---



ANOORAQ RESOURCES CORPORATION
  CONSOLIDATED FINANCIAL STATEMENTS

FOR THE TWELVE MONTHS ENDED OCTOBER 31, 2004

(unaudited)

(Expressed in Canadian Dollars)

(These statements have not been reviewed by the Company's auditors)

---

ANOORAQ RESOURCES CORPORATION
  Consolidated Balance Sheets
  (Expressed in Canadian Dollars)

|                                                        |   | October 31, |   |   | October 31, |  
|------------------------------------------------------- | - | ----------- | - | - | ----------- | -
|                                                        |   | 2004        |   |   | 2003        |  
|                                                        |   | (unaudited) |   |   |             |  
|                                                        |   |             |   |   |             |  
|Assets                                                  |   |             |   |   |             |  
|                                                        |   |             |   |   |             |  
|Current assets                                          |   |             |   |   |             |  
|Cash and equivalents                                    | $ | 16,638,844  |   | $ | 5,414,398   |  
|Amounts receivable (notes 4 and 8)                      |   | 1,087,903   |   |   | 164,499     |  
|Prepaid expenses                                        |   | 162,914     |   |   | 60,819      |  
|                                                        |   | 17,889,661  |   |   | 5,639,716   |  
|                                                        |   |             |   |   |             |  
|Equipment(note 5)                                       |   | 172,427     |   |   | 16,990      |  
|Mineral property interests(note 6)                      |   | 10,664,161  |   |   | 4,200,000   |  
|                                                        |   |             |   |   |             |  
|                                                        | $ | 28,726,249  |   | $ | 9,856,706   |  
|                                                        |   |             |   |   |             |  
|                                                        |   |             |   |   |             |  
|Liabilities and Shareholders' Equity                    |   |             |   |   |             |  
|                                                        |   |             |   |   |             |  
|Current liabilities                                     |   |             |   |   |             |  
|Accounts payable and accrued liabilities
      (note 8) | $ | 2,352,996   |   | $ | 528,277     |  
|                                                        |   |             |   |   |             |  
|Long term liabilities                                   |   |             |   |   |             |  
|Future income tax liability (note 9)                    |   | 1,561,000   |   |   | –           |  
|                                                        |   |             |   |   |             |  
|Shareholders' equity                                    |   |             |   |   |             |  
|Share capital (note 7)                                  |   | 49,195,125  |   |   | 25,086,863  |  
|Contributed surplus (note 7(c))                         |   | 2,939,898   |   |   | 485,962     |  
|Deficit                                                 |   | (27,322,770 | ) |   | (16,244,396 | )
|                                                        |   | 24,812,253  |   |   | 9,328,429   |  
|                                                        |   |             |   |   |             |  
|Continuing operations (note 1)                          |   |             |   |   |             |  
|                                                        | $ | 28,726,249  |   | $ | 9,856,706   |  

See accompanying notes to consolidated financial statements

Approved by the Board of Directors

|/s/ Ronald W. Thiessen | /s/ Scott D. Cousens
|---------------------- | --------------------
|                       |                     
|Ronald W. Thiessen     | Scott D. Cousens    
|Director               | Director            

---

ANOORAQ RESOURCES CORPORATION
  Consolidated Statements of Operations
  (Expressed in Canadian Dollars)

|                                                             |   |                                     |   |   |                                      |  
|------------------------------------------------------------ | - | ----------------------------------- | - | - | ------------------------------------ | -
|                                                             |   | Three months ended October
      31 |   |   | Twelve months ended October
      31 |  
|                                                             |   | 2004                                |   |   | 2003                                 |  
|                                                             |   | (unaudited)                         |   |   | (unaudited)                          |  
|                                                             |   |                                     |   |   |                                      |  
|Expenses                                                     |   |                                     |   |   |                                      |  
|Conference and travel                                        | $ | 207,990                             |   | $ | 72,528                               |  
|Consulting                                                   |   | 169,035                             |   |   | 72,147                               |  
|Exploration (schedule)                                       |   | 2,063,303                           |   |   | 788,646                              |  
|Exploration - stock-based compensation (note
      7(c))     |   | 18,899                              |   |   | 1,917                                |  
|Foreign exchange (gain)                                      |   | 111,026                             |   |   | 14,636                               |  
|Interest (income)                                            |   | 44,168                              |   |   | (16,890                              | )
|Legal, accounting and audit                                  |   | (150,351                            | ) |   | 14,785                               |  
|Office and administration                                    |   | 115,487                             |   |   | 80,151                               |  
|Property investigations                                      |   | –                                   |   |   | 6,088                                |  
|Salaries and benefits                                        |   | 242,625                             |   |   | 112,577                              |  
|Stock-based compensation (note 7(c))                         |   | 6,688                               |   |   | 446,942                              |  
|Shareholders communications                                  |   | 112,564                             |   |   | 61,342                               |  
|Trust and filing                                             |   | (1,069                              | ) |   | (1,166                               | )
|Write off (recovery) of amounts receivable (note
      8(e)) |   | –                                   |   |   | 365,924                              |  
|Loss for the period                                          | $ | 2,940,365                           |   | $ | 2,019,627                            |  
|                                                             |   |                                     |   |   |                                      |  
|Basic and diluted loss per share                             | $ | (0.03                               | ) | $ | (0.05                                | )
|                                                             |   |                                     |   |   |                                      |  
|Weighted average number of common                            |   |                                     |   |   |                                      |  
|shares outstanding                                           |   | 86,349,070                          |   |   | 38,580,601                           |  

|Consolidated Statements of Deficit |   |                                |   |   |             |  
|---------------------------------- | - | ------------------------------ | - | - | ----------- | -
|(Expressed in Canadian Dollars)    |   |                                |   |   |             |  
|                                   |   |                                |   |   |             |  
|                                   |   | Twelve months ended October 31 |  
|                                   |   | 2004                           |   |   | 2003        |  
|                                   |   | (unaudited)                    |   |   |             |  
|                                   |   |                                |   |   |             |  
|Deficit, beginning of period       | $ | (16,244,396                    | ) | $ | (12,414,982 | )
|Loss for the period                |   | (11,078,374                    | ) |   | (3,829,414  | )
|Deficit, end of period             | $ | (27,322,770                    | ) | $ | (16,244,396 | )

See accompanying notes to consolidated financial statements

---

ANOORAQ RESOURCES CORPORATION
  Consolidated Statements of Cash Flows
  (Expressed in Canadian Dollars)

|                                                    |   |                               |   |   |                                |  
|--------------------------------------------------- | - | ----------------------------- | - | - | ------------------------------ | -
|                                                    |   | Three months ended October 31 |   |   | Twelve months ended October 31 |  
|Cash provided by (used for):                        |   | 2004                          |   |   | 2003                           |  
|                                                    |   | (unaudited)                   |   |   | (unaudited)                    |  
|                                                    |   |                               |   |   |                                |  
|Operating activities                                |   |                               |   |   |                                |  
|Loss for the period                                 | $ | (2,940,365                    | ) | $ | (2,019,627                     | )
|Items not involving cash                            |   |                               |   |   |                                |  
|Depreciation included in
      exploration expenses |   | 9,043                         |   |   | 3,967                          |  
|Stock-based compensation                            |   | 25,587                        |   |   | 448,859                        |  
|Amounts receivable written
      off                |   | –                             |   |   | 365,924                        |  
|Shares issued for property
      option and         |   |                               |   |   |                                |  
|assignment
      agreements                         |   | –                             |   |   | 109,375                        |  
|Changes in non-cash operating working capital       |   |                               |   |   |                                |  
|Amounts receivable                                  |   | (488,339                      | ) |   | 202,985                        |  
|Prepaid expenses                                    |   | (158,139                      | ) |   | (33,798                        | )
|Accounts payable and accrued
      liabilities      |   | 1,554,483                     |   |   | 253,060                        |  
|                                                    |   | (1,997,730                    | ) |   | (669,255                       | )
|                                                    |   |                               |   |   |                                |  
|Investing activities                                |   |                               |   |   |                                |  
|Mineral property interests                          |   | (4,903,161                    | ) |   | –                              |  
|Purchase of equipment                               |   | (148,536                      | ) |   | –                              |  
|                                                    |   | (5,051,697                    | ) |   | –                              |  
|                                                    |   |                               |   |   |                                |  
|Financing activities                                |   |                               |   |   |                                |  
|Issuance of common shares for cash, net of costs    |   | 1,474,080                     |   |   | 1,261,183                      |  
|                                                    |   |                               |   |   |                                |  
|Increase (decrease) in cash and equivalents         |   | (5,575,347                    | ) |   | 591,928                        |  
|Cash and equivalents, beginning of period           |   | 22,214,191                    |   |   | 4,822,470                      |  
|Cash and equivalents, end of period                 | $ | 16,638,844                    |   | $ | 5,414,398                      |  
|                                                    |   |                               |   |   |                                |  
|                                                    |   |                               |   |   |                                |  
|Supplementary information:                          |   |                               |   |   |                                |  
|Interest paid                                       | $ | 6,677                         |   |   | –                              |  
|Taxes paid                                          | $ | –                             |   |   | –                              |  
|                                                    |   |                               |   |   |                                |  
|                                                    |   |                               |   |   |                                |  
|Non-cash financing and investing activities:        |   |                               |   |   |                                |  
|Shares issued for property option agreements        | $ | –                             |   |   | 109,375                        |  

---

ANOORAQ RESOURCES CORPORATION
  Consolidated Schedules of Exploration Expenses
  (Expressed in Canadian Dollars)

|                                             |   |                               |   |   |                                | 
|-------------------------------------------- | - | ----------------------------- | - | - | ------------------------------ | 
|                                             |   | Three months ended October 31 |   |   | Twelve months ended October 31 | 
|                                             |   | 2004                          |   |   | 2003                           | 
|                                             |   | (unaudited)                   |   |   | (unaudited)                    | 
|                                             |   |                               |   |   |                                | 
|Northern Limb of the Bushveld                |   |                               |   |   |                                | 
|Assays and analysis                          | $ | 460,620                       |   | $ | 88,323                         | 
|Depreciation                                 |   | 9,043                         |   |   | 3,967                          | 
|Drilling                                     |   | 748,387                       |   |   | 202,902                        | 
|Engineering                                  |   | 217,785                       |   |   | 67,885                         | 
|Environmental and socioeconomic              |   | (31,074                       | ) |   | 29,513                         | 
|Geological and consulting                    |   | 320,117                       |   |   | 155,180                        | 
|Graphics                                     |   | 17,621                        |   |   | 9,905                          | 
|Property fees and assessments                |   | 65,775                        |   |   | 24,714                         | 
|Property option payments                     |   | 6,484                         |   |   | 109,375                        | 
|Site activities                              |   | 102,357                       |   |   | 75,621                         | 
|Transportation                               |   | 7,585                         |   |   | 21,261                         | 
|                                             |   | 1,924,700                     |   |   | 788,646                        | 
|                                             |   |                               |   |   |                                | 
|Eastern Limb of the Bushveld                 |   |                               |   |   |                                | 
|Engineering                                  |   | 44,224                        |   |   | –                              | 
|Geological and consulting                    |   | 25,897                        |   |   | –                              | 
|Graphics                                     |   | 8,060                         |   |   | –                              | 
|Property fees and assessments                |   | (1,550                        | ) |   | –                              | 
|Site activities                              |   | 14,452                        |   |   | –                              | 
|Transportation                               |   | 47,520                        |   |   | –                              | 
|                                             |   | 138,603                       |   |   | –                              | 
|                                             |   |                               |   |   |                                | 
|Exploration expense, before the following:   |   | 2,063,303                     |   |   | 788,646                        | 
|Stock-based compensation                     |   | 18,899                        |   |   | 1,917                          | 
|Exploration expense                          |   | 2,082,202                     |   |   | 790,563                        | 
|Cumulative expenditures, beginning of period |   | 13,529,197                    |   |   | 7,199,384                      | 
|Cumulative expenditures, end of period       | $ | 15,611,399                    |   | $ | 7,989,947                      | 

See accompanying notes to consolidated financial statements

---

|ANOORAQ
      RESOURCES CORPORATION
      Notes to Consolidated Financial Statements 
      For the twelve months ended October 31, 2004 
      (Unaudited – Expressed in Canadian Dollars)
|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|1.  | Continuing operations                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        
|--- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|   
|    | Anooraq Resources Corporation (the "Company", or
        "Anooraq") is incorporated in the Province of British Columbia, Canada
        and its principal business activity is the exploration of mineral properties.
        Since 1999 the Company has focused on mineral interests located in the
        Republic of South Africa with particular attention on the Bushveld Complex
        (note 6).                                                                                                                                                                                                                                    
|   
|    | The Company is in the process of exploring its mineral
        property interests and has not identified a body of commercial grade ore
        on any of its properties. The ability of the Company to recover the costs
        it has incurred to date on these properties is dependent upon the Company
        being able to identify a commercially viable ore body, to finance its
        exploration costs and to address any environmental, regulatory or other
        issues which may arise in the course of developing the property.                                                                                           
|   
|    | These consolidated financial statements have been
        prepared using Canadian generally accepted accounting principles assuming
        a going concern. The Company has incurred losses since inception and the
        ability of the Company to continue as a going concern depends upon its
        ability to develop profitable operations and to continue to raise adequate
        financing. These financial statements do not reflect adjustments, which
        could be material, to the carrying values of assets and liabilities which
        may be required should the Company be unable to continue as a going concern.
|   
|2.  | Basis of presentation and principles of consolidation                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        
|   
|    | These financial statements are prepared in accordance
        with Canadian generally accepted accounting principles. The consolidated
        financial statements include the accounts of the Company's subsidiaries.
        The Company's investment in the Ga-Phasha joint venture (note 6(b)) is
        consolidated on a proportionate basis. All material intercompany balances
        and transactions have been eliminated.                                                                                                                                                                                                      
|   
|    | During the twelve months ended October 31, 2004,
        the Company changed its fiscal year end from October 31 to December 31,
        in order to coincide its planning and reporting activities with its joint
        venture partner, Anglo American Platinum Corporation Limited (note 6(b)).                                                                                                                                                                                                                                                                                                                                         
|   
|3.  | Significant accounting policies                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              
|   
|(a) | Cash and equivalents                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         
|   
|    | Cash and equivalents consist of cash and highly
        liquid investments, having maturity dates of three months or less from
        the date of purchase, that are readily convertible to known amounts of
        cash.                                                                                                                                                                                                                                                                                                                                                                                                                  

---

|ANOORAQ RESOURCES CORPORATION
  Notes to Consolidated Financial Statements 
  For the twelve months ended October 31, 2004 
  (Unaudited – Expressed in Canadian Dollars)
|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|(b) | Equipment                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              
|--- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|   
|    | Equipment is carried at cost less accumulated depreciation.
        Depreciation is provided on a declining balance basis at various rates
        ranging from 15% to 30% per annum.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  
|   
|(c) | Mineral property interests                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             
|   
|    | Exploration expenses incurred prior to determination
        of the feasibility of mining operations, periodic option payments and
        administrative expenditures are expensed as incurred. Mineral property
        acquisition costs and exploration and development expenditures incurred
        subsequent to the determination of the feasibility of mining operations
        are deferred until the property to which they relate is placed into production,
        sold, allowed to lapse or abandoned.                                                                                                                                                                                                                                                                                                                                                                                                                                 
|   
|    | Mineral property acquisition costs include the cash
        consideration and the fair market value of common shares, based on the
        trading price of the shares, issued for mineral property interests, pursuant
        to the terms of the agreement. These costs are amortized over the estimated
        life of the property following commencement of commercial production,
        or written off if the property is sold, allowed to lapse or abandoned
        or when an impairment of value has occurred.                                                                                                                                                                                                                                                                                                                                                                                                                           
|   
|(d) | Share capital                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          
|   
|    | The Company records proceeds from share issuances
        net of issue costs. Common shares issued for consideration other than
        cash are valued at the quoted price on the stock exchange on the date
        of the agreement to issue the shares. Costs incurred to issue common shares
        are deducted from share capital.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             
|   
|(e) | Income taxes                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           
|   
|    | The Company uses the asset and liability method
        of accounting for income taxes. Under this method, future income tax assets
        and liabilities are computed based on differences between the carrying
        amounts of assets and liabilities on the balance sheet and their corresponding
        tax values, generally using the enacted or substantively enacted income
        tax rates expected to apply to taxable income in the years in which those
        temporary differences are expected to be recovered or settled. Future
        income tax assets also result from unused loss carry forwards and other
        deductions. Future tax assets are recognized to the extent that they are
        considered more likely than not to be realized. The valuation of future
        income tax assets is adjusted, if necessary, by the use of a valuation
        allowance to reflect the estimated realizable amount.
|   
|(f) | Loss per share                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         
|   
|    | Basic loss per share is calculated by dividing the
        loss available to common shareholders by the weighted average number of
        common shares outstanding during the period. For all periods presented,
        loss available to common shareholders equals the reported loss.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             
|   
|    | Diluted loss per share is not presented as the effect
        of including outstanding options and warrants in the loss per share calculation
        would be anti-dilutive.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          

---

|ANOORAQ
      RESOURCES CORPORATION
      Notes to Consolidated Financial Statements 
      For the twelve months ended October 31, 2004 
      (Unaudited – Expressed in Canadian Dollars)
|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|(g) | Fair value of financial instruments                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 
|--- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|   
|    | The carrying amounts of cash and equivalents, amounts
        receivable, and accounts payable and accrued liabilities approximate their
        fair values due to their short-term nature. It is not practicable to determine
        the fair values of amounts receivable due from related parties (note 8)
        due to the related party nature of such amounts and the absence of a secondary
        market for such instruments.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         
|   
|(h) | Translation of foreign currencies                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   
|   
|    | All of the Company's foreign operations are integrated.
        Monetary assets and liabilities of the Company's integrated foreign operations
        are translated into Canadian dollars at exchange rates in effect at the
        balance sheet date. Non-monetary assets and liabilities are translated
        at historical exchange rates unless such items are carried at market,
        in which case they are translated at the exchange rates in effect on the
        balance sheet date. Revenues and expenses, except depreciation, are translated
        at the average exchange rates for the period. Depreciation is translated
        at the same exchange rate as the assets to which it relates. Gains or
        losses on translation are expensed.                                                                                                                                                                                                                                      
|   
|(i) | 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 the 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
        areas requiring the use of management estimates include the determination
        of the recoverability of mineral property interests and the assumptions
        used in determining the fair value of non-cash stock-based compensation.
        Actual results could differ from these estimates.                                                                                                                                                                                                                                                                                                                   
|   
|(j) | Stock-based compensation                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            
|   
|    | The Company has a share option plan, which is described
        in note 7(c). The Company accounts for all non-cash stock-based payments
        to non-employees, and employee awards that are direct awards of stock,
        that call for settlement in cash or other assets, or that are stock appreciation
        rights which call for settlement by the issuance of equity instruments,
        granted on or after November 1, 2002, using the fair value based method.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   
|   
|    | Under the fair value based method, stock-based payments
        are measured at the fair value of the consideration received, or the fair
        value of the equity instruments issued, or liabilities incurred, whichever
        is more reliably measurable. The fair value of non-cash stock-based payments
        is periodically re-measured until counterparty performance is complete,
        and any change therein is recognized over the period and in the same manner
        as if the Company had paid cash instead of paying with or using equity
        instruments. For awards that vest at the end of a vesting period, compensation
        cost is recognized on a straight-line basis; for awards that vest on a
        graded basis, compensation cost is recognized on a pro-rata basis over
        the vesting period. The cost of non-cash stock-based payments that are
        fully vested and non-forfeitable at the grant date is measured and recognized
        at that date.

---

|ANOORAQ
      RESOURCES CORPORATION
      Notes to Consolidated Financial Statements 
      For the twelve months ended October 31, 2004 
      (Unaudited – Expressed in Canadian Dollars)
|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | No compensation cost is required to be recorded for
        all other non-cash stock-based employee compensation awards; however the
        Company is permitted to, and effective November 1, 2003, has elected to,
        include these costs in operations on a prospective basis.
      Upon the exercise of stock options, cash consideration
        paid, and the corresponding amount which was credited to contributed surplus,
        are credited to share capital.
      Prior to November 1, 2003, the Company presented in
        the notes to the financial statements the pro forma loss and loss per
        share had the fair value method been used to account for employee non-cash
        stock-based compensation awards.
| | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      

|(k) | Comparative figures                                                                                                                        
|--- | -------------------------------------------------------------------------------------------------------------------------------------------
|   
|    | Certain of the prior periods' comparative figures have been restated
      to conform with the presentation adopted for the current period.
|   
|4.  | Amounts receivable                                                                                                                         
|    |                                                                                                                                            
|    | Amounts receivable comprise the following:                                                                                                 

| |                                                        | October 31, | October 31,
| | ------------------------------------------------------ | ----------- | -----------
| |                                                        | 2004        | 2003       
| | Value-added taxes recoverable                          | $ 626,452   | $ 162,910  
| | Employee expense advances                              | 116,596     | 1,589      
| | Hunter Dickinson Inc., and subsidiaries
      (note 8) | 344,855     | –          
| |                                                        | $ 1,087,903 | $ 164,499  

|5. | Equipment
|-- | ---------

| |          | October 31, 2004 | October 31, 2003
| | -------- | ---------------- | ----------------
| |          |                  |                 
| |          |                  | Cost            
| | Office   | $                | 30,421          
| | Vehicles |                  | 249,780         
| |          | $                | 280,201         

---

|ANOORAQ
      RESOURCES CORPORATION
      Notes to Consolidated Financial Statements 
      For the twelve months ended October 31, 2004 
      (Unaudited – Expressed in Canadian Dollars)
|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|6. | Mineral property interests
|-- | --------------------------

| | Mineral Property Acquisition Costs – South Africa |   | October 31, 2004 |   | October 31, 2003
| | ------------------------------------------------- | - | ---------------- | - | ----------------
| | Platreef Properties                               | $ | 4,200,000        | $ | 4,200,000       
| | Ga-Phasha Project (note 6(b))                     |   | 6,464,161        |   | –               
| | Balance, end of period                            | $ | 10,664,161       | $ | 4,200,000       

|    | Refer also to the Consolidated Statements of Exploration Expenses.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         
|--- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|   
|(a) | Northern Limb of the Bushveld Complex, Republic of South Africa                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            
|   
|    | Platreef                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   
|   
|    | In October 1999, the Company acquired a two-stage
        right to purchase up to 100% of Pinnacle Resources Inc.'s ("Pinnacle")
        South African subsidiary, Plateau Resources (Proprietary) Limited ("Plateau"),
        which holds the Platreef platinum group mineral ("PGM") properties located
        on the Northern Limb of the Bushveld Complex in South Africa.                                                                                                                                                                                                                                                                                                                                                                                           
|   
|    | The Company acquired its rights under the October
        1999 agreement with Pinnacle as a consequence of reaching a settlement
        agreement with Gladiator Minerals Inc., subsequently renamed Hinterland
        Metals Inc. ("Hinterland"), pursuant to which Anooraq would pay cash of
        $25,000 (paid) and issue shares in stages to Hinterland, to a maximum
        of 875,000 shares based on project expenditures and a bonus of 625,000
        shares for each 7 million PGM ounces defined on the project. Under this
        agreement, 378,500 shares were issued to Hinterland and on November 13,
        2003, the Company issued an additional 400,000 common shares to Hinterland
        as full and final settlement under this agreement.
|   
|    | In South Africa, mineral claim areas are defined by farm boundaries and
      consequently, are commonly referred to as "farms".                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           
|   
|    | On May 23, 2000, the Company added to its mineral
        rights in the region by acquiring through Plateau the option to purchase
        a 100% interest in portion 2 of the Elandsfontein 766LR farm located contiguous
        to the pre-existing Platreef properties, pursuant to an agreement with
        MSA Projects (Proprietary) Limited (the "Heads of Agreement"). The option
        requires staged issuances of up to 500,000 common shares of the Company
        (of which 412,500 shares have been issued to July 31, 2004 and no further
        issuances are expected) and aggregate cash payments of US$350,000
        (of which US$48,000 and Cdn$15,000 have been paid).                                                                        
|   
|    | In July 2001, Plateau acquired the right to purchase
        a 100 percent interest in the farm Hamburg 737LR (2,126 hectares) and
        Portion 1 of the farm Elandsfontein 766LR (428 hectares), located contiguous
        to the north end of the then-existing Platreef properties. Consideration
        for the exploration rights to these properties, which are in effect for
        a five year term, consists of payments of US$2.00 per hectare in year
        one escalating in stages to US$4.50 per hectare in year five. To purchase
        the farms outright, a payment of US$325 per hectare is required if
        the option is                                                                                                                  

---

|ANOORAQ
      RESOURCES CORPORATION
      Notes to Consolidated Financial Statements 
      For the twelve months ended October 31, 2004 
      (Unaudited – Expressed in Canadian Dollars)
|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | exercised in year one, US$390 per hectare in year
        two, US$455 per hectare in year three, US$520 per hectare in year
        four and US$600 per hectare in year five.
      On August 28, 2001, the Company completed an agreement
        to purchase from Pinnacle the remaining outstanding common shares of Plateau
        that it did not own in consideration for the issuance of 7.5 million of
        its common shares at an aggregate cost of $4.2 million. In connection
        with this acquisition, the original loan facility and share purchase agreement
        between Anooraq and Pinnacle was purchased for consideration of 4,500,000
        Anooraq warrants, which were exercised in their entirety in July 2003.
      In April 2002, the Company entered into a prospecting
        contract and option agreement with the South African Department of Mines
        and Energy for farm Noord Holland 775LR (1,229 hectares) bringing the
        aggregate land package of its Platreef Property to approximately 13,400
        hectares.
| | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | Rietfontein
        On October 10, 2001, the Company completed an agreement with African
          Minerals Ltd. ("AML"), a private affiliate of Ivanhoe Capital Corporation,
          whereby AML has the right to earn a 50% joint venture interest in the
          Company's 2,900 hectare Rietfontein 2KS farm ("Rietfontein"). Under
          the terms of this agreement, AML must incur at least $750,000 in
          expenditures pursuant to exploration activities undertaken on Rietfontein
          in accordance with an approved program in each of the ensuing two years
          (of which the year one program has been completed) to obtain the right
          to form a 50/50 joint venture with the Company on Rietfontein. There
          is disagreement over budgets, compilation and analysis of the exploration
          results, and the overall adequacy and completeness of AML's exploration
          activities. The Company and AML are currently in discussions over these
          matters, both outside of and within an ongoing arbitration process,
          pursuant to the terms of the earn-in agreement.
| | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | Rustenburg
      On May 16, 2002, the Company completed an agreement with
        Rustenburg Platinum Mines Limited ("Rustenburg"), a subsidiary of Anglo
        American Platinum Corporation Limited (together "Anglo Platinum"), for
        the right to acquire up to an 80% interest in twelve new PGM properties
        located on the Northern Limb of the Bushveld Complex. Under the agreements
        with Anglo Platinum, the Company has acquired an initial 50% interest
        in the PGM rights to the twelve farms and can maintain this interest by
        making staged exploration expenditure totalling South African Rand ("ZAR")
        25 million within five years. The Company is required to spend ZAR 2.5
        million in year one (which has been completed), ZAR 5 million in each
        of years two (which has been completed), three, and four, and ZAR 7.5
        million in year five.
      When a mineral resource is identified, the Company can
        earn an additional 30% interest by bringing the property into commercial
        production. Rustenburg will retain a 20% interest in the joint venture.
        The agreements also include plans to involve local communities in future
        development of the properties. Any participation by local and regional
        communities will be provided out of Rustenburg's interest and any participation
        in the venture by a Historically Disadvantaged South Africans ("HDSA")
        partner will be provided out of the Company's interest.
| | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

---

|ANOORAQ
      RESOURCES CORPORATION
      Notes to Consolidated Financial Statements 
      For the twelve months ended October 31, 2004 
      (Unaudited – Expressed in Canadian Dollars)
|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | Drenthe-Overysel (“Boikgantsho”)
      On November 26, 2003, the Company announced that it had
        entered into a Joint Venture Agreement with Potgietersrus Platinums Limited
        ("PPRust"), a wholly owned subsidiary of Anglo American Platinum Corporation
        Limited (together "Anglo Platinum"). The Joint Venture was formed to explore
        and develop PGMs, gold and nickel mineralization on the Company's Drenthe
        778LR and Witrivier 777LR farms and a portion of PPRust's adjacent Overysel
        815LR farm. These farms are located on the Northern Limb of the Bushveld
        Complex.
      The objective is to explore and develop a large-scale
        open pit deposit with the potential to utilize nearby milling, smelting
        and refining facilities which could provide substantial cost advantages
        to a new mining project. The Company is contributing its rights to the
        Drenthe 778LR farm on which a large PGM-nickel resource has been outlined
        in the Drenthe deposit, and the Witrivier 777LR farm if the deposit extends
        north on to Witrivier. PPRust is contributing its rights to the northern
        portion of the Overysel 815LR farm which lies south of and contiguous
        to the Drenthe 778LR farm.
      Pursuant to the terms of the Joint Venture Agreement,
        the Company and Anglo Platinum will form an initial 50/50 Joint Venture
        (the "Boikgantsho JV") to explore these farms for a period of up to five
        years. During that period, Anooraq will operate the exploration programs,
        and spend up to ZAR12.35 million (of which the entire amount had been
        spent by April 30, 2004) on behalf of the Boikgantsho JV. Anooraq will
        then have the option to proceed on a year-by-year basis and to take the
        project to a Bankable Feasibility Study ("BFS").
      Once a BFS has been completed, the parties, by agreement,
        may proceed to exploitation subject to relevant regulatory requirements.
        If both partners decide to proceed, then a joint management committee
        will be established to oversee development and operations. At commencement
        of exploitation the joint venture interest allotted to each of Anooraq
        and Anglo Platinum will be determined in proportion to the relative value
        of the metals contained in each contributed property as reflected in the
        BFS. Anooraq or Anglo Platinum, as the case may be, each has the right
        to make a cash payment to the other party or to fund additional capital
        contributions to equalize their respective contributions. During development,
        the Boikgantsho JV will be seeking a Black Economic Empowerment ("BEE")
        partner to participate in the project, with the original Boikgantsho JV
        partners dividing the remaining interest.
      Should the Company choose not to proceed, then Anglo
        Platinum shall have the option of acquiring the Company's interest at
        the aggregate of (i) the net present value of exploiting the Company's
        mineral rights as a stand alone mining operation, by applying an agreed
        discount rate as determined in the BFS, and (ii) all exploration expenditures
        (as defined) incurred by the Company up to the completion of the BFS.
        Should Anglo Platinum decide not to contribute to exploitation, its interest
        will be diluted over time in terms of a formula taking into account expenditure
        on the project by the contributory parties. Anglo Platinum will remain
        entitled to a minimum 12.5% non-contributory interest, adjusted depending
        on the final PGM royalty established under the Mineral and Petroleum Royalty
        Bill, to a maximum of 15%.
| | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

---

|ANOORAQ
      RESOURCES CORPORATION
      Notes to Consolidated Financial Statements 
      For the twelve months ended October 31, 2004 
      (Unaudited – Expressed in Canadian Dollars)
|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | Anglo Platinum has the right to enter into a PGM
        Ore or Concentrate Purchase and Disposal Agreement at the exploitation
        phase, based on standard commercial terms, whereby PGM produced from the
        operation would be treated at Anglo Platinum's facilities.
| | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|(b) | Eastern Limb of the Bushveld Complex, Republic of South Africa                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              
|--- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|   
|    | Ga-Phasha Project                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           
|   
|    | In January 2004, the Company announced it had agreed
        to terms whereby the Company and Pelawan Investments (Proprietary) Limited
        ("Pelawan"), a private South African company, would combine their respective
        PGM assets, comprising the Company's Northern and Western Limb PGM projects
        and Pelawan's 50% participation interest in the Ga-Phasha (previously
        known as Paschaskraal) PGM Project ("Ga-Phasha") on the Eastern Limb of
        the Bushveld Complex in South Africa. The Ga-Phasha property consists
        of four farms – Portion 1 of Paschaskraal 466KS, and the whole of
        farms Klipfontein 465KS, De Kamp 507KS and Avoca 472KS – covering
        an area of approximately 9,700 hectares.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           
|   
|    | The mineral title relating to the Ga-Phasha Project
        is held by Micawber 277 (Proprietary) Limited ("Micawber"), a private
        South African corporation owned 50% by Anglo Platinum and 50% by a BEE
        partner, Pelawan (now the Company, through its wholly owned subsidiary,
        Plateau), pursuant to Anglo Platinum's planned PGM project expansion on
        the Eastern Limb. The Ga- Phasha Project will be a 50/50 joint venture
        between the Company, through Plateau, and Anglo Platinum, through its
        wholly owned subsidiary Rustenburg Platinum Mines Limited, governed by,
        among other things, a shareholders' agreement relating to Micawber entered
        into on September 22, 2004. Consequently, work on the Ga-Phasha Project
        will continue toward the preparation of a bankable feasibility study.                                                                                                                                                                                                                                                                                                                                                                              
|   
|    | Pursuant to the terms of the agreement between the
        Company and Pelawan, the Company acquired Pelawan's 50% shareholding in
        Micawber and the rights to its 50% participation interest in the Ga-Phasha
        Project in return for 91.2 million common shares of the Company (the "Consideration
        Shares") and cash payments totalling approximately ZAR 15.7 million. Of
        the Consideration Shares, approximately 89 million will be held in escrow
        until the earlier of September 29, 2010 or twelve months after the commencement
        of commercial production from the Ga-Phasha Project. Pelawan will at all
        future times be owned 100% by Historically Disadvantaged South Africans
        ("HDSA") and at all future times be required to hold a certain minimum
        number of the Consideration Shares, currently defined as 52%. Also pursuant
        to the agreement with Pelawan, the Company's Board of Directors is to
        be comprised of nine persons – three from each of the boards of
        Anooraq and Pelawan, and three independents. The independent board members
        are chosen in the following manner: one by Anooraq, one by Pelawan and
        one jointly.
|   
|    | In June 2004, Pelawan received approval from the
        Exchange Control department of the South African Reserve Bank (“SARB”)
        to complete the transaction. The approval from the SARB permitted Anooraq
        to become a BEE company. The transaction was completed on September 29,
        2004.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             

---

|ANOORAQ
      RESOURCES CORPORATION
      Notes to Consolidated Financial Statements 
      For the twelve months ended October 31, 2004 
      (Unaudited – Expressed in Canadian Dollars)
|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | This transaction has been accounted for as an acquisition
        by Anooraq of Micawber's 50% interest in its mineral properties. However,
        because neither the fair value of the Anooraq shares issued, or the fair
        value of the mineral property interests acquired could be readily determined,
        the acquisition has been recorded at the net book value of Micawber's
        net assets received plus monetary consideration related transaction costs.
      The acquisition costs were accounted for as follows:
| | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|Cash payments totaling ZAR 15,652,744         | $ | 3,055,416
|--------------------------------------------- | - | ---------
|Financial and legal, advisory, and other fees |   | 1,447,745
|Estimated South African stamp duties          |   | 400,000  
|Book value of Micawber's net assets received  |   | –        
|Future income taxes                           |   | 1,561,000
|Acquisition cost, Ga-Phasha Project           | $ | 6,464,161

| | The Company accounts for its interest in Micawber, which holds the
        Ga-Phasha Project, using the proportionate consolidation method.
      The following is a summary of the Company's proportionate share of Micawber
        included in the consolidated financial statements:
| | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| |                                                |   | October 31, |   |   | October 31,
| | ---------------------------------------------- | - | ----------- | - | - | -----------
| |                                                |   | 2004        |   |   | 2003       
| | Current assets                                 | $ | 165,763     |   | $ | –          
| | Long term assets                               |   | –           |   |   | –          
| | Current liabilities                            |   | 228,996     |   |   | –          
| | Long term liabilities                          |   | –           |   |   | –          
| | Expenses                                       |   | 63,242      |   |   | –          
| | Net income (loss)                              |   | (63,242     | ) |   | –          
| | Cash flows resulting from operating activities |   | (63,242     | ) |   | –          
| | Cash flows resulting from investing activities |   | –           |   |   | –          
| | Cash flows resulting from financing activities |   | –           |   |   | –          

|c) | Western Limb of the Bushveld Complex, Republic of South Africa                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          
|-- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|  
|   | Thusong Joint Venture                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   
|  
|   | On May 3, 2004, the Company announced that it had
        entered into a joint venture agreement with Rustenburg, a wholly owned
        subsidiary of Anglo Platinum (together "Anglo Platinum"). The new joint
        venture was formed to explore and develop platinum group metals, gold
        and nickel mineralization on the Wachteenbietjieslaagte 4JQ, Vogelstruiskraal
        400KQ and Cyferkuil 1JQ farms, which are located on the western limb of
        the Bushveld Complex, approximately 75 kilometres north of Rustenburg,
        South Africa, adjacent to Anglo Platinum’s Union operations.

---

|ANOORAQ
      RESOURCES CORPORATION
      Notes to Consolidated Financial Statements 
      For the twelve months ended October 31, 2004 
      (Unaudited – Expressed in Canadian Dollars)
|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | Pursuant to the terms of the joint venture agreement,
        the Company and Anglo Platinum will form an initial 50/50 joint venture
        (the "Thusong JV") to explore the three farms for a period of up to five
        years. During that period, the Company will operate exploration programs,
        and spend up to ZAR 12 million on behalf of the Thusong JV. The Company
        will have the option to proceed to take the project to a bankable feasibility
        study ("BFS"). Once the BFS has been completed, the parties, by agreement,
        may jointly or separately proceed to exploitation. During development,
        the Thusong JV will be seeking a BEE partner to participate in the project.
        If both partners decide to proceed, then a joint management committee
        will be established to oversee development and operations. Should Anglo
        Platinum decide not to contribute to exploitation, its interest will be
        diluted over time in terms of a formula taking into account expenditure
        on the project by the contributing parties. Anglo Platinum will remain
        entitled to a minimum 17.5% non-contributory interest, adjusted depending
        on the final PGM royalty established under the South African Mineral and
        Petroleum Royalty Bill to a maximum of 20%. Should the Company decide
        not to proceed, Anglo Platinum has the right to buy out the Company’s
        interest at the pro-rata net present value of exploiting the farms as
        determined in the Bankable Feasibility Study.
| | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|7.  | Share capital                                                                                                                                                              
|--- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|    |                                                                                                                                                                            
|(a) | Authorized share capital                                                                                                                                                   
|   
|    | On May 21, 2004, shareholders of the Company approved
        an increase in the authorized share capital from 200,000,000 to an unlimited
        number of common shares.
|   
|(b) | Issued share capital                                                                                                                                                       

| |                                                              |       | Number of   |  |   | Dollar    
| | ------------------------------------------------------------ | ----- | ----------- |  | - | ----------
| | Common shares issued and outstanding                         | Price | Shares      |  |   | Amount    
| | Balance, October 31, 2002                                    |       | 32,148,463  |  | $ | 20,048,474
| | Issued during fiscal 2003:                                   |       |             |  |   |           
| | Shares issued for property
      option                      | $0.75 | 270,833     |  |   | 203,125   
| | Share purchase options exercised                             | $0.60 | 1,206,000   |  |   | 720,090   
| | Warrants exercised                                           | $0.72 | 5,138,876   |  |   | 3,435,560 
| | Private placement, May
      2003, net of costs (note 7(g))  | $0.52 | 1,400,000   |  |   | 679,614   
| | Balance, October 31, 2003                                    |       | 40,164,172  |  |   | 25,086,863
| | Issued during fiscal 2004:                                   |       |             |  |   |           
| | Shares issued for property
      option (note 6(a))          | $0.85 | 400,000     |  |   | 340,000   
| | Share purchase options exercised                             | $0.79 | 2,909,300   |  |   | 2,310,590 
| | Warrants exercised                                           | $0.85 | 3,313,125   |  |   | 2,822,529 
| | Private placement, Dec 2003, net of costs (note
      7(h))  | $2.10 | 9,523,810   |  |   | 18,635,143
| | Shares
      issued to acquire Ga-Phasha Project (note 6(b)) |       | 91,200,000  |  |   | –         
| | Balance, October 31, 2004                                    |       | 147,510,407 |  | $ | 49,195,125

|(c) | Share Option Plan                                                                                                                                                                      
|--- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|   
|    | Under the terms of the shareholder-approved Share Option Plan, as at
      October 31, 2004, 3,120,000 share purchase options were outstanding of which
      3,027,500 had vested with

---

|ANOORAQ
      RESOURCES CORPORATION
      Notes to Consolidated Financial Statements 
      For the twelve months ended October 31, 2004 
      (Unaudited – Expressed in Canadian Dollars)
|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | optionees, and 3,543,200 were available to grant.
        These options were exercisable at prices ranging from $0.48 to $2.00
        per share, as follows:
| | -------------------------------------------------------------------------------------------------------------------------------------------------------------

|                   | Option | Number of
|------------------ | ------ | ---------
|Expiry date        | price  | options  
|December 20, 2004  | $0.48  | 510,000  
|July 29, 2005      | $0.60  | 50,000   
|September 8, 2005  | $0.85  | 100,000  
|September 30, 2005 | $0.85  | 50,000   
|October  21,  2005 | $2.00  | 1,585,000
|October  26,  2006 | $1.95  | 590,000  
|October  26,  2006 | $2.00  | 35,000   
|October  26,  2006 | $1.64  | 200,000  
|                   |        | 3,120,000

| | The exercise prices of all share purchase options
        granted during the period were equal to the market price at the grant
        date. Using an option pricing model with the assumptions noted below,
        the estimated fair value of all options granted during the period has
        been reflected in the statement of operations as follows:
| | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| |                                                    |   | Twelve months ended |  |   | Year ended
| | -------------------------------------------------- | - | ------------------- |  | - | ----------
| |                                                    |   | October 31          |  |   | October 31
| |                                                    |   | 2004                |  |   | 2003      
| | Stock-based compensation – Exploration             | $ | 1,030,843           |  | $ | 8,875     
| | Stock-based compensation – Operations              |   | 1,423,093           |  |   | 477,087   
| |                                                    |   |                     |  |   |           
| | Credited to contributed surplus                    |   | 2,453,936           |  |   | 485,962   
| | Contributed surplus, beginning of the
      period |   | 485,962             |  |   | –         
| | Contributed
      surplus, end of period           | $ | 2,939,898           |  | $ | 485,962   

| | The assumptions used to estimate the fair value of options granted during
      the period were:
| | ------------------------------------------------------------------------------------------------

| |                         | 2004      |  | 2003    | 
| | ----------------------- | --------- |  | ------- | 
| | Risk free interest rate | 3%        |  | 3%      | 
| | Expected life           | 2.4 years |  | 2 years | 
| | Volatility              | 84%       |  | 40%     | 
| | Expected dividends      | nil       |  | nil     | 

---

|ANOORAQ
      RESOURCES CORPORATION
      Notes to Consolidated Financial Statements 
      For the twelve months ended October 31, 2004 
      (Unaudited – Expressed in Canadian Dollars)
|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| |                            |          |            |   | Contractual   
| | -------------------------- | -------- | ---------- | - | --------------
| |                            | Weighted |            |   | weighted      
| |                            | average  |            |   | average       
| | Option continuity schedule | exercise | Number of  |   | remaining life
| |                            | price    | options    |   | (years)       
| | Balance, October 31, 2002  | $0.75    | 3,756,500  |   | 1.59          
| | Granted                    | 1.35     | 2,852,000  |   |               
| | Exercised                  | 0.60     | (1,206,000 | ) |               
| | Expired                    | 0.56     | (88,500    | ) |               
| | Cancelled                  | 0.68     | (114,000   | ) |               
| | Balance, October 31, 2003  | 1.12     | 5,200,000  |   | 1.36          
| | Granted                    | 1.89     | 897,500    |   |               
| | Exercised                  | 0.79     | (2,909,300 | ) |               
| | Cancelled                  | 0.97     | (68,200    | ) |               
| | Balance, October 31, 2004  | $1.64    | 3,120,000  |   | 1.35          

|(d) | Share purchase warrants                                 
|--- | --------------------------------------------------------
|   
|    | The continuity of share purchase warrants is as follows:

| | Note Reference            | 6(a        | ) | 7(e          | ) | 7(f          | ) | 7(h       | ) |            |  
| | ------------------------- | ---------- | - | ------------ | - | ------------ | - | --------- | - | ---------- | -
| | Expiry date               | August 28, |   | December 21, |   | December 27, |   | June 1,   |   |            |  
| |                           | 2003       |   | 2003         |   | 2003         |   | 2005      |   |            |  
| | Exercise price            | $0.70      |   | $0.85        |   | $0.88        |   | $2.50     |   | TOTAL      |  
| | Balance, October 31, 2002 | 4,500,000  |   | 3,692,718    |   | 259,283      |   | –         |   | 8,452,001  |  
| | Exercised                 | (4,500,000 | ) | (592,000     | ) | (46,876      | ) | –         |   | (5,138,876 | )
| | Balance, October 31, 2003 | –          |   | 3,100,718    |   | 212,407      |   | –         |   | 3,313,125  |  
| | Issued                    | –          |   | –            |   | –            |   | 5,333,334 |   | 5,333,334  |  
| | Exercised                 | –          |   | (3,100,718   | ) | (212,407     | ) | –         |   | (3.313,125 | )
| | Balance, October 31, 2004 | –          |   | –            |   | –            |   | 5,333,334 |   | 5,333,334  |  

|(e) | Share purchase warrants                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      
|--- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|   
|    | On December 10, 2002, the Company extended the expiry
        date of 3,692,718 warrants for an additional year to December 21, 2003,
        with the exercise price unchanged at $0.85.                                                                                                                                                                                                                                                                                                                    
|   
|(f) | Private Placement, August 2002                                                                                                                                                                                                                                                                                                                                                                                                                                                                               
|   
|    | On August 27, 2002, the Company completed a $207,426
        private placement financing of 259,283 units at a price of $0.80 per
        unit. Each unit was comprised of one common share and a one common share
        purchase warrant exercisable at $0.88 per common share until December
        27, 2003. The warrants are subject to an accelerated expiry of 45 days
        if the Company's shares trade on the TSX Venture Exchange for ten consecutive
        trading days at or above $1.32.
|   

---

|ANOORAQ
      RESOURCES CORPORATION
      Notes to Consolidated Financial Statements 
      For the twelve months ended October 31, 2004 
      (Unaudited – Expressed in Canadian Dollars)
|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|(g) | Private Placement, May 2003                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    
|--- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                
|    | On May 27, 2003, the Company completed a private
      placement financing consisting of 1,400,000  common shares at a price
      of $0.52 per share.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         
|   
|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                
|(h) | Private Placement, December 2003                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               
|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                
|    | During December 2003, the
        Company completed a $20,000,000 private placement financing of 
        9,523,810 units at a price of $2.10 per unit. Each unit was comprised
        of one common share and a  one-half common share purchase warrant
        exercisable at $2.50 per common share until June 1,  2005. The
        agents received 571,429 share purchase warrants each exercisable into
        one common  share at $2.50 per common share until June 1, 2005.
        The warrants are subject to a 30-day  accelerated expiry at the Company's
        option if the closing price of the Company's shares as quoted  on
        the TSX Venture Exchange for ten consecutive trading days is at least
        $5.00.
|   
|   
|   
|   
|   
|   
|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                
|8.  | Related party transactions                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     

| |                                                   | Note      | Twelve months ended October
      31 |            
| | ------------------------------------------------- | --------- | ------------------------------------ | -----------
| | Services rendered by                              | Reference |                                      | 2004       
| | Hunter Dickinson Inc.                             | (a)       | $                                    | 1,223,632  
| | Hunter Dickinson Group Inc.                       | (b)       |                                      | 14,160     
| | CEC Engineering Ltd.                              | (d)       |                                      | 100,492    
| |                                                   |           |                                      |            
| |                                                   |           |                                      | October 31,
| | Related party balances receivable
      (payable) |           |                                      | 2004       
| | Hunter Dickinson Inc.                             | (c)       | $                                    | 344,855    
| | Tecnicos HD de Mexico SA de CV                    | (a)       |                                      | (58,933    
| | Servicios HD de Mexico SA de
      CV             | (a)       |                                      | 97,649     
| | Mainland Exploration Limited Partnership          | (e)       |                                      | –          

| | (a) | Hunter Dickinson Inc. ("HDI") and its wholly owned
        subsidiaries, including Tecnicos HD de Mexico SA de CV and Servicios HD
        de Mexico SA de CV, are private companies with certain directors in common
        that provide geological, corporate development, administrative and management
        services to, and incur third party costs on behalf of, the Company on
        a full cost recovery basis pursuant to an agreement dated December 31,
        1996.
| | --- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|
| | (b) | Hunter Dickinson Group Inc. ("HDGI") is a private
        company with certain directors in common that provides consulting services
        to, and incurs costs on behalf of, the Company, at market rates.                                                                                                                                                                                                                                                                         
|
| | (c) | The balances receivable from (payable to) HDI have
        resulted from advances against future work, services, or cost reimbursements,
        or from HDI providing periodic short-term working capital advances to
        the Company. These balances are included within amounts receivable (note
        4) or accounts payable and accrued liabilities on the consolidated balance
        sheets.                                                                            
|

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|ANOORAQ
      RESOURCES CORPORATION
      Notes to Consolidated Financial Statements 
      For the twelve months ended October 31, 2004 
      (Unaudited – Expressed in Canadian Dollars)
|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (d) | During the twelve month period ended October 31,
        2004 the Company paid or accrued $100,492 (year ended October 31,
        2003 – $166,969) to CEC Engineering Ltd, a private company owned
        by a director, for engineering and project management services at market
        rates.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       
| | --- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|
| | (e) | Mainland Exploration Limited Partnership (“Mainland”)
        is a limited partnership that invests in exploration properties and had
        provided certain services to the Company. Certain directors of the Company
        were also directors of Mainland’s general partner. To October 31,
        2000, the Company had advanced $201,000 to Mainland. During the year
        ended October 31, 2003, the Company determined that this amount receivable
        (plus interest) from Mainland was likely uncollectible and accordingly,
        the amount receivable was expensed during the year ended October 31, 2003.
        Subsequently, during the twelve months ended October 31, 2004, the Company
        received $256,000 as full and final settlement of this amount receivable.

|9. | Income taxes                                                                                                                                                                                                                                                                                                       
|-- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|   |                                                                                                                                                                                                                                                                                                                    
|   | As at October 31, 2003, the Canadian parent company had the following
      estimated amounts available to reduce future taxable income, the future
      tax benefits of which have not been reflected in the accounts, as it cannot
      be considered more likely than not that these amounts will be utilized.

|                               |   | October 31,
|------------------------------ | - | -----------
|                               |   | 2003       
|Non capital losses             | $ | 4,949,000  
|Capital losses carried forward |   | 931,000    
|Total losses available         | $ | 5,880,000  

| | As a result of the transaction referred to in note
        6(b), for Canadian income tax purposes a change in control has been deemed
        to occur, and consequently the capital losses have expired. Further, a
        future income tax liability of $1,561,000 arising from the transaction
        has been recorded.
| | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

---

|ANOORAQ
      RESOURCES CORPORATION
      Notes to Consolidated Financial Statements 
      For the twelve months ended October 31, 2004 
      (Unaudited – Expressed in Canadian Dollars)
|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|10. | Segmented information     |   |            |   |   |          |   |   |              |   |   |             |  
|--- | ------------------------- | - | ---------- | - | - | -------- | - | - | ------------ | - | - | ----------- | -
|    |                           |   |            |   |   |          |   |   |              |   |   |             |  
|    | As at and for the three   |   |            |   |   |          |   |   |              |   |   |             |  
|    | months ended              |   |            |   |   |          |   |   |              |   |   |             |  
|    | October 31, 2004          |   | Canada     |   |   | Mexico   |   |   | South Africa |   |   | Total       |  
|    | Exploration expenditures  | $ | –          |   | $ | –        |   | $ | 2,063,303    |   | $ | 2,063,303   |  
|    | Loss for the period       |   | (52,692    | ) |   | (1,102   | ) |   | (2,886,571   | ) |   | (2,940,365  | )
|    | Interest and other income |   | 80,788     |   |   | –        |   |   | (124,956     | ) |   | (44,168     | )
|    | Total assets              |   | 16,278,466 |   |   | 44,156   |   |   | 12,403,627   |   |   | 28,726,249  |  
|    | Equipment                 |   | –          |   |   | –        |   |   | 172,427      |   |   | 172,427     |  
|    |                           |   |            |   |   |          |   |   |              |   |   |             |  
|    |                           |   |            |   |   |          |   |   |              |   |   |             |  
|    | For the twelve months     |   |            |   |   |          |   |   |              |   |   |             |  
|    | ended October 31, 2004    |   | Canada     |   |   | Mexico   |   |   | South Africa |   |   | Total       |  
|    | Exploration expenditures  | $ | –          |   | $ | –        |   | $ | 6,590,609    |   | $ | 6,590,609   |  
|    | Loss for the year         |   | (3,467,263 | ) |   | (4,318   | ) |   | (7,606,793   | ) |   | (11,078,374 | )
|    | Interest and other income |   | 375,769    |   |   | –        |   |   | 14,119       |   |   | 389,888     |  
|    |                           |   |            |   |   |          |   |   |              |   |   |             |  
|    | For the twelve months     |   |            |   |   |          |   |   |              |   |   |             |  
|    | ended October 31, 2003    |   | Canada     |   |   | Mexico   |   |   | South Africa |   |   | Total       |  
|    | Exploration expenditures  | $ | –          |   | $ | –        |   | $ | 1,963,784    |   | $ | 1,963,784   |  
|    | Loss for the period       |   | (1,672,726 | ) |   | (128,681 | ) |   | (2,028,007   | ) |   | (3,829,414  | )
|    | Interest and other income |   | 43,978     |   |   | –        |   |   | 2,082        |   |   | 46,060      |  
|    | Total assets              |   | 5,387,584  |   |   | 41,911   |   |   | 4,427,211    |   |   | 9,856,706   |  
|    | Equipment                 |   | –          |   |   | –        |   |   | 16,990       |   |   | 16,990      |  

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