Delgado, Sub-Secretary of Mines announced that the MMP has lifted all
  suspensions on mining activities in Ecuador, and that formal letters to this
  effect were in the process of being sent to mining companies.

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- On March 17, 2009, the the company announced that it had received an
  official notice signed by Minister Derlis Palacios Guerrero of the MMP, which
  authorizes the company to re-initiate its field operations. Prior to resuming
  any drilling activity, the company will update its Water Use Concession
  (initially received in February 2009 for general water use at the Mirador
  camp) and its Environmental Permits with the appropriate agencies.

Ecuador political processes

Mining Law

The new Mining Law contains provisions which are generally
consistent with the companys expectations, though it contains some
contradictory and vague articles that are expected to be clarified by
accompanying Regulations, which are to be developed by the MMP within 120 days
from the Mining Laws enactment.

The Mining Law places no limits on the number of mining
concessions held by a single company, with concession terms limited to 25 years
but which are renewable. It also imposes a government royalty of not less than
5% on sales revenues, however, no specific details have yet been provided. Clear
timelines are also established for concession exploration and exploitation
(development) phases. The Mining Law also mandates the creation of a National
Mining Company, though no details have been provided regarding the nature and
scope of its intended activities.

The new Mining Law is considered to be a significant milestone
for the country and the nascent large-scale mining industry, and is expected to
provide the new legal framework for mining. However, much work remains to be
done in developing the Regulations to the Mining Law and finalizing the terms
and conditions that could foster feasible mining investments in Ecuador.

Mandate

Corriente currently holds 23 concessions in Ecuador, including
the Mirador Project and Panantza-San Carlos concession blocks. Prior to the
Mining Law coming into effect, 5 early exploration-stage concessions considered
to be immaterial and unrelated to our Mirador and Panantza-San Carlos Projects
were revoked by the MMP under the terms of the Mandate. According to the MMP
notices, these revocation notices were issued because Environmental Impact
Assessments for these concessions had not been approved by or related public
consultations held prior to the April 18, 2008 implementation of the Mandate.
The company plans to appeal the revocation of these concessions.

In the PDAC presentation given by the Ecuador Sub-Secretary of
Mines and the earlier-referenced formal letter received by the company from
Minister Palacios of the MMP, the governments position was represented that the
Articles of the Mandate have been complied with, and that the Mandate is no
longer in effect as of the enactment of the Mining Law. However, to date, no
clear or formal legal confirmation of this has been provided by the judiciary of
Ecuador.

National Elections

The Presidential, National Assembly representative and local
and regional elections are scheduled for April 26, 2009, with the official
election campaign period having been declared to begin as of January 26, 2009.
These would be the first elections held under the new Constitution. Based on
recent polls, President Correa is leading all contenders who have declared their
intention to run for the presidency.

Sixty days after the national vote is held, the newly-elected
national, regional and city representatives will take office.

Corporate Infrastructure

The companys shares trade on the Toronto Stock Exchange (TSX)
and the New York Stock Exchange  Amex (NYSE Amex), and as at March 30, 2009 had
a market capitalization of approximately $433 million.

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The companys executive head office is located in Vancouver,
Canada while its Ecuador operations are run from regional offices located in
Gualaquiza and Quito, Ecuador. The company also has camp locations at its major
projects in Ecuador. With the exception of short-term operational requirements
for its Ecuador operations, funds are maintained and controlled in Vancouver, in
both Canadian and US dollars.

In addition to its staff located in Vancouver and Ecuador, the
company engages consultants as necessary, to provide geological, mine
development and construction consulting, design, engineering and other services.
Overhead costs and efficiencies in Ecuador continue to compare favourably with
other South American exploration areas.

At December 31, 2008, the company had 98 employees (2007  72;
2006  108).

Strategies and Key Drivers

Government Relations

Since December 2006, Corrientes management has continually
sought to work closely with the Ecuador Government in realizing an objective of
developing a responsible mining industry for the benefit of all
stakeholders.

In this regard, we believe that recent developments, such as
the Presidents consistent support for large-scale mining and his stewardship in
the creation of a new Mining Law in the face of a vocal anti-mining movement,
provide evidence that this objective is being achieved.

Community Relations and Sustainable Development

Corrientes approach to business and sustainable development
involves implementing strategies beneficial to the community, environment and
the country and its economy. The companys commitment and obligation to these
strategies extend beyond standard compliance with national and international
guidelines and involve building relationships based on honesty, openness and
mutual trust. This is the essence of Corrientes community relations and
sustainable development theme: El Trato Justo or A Fair Deal

The company has designed and implemented a number of community
relations (CR) plan strategies after identifying local and regional
communities needs as well as the related impacts of the companys future mining
activities on these communities. The companys CR plans focus on the critical
needs of the local and regional communities and the provincial and federal
governments, and are regularly reviewed to ensure appropriateness and
effectiveness.

The company continues to be committed to local communities in
all aspects of its mining and economic development activities. Since 2004, the
company has actively initiated and provided financial, equipment and manpower
resources in the areas of education, employment, health, building assistance,
environmental preservation and cultural and economic development programs.

Sustainable development is a process that aims to maintain and
improve the quality of life not only for the present generation in areas and
communities in which the company works but also for future generations. It
involves the integration of three main components: environmental protection,
social sustainability and economic sustainability.

Development of the CCB

All of the companies that completed the Panantza-San Carlos
marketing process due diligence work expressed an interest in investing in
Corrientes entire package of copper and copper-gold assets in Ecuador. As a
result of the combination of high purchaser interest and the significant
financing challenges associated with both of the companys projects, discussions
progressed to a stage where the company announced in December 2008 that it had
entered into a period of exclusive negotiations with a selected party for the
potential sale of the entire company. This exclusive negotiating period is
slated to end March 31, 2009. Negotiations are then expected to continue with
the selected party but there can be no assurance that further negotiations, if
any, will result in an agreement for the sale of the company.

By having such companies involved, management believes that
this would ensure that adequate capital would be available to develop the
Panantza  San Carlos and Mirador Projects. Additionally, this would include a larger infrastructure bundle, given the scope and
multi-billion dollar size of the investments to be made in hydroelectric
development opportunities, transmission lines, multiple mines, pipelines and a
major port.

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Properties in Advanced Development - Mirador Project

In September 2006, Corrientes directors reviewed the
development status of the Mirador Project and approved managements
recommendation for the placement of orders for long lead-time equipment for the
project. This equipment included the main components of the grinding circuit
such as the SAG and ball mills. At that time, the company was working on an
accelerated timeline that had an estimated completion date of the Mirador
Project and start of production during the fourth quarter of 2008. These items
were on the critical path to meet that deadline.

In November 2006, a series of protests took place in the
Morona-Santiago and Zamora-Chinchipe provinces of Ecuador against mining
resource development. After a number of ineffective negotiating sessions were
held with the protesters, the Government of Ecuador requested the company to
temporarily suspend its Mirador Project activities to aid in the negotiating
process. In order to secure the safety and security of local communities and
supporters, this suspension was subsequently formalized in December 2006 by a
suspension order from the Sub-Secretary of Environments office within the MMP
covering the companys Mirador and Panantza-San Carlos Projects concessions.

In January 2007, the company announced that there would be a
delay in the planned start of production at the Mirador Project from late 2008
to approximately mid-2009. This delay was largely due to adjustments to long
lead-time equipment deliveries as a result of the decision to move off of the
previous accelerated Mirador Project development timeline. This accelerated
timeline was based on having key permits and government agreements completed by
January 2007. Since these permit applications and agreements were still being
processed and the company was restricted from resuming planned development
activities at Mirador, the companys directors elected to minimize the Mirador
Project obligations. This decision resulted in the termination clauses of
certain agreements with suppliers of key long lead-time components to the
Mirador Project to be invoked.

Despite the suspension of fieldwork activities at the Mirador
Project site, the company was able to continue offsite work in 2007 and 2008 on
enhancements to various engineering aspects of the Mirador Project. This
additional engineering and feasibility work was completed in the first quarter
of 2008, with the result that the Mirador FS was announced on April 3, 2008 and
subsequently made available on SEDAR. This report also includes a summary of the
economic model for a first phase 30,000 tonnes per day concentrator operation
for the Mirador Project.

The Mirador FS projects an average of almost 130 million pounds
of annual copper production for the Project and shows a projected initial
capital cost of approximately US$399 million and approximately US$19 million in
working capital. The Mirador FS calls for daily throughput of the concentrator
facility of 30,000 tonnes per day, which is a material improvement over the
original feasibility study results released by the company in April 2005, which
had a planned capacity of 25,000 tonnes per day.

The Mirador FS Base Case Net Present Value (NPV), after-tax,
is US$265 million, with an after-tax Internal Rate of Return (IRR) of 17.7%
(using metal prices of US$1.75/lb Cu, US$7.50/oz Ag, US$550/oz Au, 8% discount
rate, US$75/tonne and US$0.075/lb treatment and refining charges, respectively,
for Cu).

The Base Case mine plan only utilizes 41% of the Measured and
Indicated Resources at Mirador and none of the 235 Million tonnes of Inferred
Resources. In addition, the Base Case did not consider the 171 Million tonnes of
Measured and Indicated Resources or the 46 Million tonnes of Inferred Resources
at the nearby Mirador Norte deposit.

The Mirador Norte deposit is located less than one kilometre
from the planned Mirador Project milling facility. Confirmation of copper
resources at Mirador Norte provides additional options for the development of
the Mirador Project, including access to higher-grade enriched material from the
shallow parts of Mirador Norte and the flexibility of being able to shift
production from one pit to another.

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Even after all necessary permits are received, project
financing is in place, and a construction decision is made, it is managements
opinion that it would take a minimum of approximately 24 months to achieve
commencement of production for the Mirador Project.

As disclosed above, the fieldwork suspension orders that
applied to the companys Mirador, Panantza and San Carlos concessions were
lifted by the MMP, as announced by the company on March 17, 2009.

The resources that have been identified for the Mirador Project
are summarized below:

Table of Resources 
0.4% Copper Cut-off

|Measured and Indicated Resources |  |           |             |  |             |      |  |      |               |  |               |     |  |       |           |  |           |     | 
|-------------------------------- |  | --------- | ----------- |  | ----------- | ---- |  | ---- | ------------- |  | ------------- | --- |  | ----- | --------- |  | --------- | --- | 
|                                 |  |           |             |  |             |      |  |      |               |  |               |     |  | Au    |           |  |           |     | 
|Project                          |  | Category  |             |  | Tonnes      |      |  | Cu%  |               |  | Cu (lbs)      |     |  | (ppb) |           |  | Au oz     |     | 
|Mirador                          |  | Measured  |             |  | 52,610,000  |      |  | 0.65 |               |  | 753,000,000   |     |  | 210   |           |  | 360,000   |     | 
|                                 |  | Indicated |             |  | 385,060,000 |      |  | 0.60 |               |  | 5,134,000,000 |     |  | 190   |           |  | 2,380,000 |     | 
|                                 |  |           |             |  |             |      |  |      |               |  |               |     |  |       |           |  |           |     | 
|Measured & Indicated             |  |           | 437,670,000 |  |             | 0.61 |  |      | 5,887,000,000 |  |               | 200 |  |       | 2,740,000 |  |           | 1.5 | 
|                                 |  |           |             |  |             |      |  |      |               |  |               |     |  |       |           |  |           |     | 
|Mirador                          |  |           |             |  |             |      |  |      |               |  |               |     |  |       |           |  |           |     | 
|Norte                            |  | Indicated |             |  | 171,410,000 |      |  | 0.51 |               |  | 1,921,000,000 |     |  | 89    |           |  | 489,000   |     | 
|Total Measured & Indicated       |  |           | 609,080,000 |  |             | 0.58 |  |      | 7,808,000,000 |  |               | 169 |  |       | 3,229,000 |  |           | 1.5 | 

|Inferred Resources |  |                |  |  |             |  |  |      |  |  |               |  |  |       |  |  |           |  |  |       |  | 
|------------------ |  | -------------- |  |  | ----------- |  |  | ---- |  |  | ------------- |  |  | ----- |  |  | --------- |  |  | ----- |  | 
|                   |  |                |  |  |             |  |  |      |  |  |               |  |  | Au    |  |  |           |  |  | Ag    |  | 
|Project            |  | Category       |  |  | Tonnes      |  |  | Cu%  |  |  | Cu (lbs)      |  |  | (ppb) |  |  | Au oz     |  |  | (ppm) |  | 
|Mirador            |  | Inferred       |  |  | 235,400,000 |  |  | 0.52 |  |  | 2,708,000,000 |  |  | 170   |  |  | 1,250,000 |  |  | 1.3   |  | 
|Mirador Norte      |  | Inferred       |  |  | 45,820,000  |  |  | 0.51 |  |  | 513,000,000   |  |  | 68    |  |  | 101,000   |  |  | -     |  | 
|                   |  | Total Inferred |  |  |             |  |  |      |  |  | 3,221,000,000 |  |  |       |  |  |           |  |  |       |  | 

The Qualified Person under NI 43-101 for the resource estimates
quoted above is John Drobe, P.Geo, Chief Geologist for Corriente

For the year ended December 31, 2008, the company incurred
deferred development costs for the Mirador Project of $15,007,000 (2007 
$14,962,000; 2006  $20,418,000), including $3,771,000 (2007 -- $3,689,000; 2006
 $8,518,000) for the three-month period ended December 31, 2008.

Properties in Advanced Development - Panantza  San
Carlos Project

The Panantza and San Carlos project concessions are located
approximately 40 km north of the Mirador Project. Corriente was approximately
halfway through the first phase of a planned 16000 metres of drilling on the
Panantza project when these activities were suspended as part of the Mirador
Project suspension order referenced above. The drilling was the start of a
planned two-year program to complete a feasibility study at Panantza and San
Carlos, designed to incorporate the Panantza and San Carlos concessions into a
single large copper development opportunity.

Prior to 2006, Panantza was last drilled in late 2000. Results
from this previous drilling at Panantza included hole PA013 with 299 metres of
0.76% copper, hole PA012 with 269 metres of 0.97% copper, and hole PA017 with 64
metres of 1.29% secondary copper at the surface followed by 383 metres of 0.75%
copper.

In 2006, an additional 25 holes totalling 8400 metres were
completed. Results include hole PA039 with 17 metres of 1.31% copper in a
secondary copper horizon overlying 399 metres of 0.66% copper, hole PA041 with
443 metres of 0.60% copper, and hole PA052 with 276 metres of 0.77% copper.

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Current Inferred Resources at Panantza, which incorporate the
2006 drilling results into a block-model using updated geology models, and at a
0.4% copper cut-off, are approximately 463 million tonnes grading 0.66% copper,
containing 6.7 billion pounds of copper. The 2006 drilling added close to a
billion pounds of copper to the previous Panantza resource. Corriente will focus
on converting most of this resource to the Measured and Indicated category
during completion of the drill programme.

One objective of the 2006 Panantza drilling program was to
define the southern edge of the Panantza mineralization. However, rather than
delineate the edge of the Panantza deposit, the 2006 results indicate the
Panantza mineralization extends farther south than previously recognized. The
southernmost holes drilled, PA033 and PA034, were both terminated in copper
mineralization averaging over 0.8% Cu at the hole bottoms, at approximately 330
metres and 342 metres deep respectively. The Panantza drill plan has now been
expanded to complete additional holes to follow this mineralization to the
south.

In addition, the deepest holes from this round of drilling
(such as PA051) indicate that mineralization extends more than 200 metres deeper
than previous drilling in the southwest portion of the deposit and
mineralization remains open for further extension at depth. The deposit is also
still open to the west.

San Carlos is believed to be the largest copper-molybdenum
mineralized porphyry system in the CCB, with dimensions of about 2,000 metres x
2,500 metres. The mineralization has been tested with 25 diamond drill holes at
variable spacing, drilled by BHP Billiton in 1997 and 1998. The current
block-model based, Inferred Resource estimate, at a 0.4% copper cut-off, is 600
million tonnes grading 0.59% copper, containing 7.7 billion pounds of copper.
The next phase of drilling will attempt to expand the resources and convert the
bulk of the Inferred Resources to the Measured and Indicated categories.

A Preliminary Assessment Technical Report (the Report), dated
October 30, 2007, for a 90,000 tonnes per day combined Panantza-San Carlos
copper mining operation was completed and made available on SEDAR in December
2007. Highlights from the Report are:

- Base case NPV after tax of US$676 million and an IRR of 15.1% (using metal
  prices of US$1.50/lb Cu, US$7.50/oz Ag, US$550/oz Au and US$10.00/lb Mo, 8%
  discount rate, US$75/tonne and US $0.075/lb treatment and refining charges for
  Cu). Using US$2.00 copper, the after-tax NPV increases to US$1.718 billion and
  the IRR increases to 24.1%.
- Projected capital cost of approximately US$ 1.3 billion, which would be
  spent over a two year construction period prior to the start of production.
- Average annual metal production over the first 10 years of approximately
  418 million lbs of copper, 22,800 oz gold, 1,110,000 oz silver and 2,800,000
  lbs of molybdenum.
- The Report modeled a mine plan based on 678 million Inferred tonnes at a
  grade of 0.62% Cu, 0.05g/t Au, 1.3 g/t Ag and 0.008% Mo with estimated
  recoveries of 91% Cu, 30% Au (Panantza only), 70% Ag and 43% Mo.
- The cost to produce a pound of payable copper, net of other metal credits,
  and inclusive of marketing, smelting and transportation costs over the life of
  mine is estimated to be US$0.73/lb.
- The Project would generate up to 2,000 jobs during the construction period
  and could create over five hundred direct and almost 4,000 indirect jobs
  during the estimated 20 year life.
- Total estimated value of taxes, profit sharing and expenditures within
  Ecuador over the twenty year Project life is approximately US$6 billion.

Management feels that the Panantza-San Carlos concessions
represent a rare opportunity to capitalize on six years of community work,
project engineering and management development expertise that has been built
around the companys Mirador Project. This body of knowledge will significantly
assist in the project development process and at the same time allow the company
to take economic advantage of infrastructure that is being put in place for the
Mirador mine. The Project has been recommended to proceed to the Feasibility
Study stage, which has an estimated budget requirement of approximately US$12
million. The work includes detailed diamond drilling at both deposits to fully
delineate mineralization and provide core for metallurgical and geotechnical
studies. This work is planned to extend over a two year period. In addition, a
program of extensive community dialogue is planned to ensure that the voice of
local residents is reflected in any planned development ideas. Part of this
dialogue will include several public consultations, which will form part of the
on-going permitting process.

Page 8 of 26

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As disclosed above, the fieldwork suspension orders that
applied to the companys Mirador, Panantza and San Carlos concessions were
lifted by the MMP, as announced by the company on March 17, 2009.

Following is a summary Table of Resources setting out the
companys mineral property resources for its Panantza-San Carlos concession
blocks in the Corriente Copper Belt.

Table of Resources 0.4% Copper Cut-off

|Inferred Resources |  |                           |  |  |               |  |  |      |  | 
|------------------ |  | ------------------------- |  |  | ------------- |  |  | ---- |  | 
|Project            |  | Category                  |  |  | Tonnes        |  |  | Cu%  |  | 
|Panantza           |  | Inferred*                 |  |  | 463,000,000   |  |  | 0.66 |  | 
|San Carlos**       |  | Inferred*                 |  |  | 600,000,000   |  |  | 0.59 |  | 
|                   |  | Total Panantza-San Carlos |  |  | 1,063,000,000 |  |  | 0.62 |  | 

* does not include copper oxide
mineralized material that was previously included in resource estimate **
resources are calculated at 0.4% copper cut-off using data previously released
in June 2001 at a 0.65% copper cutoff The Qualified Person under NI 43-101
for the resource estimates quoted above is John Drobe, P.Geo, Chief Geologist,
Corriente

During the year ended December 31, 2008, the company incurred
exploration and development costs of $1,365,000 (2007  $1,181,000; 2006 
$2,479,000) for the Panantza-San Carlos project, including $429,000 (2007 
$259,000; 2006  $762,000) in the fourth quarter of 2008. The company focused
its development efforts for the Panantza-San Carlos Project on its community
relations programs in the district, review of the status of all
exploration-based EIAs and associated audits and the completion of the
Preliminary Assessment.

Other Exploration Projects and Machala Port

For the year period ended December 31, 2008, expenditures to
develop the companys concentrate shipping port facility in Machala, Ecuador
totalled $199,000 (2007  $231,000; 2006  $147,000), including $6,000 in the
fourth quarter of 2008 (2007  $153,000; 2006  $118,000). For the year ended
December 31, 2008, expenditures to purchase the port facility totalled $Nil
(2007  $Nil; 2006  $1,588,000).

For the year ended December 31, 2008, deferred exploration
costs of $36,000 (2007  $99,000; 2006  $38,000) were attributed to the
companys remaining copper exploration targets in the Corriente Copper Belt,
comprised of the Kutukus, La Florida, San Luis, San Marcos, San Miguel and Sutzu
concessions, including $17,000 (2007  $68,000; 2006  $19,000) for the fourth
quarter of 2008.

Environmental

Environmental Impact Assessments (EIA)

On May 4, 2006, Corriente announced that the Mirador Projects
EIA was approved by the MMP.

The EIA covered both the environmental aspects of proposed
mining operations in Mirador and community and social plans associated with the
same project. During the lengthy preparation of the EIA, the company worked
closely with the MMP to ensure that the report met all required government
guidelines and regulations. The Mirador EIA is one of the most comprehensive
documents on social and environmental issues ever submitted to the MMP in
Ecuador for a mining project. The submission of the EIA and subsequent approval
followed an extensive consultation process with local communities carried out in
late November and early December 2005.

As a requirement of the MMPs approval of the Mirador EIA, the
company was required to post US$3,024,000 (amortized cost at December 31, 2008 
C$3,683,000) in favour of the MMP as a security deposit against the companys
obligations under the EIA.The required security deposit amount is
reviewed on an annual basis by the MMP and is expected to be subject to
adjustment as the project progresses to completion.

Page 9 of 26

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In September 2006, the company filed an amendment to the
Mirador EIA (EIAA) to allow for mill, tailings and dump location changes to
the original mine plan. While subsequent public consultations were successful,
the EIAA was rejected by authorities in May 2007 and is being revised for
re-submittal now that the new Mining Law is in place. The EIAA will also
incorporate engineering enhancements completed through 2008 on the Mirador
Project.

For the company to receive a mine operating permit for the
Mirador Project, approvals for the EIAA and construction and operating-related
permit applications must be received from the MMP and other Ecuador governmental
authorities during the course of development of the Mirador mine, prior to the
beginning of mine operations.

In December 2007, Corriente announced that the Ministry of
Environment (the MOE) in Ecuador approved the EIA for the companys port
operation in Machala (the Machala EIA), which is designed to act as a shipping
facility for copper concentrates sent to overseas smelters. In October 2008, the
Ministry of Environment in Ecuador approved the Environmental License for
Corriente to build and operate the dedicated port. The company owns a 27 hectare
port site on the Santa Rosa Channel in Machala, which is connected to the
Mirador Project by a 400 km paved highway. Receipt of the Machala EIA is an
important part of the overall Mirador Project approval process and provides the
key access for a Pacific shipping route for the companys copper concentrates.
As a requirement of the MOEs approval of the Machala Port EIA, the company was
required to post US$307,000 (amortized cost at December 31, 2008  C$374,000) in
favour of the MMP as a security deposit against the companys EIA obligations.

Financial Results of Operations

The information provided below highlights the companys
quarterly results for the past 8 quarters. All of the financial information
referenced below is expressed in Canadian dollars (unless otherwise noted) and
has been prepared in accordance with Canadian GAAP. The accounting policies
followed by the company are set out in note 2 to the audited consolidated
financial statements of the company for the fiscal year ended December 31, 2008
and have been consistently followed in the preparation of the current periods
consolidated financial statements, except for the changes in accounting policies
for capital disclosures and financial instruments, as previously noted.

|Financial Data for Last Eight Quarters                               |   |         |   |   |        |   |   |        |  |   |        |   |   |        |   |   |        |  |  
|-------------------------------------------------------------------- | - | ------- | - | - | ------ | - | - | ------ |  | - | ------ | - | - | ------ | - | - | ------ |  | -
|In thousands of Canadian dollars, except for per share
      amounts |   |         |   |   |        |   |   |        |  |   |        |   |   |        |   |  
|Three-month period ended                                             |   | Dec-08  |   |   | Sep-08 |   |   | Jun-08 |  |   | Mar-08 |   |   | Dec-07 |   |   | Sep-07 |  |  
|                                                                     |   |         |   |   |        |   |   |        |  |   |        |   |   |        |   |   |        |  |  
|Total
      revenues                                                 | $ | 0       |   | $ | 0      |   | $ | 0      |  | $ | 0      |   | $ | 0      |   | $ | 0      |  | $
|General and                                                          |   |         |   |   |        |   |   |        |  |   |        |   |   |        |   |   |        |  |  
|administrative expenses                                              | $ | 824     |   | $ | 713    |   | $ | 823    |  | $ | 931    |   | $ | 961    |   | $ | 877    |  | $
|Other expenses                                                       |   |         |   |   |        |   |   |        |  |   |        |   |   |        |   |   |        |  |  
|(income)                                                             | $ | (10,886 | ) | $ | (3,664 | ) | $ | 15     |  | $ | (3,514 | ) | $ | (560   | ) | $ | 4,555  |  | $
|Loss
      (earnings)                                                | $ | (10,062 | ) | $ | (2,951 | ) | $ | 838    |  | $ | (2,583 | ) | $ | 401    |   | $ | 5,432  |  | $
|Basic and diluted loss                                               |   |         |   |   |        |   |   |        |  |   |        |   |   |        |   |   |        |  |  
|(earnings) per share                                                 | $ | (0.14   | ) | $ | (0.04  | ) | $ | 0.01   |  | $ | (0.03  | ) | $ | 0.01   |   | $ | 0.07   |  | $

As the company has not had any revenue-producing mineral
properties to date, no mining revenues are reflected in the above table.

In recent years, the companys net losses and earnings largely
reflect the impact of foreign exchange losses or gains on its holdings of US
dollars, and the interest income earned from Canadian and US cash and cash
equivalents on hand.

Since January 2007, the companys funds have been held
predominantly in US dollars, producing earnings from large foreign exchange
gains in the first, third and fourth quarters of 2008, and a loss in the second
quarter of 2008 due mainly to a modest foreign exchange loss and reduced
interest income. The significant losses in the second and third quarters of 2007
were also due to large foreign exchange losses.

In periods of loss, basic and diluted loss per share amounts
are the same because the effect of potential issuances of shares would be
anti-dilutive.

Page 10 of 26

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Fourth Quarter

For the three months ended December 31, 2008, the company had
net earnings of $10,062,000 (or $0.14 per share), compared with a net loss of
$401,000 (or $0.01 per share) for the same period in 2007 and net earnings of
$885,000 (or $0.01 per share) in the same period in 2006. The largest effect on
earnings came from a weakening of the Canadian dollar from US$1.0642 at
September 30, 2008 to US$1.2180 at December 31, 2008, which led to a foreign
exchange gain of $10,582,000 in the three months ended December 31, 2008,
compared to a foreign exchange loss of $319,000 in the same period in 2007. The
companys cash and cash equivalents and investments are predominantly in US
dollars.

Total administration expenses in the fourth quarter of 2008
were $824,000 (2007  $993,000; 2006  $618,000). Legal, accounting and
regulatory costs were $174,000 in the quarter ended December 31, 2008 (2007 
$274,000; 2006  $224,000). Consultants fees were $13,000 in the fourth quarter
of 2008, (2007  $92,000; 2006  $Nil).

Due to significant declines in interest rates and reduced cash
available for investing, interest income decreased significantly in the fourth
quarter of 2008 to $274,000 (2007  $1,090,000; 2006  $1,507,000).

Fiscal Year

|Financial Data
      for Last Three Fiscal Years         |   |           |  |   |           |   |   |           | 
|-------------------------------------------------------- | - | --------- |  | - | --------- | - | - | --------- | 
|Fiscal year
      ended                                  |   | Dec 31-08 |  |   | Dec 31-07 |   |   | Dec 31-06 | 
|Total revenues (000s)                                   | $ | 0         |  | $ | 0         |   | $ | 0         | 
|Earnings (loss)
      before extraordinary items (000s) | $ | 14,758    |  | $ | (15,012   | ) | $ | 1,403     | 
|Earnings (loss) (000s)                                  | $ | 14,758    |  | $ | (15,012   | ) | $ | 1,403     | 
|Basic and diluted
      earnings (loss) per share        | $ | 0.20      |  | $ | (0.20     | ) | $ | 0.02      | 
|Cash, cash equivalents and investments (000s)           | $ | 93,777    |  | $ | 93,272    |   | $ | 127,110   | 
|Total assets
      (000s)                               | $ | 195,133   |  | $ | 178,025   |   | $ | 195,997   | 
|Total long-term liabilities (000s)                      | $ | 0         |  | $ | 0         |   | $ | 0         | 
|Total
      shareholders equity (000s)                 | $ | 193,538   |  | $ | 176,147   |   | $ | 188,737   | 
|Cash dividends declared per share                        | $ | 0.00      |  | $ | 0.00      |   | $ | 0.00      | 

For the year ended December 30, 2008, the company had net
earnings of $14,758,000 (or $0.20 per share), compared with a net loss of
$15,012,000 (or $0.20 per share) in 2007 and net earnings of $1,403,000 (or
$0.02 per share) in 2006. The largest effect on earnings came from a weakening
of the Canadian dollar from US$0.9913 at December 31, 2007 to US$1.2180 at
December 31, 2008, which led to a foreign exchange gain of $15,879,000 in the
year ended December 31, 2008, compared to a foreign exchange loss of $15,539,000
in the year ended December 31, 2007 and gain of $59,000 in the year ended
December 31, 2006. Due to significant declines in interest rates throughout 2008
and reduced cash available for investing, interest income decreased
significantly in 2008 to $2,050,000 from $5,111,000 in 2007 and $3,995,000 in
2006. There were no severance charges incurred in 2008 or 2006, compared to
$1,257,000 during the year ended December 31, 2007.

Total administration expenses were $3,291,000 in the year ended
December 31, 2008 (2007  $3,498,000; 2006  $2,987,000).

Legal, accounting and regulatory fees decreased to $506,000 in
2008 (2007  $1,007,000; 2006  $729,000). The companys spin-off of Q2 Gold
Resources Inc. during 2007 incurred legal, accounting and regulatory costs of
$321,000. In addition, the companys review and implementation of best practices
for internal control saw higher first-year accounting costs in 2007 than in
2008. Management fees, wages, benefits and stock-based compensation for the year
ended December 31, 2008 totalled $1,873,000 (2007  $1,609,000; 2006 
$1,459,000), reflecting staffing costs that increased by $163,000 and non-cash
stock-based compensation expense that were higher by $103,000 for the year ended
December 31, 2008. Corporate development and shareholder expenses increased by
$26,000 in 2008 compared 2007, partially due to investment banking fees incurred
during the first quarter of 2008 for the Panantza-San Carlos Project marketing
process. Office and related and other costs were relatively unchanged from 2007
to 2008.

For the year ended December 31, 2008, the company recognized a
stock-based compensation charge of $1,576,000 (2007  $1,829,000; 2006 -
$1,193,000), of which $802,000 (2007  $699,000; 2006  $568,000) is included in management fees, wages, benefits &
stock-based compensation and $774,000 (2007  $1,130,000; 2006  $625,000) is
capitalized in mineral properties.

Page 11 of 26

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In November 2007, the companys Ecuador operations experienced
an accidental loss of a construction barge. The carrying value of the barge was
written down as at December 31, 2007 by the amount of the insurance proceeds
receivable of $723,000 (US$709,000). The related shoreline and barge facilities
remain intact. During the first quarter of 2008, the company received full
payment from its insurance company equal to the amount written down. Costs
associated with the reconstruction of the barge will be added to the barges
carrying value after reconstruction is completed.

The company operates within a single operating segment, which
is the exploration and development of copper-gold mineral properties. The
companys mineral property interests are in Ecuador, South America, as set out
in note 4 of the financial statements. With the exception of severance costs of
$1,257,000 in 2007 incurred due to a restructuring of Ecuador operations, the
consolidated statements of loss, comprehensive loss and deficit for the periods
presented reflect the companys Canadian operations only. All other Ecuador
operating expenses are capitalized to mineral properties.

Liquidity, Investing and Capital Resources

Generally, a non-GAAP financial measure is a numerical measure
of a companys performance, financial position or cash and cash equivalents
flows that either excludes or includes amounts that are not normally excluded or
included in the most directly comparable measure calculated and presented in
accordance with GAAP. Working capital calculations or changes are not measures
of financial performance (nor do they have standardized meanings) under either
Canadian or US GAAP. In evaluating these measures, readers should consider that
the methodology applied in calculating such measures may differ among companies
and analysts.

Working capital (defined as current assets minus current
liabilities) as at December 31, 2008 was $93,223,000, compared to $92,193,000 at
December 31, 2007.

The main cash and cash equivalents flows applied to investing
activities during the year ended December 31, 2008 were for investments in
promissory notes of $75,237,000 (2007  $Nil) and mineral property expenditures
mainly associated with development of the Mirador Project of $15,691,000 (2007 
$18,545,000). These uses of cash were offset by a foreign exchange gain in 2008
of $15,879,000 (2007  foreign exchange loss of $15,539,000) and net cash
received from the issuance of shares for exercised stock options of $1,058,000
(2007  $592,000).

At December 31, 2008, the companys cash equivalents are
invested in overnight bank deposits with R1-High investment ratings (DBRS) and
as they mature daily, are easily liquidated. The company has no investments in
asset-backed commercial paper. As at December 31, 2008, the amortized cost of
the companys investments is $75,237,000 (2007  $Nil).

The company has no long-term debt obligations or off-balance
sheet arrangements.

Historically, the companys capital requirements have been met
by equity subscriptions and from the proceeds of sale of certain mineral
property interests. The companys continuing operations as intended are
dependent on managements ability to raise required funding through future
equity issuances, debt financing, asset sales or a combination thereof (refer to
Risks Factors below). While the companys current working capital is considered
sufficient to fund the companys administrative overhead for the next several
years, substantial capital is required to complete the companys Mirador Project
and other Corriente Copper Belt resource developments. Actual funding
requirements may vary from those planned due to a number of factors, including
the progress of exploration and project development activity and foreign
exchange fluctuations.

Outstanding Share Data

The companys authorized capital consists of an unlimited
number of common shares without par value.

Page 12 of 26

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As at March 30, 2009, there were 75,302,393 common shares
issued and outstanding, and options to purchase an aggregate of 3,095,000 common
shares, of which 1,607,820 had vested in accordance with the vesting provisions
discussed below:

Incentive Stock Option Plan

Under the companys Incentive Stock Option Plan (the Plan),
the number of shares that may be reserved for grant under the Plan is a rolling
maximum of 10% of the number of common shares actually outstanding immediately
prior to the grant of any particular option.

The exercise price established for options granted under the
Plan is equal to the closing market price of the companys shares on the Toronto
Stock Exchange on the trading day immediately prior to the grant of the
option.

Options granted generally have expiry dates five years from the
date of grant and the following vesting provisions, which were implemented as of
February 2006:

- Options granted to executive officers, directors and other head office
  personnel vest on the basis of 1/16th of the total each quarter (from grant
  date), with such vesting being accelerated based on a change in control of
  Corriente or the attainment of clearly identified milestones, as determined by
  the companys directors.
- Options granted to Corriente subsidiary personnel vest on a cumulative
  basis of 50% of the total granted after 12 months from the grant date, 75% of
  the total granted after 18 months from the grant date and 100% of the total
  granted after 24 months from grant date, with such vesting being accelerated
  based on a change in control of Corriente, as determined by the companys
  directors.

The following summarizes the stock options granted during the
twelve months ended December 31, 2008:

|Date of grant   | Date of expiry  | Exercise | Recipients                  | Granted
|--------------- | --------------- | -------- | --------------------------- | -------
|                |                 | Price    |                             |        
|January 2, 2008 | January 2, 2013 | $5.41    | Head office employee and    | 320,000
|                |                 |          | executive officers          |        
|June 1, 2008    | June 1, 2013    | $4.60    | Head office employees       | 85,000 
|June 1, 2008    | June 1, 2013    | $4.60    | Subsidiary office employees | 275,000
|                |                 |          | and consultants             |        
|June 1, 2008    | June 1, 2013    | $4.60    | Directors                   | 125,000
|                |                 |          |                             |        
|                |                 |          | Total                       | 805,000

During the year ended December 31, 2008, the expiry terms for
385,000 outstanding options having exercise prices ranging from $2.27 to $4.50
were extended in recognition that these options were the last 3 year-term
options granted prior to the Boards implementation in February 2006 of a 5
year-term with 4 year vesting provisions for all granted options. These expiry
term extensions are subject to TSX and shareholder approval.

The following is a summary of stock option transactions during
the twelve months ended December 31, 2008:

|                             |  | Number of |   |   | Weighted average | 
|---------------------------- |  | --------- | - | - | ---------------- | 
|                             |  | options   |   |   | exercise price   | 
|                             |  |           |   |   |                  | 
|Balance at December 31, 2007 |  | 2,702,500 |   | $ | 4.19             | 
|Granted                      |  | 805,000   |   |   | 4.92             | 
|Exercised                    |  | (375,000  | ) |   | 2.82             | 
|Forfeited                    |  | (222,500  | ) |   | 4.83             | 
|Balance at December 31, 2008 |  | 2,910,000 |   | $ | 4.52             | 

Page 13 of 26

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As at December 31, 2008, 1,559,689 of the companys 2,910,000
outstanding stock options had vested in accordance with the above-referenced
vesting provisions.

Related party transactions

On April 3, 2007, the company announced that its Board of
Directors had approved the spin-off of the companys Caya 36 (Tundayme) and
Piedra Liza gold assets into a new company, Q2 Gold by means of a Plan of
Arrangement (the Arrangement). The Arrangement was approved by shareholders at
the companys May 24, 2007 Annual and Special General Meeting and closed on June
18, 2007. In connection with the Arrangement and to assist Q2 Gold with its
business objectives, Corriente and Q2 Gold entered into a collateralized,
interest-bearing convertible loan agreement dated April 23, 2007, pursuant to
which Corriente agreed to lend Q2 Gold up to $750,000 including accrued
interest, to be advanced in instalments (the Convertible Loan). The
Convertible Loan maximum facility was increased from $750,000 to $1,500,000 and
the maturity date extended to December 31, 2009, by an amendment dated September
25, 2008.

Corriente also provides certain non-technical management
services including, but not limited to, office, general accounting,
administrative and shareholder services, pursuant to a management services
agreement dated September 1, 2007, effective July 1, 2007 (the Agreement). The
Agreement provides for a fee of $10,000 per month for such services, which is
accrued pursuant to the Loan.

Included in management fees and interest income are $120,000
(2007  $60,000) and $61,000 (2007  $25,000), respectively, for the year ended
December 31, 2008 in respect of administrative services and accrued interest on
the Convertible Loan provided by Corriente to Q2 Gold.

As at December 31, 2008, a total of $957,000 was owed by Q2
Gold to the company, consisting of $871,000 of principal and $86,000 of accrued
interest. The Loan principal and unpaid interest are due on the earlier of
December 31, 2009 (previously December 31, 2008) and the first date on which Q2
Gold obtains a prospectus filing receipt with respect to any of its securities
in any province of Canada. At any time prior to maturity, Corriente can require
Q2 Gold to convert, in whole or in part, the principal amount outstanding and
accrued interest of the Loan into Q2 Gold Shares at a conversion price equal to
$0.10 per share. Q2 Gold can repay any portion of the outstanding Loan at any
time prior to maturity or conversion. The company believes the conversion
feature of the Loan is not material, therefore recognition and measurement of
the embedded derivative is not being presented.

The foregoing related party transactions are recorded at the
exchange amount, which is the amount of consideration paid or received as
established and agreed to between the parties. Q2 Gold has common officers and a
common Board of Directors, except that Q2 Gold has one additional independent
director.

The current state of financial markets makes it uncertain that
Q2 Gold will be able to raise the necessary debt or equity capital to repay the
Convertible Loan at maturity. In the event of any default of the repayment of
the Convertible Loan, the Q2 Gold assets which collateralize the Convertible
Loan would become property of the company in accordance with the terms of the
agreement. Management believes that the Q2 Gold assets would have a fair value
greater than or equal to the current carrying value of the Convertible Loan.
Significant changes in the fair value of the underlying Q2 Gold assets could
have an impact on the company up to a maximum of the carrying value of the
Convertible Loan.

Accounting Estimates, Policies and Standards

When a new Canadian accounting standard is released, the Chief
Financial Officer undertakes a review and evaluation to determine if it is
applicable. If there is any uncertainty in its applicability, Corriente solicits
the input of its professional advisors and the Audit Committee. If the new
standard is applicable to Corriente, it is then analyzed and summarized in a
manner that effectively documents and evaluates the impact on Corriente, and to
determine the immediate action, if any, Corriente would need to undertake in
order to comply with the new standard. Quarterly, the documented standards are
reviewed, and updated as required, to ensure that a standard is still
applicable, and that Corriente remains in compliance.

Page 14 of 26

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The preparation of financial statements requires management to
make estimates and assumptions that affect the reported amounts of assets and
liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts
of revenues and expenses during the reporting period. Significant estimates and
assumptions are used in determining possible impairment of mineral property
costs, the fair values of stock options and financial instruments, asset
retirement obligations and future income tax assets. The company evaluates its
estimates on an on-going basis and bases them on various assumptions that are
believed to be reasonable under the circumstances. The companys estimates form
the basis for making judgments about the carrying value for assets and
liabilities that are not readily apparent from other sources. Actual results may
differ from those estimates. Should the company be unable to meet its ongoing
obligations, the realizable value of its assets may decline materially from
current estimates.

The details of the companys significant accounting policies
are presented in note 2 of the companys audited consolidated financial
statements for the year ended December 31, 2008, which can be found on SEDAR.
The following policies are considered by management to be essential to
understanding the processes and reasoning that go into the preparation of the
companys financial statements and the uncertainties that could have a bearing
on its financial results.

Mineral Properties

The company capitalizes all costs related to investments in
mineral property interests on a property-by-property basis. Such costs include
mineral property acquisition costs, exploration and development expenditures.
The company also capitalizes the costs for future income taxes related to
mineral property costs that will not be eligible for deduction against future
taxable income.

The amounts shown for mineral property acquisition costs and
deferred exploration expenditures represent costs incurred to date and do not
necessarily reflect present or future values.

Mineral property expenditures will be amortized over the useful
lives of the properties upon commencement of related commercial production, or
written down to fair value if the properties are abandoned, become impaired or
the claims are allowed to lapse.

The acquisition of title to mineral properties is a complicated
and uncertain process. The company has taken steps, in accordance with industry
standards, to verify mineral properties in which it has an interest. Although
the company has made efforts to ensure that legal title to its properties is
properly recorded in the name of the company, there can be no assurance that
such title will ultimately be secured.

Asset impairment

When events or changes in circumstances indicate that the
carrying amounts of the related assets may not be recoverable, management of the
company reviews and evaluates the carrying value of each asset for impairment.
If the total estimated future cash flows on an undiscounted basis are less than
the carrying amount of the asset, an impairment loss is measured and assets are
written down to fair value which is normally the discounted value of future cash
flows. Where estimates of future net cash flows are not available and where
other conditions suggest impairment, management assesses whether the carrying
value can be recovered by considering alternative methods of determining fair
value. When it is determined that an asset is impaired, the assets carrying
value is written down to its estimated fair value in accordance with the
Canadian Institute of Chartered Accountants (CICA) Handbook Section 3063
Impairment of Long-Lived Assets.

Managements estimates of credit risk, mineral prices, mineral
resources, foreign exchange rates, production levels and operating, capital and
reclamation costs are subject to risks and uncertainties that may affect the
determination of the recoverability of deferred mineral property costs or other
assets, such as the Convertible Loan. Although management has made its best
estimate of these factors, it is possible that material changes could occur that
may adversely affect managements estimate of the net cash flows to be generated
from its assets.

Stock-based Compensation

The company grants stock options to employees, directors and
consultants as an element of compensation. The cost of the service received as
consideration is measured based on an estimate of fair value at the date of the
grant. The grant-date fair value is recognized as compensation expense or
capitalized to mineral properties (for grants to individuals working directly on
mineral projects), over the related service period with a corresponding increase
in options, a separate component of shareholders equity. On exercise of stock
options, the company issues common shares from treasury and the consideration received together with the compensation expense
previously recorded to stock options is credited to share capital. The
grant-date fair value of vested stock options that are forfeited is reclassified
from stock options to contributed surplus. The previously expensed amounts for
stock options that are forfeited that had not vested is recovered through
earnings. The estimated fair value assigned to the stock options that were both
vested and forfeited during the years ended December 31, 2008, 2007 and 2006
were included in management fees, wages, benefits and stock-based compensation
or mineral properties.

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The company uses the Black-Scholes option pricing model to
estimate the fair value of each stock option. The Black-Scholes option pricing
model requires the company to estimate the expected term of the options granted,
the volatility of the companys common shares and an expected dividend yield.
The company estimates the expected term of the options granted by calculating
the average term after considering the companys historical experience involving
stock option exercise; forfeitures and expiries; volatility is estimated with
reference to historical volatility data; and the company does not currently
anticipate paying any cash dividends in the foreseeable future and therefore has
used an expected dividend yield of zero as detailed in note 7 (c) of the
financial statements. The Black-Scholes model also requires the company to input
a risk-free interest rate and the company uses the Bank of Canada marketable
bond rates.

Financial Instruments

Under CICA Section 3855, Financial Instruments - Recognition
and Measurement, all financial instruments are classified into one of the
following five categories: held for trading financial instruments,
held-to-maturity investments, loans and receivables, available-for-sale
financial assets or other financial liabilities. Held for trading financial
instruments are measured at fair value (or marked to market) and all gains and
losses are included in the reported earnings or loss for the period in which
they arise. Available-for-sale financial instruments are measured at fair value
(or marked to market) with revaluation gains and losses excluded from reported
earnings or loss and included in accumulated other comprehensive earnings until
the instruments are derecognized or impaired. Loans and receivables, investments
held-to-maturity and other financial liabilities are measured at amortized cost
using the effective interest method.

The companys financial instruments have been classified as
follows:

|Instrument                                           | Classification             
|---------------------------------------------------- | ---------------------------
|                                                     |                            
|Cash and cash equivalents                            | Held for trading           
|Investments                                          | Held-to-maturity           
|Accounts receivable                                  | Loans and receivables      
|Convertible loan receivable                          | Loans and receivables      
|EIA security deposits                                | Held-to-maturity           
|Accounts payable relating to mineral properties      | Other financial liabilities
|Other accounts payable and accrued
      liabilities | Other financial liabilities

Derivatives embedded in other financial instruments or other
host contracts are treated as separate derivatives when the risks and
characteristics are not closely related to those of the host contracts and the
host contracts are not measured at fair value, with changes in fair value
recognized in earnings or loss for the period. Any derivatives are recorded on
the balance sheet at fair value. Mark-to-market adjustments on these instruments
are included in earnings or loss for the period. The company does not have any
material derivative financial instruments or embedded derivatives at December
31, 2008 or 2007.

Transaction costs incurred to acquire or issue financial
instruments are included in the underlying balance.

Asset retirement obligations

The company accounts for asset retirement obligations (ARO)
by recognizing the fair value of a liability for an ARO in the period in which
it is incurred if a reasonable estimate of fair value can be made. The
associated asset retirement costs are recorded to the capitalized carrying
amount of the related long-lived asset. The company has determined that it has
no material AROs at December 31, 2008 and 2007.

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Income taxes

Income taxes are calculated using the asset and liability
method. Temporary differences arising from the difference between the tax basis
of an asset or liability and its carrying amount on the balance sheet are used
to calculate future income tax liabilities or assets. Future income tax assets
and liabilities are measured using substantively enacted tax rates and laws that
are expected to apply when the temporary differences are expected to reverse.
Assets are recognized only to the extent it is more likely than not that they
will be realized. A valuation allowance is provided against future income tax
assets to the extent it is considered more likely than not that the future
income tax assets will not be realized.

New Accounting Policies

On December 1, 2006, the CICA issued three new accounting
standards that are effective for the companys financial statements for the year
ended December 31, 2008: Handbook Section 1535, Capital Disclosures, Handbook
Section 3862, Financial Instruments  Disclosures, and Handbook Section 3863,
Financial Instruments  Presentation. Section 1535 specifies the disclosure of
(i) an entitys objectives, policies and processes for managing capital; (ii)
quantitative data about what the entity regards as capital; (iii) whether the
entity has complied with any capital requirements; and (iv) if it has not
complied, the consequences of such non-compliance. The new Sections 3862 and
3863 replace Handbook Section 3861, Financial Instruments  Disclosure and
Presentation, revising and enhancing its disclosure requirements, and carrying
forward unchanged its presentation requirements. These new sections place
increased emphasis on disclosures about the nature and extent of risks arising
from financial instruments and how a company manages those risks. Refer to notes
12 and 13 of the consolidated financial statements.

CICA Handbook Section 1400, General Standards of Financial
Statement Presentation, has been amended to include requirements to assess and
disclose an entitys ability to continue as a going concern. The changes are
effective for interim and annual financial statements beginning on or after
January 1, 2008. The standard requires that management make an assessment of a
companys ability to continue as a going concern and to use the going concern
basis in the preparation of the financial statements unless management either
intends to liquidate the company or to cease trading, or has no realistic
alternative but to do so. When management is aware, in making its assessment, of
material uncertainties related to events or conditions that may cast significant
doubt upon a companys ability to continue as a going concern, those
uncertainties should be disclosed. The company has performed such an assessment
and has concluded that it is appropriate to present these consolidated financial
statements using the going concern assumption.

International Financial Reporting Standards (IFRS)

In February 2008, the CICAs Accounting Standards Board
confirmed that IFRS will replace Canadian GAAP in 2011 for profit-oriented
Canadian publicly accountable enterprises. Corriente will be required to report
its results in accordance with IFRS beginning in 2011. The company has developed
a changeover plan to complete the transition to IFRS by January 1, 2011,
including the preparation of required comparative information.

The key elements of Corrientes changeover plan include
determining appropriate changes to accounting policies and required amendments
to financial disclosures, identifying and implementing changes in associated
processes and information systems and complying with internal control
requirements.

The company is currently analyzing accounting policy
alternatives and identifying implementation options for the corresponding
process changes. Corriente will update its IFRS changeover plan to reflect new
and amended accounting standards issued by the International Accounting
Standards Board, as required. As IFRS is expected to change prior to 2011, the
impact of IFRS on the companys Consolidated Financial Statements is not
reasonably determinable at this time.

Disclosure Controls and Procedures

Management is responsible for establishing and maintaining
disclosure controls and procedures and internal control over financial reporting
for the company. Corriente has daily, weekly, monthly and annually-applied
procedures that, when considered in the aggregate and in conjunction with
current internal controls, are designed to ensure that information required to
be disclosed in filings made pursuant to both Canadian Securities Administrators and the SEC are
recorded, processed, summarized and reported in the manner specified by the
relevant securities laws applicable to the company. In addition, Corriente has
created a Corporate Disclosure Committee (the CD Committee), comprised of the
Chief Executive Officer, Senior Vice-President and Chief Financial Officer. The
CD Committee supplements these periodic processes. The Chief Executive Officer
and the Chief Financial Officer have concluded that, as at December 31, 2008,
the companys disclosure control procedures were effective.

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Corriente and its subsidiaries are relatively small in size and
operate in a very integrated management environment. That is, senior management
is in constant contact with many of Corrientes staff, suppliers, regulators and
the like on an ongoing and detailed basis. This allows one or more of senior
management to be in a position where they will be aware of material events or
information. While senior management may not be aware of all things at all
times, it believes that the probability of a material event or material
information being missed or not being disclosed on a timely basis is very
small.

The Chief Executive Officer and the Chief Financial Officer
have evaluated whether there were any material changes to the companys
disclosure controls and procedures during the most recent interim period ended
December 31, 2008 that have materially affected, or are reasonably likely to
materially affect the companys disclosure controls and procedures. No material
changes were identified from their evaluation.

Internal Controls Over Financial Reporting
(ICFR)

Management has designed, established and is maintaining a
system of ICFR to provide reasonable assurance that the financial information
disclosed in this MD&A and the related financial statements was prepared by
the company for external purposes is reliable and has been recorded, processed,
summarized and reported to the companys Board of Directors and Audit Committee
in an accurate and timely manner in accordance with Canadian GAAP and reconciled
to US GAAP on an annual basis. The Board of Directors approves the financial
statements and ensures that management discharges its financial reporting
responsibilities. The Boards review is accomplished principally through the
Audit Committee, which is composed of independent non-executive directors.

The Audit Committee meets periodically with management and the
auditors to review financial reporting and control matters. The Board of
Directors has also appointed a Compensation Committee composed of non-executive
directors, whose recommendations are followed with regard to executive
compensation.

During the year ended December 31, 2007, the company took steps
to: document entity level controls, improve segregation of duties through the
addition of accounting personnel, formalize the authorization process, review
and refine internal control processes, review, document and improve general
controls over information technology and document and enhance controls over
financial statement close processes.

The companys management, including the Chief Executive Officer
and the Chief Financial Officer, is responsible for establishing and maintaining
adequate internal control over financial reporting, and evaluating the
effectiveness of the companys internal control over financial reporting as at
each fiscal period end. Based on its evaluation, management has concluded that
as at December 31, 2008, the companys internal control over financial reporting
was effective and provided reasonable assurance regarding the reliability of
financial reporting and the preparation of its annual filings for external
purposes in accordance with Canadian and US GAAP.

The Chief Executive Officer and the Chief Financial Officer
have evaluated whether there were any material changes to the companys ICFR
during the most recent interim period ended December 31, 2008 that have
materially affected, or are reasonably likely to materially affect the companys
ICFR. No material changes were identified from their evaluation.

Risk Factors

Companies operating in the mining industry face many and varied
kinds of risks. While risk management cannot eliminate the impact of all
potential risks, the company strives to manage such risks to the extent possible
and practical. It should be noted that this list is not exhaustive and that
other risk factors may apply. Few exploration projects successfully achieve
development and production. Due in some cases to factors that cannot be
predicted or foreseen, an investment in the company may not be suitable for all
investors. Following are the risk factors which the companys management
believes are most important in the context of the companys business.

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Foreign Country and Political Risk

The mineral properties on which the company is actively
pursuing its exploration and development activities are all located in Ecuador,
South America. As a result, the company is subject to certain risks, including
currency fluctuations and possible political or economic instability in Ecuador,
which may result in the impairment or loss of mineral concessions or other
mineral rights. In recent history, Ecuador has undergone numerous political
changes at the national executive branch, legislative branch and judicial branch
levels. Also, mineral exploration and mining activities may be affected in
varying degrees by political instability and government regulations related to
the mining industry.

Any changes in regulations or shifts in political attitudes are
beyond the control of the company and may adversely affect its business.
Exploration may be affected in varying degrees by government regulations with
respect to restrictions on future exploitation and production, price controls,
export controls, foreign exchange controls, import duties, royalties, income
taxes, expropriation of property, environmental legislation and mine and/or site
safety.

Despite the April 29, 1996 Agreement between the Government of
Canada and the Government of the Republic of Ecuador for the Promotion and
Reciprocal Protection of Investments, the companys mineral properties could
conceivably be expropriated by the Ecuador Government, which could result in a
significant or total loss for the company without compensation.

In November 2006, Rafael Correa won the Ecuador Presidential
run-off election over Alvaro Noboa and officially took office on January 15,
2007. During the intervening (transition) period, the administration of
President Alfredo Palacio experienced a number of indigenous protests in
southeast Ecuador which eventually resulted in the suspension of the companys
exploration and development activities (see Properties in Advanced
Development - Mirador Project) and a delay in the Mirador Projects
development timeline.

Since President Correas January 15, 2007 inauguration, his
administration has focused primarily on exacting electoral and governmental
reforms. In April 2007, a National Referendum approved the creation of a
Constitutional Assembly to replace Congress. On September 30, 2007,
Constitutional Assembly elections were held in which President Correas Allianza
Pais party had elected 80 of the 130 members of the Constitutional Assembly,
thereby giving the President a clear majority in the Assembly.

On April 18, 2008, the Constitutional Assembly of Ecuador
passed the Mandate into law on April 18, 2008, which established a number of
conditions and restrictions on metallic mining concessions previously issued by
the Government of Ecuador (see Significant Events for the Period Ended
December 31, 2008 and to date). According to the Ministry of Mines and
Petroleum (the MMP), the new Mining Law (note 15) enacted on January 29, 2009
establishes the new legal framework for mining. However, the Regulations
underlying the Mining Law have yet to be developed, creating some uncertainty
regarding the mining industry in Ecuador. To date, the companys discussions
with the MMP and legal counsel have not resulted in a determination of any
material impairment in the carrying value of the companys concessions as a
result of the lack of defined Regulations or clear governmental confirmation
that the Mandate is no longer in effect.

While the new Mining Law is considered to be a significant
milestone for the country, much work remains to be done in developing the
Regulations to the Mining Law and finalizing the terms and conditions that would
foster feasible mining investments in Ecuador.

Management believes that the current political and mining
investment climate in Ecuador will improve and stabilize, but there can be no
certainty that this will be the case in the near future.

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To mitigate such risk, the company funds its Ecuador operations
on an as-needed basis and works closely with federal and territorial governments
and community groups. The company does not presently maintain political risk
insurance for its foreign exploration and development projects.

Economic Instability May Affect the Companys Business

Since the middle of 2008, macroeconomic events, including
global economic uncertainty, reduced confidence in financial markets, bank
failures and credit availability concerns have negatively affected prices for
commodities, including copper. Within this timeframe, the companys market
capitalization has fluctuated significantly. Although circumstances may improve
over the longer term, the impact upon the companys liquidity and its ability to
raise the capital required to execute its business plans going forward may be
negative. As a result, the company will consider its business plans and options
carefully going forward into 2009. The company intends to preserve its cash
balances to the greatest extent possible by curtailing capital and operational
expenditures where possible.

The company has assessed the carrying values of its mineral
properties as a result of the market downturn in copper prices and based on
current and expected metals prices and cost structures, management has
determined that the values of the companys mineral properties have not been
impaired at this time. However, should current market conditions and commodity
prices significantly become worse, recognition of an impairment of mineral
properties may be required.

Exploration and Mining Risks

The business of exploring for minerals and mining involves a
high degree of risk. Due in some cases to factors that cannot be foreseen, only
a small proportion of the properties that are explored are ultimately developed
into producing mines. There is no assurance that the companys mineral
exploration activities will result in any discoveries of new bodies of
commercial ore. At present, only the companys Mirador Project property has
proven or probable reserves while any planned exploration programs for the
companys other properties are exploratory searches for proven or probable
reserves. The mining areas presently being assessed by the company may not
contain economically recoverable volumes of minerals or metals.

The operations of the company may be disrupted by a variety of
risks and hazards which are beyond the control of the company, including labour
disruptions, accidents, the inability to obtain suitable or adequate machinery,
equipment or labour and other risks involved in the conduct of exploration
programs. Once economically recoverable volumes of minerals are found,
substantial expenditures are required to establish reserves through drilling, to
develop metallurgical processes, to develop the mining and processing facilities
and infrastructure at any site chosen for mining. Although substantial benefits
may be derived from the discovery of a major mineralized deposit, no assurance
can be given that minerals will be discovered in sufficient quantities or have
sufficient grade to justify commercial operations or that funds required for
development can be obtained on a timely basis. The economics of developing
copper, gold and other mineral properties is affected by many factors including
the cost of operations, variations of the grade of ore mined, fluctuations in
the price of minerals produced, costs of processing equipment and such other
factors as government regulations, including regulations relating to
environmental protection. In addition, the grade of mineralization ultimately
mined may differ from that indicated by drilling results and such differences
could be material. Depending on the price of copper or other minerals produced,
which have fluctuated widely in the past, the company may determine that it is
impractical to commence or continue commercial production.

An additional project risk related to the companys development
of its Mirador and Panantza-San Carlos Projects includes the cyclical demand for
major components and resources utilized in a mines construction and operation,
including equipment, parts and qualified employees. These same conditions may
also adversely impact the mines ultimate construction schedule if an inordinate
demand on metals causes shortages or cost increases.

Surface Rights and Access

Although the company acquires the rights to some or all of the
minerals in the ground subject to the tenures that it acquires, or has a right
to acquire, in most cases it does not thereby acquire any rights to, or
ownership of, the surface to the areas covered by its mineral tenures. In such
cases, applicable mining laws usually provide for rights of access to the
surface for the purpose of carrying on mining activities, however, the enforcement of such rights can be costly and time
consuming. In areas where there are no existing surface rights holders, this
does not usually cause a problem, as there are no impediments to surface access.
However, in areas where there are local populations or land owners, it is
necessary, as a practical matter, to negotiate surface access. There can be no
guarantee that, despite having the legal right to access the surface and carry
on mining activities, the company will be able to negotiate a satisfactory
agreement with any such existing landowners/occupiers for such access, and
therefore it may be unable to carry out mining activities. In addition, in
circumstances where such access is denied, or no agreement can be reached, the
company may need to rely on the assistance of local officials or the courts in
such jurisdiction.

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Estimates of Mineral Resources and Production Risks

The mineral resource estimates disclosed by the company are
estimates only, and no assurance can be given that any proven or probable
reserves will be discovered or that any particular level of recovery of minerals
will in fact be realized or that an identified reserve or resource will ever
qualify as a commercially mineable (or viable) deposit which can be legally and
economically exploited. In addition, the grade of mineralization which may
ultimately be mined may differ from that indicated by drilling results and such
differences could be material. Production can be affected by such factors as
permitting regulations and requirements, weather, earthquakes, fire,
environmental factors, unforeseen technical difficulties, unusual or unexpected
geological formations and work interruptions. Consequently, the companys
estimated mineral resources should not be interpreted as assurances or evidence
of commercial viability or potential or of the profitability of any future
operations.

Financing Risks

The company has no source of positive operating cash flow and
has no assurance that additional funding that could be needed in addition to its
cash and cash equivalents on hand will be available for further exploration and
project development. Further advanced development of one or more of the
companys properties will be dependent upon the companys ability to obtain
financing through joint venturing, equity or debt financing or other means.
Although the company has been successful in the past in obtaining financing
through the sale of equity securities, there can be no assurance that the
company will be able to obtain adequate financing in the future or that the
terms of such financing will be favourable. Failure to obtain such additional
financing could result in delay or indefinite postponement of further
development of its projects.

Additional funds raised by the company through the issuance of
equity or convertible debt securities will cause the companys current
stockholders to experience dilution. Such securities may grant rights,
preferences or privileges senior to those of the companys common stockholders.

The company does not have any contractual restrictions on its
ability to incur debt and expects to incur significant amounts of indebtedness
to finance development of its Mirador Project through the construction phase.
Any such indebtedness could contain covenants which would restrict the companys
operations.

Limited Experience with Development-Stage Mining Operations

The company has no previous experience in placing mineral
properties into production and its ability to do so will be dependent upon using
the services of appropriately experienced personnel or entering into agreements
with other major resource companies or contractors that can provide such
expertise. There can be no assurance that the company will have available to it
the necessary expertise when and if it places its mineral properties into
production.

Base and Precious Metals Prices

The principal activity of the company is the exploration and
development of copper-gold mineral properties. The mineral exploration and
development industry in general is intensely competitive and there is no
assurance that, even if commercial quantities of proven and probable reserves
are discovered, a profitable market may exist for the sale of the same. Factors
beyond the control of the company may affect the marketability of any substances
discovered. Base and precious metals prices have fluctuated widely, particularly
in recent years. The feasible development of such properties is highly dependent
upon the price of copper and, to a lesser extent, gold. A sustained and
substantial decline in commodity copper prices could result in the write-down,
termination of exploration and development work or loss of its interests in
identified mineral properties.

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Competition

The company competes with many companies that have
substantially greater financial and technical resources for the acquisition of
mineral properties and mining and processing equipment, the securing of
engineering services and the recruitment and retention of qualified employees
and consultants.

Environmental and other Regulatory Requirements

The activities of the company are subject to environmental
regulations promulgated by government agencies from time to time. Environmental
legislation generally provides for restrictions and prohibitions on spills,
releases or emissions of various substances produced in association with certain
mining industry operations, such as seepage from tailings disposal areas, which
would result in environmental pollution. A breach of such legislation may result
in imposition of fines and penalties. In addition, certain types of operations
require the submission and approval of environmental impact assessments.
Environmental legislation is evolving in a manner which means stricter
standards, and enforcement, fines and penalties for non-compliance are more
stringent. Environmental assessments of proposed projects carry a heightened
degree of responsibility for companies and directors, officers and employees.
The cost of compliance with changes in governmental regulations has a potential
to reduce the profitability of operations.

Companies engaged in exploration and development activities
generally experience increased costs and delays as a result of the need to
comply with applicable laws, regulations and permits. There can be no assurance
that all permits which the company may require for exploration and development
of its properties will be obtainable on reasonable terms or on a timely basis,
or that such laws and regulations would not have an adverse effect on any
project that the company may undertake.

The company believes it is in substantial compliance with all
material laws and regulations which currently apply to its activities. However,
there may be unforeseen environmental liabilities resulting from exploration
and/or mining activities and these may be costly to remedy. Failure to comply
with applicable laws, regulations, and permitting requirements may result in
enforcement actions thereunder, including orders issued by regulatory or
judicial authorities causing operations to cease or be curtailed, and may
include corrective measures requiring capital expenditures, installation of
additional equipment, or remedial actions. Parties engaged in exploration
operations may be required to compensate those suffering loss or damage by
reason of the exploration activities and may have civil or criminal fines or
penalties imposed for violations of applicable laws or regulations and, in
particular, environmental laws.

Amendments to current laws, regulations and permits governing
operations and activities of exploration companies, or more stringent
implementation thereof, could have a material adverse impact on the company and
cause increases in expenditures and costs or require abandonment or delays in
developing new mining properties.

Corrientes policy is to abide by the regulations and
requirements of Ecuador and the companys Health, Safety and Environmental
Policies, as well as its approved EIAs.

Infrastructure

Mining, development and exploration activities depend, to one
degree or another, on adequate infrastructure. Reliable roads, bridges, power
sources and water supply are important determinants which affect capital and
operating costs. The lack of availability on acceptable terms or the delay in
the availability of any one or more of these items could prevent or delay
development of the companys projects. If adequate infrastructure is not
available in a timely manner, there can be no assurance that the development of
the companys projects will be commenced or completed on a timely basis, if at
all; the companys operations will achieve anticipated results; or the
construction costs and ongoing operating costs associated with the development
of the companys advanced-stage exploration projects will not be higher than
anticipated. In addition, unusual or infrequent weather phenomena, sabotage, or
community, government or other interference in the maintenance or provision of
such infrastructure could adversely affect the companys operations and
profitability.

Uninsured or Uninsurable Risks

The company may become subject to liability for pollution or
hazards against which it cannot insure or may elect not to insure where premium
costs are disproportionate to the companys perception of the relevant risks. The payment of such insurance premiums and of
such liabilities would reduce the funds available for exploration, development
and production activities.

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Title Matters

Title to and the area of mining concessions may be disputed.
Although the company has taken steps to verify the title to mineral properties
in which it has an interest in accordance with industry standards for the
current stage of exploration of such properties, these procedures do not
guarantee the companys title. Property title may be subject to unregistered
prior agreements or transfers and title may be affected by undetected defects or
the rights of indigenous peoples.

Repatriation of Earnings

Currently there are no restrictions on the repatriation from
Ecuador of earnings to foreign entities. However, despite the existence of a
Canada  Ecuador Tax Treaty there can be no assurance that restrictions on
repatriation of earnings from Ecuador will not be imposed in the future.

Foreign Subsidiaries

The company conducts operations through foreign subsidiaries
and substantially all of its assets are held in such entities. Accordingly, any
limitation on the transfer of cash or other assets between the parent
corporation and such entities, or among such entities, could restrict the
companys ability to fund its operations efficiently. Any such limitations, or
the perception that such limitations may exist now or in the future, could have
an adverse impact on the companys valuation and stock price.

Dependence on Key Personnel

The companys development to date has largely depended on, and
in the future will continue to depend on, the efforts of key management, project
management and operations personnel. Loss of any of these people could have a
material adverse effect on the company and its business. The company has not
obtained and does not intend to obtain key-person insurance in respect of any
officers or other employees.

Share Price Fluctuations

In recent years, the securities markets have experienced a high
level of price and volume volatility, and the market price of securities of many
companies, particularly those considered development-stage companies such as the
company, have experienced wide fluctuations in price which have not necessarily
been related to the underlying asset values or prospects of such companies.
Price fluctuations will continue to occur in the future.

No Dividends

The company has no history of earnings from operations and, due
to the nature of its business, there can be no assurance that the company will
ever be profitable. Investors cannot expect to receive a dividend on their
investment in the company in the foreseeable future, if ever. Investors should
not expect to receive any return on their investment in the companys securities
other than possible capital gains.

Financial Risk

The companys financial instruments are exposed to certain
financial risks, including credit risk, liquidity risk and market risk
(including interest rate, foreign exchange rate and copper price risk).

Credit risk

Credit risk is the risk of an unexpected loss if a customer or
third party to a financial instrument fails to meet its contractual payment
obligations. The companys credit risk is primarily attributable to cash and
cash equivalents and investments.

The companys cash and cash equivalents and investments are
held at a large Canadian financial institution, which has no known liquidity
problems. Any cash maintained in Ecuador is held in a well-established bank. The
companys cash equivalent investments (presented as part of cash and cash
equivalents) are comprised of financial instruments issued by a Canadian
chartered bank, which carry a R1-High (DBRS) investment rating and are easily
liquidated, as they mature daily. The companys largest concentration of
financial assets, investments, are exclusively in instruments of the Province of
Ontario and a Canadian Crown corporation and carry a R1-High (DBRS) investment
rating and are easily liquidated. The company has no investments in asset-backed
commercial paper. The company manages counterparty credit risk by regularly
monitoring counterparty credit ratings.

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The companys accounts receivable consist mainly of GST
receivable due from the Government of Canada. The EIA deposits included in other
assets are held in a major US bank and are comprised of financial instruments
issued by a large US bank.

The convertible loan in the amount of $957,000 is due from Q2
Gold, a related company, and its subsidiaries. Q2 Golds assets are primarily
made up of concessions located in Ecuador which are believed to have gold
resource potential. The convertible loan is collateralized by the assets of Q2
Gold.

Liquidity risk

Liquidity risk is the risk that the company will not be able to
meet its financial obligations as they fall due. The company manages liquidity
risk through the management of its capital structure and financial leverage as
outlined in note 12 to the consolidated financial statements.

Accounts payable relating to mineral properties and other
accounts payable and accrued liabilities are due within the current operating
period. As at December 31, 2008, the company had a total cash, cash equivalents
and investments balance of $93,777,000 to settle current liabilities of
$1,595,000.

Market risk

Market risk is the risk of loss that may arise from changes in
market factors such as foreign exchange, interest rates and commodity prices.

(a) Currency risk

The companys expenditures are predominantly in US dollars and
any future equity raised is expected to be predominantly in Canadian dollars.
The company conducts the majority of its business in Ecuador, which uses the US
dollar as its primary economic currency. Future project development expenditures
are expected to be paid in US dollars. A significant change in the relative
currency exchange rates between the Canadian dollar and the US dollar would have
an effect on the companys balance sheets, statements of earnings (loss) and
cash flows.

As such, the company is subject to risk due to fluctuations in
the exchange rates for the US and Canadian dollar. Beginning in 2007, the
company began maintaining balances in Canadian and US dollars in a proportion
related to the magnitude of future mineral property, plant and equipment, and
administrative expenditures, and the jurisdictions in which they will likely be
made. The company has not hedged its exposure to currency fluctuations.

At December 31, 2008, the company is exposed to currency risk
through the following financial assets and liabilities denominated in US
dollars:

|                                                      |   | in thousands of US dollars |  
|----------------------------------------------------- | - | -------------------------- | -
|                                                      |   | December 31,               |  
|                                                      |   | 2008                       |  
|                                                      |   |                            |  
|Cash and cash equivalents                             | $ | 3,703                      |  
|Investments                                           |   | 61,771                     |  
|Other assets                                          |   | 3,518                      |  
|Accounts payable
      relating to mineral properties |   | (1,151                     | )

Based on the above net exposures as at December 31, 2008, and
assuming that all other variables remain constant, a 10% depreciation or
appreciation of the Canadian dollar against the US dollar would result in an
increase or decrease of approximately $6,800,000 in the companys net earnings.

(b) Interest rate risk

Interest rate risk is the risk that the fair value or future
cash flows of a financial instrument will fluctuate because of changes in market
interest rates.

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The risk that the company will realize a loss as a result of a
decline in the fair value of the investments or EIA deposits included in other
assets is limited because these deposits will be held to maturity, have fixed
interest rates and were issued by Canadian provincial and Crown corporations or
major banks. Changes in interest rates would not have a significant impact on
the companys consolidated statements of earnings (loss).

(c) Commodity price risk

Commodity price risk is defined as the potential adverse impact
on earnings or economic value due to commodity price movements and volatilities.
The company closely monitors commodity prices of copper, individual equity
movements, and the stock market to determine the appropriate course of action to
be taken by the company. Fluctuations in commodity pricing may be significant,
and the associated price risk cannot be estimated at this stage of the companys
development. The company does not have any hedging or other commodity-based
risks respecting its operations.

Cautionary Statement on Forward-Looking
Statements

This MD&A contains forward-looking statements that relate
to future events or Corriente's future performance. All statements other than
statements of historical fact are forward-looking statements. These statements
include, but are not limited to, statements concerning the future financial and
operating performance of Corriente, its subsidiaries and its current and
proposed mineral projects; the future price of copper, gold and other precious
and base metals; the estimation of mineral reserves and resources; the
realization of mineral reserve estimates; the timing and amount of estimated
future production; anticipated costs of production; working capital
requirements; capital and exploration expenditures; costs and timing of mine
development, processing facility construction and the development of new
deposits; costs and timing of future exploration; requirements for additional
capital; government regulation of mining operations; environmental risks;
reclamation expenses; title disputes or claims; limitation of insurance
coverage; and the timing and possible outcome of pending litigation and
regulatory matters.

Often, but not always, forward-looking statements can be
identified by the use of words such as plans, proposes, expects, is
expected, budget, scheduled, estimates, forecasts, intends,
anticipates, or believes or variations (including negative variations) of
such words and phrases, or state that certain actions, events or results may,
could, would, might or will be taken, occur or be achieved.

The forward-looking statements contained herein are based on a
number of assumptions that the company believes are reasonable, but may prove to
be incorrect. These assumptions include, but are not limited to, assumptions
that the current economic uncertainty and financial market volatility will not
prevent the timely realization of the company's development plans; that foreign
exchange rates will remain approximately at current levels; that the supply and
demand for copper will develop as expected; that the company receives regulatory
approvals for its exploration and development projects on a timely basis; that
the company is able to obtain financing for the companys development projects
on reasonable terms; that engineering and construction timetables and capital
costs for the companys development projects are not incorrectly estimated or
affected by unforeseen circumstances; that the companys reserve estimates are
within reasonable bounds of accuracy and that the geological, operational and
price assumptions on which they are based are reasonable; that the company is
able to retain or hire the personnel it needs to carry out its business plan;
and that a feasible mining industry environment is facilitated and fostered by
the Ecuador Government.

However, forward-looking statements involve known and unknown
risks, uncertainties and other factors which may cause the actual results,
performance or achievements of Corriente to be materially different from any
future results, performance or achievements expressed or implied by the
forward-looking statements. Such factors include, but are not limited to, the
current significant general economic uncertainty and financial market
volatility; exploration and mining risks; uncertainties relating to surface
rights; the actual results of current exploration activities; realization of
resource estimates; ability to obtain financing; the outcome of negotiations;
conclusions of economic evaluations and studies; changes in project parameters
and returns as plans continue to be refined; future prices of copper, gold, and
other by-product credit metals; increased competition in the mining industry for
properties, equipment and qualified personnel; risks associated with
environmental compliance and permitting, including those created by changes in
environmental legislation and regulation; the risk of arbitrary changes in law;
title risks; risks relating to repatriation of earnings; social and political
risks associated with operations in foreign countries; the risk of loss of key personnel;
significant fluctuations in the exchange rates for United States and Canadian
currency; and delays in the completion of development and construction
activities , as well as those factors discussed under the heading Risk Factors
elsewhere in this MD&A.

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Although the company has attempted to identify important
factors that could cause actual actions, events or results to differ materially
from those described in forward-looking information, there may be other factors
that cause actions, events or results not to be as anticipated, estimated or
intended. There can be no assurance that forward-looking information will prove
to be accurate, as actual results and future events could differ materially from
those anticipated in such statements.

Forward-looking statements contained herein are made as of the
date hereof. The company undertakes no obligation to update publicly or
otherwise revise any forward-looking statements or the foregoing lists of
factors and assumptions, whether as a result of new information, future events
or results or otherwise, except as required by law. Because forward-looking
statements are inherently uncertain, readers should not place undue reliance on
them. The forward-looking statements contained herein are expressly qualified in
their entirety by this cautionary statement.

Cautionary Note to US Investors

All references to mineral reserves and mineral resources
contained in this [MD&A] [annual information form] are determined in
accordance with National Instrument 43-101 -- Standards of Disclosure for
Mineral Projects (NI 43-101), as required by Canadian securities regulations.
While the terms mineral resource, measured mineral resource, indicated
mineral resource and inferred mineral resource are recognized and required by
NI 43-101, they are not defined or recognized by the U.S. Securities and
Exchange Commission (the "SEC). As such, information contained in this MD&A
concerning descriptions of mineralization and resources, as determined in
accordance with NI 43-101, may not be comparable to similar information made
public in accordance with the requirements of the SEC. Indicated mineral
resources and inferred mineral resources have a great amount of uncertainty
as to their existence, and great uncertainty as to their economic and legal
feasibility. It cannot be assumed that all or any part of mineral resources
constitutes or will ever be converted into reserves.

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