---

Exhibit 1.3



Corriente Resources Inc.(A Development Stage Enterprise)

Consolidated Financial StatementsAs at December 31, 2009 and 2008 and for the
 years ended December 31, 2009 and 2008(expressed in Canadian dollars)



---

Managements Responsibility for Financial Reporting

The accompanying consolidated financial statements of Corriente Resources Inc. (the company) have been prepared by management in accordance with accounting principles generally accepted in Canada, and within the framework of the summary
of significant accounting policies in these consolidated financial statements.

A system of internal accounting control is maintained by management in order to provide reasonable assurance that assets are safeguarded and that transactions are properly recorded and executed in accordance with managements authorization.
This system includes established policies and procedures, the selection and training of qualified personnel and an organization providing for appropriate delegation of authority and segregation of responsibilities.

The Audit Committee of the Board of Directors meets periodically with management and the companys independent auditors to review the scope and results of their annual audit and to review the consolidated financial statements and related
financial reporting and control matters prior to submitting the consolidated financial statements to the Board of Directors for approval.

The consolidated financial statements have been audited by PricewaterhouseCoopers LLP on behalf of the shareholders and their report follows.

Kenneth R. Shannon
President & Chief Executive Officer

Darryl F. Jones
Chief Financial Officer

Vancouver, British Columbia
March 23, 2010

---

Managements Report on Internal Control over Financial Reporting

The management of Corriente Resources Inc. is responsible for establishing and maintaining adequate internal control over financial reporting. The United States Securities and Exchange Act of 1934 in Rule 13a-15(f ) and 15d-15(f ) defines this as a
process designed by, or under the supervision of, the companys principal executive and principal financial officers and effected by the companys board of directors, management and other personnel, to provide reasonable assurance
regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles and includes those policies and procedures that:

- Pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of the assets of the company;
- Provide reasonable assurance that transactions are recorded as necessary to
permit preparation of financial statements in accordance with generally accepted accounting principles, and that receipts and expenditures of the company are being made only in accordance with authorizations of management and directors of the
company; and
- Provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use or disposition of the companys assets that may have a material effect on the financial statements.

Because of its inherent limitations, internal control over financial reporting may not prevent or detect misstatements on a timely basis. Also, projections of any evaluation of effectiveness of internal control over financial reporting to future
periods are subject to risk that controls may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate.

Management assessed the effectiveness of the companys internal control over financial reporting as at December 31, 2009. In making this assessment, the companys management used the criteria, established in Internal Control-Integrated
Framework issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO).

Based upon this assessment, management concluded that the companys internal control over financial reporting was effective as at December 31, 2009.

The effectiveness of the companys internal control over financial reporting as at December 31, 2009 has been audited by PricewaterhouseCoopers LLP, our independent auditors, as stated in their report which follows.

Kenneth R. Shannon
President & Chief Executive Officer

Darryl F. Jones
Chief Financial Officer

Vancouver, British Columbia
March 23, 2010

---

| |  |                                                                                                                                                                                                                                    
| |  | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  | PricewaterhouseCoopers LLP
    Chartered Accountants
    PricewaterhouseCoopers Place
    250 How Street, Suite 700
    Vancouver, British Colombia
    Canada V6C 3S7
    Telephone +1 604 806 7000
    Facsimile + 1 604 806 7806

March 23, 2010

Independent Auditors Report

To the Shareholders of Corriente Resources Inc.

We have completed integrated audits of Corriente Resources Inc.s 2009 and 2008 consolidated financial statements and of its internal control over financial reporting as at December 31, 2009. Our opinions, based on our audits, are presented
below.

Consolidated Financial statements

We have audited the accompanying consolidated balance sheets of Corriente Resources Inc. as at December 31, 2009 and December 31, 2008, and the related consolidated statements of changes in shareholders equity, consolidated statements of
earnings (loss) and comprehensive income (loss), and consolidated statements of cash flows for each of the years then ended. These financial statements are the responsibility of the companys management. Our responsibility is to express an
opinion on these financial statements based on our audits.

We conducted our audits of the companys financial statements in accordance with Canadian generally accepted auditing standards and the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we
plan and perform an audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit of financial statements includes examining, on a test basis, evidence supporting the amounts and disclosures
in the financial statements. A financial statement audit also includes assessing the accounting principles used and significant estimates made by management, and evaluating the overall financial statement presentation. We believe that our audits
provide a reasonable basis for our opinion.

In our opinion, the consolidated financial statements referred to above present fairly, in all material respects, the financial position of the company as at December 31, 2009 and December 31, 2008 and the results of its operations and its cash
flows for each of the years then ended in accordance with Canadian generally accepted accounting principles.

Internal control over financial reporting

We have also audited Corriente Resources Incs internal control over financial reporting as at December 31, 2009, based on criteria established in Internal Control - Integrated Framework issued by the Committee of Sponsoring
Organizations of the Treadway Commission (COSO). The companys management is responsible for maintaining effective internal control over financial reporting and for its assessment of the effectiveness of internal control over financial
reporting, included in the accompanying Managements Report on Internal Control Over Financial Reporting. Our responsibility is to express an opinion on the companys internal control over financial reporting based on our audit.

---

We conducted our audit of internal control over financial reporting in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audit to obtain reasonable
assurance about whether effective internal control over financial reporting was maintained in all material respects. An audit of internal control over financial reporting includes obtaining an understanding of internal control over financial
reporting, assessing the risk that a material weakness exists, testing and evaluating the design and operating effectiveness of internal control based on the assessed risk, and performing such other procedures as we consider necessary in the
circumstances. We believe that our audit provides a reasonable basis for our opinion.

A companys internal control over financial reporting is a process designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with
generally accepted accounting principles. A companys internal control over financial reporting includes those policies and procedures that (i) pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the
transactions and dispositions of the assets of the company; (ii) provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with generally accepted accounting principles, and
that receipts and expenditures of the company are being made only in accordance with authorizations of management and directors of the company; and (iii) provide reasonable assurance regarding prevention or timely detection of unauthorized
acquisition, use, or disposition of the companys assets that could have a material effect on the financial statements.

Because of its inherent limitations, internal control over financial reporting may not prevent or detect misstatements. Also, projections of any evaluation of effectiveness to future periods are subject to the risk that controls may become
inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate.

In our opinion, the company maintained, in all material respects, effective internal control over financial reporting as at December 31, 2009based on criteria established in Internal Control  Integrated Framework issued by the COSO.

PricewaterhouseCoopers LLP

Chartered Accountants 
Vancouver, British Columbia

---

|Corriente Resources Inc.                              |   |         |   |   |         |  
|----------------------------------------------------- | - | ------- | - | - | ------- | -
|(a development stage enterprise)                      |   |         |   |   |         |  
|Consolidated Balance Sheets                           |   |         |   |   |         |  
|As at December 31, 2009 and 2008                      |   |         |   |   |         |  
|(expressed in thousands of Canadian dollars)          |   |         |   |   |         |  
|                                                      |   |         |   |   |         |  
|                                                      |   | 2009    |   |   | 2008    |  
|Assets                                                |   |         |   |   |         |  
|Current assets                                        |   |         |   |   |         |  
|Cash and cash equivalents                             | $ | 69,420  |   | $ | 18,540  |  
|Investments                                           |   |        |   |   | 75,237  |  
|Accounts receivable and prepayments                   |   | 72      |   |   | 84      |  
|Convertible loan (note 7)                             |   | 1,292   |   |   | 957     |  
|                                                      |   | 70,784  |   |   | 94,818  |  
|Non-current assets                                    |   |         |   |   |         |  
|Mineral properties (note 3)                           |   | 109,038 |   |   | 94,489  |  
|Equipment (note 4)                                    |   | 1,198   |   |   | 1,541   |  
|Other assets (note 5)                                 |   | 2,347   |   |   | 4,285   |  
|                                                      |   | 112,583 |   |   | 100,315 |  
|TOTAL ASSETS                                          | $ | 183,367 |   | $ | 195,133 |  
|                                                      |   |         |   |   |         |  
|Liabilities                                           |   |         |   |   |         |  
|Current liabilities                                   |   |         |   |   |         |  
|Accounts payable relating to mineral
      properties | $ | 802     |   | $ | 1,402   |  
|Other accounts payable and accrued liabilities        |   | 690     |   |   | 193     |  
|                                                      |   | 1,492   |   |   | 1,595   |  
|Shareholders Equity                                  |   |         |   |   |         |  
|Share capital                                         |   | 236,391 |   |   | 235,996 |  
|Options (note 6 (c))                                  |   | 8,380   |   |   | 4,718   |  
|Contributed surplus                                   |   | 1,718   |   |   | 1,472   |  
|Deficit                                               |   | (64,614 | ) |   | (48,648 | )
|                                                      |   | 181,875 |   |   | 193,538 |  
|TOTAL LIABILITIES AND SHAREHOLDERS EQUITY            | $ | 183,367 |   | $ | 195,133 |  

Nature of operations and offer to purchase the company 
note 1 
Commitments  note 3 
Measurement uncertainty  note 3 and 7

Approved by the Board of Directors

Kenneth ShannonDirector

 Anthony HollerDirector

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

---

|Corriente Resources Inc.                                                         |  |               |  |   |         |  |   |         |   |   |             |  |   |         |   |  
|-------------------------------------------------------------------------------- |  | ------------- |  | - | ------- |  | - | ------- | - | - | ----------- |  | - | ------- | - | -
|(a development stage enterprise)                                                 |  |               |  |   |         |  |   |         |   |   |             |  |   |         |   |  
|Consolidated Statements of Changes in
      Shareholders Equity                 |  |               |  |   |         |  |   |         |   |  
|For the years ended December 31, 2009 and
      2008                             |  |               |  |   |         |  |   |         |   |   |             |  |  
|(expressed in thousands of Canadian dollars,
      except for number of shares)  |  |               |  |   |         |  |   |         |   |  
|                                                                                 |  |               |  |   |         |  |   |         |   |   |             |  |   |         |   |  
|                                                                                 |  | Common Shares |  |   |         |  |   |         |   |   |             |  |   |         |  
|                                                                                 |  |               |  |   |         |  |   |         |   |   |             |  |   |         |   |  
|                                                                                 |  |               |  |   | Share   |  |   |         |   |   | Contributed |  |   |         |   |  
|                                                                                 |  | Number        |  |   | Capital |  |   | Options |   |   | Surplus     |  |   | Deficit |   |  
|Balance at December 31, 2007                                                     |  | 74,927,393    |  | $ | 234,438 |  | $ | 3,736   |   | $ | 1,378       |  | $ | (63,406 | ) | $
|Common shares issued for cash pursuant to exercise of
      options (note 6 (c)) |  | 375,000       |  |   | 1,058   |  |   |        |   |   |            |  |   |        |   |  
|Grant-date fair value of options exercised
      (note 6 (c))                    |  |              |  |   | 500     |  |   | (500    | ) |   |            |  |   |        |   |  
|Grant-date fair value of vested options forfeited (note 6
      (c))             |  |              |  |   |        |  |   | (94     | ) |   | 94          |  |   |        |   |  
|Stock based compensation on unexercised
      options (note 6 (c))               |  |              |  |   |        |  |   | 1,576   |   |   |            |  |   |        |   |  
|Earnings for the year ended December 31, 2008                                    |  |              |  |   |        |  |   |        |   |   |            |  |   | 14,758  |   |  
|Balance at December 31, 2008                                                     |  | 75,302,393    |  |   | 235,996 |  |   | 4,718   |   |   | 1,472       |  |   | (48,648 | ) |  
|Common shares issued for cash pursuant to exercise of
      options (note 6 (c)) |  | 47,500        |  |   | 141     |  |   |        |   |   |            |  |   |        |   |  
|Grant-date fair value of options exercised
      (note 6 (c))                    |  |              |  |   | 254     |  |   | (254    | ) |   |            |  |   |        |   |  
|Grant-date fair value of vested options forfeited (note 6
      (c))             |  |              |  |   |        |  |   | (246    | ) |   | 246         |  |   |        |   |  
|Stock based compensation on unexercised
      options (note 6 (c))               |  |              |  |   |        |  |   | 4,162   |   |   |            |  |   |        |   |  
|Loss for the year ended December 31, 2009                                        |  |              |  |   |        |  |   |        |   |   |            |  |   | (15,966 | ) |  
|Balance at December 31, 2009                                                     |  | 75,349,893    |  | $ | 236,391 |  | $ | 8,380   |   | $ | 1,718       |  | $ | (64,614 | ) | $



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

---

Corriente Resources Inc.(a development stage
enterprise) 
Consolidated Statements of Earnings (Loss) and Comprehensive
Income (Loss)For the years ended December 31, 2009 and 2008


(expressed in thousands of Canadian
dollars, except for per share amounts and number of shares)

|                                                                   |   | 2009       |   |   | 2008       |  
|------------------------------------------------------------------ | - | ---------- | - | - | ---------- | -
|Administration expenses                                            |   |            |   |   |            |  
|Salaries, benefits and stock-based compensation                    | $ | 3,379      |   | $ | 1,873      |  
|Corporate development and shareholder
      expenses               |   | 1,898      |   |   | 544        |  
|Legal, accounting and regulatory                                   |   | 586        |   |   | 506        |  
|Office and related                                                 |   | 331        |   |   | 368        |  
|                                                                   |   | 6,194      |   |   | 3,291      |  
|Other loss (income)                                                |   |            |   |   |            |  
|Foreign exchange loss (gain)                                       |   | 10,378     |   |   | (15,879    | )
|Interest income (note 7)                                           |   | (486       | ) |   | (2,050     | )
|Management fees (note 7)                                           |   | (120       | ) |   | (120       | )
|                                                                   |   | 9,772      |   |   | (18,049    | )
|Loss (earnings) and comprehensive loss (income) for the
      year | $ | 15,966     |   | $ | (14,758    | )
|                                                                   |   |            |   |   |            |  
|                                                                   |   |            |   |   |            |  
|Loss (earnings) per share                                          |   |            |   |   |            |  
|Basic and diluted                                                  | $ | 0.21       |   | $ | (0.20      | )
|Weighted average number of shares
      outstanding                |   |            |   |   |            |  
|Basic                                                              |   | 75,330,146 |   |   | 75,088,978 |  
|Diluted                                                            |   | 75,330,146 |   |   | 75,321,884 |  



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

---

|Corriente Resources Inc.                                       |   |         |   |   |         |  
|-------------------------------------------------------------- | - | ------- | - | - | ------- | -
|(a development stage enterprise)                               |   |         |   |   |         |  
|Consolidated Statements of Cash Flows                          |   |         |   |   |         |  
|For the years ended December 31, 2009 and 2008                 |   |         |   |   |         |  
|(expressed in thousands of Canadian dollars)                   |   |         |   |   |         |  
|                                                               |   |         |   |   |         |  
|                                                               |   | 2009    |   |   | 2008    |  
|Cash flows from (applied to) operating
      activities        |   |         |   |   |         |  
|Earnings (loss) for the year                                   | $ | (15,966 | ) | $ | 14,758  |  
|Items not affecting cash                                       |   |         |   |   |         |  
|Stock-based
      compensation (note 6 (c))                    |   | 2,342   |   |   | 802     |  
|Accrued management fees (note 7)                               |   | (120    | ) |   | (120    | )
|Accrued interest
      receivable on convertible loan (note 7) |   | (64     | ) |   | (61     | )
|Depreciation                                                   |   | 31      |   |   | 32      |  
|Changes in non-cash working capital                            |   |         |   |   |         |  
|Accounts receivable and prepayments                            |   | 12      |   |   | 255     |  
|Accounts payable
      and accrued liabilities                 |   | 497     |   |   | (30     | )
|                                                               |   | (13,268 | ) |   | 15,636  |  
|Cash flows from (applied to) investing activities              |   |         |   |   |         |  
|Investments                                                    |   | 75,237  |   |   | (75,237 | )
|Mineral property costs                                         |   | (13,017 | ) |   | (15,691 | )
|Convertible loan                                               |   | (145    | ) |   | (315    | )
|Payments to acquire equipment                                  |   | (121    | ) |   | (128    | )
|Other assets (note 5)                                          |   | 2,053   |   |   | (55     | )
|                                                               |   | 64,007  |   |   | (91,426 | )
|Cash flows from financing activities                           |   |         |   |   |         |  
|Proceeds from issuance of common shares                        |   | 141     |   |   | 1,058   |  
|                                                               |   | 141     |   |   | 1,058   |  
|Increase (decrease) in cash and cash equivalents               |   | 50,880  |   |   | (74,732 | )
|Cash and cash equivalents  beginning of
      year            |   | 18,540  |   |   | 93,272  |  
|Cash and cash equivalents  end of year                        | $ | 69,420  |   | $ | 18,540  |  
|                                                               |   |         |   |   |         |  
|Supplemental cash flow information (note
      10)             |   |         |   |   |         |  



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

---

Corriente Resources Inc.
(a development stage enterprise) 
Notes to Consolidated Financial StatementsDecember 31, 2009 and 2008


(expressed in Canadian dollars unless otherwise noted)

|1 | Nature of operations and offer to purchase the company                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       
|- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|  |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              
|  | Corriente Resources Inc. and its subsidiaries (collectively, Corriente or the company) are engaged in the exploration and development of mineral properties primarily in Ecuador, South America. The company
considers itself to be a development stage enterprise.                                                                                                                                                                                                                                                                                                                                                                                      
|  |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              
|  | The business of mining and exploring for minerals involves a high degree of risk and there can be no assurance that current exploration and development programs will result in profitable mining operations. The recoverability of
amounts shown for mineral properties is dependent upon the discovery of economically recoverable reserves, receipt of necessary permits and regulatory approvals, the ability of the company to obtain financing to complete its development and future
profitable operations or sale of the properties. The investment in and expenditures on mineral properties comprise a significant portion of the companys assets.
|  |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              
|  | On December 28, 2009, the company announced that it had signed a definitive agreement (the Support Agreement) with CRCC-Tongguan Investment Co., Ltd. (the Offeror), Tongling Nonferrous Metals Group Holdings
Co., Ltd. ("Tongling") and China Railway Construction Corporation Limited ("CRCC"), under which the Offeror has agreed to make an offer to acquire all of the companys outstanding shares (the Offer) for $8.60 per share in cash,
equivalent to approximately $679 million on a fully-diluted basis.                                                                                                                                  
|  |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              
|  | On February 1, 2010, the Offerors formal offer and take-over bid circular was mailed to shareholders, together with the companys directors circular (the Offer Circulars), which included the unanimous
recommendation of Corrientes Board of Directors that shareholders accept the Offer. The Offer is subject to a number of conditions which are set out in the Offer Circulars, and is scheduled to expire at 5:00 pm (Pacific Time) on March 25,
2010.                                                                                                                                                                                           
|  |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              
|2 | Significant accounting policies                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              
|  |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              
|  | Basis of presentation                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        
|  |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              
|  | These consolidated financial statements have been prepared in accordance with generally accepted accounting principles (GAAP) in Canada, which as described in note 13, differ in certain respects from GAAP in the United
States of America.                                                                                                                                                                                                                                                                                                                                                                                                              
|  |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              
|  | Basis of consolidation                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       
|  |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              
|  | The consolidated financial statements include the accounts of the company, its subsidiaries, all of which are wholly-owned, and any variable interest entities (VIEs) where the company is the primary beneficiary. The
company has determined that it does not have any material VIEs as at December 31, 2009 and 2008. All significant inter-company transactions and balances have been eliminated.                                                                                                                                                                                                                                                     
|  |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              
|  | 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 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.                                                                                                                                                                                                                                                                                                                                                                                                                                                                     

1

---

Corriente Resources Inc.
(a development stage enterprise) 
Notes to Consolidated Financial StatementsDecember 31, 2009 and 2008


(expressed in Canadian dollars unless otherwise noted)



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

Equipment

Equipment is stated at cost. Depreciation of equipment is provided on a declining-balance basis over the estimated useful life at annual rates of between 5% and 100% commencing when the related asset is available for use.

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. 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.
If the total estimated future cash flows from the asset 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 from the asset 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.

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 receivable from Q2 Gold Resources Inc. (note 7). 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.

Cash and cash equivalents

Cash and cash equivalents comprise cash on deposit with banks and highly liquid short-term interest bearing investments with a term to maturity at the date of purchase of 90 days or less from the date of acquisition.

Investments

Investments comprise short-term interest bearing promissory notes with a term to maturity at the date of purchase of greater than 90 days but less than 1 year from the date of acquisition. The company has the intent and ability to hold these notes
until maturity and therefore has classified them as held-to-maturity. These investments are initially recorded at fair value and subsequently measured at amortized cost using the effective interest rate method.

2

---

Corriente Resources Inc.
(a development stage enterprise) 
Notes to Consolidated Financial StatementsDecember 31, 2009 and 2008


(expressed in Canadian dollars unless otherwise noted)



Marketable securities are recorded at their fair value on the
date of acquisition and are classified as available-for-sale or held for
trading. The fair value of the securities is adjusted at each subsequent balance
sheet date and the resulting unrealized gains or losses are included in other
comprehensive income (loss) or net earnings (loss) for the period, as
appropriate. The company held no marketable securities at December 31, 2009 and
2008.

Foreign currency translation

As at December 31, 2009 and 2008, the Canadian dollar is the
functional currency of the company.

The companys subsidiaries are considered integrated foreign
operations and their financial statements are translated into Canadian currency,
the parent companys functional currency, using the temporal method. Monetary
assets and liabilities are translated at the exchange rate in effect at the
balance sheet date; non-monetary items are translated at historical exchange
rates; revenue and expense items are translated at the average rate of exchange
for the period, except for depreciation, which is translated at the same rate as
the assets to which they relate. Translation gains and losses are reflected in
the companys reported earnings or loss for the period.

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 income until
the instruments are derecognized or impaired. Loans and receivables, investments
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
    ClassificationCash and cash equivalents
    Held for tradingInvestments
    Held-to-maturityAccounts receivable
    Loans and receivablesConvertible loan receivable
    Loans and receivablesEIA security deposits
    Held-to-maturityAccounts payable relating to mineral properties
    Other financial liabilitiesOther 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, 2009 or 2008.

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

3

---

Corriente Resources Inc.
(a development stage enterprise) 
Notes to Consolidated Financial StatementsDecember 31, 2009 and 2008


(expressed in Canadian dollars unless otherwise noted)



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.

Earnings (loss) per share

Basic earnings (loss) per share is calculated on the earnings (loss) available to common shareholders using the weighted average number of common shares outstanding during the period. The company follows the treasury stock method for the calculation
of diluted earnings per share. Under the treasury stock method, the weighted average number of common shares outstanding for the calculation of diluted earnings per share assumes that the proceeds to be received on the exercise of dilutive stock
options and the unrecognized portion of the fair value of stock options are applied to repurchase common shares at the average market price for the period. Stock options are dilutive when the average market price of the common shares during the
period exceeds the exercise price of the options. In years of loss, basic and diluted loss per share are the same because the effect of potential issuances of shares under options would be anti-dilutive.

Use of estimates

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-based compensation and financial
instruments, asset retirement obligations and future income taxes. 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.

Stock-based compensation

The company has a stock option plan as described in note 6 (c).

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 are recovered through earnings. The
estimated
fair value assigned to the stock options that were both vested and forfeited during the years ended December 31, 2009 and 2008 were included in salaries, benefits and stock-based compensation or mineral properties.

4

---

Corriente Resources Inc.
(a development stage enterprise) 
Notes to Consolidated Financial StatementsDecember 31, 2009 and 2008


(expressed in Canadian dollars unless otherwise noted)



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 6 (c). 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.

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, 2009 and 2008.

Comprehensive income

Other comprehensive income is the change in the companys net assets that results from transactions, events and circumstances from sources other than the companys shareholders and includes items that would not normally be included in the
determination of earnings or loss for the period, such as unrealized gains or losses on available-for-sale investments.

Investments classified as available-for-sale are reported at fair market value (or marked to market) based on quoted market prices with unrealized gains or losses excluded from earnings or loss and reported as other comprehensive income or loss. At
December 31, 2009 and 2008, the company had no investments designated as available-for-sale.

Comparative figures

Certain comparative figures have been reclassified to conform to the presentation adopted in the current period.

Capital disclosures

CICA Handbook 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. Refer to note 11.

Financial instruments  disclosures and presentation

CICA Handbook Sections 3862 and 3863 replaced 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 qualitative and quantitative disclosures about the nature and extent of risks arising from financial instruments, including specified
minimum disclosures of credit risk, liquidity risk and market risk (including interest rate, foreign exchange rate and price risk). The quantitative disclosures must provide information on the extent to which the entity is exposed to risk, based on
information provided internally to the entitys key management personnel. Refer to note 12.

5

---

Corriente Resources Inc.
(a development stage enterprise) 
Notes to Consolidated Financial StatementsDecember 31, 2009 and 2008


(expressed in Canadian dollars unless otherwise noted)



General standards of financial statement presentation

CICA Handbook Section 1400, General Standards of Financial Statement Presentation, 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.

New accounting pronouncements

The CICA issued the new Handbook Section 3064, Goodwill and Intangible Assets, which replaces Section 3062, Goodwill and Intangible Assets. The new standard establishes revised standards for the recognition, measurement,
presentation and disclosure of goodwill and intangible assets. The new standard also provides guidance for the treatment of pre-production and start-up costs and requires that these costs be expensed as incurred if the costs do not meet the
definition of property, plant and equipment. On January 1, 2009, the company adopted these changes, with no impact on its consolidated financial statements.

During 2009, CICA Handbook Section 3862, Financial Instruments  Disclosures (Section 3862), was amended to require disclosures about the inputs to fair value measurements, including their classification within a hierarchy that
prioritizes the inputs to fair value measurement. The three levels of the fair value hierarchy are:

- Level 1  Unadjusted quoted prices in active markets for identical assets or liabilities;
- Level 2  Inputs other than quoted prices that are observable for the asset or liability either directly or indirectly; and
- Level 3  Inputs that are not based on observable market data.

Effective January 1, 2009, the company adopted the new recommendations, but does not have any financial instruments that are carried at fair value subsequent to initial recognition that require a valuation technique. Therefore, this amended standard
has had no impact on the companys financial statements.

Recent Accounting Pronouncements Issued But Not Implemented

In January 2009, Sections 1582, 1601 and 1602 were added to the CICA Handbook and are harmonized with International Financial Reporting Standards. Section 1582 specifies a number of changes, including: an expanded definition of a business
combination, a requirement to measure all business acquisitions at fair value, a requirement to measure non-controlling interests at fair value, and a requirement to recognize acquisition-related costs as expenses. Section 1601 establishes the
standards for preparing consolidated financial statements. Section 1602 specifies that non-controlling interests be treated as a separate component of equity, not as a liability or other item outside of equity. These new standards are effective for
2011. Early adoption is permitted.

6

---

Corriente Resources Inc.
(a development stage enterprise) 
Notes to Consolidated Financial StatementsDecember 31, 2009 and 2008


(expressed in Canadian dollars unless otherwise noted)



3

Mineral properties

Corriente
Copper Belt, Ecuador

Under various agreements signed and completed with certain
Ecuadorian subsidiaries of BHP Billiton Plc ("BHP Billiton"), the company has
earned a 100% interest in BHP Billitons mineral properties located in the Rio
Zamora copper porphyry district (the Corriente Copper Belt) in southeast
Ecuador. This required the issue of shares to BHP Billiton and the expenditure
of exploration funds under the terms of these agreements. Additionally, these
mineral properties are subject to a 2% Net Smelter Royalty (NSR) payable to
BHP Billiton, though the company has options to reduce the NSR to 1% for the
Mirador/Mirador Norte, Panantza and San Carlos mineral properties upon the
payment of US$2 million to BHP Billiton for each such option exercised.

Following is a summary of the companys deferred mineral
property expenditures for its mineral properties located in the Corriente Copper
Belt in southeast Ecuador:

in thousands of Canadian dollarsMirador/Mirador
    
    
    Panantza/Norte
    
    
    San Carlos
    
    
    Other
    
    
    TotalBalance December 31, 2007
    $
    66,428
    
    $
    7,449
    
    $
    3,902
    
    $
    77,779Property concession fees
    
    40
    
    
    47
    
    
    16
    
    
    103Deferred exploration anddevelopment costs
    
    15,007
    
    
    1,365
    
    
    235
    
    
    16,607Balance December 31, 2008
    
    81,475
    
    
    8,861
    
    
    4,153
    
    
    94,489Property acquisition costs andconcession fees
    
    341
    
    
    172
    
    
    68
    
    
    581Deferred exploration anddevelopment costs
    
    12,166
    
    
    1,522
    
    
    280
    
    
    13,968Balance December 31, 2009
    $
    93,982
    
    $
    10,555
    
    $
    4,501
    
    $
    109,038


Other

The balance comprises the expenditures incurred to December 31,
2009 to develop the La Florida, San Luis, San Marcos, San Miguel and Sutzu
copper exploration targets in the Corriente Copper Belt, and the companys
proposed concentrate shipping port facility in Machala, Ecuador.

Measurement uncertainty

On January 29, 2009, a new Mining Law was enacted which,
together with the Regulations to the Mining Law signed by the President of
Ecuador on November 4, 2009, establishes the new legal framework for mining in
Ecuador. However, the terms and conditions of the Exploitation Agreements which
will cover the final development and production phases of a mining project have yet
to be developed, creating some uncertainty regarding the future of the mining
industry in Ecuador.

7

---

Corriente Resources Inc.
(a development stage enterprise) 
Notes to Consolidated Financial StatementsDecember 31, 2009 and 2008


(expressed in Canadian dollars unless otherwise noted)



To date, the companys discussions with the Ministry of
Non-Renewable Natural Resources (MNNR, formerly the Ministry of Mining and
Petroleum) and legal counsel have not identified any conditions that would
result in a determination of a material impairment in the carrying value of the
companys concessions.

**4**

**Equipment**

The following table summarizes information about equipment as
at December 31:

in thousands of Canadian dollars2009
    
    
    
    
    
    
    
    
    2008Accumulated
    
    
    
    
    
    
    
    
    AccumulatedCost
    
    
    Depreciation
    
    
    Net
    
    
    Cost
    
    
    Depreciation
    
    
    NetComputer
    $
    990
    
    $
    914
    
    $
    76
    
    $
    959
    
    $
    698
    
    $
    261Construction barge facility
    
    640
    
    
    87
    
    
    553
    
    
    640
    
    
    56
    
    
    584Software fees and licences
    
    412
    
    
    412
    
    
    
    
    
    412
    
    
    382
    
    
    30Office
    
    412
    
    
    197
    
    
    215
    
    
    409
    
    
    157
    
    
    252Vehicles
    
    362
    
    
    230
    
    
    132
    
    
    383
    
    
    193
    
    
    190Communications
    
    286
    
    
    155
    
    
    131
    
    
    285
    
    
    107
    
    
    178Field equipment
    
    112
    
    
    59
    
    
    53
    
    
    97
    
    
    51
    
    
    46Building
    
    27
    
    
    
    
    
    27
    
    
    
    
    
    
    
    
    Land
    
    11
    
    
    
    
    
    11
    
    
    
    
    
    
    
    
    $
    3,252
    
    $
    2,054
    
    $
    1,198
    
    $
    3,185
    
    $
    1,644
    
    $
    1,541Other assets


The following table
      summarizes information about other assets as at December 31:


in thousands of Canadian dollars2009
      
      2008EIA security deposits
      $
      2,004
      $
      4,057Advances on mineral property
      expenditures
      
      343
      
      228$
      2,347
      $
      4,285


Under the new legislative and regulatory framework which the
Government of Ecuador has implemented for the mining industry in 2009, the MNNR
continues to be responsible for the Environmental Impact Assessment (EIA)
process. An EIA is required before any single stage of work (e.g., initial
exploration, advanced exploration, construction and operation) can proceed for a
mining project in Ecuador. The Ministry of Environment of Ecuador (MAE) has
taken over responsibility for the Environmental Management Plan (EMP)
component of the EIA, and as a result, the guarantee that is required to secure
the obligations of a projects EIA is now required to be issued in favour of the
MAE. The amount of the required guarantee is reviewed annually by the MAE in
conjunction with the MAEs annual audit of the companys EMPs.

8

---

Corriente Resources Inc.
(a development stage enterprise) 
Notes to Consolidated Financial StatementsDecember 31, 2009 and 2008


(expressed in Canadian dollars unless otherwise noted)



To secure the companys project guarantees, which have been issued by a US bank, the company is required to have cash deposits in place, which vary in amount depending upon the related projects stage of development and the banks
guarantee deposit requirements.

For the Mirador Project, the company has a cash deposit in place at December 31, 2009 in the amount of US$1,213,000 ($1,275,000) as security for the guarantee in favour of the MAE against the companys obligations under the Mirador
Project EIA. A previous EIA deposit for Mirador in the amount of US$3,026,000 ($3,519,000) was returned to the company on August 7, 2009. For the Panantza-San Carlos Project, a cash deposit in the amount of US$447,000 ($470,000)
(2008  $Nil) is in place as security for the guarantee in favour of the MAE against the companys obligations under the Panantza-San Carlos Project EIA. For the Machala Port, a cash deposit in the amount of US$247,000
($259,000) (2008  $Nil) is in place as security for the guarantee in favour of the MAE against the companys obligations under the Machala Port EIA.

Advances on mineral property expenditures include payments to contractors and suppliers made pursuant to supply agreements prior to the contracted goods and services being provided.

|6 | Share capital
|- | -------------

a)  Authorized

Unlimited common shares, without par value

b) Issued

See Consolidated Statements of Changes in Shareholders Equity.

c)   Options

The company has in place an incentive stock option plan dated November 1996, last amended April 18, 2006 (the Option Plan) for directors, officers, employees and consultants to the company and its subsidiaries. The Option Plan provides
that the directors of the company may grant options to purchase common shares on terms that the directors may determine, within the limitations of the Option Plan. The number of common shares available for the grant of options under the Option Plan
and all other share compensation arrangements of the company is set at a rolling maximum number that shall not be greater than 10% of the companys current outstanding number of shares outstanding at any given time. The exercise price of each
option cannot be lower than the closing market price of the shares on the trading day immediately prior to the date of grant of the option. As at December 31, 2009, options to purchase a total of 3,572,500 (2008  2,910,000) shares were
outstanding and 2,220,939 (2008  1,559,689) of the outstanding options had vested.

Effective February 1, 2006, stock options granted have the following vesting provisions:

- 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 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.

9

---

Corriente Resources Inc.
(a development stage enterprise) 
Notes to Consolidated Financial StatementsDecember 31, 2009 and 2008


(expressed in Canadian dollars unless otherwise noted)



For the year ended December 31, 2009, the company recognized a
stock-based compensation charge of $4,162,000 (2008  $1,576,000), of which
$2,088,000 (2008  $802,000) is included in salaries, benefits and stock-based
compensation, $254,000 (2008  $Nil) is included in corporate development and
shareholder expenses and $1,820,000 (2008  $774,000) is capitalized in mineral
properties.

During the year ended December 31, 2009, the weighted average
fair value of stock options granted and those modified as approved at the
companys May 2009 Annual General Meeting was $4.12 (2008  $2.18) per share, as
estimated using the Black-Scholes Option Pricing Model with the following
assumptions:

2009
    
    
    2008Risk-free interest rate
    
    1.27  2.26%
    
    
    3.013.69%Expected dividend yield
    
    
    
    
    Expected stock price volatility
    
    48  71%
    
    
    6567%Expected option
      life in years
    
    0.40
       4.25
    
    
    2.75


Option pricing models require the input of highly subjective
assumptions including expected price volatility. Changes in the subjective input
assumptions can materially affect the fair value estimate.

The following table summarizes information about options
granted during the year ended December 31, 2009:

Number ofExpiry dates
    
    options
    
    
    Exercise pricesJanuary 1, 2014
    
    300,000
    
    $
    3.89June 1, 2014
    
    525,000
    
    
    7.92Total granted
    
    825,000


A summary of changes to stock options outstanding and
exercisable is as follows:

2009
    
    
    2008Weighted
    
    
    
    
    
    Weightedaverage
    
    
    
    
    
    averageNumber of
    
    
    exercise
    
    
    Number of
    
    
    exerciseoptions
    
    
    price
    
    
    options
    
    
    priceOptions outstanding 
      beginning of year
    
    2,910,000
    
    $
    4.52
    
    
    2,702,500
    
    $
    4.19Granted
    
    825,000
    
    
    6.45
    
    
    805,000
    
    
    4.92Exercised
    
    (47,500
    )
    
    2.97
    
    
    (375,000
    )
    
    2.82Forfeited
    
    (115,000
    )
    
    4.68
    
    
    (222,500
    )
    
    4.83Options outstanding  end of year
    
    3,572,500
    
    $
    4.98
    
    
    2,910,000
    
    $
    4.52Options exercisable  end of
      year
    
    2,220,939
    
    $
    4.51
    
    
    1,559,689
    
    $
    4.28


In accordance with the terms of the Option Plan, all unvested
stock options will be vested prior to the expiry of the Offer (note 1) in order
to allow their holders to conditionally exercise the options and tender the shares issued on exercise to the Offer. Should the Offer
not close, the exercise of these options would be reversed and the options would
all be fully vested.

10

---

Corriente Resources Inc.
(a development stage enterprise) 
Notes to Consolidated Financial StatementsDecember 31, 2009 and 2008


(expressed in Canadian dollars unless otherwise noted)



The following table summarizes information about stock options
outstanding and exercisable at December 31, 2009:

Outstanding
    
    
    
    
    
    
    
    
    ExercisableRange of exercise prices
    
    
    Number of options outstanding at December 31, 2009
    
    
    Weighted average exercise price
    
    
    Weighted average remaining contractual life (years)
    
    
    Number of options exercisable at December 31, 2009
    
    
    Weighted average exercise price
    
    
    Weighted average remaining contractual life (years)Year of Expiry2010
    
    $
    2.27  2.27
    
    
    325,000
    
    $
    2.27
    
    
    0.6
    
    
    325,000
    
    $
    2.27
    
    
    0.62011
    
    
    4.50  5.50
    
    
    914,375
    
    
    5.15
    
    
    1.4
    
    
    844,376
    
    
    5.15
    
    
    1.42012
    
    
    3.66  4.90
    
    
    710,000
    
    
    4.35
    
    
    2.3
    
    
    552,813
    
    
    4.44
    
    
    2.32013
    
    
    4.60  5.41
    
    
    798,125
    
    
    4.92
    
    
    3.3
    
    
    408,750
    
    
    4.87
    
    
    3.32014
    
    
    3.89  7.92
    
    
    825,000
    
    
    6.45
    
    
    4.3
    
    
    90,000
    
    
    5.40
    
    
    4.2$
    2.27  7.92
    
    
    3,572,500
    
    $
    4.98
    
    
    2.6
    
    
    2,220,939
    
    $
    4.51
    
    
    2.0


**7**

**Related party transactions and balances**

In June 2007, the company completed the spin-off of its Caya 36
and Piedra Liza gold target assets to Q2 Gold Resources Inc. (Q2 Gold) by
means of a Plan of Arrangement (the Arrangement). Q2 Gold has common officers
and a common Board of Directors, except that Q2 Gold has one additional director
who is independent of Corriente.

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). By amendments
dated September 25, 2008 and December 3, 2009, the maximum facility amount of
the Convertible Loan was increased from $750,000 to $1,500,000 and the maturity
date ultimately extended to December 31, 2010. No payment was made to the
company by Q2 Gold in exchange for the extension.

The Convertible Loan principal and unpaid interest are due on
the earlier of December 31, 2010 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 Convertible Loan is not material, therefore recognition and measurement of
the embedded derivative is not being presented.

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 in 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 assets could have an impact on the company up to a maximum of the
carrying value of the Convertible Loan.

11

---

Corriente Resources Inc.
(a development stage enterprise) 
Notes to Consolidated Financial StatementsDecember 31, 2009 and 2008


(expressed in Canadian dollars unless otherwise noted)



Corriente also provides certain non-technical management
services to Q2 Gold which include, but are not limited to, office, general
accounting, administrative and shareholder services, pursuant to a management
services agreement (the Agreement). The Agreement provides for a fee of
$10,000 per month for such services, which is accrued pursuant to the
Convertible Loan.

For the year ended December 31, 2009, the company accrued
$120,000 (2008  $120,000) and $64,000 (2008 $61,000) in respect of
administrative services and accrued interest on the Convertible Loan,
respectively.

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.

At December 31, 2009, the balance of the Convertible Loan
receivable from Q2 Gold, including management fees and accrued interest, was
$1,292,000 (December 31, 2008  $957,000).

8

Income taxes

The reconciliation of income taxes attributable to continuing
operations computed at statutory rates to the income tax expense (recovery) is
as follows:

In thousands of Canadian dollars2009
    
    
    2008Canadian statutory tax rates
    
    30.00%
    
    
    31.00%Income tax expense (recovery) computed at Canadian
      statutory rates
    $
    (4,790
    )
    $
    4,575Difference in foreign tax
      rates
    
    175
    
    
    139Permanent differences
    
    811
    
    
    253Impact of change in tax rates
      applied to opening future tax assets
    
    83
    
    
    474Differences in prior year tax returns filed
    
    93
    
    
    761Non-deductible (taxable)
      portion of capital losses (gains)
    
    1,539
    
    
    (2,461
    )Change in valuation allowance
    
    1,785
    
    
    (3,526
    )Other
    
    304
    
    
    (215
    )Income tax expense (recovery)
    $
    
    
    $
    


12

---

Corriente Resources Inc.
(a development stage enterprise) 
Notes to Consolidated Financial StatementsDecember 31, 2009 and 2008


(expressed in Canadian dollars unless otherwise noted)



The significant components of the companys future income tax
assets and liabilities are as follows:

in thousands of Canadian dollars2009
    
    
    2008Future income tax assetsLosses carried forward
    $
    1,497
    
    $
    1,195Mineral properties
    
    1,823
    
    
    1,154Share issuance costs
    
    367
    
    
    877Equipment and other
    
    1,585
    
    
    2615,272
    
    
    3,487Valuation allowance
    
    (5,272
    )
    
    (3,487
    )$
    
    
    $
    


At December 31, 2009, the company has Canadian losses for tax
purposes of approximately $5,871,000 which expire on various dates from 2010 to
2029.

9

Segmented information

The company operates within a single operating segment, which
is the exploration and development of copper mineral properties. The companys
mineral property interests are in Ecuador, as set out in note 3.

Geographic segmentation of the
      companys assets is as follows:in thousands of Canadian dollars2009
    
    
    
    
    
    
    
    
    2008Canada
    
    
    Ecuador
    
    
    Total
    
    
    Canada
    
    
    Ecuador
    
    
    TotalCash and cashequivalents
    $
    66,927
    
    $
    2,493
    
    $
    69,420
    
    $
    17,577
    
    $
    963
    
    $
    18,540Investments
    
    
    
    
    
    
    
    
    
    
    75,237
    
    
    
    
    
    75,237Accounts receivableand prepayments
    
    72
    
    
    
    
    
    72
    
    
    84
    
    
    
    
    
    84Convertible loan
    
    1,292
    
    
    
    
    
    1,292
    
    
    957
    
    
    
    
    
    957Mineral properties
    
    
    
    
    109,038
    
    
    109,038
    
    
    
    
    
    94,489
    
    
    94,489Equipment
    
    106
    
    
    1,092
    
    
    1,198
    
    
    113
    
    
    1,428
    
    
    1,541Other assets
    
    
    
    
    2,347
    
    
    2,347
    
    
    
    
    
    4,285
    
    
    4,285$
    68,397
    
    $
    114,970
    
    $
    183,367
    
    $
    93,968
    
    $
    101,165
    
    $
    195,133


Substantially all of the consolidated statements of loss
(earnings) and comprehensive loss (income) for the years ended December 31, 2009
and 2008 relate to the Canadian operations.

13

---

Corriente Resources Inc.
(a development stage enterprise) 
Notes to Consolidated Financial StatementsDecember 31, 2009 and 2008


(expressed in Canadian dollars unless otherwise noted)



10

Supplemental cash flow information

Cash and cash equivalents at December 31 comprise the
following:

in thousands of Canadian dollars2009
    
    
    2008Cash on hand and balances with banks
    $
    6,234
    
    $
    4,588Short-term investments, with maturity dates less than 90
      days at acquisition
    
    63,186
    
    
    13,952$
    69,420
    
    $
    18,540


At December 31, 2009, the companys short-term investments are
invested in overnight Canadian chartered bank deposits with R1-High investment
ratings (DBRS) that are easily liquidated and mature daily. The company has no
investments in asset-backed commercial paper.

During the years ended December 31, 2009 and 2008, the
companys significant non-cash investing activities were as follows:

in thousands of Canadian dollars2009
    
    
    2008Stock-based compensation
      included in mineral properties
    $
    1,820
    
    $
    774Depreciation included in mineral properties
    $
    410
    
    $
    473Change in accounts payable
      relating to mineral properties
    $
    (600
    )
    $
    (254
    )


**11**

**Capital management**

The companys primary objective when managing capital is to
safeguard the companys ability to continue as a going concern in order to
pursue the development and exploration of its mineral properties and to maintain
a flexible capital structure which optimizes the costs of capital at an
acceptable risk. In the management of capital, the company defines capital that
it manages as share capital (2009  $236,391,000; 2008  $235,996,000), cash and
cash equivalents (2009  $69,420,000; 2008  $18,540,000) and investments (2009
 $Nil; 2008  $75,237,000).

The company manages the capital structure and makes adjustments
to it in light of changes in economic conditions and the risk characteristics of
the underlying assets. The company intends to continue to assess new resource
properties and seek to acquire an interest in additional properties if it feels
there is sufficient geologic or economic potential and if it has adequate
financial resources to do so. To maintain or adjust its capital structure, the
company may attempt to issue new shares, issue debt, acquire or dispose of
assets or adjust the amount of cash and cash equivalents and investments.

In order to facilitate the management of its capital
requirements, the company prepares annual expenditure budgets that are updated
as necessary depending on various factors, including successful capital
deployment 
and general industry conditions. The companys annual and updated budgets are approved by the Board of Directors.

14

---

Corriente Resources Inc.
(a development stage enterprise) 
Notes to Consolidated Financial StatementsDecember 31, 2009 and 2008


(expressed in Canadian dollars unless otherwise noted)



At this stage of the companys development, in order to maximize ongoing development efforts, the company does not pay out dividends.

The companys investment policy is to invest its cash in highly liquid short-term interest-bearing R1-High investment rated (DBRS) investments with maturities less than one year from the original date of acquisition.

The company expects its current capital resources will be sufficient to carry its exploration and development plans and operations through its current operating period. The company is currently not subject to externally imposed capital requirements.

12

Management of 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, which has no known liquidity
problems. 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 and a Canadian provincial treasury board, which carry a R1-High
(DBRS) investment rating and are easily liquidated, as they mature within 90 days. The company has no investments in asset-backed commercial paper. The company manages counterparty credit risk by regularly monitoring counterparty credit ratings.

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 $1,292,000 is due from Q2 Gold, a related company, and its subsidiaries. Q2 Golds assets are primarily made up of mineral concessions located in Ecuador and are believed by management to have gold
resource potential. The convertible loan is collateralized by the assets of Q2 Gold (note 7).

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 11 to the
consolidated financial statements.

15

---

Corriente Resources Inc.
(a development stage enterprise) 
Notes to Consolidated Financial StatementsDecember 31, 2009 and 2008


(expressed in Canadian dollars unless otherwise noted)



Accounts payable relating to mineral properties and other
accounts payable and accrued liabilities are due within the current operating
period. As at December 31, 2009, the company had total cash and cash equivalents
and investments of $69,420,000 to settle current liabilities of $1,492,000.

Market risk

Market risk is the risk of loss that may arise from changes in
market factors such as interest rates, foreign exchange rates, and 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, 2009 and 2008, the company is exposed to
currency risk through the following financial assets and liabilities denominated
in US dollars:

in thousands of US dollarsDecember 31,
    
    
    December 31,2009
    
    
    2008Cash and cash equivalents
    $
    55,697
    
    $
    3,703Investments
    
    
    
    
    61,771Other assets
    
    2,233
    
    
    3,518Accounts payable relating to mineral properties
    
    (763
    )
    
    (1,151
    )


Based on the above net exposures as at December 31, 2009, 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 $5,717,000 in the companys net earnings
(loss).

(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. An increase or decrease of 1% in market interest rates on cash
and cash equivalents would result in an increase or decrease in interest income
of $694,000.

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 a Canadian provincial treasury board
or major bank. Changes in interest rates would not have a significant impact on
the consolidated statements of earnings (loss).

16

---

Corriente Resources Inc.
(a development stage enterprise) 
Notes to Consolidated Financial StatementsDecember 31, 2009 and 2008


(expressed in Canadian dollars unless otherwise noted)



(c) Price risk

Commodity price risk is defined as the potential adverse impact
on earnings and 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 pricing may be
significant. 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.

|13 | Reconciliation to US Generally Accepted Accounting
      Principles                                                                                                                                                                                                                                                                                                                                                                                                                                                                      
|-- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          
|   | The consolidated financial statements have been prepared
      in accordance with Canadian GAAP, which differs in certain respects from
      those applicable in the United States (US GAAP) and from practices
      prescribed by the United States Securities and Exchange Commission
      (SEC). Significant measurement differences that materially affect the
      companys consolidated financial statements as at December 31, 2009 and
      2008 and for the years ended December 31, 2009 and 2008 are as
    follows:
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          
|   | a)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          

Had the company followed US GAAP, certain items in the
financial statements would have been reported as follows (all US GAAP
reconciliation figures in thousands of Canadian dollars, except per share
figures and numbers of shares outstanding):

Statements of Loss (Earnings)in thousands of Canadian dollarsYears endedDecember 31,
    
    
    December 31,2009
    
    
    2008Net loss (earnings) under Canadian GAAP
    $
    15,966
    
    $
    (14,758
    )Adjustment to reconcile to US GAAP: Mineral exploration
      expenditures ((a) above)
    
    13,968
    
    
    16,607Loss and comprehensive loss under US GAAP
    $
    29,934
    
    $
    1,849Basic and diluted loss per share under US GAAP
    $
    0.40
    
    $
    0.02Weighted average number of shares
      outstanding
    
    75,330,146
    
    
    75,088,978


17

---

Corriente Resources Inc.
(a development stage enterprise) 
Notes to Consolidated Financial StatementsDecember 31, 2009 and 2008


(expressed in Canadian dollars unless otherwise noted)



Balance Sheetsin thousands of Canadian dollarsDecember 31,
      
      
      December 31,2009
      
      
      2008Total assets under Canadian GAAP
      $
      183,367
      
      $
      195,133Adjustment to reconcile to US GAAP:Mineral exploration expenditures ((a)
      above)
      
      (98,266
      )
      
      (84,298
      )Total assets under US GAAP
      $
      85,101
      
      $
      110,835Total liabilities under Canadian and US GAAP
      $
      1,492
      
      $
      1,595Shareholders equity under Canadian GAAP
      
      181,875
      
      
      193,538Adjustment to reconcile to US GAAP:Mineral exploration expenditures ((a)
      above)
      
      (98,266
      )
      
      (84,298
      )Total shareholders equity under US GAAP
      
      83,609
      
      
      109,240Total liabilities & shareholders
      equity under US GAAP
      $
      85,101
      
      $
      110,835Statements of Cash Flowsin thousands of Canadian dollarsYears endedDecember 31,
    
    
    December 31,2009
    
    
    2008Cash from (applied to) operating activities
      under Canadian GAAP
    $
    (13,268
    )
    $
    15,636Adjustment to reconcile to US GAAP: Mineral
      exploration expenditures ((a) above)
    
    (12,436
    )
    
    (15,588
    )Cash from (applied to) operating activities
      under US GAAP
    $
    (25,704
    )
    $
    48Cash (applied to) investing activities under Canadian
      GAAP
    $
    64,007
    
    $
    (91,426
    )Adjustment to reconcile to US GAAP: Mineral
      exploration expenditures ((a) above)
    
    12,436
    
    
    15,588Cash (applied to) investing activities
      under US GAAP
    $
    76,443
    
    $
    (75,838
    )


18

---

Corriente Resources Inc.
(a development stage enterprise) 
Notes to Consolidated Financial StatementsDecember 31, 2009 and 2008


(expressed in Canadian dollars unless otherwise noted)

Recently implemented US accounting pronouncements

|i)   | In May 2009, the FASB issued Accounting Standards
      Codification (ASC) 855-10, Subsequent Events (ASC 855-10) (formerly
      SFAS Statement No 165), which establishes principles and requirements for
      subsequent events. In particular, ASC 855-10 sets forth: (a) the period
      after the balance sheet date during which management of a reporting entity
      shall evaluate events or transactions that may occur for potential
      recognition or disclosure in the financial statements; (b) the
      circumstances under which an entity shall recognize events or transactions
      occurring after the balance sheet date in its financial statements; and
      (c) the disclosures that an entity shall make about events or transactions
      that occurred after the balance sheet date. ASC 855-10 also requires
      disclosure of the date through which an entity has evaluated subsequent
      events and the basis for that date. As a result of the adoption of this
      new standard, the company evaluated subsequent events to March 23, 2010,
      the date these consolidated financial statements were available for
      issue.
|---- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|     |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          
|ii)  | In February 2008, the FASB issued guidance as outlined in
      the Financial Instruments Topic ASC 820 (ASC 820-10-65-1), originally
      released FASB Staff Position No. 157-2, Effective Date of FASB Statement
      No. 157 (FSP FAS 157-2). This guidance defers the effective date of the
      Financial Instruments Topic, for all non-financial assets and liabilities,
      except those that are recognized or disclosed at fair value in the
      financial statements on a recurring basis. This guidance defers the
      effective date to fiscal years beginning after November 15, 2008, for
      items within the scope of ASC 820-10-65-1. The Company adopted this
      guidance on January 1, 2009. The adoption of this guidance did not have a
      material impact on the company's financial statement
disclosures.                                                                                                                                                                                                                                                                                                                                 
|     |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          
|iii) | In December 2007, the FASB issued guidance as outlined in
      the Consolidations Topic ASC 810 (ASC 810-10-65), originally released as
      FASB Statement No. 160, Noncontrolling Interests in Consolidated Financial
      Statementsan amendment of ARB No. 51 (FAS 160). This guidance establishes
      accounting and reporting standards for entities that have equity
      investments that are not attributable directly to the parent, called
      noncontrolling interests or minority interests. Additionally, the guidance
      states where and how to report noncontrolling interests in the
      consolidated statements of financial position and operations, how to
      account for changes in noncontrolling interests and provides disclosure
      requirements. The adoption of this guidance did not have a material impact
      on the company's financial statement disclosures.                                                                                                                                                                                                                                                                   

|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    
|--- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|iv) | In December 2007, the FASB issued guidance as outlined in
      the revised Business Combinations Topic ASC 805 (ASC 805), originally
      released as FASB Statement No. 141(R), Business Combinations. This
      guidance establishes how an entity accounts for identifiable assets
      acquired, liabilities assumed, and any noncontrolling interests acquired,
      how to account for goodwill acquired and determines what disclosures are
      required as part of a business combination. The adoption of this guidance
      did not have a material impact on the company's financial statement
      disclosures.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             
|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    
|v)  | In June 2009, the FASB issued new guidance which is now
      part of ASC 105-10 (the Codification) (formerly Statement of Financial
      Accounting Standards No. 168, The FASB Accounting Standards Codification
      and the Hierarchy of Generally Accepted Accounting Principles), which will
      become the source of authoritative US GAAP recognized by the FASB to be
      applied by nongovernmental entities. Rules and interpretive releases of
      the SEC under authority of federal securities laws are also sources of
      authoritative GAAP for SEC registrants. On the effective date of the
      Codification, the Codification will supersede all then-existing non-SEC
      accounting and reporting standards. All other non-grandfathered non-SEC
      accounting literature not included in the Codification will become
      non-authoritative. The Codification is effective for financial statements
      issued for interim and annual periods ending after September 15, 2009. The
      adoption of the Codification only had the effect of amending references to
      authoritative accounting guidance in the companys consolidated financial
      statements.

19

---